Web 3.0 : Moving towards a more decentralized and secure internet

The emergence of Web 3.0 could compel tech companies to relook their user-information centric strategies

December 13, 2021

The platform will be built on blockchain technology and give ownership of information to users as against tech companies.

Technologies such as Artificial Intelligence, Semantic Web and Machine Learning can help improve user experience and interaction.

Businesses will not have the additional responsibility of embedding security features for customers owing to Web 3.0’s inbuilt features.

If implemented at large scale, Web 3.0 has the potential to contribute US$ 1.1 trillion to the GDP by 2031.

Welcome to Web 3.0 or the third version of the Internet that is all set to change the way we work and operate. The advent of the Internet era has been characterized by three waves namely Web 1.0, Web 2.0 and now Web 3.0. Web 1.0 was primarily characterized by the rapid consumption of information by users, Web 2.0 saw the role of users expand to that of contributors and Web 3.0 will seek to push the envelope further. Developed on the foundation of increased utility, improved privacy and greater decentralization, Web 3.0 will revolutionize the future of digitization. 

Web 2.0 saw the storage of user information by technology giants such as Amazon, Google and Facebook, and exposed the vulnerability of this model in the face of cybersecurity and data mining for election seasons. Web 3.0 is expected to be an improvement as it is built on blockchain technology that decentralizes the ownership or control over content. Users will have greater control over the information shared by them over social media and be protected from exploitative practices such as data extraction. Through the infusion of Artificial Intelligence, Semantic Web and Machine Learning, user experience and interaction are expected to improve.

How businesses stand to gain from Web 3.0

Owing to the enhanced security features of blockchain technology, businesses will not have the additional responsibility to secure customer data. Layers of security including data anonymization, end-to-end encryption and periodic requests for permission to access data are inbuilt into the design of the platform. Customers will be able to access their data in a safe and convenient manner without the threat of hacking. Additionally , entrepreneurial effort can be directed towards more advanced tasks as the technologies underlying Web 3.0 can tackle the more redundant aspects of the workflow.

Regulatory challenges posed by Web 3.0

The decentralized quality of Web 3.0 could complicate regulatory oversight from a governance perspective. Approaches could vary from exclusive government ownership of certain digital properties to framing compliance measures within the purview of existing legal parameters. Sources of funding for startups in the space is contingent on the potential for widespread uptake of Web 3.0 as well as favourable policies from governments. 

Existing social media and public information platforms are also expected to face challenges in curbing the spread of misinformation, tackling cybercrime and hate speech. Legal grey areas could potentially crop up from a compliance and accountability perspective given the feature of decentralization.

Way forward for Web 3.0

The uptake of Web 3.0 has been met with enthusiasm by cryptocurrency enthusiasts. However, skepticism exists around the widespread use of the platform as levels of blockchain knowledge among the general public is sparse. However, if rolled-out and utilized effectively, Web 3.0 has the potential to contribute US$ 1.1 trillion to the GDP by 2031. Currently, entities in the startup ecosystem including Persistence, Polygon, Vauld, Biconomy and EPNS are working towards increasing the adoption of Web 3.0. 

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