2023 is the Year for Web 3.0. Here’s Why?

Web 3.0 is the newest iteration of the internet, and it is a convergence of artificial intelligence (AI), machine learning (ML), and distributed ledger technology (DLT).

This version of the World Wide Web will allow individual users to own and control their own data and content. In the current version of the internet, giant centralized corporations own user data and also take large chunks of earnings deriving from user-generated content.

It will probably take a while before the use of Web 3.0 becomes more widespread. But starting in 2023, expect to see a more marked utilization of the “semantic web,”, especially in social gaming networks and blockchain-enabled business models. In this short article, we will take a look at some of the areas we expect to be highly influenced by Web 3.0 in 2023.

Defi Protocols

Decentralized finance is a system that makes financial products available to consumers on decentralized peer-to-peer networks. This system also removes the control and influence that traditional transactional intermediaries, such as banks, had on money and other financial products and services. 

The development of Web 3.0 will enable Defi to grow beyond cryptocurrencies and the tokenization of traditional financial instruments. Defi is envisioned to become an all-encompassing decentralized economy that will facilitate the ownership, exchange, and trading of all types of assets across an interoperable network of blockchains.

Between 2018 and 2022, the Defi space recorded tremendous growth. At the time of writing, Defi protocols collectively had a total locked value (TVL) just shy of $200 billion. Analysts believe that 2023 could see the industry surge past its all-time high TVL of $251 billion. This can be achieved if the industry leverages Web 3.0 to create a set of disruptive, hyper-personalized financial systems that will replace the fragmented, inefficient, and needlessly expensive legacy systems currently in place.

Play-to-Earn Gaming

In 2021, the conventional gaming industry raked in an eye-watering $160 billion in revenues. However, the millions of players received no economic benefit whatsoever for the time and resources they dedicated to the games. In a nutshell, Web 2.0 gaming is a resource sink.

But in the last few years, a new gaming model has been steadily gaining popularity. While traditional gaming was only good for enjoyment and as a distraction from the mundane routines of life, this new model gave users the opportunity to earn real money while having fun.

Play-to-earn (P2E) games use elements of Web 3.0 to allow gamers to receive crypto tokens for in-game achievements. These tokens can then be traded on online marketplaces for other cryptocurrencies or for fiat. 

Each P2E game possesses its own unique token, and this has greatly contributed to the growth and development of the Defi space. Additionally, in-game assets such as playable characters, weapons, pets, or real estate can be turned into NFT tokens, which can also be traded on online marketplaces just like the game’s native token.

P2E games now account for nearly 49% of blockchain usage, and in 2021 alone, gaming NFTs recorded over $4.5 billion in trading volume.

Industry analysts believe that figure is just the tip of the iceberg. A variety of P2E games are expected to hit the market in the next 18 months, and each of them is expected to have a Web 3.0 strategy in place to balance in-game experiences and economic incentives. As such, 2023 should mark the advent of Web 3.0’s evolution of the gaming experience.

Artificial Intelligence and Machine Learning

Two of the most significant aspects of Web 3.0 are artificial intelligence and machine learning algorithms. In recent times, ML and AI have become powerful enough to improve simple tasks in our daily lives, such as controlling self-driving vehicles and powering voice-controlled virtual assistants.

But developments in Web 3.0 could see AI and ML used in more complex applications, such as drug design and climate modeling.

2023 will also probably see more organizations utilizing aspects of Web 3.0 to enhance their digital products without deploying their own AI or ML engines. In the same vein, 2023 should also see businesses using Web 3.0 to link their customer data to the internet of things (IoT) devices, connected to blockchain services, to deliver an immersive, user-driven experience to clients.

Blockchain-as-a-Service

Blockchain-as-a-service (BaaS) is a third-party cloud-based infrastructure for organizations looking to leverage blockchain applications in their operations. 

BaaS is modeled after the software-as-a-service (SaaS) concept. It works like a web host that runs back-end operations for blockchain-based platforms, allowing them to build and run decentralized apps and digital services.

With the increased use of Web 3.0, blockchain technology is poised to go beyond cryptocurrencies and NFTs, to become a conduit for all kinds of secure transactions. As a result, there will be a marked increase in demand for blockchain-hosting services from businesses wishing to leverage blockchain technology but lacking the capacity to handle the complex and expensive undertaking of building their own from scratch.

Web 2.0 has been less than capable of adequately handling the technical complexities and the operational overheads involved in not only creating and operating blockchains but also maintaining their infrastructure. But with the maturation of Web 3.0, companies like IBM, Oracle, Kaleido, Alchemy, and Amazon are expected to up the ante in the BaaS space in 2023 and beyond.

Conclusion

Web 3.0 is still in its infancy, but the confluence of the technological components needed to turn it into a vibrant reality is well underway. The last few years have been marked by key cultural or technological advancements. 

In 2018, cryptocurrencies entered the mainstream consciousness. In 2019 we saw initial coin offerings (ICO) become part of the public discourse. 2020 was rightly dubbed the year of Defi, while 2021 saw NFTs rise in popularity. Now “metaverse” seems to be 2022’s biggest buzzword.

If the trend stays the same, then 2023 should be the year of Web 3.0. And the popular application of the above-mentioned technologies should ensure that the concept grows exponentially in the public psyche.