2023 is just around the corner. Many people still don't know what web3 is and how it can give them an advantage in their projects and companies. I would like to share my knowledge with you after more than a year of working on different web3 projects.
What is Web3?
To understand more easily what web3 is, let's define web3 by defining web1 and web2:
In the web1 (Internet I used in the 90s and all of my childhood), you as a user visited a page and it returned the content of that page, so blogs were the kings of this time.
Web2 (2000s and very fancy clothes) allowed users who visited these pages to modify the content of those pages as much as the page enabled them to. Forums became very popular as editing the content of a page allowed people from all over to connect with other people with similar interests.
In both web1 and web2 the user was limited to what the server/website could offer, as the user had no ownership or control over anything. If users created content within a platform it was the platform that decided what content could be uploaded. The platform also had ownership of that content...this did not sit well with those who believed in the original promise of the internet, so web3 came about naturally.
Web3 is the merger of what we were able to do before, but this time we are the owners and beneficiaries of the content we create. It is currently being defined as a decentralized platform for applications (DApps) with more trust, data security and privacy, ownership of data and content, empowering people to take control of their digital lives.
Web3 is a set of technologies, such as decentralized storage, blockchain and distributed ledger. These technologies allow you to store information securely, as well as to conduct trusted transactions and contracts. It looks to solve the problems of trust, ownership and privacy that had been the bane of web1 and web2.
Why has Web3 arisen?
Web3 arose because the people of the internet felt that the promise of the internet was not fulfilled in web2. This is because there was still centralization and manipulation of content, data, and transactions.
Web3 tries to tackle these issues of control and privacy by decentralizing information and transactions and giving users ownership and control of their data. This is done by enabling applications that are self-executing, trustless and owned by users. In web3, no single entity can control or manipulate data (not even countries), and it is open and permissionless allowing anyone with access to the technology to participate without restrictions.
How can you benefit from Web3?
As a developer, I am always excited about the latest technologies. However, not all of them are as disruptive as Web3, which is by far a game changer for any kind of industry. Let me give you some examples of real companies using web3 technologies to their benefit, from the giants in the market to the smaller ones:
Big banks and financial institutions are using Web3 to increase the efficiency of their operations and reduce the cost of their transactions, enabling things like instant payments, cross-border payments and smart contracts.
Online gaming companies are using web3 to enable players to own and monetize their virtual assets, ensuring their transactions are secure and fair
Supply chain companies are also leveraging Web3 to enable greater transparency and efficiency in their operations, allowing everything to be tracked and monitored.
What makes Web3 a plus?
Let's start with one of my favorite examples: ENS (Ethereum Name Service), which is a decentralized naming protocol. This may not mean anything to you, so let me give you a correlative example: website names. Such as google.com or facebook.com. Every time you write this in your browser you are telling your device: "Please take me to the computer that responds to this name" so the naming company creates a list with the name and address of the computer it corresponds to, so you only have to type google.com instead of 126.96.36.199.
As a result, ENS allows users to own a part of the protocol by using their services, which gives them the ability to modify and improve the company...and this may sound counterintuitive and confusing like: "Why would I give the users of my product/service such access to my business logic?" Well, it turns out that if you let people who love your business take part in it, success will follow - and I can't understand why we didn't do this before. You might think: Who better to improve? And even more so when they receive a transparent economic distribution resulting from the benefits obtained from such improvement?
They had also begun to enhance quality while increasing economic benefits. This is something that doesn't happen with most companies because benefits increase at the expense of quality, resulting in the death of the project in the long run.
Decentralized exchanges (DEX) are another example of web3. With Uniswap I swap tokens and with Aave I save my tokens at a healthy interest rate without ever having to leave my wallet. I can tell you that it is a really unique experience.
There is no doubt that Web3 is here to stay and the more people grasp this technology, the better they are able to build new projects that increase the overall technological level of our industry; the more people who use it and benefit from it; the more people feel empowered by decentralization; and the more people believe it is our responsibility to take control of our digital lives, the better the world will be. Therefore, I urge you to read about Web3, how it works, and how to use it. This will enable us to make the web and every related industry more vibrant and decentralized as we educate more people about it.