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How Important Will Crypto Be For Web 3.0?

How Important Will Crypto Be For Web 3.0?

Last updated 15th Dec 2022

Web 3.0 is the next stage of the internet evolution that will make the online world we use more intelligent and capable than ever before. Web 3.0 will use AI technology to proactively respond to queries and will also use decentralisation to offer novel functions and experiences to users. Web 3.0’s decentralisation means that it will operate on similar networks that are currently used by blockchain and cryptocurrency technology. So, can we expect to see a relationship emerge between Web 3.0 and cryptocurrency? 

Many question just how much of the internet can be decentralised? First came decentralised finance (DeFi) and now the next big move for crypto could just be web 3.0. In order to offer the many functions that this new age of the internet proposes, decentralisation will most likely be one of the core properties of web 3.0. With this in mind, it is also likely that cryptocurrencies and blockchain will also be a pivotal part of the new web. 

Industry experts, speaking to Cryptonews.com, say that crypto will be an essential part of web 3.0 and that crypto assets will create a new system of incentivisation for the decentralised internet. 

While an exact date is not yet set, it is widely thought that the emergence of web 3.0 is not too far away. Over the last year, tokens associated with decentralised internet applications have seen an average 244% rise, beating Bitcoins 37% appreciation. 

Data published by Arca Chief Investment Officer, Jeff Dorman, shows the cryptocurrency sub-sector of web 3.0 tokens gained 22% in the last week of July, outshining Bitcoin and every other sub-sector. 

Many of the most prominent web 3.0 coins, including Livepeer (LPT), Helium (HNT) and Bittorrent (BTT) are up by at least 800% this year, despite a slump in many cryptocurrency markets.  

How important will crypto be for web 3.0?

When it was first conceptualised, web 3.0 was defined by the ‘semantic web’. It was thought that web 3.0 would lead the way for computers and machines to be able to analyse all of the data on the web. However, as things have evolved, web 3.0 is now most known for its association with decentralisation. Because of this, crypto will play a prominent role. 

According to a spokesperson for the DFINITY Foundation, “Crypto and blockchain are a necessity for Web 3.0; they enable the three key characteristics of Web3 — decentralization, permisonlessness and trustlessnes.”

This statement is backed by Adam Soffer, product lead at the decentralised video-distribution platform Livepeer (LPT) who says that cryptocurrencies and blockchain are at the heart of web 3.0.

Not all industry experts agree the cryptocurrency will play such a central role in web 3.0 however, they do all agree that it will be important to its functioning. The main question is to what extent the internet can be truly decentralised. 

If the majority of the internet is still owned by a handful of companies, those same companies will still be able to create barriers, sensors and control much of what goes on across the web. While a completely decentralised web 3.0 is unlikely, we can expect to see the new age of the internet have a closer relationship with crypto and blockchain. 

Ruby Layram

Ruby Layram

Ruby is a writer for Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. Ruby has been a professional personal finance and investment writer for 2 years and is currently building her own portfolio of altcoins. She is currently studying Psychology at the University of Winchester, specialising in Statistical analysis.