Web3: Is It Just Rebranded Blockchain or the Future of the Internet?

Web3. You’ve probably heard the term buzzing around the tech sphere, especially if you’re into crypto or blockchain. But is it truly the next big thing, a revolutionary leap for the internet? Or, as some critics suggest, is it just a fancy marketing term, a wolf in sheep’s clothing for good old blockchain technology? Let’s dive into the fascinating world of Web3 and unpack the debate.

Web3: Marketing Ploy or Genuine Evolution?

John deVadoss, a prominent voice in the tech world and former Managing Director at Microsoft (now Head of Development at Neo), isn’t shy about his skepticism. He recently penned an op-ed questioning the very essence of Web3, suggesting it’s more of a marketing gimmick than a substantial evolution. According to deVadoss, it’s primarily “VC-types” who are pushing this term, adding little value beyond what we already know as “blockchain.”

He argues that the term gains traction partly because governments aren’t fans of the word “crypto.” This rebranding, he implies, might be a strategic move. DeVadoss, who has a rich history at Microsoft, contributing to platforms like .NET and Azure, believes Web3 is “more nonsense than sense.” He attributes its trendiness to social media buzz, where people jump on the bandwagon to be part of the “next big thing.”

A Term With a History

Interestingly, the term “Web3” isn’t exactly new. It’s been floating around for over two decades! However, it really exploded in popularity in late 2021, fueled by discussions from influential figures like Elon Musk. Google Trends data reveals that interest in Web3 peaked in December 2021 and has since cooled down a bit. But what exactly is Web3, and why the controversy?

Defining Web3: A Matter of Perspective

The definition of Web3 isn’t set in stone; it varies depending on who you ask. However, the concept of Web 3.0 was first introduced way back in 1999 by none other than Sir Tim Berners-Lee, the inventor of the World Wide Web itself. His vision was centered around the “Semantic Web.”

Berners-Lee’s Semantic Web Vision:

• Machine-Readable Data: Berners-Lee envisioned a future where computers could intelligently analyze all internet data.
• Interconnected Machines: He imagined “machines talking to machines,” understanding data in a sophisticated way.
• Standardized Web: This would be achieved through tags, web structures, and shared vocabularies, definitions, and standards.

The World Wide Web Consortium (W3C), led by Berners-Lee, continues to champion this original Semantic Web definition of Web3.

Gavin Wood and the Decentralized Web3

However, when most people talk about Web3 today, they’re referring to the definition popularized by Gavin Wood, the founder of Polkadot and co-founder of Ethereum. Wood coined the term in 2014 to describe the internet’s third stage, focusing on decentralization and moving away from the dominance of Big Tech and its “surveillance capitalism.”

Gavin Wood’s Decentralized Web3 Vision:

• Decentralization: Web3 aims to distribute power away from centralized entities.
• Blockchain-Based: It’s envisioned to run on blockchain or Distributed Ledger Technology (DLT).
• Trustless Internet: Wood believes Web3 can create a “trustless internet” where algorithms and smart contracts replace the need to trust intermediaries.
• Peer-to-Peer Networks: Inspired by Ethereum, the idea is to create services where many users contribute, reducing the power of any single entity.

Wood argues that Web3 will revolutionize society and the economy by making value and information exchange more secure, efficient, and transparent.

The Skepticism and the Hype

Wood’s definition has gained significant traction, but also its fair share of criticism. Remember Elon Musk’s take? He called Web3 “more marketing than reality.” Even Web3 proponents often admit it’s a journey, not a destination. Currently, blockchain-based services are still a small fraction of the overall internet traffic compared to Web2 giants.

Jack Dorsey, another former Twitter CEO, also shares a nuanced perspective. Despite being a Bitcoin enthusiast, he believes Web3 isn’t as revolutionary as it’s made out to be. He argues that it might just replicate the same corporate incentives as Web2, albeit with a decentralized facade.

Web3: A Tool for User Empowerment?

Arie Trouw, Co-Founder at XYO & CEO, offers a more optimistic view. He told BeInCrypto that “Web3” can be a useful term if used correctly. He highlights the potential of Web3 to empower users by allowing them to control and monetize their data, bypassing Big Tech gatekeepers.

According to Trouw, Web3 is crucial for disrupting centralized systems and moving towards an open-source model for the internet.

The Semantic Web vs. Crypto Web3: A Clash of Definitions

Adding to the confusion, Tim Berners-Lee himself expressed disappointment that the “Web3” name was adopted by the blockchain/crypto community. He emphasized that his original vision of the Semantic Web is distinct from the current blockchain-centric interpretation.

The Crypto Connotation: A Double-Edged Sword

Another challenge for Web3 is its strong association with cryptocurrencies. While both rely on cryptography and blockchain, they aren’t synonymous. The recent collapses of crypto giants like FTX and Celsius have further fueled negative perceptions around the term.

Trouw acknowledges that “crypto” has become somewhat “tainted,” associated with get-rich-quick schemes and financial crimes. He suggests that terms like “Blockchain,” “Self-Sovereignty,” and “Zero Knowledge” might better represent the underlying innovations, even if they lack the catchy appeal of “Crypto.”

Beyond Tokens: Simplifying Web3 Access

Gavin Wood himself has even tried to distance Web3 from the complexities of cryptocurrencies, particularly the need to navigate various tokens. He believes that Web3 services should ideally become accessible without requiring users to deal with token exchanges. This shift, he argues, would be a significant step forward in making Web3 more user-friendly and mainstream.

The Verdict?

So, is Web3 just rebranded blockchain? The answer is complex. While some see it as a marketing term overshadowing the core technology of blockchain, others view it as a genuine evolution towards a more decentralized and user-centric internet. The reality likely lies somewhere in between. Web3, in its current popular interpretation, heavily leverages blockchain technology but aspires to be more than just that. It’s a vision, still unfolding, with the potential to reshape how we interact with the internet. Whether it lives up to the hype remains to be seen, but the conversation around Web3 is undoubtedly shaping the future of the digital world.