Web3

<h2 id="background">Background</h2>
Main articles: <a href="/facts/History_of_the_World_Wide_Web/6MDw5vuo">History of the World Wide Web</a> and <a href="/facts/Web_2.0/mn8W4Xnu">Web 2.0</a>
<a href="/facts/Web_1.0/mn8W4Xnu">Web 1.0</a> and <a href="/facts/Web_2.0/mn8W4Xnu">Web 2.0</a> refer to eras in the <a href="/facts/History_of_the_World_Wide_Web/6MDw5vuo">history of the World Wide Web</a> as it evolved through various technologies and formats. Web 1.0 refers roughly to the period from 1991 to 2004, where most sites consisted of <a href="/facts/Static_web_page/BtP4660l">static pages</a>, and the vast majority of users were consumers, not producers of content.<a class="footnote-ref" id="fnref:15" href="#fn:15">15</a><a class="footnote-ref" id="fnref:16" href="#fn:16">16</a> <a href="/facts/Web_2.0/mn8W4Xnu">Web 2.0</a> is based around the idea of "the web as platform"<a class="footnote-ref" id="fnref:17" href="#fn:17">17</a> and centers on user-created content uploaded to <a href="/facts/Internet_forum/bRuqfQfN">forums</a>, <a href="/facts/Social_media/kUIkfpIA">social media</a> and networking services, <a href="/facts/Blog/bb6awu2X">blogs</a>, and <a href="/facts/Wiki/uCKCEzqb">wikis</a>, among other services.<a class="footnote-ref" id="fnref:18" href="#fn:18">18</a> Web 2.0 is generally considered to have begun around 2004 and continues to the current day.<a class="footnote-ref" id="fnref:19" href="#fn:19">19</a><a class="footnote-ref" id="fnref:20" href="#fn:20">20</a><a class="footnote-ref" id="fnref:21" href="#fn:21">21</a>

<h2 id="terminology">Terminology</h2>
Web3 is distinct from <a href="/facts/Tim_Berners-Lee/JRv21mt9">Tim Berners-Lee</a>'s 1999 concept of a <a href="/facts/Semantic_Web/NFHo9dB7">Semantic Web</a>, which was also sometimes referred to as Web 3.0.<a class="footnote-ref" id="fnref:22" href="#fn:22">22</a> While the Semantic Web envisioned a web of linked data, web3 in the <a href="/facts/Blockchain/8H43GgWy">blockchain</a> context refers to a decentralized internet built upon distributed ledger technologies.<a class="footnote-ref" id="fnref:23" href="#fn:23">23</a> Some writers referring to the decentralized concept usually known as "web3" have used the term "Web 3.0", leading to some confusion between the two concepts.<a class="footnote-ref" id="fnref:24" href="#fn:24">24</a><a class="footnote-ref" id="fnref:25" href="#fn:25">25</a> Furthermore, some visions of web3 also incorporate ideas relating to the semantic web.<a class="footnote-ref" id="fnref:26" href="#fn:26">26</a><a class="footnote-ref" id="fnref:27" href="#fn:27">27</a> 
The term "web3" was coined by <a href="/facts/Polkadot_(cryptocurrency)/Ir0g1cXI">Polkadot</a> founder and <a href="/facts/Ethereum/6RfpJ46R">Ethereum</a> co-founder <a href="/facts/Gavin_Wood/T34bJsfR">Gavin Wood</a> in 2014, referring to a "decentralized online ecosystem based on blockchain."<a class="footnote-ref" id="fnref:28" href="#fn:28">28</a> In 2021, the idea of web3 gained popularity.<a class="footnote-ref" id="fnref:29" href="#fn:29">29</a> Particular interest spiked toward the end of 2021, largely due to interest from <a href="/facts/Cryptocurrency/Rg6JAS8y">cryptocurrency</a> enthusiasts and investments from high-profile technologists and companies.<a class="footnote-ref" id="fnref:30" href="#fn:30">30</a><a class="footnote-ref" id="fnref:31" href="#fn:31">31</a> Executives from venture capital firm <a href="/facts/Andreessen_Horowitz/cQNASC0T">Andreessen Horowitz</a> traveled to <a href="/facts/Washington%2c_DC/enXPK156">Washington, DC</a>, in October 2021 to lobby for the idea as a potential solution to questions about regulation of the web, with which policymakers have been grappling.<a class="footnote-ref" id="fnref:32" href="#fn:32">32</a>

