The year is 1993, and the first World Wide Web is released, opening the door to a free and user-friendly way of accessing the nascent information network. A wave of euphoria, followed by multiple changes, occurred within society. Today, thirty years later, Web 3.0. is already released, closely followed by the same reaction. Individuals are thirsty for this technology's innovative character, constantly peaking behind it, intending to reveal its potential. Therefore, we decided to favor curiosity through this article, outlining the characteristics of this technological innovation by listing the latest trends in Web3.
With Blockchain as its defining technology, Web3 is set to be a game-changing evolution of the Internet. This decentralized ecosystem offers increased security, trust, and privacy protection for users. Web3 incorporates advanced technologies like machine learning, decentralized ledger technology, and big data, enabling smarter processing of information by websites and applications, which promises to be more user-friendly and effective.
And whilst control over the data seemed futuristic just a couple of years ago, today, with Web3, it is a fact. Web3 prioritizes its users, and this prioritization reaches beyond just personalized interfaces. It disrupts business models leaving the first permanent traces of the new democratized technology world.
Web 3.0 blockchain is expected to impact almost every industry ubiquitously, invading various professional fields. The technology has already outlined its effectiveness in ensuring the security of cryptocurrencies and NFTs, and its adoption is now forecasted for tokenizing applications. Web3 outreaches virtual reality, commonly related to the technology vision, and offers multiple revolutionizing solutions.
As outlined above, Web 3.0 involves new standards of data usage and protection, rapid and efficient processing of information, and an increase in transparency. Therefore, Web3 will bring with itself not only the innovative sparkle for opportunities but also will be directly implemented in how companies operate. At a certain point, distinguishing the impacts of the technology from the operating flow of particular industries will be impossible.
The potential of Web3 is undoubtedly ubiquitous. However, the high number of promising prospects put in shadow the characteristics of Web3 that are already a fact. Within this section, we aim to outline and underline these core characteristics by listing 20 Web3 industry trends. Take a peak into the present and future.
Decentralization is within the core heart of Web3. In contrast to the previous versions, Web 3.0. aim to give more control to the users and builders of the network by decentralizing governance, transaction, and infrastructure. Decentralization implies no central control over users’ activities, but the control will be distributed between builders and users. This completely contrasts with the current Internet, primarily controlled and owned by centralized entities. The decentralization will be achieved through critical infrastructure components such as storage in a resilient global network that an entity or individual cannot control or take down. This will bring users’ trust in the Web back, allowing them to communicate confidently, create, and explore within the digital space.
Blockchain is the generating engine behind the decentralized character of Web3. In fact, the technology is considered the cornerstone for web 3.0, especially in its ability to revolutionize data structures in the backend of the web. Blockchain technology provides a means for web3 users to engage with various online services in a peer-to-peer network environment. Generally, blockchain is a complete game-changer in the aspect of conventional data storage and management methods. The unique state layer that the technology provides is collectively managed, enabling efficient peer-to-peer transactions without intermediaries and in a copy-protected manner.
The first traces of AI on the changing character of the Web are already noticeable. Artificial intelligence is a promise for user-oriented digital space – a focus on user experience. This technology enables the creation of intelligent machines that mimic human behavior, solve technical issues without a programming need, and learn from experience. AI provides Web3 users with faster and more accurate information, which enables them to make better-informed decisions and navigate decentralized platforms more efficiently. Artificial intelligence algorithms power search engines with web recommendations based on user preferences, leading to more personalized experiences.
In contrast to the previous web versions, including Web 2.0, if a single word should define Web3, it would be ‘semantic.’ As a consequence of AI with its subset Machine Learning (ML), Web3 is able to think, act, and respond as a human being. The semantic web shares and stores data using a resource description framework (RDF). RDF describes and shares metadata, facilitating the standardized exchange of data based on relationships. With a richer pool of information, the semantic network provides more profound and focused answers to its users. Meaningful engagement with the technology is the generating goal of the semantic network.
