How Does the Web 3.0 Work in 2023?

Coined by Gavin Wood in 2014, Web 3.0 rises as the new iteration of the World Wide Web. Almost ten years later, what is the status of the internet's third wave?

Web 3, or Web 3.0, has a disruptive, meaningful impact on the Web. Decentralization, utility, and openness to new worlds make Web 3.0 the latest stage of the internet. In 2023, Web 3.0 features will give much to talk about. This section will go over the latest innovations that Web 3.0 brings. We'll highlight trends, predictions, statistics, and more! Are you ready?

What is Web 3.0?

Web 3.0 is the "Web of Reading, Writing, and Own." The concept includes open-source software, zero-trust models, and free interactions between users and devices. Contrary to prior stages, Web 3.0 will cut the need for centralized authorities in command. Another vital element of this stage is blockchain technology, which allows optimal, decentralized communication and transactions. Following this path, security is an essential piece of this era. Thanks to smart contracts, data has both encryption and protection systems. With this paradigm, data storage and management occur in chains of blocks controlled by decentralized networks. Web 3.0 has four fundamental pillars: Decentralization, Blockchain, Crypto, and AI.

The evolution of the network has three stages. As you might have guessed, these are Web 1, Web 2, and Web 3. The first one considered the read-only web, contemplating static pages with scarce user interactions. In early 2000, the second version added reading and writing. The age of social media networks rose to enable interaction between users and their respective contents. All these steps led to Web 3. Here, there is no centralized network. The current scenario took advantage of powerful tools like Artificial Intelligence and Machine Learning. Ultimately, the goal of Web 3.0 is to achieve personalized experiences, decentralization, and data interconnection.

What are Web 3.0 Technologies?

Web 3.0 hosts many examples and use cases. Yet, we'll focus on some of the most relevant and those gaining momentum in the tech landscape.

Blockchain

The blockchain executes peer-to-peer transactions without any central authority. Within the Web 3.0 concept, the chain of blocks eradicates the so-called "costs of trust." At the same time, it channels a higher ROI of return on investment. Likewise, its chains can break if there is any tampering within the blockchain. If so, databases can come into contact with the entire internet. All these scenarios relate to the security increment Web 3.0 brings with it. Some examples of blockchain-based platforms are Binance, Coinbase, Solana, etc.

Currencies

Cryptocurrency encloses all encrypted digital currencies in protected transactions. Just like with Blockchain, there is no need for centralized entities to allow cryptographic operations and digital wallets. Moreover, its exchange process occurs in the cryptocurrency markets. At this point, we should also discuss NFTs. Non-Fungible Tokens are digital assets that allow users to purchase different media elements, like music, video, games, and more. The reason for bringing NFTs into this topic is that these get traded with cryptocurrencies in digital spaces like Opensea. Further, most people relate their value to long-term investment purposes.

Space and Semantics

Rather than relying on keywords, the semantic web creates and shares material through search and analysis. Most profoundly, it focuses on the meaning of individual words. Likewise, the space web incorporates Convergence Technologies into devices. This tech adds Machine Learning and Augmented and Virtual Reality into its operation. Examples include 3D mapping and AR Cloud.

What are Web 3.0 challenges for 2023?

Like its predecessors, Web 3.0 brings with it new challenges. Among these are:

Decentralization

Web 3.0 protocols seek decentralization, relying on centralized entities to iterate their functions. For example, Metamask's wallet works from a browser extension. Yet, these structures can create security challenges. While it's a work in progress, achieving true decentralization may have some challenges.

Scalability

Decentralization in Web 3.0 requires a network of nodes to confirm transactions and certify security. Even so, the applied methodologies can affect scalability in centralized networks. Vitalik Buterin, co-founder of Ethereum, explains the scalability dilemma, claiming that, as for now, no blockchain can balance security, decentralization, and scalability.

Interoperability

Data transfer and communication between blockchains define the need for interoperability. Yet, achieving high-quality data transfers and validation is quite a challenge. Companies like Still, Polkadot, Cosmos, and Injective are working on improving interoperability. To accomplish so, they're relying on both API integrations and Network Analysis Methods.

Accessibility

Accessibility is essential, but Web 3.0 projects continue to have problems with it. These problems stem from the need to balance safety and comfort. Even if you bet on ease of use, accessibility is vital to endorse security. Thus, o solve accessibility problems, it is required to start by solving security problems. This challenge comes with some problems and limitations like speed and pricing. For instance, storing 1GB of data on Ethereum can cost thousands of dollars! Not to mention the volatility of cryptocurrencies and, consequently, of NFTs and other related tradeable assets.?

What are the Trends for Web 3.0 in 2023?

There is a myriad of scenarios for Web 3.0 trends for this year. Let's review some of them!

Sustainability

While the blockchain is one of the cores of Web 3.0, it has faced much trouble. Issues include energy consumption, safety, and sustainability itself. Hence, one of Web 3.0's focuses is reconciling best practices in 2023 to promote a sustainable future.

Regulations

The arrival of Web 3.0 could open the door for governments to join, intervene, and regulate it. As you might know, that will mean it'll lose its decentralization component. While it's only a prediction, there can be some battles in the near future regarding the overall control of Web 3.0, which could also mean several downsides to its data privacy.

3.0-Everything

According to some predictions, known social media platforms will lose popularity. With decentralized social networks, users could have more control over their data. Further, these structures will allow greater exposure and monetization opportunities. While the most known way to do so would be via NFTs, platforms like Zelay and Project Liberty are already doing so. The latter works with Decentralized Social Networking Protocols (DSNP).?

The third wave of the Web also has a myriad of marketing applications. Its structures would enhance business strategies with cloud-based technology and BaaS services. Hence, companies and users would benefit from these tools' flexibility and safety features. This procedure opens eCommerce, gaming, online guides, and more doors. To support this hypothesis, several studies estimate that, by 2026, 2B people will interact with Web 3.0 spaces, like the Metaverse, for at least one hour per day.?

If that doesn't bring a new battery on disruptive innovation, we don't know what will!?

Conclusion

Different trends show that Web 3.0 is still in its early stages. Its development goes alongside new techs, like blockchain, cryptocurrencies, and the Metaverse. Nonetheless, it must reconcile these advancements with security, accessibility, and sustainability. Can Web 3.0 be the final formula to merge both roads?

Written by?Estefanía Teixeira, Content Writer at?Capicua.