There is so much noise around web3, yet no one seems to really understand what it means. Many, in a bid to look smart, throw it around in conversations. Some even put it on their Twitter bios and other social media handles.

For non-techies or those still testing the waters of cryptocurrency, the terminologies can seem overwhelming. While still trying to wrap your head around words like Metaverse, NFT, block chains, and the rest. All of a sudden everyone is talking about Web3.

I must admit that I am also a little confused. My confusion is what has driven me to research and write about the web3 metaverse. Is web3 another word for cryptocurrency?? Is it connected to NFT? Or maybe it's another cool word for referring to the internet.

I'll try to answer these questions and more in the simplest way possible. Non-techies and newbies should come out from reading this article with a clearer view of what web3 really is.

What is Web3?

The internet is often described as a free world, but up until now, a few corporations had a monopoly over how users interact on the net. Every user had to play according to the rules of this giant cooperation.

Web3 is the hammer that aims to break that monopoly. It leverages decentralized servers to give internet users more freedom and privacy. With web3 we no longer have to interact with the middle-men. The middle men being the big tech companies regulating the internet ecosystem.

To fully appreciate the concept of web3, one needs to have an idea of the evolution of the web and how it differs from one another.

Web 1.0

In the first generation of the internet which ran from 1990 to 2004, users could only read content. They were not allowed to interact with each other. Websites were static and mostly owned by big companies.

Sites usually contain information about the company for customer education. Web1 is often described as read only internet since users couldn't produce content.

Web 2.0

The read and write era of the internet started in 2004. With Web2, users could interact with each other, creating their own content. Users could develop their own apps and anyone can create content using these apps.

Web2 brought with it more freedom, but then certain companies began regulating the internet. Issues with privacy have risen in web2.0. User data is sold for advertising purposes without any financial benefit to the user. Interactions on web2.0 are traceable. Users have no control over how their data is stored and who can access it.

Web2 apps are mostly focused on monetization and sometimes users have to pay to access certain features on the app. Even though web2.0 offers users more freedom, it is a centralized form of internet that benefits corporations more.

Web 3.0

Web3.0 aims at eliminating the need for the trust users have for the big tech companies by building a decentralized system. People no longer have to use the internet with hopes that these regulators act right.

Power is being taken from the tech giants and given to the users directly bypassing the middle men. Decentralized blockchain servers will replace centralized servers owned by corporations.

Core Concepts of Web3

The concept of web3 among other things stands on three cores that separates it from web2.0. These are the improvements that web3 brings to the internet scene and is fueling its acceptance.

Web3 is;

• Decentralized

• Trustless

• Permissionless

Decentralized Internet

The biggest distinguishing factor between web3.0 and other generations of the internet is the promise of decentralization. Even though web3.0 is still a work in progress, decentralization has remained its major theme since inception.

Think of it this way, with web2, control is in the hands of a few. The policies of the few affect the many, either negatively or positively. Strategic web infrastructure needed for data storage are owned by this influential few and are regulated to some extent by the government.

With the rise of blockchain technology everyone now has control of their data. The concept of blockchain is hinged on data encryption and distribution.

Encryption means that to access data stored on a blockchain, one needs permission from the data owner. Even the owners of the server do not have access to the data stored on them. This effectively tackles the issues of privacy. The government cannot get their hands on your data.

Distribution being the second core of blockchain implies that every data stored is distributed across many servers. If a server is shut down or data deleted from it, copies of this data exist in other servers where it has been distributed to. As long as you have your encryption keys proving your ownership, you can access your data at any time.

Trustless internet

Web2 is built on trust. Like it or not when using any application on your mobile phone, you trust that the owners of the company will stick by their policies and protect your data.

Take for instance when you onboard an app, you have to provide information about you during registration. Sometimes this information is confidential but to use their product you need to include them in registration.

Users no longer have to rely on third parties in Web3. The use of cryptocurrency addresses will allow you direct control of your identity.

In app purchases in web2 are linked directly to your account on that app. You only have access to them on the app. In a situation where the app is deleted or your account on the app is restricted by the owners, you lose all your purchases. There again comes the need for trust. Trusting that app creators won't impromptu block you out of the app.

Using NFTs (Non Fungible Tokens) users, especially gamers, own their in-app purchases which they can trade on open markets. Ultimately what you purchase with your money is yours to own.

Permissionless Internet

User interactions in web3 do not require permission from a third party. Simply put, there are no rules of engagement in web3. Nobody can censor how you use the internet anymore.

Unlike web2 apps where every user needs to stick to the rules set by the app creator, in Web3 users interact directly without any checks. The decentralized nature of web3 apps will also make it almost impossible to regulate what people do on the internet

Web3; Security and Privacy

The issue of security in internet usage has been a topic of discourse for a very long time. How much restriction is too much or too little restriction? Many have expressed fears that throwing the internet open as web3 intends to do can be dangerous. Leaving it in the hands of users to determine what is permitted online has both its merits and demerits.

While some believe that there should be some form of regulations in web activity, others believe that the internet should be free for all to use as they deem fit. With web3 governments no longer have as much control of the internet as they wield in web2.

In legal issues, the government can request for data from the server owners for prosecution. Countries where free speech is prohibited, social media posts have gotten people arrested and Iin severe cases imprisoned. Certain government have gone ahead to ban the operation of some apps in their country. Take for instance in Nigeria where a ban was place on Twitter in 2020.

The web3 ecosystem insulates the users both from the government and the corporations that own the servers. Users now own and control their data, shutting out companies who previously owned and used data to their advantage. The security infrastructure of block chain servers allows your personal data to be in your full control.

DeFi And DApps

Mobile applications in web2 are fondly referred to as Apps. In web3 the terminology is a bit different. Everything about web3 is centered around decentralization therefore dApp simply is Decentralized Apps. Apps that are trustless and require no permission or third party censorship. Users make and enforce their own rules in their communities.

DeFi translates to mean Decentralized Finance. Basically these are financial services that operate on decentralized applications (DApps). These applications do not need the centralized structure that web2 operates on. They are free, open source, permissionless apps that are built on blockchain servers. DeFi encourages user participation by providing incentives or what they refer to as tokens.

Is Web3 A Crypto?

We already know that web3 applications and its other infrastructures are built on blockchain servers like Ethereum. Ethereum has evolved to become a major force in web3, having a considerable amount of dApps on its server but other blockchains are slowly gaining relevance. With this dependency on crypto structures one might wonder if web3 is a crypto. The answer isn't that straightforward.

DeFi apps give out crypto coins (tokens) to encourage their users to participate. Most transactions on web3 are done in crypto. NFT has also been incorporated into Web3 to allow users have direct ownership of their digital assets in dApps. With NFT, users can also control their identity in the web3 universe. Although web3 can't be directly classified as cryptocurrency, the influence of crypto in Web3 is undeniable.