Since 2020, digital currencies have begun their establishment on the global market. Also, the blockchain, cryptocurrency, metaverse, and NFT products started developing actively. Along with these technological advances, there are a lot of discussions on Web 3.0 — the new generation of the internet. In 2021 about 3400 developers joined Web 3.0 projects. Furthermore, many funds and companies with estimated values above 100 million dollars invested their money. This article explores the main trends and predictions for 2022-2023.
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What is Web 3.0?
Put simply, Web 3.0 is a new generation of internet development based on decentralization. Many believe this network allows users to control and manage their own content and hide personal data. The Web 3.0 network will also be more accessible and secure than Web 2.0.
From 2010 to 2020, anyone could watch the active advances in machine learning, artificial intelligence, and blockchain. These terms and principles are fundamental for the internet of the future.
Web 3.0 terminology was officially laid down 15 years ago by the Netscape.com company. Jason Calacanis claimed that internet quality would be significantly better in the future. All resources will deliver only helpful information to the users, and the professionals will generate the content on dedicated platforms. He managed to explain the implementation platform, yet in 2022 it is evident that Web3 is the one. It is not a single platform, and it covers numerous industries.
Vladimir Popov, one of DAO Synergis cofounders, describes Web 3.0 as a multinetwork which includes web, IoT, mesh networks, and decentralized networks like IPFS or Bitcoin.
To his mind, it must be a module system, where each module is dependent on others yet is not obeying. For instance, if one element is disconnected, the network will continue to function since it is impossible to turn it off.
Web 1.0 appeared in 90th and people could share their content on websites, while the users could only search and use the information. Currently, we use Web 2.0, focusing on the user and increasing the info volumes. People can create and manage content; furthermore, they can contact other network participants through blogs, social networks, and similar platforms. The prime disadvantage of Web2 is strict centralization. Many users create content, yet Facebook, Google, etc., own it.
The centralization causes censorship, sharing of data with third parties, and active targeting. The distributed network and Web 3.0 can solve the issues above.
In Web3, the users will own 100% of their content; they will be able to monetize it and share data with the help of decentralized services. The most straightforward formula of the new-gen internet is read, create, own.
Large corporations govern the modern internet and can control any person’s idea and content. The conceptual idea of Web 3.0 is in the complete copyright and new system and economy creation.
Blockchain is necessary for Web 3.0, which eliminates the influence of people.
Gilles DC, a marketing and sales specialist, believes blockchain is crucial and will help exclude the information supply chain from a person to an intermediary. The blockchain is a decentralized digital ledger that stores information about who and what owns a network:
Any record refers to the former and builds an information chain that can’t be altered. Adding new information requires miners that use their hardware to store blockchain copies and verify transactions. Every process is done through computing. The more powerful the hardware, the bigger are chances to speed the data processing. The miners receive a share in cryptocurrency as a reward for their effort. The blockchain eliminates the need for the self-verification of records by users. The other network participant does this job.
- Ownership right;
- Medicine data.
Web 3.0 decentralized internet capabilities
Any author will own the copyright for their content on the future internet. No intermediaries will be required for trading assets on decentralized platforms, yet there will be fewer fees and rules. Here are the possible economic ideas:
In the early internet, no one could introduce changes to a website except the website owner. Today, people can create their own content, for instance, posts on Twitter or YouTube videos. However, all activity on these platforms is regulated, and the platforms automatically own the content.
- A user is a wallet.
- Users’ files are assets stored in their wallets.
- Any transaction is a typical transfer from one wallet to another.
On Twitter, a centralized platform, the company owns all posts, while in a decentralized environment, the authors will own their content.
A probable internet function mechanic is the following:
Smart contracts allow blockchain to automatically verify the trade terms and conditions by both wallets, which results in processing the transaction. The wallets can store any assets: money, audio, video, text documents, art pieces, etc.
In a decentralized network, everything is public since it is a transparent system that allows seeing all assets in a specific wallet. It’s just enough to know the address to get the information.
DeFi (Decentralized finance) can create a new economic system without intermediaries like banks. These services allow trading, investing, loaning, and crediting without third parties. The conditions can be coded in a smart contract which will become a decentralized autonomous organization.
- A person connects to a social network by adding their cryptocurrency address.
- After any post, the algorithms create a file and place it on a decentralized platform like IPFS.
- Along with step 2, an NFT token is minted and linked to the file. The token is posted on a social network’s blockchain and goes into the content creator’s wallet.
- The author gets complete copyright for the content and can sell it for a particular cryptocurrency, for example, ETH.
An example of a centralized and a decentralized system.
Some people don’t support Web3 since the technologies are:
The enthusiasts see something more prominent in Web3 than just cryptocurrency and money. They believe it will help create a world focused on people and their relations, which will positively impact business, technological advances, and private ideas. Web 1.0 and Web shared a similar vision, yet in the first case, Google became a monopoly, while in the second internet version, Facebook and YouTube shared the power. The development and efficiency of Web 3.0 directly depend on funds invested into the project.
- Expensive and imperfect.
- Difficult to understand for a regular user.
- Not eco-friendly since the transaction and miners require powerful hardware that can create blocks in a blockchain.
- Do not provide complete security and safety of personal data like Web 2.0.
- Focused on gaining income may turn the future internet into a large marketplace.
