What is Web 3.0?

Web 3.0 is the internet’s third version that aims to deliver a more personalized and faster user experience by interconnecting data in a decentralized way. Now that the official definition is out of the way, we can get down into the details of how Web3 (its alternative moniker) plans to revolutionize the world.

How Web 3.0 Works

If you ask an engineer or a programmer, they will tell you that Web 3.0 is based on the semantic web, machine learning, and artificial intelligence. They’ll likely also tell you that it relies on the blockchain security system to keep users’ information secure and safe.

But, understanding the core of what this technology represents requires a more straightforward answer for those who aren’t tech-savvy. Therefore, the semantic web (more on this in a bit) was designed to understand data. More specifically, the idea is to allow the internet to interpret both the concept and the context of data. Why? Because when a user searches for an answer, Web 3.0 can deliver the most relevant and accurate result.

What Makes Web 3.0 So Special

To answer this question, we must take a trip down memory lane through the history of the internet by observing previous versions (Web 1.0 and Web 2.0) more closely. Without getting too technical, here is the most straightforward overview of the internet’s timeline:

  • Web 1.0 (1989-2005)
  • Web 2.0 (1999-2012)
  • Web 3.0 (2006-ongoing)

The first internet (Web 1.0) to exist was known as a read-only web, meaning users could only read the information written on various websites. Then came Web 2.0, which addressed its predecessor’s most significant flaw and became known as a read-write web (besides reading, users can also write content on applications and websites). 

Web 3.0 became known as a read-write-interact web. Since it is powered by artificial intelligence, this third internet iteration allows users to interact with content on websites and apps, including 3D graphics.

The Importance of Interacting With Data

The defining characteristics of Web 3.0 include openness, decentralization, and excellent user utility. Here’s where it gets tricky: what makes Web 3.0 so much better than the existing Web 2.0 when it comes to user utility? This is a valid question.

As mentioned above, the idea behind the semantic web is to allow the internet not only to understand and interpret the concept of data but also its context. At the moment, big companies like Microsoft, Facebook, Google, Amazon, and others are earning massive profits from user data. 

In other words, big tech firms are exploiting people by having them give away their valuable data with little to no compensation while profiting from it. However, Web 3.0 aims to allow people to receive compensation for their time spent online and their data.

If they so wish, users will be able to retain ownership and data privacy and still sell their own data to advertisers. On top of that, the advanced technology of Web 3.0 will make it possible for apps and websites to use this data more meaningfully and customize the information for each user.

Consequently, the web’s third generation will allow humans to interact with websites and machines as if they were communicating with other human beings. 

The Connection Between Web 3.0 & Blockchain/Cryptocurrency

The founding blocks of cryptocurrency technology and blockchain are decentralized protocols. However, Web 3.0 will also operate using these protocols, meaning that users are likely to see a co-dependency and interconnection between these technologies. 

In other words, these technologies will become automated, interoperable, and seamlessly integrated through smart contracts. Consequently, they will enable companies to reinvent their business models and operations (current DeFi protocols are only the beginning).

Disclaimer: For information purposes only. Not investment or financial advice. Seek professional advice. Digital assets involve risk. Do your own research.

Essence of Crypto. Nothing else.

Latest lessons in your inbox every week.


Don’t miss the new CEX.IO University content.

Subscribe to CEX.IO University updates, and receive our newsletter packed with useful guides and tips every week.