Why do we need Web 3.0, and what opportunities it will give to cryptocurrency investors?

To understand what Web 3.0 is, let’s try to understand Web 1.0 and 2.0.

Web 1.0 is the genesis of cyberspace. Previously, browsers didn’t have pop-ups or annoying ads. They were just bright pages full of helpful information. Libraries, businesses, and government agencies used the Internet to host their databases.

Web 2.0 is the Internet as we know it now – a centralized shelter with endless content. Games, work, music, relationships, politics-all this happens on the same server. Every photo you post, tweet you send, every movie, song, and game you play is compiled and recorded for mass use. The ads and ads you see, and articles in your feed are based on an analysis of your online activity. How else can we explain that we see ads for cat food after we search the Internet for tips on caring for these pets? Your smartphone relentlessly informs Google about where you are and what you like.

Web 3.0 says NO to all of the above. In Web 3.0, decentralization is everything. Web 3.0 has barely passed the conceptual stage, but we can already tell that it has enormous potential. In particular, it is worth exploring the relationship between the Internet of Things and Blockchain in the future and how crypto users can benefit from the development of this industry.

ДIn order to answer any questions related to Web 3.0, it is worth understanding, and what is WEB 3.0 in general? There is no consensus on thisнет, but most of those who mention WEB 3.0 agree that this is the Internet for blockchains. Logically continuing this thesis, we can conclude that since different blockchains need the Internet, it means that they must function and interact with each other. It becomes clear that there must be bridges or other mechanisms between different blockchains that allow two different blockchains to interact.

From the history and creation of Web 3.0

In general, the very idea of WEB 3.0, as some believe, appeared thanks to Dr Gavin Wood, who, after leaving the Ethereum team, founded the Web3 Foundation. If you try to explain Web 3.0 in simple terms, you can classify Web 1.0 as the earliest history of the Internet, when you could create a website and interact with it. It is followed by Web 2.0, the Internet where applications and sites (Youtube, Twitter, Facebook, Reddit, VK, etc.) have appeared, allowing the author to create content on them and other users to interact with them already made content. As many people say, the era of Web 3.0 is coming, where the Internet will have a built-in financial function regulated by cryptography and blockchain and freedom and anonymity for its users.

Web 2.0 created many problems and began to move away from the development vector laid down by Web 1.0 since a lot of content made on sites or in Internet applications could be censored or deleted. In addition, in Web 2.0, many areas had access to the personal data of their user’s accounts. Moreover, it often sold information to large corporations to provide users with marketing services.

There was also an unfair distribution of profit between the site authors and content creators. Vitalik Buterin recently noted that cross-chain and multi-chain are different if we talk about the Internet for blockchains. Speaking negatively about cross-chain because of the vulnerability of its bridges to hacker attacks and expressing sympathy for the multi-chain of the future, the expert noted that it is necessary to understandния тогоthat something should unite all blockchains among themselves.
In his opinion, in the end, it all came down to the fact that two of the most notable projects are entering the scene of the cryptographic market – Polkadot ($DOT) and Cosmos ($ATOM). What unites these projects is that they are both Layer 0 and not Layer 1 or Layer 2, like other blockchains. Again, don’t forget that the creator of Polkadot is the Dr above Gavin Wood. Polkadot, in general, was ahead of its time. While Vitalik Buterin in January 2022 says that the future will be for multi-chain, and sharding is an excellent thing, Dr Gavin Wood, back in 2016, already started creating Polkadot, following these canons.

Polkadot itself can become the basis for Web 3.0, where it provides security with its Layer 0 platform. On this layer, one blockchain is connected via paracymene, in which smart contracts are already created. In addition, all parachains will be linked by Relay Chain. There will be no need to make bridges between Layer 1 since all parachains will be connected via Relay Chain. What is it if not a multi-chain?

Web 3.0 and blockchain technology.

КWhat role will blockchain technologies play in Web 3.0, and what connection can there be between the Internet and cryptocurrencies? Here are the expert’s opinions:

Web 3.0 is a set of new protocols that significantly change the existing Network picture. The decentralization underlying some of these protocols, for example, allows you to create sites that cannot be blocked and also link not only information to a personal domain but also use it as a payment address in cryptocurrency.

In Web 3.0, users can safely manage their data and selectively share it with the necessary services, while the data itself can be stored in the blockchain. The user will also be able to use secure authentication methods, send and receive payments quickly and securely within the framework of new services (including instant messengers), etc. (Alexander Bespalov, Vice President of Investor Relations Club);

The next innovation of Web 3.0 is the ability to own digital assets – until now, any Internet user (Web 2.0) could not hold anything on the web. A social network account, messenger correspondence, and emails in your mailbox are all owned by service providers: Meta, Telegram, and Google. They rent it all out to us and have the right to dispose of everything that appears due to our actions on its platforms. And they actively dispose of our data-they sell it to advertisers without our consent, and sometimes even without our knowledge.

