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Understanding Web 3.0: The Next Evolution of the Internet
From Static Pages to Decentralisation—A Journey Through Web 1.0, 2.0, and 3.0
Iain Shirlaw
March 19, 2025
Welcome to Business Fluency - a newsletter designed to enhance your understanding of essential business terms and concepts and provide you with practical strategies to boost your business and career prospects.
In today’s newsletter:
Understanding Web 3.0: The Next Evolution of the Internet
Quote of the day: Raoul Pal
What I’m Reading: What is Web 3?
Word of the day: Decentralisation
Business English: Test Your Knowledge
Whenever you are ready, here is how I can help you
Understanding Web 3.0: The Next Evolution of the Internet
Introduction
Language is organic: it is constantly changing.
For that reason, there is a lot of new language and terminology that even mother tongue speakers will not understand. Take ‘Web 3.0’ for example. While mother tongue speakers might be able to guess that it could be something to do with a third version of the internet, many will not know what it means in reality.
Let’s look at this and other related language that even many native English speakers may not know.
A Journey Through Web 1.0, 2.0 & 3.0
Before we look at Web 3.0, let’s remind ourselves of Web 1.0 and Web 2.0.
Web 1.0 refers to websites from around 1991 to 2004. I was one of the first businesses selling motorsport parts to have a website in the UK. I simply uploaded my parts for sale. While my customers could buy from the site, they could not upload anything to it themselves. It was known as static website.
Amazon started life as a Web 1.0 website.
Web 2.0
Web 2.0, an extension of Web 1.0, introduced the concept of user-uploaded content.
It emerged around 2004 and has been dominated by tech giants like Meta (Facebook, Instagram, WhatsApp), X (formerly Twitter), and Alphabet (Google, YouTube). In this era, users can upload their own content and interact with websites (for instance, in Google Maps, users can plan and modify their own routes).
Amazon transitioned from Web 1.0 to Web 2.0 with their introduction of customer reviews, personalised recommendations, and the introduction of third-party sellers.
Web 3.0
Web 3.0 (sometimes just known as ‘Web3’) is the latest evolution of the internet.
It refers to a decentralised version of the internet built on blockchain technology, aiming to give users more control over their data and online interactions. Unlike Web 2.0, where large companies dominate digital spaces, Web 3.0 envisions a system where ownership and decision-making are distributed, often through DAOs (Decentralised Autonomous Organisations) and smart contracts. These innovations are is important for those working in technology, finance, or any sector impacted by digital transformation.
New technology and innovations are often hard to understand without an example.
Brave Search Engine
Brave is a search engine that relies on Web 3.0 technology and was launched in 2022.
Unlike traditional search engines that track users and sell their data to advertisers, Brave offers a private, ad-free experience with built-in rewards. It operates on the principles of Web 3.0, where decentralisation, privacy, and user control are key. By using Brave, businesses and individuals can browse without invasive tracking while earning Basic Attention Tokens (BAT) for viewing optional ads.
This model represents a shift from companies profiting from users’ data to users benefiting from their online activity by earning cryptocurrency rewards.
Conclusion
This has been a quick introduction to Web 3.0. If you want to examine Web 3.0 in more detail, please see my ‘What I am Reading’ section below. Next week, we will look at more vocabulary connected to Web 3.0.
Quote of the Day: Raoul Pal
“Web 3.0 is rewriting the rules of the digital world—it's about owning your life online, breaking free from the grip of giant corporations, and creating a decentralized future where individuals hold the power."
Word of the Day: Decentralisation
Decentralisation - noun - uncountable - the process of distributing power, authority, and functions away from a central location or authority to a network of participants
Financial markets are experiencing widespread decentralisation as blockchain technology removes traditional intermediaries from transactions.
Word Family:
Noun - decentralisation
Verb - decentralise
Adjective - decentralised
Decentralised - adjective - distributed or dispersed away from a central authority or location
Many modern financial applications operate on decentralised networks where no single entity controls the flow of information or assets.
Organisations are increasingly decentralising their operations to improve resilience against market disruptions and create more responsive business models.
Unlike traditional centralised systems where decisions flow from top to bottom, decentralisation empowers individual participants to contribute directly to governance and value creation, fundamentally changing how digital economies function.
Business English: Test Your Knowledge
What is one key difference between Web 2.0 and Web 3.0? |
Which industry is most likely to be transformed by Web 3.0 technology? |
How does the Brave search engine differ from traditional search engines? |
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Disclaimer:
This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.
Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.