What is decentralized Internet Web 3.0, and what can it do?

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What is decentralized Internet Web 3.0, and what can it do?

In the modern Internet, corporations rule, all user data and ideas are under their control. The Web 3.0 concept will probably return the rights to the legitimate authors and build a new economy.

The authors will get the right to their content.

Let’s take as an example the process of trading your assets using a robotic crypto trading system, in the decentralized Internet of the future it will be possible to make transactions without intermediaries, who usually dictate their own rules and charge for transactions. In the future , the economy should look like this:

  • Each user is a wallet.
  • Each of his files is an asset recorded on a wallet.
  • Each transaction is a transfer made from one wallet to another.

Only its owner could make any changes to the site. On the Web 2.0 Internet, you can create something of your own – the same publications on Twitter. But everything the user does on the site belongs to the platform itself: both the posts that are stored in her database, and the actions on the basis of which she then sells advertising.

If Twitter worked on the blockchain, all publications would belong to the author himself — that is, they would be the same assets in the wallet. Gilles Deasy described the possible mechanics:

Let’s say that a user joins a social network by linking his crypto wallet to his account.

After each publication he makes, the algorithm creates a file and places it in a decentralized system like IPFS.

At the same time, the algorithm “mints” a unique NFT token linked to this file, places it on the Twitter blockchain and sends it to the user’s wallet.

So the user becomes the rightful owner of the publication and can sell it for an interchangeable currency — for example, “ether”, having received a monetary equivalent from a non-interchangeable object.

Blockchain, thanks to smart contract technology, will automatically check whether both “wallets” have fulfilled the terms of the transaction, and only then will complete the transaction. For example, if a user promised another user, sent his NFT, then he is awarded the agreed reward.

A decentralized network is a transparent system where everyone can see who has how many assets in a wallet, so wallet addresses consist of numbers and letters.

Economy without intermediaries.

DeFi is a form of cryptocurrency Wall Street that is decentralized. Such services allow you to change and invest in currency, borrow and borrow, even take out loans. Only bankers are no longer needed to make transactions, which will significantly reduce costs.

According to experts, as of October 2021, there are about $200 billion in DeFi protocols.

Decentralized organizations.

Any company can be represented as a network of interested parties. Each participates in the process based on certain conditions:

  • If the employee has completed the work, he has received a salary.
  • If the customer received the service, the company received the payment.
  • If the borrower meets the requirements of the bank, he receives a loan.
  • If an investor sponsors a company, it means that he receives one or another benefit from it.

All these conditions can be prescribed in the form of smart contracts in the blockchain, excluding intermediary managers. And by organizing a decentralized autonomous organization (DAO), you can also distribute management rights among participants in the form of native tokens. Their number will determine which decisions a person can influence and which ones cannot.

The theory of the new Internet also has those who believe that new technologies are far from perfect, very expensive, since, for example, miners need powerful and expensive computers to create new blocks in the blockchain. They also fear that there is no exact guarantee of the security and safety of data. The Web3 benchmark is based solely on monetary relations, which means that the Internet will turn into one big marketplace in the future.

However, the upcoming wave of Web 3.0 goes far beyond money and cryptocurrencies, supporters say. The new Internet, on the contrary, promises to build a “global village” — a world focused on people and interpersonal interaction, which will contribute to both the development of technology and business, and the promotion of private initiatives.

Also, other generations also thought so when they built the first and second versions of the Internet, and Google eventually monopolized the first, and services like Facebook and YouTube absorbed the second. Only time will tell whether Web 3.0 will be able to avoid such a fate, since all experiments in the market will depend on investments, Quartz concludes.

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