Web 3.0 is the third generation of internet. Key feature of Web 3.0 is decentralization which leads to technologies such as Decentralized Finance (DeFi), Blockchain & Distributed Ledger.

What is Web 3.0?

Web 3.0 or Web3 is the future version of internet. In Web 3.0, we will directly indulge into the digital world. It is also known as semantic web which will be able to understand us and our context deeper, in such a manner that it will give us the exact information that we want and in the same format we want i.e. it will give us more desired internet experience.

Currently it’s work is in progress. In Web 3.0 there will be individual control of personal data. It can read between the lines to understand the intent behind our online request. It assembles the information just like humans. Therefore it will be of great utility to the users. It is decentralized and open web.

History of Web 2.0 & Web 1.0

The left side, represents Web 1.0, which features a vintage computer with a slow dial-up connection. There is a simple text-based website, and a search engine with limited results. The right side, symbolizing Web 2.0, displays a sleek modern computer, a dynamic, multimedia-rich website, and a search engine with numerous filters and advanced options. There is a stark contrast, illustrating the evolution from a static, one-way information system to an interactive, user-generated, and more engaging experience.

Web 1.0 started in 1990’s. It is a static web or read-only web. Emails started during this time. Interactive pages were not there.

Web 2.0 is the second version of web which is currently going on. It is also referred to as social web. The static pages of Web 1.0 got replaced by dynamic pages of Web 2.0 with features such as social interaction, engagement, user generated content.

Social platforms such as Orkut, Facebook, Instagram, Whatsapp all were developed during this. Billions of people are of these platforms. Banking & Trading are at next level. Data is huge. Mobile devices like iPhones & Android smartphones are key innovations of Web 2.0.

Two important events took place in 2004 which was the starting era of Web 2.0 i.e. Google’s IPO launched and secondly Facebook was developed. Main companies of Web 2.0 like Apple, Amazon, Google, Facebook (now Meta), Netflix are today among the world’s biggest companies based on market capitalization.

A huge number of applications were developed giving opportunity to millions of people to earn on a part time or full time basis by renting their cars, homes, delivering food & groceries, selling of goods & services.

However certain industries and sectors who could not adapt to Web 2.0 model went to loss like retail, entertainment, media & advertising. A new form of marketing has come into boom, known as Digital Marketing. Content marketing has enabled a lot of people to earn money on social media platforms.

Features of Web 3.0 Applications

1. Decentralization

Applications are designed on decentralized network rather than centralized servers. Example Blockchain

2. Ownership of Data

Users have control and ownership on their personal data.

3. Smart Contracts

When the conditions mentioned on the contract are met, those contracts will automatically be executed.

4. No Permission required

Users don’t need to take permission from any central authority to interact with the network.

5. Interoperability

Different platforms & applications can work together over here.

Examples of Web 3.0 Applications

1. Cryptocurrencies

These are digital currencies that works on Blockchain. Example Bitcoin, Ethereum

2. Decentralized Finance Platforms (DeFi)

It provides financial services like lending, borrowing, trading without any central authority in between. Example Uniswap, Compound.

3. Decentralized Applications (dApps)

These include applications running on decentralized networks like social media, gaming which involve digital assets. Example CryptoKitties, AxieInfinity.

4. Decentralized Autonomous Organizations (DOAs)

These include organizations which are governed by smart contracts and where decisions are taken collectively by the token holders. Example MakerDAO, Aragon.

5. Web 3.0 Browsers

These include browsers that give access to decentralized applications and the Web 3.0 environment. Example Brave, MetaMask.

6. Social Networks

These include social media platforms where content is owned by users and can be monetized through tokens. Example Steemit, Minds.

7. Decentralized Marketplaces

These include platforms where you can buy, sell, and trade digital assets like NFTs (non-fungible tokens). Example OpenSea, Rarible.

8. Data Storage Solutions

These include decentralized storage system where data is stored on distributed networks but not on centralized servers. Example IPFS, FileCoin.

