Web 3.0 Companies & Their Place
- Web 3.0, Internet, Emerging Technologies, Cryptocurrency, NFT, Metaverse, Blockchain
Web 3.0 is what some people are calling the future of the internet, but how many people really understand what it is and how it will change the world wide web as we know it?
What is different about Web 3.0?
Web 1.0 is the version of static websites for consumers to find information, 1-way.
Web 2.0 introduced 2-way interaction between hosts and visitors. However, this is centralised and the problem many people have with this model is that the power and control lies in powerful tech companies, and in some cases, governments. This is due to data being collected from these major organisations, leading to the longstanding debate of privacy and security.
Web 3.0 is somewhat similar in that it promotes interaction and engagement, except that it is decentralised, supposedly leaving the power in the hands of individuals - the users of the web. This leads to increased privacy to the individual as the data does not belong to any single entity.
Perception of Web 3.0
A recent report by NRG shows only 13% of consumers think they know what Web 3.0 is, and 54% have never heard the term at all.
When speaking to people who think they know what Web 3.0 is, it's easy to group them into technical and non-technical people. The technical people may speak more of the blockchain, which is an important block (pun intended) of Web 3.0, while the non-technical people will speak more of the more accessible and covered terms such as cryptocurrencies and NFTs.
Cryptocurrencies and NFTs have risen in popularity ever since the meteoric rise of Bitcoin and Ether. People now use them as an investment product and they have since become an important part of the financial world.
Furthermore, Facebook, probably the biggest social media in the world, has recently changed their company name to META, which is a big move into the metaverse.
What some prominent figures say
Public figures have talked about Web 3.0 on various platforms such as Twitter. Here you see Tesla & SpaceX CEO Elon Musk as well as Twitter co-founder Jack Dorsey tweeting their thoughts.
Bear in mind these are tweets and opinions may change over time - so take it with a pinch of salt.
Other than getting people to understand Web 3.0, challenges are also present in the technical aspect.
A widely discussed topic is the scalability issue of blockchains. A blockchain works by storing a database in blocks, distributed across nodes of a computer network. As the number of nodes in the network grows, and the number of transactions generated by apps on the blockchain increases, verification time and computing power requirements go up as well. This in turn can inflate transaction costs on the network, and even create a surge in energy consumption.
Digital security since the beginning of the internet has always been threatened by hackers, Web 3.0 is no different. Hackers are able to manipulate loopholes in the coding to perform malicious acts, but what may make it worse is that there aren't enough security specialists familiar with Web 3.0 and its undefined standards.
Web 3.0 Companies Need To Solidify Their Place
Overcoming these challenges are tough, but that's how great companies last. With business solutions and technologies being judged by the green standard, the pressure is on to ensure that energy consumption is kept lower, while keeping transaction speeds fast.
Web 3.0 companies need to think about creating value that customers can understand and appreciate. With the success of play-to-earn game Axie Infinity, more game studios are springing up with their own spin of play-to-earn games. That's one way companies are creating value for their customers, with the help of NFTs and cryptocurrencies.
Lastly, Web 3.0 is loosely regulated today. But as the number of applications grow, authorities around the world will start to implement stricter regulations. Companies must be quick to adapt, whenever new rules have to be applied.