<h2 id="concept">Concept</h2>
Specific visions for web3 differ, and the term has been described by Olga Kharif as "hazy", but they revolve around the idea of decentralization and often incorporate blockchain technologies, such as various <a href="/facts/Cryptocurrency/Rg6JAS8y">cryptocurrencies</a> and <a href="/facts/Non-fungible_token/uoCFmea8">non-fungible tokens</a> (NFTs).<a class="footnote-ref" id="fnref:33" href="#fn:33">33</a> Kharif has described web3 as an idea that "would build financial assets, in the form of tokens, into the inner workings of almost anything you do online".<a class="footnote-ref" id="fnref:34" href="#fn:34">34</a> A policy brief published by the <a href="/facts/Bennett_Institute_for_Public_Policy/RQBUGTAx">Bennett Institute for Public Policy</a> at the <a href="/facts/University_of_Cambridge/0la7aX9o">University of Cambridge</a> defined web3 as "the putative next generation of the web's technical, legal, and payments infrastructure—including blockchain, <a href="/facts/Smart_contract/D5TN1q4n">smart contracts</a> and cryptocurrencies."<a class="footnote-ref" id="fnref:35" href="#fn:35">35</a>
Some visions are based around the concept of <a href="/facts/Decentralized_autonomous_organization/NYBaXqNr">decentralized autonomous organizations</a> (DAOs).<a class="footnote-ref" id="fnref:36" href="#fn:36">36</a> <a href="/facts/Decentralized_finance/xjvIyL8f">Decentralized finance</a> (DeFi) is another key concept; in it, users exchange currency without bank or government involvement.<a class="footnote-ref" id="fnref:37" href="#fn:37">37</a> <a href="/facts/Self-sovereign_identity/oDJcUqk2">Self-sovereign identity</a> allows users to identify themselves without relying on an authentication system such as <a href="/facts/OAuth/gIu2zsv1">OAuth</a>, in which a trusted party has to be reached in order to assess identity.<a class="footnote-ref" id="fnref:38" href="#fn:38">38</a>

<h2 id="reception">Reception</h2>
Academic researchers, such as Tomer J. Chaffer and Justin Goldston in 2022, have described web3 as a possible solution to concerns about the over-centralization of the web in a few "<a href="/facts/Big_Tech/n3mdHnMK">Big Tech</a>" companies.<a class="footnote-ref" id="fnref:39" href="#fn:39">39</a><a class="footnote-ref" id="fnref:40" href="#fn:40">40</a><a class="footnote-ref" id="fnref:41" href="#fn:41">41</a> Some have expressed the notion that web3 could improve <a href="/facts/Data_security/7E5dIy7G">data security</a>, <a href="/facts/Scalability/jh7JomPa">scalability</a>, and <a href="/facts/Internet_privacy/Fdnjfnds">privacy</a> beyond what is currently possible with <a href="/facts/Web_2.0/mn8W4Xnu">Web 2.0</a> platforms.<a class="footnote-ref" id="fnref:42" href="#fn:42">42</a> Bloomberg states that skeptics say the idea "is a long way from proving its use beyond niche applications, many of them tools aimed at crypto traders".<a class="footnote-ref" id="fnref:43" href="#fn:43">43</a> <a href="/facts/The_New_York_Times/T9marWVX">The New York Times</a> reported that several investors are betting $27 billion that web3 "is the future of the internet".<a class="footnote-ref" id="fnref:44" href="#fn:44">44</a><a class="footnote-ref" id="fnref:45" href="#fn:45">45</a>
Some Web 2.0 companies, including <a href="/facts/Reddit/PAJjm63I">Reddit</a> and <a href="/facts/Discord_(software)/1wped7PM">Discord</a>, have explored incorporating web3 technologies into their platforms.<a class="footnote-ref" id="fnref:46" href="#fn:46">46</a><a class="footnote-ref" id="fnref:47" href="#fn:47">47</a> On November 8, 2021, CEO Jason Citron tweeted a screenshot suggesting Discord might be exploring integrating cryptocurrency wallets into their platform. Two days later, and after heavy user backlash,<a class="footnote-ref" id="fnref:48" href="#fn:48">48</a><a class="footnote-ref" id="fnref:49" href="#fn:49">49</a> Discord announced they had no plans to integrate such technologies and that it was an internal-only concept that had been developed in a company-wide <a href="/facts/Hackathon/BqwMoH8j">hackathon</a>.<a class="footnote-ref" id="fnref:50" href="#fn:50">50</a>
Some legal scholars quoted by <a href="/facts/The_Conversation_(website)/Tz3zxIxq">The Conversation</a> have expressed concerns over the difficulty of regulating a decentralized web, which they reported might make it more difficult to prevent <a href="/facts/Cybercrime/cSyaFF96">cybercrime</a>, <a href="/facts/Cyberbullying/Fbw1RR2s">online harassment</a>, <a href="/facts/Hate_speech/y6Wmy5sx">hate speech</a>, and the dissemination of <a href="/facts/Child_pornography/6wgSAcnP">child pornography</a>.<a class="footnote-ref" id="fnref:51" href="#fn:51">51</a> But, the news website also states that, "[decentralized web] represents the cyber-libertarian views and hopes of the past that the internet can empower ordinary people by breaking down existing power structures". Some other critics of web3 see the concept as a part of a <a href="/facts/Cryptocurrency_bubble/CgTHsw0F">cryptocurrency bubble</a>, or as an extension of <a href="/facts/Blockchain/8H43GgWy">blockchain</a>-based trends that they see as overhyped or harmful, particularly <a href="/facts/Non-fungible_token/uoCFmea8">NFTs</a>.<a class="footnote-ref" id="fnref:52" href="#fn:52">52</a> Some critics have raised concerns about the <a href="/facts/Environmental_effects_of_bitcoin/kFsvf3eD">environmental impact of cryptocurrencies</a> and NFTs.<a class="footnote-ref" id="fnref:53" href="#fn:53">53</a> Cryptocurrencies vary in efficiency, with <a href="/facts/Proof_of_stake/92d8b2Qp">proof of stake</a> having been designed to be less energy intensive than the more widely used <a href="/facts/Proof_of_work/GKI1LcQU">proof of work</a>, although there is disagreement about how secure and decentralized this is in practice.<a class="footnote-ref" id="fnref:54" href="#fn:54">54</a><a class="footnote-ref" id="fnref:55" href="#fn:55">55</a><a class="footnote-ref" id="fnref:56" href="#fn:56">56</a><a class="footnote-ref" id="fnref:57" href="#fn:57">57</a> Others have expressed beliefs that web3 and the associated technologies are a <a href="/facts/Pyramid_scheme/eQQHuodc">pyramid scheme</a>.<a class="footnote-ref" id="fnref:58" href="#fn:58">58</a>
<a href="/facts/Jack_Dorsey/qnjYnDqH">Jack Dorsey</a>, co-founder and former CEO of <a href="/facts/Twitter/VWwDNGUm">Twitter</a>, dismissed web3 as a "venture capitalists' plaything".<a class="footnote-ref" id="fnref:59" href="#fn:59">59</a> Dorsey opined that web3 will not democratize the internet, but it will shift <a href="/facts/Power_(social_and_political)/Q4feTyU6">power</a> from players like <a href="/facts/Facebook/0IhXFR6u">Facebook</a> to venture capital funds like <a href="/facts/Andreessen_Horowitz/cQNASC0T">Andreessen Horowitz</a>.<a class="footnote-ref" id="fnref:60" href="#fn:60">60</a>

