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Web 2.0 vs web 3.0 explained and what it means for you

What's the difference between web 2.0 and web 3.0? We break it down (as much as we can).

Illustration by Anita Goldstein.

Profile picture of Aaron Gelbman

11.5.2024

10 min read

Every creative professional keeps their eye on emerging technologies and web design trends, anticipating that eager email from the client: “Do I need this for my business?? What do we do?? Thx.” 


A decade ago we raced to integrate HTML 5 into our web design process and clients’ sites, followed by programmatic advertising for our clients’ comms strategies. Then, a few years ago, the client questions poured in about the metaverse, blockchain and NFTs: “Do I need a store in the metaverse? Wdyt? Ty.”


Let’s slow down a sec. Before we can understand these buzzwords, we need to understand where they came from: web 3.0. But in order to understand what web 3.0 is all about, first we need to understand its predecessors: web 1.0 and web 2.0. Read on and follow the trail through the evolution of the web and a deep-dive into the definition, technologies and benefits of web 3.0.


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The evolution of the web


Much like human history, the history of the internet is defined by eras, and each era is represented by different technologies and formats. Get yourself comfortable, because we’re starting at the beginning.



Web 1.0


Web 1.0 refers to the first stage of web evolution, from 1991 until the early 2000s. Web 1.0 websites were a bunch of static pages solely for content consumption. One easy way to summarize the web of that era is the early version of Craigslist and the page of endless links you couldn’t interact with. From a stylistic point of view, web 1.0 websites had a simple design: page layouts closely resembled text documents, and underlined blue links were the primary interactive element on those pages. (And, of course, since everything old is new again, the web 1.0 aesthetic is one of the driving forces behind the design nostalgia trend.)



A screenshot of the Microsoft homepage in 1998. Image: https://web.archive.org/


Web 2.0


Then, around 2004, web 2.0—the version of the internet we use everyday, like Wix Studio websites—changed our perception of the web. Some of its defining characteristics are:


  • The web as a platform. As improvements in web browsers and frameworks emerged, websites could express more capabilities promised by languages like JavaScript, HTML 5 and CSS. No longer static pages, web 2.0 sites function more like web apps. They support interactive elements that weren’t possible in the era of web 1.0—like submission forms with automated validation and embedded videos—as well as dynamic, responsive page layouts adapted to different screens and resolutions. (Deeper dive: how to make a responsive website.)


  • User-generated content. Web 2.0 changed how we work with content and gave birth to social media. For the first time, site visitors had the option to consume content or create content themselves. Social networks made it possible for user-generated content to be viewed by millions of people around the world. (Deeper dive: what’s happening to TikTok?)



  • More device choices. Advances in hardware design gave way to smartphones, smart watches and other connected screens. Users could access the web from their device and location of choice. 


  • Centralized data ownership. Web 2.0 is known as the era of centralized internet. Data and content are consolidated and stored within a small group of companies colloquially known as Big Tech, like Amazon, Google and Meta. In return for the (often free) services they provide, users give companies largely unlimited access to personal data—and this data helps companies generate billions of dollars annually. 



A screenshot of a Facebook profile page (circa 2014). Screenshot: https://time.com/11740/facebook-10-year-anniversary-interfaces/


For decades, the vast majority of users embraced this “data for access” quid pro quo. But what changed? A rising wave of criticism has pushed back on Big Tech, arguing that the innovations and conveniences we’ve gained have come at a severe cost to individual privacy and security. As a result, the movement for an alternate internet has gained momentum, aiming to build a model where the users are in control: enter web 3.0.



What is web 3.0?


When understanding web 1.0 vs. 2.0 vs 3.0, one key difference is that web 3.0 is not a finished concept but continues to evolve. So what is web 3.0 as we know it today? To put it simply, it’s a set of ideals around digital interactions, ownership and privacy, expressed through various means depending on the latest technologies. 


The ideals or pillars of web 3.0 are:


  • An empowered user. The most defining aspect of web 3.0 is user control—it unites nearly all the points that follow. Users own and control their data, choosing how to access, modify and share it. Users aren’t limited by corporations’ decisions about software, devices and processes. Instead, companies act according to the needs and conveniences of buyers. One recent example of this is the common mobile phone charger requirement issued by the EU, a manufacturing standardization in the user’s best interest.


  • Decentralization. Web 3.0 promotes a decentralized network where data is not stored on a single computer or server. Instead, data is distributed across many computers—or in some cases a community—free of top-down censorship controls and less prone to security breaches, as there’s no single point of failure. (Contrast this to the T&Cs and centralized servers of web 2.0’s Meta and Google.)


