What's Next - Web3 or Web0?

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I have just finished reading The Circle by Dave Eggers, and it inspired me to consider whether there would be widespread adoption of Web3 or whether the “Big Techs” would completely centralise the Internet by tempting users with a whole new range of useful features. 

The Circle, first published in 2013, describes how Mae is hired to work for the Circle, the world’s most powerful internet company. She feels she’s been given the opportunity of a lifetime.

Based on a Californian campus, the Circle links users’ passwords, emails, social media and finances with their universal operating system, resulting in one online identity and a new age of transparency.

Mae can’t believe her great fortune to work for them — even though life beyond the campus grows distant, there's pressure to engage with the company's social media platform, a strange encounter with a colleague, and her role at the Circle becomes increasingly public.

Are we moving towards this manifestation of the web, and should it be called Web0 or Web4? I'll be discussing this question later. In the meantime, it would be a good idea to have a look at the evolution of the web.

A Brief History of the Web

Web1

Web1, or Web 1.0, refers to the early stages of the World Wide Web when it first emerged and became accessible to the public. This period lasted from the early 1990s to the early 2000s. Web 1.0 was characterised by:

• Static Content - Web pages were primarily static, meaning they displayed fixed content that users could read but not interact with. HTML (Hypertext Markup Language) was the dominant technology for creating web pages.

• Limited Interactivity - Interaction on Web 1.0 was minimal. Websites were mainly used for information dissemination. User engagement was limited to reading and clicking hyperlinks to navigate between pages.

• Centralised Control - Content creation and publication were mostly in the hands of a few individuals or organisations. The internet was more of a one-way communication channel, with content creators publishing information for users to consume.

• Slow Connection Speeds - Internet connection speeds during the Web1.0 era were much slower compared to today. This affected the multimedia content available on websites, which was often limited to simple graphics and text.

• Lack of Social Interaction - Social media as we know it today did not exist in the Web 1.0 era. There were no platforms for users to create profiles, share personal content, or connect with others in a social networking context.

• Search Engines - The concept of search engines became prominent during Web 1.0. Google, which was founded in 1998, emerged as a powerful search engine, providing users with a more efficient way to find information on the web.

The transition from Web 1.0 to Web 2.0 marked a significant shift in the development of the Internet. Web 2.0 introduced more dynamic and interactive features, including social media, user-generated content and web applications that allowed for greater user participation and collaboration.

Web2

Web2, or Web 2.0, refers to the second generation of the World Wide Web, characterised by a shift towards more dynamic and interactive online content and collaboration. The term “Web 2.0” emerged in the early 2000s to describe a new phase of the internet that moved beyond the static, one-way communication of Web 1.0. The key features of Web 2.0 were:

• User Interaction and Collaboration - Web 2.0 brought about a significant increase in user engagement. Websites and applications started to facilitate user-generated content, collaboration and interaction. Users could contribute to content creation, share information, and participate in online communities.

• Social Media - The rise of social media platforms is one of the defining aspects of Web 2.0. Platforms like Facebook, Twitter, and LinkedIn allow users to create profiles, connect with others and share content. Social media has become a central component of online communication.

• Blogs and Wikis - Web 2.0 saw the proliferation of blogs and wikis, enabling individuals to easily publish content and collaborate on the web. Blogging platforms like WordPress and content-sharing websites like Wikipedia exemplify this shift towards user-generated content.

• Rich User Interfaces - Web 2.0 brought improvements in user interfaces, making websites more visually appealing and interactive. Technologies such as AJAX (Asynchronous JavaScript and XML) allowed for dynamic updates without requiring full page reloads.

• Web Applications - The advent of web applications became prominent during Web 2.0. Instead of static web pages, users could interact with dynamic applications directly through their web browsers. Google Docs, Gmail, and other cloud-based services are examples of Web 2.0 applications.

• E-commerce Growth - Web 2.0 witnessed the expansion of e-commerce platforms. Online shopping became more common, and businesses increasingly utilised the web for marketing, customer engagement and transactions.

• Search Engine Improvements - Search engines continued to evolve during Web 2.0, with Google refining its algorithms to provide more accurate and relevant search results. The focus on search engine optimisation (SEO) became crucial for web visibility.

• Mobile Connectivity - The proliferation of mobile devices and improved internet connectivity contributed to the mobile web experience. Web 2.0 saw the rise of mobile apps and responsive web design to accommodate a growing mobile user base.

Overall, Web 2.0 marked a transition towards a more user-centric, collaborative and interactive web experience, setting the stage for further developments such as Web 3.0.

Web3

Web3 refers to the third era of the internet. It represents a vision for a more decentralised, open and user-centric web.

