what is web3?so there’s been a ton of talk about web3.0 and the metaverse recently. As someone who’s got into the space before knowing really what that term meant. I want to share exactly what it means and why I believe it’s going to destroy the internet as we know it. But first, before I get into what web3.0 is and why I’m so bullish on it, let’s first define what web1 and web2 were.
what is web1?
Web1 is the open internet, the open-source internet protocols that became what we know as the internet today. Every site used HTTP to go there, so every address you put in your put, at in first email protocols used SMTP and anyone could build on top of them without needing to get permission.
what is web2?
However, you did need to learn how to code. Web2 was the proprietary closed internet. So web2 is when the monetization of the internet was the focus. So companies began building proprietary closed protocols on top of the internet, which what does that even mean? Okay, so Larry Page and Sergey Brin created a search engine called Google. Mark Zuckerberg created an online hub for friends that became Facebook. Jeff Bezos started an online bookstore with Amazon. And now these companies and a couple more, control the majority of the internet. In fact, we now use the term FAANG when we talk about people who get a job in big tech so FAANG stands for Facebook, Apple, Amazon, Netflix Google. And they are soon going to change it to MANGA because now Facebook has totally changed their name to Meta.
what is web3?
web3 is the decentralized future. In one way we’re going back to web1days of open-source protocols, but this time the decentralized world will be owned by those who build and use it through crypto-economics. Naval describes web3 as an internet owned by users and builders orchestrated with tokens. And this new
concept of a token is the kind of keys concept in web3. It’s kind of like owning a small piece on Facebook before it became Facebook because you used it. A web3 version of Uber would be the Uber drivers and the rider sharing ownership over the platform through tokens. Spotify would be owned by the developers, the musicians, the entertainers, and the listeners. Shopify might be owned by the merchants, the customers, and the developers. This
means in web3, we don’t need any middlemen, we don’t need an intermediary to help us execute. It’s all done through lines of code known as smart contracts. So there’s no LLC. There’s no C-corp. There’s no CEO ,there’s no executive board, but rather there’s a decentralized autonomous organization known as a DAO. Now governance tokens are the accepted method of decentralization within the crypto world they distribute tokens to users and each is worth one vote when a decision is made.
Why I think Web3 would defeat Web2
Now here’s why I think web3 will eat web2 within the next 10 years because web3 is all about intrinsic motivation over extrinsic rewards. And a perfect example this has already happened. So Microsoft has already lost to web3 ethos, except this happened years ago before any of this even existed.
Now I don’t know if any of you watching this is going to remember this, but there was something called Encarta which was an online encyclopedia created by Microsoft in the 1990s. I still remember my dad showing it to us and telling us it was going to replace the bookshelf full of thick encyclopedias that we’d grown up with, but honestly, we’re to use.
But don’t worry if you’re younger than me and have never heard of Encarta. there’s a reason for that, and that is because it failed. So despite Encarta being funded by Microsoft with a team full of well-paid people, paid to create and research content, they ended up getting beat up by a competitor, and not just any competitor, one that you would least expect and you would not have put money on them beating Microsoft.
The competitor was an open-source community project, it wasn’t funded by a big company, all the contributors would work on it for fun and for free, meaning they wouldn’t be paid for their time. It was a true David versus Goliath scenario, that if you had to bet on the outside of which company would win most, like 99 out of 100 people would have said Microsoft Encarta. But no, Wikipedia won.
Wikipedia was the open-source project that ended up way beating Encarta because the rewards were intrinsic and not this big company that was someone’s job.
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The puzzle of Motivation
Now for more information on this phenomenon check out Dan Pink’s ted talk on the puzzle of motivation.
He describes all about this intrinsic motivation and it’s all about autonomy, mastery, and purpose, versus the extrinsic method of rewarding through carrots and sticks. web3 is all about autonomy mastery and purpose. So in the same scenario not only would Wikipedia still win, but the contributors and the creators would share in the ownership of the project.
So any money made would be shared through tokens. Now if you’re new to web3, it might sound like a pipe dream. Like okay, this doesn’t actually exist, but it’s already happening in the crypto world in the form of airdrops. So there’s this concept in crypto called airdrops, which involves a transfer of cryptocurrency from a project, to a user’s wallet and to be eligible for these airdrops, all you have to do is to interact or use the product that the airdrop is from.
It is usually retroactive .so all you would have to do is to use the product. And you would be sort of gifted a reward for doing that. Like when Uniswap exchange released their token, they airdropped everyone who had ever used it 400 unis for each wallet that they’d interacted with. When ENS released their token, they retroactively airdropped tokens to everyone who had ever bought an ENS domain.
Web 3’s greatest trait.
Imagine as an Uber user, you get sent free money for using the service. This is why web3 is so powerful. Because the rewards go to the users ,builders and this incentivizes the people that need to make a product successful. The people that build it, and the people that use it. I’m going to share more in a future about airdrops and what might be coming up so you can be ready, but this is just an intro to web3 and what’s coming next. Don’t forget to comment, below to get that article and way more fun.
also read: Metaverse