The opportunity to own something digital on the Internet is provided by Blockchain technology. Humanity has not yet come up with another way. Therefore, Web 3.0 and Blockchain are inextricably linked. The emergence of cryptocurrencies such as Bitcoin is not an end in itself but only a consequence of the emergence of Blockchain technology. It is the first most prominent and popular business case if you want. As soon as it is possible to own, people try to create an analogue of money or gold. But it is not the only way to use the technology. (Egor Abramov, principal of the Fort Ross Ventures venture fund);

Web 3.0 is the next stage of Internet development. It opens up the possibility for investors to manage their resources, cash and intellectual property or content property. These resources are now being used to enrich the Internet giants, the so-called creators of the Web 2.0 era, and people give them their content and time for free. Moreover, the Internet in our time has become a “public domain”, and people can earn their income if they watch certain content or advertising. It also means not storing data on the server of one giant but storing it with users. Web 3.0 brings some kind of personalization to the Internet, and in our time, when most of life moves to the Internet, this becomes a necessity, not a desire. (Yusuf Ghairat, founder of Narfex);

Blockchain brings fundamental characteristics for the new Internet to Web 3.0 – decentralization, transparency, security and efficiency. Therefore, it can become an infrastructure and base for project development. This process is already being tested, and DeFi, NFT, and metaverses within the crypto community are essentially the first versions of Web 3.0.

The role of cryptocurrencies themselves cannot be underestimated because the Internet is the world of digital money. And the concept of Web 3.0 implies users’ participation in all processes, including creating new means of exchange. To do this safely and with minimal commissions, you need cryptocurrencies. (Vladislav Akelyev, Development Director of the ECOS cryptocurrency investment platform);

Blockchain will be crucial in the spread of Web 3.0. Due to the decentralized nature of the distributed Network, traditional data channels will be complemented by a multitude of computing resources distributed across various devices, which are projected to produce and consume much more information than they currently do.

Due to its distributed architecture and the absence of unnecessary intermediary links, Web 3.0 equalizes the capabilities of users, making the environment more democratic. Thus, thanks to the new technology, we will get a more open, transparent, reliable, and free Internet. (Danatar Atadzhanov, OXLY Brand Manager.IO);

БBlockchain technologies are a connecting element of the Web 3.0 ecosystem. A distributed registry is the basis of a decentralized network infrastructure in which web applications can exchange information directly between all equalе participants. (Nikita Kutsenko, founder of FINOMEN Investment Academy);

Web 3.0 is the new decentralized Internet. Here, any data, any content will be stored using the blockchain. There is a direct link between it and cryptocurrencies since Web 3.0 will be implemented on the blockchain. If we talk about the metaverse (which is also implemented on the blockchain), there will be an economy where it will need cryptocurrencies. It is not yet clear what cryptocurrencies they are, but they will be in demand. (Mikhail Alyonushkin, Managing Director of 3V FUND);

The Internet was initially designed as a decentralized medium for information exchange. However, at the moment, the Web 2.0 network is significantly centralized in terms of data sources, aggregators, and repositories-Google, Yandex, and so on. Accordingly, censorship in monopolies is a natural phenomenon. For example, what are “cancel culture” manifestations in the United States-blocking Twitter accounts and order?

Web 3.0 is a concept that has even been identified with Blockchain technology, especially in recent years. This technology can affect the increase in decentralization on the Internet. Cryptocurrencies, in particular, Bitcoin, are initially positioned as “electronic cash”. Cash is something that is in the wallet, not in the bank-hence the talk about the connection of cryptocurrencies with the” new Internet” of the future – decentralized. (Viktor Dorokhov, practical teacher of the Digital Economy program at IIEB).

Advantages of Web 3.0 over Web 2.0.

As the Internet becomes decentralized, no one will collect your data. Censorship will also be a thing of the past. No one can delete your posts and comments from social networks, as the blockchain does not provide it. What you broadcast to the Network will remain there forever, thanks to the immutability of the blockchain, and no one will be able to delete this information. Yes, and you too.

With the help of experts, we tried to understand more deeply what are the advantages of Web 3.0 over the existing Internet:

Since the main innovation of Web 3.0 is the ability to own a digital asset, the benefits generated by this technology are endless. Just imagine how much the concept of private property has changed the world – the online world will change just as much now.

