In this series, we’ll descend into the depths of Web3 business models, to demystify and help you understand more about what Web3 is, why it’s important, and its economic possibilities:
1. What is Web3? Explained with Zero Jargon
🖼 History of the Web in 1 Visual
📹 What is Web3? Explained with Animations
Web 1.0 (1991-2004) 👉 Information Economy
In Web1, information was consumed on static pages linked together on the web aka websites, e.g. Wikipedia, Yahoo. It was a one-way world – you can read only.
Web 2.0 (2004-Today) 👉 Platform Economy
In Web2, information is transacted two-way. Besides consuming information on websites, we could also contribute information. e.g. Read news and share about your latest travels on Facebook, send money online, chat with someone across the world.
Today, all these information is managed by a central platform or authority. e.g. content you share is stored in Facebook’s server, your money is stored in the Bank.
These central authorities and platforms work to improve their services and experience by collecting information about users (e.g. saving time logging in by storing account information as cookies), and or even developing systems and protocols to make sure information is stored and transferred securely to the intended account (e.g. SWIFT payment).
When the stored info got too big and costly to handle, some platforms sold the data to advertisers (e.g. Facebook targeted advertising), while central authorities like banks increased transaction fees or interest rates.
A growing pool of users got infuriated by a lack of privacy & sense of control (obtrusive ads, fees/rates that suddenly increase, zero ownership of personal data) – just because they needed to use the platforms & services.
So, some decided to imagine how a better world could look like... and Web3 was born!
Web 3.0. (Now) 👉 Token Economy
In an ideal Web3, information is still transacted two-way, but decentralised.
Information is not stored in one place managed by a central authority/platform, but existing across the entire network of participating computers (nodes) – like a big torrent network – built upon blockchain technology to maintain the accuracy of information and records of transactions.
Like how shells were tokens of debt used for trading commodities, Web3.0 wants to create a decentralised ecosystem made up of cryptocurrencies (e.g. Bitcoin, Ethereum) and smart contracts.