How blockchain empowers and democratizes Web3.0

By Vikram R Singh

There is a lot of talk about companies becoming future-ready. But when it comes to embracing a future-ready technology like blockchain, most businesses hit the pause button.

However, without public blockchains, institutions and individuals cannot take advantage of the benefits of Web 3.0 – the potential future version of the Internet.

Decentralization and democratization

The importance of Web 3.0 is its decentralized nature. In essence, individuals and institutions can own and control parts of the internet and carry out virtual transactions without intermediaries such as Google, Facebook or Apple. As central authorities and intermediaries do most of the data collection, users’ privacy can be better protected via Web 3.0.

Consider decentralized finance (DeFi) – a Web 3.0 component gaining global traction. Through this, real financial transactions can be carried out on the blockchain without mediation from banks or authorities. Security is ensured since Web 3.0 developers refrain from creating and distributing apps that operate on a single server or store data in a single database.

Web 3.0 attracts frequent mentions of cryptocurrencies because many of its protocols rely heavily on crypto. As an innovative database technology, blockchain forms the core of almost all cryptocurrencies. Since blockchain distributes carbon copies of databases across the entire network, it is extremely difficult to cheat or hack the system.

Interestingly, Web 3.0 offers tokens or monetary incentives to those who help manage, create, contribute to, or improve one of the projects. Tokens represent digital assets linked to the vision of building a decentralized internet. The protocols can offer varied services such as bandwidth, storage, computation, hosting, identification and allied network services previously extended by cloud devices. People can make a living participating in the protocol in various ways, technical and non-technical.

Why Web 3.0 Trump’s Web 2.0

Unlike Web 2.0, the Internet will evolve into a more realistic 3D cyber world through Web 3.0. Popular use cases will include e-commerce, online gaming and the real estate segment, which uses 3D graphics. One of the biggest advantages of Web 3.0 over its predecessor is that the possibility of corporate or government censorship will be minimized, while the impact of DoS (denial-of-service) attacks will be negated. Consequently, it promotes greater privacy, trust, transparency and reliability.

Furthermore, Web 3.0 secures data by preventing access to others unless it is given by users. In addition, blockchain ensures direct verification of data and identities, making it more difficult to create fake accounts.

Transforming games and other segments

Driven by its benefits, Web 3.0 has transformed a number of industries, including gaming. Today’s games rely on centralized servers to store all game-related data, which game administrators then control and operate. The lack of highly efficient centralized servers and conventional games foster opportunities for hackers to trigger cyber-attacks/shutdowns, putting digital assets at risk.

But Web 3.0 offers innovative solutions such as DAOs (decentralized autonomous organizations) with decentralized game ecosystems, crypto-secured game wallets, play-to-earn, blockchain-linked ownership of games and metaverse gaming.

As a value-exchange game model, online games allow people to own and trade collectibles and in-game items through unique NFTs (non-fungible tokens) using cryptocurrencies. An open source, online gaming ensures decentralization and self-sovereignty, democratizing the segment. For example, by making digital technology accessible, Web 3.0 provides equal opportunities and services for all. Consider Web 3.0 wallets that only need an Internet connection. This gives millions of people without access to banking systems immediate access to global infrastructure.

Similarly, Web 3.0 has revolutionized the gaming universe by integrating blockchain technology and metaverse into games. Along with the DAO, such elements drive the economic side of gaming. These aspects help players to carry out profitable activities which include gambling to earn via NFTs and trading of in-game digital assets.

While Web 2.0 enabled seamless connections with family, friends and peers, traditional social media networks are all centralized. Because of this, users face a number of pain points such as censorship, data breaches, privacy breaches, de-platforming, server outages and more. These disadvantages mean that the disadvantages far outweigh the advantages. To avoid such problems, many companies and developers have switched to Web 3.0 social media, considering the comparative advantages.

Web 3.0 development is also leading to the emergence of a new era of technology with DeFi components along with MetaFi (metadata finance), GameFi (video game finance) and SocialFi (social finance). Moreover, it popularizes decentralized digital assets such as NFTs and SBTs (soul bound tokens).

Strengthen e-commerce and content creation

Besides individuals, blockchain is increasingly gaining prominence in the global economy, including the e-commerce segment. Worldwide, more than 30,000 venues currently allow consumers to pay with cryptocurrencies, including major brands such as Expedia, Microsoft and Overstock.

Blockchain has several applications and functions in e-commerce. The most important ones include improving customer data security, reducing shipping costs, promoting transparency in supply chains, accelerating transactions and checkout, eliminating the need for middlemen, ensuring direct product delivery and providing easy access to warranties and receipts. It also enhances business procedures and improves the overall consumer experience.

It can be noted that users spend a lot of time watching videos, scrolling through the feeds and reading blogs. Nevertheless, most people do not get any financial benefits from this, even though the platforms collect huge revenues from these users.

Conversely, Web 3.0 encourages users and benefits them in other ways as well. Several blockchain-powered Web 3.0 portals such as blogging, video sharing and social networking platforms, web browsers and more reward consumers as well as creators with native tokens.

Thanks to such developments, content creation is slated to benefit from blockchain. Currently, content creators on social media do not earn as much money as the platforms themselves. All this will soon change as many companies develop solutions with blockchain technology that allow users to pay content creators directly for their work. Disintermediation of social networks means that they can no longer keep the lion’s share and only forward meager amounts to content creators.

In a nutshell, blockchain is utilized to ensure that content creators have greater control over the sharing, distribution and consumption of the content by the target groups. The same story is unfolding in other domains as decentralized networks eliminate the middleman, passing the baton to consumers and developers. The future is already here in the form of Web3.0.

The author is the founder and CEO, Antier

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