What Is Web3 And How It Works?

What Is Web3 And How It Works  -  WebNewsOrbit

With Web3, also called the semantic web, we mean a new era where the network is based on the blockchain, not to be confused with Web 3.0: this is how it works

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The explosion of cryptocurrencies has led many people to discover all the advantages of the blockchain : a set of technologies capable of forever changing the world of financial transactions.

The blockchain also features many applications that have nothing to do with online trading . For example, it is involved in building a new hierarchy-free network .

Not surprisingly, the blockchain , together with peer-to-peer networks and I2P software, is at the basis of the so-called Web3: an idea of ​​the Internet in the name of decentralization, anonymity and security.

Web3 is not to be confused with Web 3.0 . The latter represents the evolution of the previous Web 1.0 and Web 2.0 and aims at the creation of semantically linked contents.

Web 3.0 wants to improve the existing network, making it more and more connected, engaging and interactive. The Web3 instead wants to reinvent the Internet, profoundly changing the assumptions that, to date, give life to pages, sites and platforms. 

The Web3 can be considered a revolution of the network, which could bring several advantages for the user. At the same time, however, there are risk factors to keep in mind: possible problems related both to the experience of the individual and to global energy consumption.

Difference between Web3 and Web 3.0

Difference between Web3 and Web 3.0 -  WebNewsOrbit

Before going into the merits of Web3, we need to take a small step back. We have been hearing about Web 3.0 for years and the risk is clearly that of confusing the two terms.

We will therefore begin by clarifying that Web3 and Web 3.0 are two distinct concepts . They have different histories, different theorists and, above all, they pursue rather distant goals.

Web 3.0 is theorized starting from 2006 , as a direct consequence of the previous Web 1.0 and Web 2.0. The wording Web 1.0 identifies the first websites ever, characterized by static content.

In Web 1.0 the Internet pages could only be used by the user in a passive manner: the visitor therefore did not have any kind of possibility of interacting with the content. 

With Web 2.0, a new idea of ​​the dynamic Internet was established , which allowed users to actively participate in the creation of content. The period of Web 2.0 was that of "User Generated Content", social networks, podcasts, constantly updated Wikipedia pages.

This brings us to  Web 3.0 . The idea is that of a network in which pages and contents will be increasingly linked to each other through the use of keywords.

Web 3.0, also called the semantic web, refers to a network in which, also thanks to artificial intelligence, people will interact better and will be hyper-connected.

It aims to exploit the most different technologies and paradigms: one above all artificial intelligence . The declared goal is to arrive at the so-called “read-write-interact web”: a network in which each user will not just read or write on the pages, but in which it will be possible to interact in a much more free and spontaneous way.

What is the Web3

What is Web3 -  WebNewsOrbit

The Web3 is a recent development of the concept of the Internet . A new idea of ​​a totally decentralized web , based on new protocols and, above all, on blockchain technology .

According to some theories, Web3 is the actualization of Web 3.0. In fact, the two concepts are connected to each other, but still have different meanings. Web 3.0 imagines a network of ever more precise metadata, able to specify the semantic context of each single page .

The will behind the Web3 is to radically change the current functioning of the network , both as regards the use of contents and as regards the hierarchical relationships that underlie the Internet.

To date, the structure of the Internet sees a clear distinction between client and server : two terms that are probably unknown, or at least unclear, to anyone who does not have computer skills of a certain level.

Web3 would make it possible to change the way the Internet works, eliminating the difference between client and server.

The client is the program that puts a computer in the condition to interact through the network : this is the case, for example, of certain browsers . The term client is also often used to refer to the device hosting such software. In other words, it is a user's computer.

The server , on the other hand, is a computer that hosts network services and resources . It is a device capable of storing thousands of information relating to Internet pages. Servers are the managers and keepers of sensitive data and, from a certain point of view, have a hierarchically superior position compared to that of clients .

The Web3 wants to radically change this hierarchy in which only a part holds the information. And precisely the blockchain would allow to completely revolutionize the criterion according to which data is managed.

The blockchain  requires information to be stored in multiple copies and distributed within a peer-to-peer computer network . This set of technologies could therefore break away from the simple role of cryptocurrency database , to become the foundation on which a new network will be built.