Cloud technology is an integral part of Web3, bringing commodity to the users of the technology and completely revolutionizing the way information is being used. Cloud computing has been primarily used for data storage, where users rely on third-party cloud operators to store their data and access it remotely without the need to keep it locally. This technology enables individuals to access applications and information from anywhere globally, transforming the workflow as well as the way information is used for personal purposes. The practices, habits, and skills related to information and data usage and management have been deeply modified. Further, cloud computing has also enabled users to rent computing resources to facilitate their machine learning model training.
Another major solution provided by blockchain technology enables brands to adopt creative approaches by creating their own NFTs. As a regulated industry, businesses and consumers are required to access banks in order to interact with financial services. As Web 3.0 becomes more prevalent, blockchain technology is becoming a conduit for secure transactions beyond just cryptocurrencies and NFTs. As blockchain technology offers a promising solution to small businesses, adoption will eventually become ubiquitous.
As outlined above, Web3's main objective is to serve its users, and its services and features are oriented toward the same scope. Low-code development refers to the creation of software or applications with a minimal need for writing code. Instead, this method relies on a visual programming approach involving drag-and-drop interfaces or connecting different software applications through APIs. In this way, the software development process is streamlined and simplified to a great extent, enabling regular users to transform and change features effortlessly.
The centralized characters of Web 1.0 and 2.0 served as proof that under the control of several key entities, censorship can suppress the regular user’s voice. Throughout the years, censorship has taken various forms, often hidden behind terms of service, corporate policies, and unclear public statements. It was encountered within search engine results, social media posts, content moderation practices, and many others. Web3, however, is the promise of a brighter, more transparent digital future. The technology empowers users and providers equally, resulting in a more democratized digital world.
Web3 technology will introduce immersive 3D environments that provide an authentic, lifelike experience. As a result of Metaverse, users can engage in various activities, including games, socializing, attending live virtual 360 events, watching television, and interacting with new types of educational content. In addition, users are able to create and customize their own avatars. In the metaverse, there are experiences that are above what's readily accessible. It's a page that's open and still unwritten. The potential for growth in this technology is immense, and Web3 is leading the charge in this transition.
With the use of NFT collections, fashion collections are becoming increasingly digitally connected, bridging the gap between the physical and virtual fashion. By using these collections, physical products can be connected to digital collectibles. The fashion NFT can take many forms, including virtual garments that customers can wear in virtual environments, interactive digital content, and digital replicas of physical items. Several luxury fashion brands have already begun exploring the digital space and integrating NFTs into their product lines and marketing campaigns, including Dolce & Gabbana, Gucci, Louis Vuitton, and Burberry.
The Metaverse includes many virtual advantages building a completely new world, which in fact, resembles the real world. As businesses create authentic (workplace) environments that mimic their physical workplaces, employees are provided with avatars to communicate with, and meetings and conferences are held in a similar manner. The Metaverse is a more convenient reflection of our world, just a click distance. A wide range of fields has been digitalized, which allows Web3 to move your office to your home.
During the last couple of years, tokenization has gained significant popularity. In simpler terms, tokenization of assets involves creating digital tokens on a distributed ledger or blockchain representing physical or digital assets. Investing in this new method of wealth management is especially appealing since it ensures unchanging ownership. The tokenization of assets provides assurance in terms of traceability and security. Due to its immutable nature and use of cryptography, the blockchain safeguards data. Both buyers and sellers benefit from this, as it provides an additional level of protection.
The Web3 identity and digital assets serve as the bridge between influencers and companies. Conversely, Web3 social media platforms offer influencers and brands various channels to reach their customers, thereby enhancing their exposure. As a result, their fans have a better experience, ultimately leading to more profits. The NFTs provided by decentralized social media platforms ensure fair pricing for creators through better monetization systems.
