What is Web3? In simple terms, in the world of Web3, everyone can “directly own and control their own data” without having to surrender it to centralized platforms. For instance, Meta recently announced that it would use Facebook and Instagram users’ posts and photos as material for training artificial intelligence (AI). In the world of Web3, you can have complete control and ownership over this data.
Web3, also known as decentralized internet, is a new generation network built on blockchain technology. Its core concept of “decentralization” is a form of power distribution, allowing internet users to not only contribute content and data but also become the “actual owners” of that data.
The concept of digital assets in the Web3 world is also gaining popularity, with cryptocurrencies and non-fungible tokens (NFTs) rising in prominence. This provides a huge market opportunity for Web3 and becomes the first impression for most people. Both businesses and individual retail investors can create and trade these digital assets to generate income.
Furthermore, Web3 promotes new investment models such as decentralized finance (DeFi) through its decentralized concept and blockchain technology. Users no longer need to rely on financial institutions such as brokers and banks to provide financial tools. Instead, they can engage in financial activities such as buying, selling, and lending transactions using smart contracts on the blockchain, providing investors with unparalleled flexibility and benefits compared to traditional banking systems.
How will Web3 reshape the internet world? Alex Tapscott, a certified financial analyst (CFA) and the General Manager of Digital Assets at Ninepoint Partners, an elite independent investment management firm, explores this topic in his latest book, “Web3 New Opportunities,” which has become a bestseller in The Wall Street Journal and The Globe and Mail. Tapscott points out in his book that Web3 will completely change existing business models. In the Web2 world, large tech giants own and operate data platforms and profit from the data created by users. However, in the Web3 framework, the individuals creating the data, i.e., the users themselves, will be able to directly benefit economically. This opportunity is not limited to data creators; anyone who contributes to the internet has the chance to receive rewards.
Tapscott reveals that he was an early user of Facebook himself, where he uploaded photos and updated information. However, he realized that everything he did was helping Facebook create value, without expecting any compensation or rewards for himself. Additionally, he didn’t anticipate that all the voluntarily shared information would be collected or resold by the company without his knowledge, describing it as a “deal with the devil” that they were unaware of making.
However, in the decentralized applications of the Web3 world, they are not controlled by management teams or project parties; instead, they are owned by the users themselves. Users can choose to sell their personal data to advertisers, AI training models, or any other projects for monetization or keep it completely private to prioritize user privacy. Regardless of the decision, it is made by the individual user. Even large tech companies like Microsoft and Facebook have started to embrace Web3 by establishing or supporting decentralized platforms to expand their business scope.
Despite the many opportunities that Web3 brings, it also faces challenges like scalability, security issues, and uncertainty in legal regulations. Tapscott emphasizes that “the future of Web3 will not only be technological progress but will also bring significant changes to culture and social structures.”