Web 3.0, in simple terms, is the third generation of the internet. It is a blockchain-based web that is more accessible, secure, private, and linked.
Blockchain technology in Web 3.0 helps achieve genuine decentralization. Instead of relying on server-based databases, a decentralized network connects gadgets. Since individuals will be the sole proprietors of their data, they will not need to store it on centralized servers. It is up to them to decide what to do with it.
Web 3.0 and Decentralization
Web 3.0 marks the departure from a centralized, monopolistic system to a decentralized network of blockchains. It will, therefore, seize control from a few colossal Web 2.0 corporations and return it to the individuals.
Many builders and creators will employ next-generation tools, establish self-governing communities, and participate in the new economy. It will lead to massive platform rent reductions and a shift away from the unsustainable economic model of monetizing user-generated data through advertising.
Advantages of Web 3.0
- Privacy and security will take precedence over control and monitoring in Web 3.0. It will allow individuals to specify which information should be made public and which private.
- Web 3.0 will be more secure than previous internet versions, thanks to the decentralized nature of blockchain technology. Hackers will struggle to acquire network access.
- Web 3.0 will discourage the use of centralized networks.
- Rather than relying on a single gadget, individuals can obtain the same information on multiple devices.
- Developers will find it simple to create new apps that will function on all smart devices.
- Since there is no centralized authority and hence no single point of failure, distributed systems are less prone to experience service interruptions. Even if one node fails, the others continue to function.
- Anyone is welcome to participate and assist. Because code does not discriminate, all users can offer and access services.
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India and Web 3.0
As a result of China's departure from the crypto arena, India now has the largest internationally linked digital populous. Millions of Indians will be online during the next decade, and India will see the trade worth trillions of dollars through digital channels.
Due to the expanse of the country, it can push any new paradigm into general adoption.
Over the next several years, new business models and decentralized apps will emerge in India. India has a comprehensive digital infrastructure strategy and a thriving financial business, which will help reap the benefits of Web 3.0.
Web 3.0 will build a decentralized and equitable internet where users have ownership over their data. Here, there is no need for intermediaries. In peer-to-peer (seller-to-buyer) transactions, it eliminates the middleman.
Moreover, it promotes decentralization and transparency as its guiding philosophy is “Decentralized Autonomous Organization” (DAO). Finally, there is no need for a central authority to authenticate or validate transactions.
FAQs on Web 3.0
Q.1. How is Web 3.0 different from the current version of the internet?
In contrast to the existing structure, which allows IT behemoths to dominate platforms, Web 3.0 will give individuals control over platforms and applications.
Q.2. Who coined the term Web 3.0?
Gavin Wood, the founder of Ethereum, a blockchain technology startup, proposed the term “Web 3.0” in 2014.
Q.3. Why is Web 3.0 necessary?
A limited number of firms, such as Google, hold or manage a significant percentage of the internet data and traffic in Web 2.0. As a result, there are concerns about data privacy, security, and abuse. Moreover, monopoly twisted the primary function of the internet- empowerment. This is why Web 3.0 is necessary.
Q.4. What is the main challenge faced by Web 3.0 in India?
The major challenge faced by Web 3.0 in India is regulatory uncertainty. Also, in India, revenue generated from virtual assets is subject to a 30% tax. Though the government is planning on establishing a Central Bank Digital Currency (CBDC), a formal regulation outlining India’s stance on cryptocurrencies is in the works.
Q.5. What is the scope of Web 3.0 in the public sector?
In the future, democratic institutions might use Web 3.0 and blockchain technology to uphold transparency and public accountability. For instance, recently, the pass-outs from Delhi University received digital degrees on a blockchain-managed platform.