Web3 Doesn’t Exist — It Never Did

I'm not saying that it doesn't exist. It does. But not really.

Concerned about moving your business to ‘Web3'? Don’t be.

Web3 doesn't exist - it never did.

The term 'Web3' is a buzzword used to hype up the next iteration of internet technology. When nearfield communication, tap, was introduced to debit and credit cards this wasn't ‘Banking3.0’, this was the introduction of a technological advancement to the banking industry. Web3 is simply that, the next step forward in the evolution of the internet.

“Both Metaverse and Web3 turned into bullshit words that meant absolutely anything, but the 1% or 2% buried under the bullshit that was interesting a year ago hasn’t actually become any less interesting now…. And if you think that on a five-year view it will be possible to build billion scale consumer apps on Blockchains and that being on a Blockchain will enable important new capabilities - well, that hasn’t changed either.”-Benedict Evans

It is important to recognize that the technologies and concepts behind Web3, such as blockchain, decentralized applications, cryptocurrency, and smart contracts, are real, are not exclusive to Web3, and they will be utilized in other areas of technology. That's why its crucial to understand the actual technologies behind Web3 and not get caught up in the hype.

Simple Evolution

The internet has been evolving since its inception. Web1.0, the static web, where information was presented in a read-only format, was followed by Web2.0. Web2.0 introduced user-generated content, social media, ecommerce, and interactive web applications. And now, the revolution, Web3!

Web3 is often touted as the next big thing, but it is really just the next step forward in internet technology. Web3 is not a wholly new concept, but rather an extension of what has come before it.

Misconceptions and Realities of Web3 Technologies

Influencers, personalities, and speculator ‘crypto bros’ suggests that Web3 technology is a wholly new concept, that will disrupt not only economic models, but social, political, and technological ones. When in reality, Web3 is simply the next step forward in this evolution, building on the existing technologies and concepts of Web2.0.

Think of it like the automatic transmission in cars.

A TRANSPORT REVOLUTION!

No, a technical advancement of an already existing technology. These technologies will dramatically change how the internet functions on even very basic levels, how people share and create value, how you make online purchases, even how you share your personal information (transparency is great for privacy, stick with me I have another article on this coming soon).

"#Web3 is still thinking about utopian purism and decentralized dreams instead of collaborating with centralized?#Innovation?in the name of adoption"-Filippo Chisari

While misconceptions abound, the reality is that these technologies are foundational to the future of the internet. Let's take a look at what some of the misconceptions are.

Blockchain technology is only used for cryptocurrencies.

Blockchain technology is a foundational building block of cryptocurrencies such as Bitcoin and Ethereum, but it is also used for a wide range of applications such as supply chain management, voting systems, and digital identity verification where transparency and accuracy are required. Blockchain's decentralized nature provides a secure and transparent way to store data and conduct transactions.

Cryptocurrency is only used for illegal activities such as money laundering and terrorism financing.

While it has been used for illicit activities in the past, the majority of cryptocurrency transactions are legitimate and conducted by law-abiding citizens. Cryptocurrency provides a fast and secure way to transfer value across borders and has the potential to revolutionize the traditional financial system.

Smart Contracts are self-executing and don’t require human intervention.

Smart contracts are still code and require human input to function properly. Perhaps someday AI will become involved (Are they not already? I will have to check that, and why not, it’s involved in everything else!) Smart contracts automate the execution of contracts and can help reduce transaction costs and increase efficiency.

Decentralized Applications are only used for illegal activities such as drug trafficking and money laundering.

DAPs are used for a variety of legitimate purposes such as decentralized marketplaces and social networks. DAPs provide a way to create applications that are resistant to censorship and can be owned and controlled by their users.

Finally, NFTs.

Or non-fungible tokens, increasingly popular in recent months as a way to buy and sell art, music, and collectibles. There are so many misconceptions surrounding NFTs: that they are only for the wealthy and elite, they sell for millions of dollars, they have no real-world value. While the market for NFTs is relatively new and volatile, there is also a growing demand for unique and verifiable digital assets. NFTs provide a way for creators, not just artist, to monetize assets digitally. Organizations offering membership programs, verified credentials, proof of ownership, proof of purchase, and for people or companies to buy, sell, trade, or lease these assets all have valid use cases for the technology.

Conclusion

As a collective these technologies, labeled as ‘Web3’, are still relatively new, promising to revolutionize the way we interact with the internet. Of course, like any new technologies they have been exploited by bad actors. Even recently there have been scams, hacks, rug pulls, and other nefarious activities that took advantage of the unregulated and decentralized nature of the technology. However context is important, more money is lost to traditional credit card theft than all of web3 fraudulent activities combined. That certainly hasn't stop main stream adoption of credit cards. And it won't stop the mass adoption of blockchain technologies either. While bad actors will always exist and will continue to find new ways to exploit the technology, the stability of the ecosystem means that these incidents are becoming increasingly rare.

Despite these setbacks, the ecosystem will mature and stabilize over time. Developers have created new protocols and tools to make the technology more secure, and regulators are stepping in to provide frameworks for its use. As a result, ‘Web3’ technology has become more accessible and user-friendly, and the number of legitimate use cases has grown.

Similar to artificial intelligence, now that web3 and blockchain have been 'released in the wild' there is no putting them back in the bottle. They aren't going away, they aren't going to die. These technologies WILL be used in the future development of the internet, just as e-commerce and shopping carts were. As web3 continues to evolve and mature, we can expect to see even more innovation and growth in the years to come.

LFG!

Still curious about the technologies in this article or are interested in integrating web3 technology into your business? Nefta provides a frictionless platform with easy to implement APIs and SDKs for any project, web2 or web3. Reach out