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By now, you’ve undoubtedly at least heard of Web3, the next stage in the evolution of the internet. However, most people are unaware of its importance and why we should move from Web2 to Web3.
In this piece, we will talk more about it, how specific companies are adding Web3 products to their portfolios, how Web3 brings advantages to everyone, and so much more.
Web2 and Web3 — What’s the Difference?
Web2 and Web3 are two different iterations of the web, with the latter being still largely theoretical. It mainly exists with specific companies and organizations offering novel solutions based on decentralization, openness, and greater utility, the staples of Web3.
Web2 has grown with innovations like smartphones, social networks, and broad mobile internet access. It’s based on interactivity, connectivity, and, most of all, user-generated content. This is how it differs from Web1, the initial iteration of the web, where webpages were few and static.
The Web2 technologies have brought us large Web2-centric organizations and businesses like Meta, Apple, Google, Amazon, and many others.
As for Web3, it was born out of technologies like blockchain, cryptocurrency, NFT, AI, machine learning, and others. What they have in common is much greater user utility, trustless and permissionless attributes, openness, and above all, decentralization.
Even though it’s not here yet, thanks to the disruptiveness of these technologies, it’s almost inevitable to come.
Why We Need to Move to Web3
Web2 is increasingly becoming cumbersome for users. The major companies in the space are effectively locking-in users into their services without a way for them to find something else.
On top of it all, the data they garner stays with them without serving the actual users from whom it’s coming.
Web3 is a solution for this. It’s a fundamentally different approach to the internet, largely based on the premise that users don’t have to be exploited for companies to make money. That’s why the organizations within the space are striving to offer open platforms that create value for users instead of relying on centralized solutions that are increasingly only being used to make money.
In Web3, the users are the ones holding their data, making them free to potentially move to another solution if they so please. Even though it sounds like a bad solution for the companies themselves, it’s not. That’s because the model enables value to be rewarded, and the many companies in this space are proving this assertion.
On top of that, Web3’s openness allows companies to quickly enter another network where they can find more users. For instance, thanks to blockchain technology, a Web3-based business doesn’t have to require users to upload a file, for example, as they can tap into existing files already on the blockchain.
This openness and interoperability are also available to Web2 companies. They only need to adapt Web3 technologies to get the chance to enter a new market. This is evident from major companies starting to use crypto, incorporating NFTs into their platforms, or even banks using blockchain solutions to improve their security.
The benefits of this are great, to say the least. Building trust becomes much easier and less costly, entering new markets becomes seamless, and launching a new product or service in the Web3 space is much easier.
Companies in the Web3 Space Moving the Market Forward
Even though Web3 is still a relatively new concept, it’s clear that many companies are already within it, each with its own solution to a specific problem. Many of these companies are potentially revolutionary not just for Web3 but the entire world.
Moreover, it’s good that the Web3 space is open to everyone, and many Web2 companies are investing heavily in it. They are looking for ways to join the market and create their own Web3 products and services.
This openness to everyone is seen in the example of Hectagon, the world’s first DAO-governed Venture Capital funding platform open to any investor. In a world where VC is only available to the rich and few, Hectagon aims to make it accessible to everyone, all with the help of Web3 solutions.
In the cryptocurrency world, we have Blueshift, a decentralized exchange and crypto asset management protocol using liquidity portfolios. Blueshift uses a combination of virtual pairs and liquidity portfolios, leading to advantages for liquidity providers and traders, namely low impairment loss and low price slippage.
There’s also the case of Ambire, the first power user wallet for digital assets that works as a web app. Unlike all other non-mobile wallets that work as browser extensions, Ambire is the first that works as a full app, substantially improving security and making web wallets easier for beginners.
Web3 is also getting fuller with incredible metaverse projects, where Looking Glass Labs is one of the best examples. It offers an immersive metaverse environment, NFT architecture, play-to-earn tokenization, and even virtual asset royalty streams.
Web3 is coming, and the big transition is almost inevitable for the majority of companies in the online space. The good thing is that it doesn’t have to be an issue but an opportunity for Web2 organizations to properly utilize Web3 technologies to their advantage.
Users will increasingly favor the Web3 space as new and better solutions come to replace the widely used Web2 products and services. That can only mean more opportunities for businesses to enter the space and bring the next disruption.