While we've seen excitement about Web 3.0 as the next phase of the Internet, it's important to understand the key factors that will make it materialize. Several important concepts related to Web 3.0 include decentralization (distributed computing), blockchain, cryptocurrency and the Metaverse. While there may be challenges, let's look at Web 3.0 opportunities and anticipate what lies ahead.
Analyzing Web 3.0 as an investor and entrepreneur, it's crucial to review major themes and the industry's challenges in building more momentum.
Related: 3 Ways Web 3.0 Will Change Digital Ownership
Most experts believe that blockchain cannot simultaneously achieve security, decentralization and scalability. This is known as the blockchain trilemma. It is a situation that developers encounter when building blockchains, requiring them to sacrifice one aspect as a trade-off to accommodate the other two.
A specific consideration related to scalability is the blockchain size, which can grow quickly as more transactions are added. Bitcoin, for example, can process 7 transactions per second, while Ethereum can process 20 transactions per second. Meanwhile, Visa can handle 24,400 transactions per second.
Related: Web 3.0 Is Coming, and Here's What That Really Means for You
The term interoperability references the capability of blockchains to transfer data and communicate with each other. Web 3.0 projects related to interoperability include Injective, Cosmos and Polkadot, which build blockchain ecosystems that allow interoperability. The process of achieving interoperability is complicated – but not impossible – and I expect more projects to launch soon.
One factor to consider is that Web 3.0 protocols typically evolve slowly and rely heavily on centralized platforms to iterate on new functionality. Several cryptocurrency wallets — including Phantom and Metamask — are offered as browser extensions. This introduces potentially complex security challenges.
Both Metamask, a cryptocurrency wallet with more than 10 million monthly active users, and OpenSea, the largest NFT marketplace, rely on centralized infrastructure companies like Infura (a backend Infrastructure-as-a-service provider) to operate.
Remember that the Web 3.0 development cycle may be time-consuming for protocol developers. Increasing the number of blockchains with various purposes creates challenges for developers. Blockchain developers must have relevant skills based on the blockchain network they are working on.
Related: If You Have No Clue What Web3 Is, You're Not Alone. Here's a Breakdown of the Future of the Internet.
Current Web 3.0 activities make it fairly easy for Web 2.0 users to shift to their platforms. Remember that people cannot embrace what they cannot figure out. If Web 3.0 is less accessible than Web 2.0, people may be unable to interact with many Web 3.0 projects.
Web 2.0 applications, including Instagram and Facebook, are user-friendly and easily accessible compared to many Web 3.0 applications. Google, YouTube, Facebook and other Web 2.0 platforms offer strong UI/UX for their users. However, several Web 3.0 products are grappling with the trade-offs between security and convenience. When Web 3.0 is more user-friendly, the less likely it is to be secure. Recently, there has been a noticeable rise in crypto-jacking cases. Therefore, I believe that security-related obstacles on Web 3.0 need to be solved for them to be more accessible for mainstream business.
Several compelling success stories have been in the news that highlight the business opportunities in Web 3.0.
Related: The Pros and Cons of Big Brands Launching Web3 Projects
Gucci is set apart from competitors due to its approach to creating unique digital assets. I admire what Gucci did to meet customer expectations. Among other actions, the company associated NFTs with physical benefits to incentivize consumers to purchase more tokens.
Whether Web 3.0 becomes a resounding success or it morphs into Web 4.0, I believe industry players must embrace several fundamental challenges to succeed.
I expect that business leaders, including startups, corporations, and investors, who understand these challenges will help Web 3.0 evolve into the next phase of a productive, technology-advanced Internet landscape.
How Web 3.0 is Shaping the Next Digital Frontier
5
0
12.01.2024
While we've seen excitement about Web 3.0 as the next phase of the Internet, it's important to understand the key factors that will make it materialize. Several important concepts related to Web 3.0 include decentralization (distributed computing), blockchain, cryptocurrency and the Metaverse. While there may be challenges, let's look at Web 3.0 opportunities and anticipate what lies ahead.
Analyzing Web 3.0 as an investor and entrepreneur, it's crucial to review major themes and the industry's challenges in building more momentum.
Related: 3 Ways Web 3.0 Will Change Digital Ownership
Most experts believe that blockchain cannot simultaneously achieve security, decentralization and scalability. This is known as the blockchain trilemma. It is a situation that developers encounter when building blockchains, requiring them to sacrifice one aspect as a trade-off to accommodate the other two.
A specific consideration related to scalability is the blockchain size, which can grow quickly as more transactions are added. Bitcoin, for example, can process 7 transactions........
© Entrepreneur
visit website
login
who are we?
contact us
qosheapp
Toi Staff
Gideon Levy
Belen Fernandez
Andrew Mitrovica
Mort Laitner
Rami G Khouri
Ali Fathollah-Nejad
Nikkei Editorial
