Last week, FADO Go attended the event of ETH Vietnam where FADO Go had the opportunity to listen to a panel talk with the topic: “The future of Web3 Infrastructure’’. This is one of the most interesting topic at the event. In this article, let FADO Go examine the topic to give the audience knowledge relating to Web3.
The internet has fundamentally changed society, people, and economics. It has ushered in the digital age by serving as the essential platform that makes applications, networks, and services possible. It is a tool for enabling unprecedented knowledge sharing.
The Web has changed over time and will keep doing so. The next era of the Internet, called “Web3,” is still in its early stages, but it’s increasingly clear what it will look like. As Web3 evolves, the way brands behave and consume products inevitably will certainly change.
What is Web3?
Web1 was the early days of the Internet. There were many content consumers, but few creators. The website was static and interestingly, advertising was forbidden. Digital marketing didn’t exist at the time, so that is why people still relied on print, radio, TV and other traditional media to get messages across. In this era, community building mostly still takes place in the real world. The first form of social media existed, but not on the scale it is today.
Web2 is the Internet as people most know it and still think about it today. The world has witnessed an explosion of the Internet. Much of this growth is due to social media continuing to provide businesses and consumers with new platforms to communicate, connect, and tell stories. This type of exchange has also changed the way people think about community growth. People no longer just have friends at work, school, or in the real world; they have them on Facebook, LinkedIn, etc. Today, the community consists of strangers from all over the world that they have never met but have built relationships online.
Web3 is understood as the third generation of web where users can participate in the administration and operation of web protocols in a decentralized manner, not just users or customers of the big guys like in Web2. Web3 is a large blockchain application environment where fields such as Defi (decentralized finance), NFT (non-fungible token), virtual universe (metaverse) or DAO (decentralized autonomous organization) have strong development conditions.
The future of Web3
Thanks to Web3, many new business models and industries have begun to appear. One of the most successful models today is DeFi, a decentralized financial network, with the application of blockchain technology to eliminate the third party in the transaction that has made the crypto market successful today. In just one year from November 2020 to November 2021, the capitalization of the crypto market has grown from $450 billion to over $3 trillion, a tremendous growth rate. (Statista).
The crypto market is the only first application to be exploited from Web3, which means that in the future there will be many breakthroughs and many practical applications thanks to Web3 as well as blockchain technology.
Many people also believe that in the distant future, Web3 will overthrow Web2 and the monopoly of today’s big technology companies like Google and Facebook. However, this is very unlikely, because most of the content people search today is based on Web 2.0 platforms. Moreover, most of the current infrastructure runs Web 2.0, in order to change, companies will need a lot of time, cost, and human resources to upgrade and innovate. Jack Dorsey (Twitter CEO) shared that the ambition to decentralize social networks can even take many years and decades. And technology companies themselves also face a difficult problem to balance between being stable and innovative.
Benefits of decentralized infrastructure over centralized services
- Control
Users of a decentralized infrastructure platform have full control over their interactions on the blockchain.
2. Composability
A system with high synergy, enabled by a decentralized infrastructure provides components that can be selected and assembled in a variety of combinations to meet specific user requirements.
3. Immutability
The data structure of blockchain technology is just the backend. This means that there is no chance for anyone to modify or change the data as it is stored. Depending on the user’s needs, this can be an advantage or a disadvantage.
4. Security
Decentralized infrastructure is less prone to hacks and thus less prone to data leaks than centralized services.
5. Non-stop Operation
Web3 services are always up and operating since the system is operated by network nodes around the world instead of focusing on one server.
Read more about: Blockchain and Smart Contracts in eCommerce
Disadvantages of Web3
- Slow processing speed
Having to run a large number of validator nodes slows down the speed of Web3.
2. New and complicated technology
In general, blockchain technology is still quite unfamiliar to many people, users need to learn new knowledge, download new software and manipulate many complex steps. This is a barrier and it will take time to reach widespread popularity
3. Accessibility
Web 3 applications are mostly newly built rather than integrated with popular and familiar Web 2.0 applications, reducing accessibility to users when they are too familiar and loyal back to the old concepts.
4. Junk data overflows
Data stored on the blockchain will not be erased, which causes more and more junk data to be stored on the network, making the data processing speed longer.
5. High cost
The cost to develop a project is very expensive, DApps often have difficulty putting code on the blockchain because of high fees or the cost of auditing is also very expensive.
We cannot deny that the birth of Web3 will create a new breakthrough, creating a new era. Industries and businesses will rely on Web 3 to create things far beyond the imagination of users before. Cryptocurrency is the first example in the application of Blockchain technology, the future of Web3 will be developed with many such applications. The potential of Web3 in the future will be huge, even beyond what Web 2.0 did.
Web 3.0 is ushering in an era in which computer users can interact with data through a peer-to-peer network without the need for an intermediary. This foundation places solidity in the personal element at the heart. In addition, high security will be the lever for an open and decentralized Internet platform.
