A Basic Introduction to Web3

In online circles, you may have heard the term Web3 crop up now and again. If you don’t know what it is, you are not alone. Around 70% of people have no idea what the term means, according to a poll by Harvard Business Review. Yet if you work on the internet, you may be wondering what opportunities Web3 will bring if and when it comes. We give a crash course in Web3 in the article below. 

What Is Web3? 

Web1 was the first wave of the internet. You may know it as the internet used between 1990 and 2000, mainly used for chatting and reading information. However, its open protocols were quite unsafe, and as sensitive information began to be transferred, a more secure version was needed. In the mid-2000s, major social networks and search engines like Google began to take hold, monetizing the internet. This was known as Web2.

Web3 is the next generation of the internet, in effect, its evolution. Built on blockchain technology, it is decentralized and thus controlled by those who use it. A further large part of this is the use of tokenization to dictate its economics. Web3 is essentially the code on which the internet is built, but a more advanced one than that which you are currently using. 
 
The internet, in its Web2 version, is currently owned by a large group of corporations. However, Web3 will be owned by community-based groups. Since 2018, sentiment around Web3 has increased dramatically. 

What Sectors Currently Use Web3?

A Basic Introduction to Web3 3

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The financial services sector is one area in which Web3 has been adopted and shows lots of promise. It has seen a huge increase in the use of decentralized financial exchanges. There have even been days when this has reached $10 billion in transaction volume. Web3 has also begun to transform business, allowing more efficient supply chains to increase efficiency. 

Certain entertainment sectors have already been forging ahead with Web3, particularly gaming. One of the most forward-thinking industries, the iGaming sector, has been growing for some time. In its standard operations, major brands have offered matched deposits using offers like the PokerStars bonus code. Combining these with tabletop games that have advanced graphics and an experience that is as close to the casino table as possible, they have not only gained new customers but also increased the popularity of poker. Web3 has been used to great effect in this sector so far, but it has been limited to crypto casinos. Its potential for tokenization makes it attractive to poker, the wider iGaming sector, and online gaming in general. 

What Are the Main Components of Web3?

The main component of Web3 is the blockchain. When data is added to the network, a new block is created, this means it does not have a single control point, making it decentralized. Anyone can use it, and no one can control it. 

However, for business and traditional finance, the second factor, a smart contract, is probably the most attractive proposition. This is a digital contract automatically executed when conditions are met, for example, when payments are made or information is provided. Finally, digital assets and tokens are also a key element. These may be cryptocurrencies, stablecoins, or even NFT artworks like those available on platforms such as Opensea. 

Web3 is undoubtedly on its way. It may face some opposition from major companies that run the internet, but it is inevitable. If cryptocurrency and the blockchain are more integrated into traditional finance, then Web3 could be as much a part of your daily life as Web2 is now.