Unit
- Web 1.0: Read-only static web where content was served from central servers. Users consumed information without interaction. Examples include early corporate websites and simple portals.
- Web 2.0: Read-write web with user-generated content, social media, and centralized platforms. Companies like social networks own user data and control access. This model created walled gardens and data monopolies.
- Web 3.0: Read-write-own web where users control their data and digital assets through blockchain technology. Decentralized applications (dApps) run on peer-to-peer networks, eliminating single points of failure.
- Key driver of Web3: Blockchain provides a trustless environment where transactions are verified by consensus rather than by a central authority. This enables new economic models like tokenization and decentralized finance.
- Identity and ownership: Web3 uses cryptographic wallets as identity. Users sign transactions to prove ownership of assets without revealing personal information. This concept is called self-sovereign identity.
- Token economics: Native tokens incentivize network participants. For example, miners or validators earn tokens for securing the network, and users pay fees for transactions. Tokens can represent assets, voting power, or access rights.
- Interoperability: Web3 protocols are designed to be composable. Smart contracts on one blockchain can interact with others via bridges or cross-chain messaging, enabling a rich ecosystem of interconnected dApps.
- Challenges: Scalability, user experience, and regulatory uncertainty remain significant hurdles. Layer 2 solutions and improved tooling aim to address these issues, making Web3 accessible to mainstream users.
- Decentralized governance: Many Web3 projects use DAOs (Decentralized Autonomous Organizations) for decision making. Token holders vote on proposals such as protocol upgrades or treasury allocation. This replaces hierarchical management with community driven consensus and transparency.
- Decentralized storage: Web3 applications often rely on peer to peer storage networks like IPFS or Filecoin. Instead of a single server, files are split into encrypted chunks stored across many nodes, ensuring censorship resistance and persistent availability without centralized control.
- Oracles and real world data: Blockchains cannot access external data natively. Oracles like Chainlink bridge off chain information such as price feeds or weather data into smart contracts. This enables decentralized finance and insurance products that react to real events.
- Smart contract security: Because deployed code is immutable, vulnerabilities can lead to irreversible loss of funds. Best practices include formal verification, thorough auditing, and using established patterns like checks effects interactions. Bug bounties and insurance protocols provide additional safeguards.
Code Example
JavaScript
// Connecting to a blockchain using ethers.js
const { ethers } = require('ethers');
async function connect() {
const provider = new ethers.providers.JsonRpcProvider('https://mainnet.infura.io/v3/YOUR_PROJECT_ID');
const blockNumber = await provider.getBlockNumber();
console.log('Connected to Ethereum. Block:', blockNumber);
}
connect();This snippet shows how to connect to the Ethereum mainnet using ethers.js. The provider acts as an abstraction for the blockchain network, allowing you to read state without running a full node.
Quick Revision
- Web3 represents the read-write-own paradigm shift from centralized platforms to decentralized networks.
- Blockchain provides trustless consensus, enabling users to control their data and assets.
- Cryptographic wallets serve as identity and allow secure transaction signing.
- Token economics align incentives among network participants.
- Composability and interoperability allow dApps to build on each other.