Winds are taking a new direction.
Web 2.0 offered us a lot.
It showed us how participatory culture can take the web experience to new heights.
We took a step forward from Web 1.0.
But now it’s time to take a leap.
A more secure online world where privacy is not a concern.
Where we as users are owners and no one in charge is setting up rules for us.
And finally, we are entering the era of Web 3.0.
It’s here to make the internet a better place for users.
And ofcourse open up tremendous opportunities for Entrepreneurs.
In this article, we will understand -
- What is Web 3.0? (also spelled as web3) - in simple words
- How do things in this new world work?
- What opportunities does it offer to Investors and Entrepreneurs?
Let’s look at it in a systematic way.
What Is Web 3.0?
Diving straight into Web 3.0 will be as complex as trying to understand the latest episode of a television series without watching the earlier ones.
Thus, in order to make things digestible, let’s look at how things in Web 1.0 and Web 2.0 are and how Web 3.0 has the power to transform the online world.
Web 1.0 - The Beginning
No exact definition of Web 1.0 existed until the concept of Web 2.0 arrived.
It is so because there was no established parameter to benchmark the World Wide Web technology back then.
Having said that, the earliest form of the internet that ever came into existence is what is widely referred to as Web 1.0. Especially the version of the internet between 1994 to 2004.
Web 1.0 was a World Where -
- Limited people or organizations published the content and users consumed it passively.
- Websites were static with no scope for dynamism.
- Any form of interactivity or responsiveness was absent.
And no, Web 1.0 is not some ancient discarded technology. It co-exists even today with Web 2.0 and Web 3.0.
Any form of website that is static, ‘read-only’ and non-interactive falls under the Web 1.0 model.
These Are Few Web 1.0 Platforms -
- Thesis Publishing Sites & Online Journals.
- Sites simply displaying Corporate Profile Information.
- Personal Usability Sites like LiveJournal, MySpace, etc.
- Directories and Classified Advertisement Sites like Craigslist.
Shortcomings of Web 1.0
- There was no connection between the user & the content publisher.
- No means to verify the information.
- It was a one way communication and had no scope of interactivity.
Web 2.0 - The New Possibility
Things changed 2004 onwards.
And the time came, when we all became virtually social beings!
While Web 1.0 created a huge gap between content producers and content consumers, Web 2.0 made consumers as creators.
The online world as we know and see today falls under the Web 2.0 stage of technology.
Web 2.0 is a World Where -
- The content on various online platforms can be created & shared by the users.
- People can transact & interact on the internet.
- There are web and mobile apps besides web ‘sites’ that are dynamic, responsive and functional.
- Cloud computing flourished and made its mark.
Web 2.0 opened up a new possibility.
A possibility of better internet, better user experience and better interoperability.
Web 2.0 emphasizes on user-generated content and promotes participatory culture.
It kicked out the boring static web pages and introduced dynamism in the world of the internet.
These Are Few Web 2.0 Platforms -
- Social Media Sites like Facebook, LinkedIn, Twitter, etc.
- Content Platforms like YouTube, Medium, Spotify, etc.
- Informative Database Sites like Wikipedia, Rotten Tomatoes, IMDB, etc.
- Forums like Quora, Reddit, Discord, GitHub, etc.
But still, Web 2.0 didn't democratize the internet in the true sense.
How? Let’s see.
Shortcomings of Web 2.0
- Privacy and Security are the major concerns in Web 2.0 as the user activity is tracked and the data is sold to the advertisers.
- The platforms are owned by a particular individual or an organization where they have the authority to set & manipulate the rules.
- The highly centralized nature of ownership on the internet is subject to biases and restrictive usage rights.
And out of these shortcomings, Web 3.0 was born!
Web 3.0 - The Revolution
Imagine an online world where there are platforms of which there is no individual or a single organization in charge, yet everyone trusts each other and sticks to a certain set of rules (protocols) to keep it authentic and functional.
You yourself (and others like you) are the consumer, the creator, and most importantly - the owner.
You have full control over your activity and what happens with your content.
No middlemen. No privacy violation. No censorship.
Interesting? That’s how the world of Web 3.0 looks like.
Democratizing the internet in a true sense!
Web 3.0 is a World Where -
- Every platform works on a decentralized model ie. is permissionless and no single entity owns or has an authority over it.
- It is open for all and no dependency on a single hardware source (like hosting servers) is there as the servers are distributed across user devices.
- There is no need for a third entity monitoring ‘trustworthiness’ as there is no usage of a modifiable database, thus making it trustless.
But before you get the picture clear in your mind, it’s important to know what technology makes such a world possible for us.
It’s the blockchain.
