Web 3.0 is the next stage of Internet evolution. It will make the online world smarter and more powerful than ever before. It will use AI technology to proactively respond to requests. It will also rely on decentralization to provide new features and experiences. In other words, Web 3.0 will be based on networks similar to blockchain technology. So can we expect a relationship between Web 3.0 and cryptocurrencies?
Many wonder how much of the internet can be decentralized. First came decentralized finance (DeFi) and now the next big step for cryptocurrencies could be Web 3.0. In order to offer the many features that this new age of the internet envisions, decentralization will most likely be one of the core features. This is also the reason for the central role of cryptocurrencies and blockchain in the new web.
Industry experts, speaking to Cryptonews.com, say that cryptocurrencies will be an essential part of Web 3.0 and that crypto assets will create a new incentive system for the decentralized Internet.
Of course, an exact date for this has not yet been set. But it’s widely believed that it won’t be too much longer. Over the past year, tokens from decentralized internet applications have seen an average increase of 244%, outpacing the increase in value of Bitcoins (37%).
Data released by Jeff Dorman, chief investment officer at Arca, shows that the crypto sector of Web 3.0 tokens rose 22% in the last week of July, eclipsing Bitcoin and every other subsector.
How important will cryptocurrencies be to Web 3.0?
As the Web 3.0 was first conceived, it was defined as a “semantic web”. It was assumed that in the future computers and machines will be able to analyze all the data on the Internet. However, over time, the concept has evolved and it is now all about decentralization. For this reason, cryptocurrencies will play an important role.
A DFINITY Foundation spokesperson said:
Crypto and Blockchain are a necessity for Web 3.0, enabling the three key characteristics of Web 3 – decentralization, permissionlessness and trustlessness.
This statement is supported by Product Lead at decentralized video distribution platform Livepeer (LPT) Adam Soffer. He says that cryptocurrencies and blockchain are at the heart of Web 3.0.
Not all industry experts agree that cryptocurrencies will play such a central role in the web of the future, but they do agree that they will be important to its functioning. The main question is to what extent the internet can be truly decentralized.
If the majority of the Internet is still owned by a handful of companies, those companies will still be able to create barriers and sensors and control much of what happens on the Internet. While a fully decentralized Web 3.0 is unlikely, we can expect the new age of the Internet to have a closer relationship with crypto and blockchain.