The Promise of a Better Internet: What Is Web 3.0 and What Are We Building?

Abstract

In this article, we survey current conceptions of Web 3.0 and describe ways in which Web 3.0 differs from Web 2.0. Specifically, Web 3.0 is built on blockchain technology, allows for increased peer-to-peer interactions without intermediaries, enables individuals and businesses access to networks of users with much lower cost, and stands as a rebuke to large companies’ centralized control of services and information. These distinctions make Web 3.0 both a natural evolution of Web 2.0 and a broader paradigm shift that may fundamentally alter the structure of industries and the ways in which people interface online. Next, we describe ongoing efforts to build Web 3.0, providing an overview of four important components: cryptocurrencies and decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and metaverses. We then highlight successful use cases, emerging trends, and key challenges that innovators are apt to face as Web 3.0 services and applications gain widespread adoption. Finally, we address actions that organizations and managers can take to prepare for the changes to come.

Keywords: Web 3.0, blockchain, cryptocurrencies, NFT, non-fungible token, DAO, smart contract, metaverse, decentralization