History and Development

Web 3.0, as an evolutionary stage of the internet, follows the static, read-only pages of Web 1.0 and the interactive, user-generated nature of Web 2.0. It's often described as the "read/write/own" phase of the internet:

• Web 1.0 was primarily static webpages with minimal interactivity.
• Web 2.0 saw the rise of dynamic content and user interaction, epitomized by the launch of platforms like YouTube and the advent of smartphones.^[1]

Defining Web 3.0

Web 3.0 is primarily focused on decentralizing the underlying infrastructure of the internet, shifting away from centralized data storage and management. It emphasizes solving existing problems of Web 2.0 and the issues created by centralized platforms, focusing on developing new protocols and technologies.^[2]

• Decentralization and Democracy: A key aspect of Web 3.0 is its aim to restore the decentralized nature of the original web, thereby returning control and ownership to users. This shift is seen as a way to counteract the loss of democracy and freedom caused by centralized control of data.^[3]
• Censorship and Security: Web 3.0 addresses major Internet issues like censorship by governments and security risks due to centralized data storage. Decentralization in Web 3.0 could significantly reduce these issues.^[4]
• Challenges of Bandwidth and Storage: Web 3.0 also aims to tackle the inefficiencies of bandwidth usage and storage limitations inherent in Web 2.0, proposing solutions like the InterPlanetary File System (IPFS) for more efficient data handlings.

Blockchain and Decentralized Protocols

• Blockchain Networks: At the core of Web 3.0 are blockchain networks, which are peer-to-peer and built on trust-less transactions. This decentralized approach ensures data integrity and security.^[5]
• Decentralized Protocols: Unlike the centralized data storage of the current web, decentralized web protocols provide a shared data layer, eliminating the need for centralized data centers. This means data is stored on users' computers and used across various decentralized applications.^[6]

Token Model and Incentivization

The token model in Web 3.0 aligns incentives among developers, investors, and users. Tokens represent ownership of a tradable asset within blockchain networks, incentivizing protocol development and adoption.^[7]

Decentralized Applications and the Future

Web 3.0 is still in development, with various technologies under experimentation. It's now feasible to build profitable decentralized applications (dApps), which are key to a more decentralized web. The community continues to work towards perfecting decentralization and addressing the challenges of the current web.^[8]