What is Web3?

Imagine if the internet could predict exactly what you need and show it to you, even before you ask for it. Sounds both amazing and a bit strange, right? This idea could become a reality with what people are calling Web3.

Web3 promises a smarter internet, where artificial intelligence is everywhere. They talk about something called the Semantic Web, which means all the world's data is super connected. This could give regular users more control over their data compared to big companies. Also, it could make banks less important as people trade digital currencies without middlemen.

Understanding Web3

Web3 is the next version of the internet, based on blockchain technology, where users have more control and ownership. Web3 is the upcoming phase of the internet, the place where we access information and use online tools. It's still in development, so there's no exact definition, and even the spelling isn't agreed upon—sometimes it's called "Web3," and other times "Web 3.0."

What we do know is that Web3 will focus on decentralized apps and likely use technologies based on blockchain. It's also expected to use machine learning and AI to create a smarter and more adaptable internet.

Difference of Web2 and Web3

Web2 and Web3 are both parts of the Internet, but they have different focuses. Web2 is mainly about sharing and accessing content, while Web3 emphasizes creating content and focuses on making information exchange safer.

Here are some key differences between them:

Currency:

• Web2 uses regular money like the US dollar for transactions.
• Web3 uses digital currencies like Bitcoin or Ethereum, which are online and encrypted.

Content Ownership:

• In Web2, companies control where and how data is stored, leading to some privacy concerns.
• Web3 allows data to be stored in multiple places at once, making it more secure and private.

Speed:

• Web2 is generally faster because it looks for information in one place, like a single server.
• Web3 is decentralized, meaning it spreads data across many places, which can take a bit longer.

Technology:

• Web2 uses technologies like AJAX, JavaScript, HTML5, and CSS3.
• Web3 relies on newer technologies like machine learning, deep learning, and decentralized systems.

Applications:

• Web2 offers things like blogs, podcasts, and video sites.
• Web3 introduces advanced applications like AI-powered apps, virtual worlds, and 3D spaces.

In simple terms, while Web2 focuses on sharing and accessing content using established technologies, Web3 is looking to innovate with newer tech and emphasizes user privacy and control.

Core Concepts of Web3

Decentralization

Decentralization means there's no single person or group controlling things, whether it's how people talk, access content, or do business. In Web3, true decentralization means creating a strong global network where no single entity can control or shut down access. This is a key idea behind Web3 and public blockchain systems.

This new approach is very different from what we have now. It will greatly affect financial companies that support Web3. They'll need to rethink many things, like how they handle identities, security, and basic services. Essentially, these firms will need to adjust to a world where everything operates in a decentralized way, including how they attract and serve customers.

Blockchain Technology

Web3 has gained traction largely because of the rise of Blockchain technology. This new way of storing data online focuses on two main things: keeping data safe with encryption and spreading it out across many computers.

With encryption, only the rightful owner of something can access it, no matter where the data is stored. If you've heard of Bitcoin, it works using this Blockchain method.

The idea of using many computers means there are multiple copies of the data. This not only protects against things like computer crashes or disasters but also ensures that if one copy is tampered with, the other copies can catch the change. So, no one can alter the data without others noticing.

But when you make something open and shared like this, it brings up new challenges. For example, while sharing data is good, there must be rules and oversight to ensure things are done correctly. This is where Web3 has to be careful and organized.

Smart Contracts

Smart contracts are essential in the Web3 world and are key to how decentralized apps (DApps) work. Instead of using central servers like regular apps, DApps use smart contracts. These are automated code pieces that make sure rules and functions are followed without needing people to step in. They handle important tasks like confirming users and storing data, making DApps more powerful and independent.

Tokenization

In the Web3 world, everything of value can be turned into tokens. This is possible because of the built-in features of the blockchain, like managing identity, handling money, recording assets, and managing trades. There are four main ways to create tokens:

1. Tokens that show usage rights.
2. NFTs (Non-Fungible Tokens) that prove things like identity, abilities, contributions, or ownership.
3. Tokens that stand for real-world values, like digital versions of regular money, stablecoins, or environmentally-friendly bonds.
4. Tokens that represent rights to earnings, voting, or a mix of different digital assets.

Conclusion

Web3 is viewed by many as the essential element that makes a complete metaverse possible. With Web3, the finance world is facing a big change. In this digital space, our online characters will purchase virtual items and grow their assets with digital money.

Many believe Web3 is the future, and studies show that 88% of businesses are already looking into these new web technologies. Not every new tech becomes widely accepted, but some, like blockchain, AI, and edge computing, are becoming key parts of Web3. These technologies are gaining momentum. Companies that learn from past experiences and find ways to use these technologies effectively will be ready to make the most of Web3 when it becomes fully developed and mature.

However, UIIC pioneers Web3 with innovative DeFi, AI, and on-chain social platforms. Prioritizing security, user autonomy, and seamless asset integration, UIIC accelerates the transition to a decentralized future. Committed to advancing blockchain and fostering an inclusive community, UIIC leads in shaping a dynamic Web3 ecosystem. Follow our social media or visit our homepage to know more about UIIC.