Some call it the next phase of the Internet. Some say it’s a quick money scam that will fall apart. But what exactly is Web3?
The phrase “Web3” is widely used to refer to new era internet It will run on the record-keeping technology blockchain, a decentralized public accounting system. In contrast, the Internet’s current iteration, Web2, runs on centralized servers owned by companies.
what is it?
By letting users own their data, Web3 “delivers a read/write/own version of the web where users can have an economic stake and more control over the online communities they belong to” Harvard Business Review.
Investors hope this version of the internet will lead to Data democratization On the network, where all users can scrutinize transactions and contracts. However, venture capitalist Joe Lonsdale said consumers should be skeptical because despite heavy cash investments, mainstream products are yet to come.
Watch PALANTIR co-founder JOE LONSDALE explain why he thinks WEB3 is a “Ponzi scheme”:
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“What a lot of people are saying about Web3 is a Ponzi scheme, which makes no sense,” the Palantir co-founder previously told Fox News. “That said, protocols with decentralized ownership are very interesting.”
Decentralization is a key feature of blockchain, which assigns responsibility for key Internet functions such as server control, transaction confirmation, and time stamping to a network of users rather than Traditional method where all operations are handled by one company or organization.Almost somewhere like amazon web services servers are hosted 30% of the Internet By 2020, Web3 promises to distribute this responsibility among users, fundamentally changing online interactions.
Decentralized digital infrastructure—such as cryptocurrencies like Bitcoin and non-fungible tokens (NFTs)—is designed to be a key component of Web3 and is required for its functionality.
Why does this matter?
“In the long run, having more decentralized power and having something like bitcoin does make sense,” Lonsdale said in a previous interview. Bitcoin “allows misbehaving governments to provide more freedom to the financial system.”
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Meanwhile, Elon Musk expressed skepticism about Web3.
“I’m not saying web3 is real — it seems more marketing buzzword than reality right now,” Tesla CEO tweeted last year.
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Twitter founder Jack Dorsey also questioned the new-age internet.
User “does not own ‘web3’,” he Tweeted last Decemberpouring cold water on the notion that users will be able to monetize their data online.
Dorsey has been working on Competitors of Web3which it claims on its website to be “a more decentralized web platform.”
To watch the full interview with Lonsdale on Web3, click here.
Bradford Betz contributed to this report.