Web1 was the first iteration of the internet that involved static, read-only content, while Web2 involves user-generated content and relies on information exchange between companies and users to build a centralized social ecosystem. Both stages have paved the way for Web3, a concept based on a broad movement to make the internet more decentralized and secure.
Back in 2014, Gavin Wood, one of Ethereum’s founders, coined the term “Web 3.0” to refer to the decentralized, blockchain-based web. More specifically, Web3 is a collective set of protocols and technologies that give users verifiable guarantees about information received, information sent, payments and what the user gets in return.
Within Web3, users can form communities called decentralized autonomous organizations, or DAOs, and vote to collectively manage the decision-making and direction taken by a platform. This is designed to reduce the power of third parties where leadership and management are only carried out by a few select individuals.
While it’s not a new concept, the term Web3 became increasingly popular in 2021 as more industry leaders started to use it to refer to an internet that’s not owned by a single entity.
Interest in Web3 grew significantly in 2021, with searches for the keyword dramatically increasing as the year progressed. And as more Web3 projects sprouted, prominent investors like Mark Cuban and Kevin O’Leary also started to be involved in technologies within the sphere.
One of the most notable developments for Web3 is the attention it got from major companies such as Meta (formerly Facebook), which announced its entry into the metaverse space and its plans to have some compatibility with blockchain-based technologies. Apart from this, major venture capital firms like Andreessen Horowitz have also boarded the Web3 train by investing in projects developing and promoting Web3 technologies.
The concept also faced its fair share of controversy in 2021. While having an egalitarian definition, it was very obvious that venture capitalists, hedge funds and Big Tech companies were the ones heavily investing in Web3 technologies. Tesla CEO Elon Musk even criticized the term as a marketing ploy and mocked it on Twitter alongside fellow tech bigwigs Jack Dorsey, CEO of Block, and Billy Markus, co-creator of Dogecoin.
While it’s hard to pinpoint the exact direction that Web3 will take in 2022, there are some major upgrades expected to happen very soon. For example, Ethereum — one of the biggest Web3 platforms — is expected to start rolling out updates to make the network more scalable and transactions cheaper. This means that Web3 DApps built on the blockchain will run faster and require lower fees, though the current Ethereum roadmap doesn’t see shard chains actually shipping until 2023.
Apart from this, major developments in other layer-1 blockchains such as Solana, Avalanche and parachain-platform Polkadot are expected to deliver updates that will soon allow for an interoperable multichain era. This also means that the usability of cross-chain bridges will improve massively as more users begin to adopt Web3 technologies.
Many are still unable to comprehend the definition and scope of Web3, meaning it’s still a developing concept that needs to be explored and discussed. But while it’s hard to predict where it’s headed — and while some may question its existence — it’s expected to stick around.
Adoption