<h3>Buzzword</h3>
Liam Proven, writing for <a href="/facts/The_Register/3CEJaRob">The Register</a>, concludes that web3 is "a myth, a fairy story. It's what parents tell their kids about at night if they want them to grow up to become economists".<a class="footnote-ref" id="fnref:61" href="#fn:61">61</a>
In 2021, <a href="/facts/SpaceX/2tKHsVdJ">SpaceX</a> and <a href="/facts/Tesla%2c_Inc./dSyLNM1D">Tesla</a> CEO <a href="/facts/Elon_Musk/GFgcp9Im">Elon Musk</a> expressed skepticism about web3 in a tweet, saying that web3 "seems more marketing buzzword than reality right now."<a class="footnote-ref" id="fnref:62" href="#fn:62">62</a> 
In November 2021, James Grimmelmann of <a href="/facts/Cornell_University/FGyXuXeI">Cornell University</a> referred to web3 as <a href="/facts/Vaporware/7ICH5nwp">vaporware</a>, calling it "a promised future internet that fixes all the things people don't like about the current internet, even when it's contradictory." Grimmelmann also argued that moving the internet toward a blockchain-focused infrastructure would centralize and cause more <a href="/facts/Data_collection/rEGBdDzj">data collection</a> compared to the current internet.<a class="footnote-ref" id="fnref:63" href="#fn:63">63</a>
Software engineer Stephen Diehl described web3 in a blog post as a "vapid marketing campaign that attempts to reframe the public's negative associations of crypto assets into a false narrative about disruption of legacy tech company hegemony."<a class="footnote-ref" id="fnref:64" href="#fn:64">64</a>

