How Web 3.0 Works

The first “web 1.0” was a platform for static pages developed by businesses. We now have a “web 2.0” in which users create and contribute content thanks to forums and social media. To describe a web-based data processing capability that not only people but computers can use, Tim Berners-Lee coined the term “web 3.0.” 

Everything on the internet would be turned into a massive database if web 2.0 created an encyclopedia; therefore, “Web 3.0” refers to anything on the internet being converted into a huge data repository using artificial intelligence (AI). How could computerized reasoning (AI) be used to achieve and manage web 3? In one word, cyberspace.

The Semantic Web is a project led by the World Wide Web Consortium (W3C) that envisions a future where information on the web is machine-readable and can be processed by computers. The goal of the Semantic Web is to make it easier for machines to find, understand, and combine information from different sources. 

For the Semantic Web to become a reality, there needs to be a way to represent data in a format that computers can read and understand. This is where web 3 comes in.

Web 3 is the next generation of the internet, where everything is connected and can be accessed through a single platform. It’s sometimes referred to as the “Internet of Everything.” The goal of web 3 is to make the internet more accessible and useful by connecting all devices and data. This will create a seamless experience for users and allow businesses to tap into new markets and opportunities.

Web 3.0 Characteristics

The key characteristics that can help us define Web 3.0 are as follows:

  1. Semantic Web

“Semantic Web” is a key component of Web 3.0. The semantic web improves online technologies by enabling users to create, share, and connect content through search and analysis based on the ability to understand the meaning of words rather than keywords or numbers.

  1. Graphics in 3D

3D graphics are widely used in Web 3.0 websites and services such as online games, e-commerce, and portfolio websites. 

  1. Artificial Intelligence (AI)

The two pillars of web 3.0 are the Semantic Web and Artificial Intelligence. Web 3.0 enables computers to comprehend material in the same way that humans do by combining this capability with natural language processing, resulting in faster and more relevant results. They become more intelligent in order to meet the demands of users.

How web 3.0 works 

After seeing the benefits that Web 3.0 can provide, it will be more interesting to learn how it works. As previously stated, blockchain is the foundation of Web 3.0. All of the benefits are built upon this foundation. Let’s start with a definition of blockchain. A blockchain is a chain of information blocks that form a system that cannot be changed, deleted, or hacked. When a new block of digital information is added to the timeline, it is linked to the previous block. The process continues indefinitely. Blockchain is a digital information record that can be distributed but not edited or deleted. As a result, there is no centralised control system in the blockchain. This feature protects the security and privacy of our data.

Web 3.0’s disadvantages and threats

Web 3.0 undoubtedly offers numerous benefits. However, it does have some drawbacks. The following are some drawbacks of Web 3.0:

  • Hardware and software requirements: Users and business owners will need to upgrade their devices and websites to be Web 3.0 compatible.

  • Data is easily accessible: Even though the third era of the internet gives us control over our data, it can still be viewed by anyone because it is publicly available.

  • Difficult regulation: Because of the massive amount of data, regulation may become difficult.

  • Ownership concerns: Some, such as Jack Dorsey, believe that control of Web 3.0 will remain centralised.

Case Studies for Web 3.0

Existing Web3 applications in enterprises are limited, but public applications are thriving. Decentralized finance (DeFi), NFTs, play-to-earn games, and community-organized decentralized autonomous organizations are examples of these (DAOs). As an example:

  • DeFi protocols such as Aave and MakerDAO offer lending and borrowing services powered by smart contracts, removing intermediaries and allowing for higher yields and returns, albeit at a higher risk.

  • Users can earn money by playing play-to-earn games that use NFTs. Such games have also given rise to nonprofit organizations that use gaming profits to fund scholarships for underprivileged users.

  • Artists, for example, are selling their work using NFT smart contracts, which ensure that they — not intermediaries — are paid based on contract terms that they set themselves whenever people sell a piece of art.

Protocols and technologies that enable Web 3.0

Some Web3-related and evolving value-adding protocols and technologies are as follows:

  • Off-chain computing that respects privacy and trust, combined with on-chain smart contracts
  • Cross-chain interoperability allows assets to move freely between isolated blockchains.
  • Layers of abstraction for middleware that make it easier for developers to implement portable applications.
  • Scalability solutions that alleviate the computational burden on primary base-level (La
  • yer 1) blockchains like Ethereum and Bitcoin
  • Off-chain data storage systems that are distributed, persistent, and secure and are linked to blockchains
  • Other technologies include privacy-preserving protocols such as zero-knowledge proofs, which protect confidential information, and artificial intelligence (AI) models that can infuse intelligence into NFTs.


Web 3.0 is the next step in the evolution of the internet. It’s a more intuitive and intelligent platform that responds to users’ needs with greater accuracy and speed. With web 3.0, you can expect faster searches, better recommendations, and an improved user experience. If you want to stay ahead of the curve in today’s digital age, it’s important to understand how this new technology works and how it can benefit your business. 

Also Read: How Secure Is Web 3.0?

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