What is Web3? How did it come to be?

This article contextualises the creation of Web3 by tracing the history of Web 1.0 and Web 2.0, arguing that Web3 is the solution to the high level of centralisation within the World Wide Web. Rather than having centralised entities and technology companies deciding what should (or should not) be allowed, Web3 seeks to create an ecosystem built, managed and owned by its users.

Context

Web1.0 (or the ‘read-only’ web) mainly consisted of static websites with minimal interaction between users. With the emergence of social media platforms came Web2.0 (or the ‘read-write’ web) in 2004. During this second period, companies were not the only ones producing content – platforms now also included user-generated content and allowed for user-to-user interactions. This led to several big technology companies controlling the value of the content generated on the web – users did not benefit from the monetisation.

This is where Web3.0 (or the ‘read-write-own’ web) comes in – it provides users a form of ownership over the web using blockchains, cryptocurrencies, and NFTs. First coined by Ethereum co-founder Gavin Wood in 2014, the core principles of Web3 are that it is: 

• Decentralised
• Permissionless 
• Native payments
• Trustless

Limitations

However, the article also outlines the limitations of the Web3 ecosystem. For example, it can be inaccessible to countries that are less wealthy due to its high transaction fees and to users without technical knowledge of the interface. It also requires learning different mental models than those used in Web2.0 and currently depends on centralised infrastructure.