What is Web3? Meet the UK’s newest breed

Originally coined by computer scientist Gavin Wood in 2014, Web3 has since become a buzzword favored by the likes of Jack Dorsey and Elon Musk.

With the new version of the web, many of modern technology’s biggest talking points are included, including blockchain, cryptocurrencies, and non-fungible tokens (NFTs).

As the demand for decentralisation continues to soar, hundreds of companies are flocking to Web3, with employees at giant tech companies such as Amazon, Facebook, and Google also leaving their jobs to join Web3 companies.

There is a lot of work being done by Web3 developers to bring higher levels of security and opportunity to the internet’s future.

Web1, Web2 and Web3 explained.

Web1

Web1 was the first medium through which businesses were able to broadcast key information to the public through the internet.

Web2

Later, Web2 introduced and innovated social media, which further emphasised user-generated content. A third internet defined by decentralisation is now being created by technologists, independent of governments and large corporations.

Web3

In Web3, information is stored and shared securely using new technological advancements. Blockchain is the most important of these technologies. Blockchain data cannot be edited by anyone, whether it is an individual, company, or government. Therefore, blockchain technology plays a crucial role in Web3 development and startup growth.

The lack of centralised regulation of Web3 naturally raises questions about its stability and security. However, significant advancements have been made in this field, primarily with the rise of decentralised autonomous organisations (DAOs). By coding rules into smart contracts, DAOs govern Web3 protocols or communities to monitor and regulate digital interactions. In DAOs, individuals buy into the organisation using crypto assets like cryptocurrency or NFTs, and vote on decisions as a flat hierarchy.

Web3 Applications

NFTs

The full potential of Web3 is still untapped. NFTs and cryptocurrencies are Web3’s biggest uses right now. As digital assets, NFTs are stored on blockchain technology, where they are recorded as ownership data, and can be sold and traded like digital currencies. Multiple channels can be used to trade digital assets through NFT marketplaces and apps, such as OpenSea.

Cryptocurrencies

As well as Web3’s decentralised infrastructure, cryptocurrency rely on blockchain technology. It is true that cryptocurrencies are a form of digital currency, but they are not regulated by a central authority. Blockchains record all cryptocurrency transactions, just as they do with NFTs. As opposed to NFTs, crypto assets are fungible (i.e. they can be replaced and traded with identical tokens). A cryptocurrency wallet, such as Coinbase, is a convenient way for people to store and exchange cryptocurrency assets (such as Bitcoin). Technologies such as Web3 facilitate the entire cryptocurrency ecosystem.

Metaverse

“The metaverse” is also deeply linked to Web3, a new concept that, in part, has been gaining media attention thanks to Mark Zuckerberg. A metaverse is a virtual ecosystem in which users interact with their environment and with each other other via digital avatars. By using technology such as virtual reality (VR), the metaverse will make the internet experience more interactive and social.

10 top Web3 companies in the UK

Rvvup
Sector: Fintech
Location: London
Year founded: 2020

Mailchain
Sector: Telecommunications
Location: London
Year founded: 2021
.
Playmint
Sector: Online games publishing
Location: Brighton
Year founded: 2021

Beyond
Sector: Blockchain
Location: London
Year founded: 2021

Footium
Sector: Online games publishing
Location: London
Year founded: 2021

hundo
Sector: Internet platform
Location: London
Year founded: 2020

CRANQ
Sector: Software-as-a-Service (SaaS)
Location: London
Year founded: 2019

Cauldron
Sector: Online games publishing
Location: London
Year founded: 2021

Crucible
Sector: Blockchain
Location: London
Year founded: 2020
.