September 28, 2022
3 min read

Web3: Trends, challenges & its future

Web3 advocates see the internet as a place where we can make use of services without giving up personal data to the Facebooks and Googles of the world. In this hypothetical ‘new internet’, blockchain and artificial intelligence power the ecosystem, with all data being published on the blockchain's open ledger.

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Vicky Petrova

You might not have expected virtual worlds to one day become a reality three decades ago, much less to have Fortune 500 companies now programming NFT art

Web3 or web 3.0 is a trending topic but what connections are there between the future of web3 and that of the internet? Is web 3.0 crucial to the internet's future? Some clues out there might point to the answers to these and other questions.

You should first be aware that none of the data you share with Facebook, Instagram, or TikTok is your own. Many of us currently utilize a very centralized internet that is under the authority of powerful corporations.

Web3 (like other revolutions) has been touted as a remedy for current problems. 

It is an intriguing idea for the next generation of the internet and demonstrates how users can manage their digital assets and other online information. 

How might the world be altered by web3? 

A straightforward answer is that users become owners of all their information and content. Why is that needed? Well, Facebook (Meta) is the sole owner of all Facebook assets and has total authority over user-generated content. Depending on your needs, the company has the authority to ban or block you. The online game Fortnite is another illustration of this idea of ‘lack of ownership’ online. 

In-game characters and items cannot be controlled in any way by the player and thus, it is abundantly evident that consumers cannot manage or profit from the content they produce using web 2.0.

You might be surprised you don’t even own a single video you upload to YouTube (no matter how hard you worked on it). 

Understanding Web3

Web3 advocates see the internet as a place where we can make use of services without giving up personal data to the Facebooks and Googles of the world. In this hypothetical ‘new internet’, blockchain and artificial intelligence power the ecosystem, with all data being published on the blockchain's open ledger.

Everything would need to be validated by the network before being approved and online, much like how cryptocurrencies function. Theoretically, people may swap money or information directly using online apps. A Web3 internet would also be permissionless, allowing anyone to access it without the need for login credentials or to provide authorization.

Top 4 Web3 trends

1. The Semantic Web: Web3 or the semantic web could bring about the transition from "readable" machine networks to "understandable" intelligent networks. More crucially, Web3 can guarantee those platform fiduciaries that currently hold and monetize public data are no longer relevant to do so and that, in decentralized society, data control will reside with its true owner—you and I.

2. It is now an XR, VR, and AR hybrid: Combining virtual reality (VR) and augmented reality (AR) is a phenomenon known as extended reality (XR). VR tech enables the creation of an immersive, real-time interactive virtual reproduction of the physical world by simulating it on computers. However, AR tech produces precise virtual representations of "things" and "places" that do not exist in the real world and places them as a layer, allowing users to virtually experience a more enriched and integrated real-virtual environment. AR is so cool - you can go from the virtual to the real object and vice versa just by looking at the virtual layer or at your surroundings.

3. Blockchain As A Service (BaaS): Businesses are better prepared to use blockchain-enabled services and create new revenue streams now that blockchain technology may have surpassed the hype. Global businesses, particularly those in the financial services sector, are investing more money annually in blockchain tech as a result of the technology's advancement and expansion of its use beyond cryptocurrencies. The adoption of 5G could increase the communication capacity of all networked devices, opening the door for an increasing number of blockchain-based applications.

4. Edge Computing: 5G makes it possible for data to be accessible on any device, anywhere, and is not just limited to computers and mobile devices. This is made possible by the Internet of Things (IoT), and it is a prerequisite for the success of the Metaverse and Web3.

Top 5 Web3 challenges

1. Ice phishing was only recently coined as a term "ice phishing". A "deceptive operation" is when a user is duped into signing a transaction that lets a cyberattacker use tokens.

DeFi smart contracts frequently use smart contract transactions to assign token usage rights. You don't need to use your private keys to participate in ice phishing. 

Alternatively, the attacker may deceive the victim into approving a transaction that would give him or her authority over the tokens.

2. Cryptojacking - Criminals who engage in cryptojacking take advantage of the victim's processing power to earn bitcoin for themselves.

A cybercriminal can access a victim's computer or other Internet-connected devices when a victim unintentionally downloads malicious script-containing software. This can happen when he or she clicks on a link in an email or visits a malicious website. The criminal manufactures cryptocurrency using third-party applications known as "coin miners."

Cryptocurrencies can only be produced using computer programs and computing power because they are digital forms of money. Monero is mined mostly at home using a personal computer, unlike other cryptocurrencies.

3. Data Manipulation In Dapps - Web 3.0 applications fall under the category of decentralized apps (Dapps). The data will be stored using peer-to-peer networks and a distributed codebase. 

Many Dapps and smart contracts include AI as a standard component. An enormous quantity of high-quality data is required to train an AI on a particular subject. The relevance of data in AI is further highlighted when a third-party uploads faulty, poor-quality data.

4. NFT Exploits - The acceptance of bitcoin for privacy and international payments is only one of many different ways you can utilize Web3 to motivate your target audience to act. 

It should be emphasized that NFTs are an important part of Web3. The smart contracts incorporated into NFTs can be broken, manipulated, or misused. Since NFTs are still in their infancy, it's important to understand the dangers involved and take the necessary safeguards to maximize returns, or simply stay protected.

Sending the victim a link to a compromised NFT might be the initial step in an attack. Malicious NFT hackers might send the victim a series of requests using JavaScript code. The victim could then give the hacker complete access to his or her NFTs or bitcoin by mistake.

While still in its early days, the NFT craze might be just the right choice your brand makes right now. Relite aims to empower businesses via NFTs, a $300B market, by opening the funnel for NFT mainstream adoption. We help retail brands like yours implement a custom-tailored NFT strategy that will keep you on the edge of the competition.  

Want to sell NFTs on your website? The Relite creative team is here to assist! If you are not sure where to start but you want to innovate, contact us today to discuss the best NFT strategy, specially tailored for you.

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