What Is Web3 And Why Is It Important? (2024)

Since the introduction of the internet, there have been a lot of changes which help in improving the quality of this invention. There was a time when the user of the internet didn't participate in the interactions carried out on the internet, and we are in a time when users can interact on the internet but cannot control it.

Web3 is a better version of the internet that seeks to give power back to the users and its core values are based on blockchain and cryptocurrency technology. These are the basic things you need to learn about Web3, the technologies it was built on, and why it is important to all internet users.

Web3 is the term that was coined by Ethereum co-founder Gavin Wood to describe a better version of the internet. The major aim of Web3 is to give back the internet power to the users instead of companies. To achieve this, Web 3 makes use of blockchain and cryptocurrency technology to create a form of ownership. The best way to describe the change that Web3 will make is to take a look at the past and present internet era.

Web1 was just a read-only internet where users had no contribution or interaction. The Web2 which is what we are using presently is a read-write form of the internet where individuals can interact and contribute to the internet. Web3 is a Read-Write-Own form of the internet where individuals can read, interact, and have some form of ownership on the internet.

Although it is quite hard to have a standard or rigid definition of "what is Web3", you can still make out what it stands for through the idea and protocols on which it is built on. Here are the core ideas of Web3 on which it is built:

Web3 is built on the idea that everyone is entitled to make use of the internet and no one should be excluded.

Both Web1 and Web2 operate on a centralized form where big companies and firms control the internet. The idea of Web3 is to distribute the ownership of the internet among the users and its builders.

One cannot deny the fact that the financial industry is heading towards cryptocurrency and many top companies including Tesla are now accepting payments in crypto. Web3 makes use of cryptocurrencies to make payments instead of using the old banking and third-party system which is getting outdated. This is one of the biggest benefits of Web3.

It is sometimes hard to explain the importance of Web3 without making use of big words that the average human being may not understand well. There is so much importance to the Web3 and these include:

• Easy Identification:

The majority of the platforms on the internet require you to create an account with them to be able to have access to the site. This means that without creating an account and giving them access to some vital personal information, you cannot be identified as a member of the platform. The benefits of Web3 come up as you can easily make use of your Ethereum address and ENS profile to control your digital identity.

• Native payments

A quick answer to "what is Web3 used for" is that it aids monetary transactions across the Internet without requiring banks or third parties. This means you can make use of ETH to send money to another person while still making use of your browser.

• Refined Ownership

Changing the narrative of ownership on the internet is one of the importance of Web3. A good instance to explain this is when you are playing a game and purchasing in-game items, deleting your account from the gaming platform means that the purchased items will be lost too. But with Web3, you are the direct owner of the in-game items such as non-fungible tokens (NFTs).

• Rise In Artificial Intelligence

The inception of Web3 will give rise to the massive introduction of artificial intelligence due to the decentralized nature of Web3. This artificial intelligence will help humans with medication and pharmaceuticals, and precision materials, and they will do this far better than humans have done in the past.

• Resistance To Censorship

One of the things that define the answer to "what is Web3 '' is that it gives power to the users of the internet. In the case of Web1 and Web2, companies on the internet tend to censor and monitor the actions and data of users. But Web3 is built on blockchain technology and you can decide to remove your data from the blockchain and take it to where it fits into your preferred values. This is another excellent answer to "what is Web3 used for''