Remember - Blockchain Is The Backbone of Web 3.0.
What Is a Blockchain?
To set the context right, it’s important to know that blockchain as a structure is an alternative to databases.
Database is an organized collection of information that is stored on a single server (hardware) which we can access electronically through the internet.
Database is the core of Web 2.0.
In a typical database, information is stored in the form of a table.
But things become interesting in Web 3.0.
Here, we use blockchain over databases.
Information is not stored in the form of a table, but in chunks (known as blocks).
Here, we ditch the dependency on a single server and store information across the nodes of computer networks.
How Does Blockchain Work?
- Whenever a transaction happens, it first needs to be verified by miners spread across the globe. This act is called - mining. (they are incentivized for doing that)
- Once it is verified, the information is recorded and stored digitally in a group of blocks - one by one.
- When the storage capacity of one block is filled, it is closed and a new empty block is opened to continue storing the information.
- Once filled, the new block is then linked to the previous block and the process continues till complete information is stored. These linked blocks form a chain, thus - the blockchain!
- Every block has a timestamp on it and once it’s added to the chain, the record is irreversible, irreplaceable and non-modifiable.
It is due to this technology, that the functioning of cryptocurrency, NFTs, dApps, etc. takes place.
The Web 3.0 World Sits on the Foundation of Blockchain Technology.
Now you must be having a burning question.
“Is there any company or a platform that is already utilizing web3 technology?”
Yes there are plenty!
Let’s take a look at some of them.
These Are Few Web 3.0 Platforms -
- Cloud Storage Networks like Sia, Filecoin, Arweave, etc.
- Data Exchange Networks like Ocean Protocol, Streamr, etc.
- Web 3.0 Domain Registrars like Unstoppable Domains, ENS Domains, etc.
- Talent & Content Networks like Braintrust, Audius, Mirror, etc.
How To Make Money From Web 3.0?
New technologies always bring new business opportunities.
Opportunities to solve problems, or be a part of the solution and generate massive wealth in return.
Web 3.0 is no exception.
How can you grab the opportunity? Here are a few ways.
- Become a Miner - As you get incentivized by verifying the blockchain transactions, you can do mining and make money (in a form of crypto) out of it. For being able to do this, you might need the necessary hardware.
- Build dApps - What apps are to the Web 2.0 world, dApps (or decentralized Apps) are to the Web 3.0 world. If you have an amazing business idea, you can build dApps using smart contracts, and can create a reliable stream of income.
- Create and Sell NFTs - If you have a creative eye and are a designer, creating your own NFTs and selling them on marketplaces can generate huge income for you.
- Build SaaS Tools - You can build tools that integrate Web 2.0 apps with Web 3.0 instruments through APIs and charge a retainer fee for doing that.
- Become a Blockchain Developer - We know it’s not easy as blockchain development needs a lot of skills and knowledge. But if you’re willing to put efforts to acquire it, it is one of the highest paid skills in the world.
- Sell The Data - In web3, you can very much sell any form of data, be it your own browsing history and make money out of it.
- Get Paid to Watch Ads - You can use a browser like Brave Web Browser and allow it to show you the ads. It’ll incentivize you to give the attention to the ads in the form of tokens.
- Trade or Invest in Cryptocurrency - This is the most popular way as we see a lot of newbies and enthusiasts stepping into this territory. Bitcoin, Ethereum, Tether, etc. You know it!
How to Invest in Web 3.0?
Web 3.0 has lucrative investment opportunities if all you want to do is identify the right instrument & the right time, invest your money and passively wait to see it grow.
Though no one can guarantee you returns here, if you have the risk appetite, it can turn out to be the best ones in your portfolio.
NFTs (Non Fungible Tokens) came into existence when in 2014, Kevin McCoy minted the first token called Quantum which was a mesmerizing piece of artwork.
The concept of NFT is not as complicated as it sounds.
It’s the technology of owning digital artwork or any type of digital content.
If you are an artist yourself, you can go ahead and mint your own NFT.
But if you just want to own a brilliant piece of work with the hope of selling it for much more (millions?) in the future, you can look at NFT as an excellent investment instrument.
Here's how you can buy or sell NFTs.
But keep in mind that you need to have an eye for creativity to identify the gem whose value can increase over time.
No point in spending money on something that you can just flaunt about later.
You know, in reality, it's all about the place.
If you are in the right place at the right time, you can encash the opportunity in a big way.
Investment in the Metaverse is just like that.
You can literally invest in Metaverse Real Estate ie. buy a virtual place for yourself in the Metaverse. Yes, exactly how it’s done in the ‘real’ world estate.
But how will the value of your Metaverse property be decided?