The term “Web3” was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms. The key aspects of Web3 are:

• Decentralisation - Web3 aims to reduce reliance on central authorities and intermediaries. It leverages technologies like blockchain to create decentralised systems where users have more control over their data and transactions.

• Blockchain Technology - Blockchain, the underlying technology of cryptocurrencies like Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH), plays a central role in Web3. It enables transparent and tamper-proof record-keeping, fostering trust in decentralised applications (dApps) and smart contracts.

Bitcoin was the first decentralised cryptocurrency. It was created by an individual or group of people using the pseudonym Satoshi Nakamoto. Nakamoto released the Bitcoin whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System in 2008, and the Bitcoin network went live in January 2009 with the “mining” of the first block, known as the “genesis block.”

• Cryptocurrencies and Tokens - Digital assets like cryptocurrencies and tokens are integral to Web3. They facilitate peer-to-peer transactions and incentivise participants within decentralised networks.

• Smart Contracts - These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts enable automated and trustless transactions, reducing the need for intermediaries.

• Interoperability - Web3 aims to improve interoperability between different platforms and blockchains. This allows users and developers to interact seamlessly across various decentralised applications and ecosystems.

• User Control and Privacy - Web3 emphasises giving users more control over their personal data. Users should be able to own, manage, and share their data on their terms, enhancing privacy and security.

• Web3 Technologies - Besides blockchain, technologies like decentralised storage (e.g., IPFS), decentralised identity (DID), and decentralised finance (DeFi) contribute to the Web3 ecosystem.

Web0

I wasn't sure whether to call this web version Web4 or Web0. If the naming is based on when a web version is introduced - like the previous eras - then it should be called Web4.

However, I wanted to emphasise centralisation versus decentralisation, with Web3 being decentralised and Web0 being completely centralised as described in The Circle. Some of the characteristics of Web3 are:

• Centralisation - All aspects of the web are controlled by one organisation (e.g. a company or government)

• Tracking - Everything you do online is tracked.

• Transparency - Politicians and business people could decide to share their actions and conversations with their constituents and customers.

• Lack of privacy - The technology available for transparency could lead to a lack of privacy, with you not being able to do anything or go anywhere without being observed and recorded.

• Single, online identity - Your identity would be held centrally rather than in multiple locations.

• Single password - You would have one password for all your logins.

• Social media - With so much information being held centrally, one dominant social media platform may exist.

Why would you choose Web0 over Web3?

Some reasons why you might choose Web0 over Web3 are:

• Having a single password for everything means that you don't have to remember or hide many different passwords.
• Having a single identity means that you wouldn't have to be subjected to "Know Your Customer" (KYC) every time you sign up for an online service.
• Crime would be reduced because everything is being observed and recorded, making the chances of being caught far higher. Certainty of detection is a higher deterrent than fines or imprisonment.
• You don't need to understand the technology.
• Your friends and colleagues will be using it.

Why would you choose Web3 over Web0?

• There is a smaller chance that the system will crash because the blockchain is run on many computers - not a single centre like Amazon web services.
• Your accounts are more secure because only you hold your passwords (keys).
• Data is stored like a secure, unhackable ledger of information.
• Resistance to censorship.
• No central power is in control of your content.
• It isn't owned by anyone.

Has Web0 Arrived Already?

Web0 hasn't arrived, but there are signs that it is making an entrance:

Centralised Data

More of your data is being centralised and, in some cases, shared. Examples of these are:

• Medical records,
• Shopping habits through debit, credit and loyalty cards.
• Website visits are tracked through the use of cookies.
• Places visited through smartphone location-enabled apps.

Presently, these data aren't held in one place by one organisation, but it is easy to imagine that a dominant organisation will make a powerful economic case for centralising these data.

Single Password

A single online password is showing signs of emerging with "Sign-in with Google" and "Sign-in with Apple".

Travel Rules

An important regulatory change came into effect in the UK on 1 September 2023. This change is part of the UK Financial Conduct Authority’s cryptoasset anti-money laundering regime.

This "Travel Rule" requires FCA-registered cryptoasset service providers to share specific transaction details, including sender and recipient identities. This could involve a delay of up to 5 minutes while data is being verified.

Sale Reporting

Starting Monday, 1 January 2024, so-called "digital platforms" will have to collect extra information about sellers, including – crucially – how many sales they've made and how much income they've generated.

The platforms will have to start automatically sharing this information with the UK tax office (His Majesty's Revenue and Customs - HMRC) by 31 January 2025 – the first lot of data-sharing will cover the current 2024 calendar year.

If all sellers are doing is selling goods online, firms will ONLY pass on data to HMRC automatically if they sell 30 or more items a year or have total earnings over the equivalent of €2000 (currently around £1700).

The rules for paying tax haven't changed. Previously, the tax office relied on taxpayers' honesty.

No affiliate links were used in the making of this story.

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