/ Web3 / Intro.md
Intro.md
  1  # Web3: Background and Introduction
  2  
  3  ## Purpose of the internet and arpanet
  4  
  5  The purpose of the Internet, as initially conceived, was to create a network
  6  of interconnected computers that could communicate with each other
  7  seamlessly, regardless of their geographical location or differences in
  8  hardware and software. This vision was driven by the need for secure and
  9  efficient communication between researchers and scientists at different
 10  institutions, particularly during the Cold War era.[^1][^2][^3]
 11  
 12  ---
 13  
 14  ## Web1: The Read-Only Web (1990-2004)
 15  
 16  In the early 1990s, **Tim Berners-Lee** developed the protocols that would
 17  become the World Wide Web at CERN in Geneva. His vision was to create open,
 18  decentralized protocols that allowed information sharing from anywhere on Earth
 19  [^4]. This first iteration, now known as **Web1**, was characterized by static
 20  websites owned by companies, with minimal interactivity between users.
 21  Individuals seldom produced content, leading to it being known as the
 22  **read-only web** [^4][^5][^6].
 23  
 24  Web1 can be likened to a large, curated "walled garden" where users could
 25  browse and consume content but had limited ability to interact or contribute.
 26  It was similar to reading articles in a magazine, where the content was
 27  presented without opportunities for feedback or engagement [^7].
 28  
 29  ---
 30  
 31  ## Web2: The Read-Write Web (2004-Present)
 32  
 33  The emergence of social media platforms marked the transition to **Web2**.
 34  Starting around 2004, this phase allowed users not only to consume content but
 35  also to create and share it. The web evolved from read-only to **read-write**,
 36  enabling user-generated content and user-to-user interactions [^4][^5][^6][^8].
 37  
 38  Web2 introduced dynamic websites and applications that responded to user input,
 39  leading to the rise of blogs, forums, and social media platforms like Facebook,
 40  Twitter, and Instagram [^6][^7]. This interactivity created a more personalized
 41  browsing experience. However, it also led to concerns over centralization, data
 42  privacy, and the exploitation of user data by tech giants for advertising
 43  revenue [^8][^9].
 44  
 45  ### Issues on Web2
 46  
 47  Companies like Facebook and Google offered free services in exchange for user
 48  data, which they packaged for advertisers to create targeted marketing
 49  campaigns. This practice raised issues of data privacy and ownership, as users
 50  did not have control over their content or benefit from its monetization
 51  [^4][^8][^9]. Additionally, the algorithms used by these platforms often promoted
 52  inflammatory content, leading to concerns about mental health, political
 53  polarization, and the creation of new "walled gardens" controlled by a few
 54  large corporations [^8][^9].
 55  
 56  ---
 57  
 58  ## Web3: The Read-Write-Own Web
 59  
 60  **Web3** represents the next evolution of the internet, focusing on
 61  decentralization and shifting power from big tech companies to individual users
 62  [^5][^6][^8][^10]. Coined by Ethereum co-founder **Gavin Wood** in 2014, Web3
 63  envisions an internet where users have direct ownership over their digital
 64  identity and assets, without the need for intermediaries or third parties
 65  [^4][^6][^8][^10].
 66  
 67  Key principles of Web3 include:
 68  
 69  - **Decentralization**: Ownership and control are distributed among users and
 70    builders, rather than centralized entities [^4][^5][^6][^8].
 71  - **Permissionless Access**: Everyone has equal access to participate in Web3
 72    without exclusion [^4][^5].
 73  - **Native Payments**: Web3 utilizes cryptocurrencies for online spending and
 74    transactions, eliminating the need for traditional banking infrastructure
 75    [^4][^8][^10].
 76  - **Trustlessness**: Operations are conducted using incentives and economic
 77    mechanisms, not relying on trusted third parties [^4][^5].
 78  
 79  In Web3, users can participate in the governance and operation of decentralized
 80  networks through tokens or cryptocurrencies, effectively becoming participants
 81  and shareholders rather than just customers or products [^6][^8].
 82  **Decentralized applications (dApps)** are governed by cooperative structures
 83  where decisions are made openly by token holders, enhancing transparency and
 84  community involvement [^8][^9]. This model aims to reduce the reliance on big
 85  tech companies and give users more control over their data and online
 86  interactions.
