Note4Students
From UPSC perspective, the following things are important :
Prelims level: Web 3.0
Mains level: Not Much
Central idea: The article discusses the key features of Web3, including its decentralized nature, peer-to-peer transactions, and greater control over data and digital assets for users.
What is Web3?
- Web3, also known as Web 3.0, is the next generation of the World Wide Web that emphasizes decentralization, security, and user privacy.
- It is essentially a vision of the internet where users have more control over their data, identities, and online interactions.
- It is built on blockchain technology, which enables peer-to-peer transactions without the need for intermediaries such as banks, governments, or other third parties.
- This decentralized approach to the web allows for greater transparency and trust, as well as more secure and private transactions.
- Web3 technologies include blockchain platforms like Ethereum, IPFS (InterPlanetary File System) for distributed file storage, decentralized identity systems like uPort, and decentralized marketplaces like OpenBazaar.
Features of Web 3
Feature |
Web3 |
Web2 |
|
Centralisation |
Decentralised | Centralised |
|
Intermediaries |
Peer-to-peer | Rely on intermediaries |
|
Data ownership and control |
Users have control | Large corporations have control |
Challenges for Web3:
Challenge |
|
Scalability |
Current blockchain infrastructure can only handle a limited number of transactions per second. |
User Adoption |
Despite being around for over a decade, blockchain technology is still relatively unknown to the general public. |
Interoperability |
Web3 is being developed by different organisations, each with their own unique vision for the technology, leading to challenges in integration. |
Complexity |
Technical expertise is required to use and understand Web3, which may be a barrier for some users. |
Examples of Web3 use:
Use |
|
|
Cryptocurrencies |
Built on blockchain technology, cryptocurrencies enable secure, decentralised transactions without the need for intermediaries. |
|
Decentralised Finance |
Aims to build a new financial system on top of blockchain technology. DeFi applications enable users to borrow, lend, and trade crypto. |
|
Decentralised storage |
Used to create decentralised social networks and develop decentralised identity verification systems. |
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