Specific example:

Imagine that one state has implemented a real estate reform. You can buy an apartment, but you can’t sell it or rent it out. If you want to exchange a 1-room apartment for a 2-room apartment, you need to abandon the 1-room apartment and just buy yourself a new 2-room apartment. What do you think people would do? I would suggest that many people would prefer to wait and immediately buy a larger apartment not to waste money. It would lead to the fact that the economy in such a state would decline because of the purchase of a flat, the associated move, repairs, replacement of household appliances, etc. – this is a strong “acceleration” for any economy. The more people move and consume, the better. So in the modern Internet, its conditional “economy” is in significant decline and is controlled by several large companies that have monopolized the information landscape. At the same time, Web 3.0 brings a qualitatively new level of functioning to this economy and will breathe new life into it. (Egor Abramov)

The main advantage of Web 3.0 is that a person will be the owner of their data and actions. (Yusuf Ghairat);

It is assumed that the new Web 3.0 will be more secure than the existing Network (Web 2.0). It will allow users to manage their data more flexibly and allow sites to become independent of third parties (be they states or regulators). (Alexander Bespalov);

Since then, everyone often has had their interpretation of the term “Web 3.0”. But, recently, ideologists and journalists have been increasingly focusing on the aspect that now conditional Google and Meta/Facebook are profiting from everything users generate on the Internet, on any activity. Meanwhile, in the beautiful decentralized Internet of the future, the user independently owns his digital assets, including digital content.

A simple example:

“In an online game on the regular Internet, your Chaos Fire Sword, purchased for $777, is stored behind the game Company’s servers. And in Web 3.0, the same sword is stored in the blockchain in the form of NFT. Without any game, you enter the browser extension. There is a sword in your wallet (MetaMask for Ether or Phantom for Salon). Suppose the Arctic data centre of a gaming company suddenly destroys a meteorite, or the entire board of directors eats fly agarics, rejects worldly vanity and flies to Tibet on the first flight. In that case, nothing will happen to this sword. It’s nice. (Daniil Shepovalov, IT expert, specialist in technical analysis);

Due to decentralization, the transition to Web 3.0 can solve the problems of web services’ opacity, censorship on the Network and privacy of personal data. Moreover, it can distinguish the following advantages of the “new” Internet:

a) Internet without centralization. Web 3.0 will not exist on centralized servers that belong to specific people or companies. Instead, it will be a distributed database stored on particular nodes, and anyone can become the node’s owner. Thus, an open public register provides transparent reporting. Without a central authority, one participant will not be able to impose a decision on others or gain access to other people’s encrypted data.

b) Anonymity of user data and transactions. Web 3.0 allows you to go through pages, download something and buy without being able to track your identity, thanks to cryptography. Users get complete control over their data, and information can only be shared individually and with the permission of its owner. (Nikita Kutsenko)

First of all, this is decentralization ― services and platforms will work with the help of users themselves and the power of their equipment. Web 3.0 is about deeper user participation in all Internet processes. It implies many advantages: greater privacy and data security, stable operation of sites and applications, more interactive user interaction with the environment and the Internet of Things. (Vladislav Akelyev)

Advantages of Web 3.0 over Web 2.0

Openness: Web 3.0 applications are created based on open-source software, which users and developers have access to and control.

Equality: the technology allows participants to interact openly or confidentially without the participation or control of a third party, such as a provider that provides access and determines your rights or preferences;

Inclusivity: Use or participation in projects does not require differentiation on any grounds or permission from higher authorities or instances.

Also, the sale or exchange of information in the Web 3.0 environment occurs without the owner losing control, giving up confidentiality, or depending on third-party intermediaries. (Danatar Atadzhanov);

The advantages are speed and decentralized data storage. There will be no physical servers that can remove, or that may break. All data is stored in a decentralized manner, by and large, on all computers worldwide. Everyone will have access to them, everyone will be able to use them, and it will be impossible to stop this process. (Mikhail Alyonushkin)

The advantages of Web 3.0 are related to the absolute ownership of subjects’ data: money is stored by users, personal information is provided with consent, and (or) can be monetized by users, etc. In the Web 3.0 paradigm, blockchain is the most critical technology since it makes it technically impossible or economically extremely inefficient to appropriate and use other people’s data and assets. (Viktor Dorokhov).

The practical significance of Web 3.0 in the crypto industry.

But the opinions of experts on how to use Web 3.0, mainly for crypto users, and the question – how is the development of this industry promising for the crypto industry and the community?

