What Is Web3? (+ How Does It Work?)

Since the rise of the web in the 1990s, the internet has been an evolving space. What started as a repository for information turned into a place where people connect with others and share experiences. Today, the internet continues to develop, and its most recent incarnation is Web3 or Web3.0. Web developers, content managers, legal analysts, and more have begun to explore careers in this field. Web3 may be in its infancy, but understanding how it works can help determine if it's a field you want to explore.

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Web3 and Blockchain Fundamentals

There is a lot of hype around Web3 and blockchain. As with any disruptive technology, there are many competing sources of information. But if we look beyond ...

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What is Web3?

Web3 is a term used to describe an idea for the next stage of internet development. The term was introduced in 2014 by Gavin Wood, a cofounder of Ethereum, a blockchain-based software platform. It was described as a decentralised future version of the internet that lessened the influence of the corporations currently dominating Web 2.0, namely Meta, Amazon, and Google.

In this version of the internet, users are meant to have greater control over their data instead of it being shared with companies that monetise personal information. The result is intended to be an interactive internet experience with increased ownership and privacy of personal data.

How do companies monetise our data?

In Web 2.0, when you scroll through a social media platform or use a search engine, you receive ads related to the types of accounts and websites you are browsing. That's because companies collect data about your online activities. These companies monetise this data by selling ads to companies they think offer products and services you're interested in purchasing.

Is Web3 the same thing as the metaverse?

Although Web3 and the metaverse overlap, they are not the same in theory or practice. Web3 describes one way today’s internet can evolve. The metaverse is a space where people interact in an immersive, virtual world. They share a vision of the internet as an extension of the real world, but they are not interchangeable terms.

Organisations acting like a central governing authority (Web 2.0 model) may own the metaverse, or it can take the form of a peer-to-peer network (Web3).

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What is the Metaverse?

The metaverse isn’t just for gamers or developers, it will be for everyone. In this free course from the experts at Meta, you’ll learn what the metaverse ...

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BlockChain, Human Computer Interaction, Innovation, Finance, Market Research, User Experience

History of the web so far

To understand how Web3 works and why it's poised to change the way people interact online, it helps to learn the history of the web. You can divide the internet into two distinct periods called Web 1.0 and Web 2.0.

Web 1.0

Web 1.0 dates back to the early 1990s. This version of the internet featured static web pages coded in HTML. It created an open and decentralised place where users could search for and find information through browsers like Netscape and Internet Explorer. This version of the internet introduced sites like WebMD, where they could look up medical conditions and symptoms, and GeoCities that let users create web pages in online neighbourhoods.

Web 2.0

By the decade's end, people began seeing the internet as more than an online encyclopaedia. The rise of blogging sites, forums, and wikis gave users places to share information and connect with other people. This ushered in Web 2.0, which rose to prominence in the early to mid-2000s. Technology companies leveraged the power of social media to develop an infrastructure that allowed a small number of companies to hold a lot of power. These companies include Meta, X, Google, and Amazon.

How does Web3 work?

Web3 works by combining the decentralisation of Web 1.0 with the interactiveness of Web 2.0 in a user-friendly interface. Ideally, it gives individual users more control over their online experience and increased security through blockchain technology (the decentralised transaction ledger that stores data in blocks that all users can see). Web 2.0 forces you to rely on the technology and security of big tech companies. Web3 puts the control in your hands—and the hands of all other users. Users contributing to Web3 can receive tokens in exchange for participating in the development.

Advantages of Web3

Many of Web3's advantages stem from its decentralised structure, which shifts control of the internet from big tech companies to those who use it. For example, internet users on Web 2.0 must log in to social networks to access, share, or interact with a lot of content. The platform ultimately controls who can join and how they interact with others. It can remove users or limit what they can do on the platform. Web3 gives this control to the community, which can then self-govern the content and the people sharing it. In addition, a decentralised internet comes with the following benefits:

• Interaction: Users should have more opportunities to interact with content and other users in Web3 and experience higher engagement levels than with Web 2.0 and 1.0 websites and platforms.

• Ownership: Web3 users are more than content consumers. They are owners of the community who receive incentives for participation instead of being asked to trade their personal data to access platforms.

• Permissions: All network users have access to the network's data and permission to use the service.

• Privacy: In Web3, your identity links to your digital wallet. What you do online is open to the public, but you can keep your identity a secret.

• Speed: The use of artificial intelligence, machine learning, and smart contracts via the blockchain makes it possible to get more relevant data to end users in less time.

