Web3 was a term first used by scientist Gavin Wood in 2014. Web3 is an idea of a new iteration of the world wide web. This is to incorporate multiple concepts such as blockchain, and token-based economies, operating on decentralised ownership and control.
Web3 has an abundance of opportunities to be explored as part of Web3. This can be seen in the wave of new startups coming through in the sector. There are no shortages of experts either, with people leaving tech giants like Google, Amazon and Meta to join or start businesses within Web3.
It is not experts in tech who are becoming interested in the scope of Web3. There has been a spike in investments too. Only recently, $40 million was committed by a London-based social investment to add Web3-related products to its portfolio.
What is wrong with Web 2.0?
When we think about Web 2.0, its key characteristics are the domination of a few tech giants (Facebook or google, for example) who have surmounted immense wealth and gained significant power.
And this financial gain has been built off users' back—people who create and use the internet but do not benefit financially from the effort. Take Spotify or YouTube; all of the content created is by its user base; however, the smallest fraction of financial gain from this content is given back to the creators themselves. These platforms, including social media platforms, are completely reliant on the user base creating the content in order for their revenue, but those actually creating the content rarely see a return.
What is different about Web3?
Web3 is the demonstration of a fundamental shift towards community-based internet. This is to offer a more peer-to-peer version of the web. This gives all users a chance for genuine ownership rather than being a platform to be advertised to.
Web3 plans to get rid of Big Tech and stop their monopoly and gatekeeping and instead, using blockchain technology, decentralise the web's technical, legal and payment structures. This will make room for new protocols regulating via distributed Anthonomus organisations. The idea is that through cryptocurrency, financial gain is put back into the hands of the digital creators, not the distributors.
However, there is still some scepticism around Web3 working. Some say that the idea is essentially no different to a Ponzi scheme as the reliance on more people is needed, eventually leading to investors' losses. The lack of stability continues to be a concern, and with more investors and government funding looking to invest, there is still more proof of long-term ability yet to be seen.
It is impossible to predict how emerging technologies affect the UK's economy or its impact worldwide. But the fact remains that more and more of the best talent in software engineering are moving away from big tech to join Web3 projects. This, coupled with the continued investment from VC funding, would show that Web3 is no longer just a concept.
If you are looking for the best talent for your Web3 start-up, get in touch.