Web 3.0 vs Web 2.0

Above image shows comparison of Web 2.0 and Web 3.0 versions of the internet.

Leftside of the image represents, Web 2.0. It is shown as a vibrant, multi-colored world, with an emphasis on social media and user-generated content. The hardware and software are represented by a smartphone, laptop, and an interconnected web of colorful lines.

In contrast, Web 3.0, on the right side is shown as a more advanced, interconnected, and decentralized world. The hardware is represented by futuristic devices like virtual reality headsets and holographic displays. The software features include blockchain technology, AI, and machine learning algorithms.

The two versions of the internet are connected by a bridge, symbolizing the ongoing transition from Web 2.0 to Web 3.0.

What is Decentralized Finance (DeFi)

Decentralized Finance (DeFi) is a type of finance which enable people to do peer to peer transaction without an intermediary in between. It means there is no third party or any central institution involved in the financial transactions. So you don’t have to pay to any central authority like bank for financial transactions. DeFi has secured distributed ledgers just like cryptocurrencies. It uses security protocols.

DeFi is in its starting phase. Therefore it is prone to hacks & thefts.

Applications of Decentralized Finance (DeFi)

In DeFi applications people can use their money for purpose like purchases, loans, gifts, trading etc without a third party intervention. These applications can be installed on a laptop, tablet, or on mobile. People can do financial transactions in any part of the world using blockchain without any third party involved. These financial transactions involve cryptocurrency in exchange of goods or services provided.

DeFi applications can provide basic services like savings accounts and also advances services like providing liquidity to businesses or investors. One such example is Aave where you can give loans to the borrower in the form of crypto-assets thereby earn interest from them. 

Web 3.0 vs Digital Marketing

Currently business rely on advertising, public relations & direct marketing for the promotion of their goods and services. But with the start of Web 3.0, the digital marketing ecosystem will change a lot.

For example, cookies will be removed from the web browsers. Cookies are used to store data about people’s behavior on internet. With cookies removed, it will be difficult for B2B business owners to target their specific audience. As without this information , it would be difficult for marketers to understand their audience and provide them with relevant information.

How Web 3.0 will impact Digital Marketing

1. Customer Data & Privacy

As data in Web 3.0 is more decentralized and secured, the marketers will have to use a different way to collect and store data. That is they have to find a new way to identify and target their audience. This new way should be such that it protects user’s data and maintain their privacy.

2. User Experience

Web 3.0 will provide new user experience which will lead to new strategy for reaching and engaging your target audience. People will be interacting to the online world using augmented or virtual reality.

3. Marketing Strategy

In web 3.0 there will be new challenges and opportunities for Digital marketers as third party cookies won’t be available. So they will need to utilize user data sources. This will help in creating personalized and targeted content.

Web 3.0 and Social Media

With the coming of Web 3.0, some of the platforms are shifting from traditional Web2.0 to modern Web 3.0 version. One such example is Social Media Platforms. In web 3.0 data, content and online interactions will be controlled by the user itself.

Above image shows a futuristic vision of a Web 3.0 social media platform. There’s a meta-reality interface where users can interact with their avatars. The avatars are diverse, with various body types, skin colors, and clothing styles. The background is a digital landscape with floating islands, a futuristic city, and a serene landscape. There’s a dialogue box at the bottom, where one user avatar is sending a message to another.

Multiple Social media platforms have been developed on Web 3.0 that are decentralized and respect consumer privacy. List is as follows:

1. Second Life

2. Mastodon

3. Horizon Worlds

4. Zepeto

Metaverse

It is a virtual world where people interact in the form of their Avatars in 3D environment. It is a digital universe which is a combination of physical reality and digital reality. It runs on technologies like Artificial Intelligence, Virtual Reality and Blockchain. Facebook renamed its brand to Meta and announced that it would focus its future on the upcoming “metaverse.” To know more about metaverse, visit here.

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