Like many buzzwords, you are probably hearing the phrase Web3 or Web3.0 more often. Or – maybe not and you’re just curious to hear about the new dimension of the interweb.

Web 1 & Web 2.0

To keep things plain simple, let’s start from the top. For those like me who didn’t realize there is more than one web, let’s begin with a quick breakdown of Web 1 and Web 2.0.

In summary, Web 1.0 is the original interweb that some of you may have grown-up on (if you remember the 1990s anyway). The main function was to see website pages, online searches – and the internet was invented. It was a centralized, a place for learning and an introduction to the digital space.

However, for those born this side of the millennium, you may be more accustomed to Web 2.0. Enter Twitter, Myspace, and Facebook. The ability to create content, add physical friends into your virtual space and interact in a new way.

Web3 – What it’s Built On

From my readings and understanding, Web3 is built on distributed technologies like blockchain and decentralized autonomous organizations (DAO). Bernard Marr from Forbes explains Web3 as “open, trustless, and permissionless.” What does this all mean? He explains, it is built on open-source software. Trustless means no trust 3rd parties are required when it comes to sending or sharing files and no permissions are needed from governments or corporations. As a result, emerging technologies such as AI, Bitcoin, Blockchain, Ethereum, and NFTs have found a home in the Web3 space. Some say these technologies will allow more freedom and security with their customers. What do you think?

Web3 & the Metaverse

To add some confusion to the pot – you may have heard the word Metaverse thrown around recently. Thank you, Facebook, or should I say “Meta.”

Metaverse is a virtual world or space for people to hang out as their own virtual selves. The reality is this space is moving so quickly it is hard to say with confidence, but Metaverse could hold its own or maybe become Web 4.0? Who knows, but there are several articles about Metaverse and Web3 combining. This means you could potentially take your virtual self and live a full life including payment, work and overall life through a virtual space.

Enter Mark Adams from Vice, “it’s about community.” Mark spoke at a recent CMO Summit hosted by GDS. He spoke about Web3.0 and how it can be tapped into marketers.

“This shifts social media from a popularity contest built on a social graph rooted in the offline world. To a playground for digitally – native, AI-selected, interest-based social connections.” – Mark Adams, Vice

A sense of community and belonging but also just hanging out with your virtual friends is a space that is already creating a lot of hype. Some games like Fortnite have been pushing the limits of what experiences can be enjoyed in a virtual space. Millions attended a concert DJ Marshmello hosted back in 2018 on Fortnite and more recently Ariana Grande brought her talents to the Fortnite stage.

Why is it important?

Now we have a basic idea about Web3 and metaverse but why is it important to business leaders? Is Web3 worth the risk? It seems to be moving quite quickly but statistics like one survey carried out by Ericsson found that seven out of 10 respondents believe that by 2030 we will be able to enter virtual worlds that appear to be completely real. How can we go about this? NFTs seem like a great start or equally, look at collaborations with companies such as Fortnite or Roblox. Roblox and Gucci did a one-off and get this! A virtual Gucci bag sold more than the real more than thousand-dollar bag.

Conclusion

While Web3 brings a lot of new opportunities, not everyone is a fan. As mentioned in Bernard’s Forbes article Former Twitter CEO, Jack Dorsey, questioned whether it will be as free and open as many hope. He said, “you don’t own web3. The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.” Notably, Elon Musk got involved making several comments, including stating that it “seems more like a marketing buzzword than a reality right now” and tweeting, “has anyone seen web3? I can’t find it.”

Overall, this is a great place to start – but do your research and see where it fits in your strategy from a sustainable and community side before diving right in.