Web3 explained: How Blockchain is Shaping the Future of the Internet

In the cryptocurrency industry, the introduction of Web3 has had a major influence on creating ecosystems that are more decentralised and tailored towards the user. Now, thanks to its success within the crypto space, Web3 platforms and applications have begun to spread into more mainstream niches as it grows in popularity.

As it continues to reimagine the user experience and decentralise it further, blockchain is playing a massive role in making the transition happen. Let’s dig deeper into how Web3 is leveraging blockchain technologies to shape the future of the internet.

Web2 and Web2 refer to the “present” and “future” of the internet

Web2, also known as the second generation of the internet, refers to the current state of the internet that most people are familiar with. In Web2, users primarily consume content and interact with centralised platforms such asTwitter, Amazon and Google. These platforms are owned and controlled by central entities, which manage and store  the users data.

Web3 represents the next “evolution” of the internet via a more decentralised and user-focused internet. In Web3, users are more empowered, have greater control over their data and can conduct peer-to-peer interactions without middlemen. The underlying technology powering Web3 is often a blockchain, which provides more transparency, security, and decentralisation than other modern systems

Web1, or the first generation of the internet, refers to the early days of the internet. In the Web1 phase, websites were mostly static images and information with limited user participation or contribution. Communication was limited, as users had little ability to interact with the content or engage in online activities – making it a more passive and centralised model of the internet.

Web2 brought about significant advancements in interactivity, user participation and social collaboration via social media, e-commerce sites and global search engines. In Web2, users become more empowered as they can create and share their own content but give more power to the platforms that can collect user data and provide personalised experiences and adverts based on user behaviours.

Web3 brings about a new internet centred around the blockchain and its iterations such as cryptocurrencies, NFTs, DAOs and decentralised finance. In the same way that mobile phones and PCs changed internet usage, Web3 plans to do the same via more interactive, user-centric applications and platforms. Ultimately, Web3 plans on giving the power back to the user.

Web3 is focused on innovation that overcomes the limitations of the current Web2 model via more user-focused digital ecosystems. Aiming to shift power away from centralised authorities and give individuals greater autonomy and privacy, Web3 encompasses decentralised, interconnected networks where users have more control over their data, digital identities and online interactions. 

Web3 also aims to foster innovation, collaboration, and user empowerment through community building and more open, inclusive applications and assets. Through decentralised applications (DApps), which are applications built on decentralised networks and operate without middlemen, innovations such as DeFi and NFTs have helped create new communities that can interact and trade with each other without centralised authorities or outside interference. 

Blockchain technology is playing a crucial role in shaping Web3 and its innovations. It is the foundational technology that enables the decentralisation, transparency and security that differentiates it from Web1 and Web2 and is pushing the space forward rapidly.

Here are some key tenets that define how blockchain is shaping Web3 technology:

Web3 encourages more decentralisation by distributing control and power back to its users. Web3 applications are built on decentralised networks like blockchains where multiple participants contribute to the network instead of relying on a single central authority.

In the Web3 space, individuals have greater control over their personal data as they can choose how and where their data is stored alongside the ability to grant or revoke access. This can be done by blockchain-based decentralised wallets that give owners full control over their assets.

Web3 enables direct peer-to-peer interaction via blockchain technologies. This removes middlemen and means users can transact and interact directly with each other

Web3 utilises smart contracts, which are self-executing agreements that trigger when predefined rules and conditions are met. This enables better automation and programmability, ensuring that transactions and agreements are carried out as intended without relying on intermediaries.

Web3 platforms use cryptocurrencies and tokens as a means of exchange or a share of governance. These assets can represent ownership, access rights, or ownership of digital assets within specific applications or platforms.

To participate in Web3, you’ll first need to invest in cryptocurrencies or digital assets that can be used online. Using the Kinesis Pro exchange, you can invest in cryptocurrencies such as Ethereum, Avalanche and Solana – which have all long-standing,expansive and interactive Web3 communities – and withdraw them to an external web3 wallet to start using DeFi platforms and investing in NFTs.