Mukhil PadmanabhanThe internet keeps evolving and if you’re following trends in tech, then it’s likely that you’ve already heard of Web3 thrown around. It’s an exciting shift that is shaping a new way of thinking about the internet but what is Web3 exactly and why are people talking about it? And most importantly, what does it mean for developers like yourself?
New to tech or a developer getting into this next phase of the internet, we’ll go through Web3 in a simple way that anyone starting out can absorb. We’ll cover what Web3 is, how it’s different from the current internet (Web 2.0), the technology behind it (blockchain, smart contracts) and why it presents amazing opportunities for developers.
What is Web3?
Web3 is the concept of a decentralized internet where control is in the hands of users, not a few organizations (such as Google, Facebook or Amazon). This new web is built with blockchain technology—the same technology that powers cryptocurrencies such as Bitcoin and Ethereum.
In Web3, you actually own and have control of your own data, identity, and assets instead of some big corporation owning and managing them for you. Think of an internet where you don’t log in to Facebook to access your social network but rather use your own unique, secure identity that only you have access to. Or where you don’t submit your app to an app store but instead release it directly onto a decentralized network without having to get approval from a central authority.
In short, Web3 is about giving power back to the users.
How Web3 Differs from Web 2.0
Web3 and Web2.0 are both versions of the internet, so to understand what is new about Web3 we’re going to have to go back to the version most people know and use today, Web2.0.
- Web 1.0 (1990s): The “read-only” web. Websites were static and offered information to users, but there wasn’t much ability for users to do anything other than consume the content being provided.
- Web 2.0 (2000s-present): The “read-write” web. Social media, apps, user-generated content began dominating the internet where now users can create and interact with content but most of this is still owned and controlled by the big corporations – your data on Facebook or Amazon’s purchases for instance are not something you own or control.
- Web3 (Next): The read-write-own web. Users have more control over their data, identity, and content. Blockchain technology enables users to own digital assets and build decentralized applications (dApps) that cannot be shut down or controlled by any centralized entity.
Key Differences Between Web2 and Web3:
| Web 2.0 | Web 3.0 |
|---|---|
| Centralized platforms (Facebook, Google) | Decentralized networks (Ethereum, Solana) |
| Data controlled by companies | Data owned by users |
| Monetization through ads and data | Monetization through tokens and ownership |
| Intermediaries for transactions | Peer-to-peer transactions via blockchain |
Technologies Behind Web3
Blockchain
Blockchain is the backbone of Web3. It’s a decentralized ledger that records transactions across many computers in a way that’s secure, transparent and immutable. There’s no single entity in control—everyone has a copy of the same ledger.
Why it matters: Blockchain ensures trust and security without needing a middleman. Transactions, contracts or data exchanges can happen directly between users without needing to trust a third-party company.
Smart Contracts
Smart contracts are contracts whose terms are written into code. They can self-execute, and self-enforce, themselves based on predefined conditions. Smart contracts are typically run on blockchain platforms like Ethereum.
Think of a vending machine. You put in money, make a selection and the machine gives you your item. A vending machine is sort of a simple version of a smart contract: if criteria is met (you put in money), contract does what it should (you get the drink) and no middleman is needed (the vending machine doesn’t have the option not to give you the drink).
Smart-contracts means trustless transactions; the users don’t have to trust or rely on a central authority, the code enforces the contract.
Cryptocurrencies and Tokens
Bitcoin and Ethereum are cryptocurrencies, i.e., digital currencies that use cryptography for security. In Web3, tokens (a kind of cryptocurrency) are used for payments and also as ownership and governance in decentralized apps (dApps). A token can be anything from a currency to voting rights in a decentralized system.
Tokens allow for new economic models in Web3, where users can own a part of the platforms they use and even vote on how they’re run.
Decentralized Applications (dApps)
dApps are simply applications that run on top of decentralized networks. Instead of the business logic and information of an app residing on centralized servers in the backends, dApps are composed of smart contracts and run on blockchains. They have no central authorities governing it, often open-sources, transparent and utilizes token-based governance.
It is now possible to develop and use applications without relying on big tech companies. Some examples of typical dApps include but not limited to decentralized finance (DeFi) platforms, decentralized social network and marketplaces
Popular Web3 Platforms
- Ethereum: The biggest blockchain for constructing decentralized apps and smart contracts. Ethereum has a native cryptocurrency, Ether (ETH), and thousands of dApps have been built on its platform.
- Solana: A fast blockchain with low transaction fees. Growing in popularity for Web3 projects, especially in the decentralized finance (DeFi) and NFT spaces.
- Polkadot: A multi-chain platform that connects different blockchains together, promoting more interoperability within the Web3 ecosystem.
- Filecoin: A decentralized storage network where users can store and retrieve data with security, reliability and efficiency, without depending on centralised cloud providers like Google or AWS.
Opportunities for Developers in Web3
Web3 opens up a wealth of new opportunities for developers. Here are some areas where you can get involved:
- Building dApps: Whatever the use case may be, be it a DeFi platform, an NFT marketplace or a decentralized social network, the demand for dApps is growing at an accelerating pace and so are the developers who can build them (blockchain development + smart contracts).
- Smart Contract Development: Knowing how to write smart contracts using Solidity (the main language for Ethereum smart contracts) or Rust (for Solana) can make you stand out as a developer in the Web3 space.
- Blockchain Infrastructure: With more and more platforms and projects using blockchain, there’s a bigger need for developers to build infrastructure tools like wallets, blockchain explorers, and APIs that help connect users with decentralized applications.
- DeFi (Decentralized Finance): DeFi is probably the biggest use case for Web3 right now. It’s a blockchain-based financial system where intermediaries (like banks) are removed from financial services. Developers can create new innovative financial products that are decentralized and available to anyone in the world.
- NFT Development: NFTs (Non-Fungible Tokens) are unique digital assets that can be minted on a blockchain. Developers can build platforms for art, gaming, virtual real estate and beyond where users create, buy, sell and trade NFTs.
Challenges of Web3
While Web3 brings a lot of exciting opportunities, it still has its challenges:
- Scalability: Blockchains like Ethereum can get slow and expensive during high traffic times, making it difficult for dApps to scale.
- User Experience (UX): Interacting with Web3 apps is still relatively complicated for everyday users. Wallets, private keys, and gas fees can be confusing.
- Regulation: The regulatory landscape for decentralized applications and cryptocurrencies is still evolving, and developers need to contend with legal uncertainties.
- Security: Just because something is decentralized doesn’t mean there aren’t vulnerabilities. Smart contracts can be vulnerable and once a transaction is on a blockchain, it’s permanent.
Conclusion: The Future of Web3 for Developers
Web3 is not only a buzzword but a paradigm shift in how we use the internet. With Web3 as a developer you have access to build decentralized applications, work with new technologies and help shape the future of the internet. You can do anything from blockchain development, building decentralized finance applications or with NFTs becoming increasingly popular now.
If you are curious it’s an exciting time to start exploring all of the possibilities. With enough knowledge and conviction, there’s no reason why you can’t be one of those that make history on this wave!
I hope this Web3 introduction has helped you to get a better understanding about Web3. We will come up with more posts that go beyond the surface and take deep dives into decentralized application, smart contract and blockchain technology world!
