Web3 101

Web1

In the beginning, computers connected to each other. Users could send each other messages and visit public websites. Web1 revolutionized the speed and reach of human communication. The impact was lightning-fast and profound – even though those first millions of corners of the new internet were not especially interactive.

Web2

In Web2, users became creators. Myspace gave way to Facebook and other social platforms. Anyone can now curate a global public persona and network. Wikipedia shook down our conceptions about the sources of truth and knowledge. Blogger and YouTube flipped the script about who could be a journalist, writer, artist, or entertainer.

Today, 4.9 billion people are connected to the internet. Most of those people hold that connectivity in their hands or in their pockets for most of every day. These unprecedented levels of connectivity are breaking barriers for how the world works, and how people can earn a living. Uber, AirBnB, Twitter/X revenue sharing, and Instagram influencers don’t have to fill out a traditional job application to earn their supper. With the power of 24/7 connectivity, plus a car, a spare bedroom, or some influential ideas, anyone can participate in a new economic layer.

Early warning signs

As amazing as it is, Web2 has some significant and widening cracks in its foundation. Our identities and the value of our data is held in the hands of huge, centralized companies. They control the user agreements that we accept without a second thought. Our data is vulnerable to misuse, and indeed we know that it does get misused – whether because of hacks and leaks, or because we unwittingly signed our rights away to access a service. Presenter James Rupp shared the following breakdown of what it means to participate in Web2:

Data Collection

Companies routinely collect all types of personal information from users.

Data Mining

Advanced algorithms mine user data to extract valuable insights.

Data Sharing

User data is shared with third parties for advertising and other purposes.

Data Breaches

Hacks and breaches expose private user data.

Loss of Control

Users have little personal control over how their data is used.

Centralization vs Decentralization

James compared our centralized data to honey in a honeypot. It’s all pooled together and is as far from the control of the bees as it could be. Anyone who has access to the honey pot gets to use all the honey they want. If the pot gets cracked, all the honey is compromised.

Decentralized data was then compared to a honeycomb. The structure of honeycomb is famously strong, for something made of delicate wax, and each cell holds just one drop of honey. I think, in this metaphor, each bee gets its own little cell of honeycomb, and we understand that even if one part of the hive is breached, most of the bees and their little drops of honey will still be protected and safe. For any junior entomologists in the room, this metaphor might be getting a bit stretched, but let’s take it for what it’s worth!

Web3

Blockchain technology is often just equated with cryptocurrency. For the world’s billions of internet users to make the jump to Web3, it’s important to change that script. Web3, powered by blockchain technology, is about online security and user empowerment. It’s about you holding the keys to your value: the value of your identity, the value of your data, and the value of your money. It’s about creating equitable access to this empowerment.

James acknowledged the speedbumps. Taking responsibility for all our own value can seem intimidating and challenging, when we’re used to just letting big companies “take care of it” for us. But he pointed out that it’s not so different from other things we’ve all gotten quite used to – such as using an ATM. All the steps required to get cash from an ATM are really pretty complicated. You have to get a bank account, keep track of your balance, get a card, try not to lose it, find an ATM machine, remember a PIN number, and navigate through whatever screen interface is presented on that particular machine. You might have an elderly relative who opted to just keep using checks rather than figure all that out, but eventually the next generations grew into the new technology. Using blockchain tools, wallet apps, and managing seed phrases is a new skill for most people, but it can be normalized, just like using an ATM.