Web 3.0 will change the direction of the internet. It will restructure how we see the internet. The previous versions, particularly Web 2.0, were mostly a centralized model. This means its architecture is prone to misuse of data, and regulatory censorship. But Web 3.0 is something different. It enables a decentralized model, AI, and decision-making by users- democracy.
Web 3.0 can also be tagged as the third generation of Web services. This protocol will apply to websites and apps that are focused on machine-based modes of data dissemination. It will be used to understand data better to offer a semantic and data-driven web. The purpose of Web 3.0 is to build more open, connected, and intelligent websites.
Note that Web 3.0 hasn't been implemented yet. For this reason, there isn't any solid definition for the web solution. How will Web 3.0 impact the Defi space? This content will highlight what Web 3.0 is about, its vision and how it supports the DeFi protocol.
The Meaning of Web 3.0
Web 3.0 supports an internet that uses peer-to-peer transactions, alongside privacy, monetization, and user-controlled data for a better web environment. Blockchain technology, IoT, and machine learning all play a role in realizing the vision behind Web 3.0. The algorithms for Machine learning have already changed our way of life by connecting data and understanding the link between data points. This technology has made it possible for a computer to make autonomous decisions as an individual will make. Blockchain technology also adds to the vision of Web 3.0 of creating an intelligent Internet.
How Web 3.0 Will Support the DeFi Sector
Below are some of how Web 3.0 will support the DeFi protocol:
Democracy of Data
The Web 3.0 protocol tends to democratize data. The architectural framework of this protocol abandons the current centralized computer model practised by Web 2.0. Under a decentralized model, a group of computer systems will be linked. Each system will have its role defined. It can either serve as a verifier, node, participant, or developer. The important thing here is that all systems connected to the same network will ensure the transparency of data. There will be immutability and time-stamping under the network.
Better Security and Privacy of Data
It is normal for privacy concerns to come up when data is distributed across multiple systems. However, the Web 3.0 protocol tackles this issue with cryptography. All data on the network is encrypted. Hence, it is only a node that has the accurate keys that will gain access. Web 3.0 also promotes secure digital identities which in turn facilitates the privacy of data. All digital identities are anonymous and encrypted. They only exist cross-platform. All ads on Web 3.0 will be consensual meaning users can either accept or decline to see ads. This protocol also facilitates data security because of the data ledger on the entire nodes on the network.
Governance and Verifiability
The current governance model depends on legal contacts to ensure that services are delivered. But the issue involved with implementing contracts is that it is time-consuming and costly. There are too many third parties involved. Although the legal agreement offers protection, there are still some inconsistencies in the system. This is where Web 3.0 comes in. This solution can handle the issue via its trustless governance model with smart contracts. A smart contract is executed once the conditions between both parties are met before commencement.
With smart contracts, your services will be enforced straightforwardly. They will be verifiable. With this solution, you can also get services from any part of the world and pay them directly based on milestones. If this system is practised in the right way, it will reduce the cost of monitoring agreements and auditing transactions.
Web 3.0 was created to produce a new global economic model that is sustainable and scalable by removing the rift between users and providers. Using Blockchain technology will let users manage and settle their transactions early without any need for intermediaries. Additionally, economic incentives, and penalties, make sure that every computer on the network functions correctly.
Generally, DeFi allows users to enjoy lending and a staking ecosystem that imitates traditional financial instruments. One key point to mention here is that with DeFi there's no need to be in any geographical location or gain access to traditional bankings. Network providers such as miners and stakers can verify their transactions and ensure that the network is operating.
We also have NFTs. NFTs, help to protect intellectual property. It allows any person to participate in auctions. In the past, this only happened in private sales. Blockchain technology allows users to value individual contributions more. This will, in turn, incentivize all participating on the network. The brave browser is a good example of this. As we begin to enjoy this new solution, fresh business ideas will emerge. This will be made possible because of the level of freedom that the immutable technology of the Blockchain provides.
Web 3.0 Based Wallets
One example of a Web 3.0 based wallet in Metamask. It is a Web 3.0 wallet that can work on desktop and mobile devices. On your desktop, it can also serve as an extension browser that represents a bridge between the older version- Web 2.0 apps like Chrome, etc. Metamask also allows its users to interact with a broad range of Ethereum DApps without downloading it or running an Ethereum node.
Since wallets make up the pillar of the Web 3.0 model there's active development to ensure that their user experience is streamlined.
The coming of DeFi protocols, and Web 3.0 wallets, has changed the way we view the internet. Most parts of Web 3.0 have come out in their first stage and it includes cloud computing, Blockchain technology, augmented reality, and IoT.
As is the case with Web 2.0, it will take decades for Web 3.0 to be absorbed, not just a few years. The transition from the Web 2.0 model to the Web 3.0 model won't be realized until the key foundations have been put in place.
You can start using Web 3.0 and experience some of its amazing benefits. This will keep you in front of this positive change in direction. Web 3.0 will change how websites are created and how users interact with them.