<h3>Decentralization concerns</h3>
<a href="/facts/Kevin_Werbach/YQgeJyIs">Kevin Werbach</a>, author of The Blockchain and the New Architecture of Trust,<a class="footnote-ref" id="fnref:65" href="#fn:65">65</a> has said that "many so-called 'Web 3.0' solutions are not as decentralized as they seem, while others have yet to show they are scalable, secure and accessible enough for the mass market", adding that this "may change, but it's not a given that all these limitations will be overcome".<a class="footnote-ref" id="fnref:66" href="#fn:66">66</a>
In early 2022, <a href="/facts/Moxie_Marlinspike/NBq0qLe9">Moxie Marlinspike</a>, creator of <a href="/facts/Signal_(messaging_app)/1d9mpcMH">Signal</a>, wrote about web3 is not being as decentralized as it appears to be, mainly due to consolidation in the cryptocurrency field, including in blockchain <a href="/facts/Application_programming_interfaces/GMlN4vUr">application programming interfaces</a> which are currently mainly controlled by the companies Alchemy and <a href="/facts/Infura/4o1ExzAl">Infura</a>; <a href="/facts/Cryptocurrency_exchanges/PBbzsc11">cryptocurrency exchanges</a> which are mainly dominated by <a href="/facts/Binance/YMe0vHYP">Binance</a>, <a href="/facts/Coinbase/oSGUPnzd">Coinbase</a>, <a href="/facts/MetaMask/8hK3JLqy">MetaMask</a>, and <a href="/facts/OpenSea/wkFVCSCx">OpenSea</a>; and the <a href="/facts/Stablecoin/GRzsBkKp">stablecoin</a> market which is currently dominated by <a href="/facts/Tether_(cryptocurrency)/Id6RuMsv">Tether</a>. Marlinspike also remarked that the new web resembles the old web.<a class="footnote-ref" id="fnref:67" href="#fn:67">67</a><a class="footnote-ref" id="fnref:68" href="#fn:68">68</a><a class="footnote-ref" id="fnref:69" href="#fn:69">69</a>

<h2 id="see-also">See also</h2>
<ul><li><a href="/facts/Distributed_social_network/pR1JEXp9">Distributed social network</a></li>
<li><a href="/facts/InterPlanetary_File_System/VUhdLRdm">InterPlanetary File System</a></li>
<li><a href="/facts/History_of_the_World_Wide_Web/6MDw5vuo">History of the World Wide Web</a></li>
<li><a href="/facts/Decentralized_application/Gpk07nv7">Decentralized application</a></li>
<li><a href="/facts/Blockchain/8H43GgWy">Blockchain</a></li>
<li><a href="/facts/Cryptocurrency/Rg6JAS8y">Cryptocurrency</a></li>
<li><a href="/facts/Semantic_Web/NFHo9dB7">Semantic Web</a></li></ul>

<h2 id="references">References</h2>

<ol>
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<li id="fn:2">Alford, Harry (September 16, 2021). "Crypto's networked collaboration will drive Web 3.0". TechCrunch. Archived from the original on November 10, 2021. Retrieved November 9, 2021. <a href="https://techcrunch.com/2021/09/16/cryptos-networked-collaboration-will-drive-web-3-0/" target="_blank">https://techcrunch.com/2021/09/16/cryptos-networked-collaboration-will-drive-web-3-0/</a> <a href="#fnref:2" class="footnote-back-ref">↩</a></li>
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<li id="fn:4">Fenwick, Mark; Jurcys, Paulius (2022). "The Contested Meaning of Web3 and Why it Matters for (IP) Lawyers". SSRN Electronic Journal. doi:10.2139/ssrn.4017790. ISSN 1556-5068. SSRN 4017790. <a href="/wiki/Doi_(identifier)" target="_blank">/wiki/Doi_(identifier)</a> <a href="#fnref:4" class="footnote-back-ref">↩</a></li>
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<li id="fn:10">Kastrenakes, Jacob (December 21, 2021). "Jack Dorsey says VCs really own Web3 (and Web3 boosters are pretty mad about it)". The Verge. Archived from the original on December 24, 2021. Retrieved December 22, 2021. <a href="https://www.theverge.com/2021/12/21/22848162/jack-dorsey-web3-criticism-a16z-ownership-venture-capital-twitter" target="_blank">https://www.theverge.com/2021/12/21/22848162/jack-dorsey-web3-criticism-a16z-ownership-venture-capital-twitter</a> <a href="#fnref:10" class="footnote-back-ref">↩</a></li>
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<li id="fn:13">"Jack Dorsey Stirs Uproar by Dismissing Web3 as a Venture Capitalists' Plaything". Bloomberg.com. December 21, 2021. Retrieved July 5, 2022. <a href="https://www.bloomberg.com/news/articles/2021-12-21/jack-dorsey-stirs-uproar-by-dismissing-web3-as-a-vc-plaything" target="_blank">https://www.bloomberg.com/news/articles/2021-12-21/jack-dorsey-stirs-uproar-by-dismissing-web3-as-a-vc-plaything</a> <a href="#fnref:13" class="footnote-back-ref">↩</a></li>
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</ol>

Web3 open-in-new

Web3