A major challenge to the widespread adoption of blockchain technology has been its significant energy consumption. In response, web3 companies are investing in eco-friendly practices and operations as a way to compensate. An example of this is Plastiks - an NFT marketplace that seeks to act as a connection between plastic manufacturers and recyclers.
Increasingly, leading institutions and innovators are recognizing the benefits of web3 technology in enabling more transparent, interoperable, and efficient climate markets. Furthermore, it enhances emerging markets' resilience against climate-related risks.
Web3 payments are a type of decentralized finance (DeFi) that use secure ledgers to facilitate money transfers. Payments on Web3 facilitate direct money transfers between users without intermediaries, maintaining the platform's privacy and democracy. Using it, you can send money quickly, securely, and anonymously. As part of Web3, individuals will be able to send money to others without signing up for financial services, eliminating the bureaucracy associated with money and financial transactions.
Web3 will heavily depend on the trust users have in crypto exchanges to safeguard their assets. Proof of Reserves is one effective audit mechanism that can verify that exchanges have the necessary reserves to support user deposits and liquidity. Although Proof of Reserves has been a useful mechanism for verifying that exchanges have sufficient reserves to support user deposits and liquidity, some exchanges have avoided their liabilities by only disclosing their crypto holdings. For this reason, a new trend in web3 is emerging, focusing on the development of Proof of Liabilities to enhance trust in centralized exchanges and complement Proof of Reserves.
Introducing NFT memberships is a new way for brands to demonstrate exclusivity and reward loyal customers. Access is granted to exclusive places, groups, and organizations through them. NFTs differ from traditional cryptocurrencies because they represent unique assets that cannot be swapped for other tokens. The NFT membership model has the potential to completely transform how people access and own digital assets. Membership-based systems enable brands to simplify access to digital assets, such as artwork or games, and enable more secure and efficient transfers between NFT users.
A new level of personalization is possible with the combination of virtual experiences and web3 technology, providing unique information that enables personalized experiences. In the future, Blockchain technology will play an increasingly important role in advertising and marketing. As a result of its decentralized ledger technology, companies can better manage their data, gain deeper insights into audience interactions, and build more meaningful relationships with their customers. With on-chain data, behavioral profiles of users can be developed that can predict their needs accurately. This allows for the creation of customized experiences that are tailored to delight users. The NFT has evolved from being a tool for commerce to representing the individual's identity.
Web3 provides multiple innovative solutions for web developers by enabling easy integration and interaction between different web pages and technologies. Creating web-based APIs that connect to blockchain-based technologies offers web developers an excellent opportunity to create more complex web applications. Web3 allows web pages to communicate and exchange data securely, simplifying the data exchange processes. Furthermore, Web3 technology offers enhanced scalability, so websites with a large user base can handle large traffic volumes without performance issues.
With the advent of Web3 technology, Decentralized Autonomous Organizations (DAOs) have emerged, offering a more democratic, resilient, and efficient method of governance. Faceless governance ensures that all members of DAOs have equal rights and are free to express themselves in an unbiased and diverse community. To govern communities in 2023 and beyond, we can expect DAOs to be integrated into various applications such as social media, gaming, DeFi protocols, and others. Even though decentralized governance is currently limited to Web3, it establishes a high standard for democracy outside the virtual realm. We can be certain that Web3 will continue to influence societal perceptions of governance for a long time.
Although Web3 has achieved great progress and integration, it continues to be a mystery for many. A high wave of euphoria and hope surrounds the new version of the web, provoking speculations, forecasts, and doubts. Since Web3 goes beyond its already-expressed characteristics, it is still hardly defined. Nevertheless, Web3 appears to be decentralized, data-driven, and intuitive from its outline.
Because of its ubiquity, Web3 will soon reach every industry in one way or another. Tokenization of physical assets, NFTs, and secured transactions are just the trailer for Web3. Despite the high number of Web3 promises, much remains unknown. One thing is certain - these Web 3.0 trends are just the beginning.