What is the blockchain

What is the blockchain -  WebNewsOrbit

As previously mentioned, the word blockchain refers to many different technologies that have made it possible to create new digital registers .

Not surprisingly, the digital ledgers of the blockchain are organized precisely in blocks concatenated with each other. Each block contains specific information and is linked to the previous and the next.

The first blockchain idea was introduced in 2008 by an unknown author even today. Behind the pseudonym Satoshi Nakamoto could hide a man, a woman or even a team made up of several people.

The blockchain was born with the aim of hosting Bitcoin , one of the most famous cryptocurrencies in history, always created by the same mysterious Nakamoto.

Since then, the blockchain has remained almost indissolubly linked to cryptocurrencies. More precisely, it was used to create peer-to-peer databases capable of containing shared and protected information.

One of the most important features of the blockchain is security. In this sense, it should be considered that the information contained in the register blocks cannot be erased and cannot be changed.

Intervening on a single block would irreparably damage the entire chain . This means that, even in the event of human error, there is no turning back. At the most, new information can be recorded in a new block, which will correct or supplement the previous one.

Possible applications of the blockchain

Possible applications of the blockchain -  WebNewsOrbit

To date, the blockchain is mainly used as a database for cryptocurrencies such as the famous Bitcoin. These technologies allow you to create secure and shared transaction logs, which, thanks to encryption, are accessible only to a certain number of members.

That said, the blockchain lends itself to many other applications. On the one hand, there are all those sectors that could benefit from a system capable of verifying and protecting financial transactions.

In this sense, the blockchain could be married to the world of banks , but also to that of the companies operating in the payments and money transfer sectors .

The block chain is also based on a system of continuous verification of the information present. Each new block reinforces and confirms the information contained in the previous ones.

This assumption helps to understand how useful it could be to use the blockchain for all those systems that provide for the registration or circulation of sensitive data and information .

The blockchain can be used whenever you are faced with the transfer of digital goods or information.

The system could be very useful in the academic field and for the deposit of certificates , degrees and diplomas, but also for eventual elections because it would allow to keep and legitimize votes from all over the world.

And, again, think of public administration, health and all those sectors that increasingly need a rapid and protected circulation of data . Not surprisingly, there is often a tendency to simplify the matter, asserting that the blockchain could prove to be decisive whenever it is necessary to transfer information from one computer to another.

Finally, the blockchain carries with it implications that go far beyond its possible practical uses. Talking about shared registers, block chains and new data verification systems leads us to consider a broad topic such as that of Defi.

The acronym Defi stands for “Decentralized Finance”, born with the aim of creating a new financial ecosystem , in which protocols eliminate the need for hierarchies.

Today users, to carry out transactions, almost always need external figures , hierarchically superior: this is the case of banks, exchanges , brokers and so on. Thanks to the blockchain it is theoretically possible to create new independent platforms .

Virtual spaces built on free and open source I2P software, which would be populated by communities of totally autonomous and self-regulated users. In the case of Defi financial transactions , the power of the individual user derives only from the amount of cryptocurrency in his possession.

Web applications and protocols 3

Web applications and protocols 3 -  WebNewsOrbit

Thus we return to Web3: another “world” that aims to exploit the blockchain to establish free and, at the same time, secure platforms. However, the block chain is only one of the protocols that could allow the creation of so-called “decentralized applications”.

Decentralized applications are those apps that do not run only on the computer of the user or company that releases them. Instead, they are distributed over a peer-to-peer computer network . They do not necessarily need the blockchain and are already much more famous and widespread than one might imagine. Think of uTorrent .

The difference between the “old generation” decentralized applications and those of the Web3 lies precisely in the use of block chains. A good example of this is Ethereum : one of the most popular cryptocurrencies of the moment.

Ethereum is more like a crypto network than just a digital currency . A complex universe, which allows you to buy, sell or exchange tokens , but also to develop many other operations : from the registration of intellectual property to the signing of smart contracts, through the creation of crowdfunding campaigns .

A fundamental aspect of Ethereum is that it uses almost entirely open source code: open code, which can be inspected by all users with skills and good will.

Decentralized Web3 applications are based on the blockchain, but take advantage of many different protocols.

Not surprisingly, when we talk about Web3 and decentralized applications, we often end up talking about I2P: an acronym that refers to the world of free software, to be used with the aim of creating an anonymous network.

