Web2 Vs Web3 – Why Integration Is The Future Of The Internet

The sheer potential of Web3 looms over us all, promising decentralization and the democratization of the Internet. Is it going to take over the world?

How about our jobs?

The future of humanity and Web3 tech is complex and much less violent than most people imagine. The fact is, we still need Web2, and we will probably need it for a long time. Amidst the fervor of blockchain enthusiasts and cryptocurrency zealots, it’s easy to forget the lessons and achievements of Web2.

The truth is that the future of digital connectivity isn’t a binary choice between Web2 and Web3. It’s about the successful integration and coexistence of both paradigms. Today, we sat down with Dr. Xiao Zhang from Ample FinTech to discuss this topic.

The Inseparable Twins of the Internet’s Evolution

Web2 is the current state of the Internet. It is characterized by centralized platforms in which the user is the product, not the client.

Giants like Facebook, Google, and Amazon dominate this world. They provide services in exchange for data, which they use to fuel their algorithms and ad revenues. Web3, on the other hand, is the blockchain-driven, decentralized internet where users control their data and digital assets.

Why can’t we just switch over to Web3 and be done with it?

Because the internet doesn’t operate in a vacuum. Web3 doesn’t negate the utility of Web2’s services and infrastructure.

Dr. Zhang  had this to say about it: “We do not believe that Web3 will replace Web2. Web3 is built on top of the same Internet where Web2 is built. It’s a protocol layer centered around the core concept of self-sovereign assets. It can solve many of the trust issues present in Web2, but not all problems are suitable for or worth solving by Web3. Even after the complete success of Web3, the paradigm of the entire internet will still be mixed. Web2 and Web3 will coexist.”

While Web3 promises to address the trust and privacy issues that plague the internet, it also presents a new set of challenges, like scalability and user adoption.

So, the ideal solution is to integrate Web2 and Web3, leveraging each model’s strengths to create a more robust, reliable, and equitable online experience.

Money Will Be the Great Equalizer

Money is often seen as the killer app for Web3. With the proliferation of digital currencies and blockchain-based financial services, Web3 has the potential to redefine financial systems.

The adoption of cryptocurrency represents the first step towards a more inclusive and efficient financial system. Web3’s underlying technology, blockchain, offers a transparent, tamper-resistant, and immutable ledger that could revolutionize how we transact on the internet.

This level of security and trust could finally bridge the gap between physical and virtual commerce, enabling economic participation for more people than ever before.

Education Is Key

Achieving global integration of Web3 will require a monumental shift in self-teaching. Both the technologically adept and the layperson alike need to be educated about the benefits and complexities of the new web.

This educational push must emphasize the mechanics of Web3 and its philosophies. Decentralization and self-sovereign identity are not just technological buzzwords but bedrock principles of Web3.

“User education is probably the biggest barrier to the widespread application of Web3. To use Web3 payment tools, users must install a Web3 wallet, create their own DID, store digital currencies, learn to make payments with digital currencies, and some advanced users will also learn how to program money. This process will teach millions of users a whole set of Web3 concepts and knowledge.” said Xiao.

People need to know that, when understood and implemented, it can empower individuals to a degree previously unimaginable.

Web3 Represents Freedom

Web2’s custodial model is a double-edged sword. While it has allowed for the creation of vast and user-friendly platforms, it has also facilitated a worrying erosion of user privacy and control.

Web3’s commitment to self-sovereignty, where users completely control their digital presence, represents a step towards redressing the balance.

It offers a vision of the internet that is less about surveillance capitalism and more about individual empowerment.

But this freedom comes with its own challenges—chief among them being the need to design systems that respect privacy without compromising security or functionality.

Overcoming Challenges

Web3 is not without its obstacles, and one of the most significant is the issue of scalability. Current blockchain technology struggles to support the transaction volumes of Web2 applications.

Ethereum is the main culprit here, with outrageous transaction times and speeds. The issue has birthed a plethora of capable Layer 2 solutions.

However, effective integration will require substantial advancements in blockchain technology to ensure that Web3 applications can handle the demands of a global user base.

Furthermore, the burgeoning field of decentralized finance (DeFi) faces significant regulatory hurdles.

Web3’s aversion to central governance presents a conundrum for regulators seeking to protect consumers and maintain market integrity. Successful integration necessitates a thoughtful approach to regulation that addresses these concerns without stifling innovation.

A Logistical and Technological Challenge

The merger of Web2 and Web3 won’t happen overnight. It will require a concerted effort by technologists, policymakers, and industry leaders to develop the standards, protocols, and infrastructure necessary to support a hybrid internet.

Legacy systems will need to be retrofitted or replaced, and new technologies will need to be developed to ensure seamless interoperability between Web2 and Web3 applications.

The Future Looks Bright

Ultimately, the prosperity of the internet and the advancement of humanity depend on innovation and adaptation.

The current divide between Web2 and Web3 reflects the natural tension that arises from technological progress. However, by recognizing the complementary nature of these two systems, we can forge a path forward that capitalizes on their respective strengths.

The future of the Internet is not an either-or proposition. It is an interdependent ecosystem where Web2 and Web3 work harmoniously to deliver a superior digital experience.

Dr. Xiao Zhangn is the co-founder of Ample FinTech, a startup that seeks to build more trust and authority within Web3 ecosystems using smart contract powered verifiable digital credentials.

“The digital economy of Web3 that we envision is a vast, automated financial network where money flows between various standardized, audited, and regulated smart credentials. Everyone can program and publish their smart credentials, joining this enormous financial network to receive financial services or provide services to others. Meanwhile, regulatory authorities can legislate through code, efficiently identifying and blocking illegal financial activities.

 

This is what we are doing at Ample. We are already one of the leaders in this direction. We will patiently construct a new Web3 payment and financial transaction network while waiting for the mass adoption of Web3.”