Web 3.0: The game changer redefining the internet | HCLTech

Web 3.0: The game changer redefining the internet

Decentralization, blockchain and empowerment are three elements that define the potential of Web 3.0
 
9 minutes read
Mousume Roy
Mousume Roy
APAC Reporter, HCLTech
9 minutes read
Web 3.0: The game changer redefining the internet

The internet has come a long way since its debut decades ago when it was nothing more than static pages connected by hyperlinks. Web 2.0 introduced the internet as a platform enabling ecommerce and social media sites. Users gained the ability to interact with online platforms and publish their own content. Cloud computing was a major driver of the growth of Web 2.0.

The downside of Web 2.0 is that users are required to surrender their personal data and the users’ preferences for how they use these services, and this data is often sold to third parties and is used to serve targeted ads. Web 2.0 makes it very difficult to remain anonymous on the internet. Enter Web 3.0, the next generation internet, is transformed from a platform to a decentralized digital infrastructure.    

Built on the principles of decentralization, blockchain technology and AI, Web 3.0 has the potential to redefine ownership of digital profiles and behavior that will enhance privacy and security and foster innovation. This next generation of the Web promises to be more decentralized, secure and user-centric. Web 3.0 aims to remove reliance on centralized intermediaries and the infrastructure to empower users with greater control over their data and digital interactions.

This will create a unique system that removes the need for intermediaries and enables a more secure, transparent and efficient internet. Packy McCormick, an investor who helped popularize Web 3.0, has defined it as “the internet owned by the builders and users, orchestrated with tokens.”

Underneath the hood

Like any other technology, Web 3.0 also needs a combination of different services, platforms and technologies to run properly. Some of these core technologies required are:

  1. Blockchain is a Distributed Ledger Technology (DLT) that is used to create secure, transparent and tamper-proof records of transactions. Each block in the chain contains several transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger. The decentralized database managed by multiple participants is known as DLT. In Web 3.0, blockchain is being used in Augur, Uniswap and The Sandbox.
  2. Decentralized application (DApp) is a software application that runs on a blockchain or peer-to-peer (P2P) network of computers instead of on a single computer. DApps are thus outside the purview and control of a single authority. They are often built on the Ethereum platform and have been developed for a variety of purposes including gaming, finance and social media.
  3. Smart contracts are a self-executing contract that is stored in a blockchain network. Using AI, the contract automatically executes the terms of an agreement when certain conditions are met. Smart contracts are often used to automate the execution of financial transactions, but they can also be used to automate any type of agreement, especially in the wide use cases of Web 3.0.

Siki Giunta, EVP for HCLTech’s cloud strategy CloudSMART and Industry Cloud explains:  CTO HCLTech and Industry Cloud explains: “The advantage of Web 3.0 is that users will interact with apps sitting on the infrastructure. The network will verify transactions between applications without generating access credentials or getting permission from a third-party provider. All transactions are recorded on the blockchain, preventing bad actors form misusing the data.”

Enhancing privacy and security

Cyberthreats, ransomware and sophisticated professional hackers targeting hospitals, public safety agencies and the power gird requires a more secure and private internet. Web 3.0, with its inherent decentralized identity systems, provides individuals governance and control over their digital identities with the digital infrastructure, blockchain, controlling the exchange of information between applications.  

Revolutionizing industries

Web 3.0 has the potential to revolutionize various industries, disrupting traditional business models and creating new opportunities.

  1. Decentralized finance (DeFi): Decentralized finance stands as a shining example of Web 3.0’s transformative power. By leveraging blockchain technology and smart contracts, DeFi is revolutionizing traditional financial systems and empowering individuals with unprecedented control over their financial activities. 

    Giunta adds: “The Defi protocols continue to mature and provide an extensive portfolio of services transforming lending, borrowing and investing.  Web 3.0 has the potential to democratize finance, creating a more inclusive and decentralized financial ecosystem.”

  2. Healthcare: With Web 3.0, patients will have assurance that medical data transmitted between and among providers and healthcare professionals is protected, which could revolutionize how healthcare is delivered. Patient records could be securely stored on a blockchain, accessible only to medical professionals based on the smart contract with the patient. Around 55% of healthcare organizations are expected to adopt blockchain technology by 2025 to secure medical records and improve interoperability.
  3. Entertainment: Web 3.0 will enable new forms of digital entertainment, such as virtual reality experiences, blockchain-based gaming and decentralized social networks. In the recent MetaCannes Festival in France, Phil McKenzie, co-founder of MyCo, a Dubai-based streaming platform, said: “Web 3.0 is flipping the whole idea of content consumption on its head.”
  4. Advertising: Web 3.0 is changing the way digital advertising works, by enabling users to monetize their personal data. This could shift the balance of power in the ad industry from large corporations to individuals. By introducing new models that prioritize users consent and control over data, Web 3.0 enables more transparent targeted advertising, allowing users to choose to engage with relevant ads, without implicitly or explicitly sharing personal information.
  5. Supply chain: Blockchain enhances transparency, traceability and accountability, reducing fraud and ensuring ethical sourcing. The global blockchain market in the logistics and transportation sector is expected to grow from $27.0 million in 2023 to $889.3 million in 2025, at a compound annual growth rate of 49.93%, according to the report by Research and Markets.

Overall, Web 3.0 has the potential to create a more open, secure and equitable internet that benefits everyone.

Fostering innovation and collaboration

Web 3.0 fosters innovation and collaboration by enabling open-source development and decentralized governance. Through DApps, developers can create applications that run on the blockchain, utilizing smart contracts to provide transparent and trustless functionality. This promotes a more inclusive and participatory digital ecosystem, allowing individuals from all over the world to contribute and benefit from the innovations taking place on Web 3.0.

The rise of decentralized autonomous organizations (DAOs) is a notable example of how Web 3.0 is fostering innovation. DAOs are organizations that operate based on smart contracts and decentralized decision making. It enables individuals to pool funds together and collectively decide on funding proposals for projects they believe in. This innovative model is revolutionizing how organizations are formed, funded and governed, fostering a new era of collaborative innovation on the internet.

As this new era of the internet continues to evolve, it is crucial for individuals, businesses and policymakers to embrace the opportunities presented by Web 3.0 and work together to shape its future. The world is on the brink of a transformative era, and Web 3.0 is leading the way towards a more inclusive and empowered digital society.

TAGS:
Blockchain
Cybersecurity
Digital
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