What Is Web3 and Why is it Important?

What Is Web3 and Why is it Important

Telling you that 5 billion people are using the Internet is not surprising now, is it?

Gone are the days when the Internet was built solely on inclusiveness but with no real power for people to interact. Today, we have a new era where we don’t just communicate but own parts of the Internet.

In short, we are taking steps toward the so-called Web3.

The growing interest in NFT prompted the rise of Web3. So before you dive into NFTs and start searching for NFT consulting services, let’s see what Web3 is and why it’s so important.

Brief History

To give you a better picture of how Web3 came to be, check this timeline:

  • 1989 – Web1 was implemented into the web – the so-called “read-only” Internet.
  • 2004 – Web2 took its place, opening the path for today’s “read-write” Internet.
  • 2014 – Web3, as a term, showed up, but the idea behind it didn’t gain momentum until 2021.

What is Web3?

Web 3 is the “read-write-own” Internet. It allows people to interact on the Internet and own parts of it. To simplify, think of NFTs and crypto – the basis on which Web3 is built.

The term, Web3, was coined by Gavin Wood, a co-founder of Ethereum. Like Ethereum and all other cryptos, the idea of Web3 is grounded on a trustless model. The goal is to stop trusting private companies on the presumption that they act in the public’s interest. This is why Web3 is based on the blockchain network.

Web3 is based on the blockchain network

Key Aspects

Getting one specific definition of Web3 is still challenging. So, let’s break down the crucial parts:

  • Web3 is decentralized.
  • Everyone can access Web3.
  • Web3 uses cryptos for payments.
  • Web3 doesn’t rely on third parties.

Why Does Web3 Matter?

Now that you know what Web3 is, let’s look at its importance:

  • Possession – Web3 allows you to take ownership of digital assets through NFTs. Unlike Web2, where you depend on the creator of the item created as part of their platform (or game), in Web3, nobody can take your assets away.
  • Simplified identification – On Web2, you must create a separate account for every platform you use. But, on Web3, you only need an Ethereum address and an ENS profile.
  • No censorship – We’ve seen many sites lose customers because of bans that weren’t present when you first signed up for their services. Web3 ensures this doesn’t happen – censorship resistance is a core feature.
  • Crypto payments – Since it’s based on the same principle as cryptocurrencies, Web3 allows for payments conducted with digital coins, providing anonymity and a higher level of safety.

Challenges with Web3

Naturally, Web3 is still developing, so there are several challenges. The main ones are:

  • Web3 still works on centralized structures like Discord or Twitter. It will take time to build a fully decentralized platform.
  • Considering it is a new thing, many people are still unfamiliar with it. Everyone needs time to get used to the concept and build their trust around it.
  • Unfortunately, Web3 is still hard to reach in less-developed countries.

Work with a Digital Marketing Specialist

Understanding Web3 takes time, so consulting experts is always the right call.

We at Synapse Research are here to help with anything you need – from NFT consulting to NFT creation and more.

Get in touch with us, and learn how we can assist you on your journey into the Web3 era.