Disadvantages of Web3

While Web3 offers promising advancements in decentralised technology, increased privacy, and user control, you should be aware of the challenges and drawbacks associated with its adoption. Understanding the disadvantages below can help users and businesses make informed decisions about integrating Web3 into their operations.

• Cost: Blockchain technology is expensive and requires considerable energy to operate. This applies to Web3, which operates on this technology.

• Hardware: Users may need to invest in newer equipment to access the full benefits of Web3 platforms and applications. Older devices may need more memory or capability.

• Regulation: Decentralisation turns the responsibility of regulating content and user actions over to the public. This can create spaces for questionable content to appear online, leaving users of autonomous organisations to govern themselves.

• Scalability: Using blockchain to process transactions in a peer-to-peer network requires considerable computing power that currently needs to be more scalable. This lack of scale increases costs and restricts who can participate, which leads to centralisation by default.

How to get into Web3

Get involved in Web3 by working for or using applications that already operate under Web3 principles. These companies tend to operate within the technology sector and offer services like networking, facilitating cryptocurrency transactions, and developing software and infrastructure solutions. Helium Network, Coinbase Global, and Huddle01 are examples of organisations in the Web3 market.

Web3 careers

Web3 jobs cover a range of roles, from administrative assistant and community manager to Web3 developer and C-suite positions. They also need support staff, managers, researchers, engineers, and sales personnel. Here are some Web3 jobs:

• Beta tester: Beta testers give the first glimpse of a new platform or application. They try it and report back to the developers about their experience. This helps them identify and address problems before they release the product to the public.

• Community manager or moderator: Community managers play an important role in the success of online communities. They onboard new members, monitor and maintain resources, keep track of community interactions, and solve problems to ensure the community meets the needs of the members and stakeholders.

• Cryptocurrency exchange/NFT researcher or analyst: This role puts research skills to use. Professionals in this job keep track of the market performance and pricing of different types of cryptocurrency, digital assets, or non-fungible tokens (NFT). The data gathered helps investors decide how to invest in crypto.

• Marketer: Web3 has the potential to transform online marketing, as it emphasises building communities, relationships, and engagement. Marketers promote goods and services but may have less access to customer data compared to Web 2.0. You may spend more time interacting with customers to understand their needs.

• Technical writer: Technical writers can play an important role in helping the general public understand how Web3 works and benefits them. They take complex technical details and convert them into simpler language for the general public. They also help Web3 companies and their founders get new ideas and position themselves as experts.

• Web3 developer: Web3 developers may work as front-end, back-end, or full-stack developers. Tasks may include writing and testing code, designing interfaces, and building contracts.

Skills you need to work in Web3

The skills and education you need to work in Web3 vary. For example, a front-end Web3 developer may need skills like UX experience and programming languages. However, a Web3 marketer may rely on a different skill set that can include communication and data analysis. You may notice the following skills in Web3 job descriptions:

• Blockchain technology

• Cryptography

• REACT

• Smart contracts

• Non-fungible token creation

• Data structures

• Ethereum Virtual Machine

• Front-end web development

• Software engineering

• AWS

• UX design

Aside from technical skills, workplace skills are important and can help you add value to an employer or a project. You will likely see these workplace skills listed in job descriptions:

• Communication

• Flexibility

• Project management

• Visual thinking

• Storytelling

• Teamwork

Education

Like with skills, the education requirements for Web3 jobs vary depending on the role. For example, if you want to work as a Web3 marketer, you may need a degree in marketing or a related field. Similarly, a software developer may want a degree in computer science.

However, you may find it more beneficial to gain hands-on experience and develop the skills you need to work in Web3 than earning a degree. You can identify the type of education you need by browsing job descriptions.

Learn more about blockchain or cryptocurrency with online courses, coding bootcamps, and taking classes at universities. Since blockchain technology underpins Web3, learning how it works and how to use it can benefit your career. Other topics to explore include programming languages, smart contracts, Solidity, and non-fungible tokens.

Build your Web3 expertise with Coursera 

Today, Web3, or Web3.0, represents the latest phase of this evolution, promising a decentralized internet with increased user control over data. Web3's potential has attracted professionals from various fields, such as web development and legal analysis, to explore careers in this burgeoning sector.

You can learn about the technologies that support Web3 by taking an online programme like Web3 and Blockchain Fundamentals. You can gain expertise in smart contracts, digital assets, and business strategy while earning a shareable certificate:

course

Web3 and Blockchain Fundamentals

There is a lot of hype around Web3 and blockchain. As with any disruptive technology, there are many competing sources of information. But if we look beyond ...

4.7

(88 ratings)

12,174 already enrolled

Learn More

Average time: 3 hour(s)

Learn at your own pace