What is Web3? Web3 is considered a step forward to solve the remaining problems that Web2 is facing. However, Web3 itself also has many problems that need to be solved, so in this article, everyone and I will learn about Web3 together, about the advantages and disadvantages that Web3 possesses.
To understand more about Web3, people can read some more articles such as:
- Crypto Panorama 101 | Episode 1: Introduction to Blockchain and Crypto
- Crypto Panorama 101 | Episode 3: What is Ethereum?
- NFT Panorama 101 | Episode 1: What is NFT? All About NFTs
What is Web3?
Progress and development
It can be said that we are on a development path from Web 1.0 to Web 2.0 and maybe Web 3.0 will be the next step:
- Web 1.0: Where users can only read information on website platforms such as online newspapers, blogs,…
- Web 2.0: Here users will no longer just read but will be content creators. Not only that, the advent of Facebook, Youtube,… (Social Networking sites) has changed the way people interact with each other from directly through buttons like like, comment, share, and icons. feeling,…
- Web 3.0: Retaining the advantages of Web 1.0 and Web 2.0, Web 3.0 becomes a place where all user information is safe without having to trust a third party.
However, it cannot be confirmed that Web3 will be the future because Web3 still has many immediate shortcomings that need to be overcome, which we will discuss in more detail in the next sections of the article.
Market landscape and Web2 issues
It’s clear that Web2 has experienced its most prosperous days. Many of you will ask yourself what Web2’s prosperous days were like? We can describe the prosperous days of Web2 through some of the following examples:
- Have you ever been a Facebook addict, right when you diligently uploaded videos, virtual images, posted articles, commented with friends, interacted, texted,…
- Surely most people are using Chrome or Coc Coc browser, right?
- You are definitely still using a lot of Youtube for entertainment every day, right? It can be watching movies, reality shows, music videos, Vlogs, Daily life, Food reviews – watching movies,…
- If you are a Crypto Fulltime participant, surely you have been immersed in Twitter lately, right?
History of formation and development of Social Media
Obviously, Web2 is having many peaks, not just one, after the almost simultaneous movements of Facebook, Youtube, then Instagram and then Tik Tok represent an era where users prefer things called entertainment but must fast and short. After Tik Tok, we have Youtube Short, Instagram Reels or Facebook Watch.
It can be said that Web2 is covered by the term Social Media (Social Network Platform).
However, recently, Web2’s problems have become increasingly serious, including:
- The issue of user privacy is exploited and exploited by platforms such as selling user information, using user information to make advertising more convenient, tracking users, and observing behavior. Users even eavesdrop on calls.
- Security is also an issue as user accounts can easily be hacked by third parties.
- The user’s account may be unilaterally terminated forever and cannot be opened.
Web2 forces users to trust the third party they are using and believe that they will protect and not steal any of their information. With the above disadvantages, it is clear that Web2 still needs to evolve to change and that is also the reason why Web3 was born.
Overview of Web3
Web3 is the definition of the future of the Web, the next version of the Web (Web 2.0). It is built on the Blockchain platform, and includes an ecosystem of new applications, protocols and platforms created from blockchain technologies.
The birth of Web3 is expected to fill the gaps left by Web2. However, it should be remembered that Web3 was not born to completely replace Web2, but to give users new options in deciding which platform to choose for long-term use. Web1 will still exist when Web2 is born and Web2 will still exist when Web3 is born. Web1, 2, 3 depend on each other to develop.
The Combination Between Blockchain & Web2 To Create Web3
Overview of Blockchain
Blockchain is a chain-block technology that allows the safe transmission of data based on an extremely complex encryption system, similar to a company’s accounting ledger, where money is closely monitored. and record every transaction on the peer-to-peer network.
Each block contains information about the creation time and is linked to the previous block, along with a time code and transaction data. Once data is accepted by the network, there is no way to change it. Blockchain is designed to prevent fraud and data alteration.
