We know what it’s like. A new buzzword like ‘Web 3’ comes around, and you’re not sure whether it’ll just go away in a couple of weeks, or whether you should actually take time out of your busy week to learn about it.
You’ve probably heard the term floating around for a couple of years now, and it’s become clear that anyone who wants to be on the cutting edge of digital, UX, and design needs to know all about Web 3.
What are the benefits of Web3 and why is it the future? Can your company benefit from Web3?
Worry not – as a forward-thinking design agency, we’ve got a passion for making the complex easy to understand. Today, we’ll cover the changes Web3 will most likely bring about, in a less technical and more easy to understand way, and explore what it might mean for your company.
The best way to approach Web 3.0 is to first understand how we progressed to it from Web 1.0 and Web 2.0. These different versions of the web build on each other. They are best thought of as layers adding to what was there before.
So let’s start from the beginning, with Web 1.0.
What is Web 1.0?
During Web 1.0, which took place between 1991 and 2004, the Internet consisted of static pages. Web 1.0 is also called the “read-only Web” – because the users weren’t really interacting with any of it: someone published websites on the Internet, and someone read them. There was no back and forth; the users were basically just consumers, and the owners of the websites didn’t even get any analytics or information about who was reading their pages.
The easiest way to think about the Internet during Web 1.0 is as a big library of books, hyperlinked together.
What is Web 2.0?
Web 2.0 came next, between 2004 and… now (yes, Web 3.0 hasn’t officially started – yet). The biggest change was that the users were no longer just consumers of the information they found on the Internet; they were now participating in an information exchange. The main way in which this happened is through data collection – centralized companies (e.g. Facebook, YouTube, Google), collected information about user behavior and used it to improve the experience they offered, but also to make revenue through targeted ads. And, as we know now, they also sold users’ data to advertisers directly. This is why Web 2.0 is called the “participative social Web” – because the users participated not only in content creation on the internet, but also by offering their data.
The easiest way to think about the Internet during Web 2.0 is as the coffee shop on the corner that you always go to. You like it, so you keep going every day; while you keep using their services, they’re also learning things about you… Until one day, the barista asks, ‘The usual?’
What is Web 3?
Imagine creating a product or service – and having the freedom to make it available online, without having to go through the usual gatekeepers; no government laws, no social media platforms, no search engines to please and appease. That is what Web 3 is – an unshackling progression from Web 2, which is widely considered to be excessively regulated.
Web3 is called the “read, write, own and execute” web. One where assets, content and data are less centralized. Where finance meets technology meets social change. Where creators and owners can decide what happens to their information/assets and be compensated for it.
This is why Web 3 is called ‘the future’ by some. There’s much speculation about what it’s going to look like – but it seems that the main point of difference to Web 2.0 is that people will now be the owners of their content and information of the major differences,control of their own data.), having full control of it. In Web 3, our data and user behavior is no longer a product for centralized companies to sell; it’s for us to own and do whatever we please with – meaning that the Internet will become a decentralized online ecosystem, opening up endless possibilities for companies looking to create products or services in Web 3.
How Product Owners Should Think About Web 3
- People were frustrated and angry with their privacy being constantly impeached;
- People were annoyed with companies owning their content, and having little control over what happened to it;
- People were feeling stifled by the excessive regulation in Web 2.0.
This mounting frustration has meant that some have decided to create a version of the Internet where the power is back in the user’s hands – and that is one of the characteristics that Web 3.0 is defined by.
How are users taking power back into their hands? You’ve probably heard of decentralization networks changing how data, companies from controlling the internet.) and blockchain technologies. These are all intrinsic to Web 3, and are allowing users and creators to move away from centralized platforms that collect their data and sell it, and migrate to nearly anonymous platforms.
In Web 3, your digital identity isn’t connected to your real-life identity; meaning that none of your online activity can be traced back to you. So, for example, your customers could buy products without using their real name, connecting to their bank, or giving away any information other than what is strictly needed for them to make their purchase: a crypto wallet address. The possibilities this innovation brings are endless, and it frees people up to choose better, more secure, more anonymized processes online.
How will Web 3 impact companies in the near future?
It’s easy for all of this to sound very futuristic, and many influencers speak of Web 3.0 as if it’ll change the whole world tomorrow. But if we’re looking at the way these transitions usually work (e.g. from Web 1.0 to Web 2.0), it almost always takes quite some time for these changes to occur. For many people still, there’s a lot of confusion around Web 3.0, how to get ‘on’ it, how to buy cryptocurrency and use a crypto wallet – not to even mention the general perceived instability and mistrust in these currencies, which are necessary for anyone who wants to participate in Web 3.
So, why does Web 3 matter for your company? It depends on your industry, and on how tech-forward your customer base is; but the changes that Web 3 will bring about will most likely be much more than just accepting payments in crypto. They’ll have to do with a psychological paradigm shift. In time, this will translate into everything, from UX/UI to product building, from web design to branding.
Web3 will nudge many businesses to increase their transparency, and make their experience highly user-centric. If we’re thinking about the failure of Web 2.0 to maintain people’s privacy, Web 3 will be a huge change in terms of how businesses that work with data are operating. The advantages of Web 3 are that it’s pro-privacy, and anti-monopoly – which will mean decentralization, a process that will mean a huge shift in how companies interact with their users, how we design products, and how we build experiences.
How will Web 3 impact companies in the near future?
While it might still take a long time for Web3 to become mainstream, understood, and used by the general public, companies who adopt it early on could gain a very valuable edge on their competition. Depending on how tech-forward your consumer base is, what products you’re looking to create in the next 2-5 years, and whether or not you’re taking payments online, Web3 might be a viable avenue for you to explore. Even if you don’t, staying on top of the latest developments in Web3 will allow you to keep a finger on the pulse of the future, and how it might affect you as we make the transition.
Web 3 is a bit confusing – we get that, and we’re here to help. If you’re planning on building a product, design, or are just curious about Web3, then book an exploratory call with us here. We’d love to make the process more simple for you.
