What Is Web3 And How Is It Defining 2022?

5 min readFeb 14, 2022

If you don’t know this yet, Web 2 platforms collect your data and use it as they please! An example was when Facebook faced backlash for using people’s data for political purposes. However, there is a way to stop such things from happening.

As people begin to realize the importance of data protection from third parties, the need to create another version of the web has intensified. We call it “web 3”, and it has the potential to give people a better option in data privacy. Also, users have full ownership and control of what they create.

So, let’s talk about web 3 and how it could shape 2022.

What Is Web 3?

Web 3 is also known as the decentralized web. It’s a new version of how things work on the internet, with web 2 and web 1 being older versions of the internet.

Understand the difference between the three:

Web 1 — This was the first version of the internet. Back in the day, internet websites were static pages. Users could not interact with them. You can think of it as a Read-Only page.
Web 2 — Around 2004, new features were introduced to web pages that greatly improved the experience of internet users. This is called web 2, and its launch allowed users to interact with a web page. Users can now access a web page and make changes. Such changes would reflect on the page, and every other user would be able to see it. This development brought about the likes of Facebook (now Meta), Twitter, Uber, and all the big brands we know today.
With the evolution of crypto, people have started to see the rise of this new version of the internet called Web 3. It allows users to protect their data while on the internet, and allows a decentralisation of web platforms.

Web 3.0 is being built on blockchain technology, which is maintained without a central authority.

A blockchain also uses distributed consensus, which makes the system extremely secure.

The development of Web 3 is not fully formed yet, but a good number of people are beginning to understand how it can be developed. Of course, some hurdles still need to be crossed before a fully functional decentralized web can be achieved.

Why Is Everyone So Excited About Web 3?

When a web page is decentralized, it provides its users the opportunity to choose not to provide little or no data about themselves. It also means no organization is collecting your information.

Every operation or activity is carried out on the blockchain. It’s between you, a set of computers, and who you want to interact with.

Remember that today all your data is held in a centralized system owned by Facebook, Amazon, or Twitter. There are several pitfalls with that:

These companies have been monetizing your data. You do not control your private information.
These systems are highly prone to hack and downtimes (remember when Facebook was down for hours and there was no access to Whatsapp and Instagram… That wasn’t a great experience).

Web 3 can solve these two common problems.

How Web 3 Will Impact The Everyday User

From a user’s perspective, web 3 will mainly change how you interact with a system. For example, rather than going through an intermediary, you will be able to engage directly with a website.

A good example would be NFT marketplaces. You might have tried to access one, for instance, OpenSea, or Raible. If you want to engage with these websites, you do not need to enter your name, email, address, password.

All you have to do is connect using your Blockchain wallet. The NFT platform does not collect your identity information. Instead, it simply uses your wallet (i.e., your crypto keys) to identify you as a user and allows you to engage with the system.

There are many other examples of what Web 3 could do to improve a user’s experience. However, some of the most common things people are talking about today are:

Decentralized Finance (DEFI)

The goal with Defi is to create an ecosystem where users can interact with financial products without the need for a central authority while at the same time maintaining security and control. To engage with the platform, users will provide their wallets as identifiers.

Blockchain Wallets

Blockchain wallets are powerful because they can communicate with decentralized applications and ensure that the user has the funds required to make the transaction.

The main reason you need a traditional bank during payment is to facilitate the process by sending funds from one of your accounts to the other person. With blockchain wallets, this process is done using an algorithm.

A Secure And Trustable Algorithm

You don’t have to trust the user on the blockchain. You need to trust the algorithm (and this algorithm can be audited as it is open-sourced, which further ensures the security of the system).

These are three of the most known use cases, but there are many more popping up each day, like:

Limitations Of Web 3

Web 3 still faces some limitations. Mainly, URLs, DNS, and data storage questions still need to be solved.

Solutions are starting to appear with the likes of IPFS (InterPlanetary File System), which can support the decentralization of the infrastructural layer, which is today the biggest challenge.

What To Expect In 2022?

In 2022, more users will likely warm up to the idea of decentralized finance, decentralized internet, and dApps. People are joining the community and earning a good income. Amrit Pat Singh broke that record last year, making 1 million by selling NFTs.

This story shows many people there is a money-making opportunity in dApps. Someone who makes their first million dollars from DeFi most likely would want to invest more in DeFi or related sectors. I mean, who would not be interested? We have seen the sale of Beeple — a piece of artwork — go for $69.3 million.

Another reason for the potential massive growth of Web 3 and other dApps is the interest of the US legislation in putting in some regulations. Depending on the laws put in place, it can be a blessing or a curse. However, if it happens, it shows more governments bodies or organizations will accept the idea.

As more users join and the adoption becomes mainstream, new trends will emerge too. Existing limitations might get new solutions. One of them is probably the scalability of the Ethereum network. It might improve, and the L1 change could experience greater growth than we saw last year.

Conclusion

Although web 3 is still in the early stage, the potential and benefits are too great to ignore. This new version of the web protects its users’ privacy and data while distributing control and ownership. When the application of web 3 becomes mainstream, it will offer its users greater freedom and better security than they’ve always got.