On the other hand, until recently, the I2P software was also called the “Invisible Internet Project”. The idea behind it, without getting too technical, was to allow the circulation of data protected by encryption.

The applications of the I2P software are obviously manifold: they range from "tunnel" applications designed to communicate anonymously, to Bittorent type protocols.

To stay on the subject of protocols, there are several that could be useful, if not even necessary, for the creation of the Web3. Imagine, for example, that you want to create a Facebook-like application, but totally decentralized.

In this case, solutions such as Filecoin, Storj, Sia or IPFS should be used, in order to create a distributed file archive. After that, a token could be used in such a way as to incentivize the different nodes of the network to share storage space .

In this way, the operation of many cryptocurrencies would be replicated , which reward users ready to make their computer available with proprietary tokens.

The Web3 is a system full of advantages

Web3 is a system full of advantages (cc elastos.info) -  WebNewsOrbit
copyright: elastos.info

To summarize, and perhaps simplify a bit, it can be said that the main advantages of decentralized Web3 applications are: 

  1. Decentralization, 
  2. Security, 
  3. Anonymity.

Decentralization provides, from a technical point of view, the freedom to support central servers . This means that the actual functioning of decentralized Web3 applications does not depend on a single system. 

On the contrary, their operation is always distributed over several nodes, thanks to a peer-to-peer computer network . This assumption makes this kind of applications much more performing, as well as much more resilient in case of malfunction or external hacker attack. 

This leads to security, understood not only as the ability to resist bugs, attacks or censorships. The blockchain protects the information contained within its digital ledgers through encryption.

Cryptography exploits various techniques and technologies designed to hide, but also to protect, goods and messages of various kinds. The data protected by encryption is practically inaccessible to anyone who does not have the correct access keys. 

At this point, it is then necessary to reiterate that the information present in the blockchain is not transferred to external servers or computers . On the contrary, they remain always and in any case in the availability of their owners.

However, the typical cryptography of the blockchain is not limited to guaranteeing the security of information. It also plays a decisive role in defining the anonymity of all users .

In fact, it should be considered that decentralized Web3 applications do not include the classic combination of a username and a password: a system that has shown several flaws over the years.

Users of the so-called "dApps" are associated anonymously to a wallet . The wallet, in turn, is a further application that contains a user's address in the blockchain and his cryptographic keys.

Cryptographic keys distinguish between public key and private key. The public key is the one that allows transactions to be concluded: it is an alphanumeric code which, from a certain point of view, resembles those typical of current accounts.

The private key, on the other hand, is the one that allows the user to enter the blockchain . As the name suggests, the private key should never be shared with anyone. 

Web3: what are the risks to avoid

Web3 what are the risks to avoid -  WebNewsOrbit

So far we have seen how Web3 and dApps bring significant benefits to the user. The technologies on which they are based take full advantage of decentralization to guarantee an almost unprecedented level of security and anonymity. 

At the same time, however, it is important to underline that the Web3 also has risk factors : elements to keep in mind especially in this phase of constant evolution of the project.

Indeed, according to some users, a new Internet built entirely on blockchain and peer-to-peer networks would be very dangerous. Hence, real boycott campaigns were born. One of the most famous is “ Keep the Web free, say no to Web3 ”.

According to this school of thought, developing fully decentralized applications could harm users and expose them to a greater risk of scams.

In this sense, think of the idea of ​​a Web3 social network . The risk, some argue, is the creation of an information asymmetry problem where the end user would have far less information than promised.

From this point of view it is impossible not to mention at least the opinion of Jack Dorsey , the famous founder of Twitter , who, among other things, is a firm supporter of cryptocurrencies and the blockchain .

Well, Dorsey himself has repeatedly said that the Web3, as it is presented, risks becoming a new centralized structure . A space where the holders of power and information will simply have a different name. 

That said, the security of users and the effective elimination of hierarchies are, after all, relative risks, shared only by one part of the network. To date, the biggest problem with Web3 and decentralized applications is another.

A new Internet built on the blockchain risks having enormous repercussions on the environment . This kind of technology requires an impressive computing power and, consequently, a gigantic consumption of electricity .

Just remember that the mining of a single cryptocurrency, in some cases, requires the help of entire dedicated power plants. This assumption helps to imagine how much energy it could take to keep a global Web3 up and running .

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