УWeb 3.0 has a vast perspective – the whole world is moving in this direction:

Web 3.0 will give serious development to the metaverse. For example, in 10 years, it will be possible to forget about fiat money altogether and use only cryptocurrency. It means a massive increase in demand for it. The MANA project can be cited as an example. By and large, it is a custom game. You register, go in, you have your character, you can buy real estate, land in the game for real cryptocurrency and earn income depending on the popularity of these lands. And this is a fascinating story. (Mikhail Alyonushkin)

Web 3.0 has vast application potential. The Internet can become a completely anonymous, decentralized, uncensored environment using cryptography and innovative contract technology. Many projects offer domains on decentralized sites, such as the Ethereum Name Service, Unstoppable Domains, and others. (Denis Kurilchik)

Ways to use Web 3.0 today are in the realm of GameFii or DeFi applications that run entirely on smart contracts and interact with users through Web 3.0. It can be saidтьthat almost all new generation coins from the field of DeFi, NFT, and GameFi are successful examples of Web 3.0 applications. These also include such sites as Odyssey (a decentralized analogue of YouTube, or the Brave browser. (Yusuf Ghairat);

НWhich of the possible applications are closestх to implementation today:

• Fintech: everything related to finance, trade, money transfers, banking services – cheaper and faster financial transactions.
• Security: transactions in the blockchain are much more transparent than in cash transactions and even in banks. Because the first is not visible to anyone at all, and the second is visible only to a narrow circle of banks, but not to the general public. Any transactions (not just monetary ones) are visible in the blockchain. Therefore, everything related to KYC/AML, security, identity verification, etc. procedures will work much more conveniently, transparently, and efficiently.
• Creative economy: the world is moving away from companies that produce goods-towards individual creative people who can deliver goods online alone. It is especially true for digital art: images, music, and videos. But there is one problem – in Web 2.0, everything people have created on the web does not belong to them. And Web 3.0 should fix this.
• Metaverse: The world is moving towards people spending more and more time online. Moving forward is possible if the online world begins to resemble the offline world we are used to. The deterrent is the same-the inability to own anything. Now that you can buy a piece of land in virtual reality, you know етеfor sure that no one will ever be able to take it away from you. You buy it, start giving lectures on floristry, for example, cover the whole building with flowers and advertising banners, and you will earn money from this. Thousands of people will stand there as if at a concert and listen to your performances. (Egor Abramov)

To better understand the application areas, you can visit the Web 3.0 programming framework website Thirdweb.com: NFT; NFT loot boxes; marketplaces; social and governance tokens, etc.

This theme is for HYIP; crypto-Twitter satisfied with the funny flash mob – “Here I am in Web 2.0, but in Web 3.0”. About unlikely that it is possible to say that “the revolutionary masses of Web 3.0 geeks cornered fattened IT giants”, which will soon turn off their servers and “sad leaves in the night to the sound of the Blues”. It is likely a “wild laboratory in which a variety of projects are foaming”, some of which will remain and result in something global. So far, a significant but still limited “geek audience” interacts with decentralized applications through MetaMask, Phantom, and other wallets. Within a few years, this audience may become much more widespread. Especially if people are offered new tools to do this, emphasizing simplicity and user-friendliness of the interface. (Daniil Shepovalov)

What is Web 3.0 for, and what opportunities will it provide for cryptocurrency investors? It is a new stage in Internet development, which will use blockchain technologies and other decentralization tools, such as the DAO. Also, Web 3.0 goes far beyond the Internet and thoroughly penetrates the real world. It attempts to change the financial system and the interaction principles between people, form new company rules, and build an entirely new world.

As for the practical application, the following points can distinguish:

• All data on the Network, including its content, will be tokenized;
• Apps applications will turn into dApps-decentralized applications;
• Web 3.0 assumes that all the company’s organizations, services, and applications will be decentralized autonomous organizations;
• Identity will be cross-platform. The user will not need to register every time. Also, thanks to identity and tokenization, any digital items can become cross-platform;
• Metaverses. It will be an upgrade of social networks from Web 2.0 using virtual reality technologies. (Nikita Kutsenko)

Many projects from the crypto industry are already representatives of Web 3.0. For example, these are decentralized exchanges that users themselves support. Thanks to them, users can create their means of exchange and NFTs. Metaverses allow users to purchase and sell digital real estate in games. In the future, people will have the opportunity to find themselves inside these universes using VR technologies. (Vladislav Akelyev)

New ways of interaction between people and devices, created thanks to the Internet of the future, integrated with NFT, DeFi, metaverses and cryptocurrencies, will attract new users and contribute to the development of the industry, the rapid adoption of new technologies and digital assets. Moreover, it opens up a lot of opportunities for investors.

