The term Web3 or Web3.0 has gained immense popularity over the past year and is now on the lips of every tech enthusiast, entrepreneur, business leader, and the entire tech world. Web3 is not only gaining traction but also creating world-changing opportunities to make a better version of the Internet for all. In this blog, we will see how web3 is going to change the world.

What is web3?

Before jumping on how web3 is going to change the world, let's first understand what is web3 and why it’s called web3.

Web3 is another iteration of the Internet (the third iteration) that runs on a "decentralized online ecosystem based on blockchain". In the early days of the Internet between 1990-2004 when there were mainly static websites where users could read just about something, there was almost zero interaction between users and content producers, calling that phase of the Internet read-only web or Web1.0.

In 2004 another iteration of the internet came where users not only can read but were also able to write, create and publish their content on the platforms that were provided by companies. In this phase the content producers and users can interact, this is called read-write web or web2.0. 

Web3 is taking one step ahead where users can read, write and own the things that they will create on the internet. Web3 is providing a way to participate on the internet.

How web3 is going to change the world?

There are many areas like Defi, DAOs, NFTs, Metaverse, etc... which are part of the web3 ecosystem and all helping it to grow rapidly. New areas will be added as time goes by but so far all the areas where web 3 is changing the world can be classified mainly in social and economic areas.

Economically

There is no consensus on whether the economic impact of Web3 will be positive, negative, or somewhat mixed. But if take it in a positive direction, the Web3 ecosystem has the potential to take the country's economy to the moon. According to reports, Web3 will assist India in adding $1.1 trillion to its GDP over the course of the next 11 years.

Decentralised Autonomous Organisations (DAOs)

DAOs are self-managed organisations that work on some set of rules implemented by smart contracts. Decentralised autonomous organisations are changing the way we think about the way organisations work and how they might work in the future. Unlike traditional centralised organisations where executives and large shareholders can often maintain a high degree of authority, DAOs will help make organisational decisions jointly and independently through a process of decentralised governance.

The specific organisational structure of a DAO is likely to focus on community rather than profit only and may also offer a socially conscious structure; one was intended to promote the prosperity of all people, rather than focusing only on the needs of a small number of powerful shareholders. This can have an impact on how firms operate as well as how society addresses current social issues.

Decentralised Finance (DeFi)

Defi is also a part of web3, It is a novel idea built on the utilisation of decentralised applications for financial services. The main advantage of Defi is that it works on the underlying blockchain technology. Peer-to-peer digital transactions can be facilitated thanks to Defi's payment blockchain. Defi is probably one of the biggest Web 3 use cases showing a credible increase in cryptocurrency usage.

• Accessibility
• Accountability and Transparency in governance
• Permissionless
• Encryption-based privacy and security

These are some features that cause to gain popularity of DeFi. Defi has a bright future, the global decentralized finance market size is expected to reach USD 13.61 billion in 2022.

Socially

Social networks play a very important role in our daily lives. It has the potential to alter how we interact, communicate, and build communities. 

Web 3.0 fundamentally will alter the way social media applications are created by web development companies with new web3 development companies. Just like web2 help to increase the interaction between users and content producers, similarly, web3 will also help in social interactivity one step ahead with the help of the following tools.

Metaverse and Gaming

Metaverse is an important component of web3 that help to interact in the virtual world where the majority of social and collaborative interactions between users take place using 3D avatars. Instead of viewing it on your computer displays, you will be part of the internet. Many web2 companies like Meta, Microsoft, etc… have entered in web3 space and are building their metaverse. Several companies are building gaming metaverses to take the gaming experience to the next level with the help of Web3.

Conclusion

This iteration of the Internet is where users can fully control their data and privacy, while businesses are allowed (or not) access to it. Blockchain will power it all. Web 3.0 will thus accelerate the ethical and open use of user information, from optimised search results to the application of cross-platform development tools and 3D graphics. The Internet will grow more interactive and immersive.

While many companies are still investigating the possibilities, several are already implementing Web3 technology to stay ahead of the curve. Soon, there will be a new Internet! Let's enthusiastically welcome Web 3.0.