09.26 Web 3

The centralized nature of the internet has led to a number of problems like easy for governments to censor content, and restrict access to information, allowing the media outlets to control the flow of information and leading to the spread of misinformation.

The rise of decentralized technologies like blockchain and peer-to-peer networking is giving users more control over their data and giving them the ability to connect with each other directly.

What is Web 3.0?

Web 3.0 is the next stage of the internet’s development, characterized by a move away from centralized platforms and towards decentralization. Individuals will have more control over their data and how it is used. In addition, decentralized systems are more resistant to censorship and other forms of control. Web 3.0 promises to be a more open, democratic internet that better reflects the needs of its users.

The decentralized approach has many advantages, including greater security & privacy, as well as democratic decision-making. The are 2 foundational changes to the internet that Web3 enables: Digital Ownership and interoperability of your digital goods across the internet (Cryptocurrency & Web3 Wallet).

Web 3.0 is often described as the ‘semantic web’, where data is meaningfully interconnected and can be understood by machines. The vision of the web has been taking shape with the rise of linked data standards like schema.org as well as NFTs and blockchain tokens. It ensures that data is interoperable – meaning it can be easily shared & reused across different platforms and applications. NFTs & tokens provide a way to monetize data and incentivize its creation, making it possible to build a decentralized economy around it. Web 3.0 is about making the web smarter, more connected, and more valuable.

Core characteristics of Web 3.0

1. Semantic Web: it relies on RDF & OWL, which define how data should be structured and annotated. It also replies on Knowledge Graphs, which are structured databases of knowledge that can be used by machines to understand the relationships between concepts, and how we interact with the internet.
2. Social Web: Web 2.0 was mostly used for viewing Static pages of text, allowing users to interact in a dynamic way. Web 3.0 makes the social more immersive and interactive by using AI/VR in user-centric creation & sharing of information. Providing a unique experience for users.
3. 3D Interactive Web: from Web 2.0 we saw the introduction of dynamic content, social media, and other collaborative features. With Web 3.0, we are on the verge of a new era of 3-dimensional, VR-based web browsing and communication.

Benefits of Web 3.0

1. Anti-monopoly: With increased privacy, individuals have more control over their data, rather than track and sell it by big companies. Web 3.0 makes it easier for new and small businesses to compete with larger corporations. Web 3.0 helps to prevent monopoly power from being abused, making it harder for any company to control the market, which will lead to more competition and low prices.
2. Compatibility: the goal of Web 3.0 is to create a more decentralized internet that is powered by blockchain tech and peer-to-peer networking (one of the challenges in achieving this goal is compatibility, one way to solve this is by using dApps=decentralized applications built on Web 3.0), compatible with different devices, OS and browsers.
3. Data Control & Ownership: in Web 3.0, the data is stored on a decentralized network of computers, known as the blockchain. The data is not owned by any entity but distributed among many different computers.
4. No Restrictions Access: in Web 3.0 everything will be automatically by computers and other smart devices, negating the necessity for service providers.

Transformation of Business Change with Web 3.0

1. Web 3.0 is built on principles of decentralization, it runs counter to the centralized model of most businesses.
2. It aims to shift from large institutions to Individuals and communities like Airbnb/Uber.
3. It is constantly evolving, the biz worked yesterday may not be relevant tomorrow.

NFT Membership DAOS (Decentralized Autonomous Organizations)

1. NFT=non-fungible tokens are a type of cryptocurrency that represents a unique asset.
2. It can be used to represent Digital Art/Collectibles/Other experiences.
3. NFTs cannot be interchanged or substituted.
4. The above uniqueness makes NFTs well-suited for use as a currency in digital worlds and communities.
5. NFT membership DAOs offer transparency/immutability; transactions are stored on the blockchain, making them public/permanent; they are Tamper-Resistant & cannot be changed or counterfeited.

Why should businesses Embrace Web 3.0?

1. Anti-Monopoly: under 3.0, users have full control over their data & can choose to share it or keep it private. Companies need to compete based on providing quality products and services rather than selling user data. W3 requires a rethinking of biz models since the traditional will no longer be viable.
2. Permissionless Blockchain: in a world where trust is often in short supply, the decentralized nature of blockchain tech comes as a refreshing change. With no central authority controlling the network, there is no risk of any one party manipulating the data for their benefit. Everyone is treated equally in the system. It can quickly and easily transfer digital assets without worrying about the reliability or security of the process.
3. InterOperability: W3’s cross-platform compatibility, it runs on any device or platform. It is no longer to develop separate versions of apps for different operating systems.
4. Data Ownership & Control: instead of consistent privacy scandals, W3 enables users to take full control of their data.

How Does the Web 3.0 Biz Model Make Money?

1. Making money off your own data: Web 3.0 makes it possible for people to make money off the data that we generate every time we log in. By using the protocols of W3, we are in a better position than ever before to collect, safeguard, and take advantage of our own data.
2. Minting your own currency: The Federal Reserve no longer has a monopoly on the minting of currency. You can generate your own tokens or cryptocurrency by the W3 technology and using a platform such as Privi. You can reward your followers or members with tokens by assigning a monetary value to each token.
3. Democratize ownership of physical property: instead of putting property for sale on the real estate market, owners can now convert their property into a digital asset that is supported by an NFT by W3.
4. Revolutionize the credit industry: decentralizing the provision of credit has the potential to generate profits for the lender and give access to necessary loans to those who, under traditional circumstances, would be denied such access.
5. Start of Work for a Decentralized Autonomous Organization (DAO): DAO has the potential to become the employer of the future. One source of income for DAO is a financial transaction supported by smart contracts, the organizations collect funds by giving tokens to the people who join their community.

Web 3.0 Network Effects

1. In the W3 ecosystem, a platform provider is not required to provide market infrastructure; the ecosystem offers market infrastructure via resource commitments & infrastructure building.
2. The use of tokens enables the acceleration and expansion of network effects. The token provides a fresh method of incentivizing participants.
3. Because of W3’s interoperability, data and reputation may move around more freely, which makes network effects less tenable. It can not build up network effects due to the fact they are unable to “lock in” its user’s data with the same efficiency as W2.