Well, you can use your Metaverse property to advertise your or other brands in future, thus, making it more valuable.
The closer the place is to the high traffic area, the more will be the value.
Metaverse is nothing but a new way of experiencing the internet, where there is a whole virtual world with real people interacting with it (and each other) as digital avatars.
We know it sounds crazy, but Web 3.0 is already here to make it possible.
The day is not far where transacting with the Metaverse will be just a usual thing as messaging each other on WhatsApp.
Cryptocurrencies also called as crypto coins are nothing but peer-to-peer currencies layered on the blockchain technology.
It was in 2008, that the first cryptocurrency - today popularly called as Bitcoin was minted and web3 was born!
If you are into day trading, you can learn to technically analyze and recognize the patterns of its highs and lows and churn money out of it.
Or else, if you understand how cryptocurrencies function fundamentally, you can invest in it and hold it for a long time till it grows.
Once you see a significant growth, you can either sell it in exchange for a fiat currency or use it for other transactions.
Some of the popular crypto coins are -
- USD Coin
We all know that investments are subjected to market risks. We’ve heard that a lot of times at the end of mutual fund ads.
But in Web 3.0, the market is even more risky and volatile.
But again, as we all know - higher the risk, higher the returns.
Just make sure that you don’t invest in something that you don’t understand.
Web 3.0 FAQs
We know after going through all the above explanations, you still have some questions lingering in your mind.
How can we let you go from here confused?
Get them answered right away.
Does Web 3.0 Already Exist?
It was already knocking on our doors for a decade. But now we can say it has stepped in. (Not fully in though.)
What we mean by that is - cryptos, NFTs, they all are part of Web 3.0.
You can go and purchase those crypto coins or mint NFTs. You can even own a fraction of real estate through crypto based REIT (Real Estate Investment Trust).
So Web 3.0 is very much a reality.
But looking at the way things are going on here ‘user experience’ wise, it will still take some time to become mainstream.
Is Web 3.0 a Good Investment?
That depends on what’s your context of ‘good’ investment.
Are you interested in investing in the technology that can revolutionize how the world functions in the future?
Or do you simply want to encash the new trend that’ll quickly yield you more profits than other instruments?
Here’s the simple answer.
If you fully understand how blockchain works and are ready to invest in the hazy but promising future, then trust me, Web 3.0 has way more earning potential than Web 1.0 & Web 2.0 combined.
But if you don’t understand how things work in Web 3.0, then hold yourself back, learn more about it, and then make a decision.
All things said & done, it’s definitely not going to be a safe investment with guaranteed returns. So once you put your money in, you need to be ready to go on a roller coaster ride and still keep patience.
Where Can I Buy Web 3.0 Crypto?
You can make use of any cryptocurrency exchange platform like Binance, Coinbase or BlockFi.
But as you need a wallet to store your money while transacting in a physical world, you need an e-wallet for storing & transacting crypto.
You can get yourself a MetaMask wallet to store or transact your crypto tokens.
Then you can use your fiat currency (ie. rupees / dollars / etc.) to buy Web 3.0 crypto tokens through crypto exchange platforms.
Is Web 3.0 and Metaverse the Same?
No they aren’t!
Because Web 3.0 is all about using (blockchain) technology to decentralize the internet. It’s more about giving the ownership & control in users’ hands.
Metaverse is all about the experience.
Imagine yourself surfing through the internet, not through a flat smartphone or computer screen, but through VR (Virtual Reality) technology. It’s a virtual world all together where you interact as a digital avatar.
That’s the idea of Metaverse my friend!
Start Your Entrepreneurial Journey In Web 3.0
By now you must have got a clear picture about what web3 is and how things work in it.
No doubt it has the power to take the internet user experience to a new level.
What’s more interesting is the massive opportunity it offers to Investors as well as Entrepreneurs to make it big in the coming days.
But simply having a will or an amazing business idea isn’t enough to make things work in the Web 3.0 world.
You need to start from somewhere. And it’s still foggy terrain with higher chances of getting lost.
So you need someone who has been there, done that - to hold your hand and guide you to startup.
If you have an entrepreneurial mindset and want to build, launch and successfully grow your Web 3.0 Project, you can consider applying for our next - 0xCamp.
It's a FREE 3-week IVL & 1-day IRL web3 incubation program where you'll be able to get coached by the leaders of the space.
And yes, we're sure it's a perfect path for dragging you out of the Web2 zone and setting you up for success in the Web3 world.
Have any questions related to Web 3.0 or Entrepreneurship in general?
Shoot us a mail at - firstname.lastname@example.org and we'll make sure to answer ASAP.