Web3 is based on blockchain technology, encouraging the use of crypto wallet addresses as online identity.
Since Web3 is a term that investors often encounter, it brings to mind the question of what is Web3. It refers to the understanding of the web based on blockchain technology and where crypto wallet addresses function as online identity.
This new web phase allows users to have control over their own data. It frees people from traditional methods such as tracking cookies and reading terms of service in centralised structures.
Web3 is closely related to decentralisation and crypto concepts such as tokens. It focuses on the intersection of these technologies. In this case, we will examine how Web3 will change the use of the internet and how it is already changing it.
To summarise the question of what Web3 is, it offers users more authority and freedom in areas such as data ownership, privacy and access control. To take advantage of the freedoms offered by Web3, go to our article immediately and take advantage of the unique features.
How did we come from Web 1.0 to Web3 .0?
To understand what Web3 is, it will be useful to learn the previous versions of web3 (web 1.0 and web 2.0).
Web 1.0
In the early days of the web, websites offered static content. To update a web page, someone had to manually edit the HTML code. Until the code was updated, the page continued to show the same content.
This period is known as Web 1.0 and lacks the interactivity and dynamics we are used to from today’s web. The World Wide Web was invented by scientists in 1989 for information sharing. However, it was not too late for commercial use.
For example, commercial sites such as Bloomberg.com were launched in 1993, and shortly after, in 1994, Apple’s website apple.com was launched. These sites began to show that the web was not only for sharing information but also had commercial potential.
Web 2.0
The 1990s reinforced the importance of using the web as a repository of information on all subjects and providing access to relevant content.
However, web pages in this period were generally static. In addition, the content was centrally controlled. In this case, companies and individuals determined the content of each page.
With Web 2.0, the web has transformed into an interactive and dynamic platform, which has caused a major change in the world. Users were now actively contributing to the content creation process. Platforms such as MySpace (2003), Facebook (2004) and Reddit (2005) stood out as sites where user-generated content was at the centre and interaction was prioritised.
These sites reinforced the social and interactive nature of the Internet by allowing users to create content and interact with each other.What is Web3
User-generated content, a feature of Web 2.0, at least signalled a move towards decentralised content production. However, site administrators and companies continued to control who posted what and what content was acceptable.
Transition to Web3
The transition to Web 2.0 also marks an important period in the development of JavaScript. JavaScript was created in 1995 and began to make web pages more interactive by running code in web browsers. The development of this language expanded the way the web was used and enabled richer user experiences.
Although Web 2.0 made the web more attractive, it paved the way for large companies to collect and monetise user data on an industrial scale. Moreover, the Web 2.0 era brought concerns about censorship and content control. In some cases, users were silenced and their posts were somehow deleted on platforms they perceived as ‘public spaces’.
In practice, the Web 2.0 internet became more centralised than many might have imagined. However, Web 3.0 (web3) promised to give users more control over their data and online identities. It is not yet certain whether this new approach will be successful, but some early examples of web3 are beginning to show the potential of a decentralised future.
So What Does Web3 Mean?
Let’s start by learning the meaning of what Web3 is. Web3 is a concept that involves the use of crypto wallet addresses as online identities.
These platforms generally allow file storage and transaction data to be stored on the blockchain. It supports decentralisation by enabling this information to be replicated on hundreds and thousands of computers worldwide.
Crypto wallet addresses can interact with smart contracts running on the blockchain, which allows each of us to control our online identities.
These identities cannot be removed by any organisation and moderators and ensure our online privacy by using multiple identities.
Key Terms You Need To Know To Understand What Web3 Is
Web3, like other technological innovations, comes with its own unique jargon. It is useful to know some important terms that you may encounter in this new field.
These terms help to better understand Web3 technology and to communicate more easily in this field.
This jargon allows us to understand the basic concepts and functioning of the Web3 world more clearly so that we can understand what Web3 is. Let’s examine some of the important terms you will encounter together.
Blockchain: Blockchains are a method of storing data and transactions in a way that protects them from changes and interference. Transactions are grouped into blocks and then linked together using cryptography to form a chain. Blockchain networks provide massive distribution and security by spreading to tens of thousands of computers worldwide. With this structure, blockchain technology has the potential to revolutionise digital transactions by increasing data integrity and transparency.
Smart contracts: A smart contract is a computer programme running on a blockchain network. It works based on a conditional logic. It automatically executes a specific transaction when a certain condition is met. This structure can be explained as ‘if this happens, do this’. This makes them highly effective in financial transactions, automated payment systems and many other areas.
Cryptos:
Cryptocurrencies are digital currencies that enable blockchain networks to function. The term ‘crypto’ is used as a generic name for the industry and technology. It also has its origins in the science of cryptography, which enables the interconnection of chains and the recording of transactions. This technology enables digital transactions to take place securely, providing security and anonymity.
Crypto wallet: In order to understand what Web3 is, it is necessary to recognise crypto wallets. A crypto wallet creates and stores private keys that control your assets on the blockchain. ‘Hot wallets’ are defined as software applications that are connected to the internet and usually offer the advantages of easy access and fast transactions. In contrast, ‘cold wallets’ are hardware devices that are not connected to the internet and provide higher security. These devices offer an option that is more resistant to hacking risks thanks to the offline storage option.
Pseudonymity: Although many people think that cryptocurrencies are anonymous, it is actually more about pseudonymity. Cryptocurrencies use crypto wallet addresses as identification during transactions. While these addresses are not directly linked to your real-world identities, they create a traceable record by linking all your transactions to these addresses. Therefore, instead of cryptocurrencies being completely anonymous, we can say that transactions are made under a pseudonym and these transactions are associated with a specific wallet address.
NFT:
A non-fungible token (NFT) is a digital asset recorded on the blockchain that verifies ownership and proves the authenticity of an asset. In the Web3 world, NFTs are used in various fields ranging from digital artworks to financial investments. It also provides their holders with exclusive rights and proof of ownership. This technology redefines the concept of ownership in the digital world, helping artists and investors to directly control their businesses.
Decentralised management: As the name suggests, decentralisation refers to a form of governance without centralised authorities. In Web3, decentralisation means that the management of applications, blockchains, control of identities and universal access is decentralised. This refers to a structure in which systems are managed not by a single authority. But by the collective decisions and interactions of many different participants connected to the network. The aim of this structure is to create a more transparent, fair and accessible digital ecosystem.
DAO: A decentralised autonomous organisation (DAO) has a structure that puts the management of blockchains and applications in the hands of the community. In this structure, members vote using tokens to determine management decisions. DAOs have been developed as an alternative to traditional hierarchical governance models. It provides community members with equal rights and transparent participation. Thus, all important decisions are made democratically.
DeFi: Decentralised Finance (DeFi) is a system that provides access to financial services without intermediaries such as banks, payment providers and crypto exchanges. This allows users to directly access money markets and directly trade their assets with other users. DeFi applications offer financial services that increase transparency, accessibility and user control by understanding what Web3 is and using Web3 technology.