Nocturnal Works decentralised finance (DeFi)

web3

Understanding Web3: Definition, History, Key Figures, and Trends

What is Web3? A New Era for the Internet

Web3, also known as the decentralised web, represents the third major phase of the internet’s evolution. It is built on blockchain technology, offering decentralisation, transparency, and user control over data. Unlike the centralised nature of Web 2.0, where platforms like Facebook, Google, and Amazon dominate, Web3 envisions a peer-to-peer ecosystem where users have ownership of their data and digital assets. In Web3, applications (often referred to as decentralised apps or dApps) operate on open protocols, ensuring that no single entity controls the network.

The History of Web3: From Web 1.0 to Blockchain-Driven Internet

The journey to Web3 began with the rise of Web 1.0 in the early 1990s, a period characterised by static websites and limited user interaction. Web 2.0, starting in the mid-2000s, introduced the era of interactivity and social media, where user-generated content flourished, but data became centralised in the hands of a few corporations.

Web3 emerged as a response to the drawbacks of Web 2.0, particularly the concentration of power and control over user data. The introduction of blockchain technology, especially Bitcoin in 2009, laid the foundation for this shift. Ethereum, launched in 2015 by Vitalik Buterin, further propelled the Web3 vision by allowing smart contracts and dApps to be built on its platform. Web3 as a term gained popularity in 2014, primarily attributed to Gavin Wood, one of Ethereum's co-founders, who described it as a way to create a more decentralised and democratised internet.

Key Figures in Web3 Development

Several notable individuals have played pivotal roles in the development and adoption of Web3 technologies. As mentioned, Gavin Wood is one of the most significant figures, credited with co-founding Ethereum and later founding Polkadot, a blockchain interoperability platform designed to address some of the limitations of earlier blockchain systems.

Vitalik Buterin is another key individual in the Web3 space. As the creator of Ethereum, his contributions to the field of decentralised applications and smart contracts have been foundational to the Web3 ecosystem.

Other influential figures include Juan Benet, who created the InterPlanetary File System (IPFS), a decentralised storage protocol that is often linked to Web3’s infrastructure. Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, has also been instrumental in promoting blockchain and Web3 solutions globally.

Key Research and Innovations Driving Web3

Research in blockchain scalability, privacy, and security continues to drive Web3’s evolution. The scalability problem, where blockchain networks struggle to handle a high volume of transactions, has been addressed by projects like Ethereum 2.0 and Layer 2 scaling solutions such as Optimism and Arbitrum. Research into zero-knowledge proofs (ZKPs) has also provided promising ways to improve privacy in Web3 applications without compromising transparency.

Furthermore, the concept of decentralised finance (DeFi), which allows users to conduct financial transactions without intermediaries like banks, has seen significant research and innovation. Platforms like Aave and Uniswap have demonstrated the power of DeFi in disrupting traditional financial systems. Decentralised Autonomous Organisations (DAOs) are also an area of increasing focus, enabling decentralised decision-making and governance within Web3 communities.

Current Trends in Web3 Development

Web3 continues to evolve, with several emerging trends shaping its future. One of the most notable is the rise of Non-Fungible Tokens (NFTs), which have brought blockchain technology into the mainstream. NFTs allow for the ownership and transfer of unique digital assets, such as art and collectibles, and have spurred new business models for creators and artists.

Another significant trend is the development of interoperability across different blockchain networks. Projects like Polkadot and Cosmos are creating infrastructure to enable various blockchains to communicate and work together, solving one of the long-standing issues of fragmentation in the blockchain space.

The transition to a more user-friendly Web3 experience is also underway. This includes the creation of tools and interfaces that make it easier for non-technical users to interact with dApps, NFTs, and decentralised finance platforms. Wallets such as MetaMask and platforms like OpenSea have been crucial in lowering the barriers to entry for the average user.

The Future of Web3

The future of Web3 is poised to radically change how we interact with the digital world. With ongoing research in blockchain scalability, enhanced privacy, and user-centred designs, Web3 has the potential to create a more equitable, decentralised internet. As more sectors, including gaming, finance, and media, adopt Web3 technologies, the decentralised web will likely continue to grow in importance.