Web3 is a rapidly developing sector in the blockchain space. But what is web3? What can web3 do? Web3 is an umbrella term that covers any smart-contract-related interaction with a user. Thus, smart contracts are indeed part of the web 3 environment. So what is it exactly? Gavin Wood the creator of the term, insinuates that the core difference between web2 and web 3.0 lies in the processing and storage of your data. In this article, we will describe a bit of backstory on how the internet works, what web 3.0 is, where it's going, and what it changes.

Web1, Web2, and their history

Web1, the first ever version of the internet, changed mindsets around the globe with the decentralized and open web. Unfortunately, the system did not function as intended. It quickly developed to become the internet we all know and use today - Web2. Web2 offered a way more performant and quickly evolving infrastructure. Large corporations and players quickly dominated a huge part of the internet's infrastructure.

With this large 'centralization' of data and computational capacity, the risks are high. Should something fail in their large data centers, it would result in the internet's demise. Furthermore, these companies also have access to use all of this data.

Web3 the solution?

Web3 takes a radical approach to data storage and processing. Thus, paving the way for a fully decentralized and democratic model. Furthermore, this enabled the safety and security of your data through a process called mining. Therefore, it is safe to say, that web3, is quickly revolutionizing the way the Internet functions.

Unlike traditional services like Amazon, or Google, web3 allows a programmer to directly develop his idea on the blockchain. Through the creation of smart contracts, which are accessible via web 3 technology. Furthermore, smart contracts allow for an endless variety of use cases, and the democratization of decisions.

Identity in Web3

Web3 takes a unique approach to identify a person. Unlike traditional web2 systems where someone typically enters a username/email and a password, the web3 system relies on a cryptographic hash. These cryptographic hashes dubbed "Decentralized Identifiers" (DIDs) enable a verifiable and decentralized virtual identity.

The purpose of these DIDs is to:

• Eliminate the need for a central authority or a single point of failure (the aforementioned issue with centralized systems)

• Give people full control over their identifiers without needing to consult a centralized party

• Keep the identity of people who use them private

• Secure to allow the project to quickly and easily verify people

• Offer cryptographic proof of someone's identity

• Discoverable enough to be able to publicly check records

• Easily interoperable with other platforms and projects that use the same or similar technologies

• Be system and network independent to allow any system-supporting DIDs to integrate them

• Simple to implement and use

• Extensible so that it can be easily grown or enhanced

Where is web3 headed?

As aforementioned, the web 3 model allows a developer to create their idea in a purely peer-to-peer fashion. This enables an entire ideology of the internet, products, and power distribution. Furthermore, it opens up new possibilities that no one ever imagined possible. Therefore, it is very difficult to presume where web 3.0 is headed. It is possible for this technology to be implemented in politics, economics, real estate (through NFTs), or any other sector of government. Furthermore, in the public sector, web 3.0 and blockchain revolutionize the way companies, ownership agreements and contractual agreements can operate.

In conclusion, the term web3 is a very large term that covers a variety of sectors using this technology. The possibilities this technology opens up are endless, the way data is handled is revolutionary. Ultimately, web3 fixes many issues with the previous technological model of the internet and revolutionizes the sector.