Note4Students
From UPSC perspective, the following things are important :
Prelims level: Web transformation, Data analytics applications and developments
Mains level: Internet and Web development, and constraints and opportunities
Central Idea
- India’s digital asset opportunity is worth $1.1 trillion by 2032, and the third-generation web or Web 3.0 is crucial to realizing this potential. However, the complex and diverse descriptors used by experts make the policy perspective of Web 3.0 difficult to comprehend. The article aims to explain the transformative role of Web 3.0 in India’s digital asset opportunity.
What is Web 3?
- Third-generation internet web: Web 3, also known as the third-generation web, is a term used to describe the next iteration of the internet, which is expected to be decentralised, privacy-oriented, blockchain-driven, and crypto-asset friendly.
- Radically transformation the way data generated: It seeks to radically transform the manner in which data is generated, monetised, shared, and circulated, and advocates for decentralised data storage systems with the objective of unshackling the oligopolistic grip of technology behemoths over data.
- Bold elements: Web3 has bold elements such as the strategic role it assigns to non-custodial wallets that function as digital passports for users to access blockchain-enabled transaction platforms, as well as replacing micro-economic organizations with decentralized autonomous organizations (DAOs).
What is Web 3.0?
- Semantic web: Web 3.0 upholds the property of the semantic web, which is powered by Artificial Intelligence (AI).
- Ability to recombine information: The real point about the semantic web is its ability to recombine information available on different websites to generate new content and knowledge resources that are more authentic and creative.
- Robust capability of data analytics: Followers of Web 3.0 claim that their version is endowed with robust capability on the data analytics front. This way, it is argued that Web 3.0 will create far better search engines.
How is Web 3 is different from 3.0?
|
Web3 |
Web 3.0 |
| Decentralized, privacy-oriented, blockchain-driven and crypto-asset friendly | Powered by Artificial Intelligence (AI) and upholds the property of the ‘semantic web’ |
| Seeks to radically transform the manner in which data is generated, monetized, shared and circulated. | Has the ability to recombine information available on different websites to generate new content and knowledge resources that are more authentic and creative |
| Advocates decentralised data storage systems to unshackle the oligopolistic grip of technology behemoths over data. | Robust capability on the data analytics front to create far better search engines |
| Has file-sharing systems such as the Inter-Planetary File System which are cryptographically protected, more secure and capable of functioning off Internet and off blockchains. | The web 3.0’s semantic web is powered by Artificial Intelligence and the ability to recombine information available on different websites to generate new content and knowledge resources that are more authentic and creative. |
| Strategic role it assigns to non-custodial wallets that function as digital passports for users to access blockchain-enabled transaction platforms. | Has the ability to facilitate ‘analytics at the edge’ providing considerable scope for mapping the water use habits of communities |
| Seeks to replace micro-economic organizations with decentralized autonomous organizations (DAOs). | Can yield insights from large volumes of community data generated by IoT-enabled development programs such as the Jal Jeevan Mission |
| Seeks to create a distributed economic system where special classes of native digital tokens and cryptocurrencies would form the media of monetary circulation. | Can improve early warning systems for floods due to data analytics facilities being obtained at the sub-basin level |
| Seeks to raise the efficiency of peer-to-peer transactions. | Can be utilized to draw upon the talent pool for the benefit of rural communities. |
Benefits of Web 3.0 for India
- Handicraft industry: Web 3.0 could enable India’s handcraft enterprises to secure their innovations using digital tokens. Instruction tools based on Web 3.0 could also allow for the rapid dissemination of grassroots innovations from master artisans to fellow members, improving the economic fortunes of craftsmen and artisan communities in north-east, western, and peninsular India.
- Rural development: India’s major digital public infrastructure push and the large-scale deployment of Internet of Things (IoT) in rural development projects offer major possibilities for deploying Web 3.0 in rural areas. Web 3.0’s (decentralized) analytics systems could help overcome the limitation of data analytics capabilities at the community level.
- For Instance: Web 3.0 could yield insights from large volumes of community data generated by IoT-enabled development programs such as the Jal Jeevan Mission. Web 3.0’s natural advantage of facilitating analytics at the edge provides considerable scope for mapping the water use habits of communities.
- Capital mobilization: Web 3.0 could generate asset tokens that are native to the new-gen web and have the potential to function as capital mobilization tools for Web3 projects. Stakeholders of DAOs can also utilize tokens to exercise their voting rights.
- Peer-to-peer transactions: Web3 seeks to replace micro-economic organizations with decentralized autonomous organizations (DAOs). In general, Web3 platforms would serve to raise the efficiency of peer-to-peer transactions.
- Data storage: Web3 advocates for decentralized data storage systems with the objective of unshackling the oligopolistic grip of technology behemoths over data. Web3 has file-sharing systems such as the Inter-Planetary File System which are cryptographically protected, more secure and capable of functioning off Internet and off blockchains.
What are the challenges for web 3.0 in India?
- Lack of infrastructure: Web 3.0 requires a robust and reliable internet infrastructure, which is currently lacking in many parts of India. This can hinder the adoption of Web 3.0 technologies, especially in rural areas.
- Limited digital literacy: India still has a large population with limited digital literacy. This can make it difficult for users to understand and access Web 3.0 applications, especially in remote areas where access to digital devices and the internet is limited.
- Regulatory challenges: The use of blockchain and cryptocurrency technologies, which are central to Web 3.0, faces regulatory challenges in India. The government has been hesitant to embrace these technologies, which could hinder the development of Web 3.0 applications.
- Skill gaps: The development of Web 3.0 applications requires a specific set of technical skills, which are currently in short supply in India. Bridging this skill gap will be crucial to enable the development and deployment of Web 3.0 technologies in India.
- Security concerns: Web 3.0 applications are based on decentralized systems, which are inherently more secure than centralized systems. However, they are still susceptible to cyber attacks and security breaches
Constraints related to data analytics in rural areas
- Lack of data analytics capabilities at the community level, resulting in untapped data resources such as the Atal Bhujal Yojana.
- Rapid pace of data generation in rural areas outpacing the capacity for data analytics to keep up.
- Limited availability of data analytics talent in rural areas.
Way ahead
- Developing a third-gen web strategy that optimizes public interest by combining the features of Web3 and Web 3.0.
- Providing incentives for decentralised analytics and tokenising them to draw upon the talent pool for the benefit of rural communities.
- Exploring tokenisation and applying blockchain solutions for development programs, as proposed in India’s National Blockchain Strategy 2021.
- Addressing challenges such as lack of awareness, regulatory uncertainty, and insufficient infrastructure.
- Building capacity for data analytics and web design in rural areas.
- Encouraging the deployment of Web 3 applications in rural development projects and community data initiatives.
- Partnering with global experts to leverage their knowledge and experience in the field.
- Facilitating research and development to enhance the capabilities of Web 3 technologies.
- Ensuring that the development of Web 3 is inclusive and accessible to all, regardless of socio-economic status.
Conclusion
- India’s National Blockchain Strategy 2021 must craft a third-gen web strategy that optimises public interest by combining the welcome features of Web3 and Web 3.0. By providing incentives for decentralised analytics and tokenising them, it is possible to draw upon the talent pool for the benefit of rural communities. Web 3.0 can be a transformative tool for India’s digital asset opportunity worth $1.1 trillion by 2032.
Mains Question
Q. What is web 3.0. How it is seen as different from web 3? Discuss the potential benefits and challenges of web 3.0 for India.
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