The best way to invest in Web 3.0 is to buy shares or cryptocurrencies of companies associated with the development or implementation of the technology.

In this regard, it is worth noting a few good tokens:

• Polkadot (DOT) is a crowning project supported by the Web3 Foundation. The Polkadot platform has launched more than 350 applications and revolutionized blockchain technology in less than a year;

– Another project is Polygon (MATIC), built on Ethereum, designed to make the entire ETH network more scalable, faster, user-friendly, and more interoperable by connecting other blockchains. In addition, Polygon recently created a Decentralized Autonomous Organization (DAO) for the Web 3.0 space;

• Helium (HNT), known as the “People’s Network”, is a decentralized wireless network based on the Internet of Things (IoT). There is an opinion that Helium will destroy the 5G market and may lead to the displacement of all devices connected to Web2. 0. (Danatar Atadzhanov).

Weaknesses of Web 3.0.

But Web 3.0 has more than just its strengths. First, the transfer of information between servers may take longer than we would like. We are all used to one large server from an Internet service provider, so that the innovations may be a bit unusual. Technical support will also be a challenge. Now we can call the support service of our Internet service provider and complain to our hearts’ content, but with Web 3.0, this will not be possible. Most likely, you will need to implement separate protocols. It can potentially create additional difficulties.

Experts also spoke about the apparent shortcomings of Web 3.0:

You need to realize that WEB 3.0 is a powerful technology in users’ hands, implying both risks and advantages. Everything will depend on how we use this technology. (Denis Kurilchik, co-founder of CLS Analytics);

The main drawback of the technology is that it is still not widespread enough, and it isn’t easy to log in for a wide range of users. Few people used the Internet in the 80s and 90s, and it was not as convenient and helpful as it is today.

Another disadvantage of the technology is its tendency to centralize. Or rather, to the fact that the reins of government are concentrated in the hands of a small number of rich structures. The system is being rebuilt in some form, but it remains somehow controlled by the largest owners of capital. Of course, their degree of influence on end-users is significantly less than in the modern Internet. Still, complete decentralization and transfer of the Internet into the hands of users remains a pipe dream.

Also, the system is imperfect due to its newness, and many people don’t even understand how it works. Therefore, many scammers profit from the ignorance of people. Unfortunately, every time someone hacks another service and steals a large amount of cryptocurrency, Web 3.0 takes a step back. Fortunately, the pace of development of the system today is such that it manages to take another 100 steps forward. (Egor Abramov);

The disadvantages of Web 3.0 are instead the youth of the sphere (still quite natural products). Since this area has started to develop literally over the past year, еthere are still many disadvantages. Unfortunately, they are being fixed quickly and soon, and we will see the transition of the entire Internet from web 2.0 to Web 3.0. (Yusuf Ghairat);

And because of the novelty of the technology, there are a lot of scammers in this area. There are also critical vulnerabilities that lead to the disclosure of users’ data and sometimes to the loss of deposits if we talk about dubious exchanges or DeFi projects. (Nikita Kutsenko);

So far, most of the services in Web 3.0 are pretty cumbersome and not very user-friendly and also require higher qualifications. Like cryptocurrencies in general, the third web is in its infancy and requires a lot of mass adoption for its development. (Alexander Bespalov);

The main drawback of Web 3.0 and the blockchain, in particular, is its complexity for the average person to understand. However, as the crypto industry has proven, this flaw can eliminate overtime by explaining complex things in simple language.

Another drawback of Web 3.0 is the lack of specialists-developers, analysts, and managers. It is a new direction that requires new knowledge and will take time for professionals from other fields to adapt. (Vladislav Akelyev);

A clear disadvantage is the existence of large monopolies, which are engaged in Web 3.0 and metaverses (Facebook, Twitter, Reddit). Each of them pursues its interests. We are waiting for a severe struggle between them, and it is not yet clear how it will implement – second-growth disorder. Programmers create web 3.0 and metaverses. It is a human factor, and we are not immune from mistakes. Recent case-the hacking of a bridge between Solana and Ethereum, from which $250 million worth of cryptocurrencies were stolen-shows that not everything is so safe yet. But over time, the security system will evolve. (Mikhail Alyonushkin);

Unfortunately for any new technology, Web 3.0 has its drawbacks. The main fears are related to the uncontrolled flow of information, which can be dangerous for society. Modern parents worry about the lack of control over their children and possible hateful actions on the Network. The introduction of new technologies is associated with potential conflicts with previous decisions, the need to learn something new, and difficulties in adopting a new paradigm. But, as experience shows, the “childhood diseases” of new technologies are treated quite quickly. (Danatar Atadzhanov).

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