Web3, the future of the Internet, promises to revolutionize web development by offering users a more secure and personalized online experience. The dream of Web3 is a decentralized Internet powered by blockchain technology.
Blockchain developers are already developing and deploying decentralized applications to great results. Many believe it is only a matter of time before decentralized technologies become the standard of modern web development.
Now is the time for your organization to consider how Web3 will impact its digital assets. While there is debate about whether Web3 will ever fully exist, there can be no doubt that decentralized technology will continue to be of great interest and importance to businesses.
This post will explain what Web3 is and the benefits of Web3 development.
Web3: Using Blockchain Technology to Decentralize the Internet
Web3, or Web 3.0 as it is sometimes called, is an idea for a new version of the World Wide Web based on blockchain development, token-based economics, and decentralization.
While the term Web3 was coined nearly a decade ago by Gavin Wood, co-founder of the Ethereum blockchain, it wasn’t until the last few years that the concept of Web3 development got more popular as technology companies and computer science enthusiasts showed greater interest in it.
Web3 promises to be a decentralized online ecosystem based on blockchain platforms and technology. The result of this approach is decentralized apps that run on a distributed network of nodes instead of being controlled by one entity.
Thanks to blockchain’s distributed ledger technology, online transactions are transparent and secure, eliminating the need for third-party trust or verification.
Web3 Vs. Web2
Web2, or Web 2.0, is characterized by the centralization of data and content by a few big companies informally called “Big Tech.” In contrast, Web3 utilizes decentralized technologies to give data and content control back to online communities and regular people.
While many of the proponents of Web3 are excited about the improvements that could be made to online privacy, data security, and scalability, detractors of Web3 point out that a decentralized Internet will be harder to regulate and could lead to an increase in hate speech and cyber crimes.
While there is a lot of work still to be done on Web3 and decentralized applications, it is clear that many people are interested in eliminating or drastically reducing the power of a centralized authority online. As a result, Web3 development will continue to be a topic of interest online.
The Benefits of Web3 Development
If Web3 is not a reality yet, what are the benefits for organizations? Why should your organization’s web developers and software developers be interested in Web3 development?
Just because Web2 is still the basis for the existing web doesn’t mean a software developer cannot build decentralized applications. The benefits of developing decentralized applications include the following:
- Automatic execution of agreements
- Immune to censorship
- Reduced development costs
- Open source ecosystem
Automatic Execution of Agreements
On Web 2.0, executing complex transactions between multiple parties requires using intermediaries. Relying on intermediary services costs more money and enables a few select companies to control the Internet.
Decentralized applications utilize smart contracts to automatically execute transactions when the agreement conditions have been met. Smart contracts eliminate the need to rely on a trust-based system or service provider.
A smart contract is essentially just computer code developed using blockchain technology. Writing smart contracts becomes an essential task for Web3 developers, but the primary benefit of smart contracts is that they allow businesses to cut out the middleman.
Immune to Censorship
The existing Internet is far from free. There are government restrictions and regulations and restrictions placed on the Internet by private companies. In certain parts of the world, Internet censorship is a significant issue.
Many Web3 proponents and blockchain enthusiasts believe this is the most critical aspect of decentralization and Web3. Since there is no centralized control over decentralized applications, censorship or access restriction becomes very difficult to achieve.
The primary business benefit of this immunity is the potential to reach new markets. In many parts of the world, apps are restricted or completely censored. If your business can get around restrictions and censorship, it could reach a new market of users and customers.
For example, China is a lucrative market, but it is heavily censored, and apps and websites are heavily restricted and censored.
Reduced Development Costs
Since the blockchain ecosystem is distributed, there is no need for intermediaries or fees, reducing the development cost. Reduced development costs give your organization more flexibility and money to invest in innovation and marketing strategies to attract users.
Open-Source Ecosystem
Web3 and decentralized applications are open-source, ultimately encouraging innovation and faster development of the broader ecosystem. Web3 and decentralized applications still have not been widely adopted.
However, since Web3 is open-source, improvements and innovations to the ecosystem can be developed much faster. Most of the most successful technologies are open-source and benefit from large development communities.
The Issue with dApps and Web3
From a business perspective, the most significant issue of Web3 is it has not been widely adopted. As a result, there is not a large user base for decentralized apps (dApps) or Web3. If you want to tap into an immediate new source of users, Web3 is not there yet.
However, the infancy of Web3 also presents a significant opportunity for interested organizations to get involved at the beginning and position themselves for sustained long-term success.
Critics of Web3 also think it is a crypto fad and unrealistic. They see this technology in the same way they view NFTs and cryptocurrencies.
Final Thoughts
Web3 development is an exciting topic for businesses to explore. It has not yet replaced the existing Internet, but Web3 could well replace Web 2.0 in the future. Organizations need to position themselves for the future.
To learn more about Web3 development, contact an experienced HiTech and blockchain development partner like Koombea.