Everyone can read more about Blockchain & Crypto in the article Crypto Panorama 101 | Episode 1: Introduction to Blockchain and Crypto
Benefits that Blockchain brings to creating Web3
The same unique characteristics that create Blockchain have also created Web3 from those genetic characteristics. Outstanding features that Web3 brings to users include:
- Web3 enhances and ensures complete security and privacy for personal information of all users on Web3. This is considered one of the core features of Blockchain technology.
- Web3 distributes data and stores it on many different nodes, reducing the problem of network attacks leading to data being stolen by hackers. So getting pieces of data doesn’t help hackers much.
- Web3 helps users not have to trust a third party that is subject to change or erratic weather and rain. At Web3, all interactions are through previously programmed Smart Contract platforms.
- A new economic system where users have more assets to interact with such as tokens, NFTs, or digital assets.
Some disadvantages of Web3
Besides the advantages, Web3 still has some disadvantages that need to be quickly overcome such as:
- Web3 is built on the Blockchain platform and the most popular currently is Ethereum, so Ethereum’s problem is also the problem of many Web3 platforms in terms of scalability with slow transaction speeds and high transaction fees.
- The complexity of Blockchain technology and Smart Contract platforms makes developers need more time to approach, learn, and learn before building the first Protocols and DApps.
- Smart Contract is also a problem because currently and in the past it is not uncommon for Smart Contracts to have vulnerabilities. This has stolen billions of dollars from users.
- Lawmakers also don’t like PoW Blockchains because they consume too much energy.
A number of solutions are being developed
With the above disadvantages, it can be said to have a fatal impact on user experience on Web3, that is why many solutions are being proposed and built such as:
- Regarding the solution to expand on the scale of Layer 1, we have witnessed many Layer 1s that have been, are and will be born with the goal of tens of thousands of TPS with almost zero fees, which is expected to solve the problem completely. Scalability issues on Ethereum.
- PoS Blockchain is also the consensus mechanism targeted by 100% of new Layer 1 platforms to save energy, fuel and operating costs.
- Many Hackathons, Grants, Incentive Programs,… are launched to encourage developers to go into Web3.
- Regarding the fact that Smart Contracts are often attacked, security companies such as PeckShield, CertiK,… have been born with the goal of auditing Smart Contracts before they are delivered to users.
Considered a solution, but among these solutions there are still many remaining problems so it is not necessary to go deeper in the article. For example, many Layer 1 platforms were born to overcome Ethereum’s problems, but no Layer 1 platform has really done it, except for a few Layer 2 platforms. Projects audited by CiertiK are still hacked. and users question the company’s security work.
What Stage of Development Is Web3 At?
In my opinion, any trend will be divided into 2 phases and those 2 phases of Web3 are:
- Infrastructure construction phase
- Development stage of Protocols & DApps
It can be said that we have come a very long way in building infrastructure since the birth of Bitcoin & Ethereum. However, that is just the beginning, this infrastructure is not good enough to receive hundreds of millions or billions of users from Web2 pouring into We3.
The number of regular users on Ethereum only stops at about 15M per month, while if you look at Youtube, that number is 133 times 2B, for Facebook it is 2.93B and for Instargram it is 1.28B. Obviously, if only 10% of the above figure is poured from Web2 to Web3, Web3’s current infrastructure cannot handle it.
That’s why we have Layer 2, Layer 3, not only that, many new Layer 1s have been born such as Aptos, Sui, Monad, Aleo, Celestia,… aiming to completely solve the problem on Ethereum.
In terms of Protocols and Dapps, the first wave we witnessed was DeFi Summer 2022 and up to now there have been many outstanding projects such as Metamask, Uniswap, AAVE,… The first pieces of the puzzle about the DeSocial also began to form like Lens Protocol, Cyber Connect, Farcaster,…
The Future of Web3
With the different characteristics that Web3 brings, it is clear that Web3 is a big step forward for the world after the birth and brilliant success of Web3. However, Web3 itself still has many outstanding problems that need to be upgraded, developed and changed if it wants to reach billions of users like the platforms Youtube, Facebook, Instagram,… are doing.
One positive thing we can hope for is that although the market is in a long-term downtrend, many new projects are still being built, and old projects are constantly upgrading to innovate. , to become better and more relevant to users and developers.