 87  
 88  **Blockchain technology** underpins Web3, enabling features like **Non-Fungible
 89  Tokens (NFTs)** to establish ownership and trade unique digital assets,
 90  aligning with Web3's focus on user control and decentralization [^5][^8].
 91  Cryptocurrencies serve as the native payment system, enabling decentralized
 92  peer-to-peer transactions [^5][^8].
 93  
 94  ---
 95  
 96  ### Challenges and Limitations
 97  
 98  While Web3 holds promise, it faces challenges such as:
 99  
100  - **Accessibility**: Scalability issues and high transaction fees can hinder
101    widespread adoption. Solutions like Layer 2 protocols aim to address these
102    concerns [^4].
103  - **User Experience**: Balancing usability and security remains a challenge,
104    highlighting the need for ongoing education and user-friendly designs [^4].
105  - **Centralized Infrastructure**: Despite decentralization goals, some aspects
106    of Web3 still rely on centralized services, which can be points of failure or
107    control [^4].
108  - **Unequal Ownership**: There are concerns about unequal distribution of
109    tokens and resources, leading to potential centralization of power among a
110    few entities [^5].
111  - **Technical Barriers**: Creating and maintaining blockchain networks often
112    require specialized engineering expertise, posing high barriers to entry
113    [^5].
114  
115  ---
116  
117  ## Dapps Structure
118  
119  ![](/img/dapp-general.svg)
120  
121  Img1. Shows relations of some technologies for building web3/dapps
122  
123  ```plantuml
124  @startuml
125  skinparam arrowStyle classical
126  
127  rectangle "DAO | DeFi | DeSci" as DefiDao {
128  }
129  
130  rectangle "Token\n(ERC20)" as Token {
131  }
132  
133  rectangle "NFTs\n(ERC721)" as NFT {
134  }
135  
136  rectangle "DAPPs" as Dapps {
137  }
138  
139  rectangle "OrbitDB" as OrbitDB {
140  }
141  
142  rectangle "Smart Contracts" as SmartContracts {
143  }
144  
145  rectangle "DWEB/Static" as DWeb {
146  }
147  
148  rectangle "DePINs"{
149  rectangle "Blockchain\n(Process Decentralized Data)" as Blockchain {
150  }
151  
152  rectangle "IPFS\n(Stores Decentralized Data)" as IPFS {
153  }
154  
155  DefiDao --> NFT
156  DefiDao --> Dapps
157  Token --> NFT
158  NFT --> SmartContracts
159  SmartContracts --> Blockchain
160  Dapps --> SmartContracts
161  Dapps --> DWeb
162  OrbitDB --> DWeb
163  DWeb --> IPFS
164  
165  @enduml
166  ```
167  Listing 1. PlantUML Code to generate Img 1.
168  
169  ## References
170  
171  [^1]: DARPA’s Official Website - [Arpanet](https://www.darpa.mil/about/innovation-timeline)
172  
173  [^2]: Internet Society (ISOC) - [ISOC](https://www.internetsociety.org/history/)
174  
175  [^3]: Internet Archive - [DARPA INTERNET](https://web.archive.org/web/20250000000000*/DARPA%20INTERNET)
176  
177  [^4]: Ethereum.org - [Web3](https://ethereum.org/en/web3/)
178  
179  [^5]: Chainlink - [Web3](https://chain.link/education/web3)
180  
181  [^6]: MetaMask Learn - [What is Web3](https://learn.metamask.io/lessons/what-is-web3)
182  
183  [^7]: CoinDesk - [What is Web3 and Why is Everyone Talking About It](https://www.coindesk.com/learn/what-is-web-3-and-why-is-everyone-talking-about-it)
184  
185  [^8]: Forbes - [What Is Web3](https://www.forbes.com/sites/digital-assets/article/what-is-web3/)
186  
187  [^9]: ConsenSys Blog - [What is Web3](https://consensys.io/blog/what-is-web3-here-are-some-ways-to-explain-it-to-a-friend)
188  
189  [^10]: Wikipedia - [Web3](https://en.wikipedia.org/wiki/Web3)