What is Web 3.0 !?

Web3, an evolution of the traditional World Wide Web, integrates decentralization, blockchain technologies, and token-based economics, contrasting with the centralized structure of Web 2.0. Coined in 2014 by Ethereum co-founder Gavin Wood, Web3 gained momentum in 2021. However, critics express concerns over centralization of wealth and privacy issues arising from increased data collection. Elon Musk and Jack Dorsey are among those who view Web3 as a mere buzzword.

The concept of Web3 is different from Tim Berners-Lee's Semantic Web from 1999. Berners-Lee previously described the Semantic Web as part of Web 3.0, which differs in meaning from the Web3 associated with blockchain. Gavin Wood coined the term "Web3" in 2014 to describe a decentralized online ecosystem based on blockchain technology. In 2021, there was a rise in interest in Web3, especially towards the end of the year, driven by cryptocurrency enthusiasts, high-profile technologists, and companies making investments. Andreessen Horowitz executives even lobbied in Washington, DC, in October 2021, advocating for Web3 as a potential solution to regulatory issues concerning the internet.

Different visions of Web3 exist, and according to Olga Kharif, the concept is somewhat unclear but generally revolves around decentralization and often involves blockchain elements like cryptocurrencies and NFTs. Kharif suggests that Web3 aims to integrate financial assets, such as tokens, into various online activities. An analysis by the Bennett Institute for Public Policy at the University of Cambridge defines Web3 as the potential evolution of the web's technical, legal, and payment structures, including blockchain, smart contracts, and cryptocurrencies. Additionally, Liu, Zhuotao, et al. (2021) identify decentralized platforms, interoperability, and verifiable computing through distributed ledgers as key components of Web3.

Several investors are confident to the tune of $27 billion that Web3 will be the new face of the internet, as per a report by The New York Times. Companies like Reddit and Discord have begun exploring how they can integrate Web3 technologies into their current platforms. The news outlet mentions that the decentralized web embodies earlier notions of cyber-libertarianism, envisioning a space where regular individuals can acquire power by dismantling existing power structures. However, some critics of Web3 view it as either another cryptocurrency-driven bubble or a continuation of blockchain-based fads that are perceived as overrated or detrimental, especially non-fungible tokens (NFTs). Jack Dorsey, Twitter's co-founder and former CEO, has dismissed Web3 as merely serving the interests of venture capitalists.

Liam Proven, writing for The Register, suggests that Web3 is fictional and akin to a bedtime story parents tell their children to inspire them to pursue a career in economics. Elon Musk also expressed doubts about Web3, calling it more of a marketing term than a reality. James Grimmelmann labeled Web3 as vaporware, detailing it as an idealized future internet solving current issues, potentially contradictorily. Software engineer Stephen Diehl criticized Web3 in a blog post as a shallow marketing tactic that aims to change public perceptions about cryptocurrency assets by presenting a false narrative of disrupting established tech companies.

In early 2022, Moxie Marlinspike, the creator of Signal, pointed out that Web3 is not as decentralized as it seems, primarily because of consolidation in the cryptocurrency sector. This includes control by companies like Alchemy and Infura over blockchain APIs, dominance of exchanges by Binance, Coinbase, MetaMask, and OpenSea, and Tether's strong presence in the stablecoin market. An article from Ad Age in 2022 highlighted the desire among early adopters to create a new internet that addresses old problems, warning that repeating past structures and attitudes could lead to the same issues recurring.