Trillion-dollar digital behemoths like Google and Amazon have become so massive and influential that they seem untouchable. They care more about their own profits than about user privacy, competition, government regulations, or fair play. Governments around the world are trying to restore some balance to the digital landscape. In the US, Google is facing an antitrust trial, while in Canada, Facebook and Google are fighting a new law that would require them to give more profit to media companies. The European Union has introduced the Digital Markets Act to ensure fair treatment of user data. However, governments alone cannot fix the problems created by these tech giants.
The founder of the World Wide Web, Sir Tim Berners-Lee, even acknowledges that technology giants are corrupting his vision of the Web. Privacy is continually undermined, social media is harmful to our kids, and creators lose control of their work. But there is hope on the horizon with the emergence of Web3 technologies.
Web3 is an umbrella term for core technologies like blockchain networks, artificial intelligence (AI), the Internet of Things (IoT), and extended reality (XR). The original web, Web1, consisted of static content on websites, while Web2 brought about collaborative apps and online communities. Although Web2 provided global connectivity and economic opportunities, it also came at a cost. Big tech companies like Google rely on advertising and collect as much user data as possible. This data is valuable for personalizing content but also creates echo chambers and amplifies extremism. They also control access to operating systems like iOS and Android.
Web3 promises to fix many of the shortcomings of the Internet. It offers decentralization, peer-to-peer transactions, and economic empowerment for individuals. Tokens, which are digital assets, allow people to transact without intermediaries and have an economic stake in their digital existence. Web3 also simplifies how creators monetize their work and provides more control over their intellectual property. Artificial intelligence can help creators thrive by instantly and digitally providing royalties when their work is used to train AI. Smart contracts on Web3 platforms are self-executing, eliminating the need for lawyers.
Finance is one area where Web3 is already making an impact. Stablecoins, which are backed by traditional currency, have grown to over $100 billion in value. Traditional players like PayPal, Citigroup, Visa, and J.P. Morgan are taking notice and entering the stablecoin market. Web3 also has the potential to concentrate the power of digital culture in the hands of creators and users instead of trillion-dollar tech giants.
However, there are challenges to overcome. Web3 applications still rely on Web2 infrastructure, controlled by companies that develop the apps. To fulfill Web3’s true potential, there needs to be decentralized control over internet connectivity, storage, and spatial data. This evolution could lead to user-owned networks worth trillions of dollars.
Web3 is not a panacea and has its limitations. Regulation is still unclear, and there are concerns about speculation and gambling with the proliferation of tokens. Furthermore, there is a risk that Web3 could create new entities that perpetuate the mistakes and inequities of Web2.
Ultimately, technology is not inherently good or bad; it depends on how it is used. Web3 has the potential to usher in a new era of freedom, where individuals can transact peer-to-peer, preserve their privacy, and opt out of powerful platforms. The future of the Web lies in the hands of those who create and use it.
