Computer scientist Gavin Wood coined the term “Web 3.0” in 2014, outlining his vision for the future of the Internet.
The phrase, also abbreviated to “Web3,” has recently become a buzzword on the Internet among high-profile technologists, including Twitter founder Jack Dorsey and Tesla CEO Elon Musk, who are discussing the meaning of the term.
Wood, co-founder of Ethereum and founder of blockchain infrastructure company Parity Technologies, spoke to CNBC in an episode of the Beyond the Valley podcast to discuss his vision for Web3.
What’s wrong with the current network?
Proponents call Web3 a decentralized version of the Internet – one that is not dominated by a handful of powerful players such as Amazon, Microsoft and Google.
Web1 started with the idea of an open and decentralized Internet, but Web2 – the Internet we know today – led to the birth of trillions of dollars of technology companies that have a strong influence on the Internet and have much of the infrastructure built into the network. On.
The big problem with this is … it’s like putting all your eggs in a basket, if something goes wrong with one of these services, you know, the service is suddenly out of reach for an awful lot of people, “Wood told the Beyond the Valley podcast. On CNBC.
“Besides, the key word here is trust. We need to trust the people behind the services. We have to trust the owners of the companies that run the service … So, yes, we somehow managed to architect ourselves in this, somewhat dystopian version of what the world could be like. “
So what is Web3?
For Wood Web3, it is a truly decentralized and more democratic version of the current Internet.
“Web3 is really something like an alternative vision of the network, where the services we use are not hosted by one service provider company, but rather something like purely algorithmic things that in a sense are hosted by everyone. So it’s like, it’s very equal, isn’t it? … The idea is that all the participants contribute a small part of the best service, “Wood said.
“And so no one really has an advantage over everyone else … not in the same sense, at least as you know, for example, when you go to Amazon or go to eBay or Facebook, where the company behind the service really has absolute power over what do when providing the service. “
Basic terms and technologies of Web3
Blockchain is a key technology behind Web3. It is most often associated with the cryptocurrency bitcoin and is the technology that supports it. The Bitcoin blockchain is a public register of the activities of the bitcoin network. But bitcoin is not owned by a company or an individual and is not issued by a central authority such as a central bank. Instead, it is decentralized and the network is maintained by a global group of people working with specialized computers.
So blockchain is a key technology, and decentralization is an important phrase.
Web3 is based on the idea of a trustless model. Right now, we need to trust the companies to deliver the service they promise. But if Web3 products and services are built on a blockchain and are decentralized, then you will have to rely only on the basic algorithm for delivery of this product.
This, of course, carries its own risks.
What might the Web3 version of Twitter look like?
Wood gave the example of Web3’s version of Twitter, which he said will give more users control over their posts and make it easier to verify their identity, for example.
“So it’s much harder for someone to like, to falsify my identity, because we have … based on cryptographic evidence that I did it, and only I could do it,” Wood said.
“We probably have elements of something bigger, like freedom of speech … in the sense that the system will not have inherent gatekeepers, that in the same way, as you know, there are Twitter employees who act effectively as gatekeepers of the system. “
Where does the cryptocurrency come from in this?
Proponents of Web3 suggest that cryptocurrencies will play a key role in the future of the Internet. An example might be when there is a Web3 application running on a specific blockchain that uses a specific digital coin.
For example, Ethereum blockchain services may require ether-based digital tokens.
Thousands of virtual currencies have emerged in the last few years. But Wood said Web3, as he imagines it, may not rely heavily on cryptocurrencies.
“I suspect that currency will continue to play a role in services. But I think … in general, we’re going to start seeing services delivered without the need for tokens, “Wood told CNBC.
“And I think it’s going to be a big leap. And I think that’s one of the key factors that will open the door to the mainstream, “he added, suggesting that most people probably won’t want to buy a lot of different tokens to use a service.
How will the regulation work?
Bitcoin itself has never been regulated because it is very difficult to take into account the fact that it is not owned by one person. However, companies that touch cryptocurrency in some way, such as stock exchanges, often find themselves under some sort of regulation.
So, if the Web3 service is built on the same theory of decentralization as bitcoin, how will regulators approach it?
For now, countries around the world are still trying to figure out how best to regulate cryptocurrencies and related technologies. Web3 is part of this conversation.
Wood suggests that it will be difficult for authorities to regulate Web3 services themselves. Instead, it may be in the “self-interest” of the application to introduce rules for their product that are in line with regulators, Wood said.
He added that regulators may want to regulate “users of the service, not the service itself”.
Will it be the end of the technology giants?
Proponents of Web3 suggest that with Web3, the power of technology giants can be challenged.
However, the same companies as Microsoft and Twitter are also investing in Web3.
Wood said it would be “difficult to make a dent … in these Goliaths”, but compared their potential to that of Microsoft in the late 2000s and beyond.
“It doesn’t matter if you’re running Windows or creating your document in Microsoft Word … we use the web as a platform, and the web can be used on any operating system,” Wood said.
“Ultimately … I hope that Web3 meets the needs of the future in a way that can never be met by these centralized service providers,” he added.