Web 3- A new Paradigm for the Internet

Web 3- A new paradigm for the Internet

The last two decades have proven that building a scalable system that decentralizes content is a challenge. While the technology to build such systems exists, no content platform achieves decentralization at scale

There is one notable exception: Bitcoin. Bitcoin was conceptualized in a 2008?whitepaper?by?Satoshi Nakamoto?as a type of distributed ledger known as a blockchain designed so that a peer-to-peer (P2P) network could transact in a public, consistent, and tamper-proof manner.

That’s a lot said in one sentence. Let’s break it down by term:

Bitcoin — which currently has?over 40,000 nodes?in its network and processes?over $30B in transactions?each day — demonstrates that an application can be run in a distributed manner at scale, without compromising security. It inspired the development of other blockchain projects such as Ethereum which, in addition to transactions, allows participants to deploy code that can verifiably run on each of its nodes.

Today, these programmable blockchains are seen as?ideal open and trustless platforms?to serve as the infrastructure of a distributed Internet. They are home to a rich and growing ecosystem of?nearly 7,000 decentralized applications?(“Daps”) that do not rely on any single entity to be available. This provides them with greater flexibility on how to best serve their users in all jurisdictions.

The web is for the end user

Distributed systems are inherently different from centralized systems. They should not be thought about in the same way. Distributed systems enable the data and its processing to not be held by a single party. This is useful for companies to provide resilience, but it’s also useful for P2P-based networks where data can stay in the hands of the participants.

For instance, if you were to host a blog the old-fashioned way, you would put up a server, expose it to the Internet. Nowadays, your blog would be hosted on a platform like WordPress, Ghost, Notion, or even Twitter. If these companies were to have an outage, this affects a lot more people. In a distributed fashion, via IPFS for instance, your blog content can be hosted and served from multiple locations operated by different entities.

Each participant in the network can choose what they host/provide and can be home to different content. Similar to your home network, you are in control of what you share, and you don’t share everything.

This is a core tenet of decentralized identity. The same cryptographic principles underpinning cryptocurrencies like Bitcoin and Ethereum are being leveraged by applications to provide secure, cross-platform identity services. This is fundamentally different from other authentication systems such as OAuth 2.0, where a trusted party has to be reached to assess one's identity. This materializes in the form of “Login with <Big Cloud provider>” buttons. These cloud providers are the only ones with enough data, resources, and technical expertise.

In a decentralised web, each participant holds a secret key. They can then use it to identify each other. You can learn about this cryptographic system in a?previous blog. In a Web3 setting where web participants own their data, they can selectively share these data with applications they interact with. Participants can also leverage this system to prove interactions they had with one another. For example, if a college issues you a?Decentralized Identifier?(DID), you can later prove you have been registered at this college without reaching out to the college again. Decentralized Identities can also serve as a placeholder for a public profile, where participants agree to use a blockchain as a source of trust. This is what projects such as ENS or Unlock aim to provide: a way to verify your identity online based on your control over a public key.

This trend of proving ownership via a shared source of trust is key to the NFT craze. We have?discussed NFTs?before on this blog. Blockchain-based NFTs are a medium of conveying ownership. Blockchain enables this information to be publicly verified and updated. If the blockchain states a public key I control is the owner of an NFT, I can refer to it on other platforms to prove ownership of it. For instance, if my profile picture on social media is a cat, I can prove the said cat is associated with my public key. What this means depends on what I want to prove, especially with the proliferation of NFT contracts. If you want to understand how an NFT contract works, you can?build your own.

Where do we go next?

The journey to a different web is long but exciting. The infrastructure built over the last two decades is truly stunning. The Internet and the web are now part of 4.6 billion people's lives. At the same time, the top 35 websites had?more visits?than all others (circa 2014). Users have less control over their data and are even more reliant on a few players.

The early Web was static. Then Web 2.0 came to provide interactiveness and service we use daily at the cost of centralisation. Web3 is a trend that tries to challenge this. With distributed networks built on open protocols, users of the web are empowered to participate.

At Cloudflare, theya are embracing this distributed future. Applying the knowledge and experience we have gained from running one of the largest edge networks, we are making it easier for users and businesses to benefit from Web3. This includes operating a?distributed web product suite, contributing to?open standards, and?moving privacy forward.

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