A hybrid model
There is an opinion that complete internet decentralization is a utopia. In fact, NFTs and metaverses are under control if taking particular cases. There may be a hybrid solution for Web 3.0. Waves Enterprise's marketing director thinks it is impossible to do the complete transfer since large corporations and funds will lose a monetization source. Furthermore, many countries are just not ready to anonymize internet users.
The hybrid model will consider a case when the content or asset owner will share their data for a particular reward. Currently, a transparent system, wallets, and authentication are the advantages cryptocurrency users receive.
Web 3.0 and metaverses
From 2021, metaverses are associated with Web 3.0. This started when Mark Zuckerberg claimed that Facebook initiated its way to becoming a metaverse that will combine various realities. After the Meta presentation, many large companies showed their metaverses:
Many believe metaverses will become a virtual world with its economy, life, and multiple offers. People will use VR sets to access the metaverse.
Metaverses and Web 3.0 are closely linked, yet they are different notions. Some metaverses are platforms for earning, living, meeting, etc. The others are technologies that can become networks where internal metaverse components will work.
- Epic Games;
Web 3.0 impact on the economic sector
Web 3.0 is not only a new phase of the Internet but also a strong influence on the economic sector. In the process of development, people will be able to notice a significant digitalization and decentralization of the economy. For example, there are digital services (subscriptions) on today's Internet. Still, with tokens and other digital assets, it is possible to purchase goods from established brands and companies, which is one of the main trends for 2023. The level of monopolization is decreasing even in finance.
The main difference between Web 3.0 and the current generation of the Internet is the difference in protocols; in today's realities, it is informational and will be economical. The new branch of development can give security and reliability to many solutions. First, it will concern the financial industries, their products, and others.
Web 3.0 eliminates the need for banks and other institutions to store or transfer funds and use them as "earnings" when it comes to deposits and other instruments with an interest rate. As a result, the development of private money and financial systems, which will not depend on the state and monetary policy, should intensify.
For Web 3.0, there is no need for consumers, but we need users who actively participate in the system's formation and get a decent profit for it. Of course, the overnight replacement of the Internet cannot be realized, so the transition to the new realities of life will take several years. Still, today there are already noticeable steps towards progress.
Main trends and opportunities for investors
Web 3.0 key advantage is offering income to anyone with the internet resource. Today and in 2023, many projects linked to Web 3.0 will develop, and it is crucial to study the sector to understand it and thus benefit and earn.
Web 3.0 is attractive for startups and investors, and in 2021 the investment in cryptocurrency projects was about 30 billion dollars. Many of those solutions are related to blockchain.
There are numerous niches for investment:
2022-2023 is the world of multi and cross mechanisms, so investing in interoperable projects is a sound idea. Distributed storage like Chia, Filecoin, Sia, Storj, operating systems, and machines like ICP, Urbit, and multi-blockchains like Cosmos and Polkadot fit this category.
- Business and processes digitalization.
- Distributed system creating.
- Multi blockchain operating.
- Any solution and projects related to tokenization.
- DAO and distributed networks have a massive potential too
For technical specialists
Developers will be in demand in the Web 3.0 environment. According to Electric Capital statistics, large communities like Ethereum, Polkadot, Cosmos, Solana, etc., hire about 250 people monthly.
The specialists must understand the main blockchain principles to do their job efficiently. Furthermore, they must know programming languages like C++, Rust, and Solidity. There will be a need for even more developers to cover all company’s needs. However, it will not only concern developers but also sales, marketing, etc., specialists.
- Developing the community with new decentralized applications, wallets, and other pieces will help the platform grow.
- Protocol development.
For internet users
Content creators will have a lot of jobs and no imitations. They can create articles, photos, videos, audio, etc. Any effort will have monetization solutions via NFT and tokens. Furthermore, any content can be marked as a unique piece.
There will be a fee for reading a viewing content. Play-to-earn is also a popular sector that allows digital rewards for simple tasks; the prize can be exchanged for real value.
For instance, in 2021, the Axie Infinity game was viral. It has become a good source of income for Filipinos. The approximate average income is $400 per month for breeding and selling creatures within the game.
There are several options for investing in Web 3.0. Everyone can choose the one that is more convenient for them. The most popular trend is blockchain project tokens. In 2021, this segment showed an average growth of 244%, and the speed of its development was rated top 2. There are many popular assets in the cryptocurrency environment, which will be discussed later. All projects are based on automated transactions and smart contracts and are implemented by platforms like Ethereum, Cardano, Solana, and others.
Other investment options include:
Of course, there are drawbacks and risks, as with any novelty. The main fear is uncontrolled data flow, which can cause danger to society itself. No one can guarantee investors that in 5-10 years, land in the meta-universe or NFT will be worth 100 times more. Some believe this is just another bubble that will burst soon, but most likely, the growth of this market will not be long in the coming.
- NFT (non-fungible tokens). The upside of investing in this sector is the potential for development. The technology has gone beyond just collecting cards.
- Metaverses - a virtual world with the ability to buy assets and earn money. Real business meetings, jobs, concerts, and other events can be within such a universe. Users can purchase land, build houses, rent offices, or advertise. In the past year, land has risen 10-fold in price, and this trend will live on in the future because institutional investors and large global corporations are investing in it.
- Shares of companies are the most conservative method for investing. It is possible to invest in corporations that are engaged in the creation of metaworlds or are involved in developing digital worlds. Among the leaders are Meta, Microsoft, NVIDIA, and Sony.