Web3

Web 3 (also known as Web 3.0[1][2][3] and sometimes stylized as web3)[4] is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, in the form of a distributed ledger such as blockchain technologies, and token-based economics.[5] Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies sometimes referred to as "Big Tech".[6] The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms.[6][7]

Some commentators argue that Web3 will provide increased data security, scalability, and privacy for users and combat the influence of large technology companies.[8] Others have raised concerns about a decentralized web, citing the potential for low moderation and the proliferation of harmful content,[9] the centralization of wealth to a small group of investors and individuals,[10] or a loss of privacy due to more expansive data collection.[11] Others, such as Elon Musk and Jack Dorsey, have argued that Web3 only serves as a buzzword.

Specific visions for Web3 differ, and the term has been described by Bloomberg as "hazy", but they revolve around the idea of decentralization and often incorporate blockchain technologies, such as various cryptocurrencies and non-fungible tokens (NFTs).[6] Bloomberg has described Web3 as an idea that "would build financial assets, in the form of tokens, into the inner workings of almost anything you do online".[25] A policy brief published by the Bennett Institute for Public Policy at the University of Cambridge defined Web3 as "the putative next generation of the web’s technical, legal, and payments infrastructure—including blockchain, smart contracts and cryptocurrencies."[26] Three fundamental architectural enablers of Web3 were identified[by whom?] as a combination of decentralized or federated platforms, secured interoperability, and verifiable computing through distributed ledger technologies.[27]

Some visions are based around the concept of decentralized autonomous organizations (DAOs).[28] Decentralized finance (DeFi) is another key concept; in it, users exchange currency without bank or government involvement.[6] Self-sovereign identity allows users to identify themselves without relying on an authentication system such as OAuth, in which a trusted party has to be reached in order to assess identity.[29] Technology scholars have argued that Web3 would likely run in tandem with Web 2.0 sites, with Web 2.0 sites likely adopting Web3 technologies in order to keep their services relevant.[30]