  • Openness. Web 3.0 represents the democratization of the internet: give everyone access to everything, regardless of their location or demographic. What we get is equal access to both information and opportunities, provided by open-source software, open data standards and open protocols. (Some of these are already familiar to you like JavaScript, CSV and HTTP, respectively.)


  • Interoperability. When applications or devices from different manufacturers or technologies can communicate and work together, you’ve achieved interoperability. This breaks down barriers that limit efficiency, freedom of choice and collaboration by giving the power to the end user. One simple way to think about this is Bluetooth: from your mobile phone, you can connect to nearly any audio device to stream your music, regardless of the device’s manufacturer.


  • Privacy. Giving users full control over their data and personal information, web 3.0 prioritizes privacy. This includes the ability to opt-out of data collection and tracking, and to encrypt data to protect it from unauthorized access. Thanks to recent advances in legislation, users in many countries already benefit from privacy protections and website cookie controls.



Web 3.0 represents a movement from company-owned internet platforms to decentralized community-owned internet platforms.


But these are only principles. They’re the starting points and inspiration for myriad web 3.0 technologies that have emerged over the past two decades. And as new technologies continue to emerge, web 3.0 continues to develop and advance. Some examples of the latest web 3.0 technologies are:


  • Blockchain. Illustrative of many of web 3.0’s core principles, blockchain is a decentralized, transparent, secure and user-owned means of data storage and transfer. The technology has had a significant impact on the financial industry: for example, cryptocurrencies use blockchain to operate independently of traditional banking systems and controls.


  • Metaverse. A shared virtual space built and owned by users, the metaverse connects all types of people across a diverse set of virtual worlds. This harmony of openness, interoperability and user control gives the metaverse tremendous potential in areas such as gaming, education and business. (Deeper dive: what is the metaverse?


  • AI. It’s likely you already got your hands on web 3.0 capabilities and used AI to some degree—and that you’re enjoying the benefits. AI is empowering users with its depth of information and personalization, and ability to perform nearly any task. For example, Wix Studio’s AI tools can generate images, text and responsive website layouts. Plus, thanks to AI’s openness and interoperability, you’ll find it everywhere, including web design tools with AI and AI-powered agency workflows. 


  • Semantic web. Jumping off from AI, the semantic web is a more human approach to data and user-machine interactions, reflecting web 3.0’s more empowered user. Whereas we previously worked with computers around their specifications, computers now respond to us per our personal preferences. For example, the recipe search query “easy pizza dough” can now be expressed in each user’s own words for even better results—try, “what’s the best pizza dough I can make quickly at home?”


  • Non-fungible tokens (NFTs). NFTs are digital assets that use blockchain to store, prove ownership and credit creators of digital art and collectibles. NFTs can be bought, sold and traded on digital markets free of intermediaries, hosted anywhere—even in the metaverse—and without questions of authenticity, all part of the web 3.0 manifesto. (Deeper dive: the creators of clean, eco-friendly NFTs.)


  • Decentralized finance (DeFi). Breaking free of Big Tech and financial institutions, DeFi platforms allow users to complete financial operations (i.e., send, receive and exchange money) without intermediaries. The system uses blockchain to bring more transparency, security and freedom to financial services with features like a digital or crypto wallet. 


  • Decentralized autonomous organizations (DAOs). DAOs are web 3.0’s take on organizational bureaucracy: virtual companies without centralized leadership run by code. Say what? Each DAO is governed by a smart contract, written in code, which manages the entity and related actions via automations. And bearing in mind the empowered user and decentralization, all DAO members have a voice in the operations and decisions. 

 


Benefits of web 3.0


The biggest advantage of web 3.0 is that we will no longer pay with our data for access to the web and services. With a more equal value exchange, and more bargaining power, we can hope for fairer relationships with service providers. Some other benefits include:


  • Better privacy for users. Web 3.0 provides increased data security: because your digital identity is not 100% connected to your real identity, your data is generally anonymized. In contrast to web 2.0, it's much harder for companies to track you in web 3.0. Since all your content is stored on blockchain, you can consume content (articles and videos) or make purchases without being afraid that companies will trace the real you.


  • It’s not monopolized by Big Tech companies. Web 2.0 services have a central authority (business owners) that decides who can use them (i.e., they can censor any account at any time). Web 3.0 apps are open to anyone since there are no "gatekeepers" that can prevent users from using apps.


  • Better resilience and security. Web 2.0 services are based on network infrastructure that can become a point of failure (i.e., web servers that run a service can be out of order due to power outage). Decentralization, on the other hand, means that a network of thousands of computers always has a Plan B. Even if a part of the network goes down, the remaining part will be able to keep the web 3.0 app alive. As a result, web 3.0 apps have much lower chances of going down.


