Web 3 technology has led to a host of innovations and advancements in the tech sector. It provided solutions to several problems that we faced in the world. But the fact that the actual potential of this technology can never be ascertained until and unless it is completely harnessed into the web infrastructure. However, this doesn’t deter us from identifying the true potential it has. On the contrary, we also have looked into some of the possible issues or drawbacks that this new-age technology can possess, which will be discussed briefly later in the article.
Web 3 Meaning
People have been searching about the Web3 meaning and that is what we want to discuss first for a better overview of this technological advancement. Web3 meaning curated from various platforms states that it is a new way of iterating the World Wide Web (WWW) with Web 3.0 examples such as blockchain technologies, decentralisation, and cryptocurrencies. A major part of it also refers to token-based economics that extends into the NFT domain. The sectors it has given rise to such as blockchain have revolutionised the way different fields operate in the world.
Acceptance Of Web 3 In India
The adoption and acceptance of Web 3.0 technologies in India have been increasing lately. In an interview by Outlook India, Dileep Seinberg, CEO and Founder of MuffinPay, noted that:
The technology talked about here made its way into India a few years ago and the country has accepted it largely. The nation is one of the initial adopters of this technology. Not only that it had also been also ranked first in global crypto adoption, as per a survey conducted by Finer, which is a global research conducting company. The country then saw a host of Web 3 start-ups including WazirX and currently, it is home to about 230 such new businesses. Along similar lines, Seinberg went to say that:
However, not all that glitters is gold, therefore, this technology has its own set of limitations alongside potential benefits that have been discussed in the section below.
Benefits Of Web 3.0
The potential advantages of Web3 technology have been noted below.
1. Fair And Quick
The birth of cryptocurrencies is because of Web3 technology and these have provided innumerable solutions that are both fair and fast. These digital currencies aid in quicker transactions around the world, especially, cross-border payments. With proper regulation of the domain, the true potential of it can be harnessed. Cryptos can be used for all sorts of financial activities like investing, savings, borrowing, lending, and even making payments.
Also, blockchain technologies created under Web 3 are completely transparent, which proves that it does operate on a fair approach. Today, blockchain has been integrated into various sectors including healthcare and supply chains for maintaining track records. This is due to the fact that blockchain would not make errors that manual record keeping would do.
2. Direct Connection Between Dealers And Customers
Web 3.0 eradicates the need for middlemen between retailers and customers, enabling them to communicate with each other directly. This is a change that was extremely necessary. For ages, people have been exploited by middlemen and their actual needs were never recognised by goods or services providers. In addition, the amount of profits that used to go into the pockets of these middlemen was high. This problem is indeed solved with Web3 integration. In the case of non-fungible tokens (NFTs), the artist can directly contact the interested peeps and sell them without the hassle of having other people in the process.
3. The Concept Of Decentralisation
Web3 is capable of altering the entire corporate world as it introduces the concept of decentralisation. This will change the way the business industry works currently. It would allow the community to have decentralised and independent control over their operations and decisions. For now, the hierarchical corporate control is in function but that can soon be over if Web3 makes it into the web infrastructure. Explaining this, Kavya Prasad, the Founder of Lumos Labs, who was quoted by Outlook India, said that:
Limitations Of Web 3.0
The drawbacks or limitations of Web 3.0 technologies have been noted below.
1. Increasing Cyber Crimes
Due to the introduction of blockchain and cryptocurrencies, there has been a spike in the number of cyber crimes. This is because not many people know how this technology works and therefore, fall prey to false promises or scams. Web 3.0 examples concerning cybercrime mostly revolve around cryptocurrencies as people are often scammed in the domain after being promised fake high returns. Sometimes, funds are hacked from their online wallets due to the lack of security in this domain.
2. No Unanimous Regulation
The blockchain and digital currency sector are unregulated in several countries. Also, the point that every nation wants to regulate the global crypto market in their peripheries in their own way has given rise to international unrest. Global cooperation has been hindered because of the unavailability of regulations that adhere to all the areas in the world. While China has completely banned crypto, India is trying to regulate the domain immensely. These different ways of approach are a matter of concern really. This is because, in this manner, no country would be able to achieve their set goals.
3. Requires Advanced Gadgets
Web3 technology is complex and does not work on gadgets that are not advanced. Therefore, the reach of it is limited. People have to build newer technologies to harness the true potential of this modern-age technology, which would require time, effort, and money. Thus, the process will be slow and will create limitations in the integration of this technology. Seinberg further noted that:
An Advanced Round-Up!
Web 3 technology indeed has a host of capabilities but the fact that it has its own limitations can never be ignored. The pros of this tech are that it is able to provide fair and quick solutions to issues, decentralised business domain, and direct communication between sellers and customers. The cons include the fact that cybercrimes have been increasing due to this technology, no specific regulations around the world, and the requirement for advanced gadgets. However, we do think that with proper moderation and efforts these drawbacks can be adjusted a bit.