Web3 is the hot topic on everyone’s lips, but when you step back from the craze, a pressing issue needs to be raised: Can these initiatives completely replace Web2? And if so, what is getting in the way of this happening?
During the Web2 era, companies like Google and Facebook have prospered, raking in billions of dollars in earnings and having a significant impact on how the internet is structured. But it’s not certain that they will continue to have an impact. The web’s 30-year history is littered with the failures of once-unbreakable businesses. MySpace is a good illustration.
Web3 is pitching itself as a democratizing force that returns power to the people amid numerous worries about how user data is collected and used as well as worries that content creators aren’t getting fairly compensated for their labor. It has been almost a year since Facebook changed its name to Meta and announced plans to concentrate on the Metaverse, demonstrating that even the Web2 juggernauts themselves recognize the possibilities of this new strategy.
Although it is commendable that Web3 startups have such lofty goals, there are obstacles that must be overcome. Critics correctly draw attention to the fact that some blockchains need a significant amount of energy, especially those that use a Proof-of-Work consensus process. They contend that protecting the environment cannot come at the expense of leveling the playing field online. There are also safety concerns to consider given the staggering number of DeFi protocols and cross-chain bridges that have been the target of eye-watering hacks, with billions of dollars destroyed.
The infrastructure that supports Web3 projects must have fully decentralized data management in order for them to realize their full potential. To do this, centralized cloud service providers like Amazon Web Services must no longer be relied upon. Blockchains must be immutable, reasonably priced, and more environmentally conscious if owners are to have a say in how they are used. It takes some effort to check off all of these facets.
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