  • More collaboration and innovation. Web 3.0 breaks down barriers that curb tech innovation by broadening access to resources. Common languages, protocols and systems, coupled with universal interoperability, make it easier for programmers and entrepreneurs to bring their ideas to life and deliver breakthrough apps to end users. 



Limitations of web 3.0


Despite the progress and potential of web 3.0, most people are not yet equipped to experience its programs due to outdated hardware and fast-moving advances that make it difficult for hardware to catch up. Additional limitations are: 


  • Scaling as fast as data grows. Decentralization comes with complications, mainly the management of numerous networks instead of one. Now, try scaling all of them for the vast amount of data each will hold. Plus, blockchain processes take more time which can create delays, limit capabilities and disrupt users, the opposite of scaling. 


  • Difficulty of regulating a decentralized web. In web 3.0, there is no single controlling authority that can force users to follow its rules, and user generated content is owned by the users, not the platforms. The fact that there is no moderator for content can lead to a lack of censorship and the proliferation of harmful content. For the same reason, it will be much harder to prevent cybercrimes.


  • Accessibility needs and solutions are still unclear. As web 3.0 platforms and technologies are still taking shape, limited research and resources have considered how to make them accessible. Until there is standardization across all web 3.0 systems—like on the websites we access today—accessibility will be too complex and expensive to implement everywhere. (Deeper dive: how to check your website’s accessibility.)


  • Much of web 3.0 is theory—things are still cooking. Until web 3.0 is more tangible and widely distributed, users at large will be unable to use and benefit from it. 



Key differences between web 2.0 vs web 3.0


Now that we've covered web 3.0 in depth, here’s a brief summary of the key differences between web 2.0 and web 3.0.



Finance


Web 2.0: Finance is managed by entities we’re familiar with, such as traditional banks, payment providers and stock markets. We pay with universally recognized currency—USD, EUR, etc.—as cash or credit, and hold it in our wallets, bank accounts or portfolios, like stocks. Transactions are processed, reviewed and regulated by intermediaries like banks and government bodies who, in turn, secure our assets.


Web 3.0: Per web 3.0’s decentralization, financial operations are spread across a network of computers. Using DeFi platforms, we conduct transactions and use digital/crypto wallets to store our digital cryptocurrency, with names you might recognize like Bitcoin, Ethereum and Tether. Transactions are direct (peer-to-peer), and secured by and processed on a blockchain network.



Screnshot of the MetaMask digital wallet app for iOS.


Content


Web 2.0: It’s true, everyone is a content creator. But we’re not free to create and distribute content as we like—every platform of choice, like Instagram or YouTube, requires us to adhere to its rules. Similarly, we monetize our content per their rules and the services they provide, such as targeting users based on collected data. And finally, we don’t own our content. By relying on these platforms’ infrastructure to host and store our content, we effectively make them the owners—should the platforms one day go offline for good, our content goes offline too.


Web 3.0: You probably guessed it—everyone is a content creator and content owner via blockchain-based, decentralized content platforms. In theory, these platforms don’t censor or remove our content—*cringe*—and offer intermediary-free monetization features that ensure nothing chips away at content owners’ revenues. (That isn’t so hard as payments are primarily via cryptocurrency.) Content formats can be as simple as social posts or as complex as NFTs. 



Screenshot of the Flixxo video platform, showing rows of series thumbnails available to view.


Data Ownership


Web 2.0: In short, we’re being watched and recorded. The data we actively share—for example, via form submissions—and the data that’s passively collected, like our browsing history, is owned, stored, secured and controlled by entities that provide us with services. Consider Gmail: the feature-rich email service is provided for free in exchange for unlimited access to our activities. On one hand, we benefit from a more personalized experience. On the other hand, the data is used for Google’s product research and ad sales. Beyond that, we don’t know how else the data is used or who can access it (but we hope for the best).


Web 3.0: In short, we bear the responsibility. Just like building a custom bike, and choosing and assembling each part, each of us makes decisions about our data and assembles a customized network accordingly. Firstly, data is only collected with our approval and full knowledge. Then, we choose how it’s stored, like on decentralized networks or in data vaults. In addition, data can be shared—and unshared—as suits each of us. In this set up, there’s no ongoing “big brother” surveillance but there’s more pressure to lean in and know where your data is at all times. 



Screenshot of Storj's decentralized storage servers, as blue dots plotted across a map of the world.


Now, if history is an example of what’s to come, it’s only a matter of time before we update this article to include web 4.0. Yet, regardless of internet eras or ever-changing tools, web designers shouldn’t let their work be dictated by the latest fads. Instead, by focusing on the best interests and goals of your users, you’ll create sites and apps that deliver truly timeless value and joy.


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