The Top Five Web3 Developments of 2023

The idea is to build an internet that isn’t ruled by massive corporations like Google and Facebook, which currently set most of the rules about what we can and can’t do online. The phrase “Web3” covers some developments that make up what is sometimes called the “decentralized Internet”.

According to web3, we now have the means to build online spaces that are truly ours, and to implement digital democracies, thanks to technologies such as blockchain, cryptocurrencies, non-fungible tokens and decentralized autonomous organizations (DAOs).

Why Web 3? So, just a quick summary of the history of the web: web1 was the first version of the world wide web that was mostly read-only and consisted of static websites. The user-generated web, also known as web 2 or web 2.0, was created with the introduction of social media platforms such as MySpace and, eventually, Facebook.

This brings us to Web 3 or the Decentralized Web! However, the proposal is not without its opponents, who worry that in practice it may simply result in a transfer of power from one group of technocrats to another. Others have drawn attention to the significant electricity consumption required to operate systems such as blockchain, which enable decentralization.

These are undoubtedly issues that need to be resolved before the idea can gain the public support it needs to realize its full potential. We may see progress in this direction in 2023, or continued rejection of the idea altogether. Here are some developments that will influence web3 development in 2023.

Top Five Web Developments for 2023
Top Five Web Developments for 2023

The “next level” of the Internet is being discussed by everyone from Facebook to Microsoft, and the topic of the metaverse is currently popular almost everywhere. However, proponents of the future of web3 have their own ideas, and they do not include platforms that are under the control of Silicon Valley giants.

The two most famous decentralized metauniverse platforms are probably Decentraland and The Sandbox. The data of these virtual worlds is stored on a blockchain, specifically the Ethereum blockchain. This means that only those who are authorized can make adjustments or add and remove components.

The server that stores the world’s data has no single owner who can censor content that doesn’t align with their political beliefs or shut it down completely if they want to. For websites like Facebook, where the company that controls the servers will always have the final say, this is definitely not the case!

We should expect pioneers to continue laying the groundwork that could one day make decentralized virtual environments a reality in 2023. Decentralized virtual environments are a key component of the vision for where web3 will take us in the coming decade.

Useful NFTs

The unique tokens that exist on the blockchain are known as non-fungible tokens. An NFT can be used to represent anything unique, unlike, say, cryptocurrencies where there can be millions of similar tokens available on the chain.

NFTs are probably familiar to most people as works of computer art that routinely sell for hundreds or millions of dollars (or did, at least before the market for them partially collapsed this year)

Tokenization of goods, information and even ideas in the digital and physical realms is where they will really add value, according to those who believe in the future of the decentralized network3. However, enabling digital art sales is only one application for them.

NFTs on the decentralized internet can provide us with the keys we need to interact with the digital goods and services we buy. Smart contracts or the keys to our virtual homes in the metaverse can also be represented by them. Smart contracts are agreements we enter into with third parties to receive products and services.

In 2023, the focus will be on NFTs that “do something” or “useful NFTs” as opposed to NFTs that simply represent virtual works of art or other comparable objects. This should influence people’s perceptions of this potentially hugely transformative technology and help people see how they fit into the emerging web3 ecosystem.

Independent social networks

The development of a decentralized social network is one of the goals of the web3 movement. It might even be due to none other than Elon Musk if it happens in 2023.

To prevent spambots and trolling, the Tesla CEO said he wants to build a social network where members will have to pay a little cryptocurrency every time they submit a comment. These concepts were made public as a result of the legal disputes surrounding Musk’s recurring ambitions to acquire Twitter.

A key advantage of the decentralized social network, according to Web3 proponents, is that it will be immune to censorship. What can and cannot be said is currently decided by companies like Meta (owner of Facebook, WhatsApp and Instagram) and Twitter.

The general public (including governments and legislators) will ultimately have to answer the question of whether or not this is a good thing if it means that web3 users will eventually be able to say whatever they want without censorship.

Ecological network3

Even the most ardent supporters of web3 have to admit that the technology has problems with its environmental impact. At its peak, the energy consumption of the Bitcoin blockchain network alone is predicted to be 130 terawatts per hour, and each Bitcoin transaction produces 772 kilograms of CO2 emissions.

This is clearly unsustainable, and Tesla CEO Elon Musk has cited massive energy consumption as the reason his company is pulling out of the technology. Since then, a concerted effort has been made to reduce energy consumption without compromising the use of blockchain and related web3 technologies.

Most importantly, the Ethereum network recently switched from a proof-of-work mechanism to a proof-of-stage mechanism, which is said to have resulted in a 98% reduction in the total amount of energy required on the network. In addition to minimizing the energy that web3 initiatives consume directly, in 2023 we can expect further efforts to use the technology to achieve green goals.

The potential for organizations to coordinate and develop collaborative technologies aimed at accelerating climate change mitigation has been recognized by the World Economic Forum. Restorative finance (ReFi), a strategy currently being explored, aims to promote financial incentives for initiatives that restore or protect “resources vital to the well-being of the planet”.

Government regulation and interference in Web3 is increasing

The potential (and some would argue the need) for governments to step in to monitor and control the impact on economies, society and the environment is growing as the transformative impact of this technology becomes more apparent. States in the US, including Wyoming, have positioned themselves as “web3-friendly” zones by creating and passing their own legislation.

Top Five Web Developments for 2023
Top Five Web Developments for 2023

The concept is that companies engaged in web3 activity will benefit from preferential treatment and unique tax considerations in exchange for accepting regulation and oversight. Colorado became the first state to officially accept cryptocurrencies as payment for taxes and other government spending this year as well. Dubai has demonstrated that it is eager to become a web3 and crypto-friendly society outside the US.

The emirate has touted itself as a natural home for innovation in artificial intelligence, cloud computing and the metaverse – all technologies closely linked to new web3 developments – and has developed economic programs to attract web3 companies to work to establish operations on its territory.

In 2023, other nations are expected to take steps to portray themselves as Web3-friendly, often through the use of central bank digital currencies such as China’s digital yuan and India’s upcoming e-rupee.

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