Written in August 2024 and kept here as published. The ground has moved since — read it as a snapshot of the thinking at the time, not as current advice.
For starters, we should make a distinction for those of you with a technical background, Web3, should not be confused with the near-identical term “Web 3.0”, a term coined by Tim Berners-Lee. That refers to the “semantic web” or rather a version of the internet where data is more easily interpreted or read by machines.
The term web3 has evolved over the years and now includes a number of different principles.
The Technical
Web3, shaped by thinkers like Chris Dixon* and Gavin Wood* focuses on:
Decentralization: Power and control spread across an independent (geography-agnostic) network, not concentrated in a few big entities.
Ownership: Users directly own and control digital assets and data through tokenization and DAOs (Decentralized Autonomous Organizations).
Automation: Smart contracts enable trustless, self-executing transactions without intermediaries.
Interoperability: Smooth movement of assets and identities across platforms.
Immersive Experiences: 3D internet environments and experiences that will transform our concept of the internet and boost user engagement.
*(Please note that we are not saying their views on the space are the correct ones, but they are seen as key individuals who have helped define this term.)
A little confused? Don’t know what all that means? It’s okay–most people don’t, and you don’t need to right now.
The Practical
Web3 promises to transform our internet interactions by offering greater control, efficiency, and engagement, leading to a more open, connected, and user-centric online world.
You might not yet entirely understand what each of those enhancements signifies, but they sound good, right? (Spoiler alert: they are.)
But if you don’t understand these notions, and if you feel like the internet is working pretty well for you at the moment and doesn’t need a makeover, you may be wondering:
Why Should You Care About Web3?
Like current devices that use Wi-Fi seamlessly, web3 technology aims to operate transparently in the background. So, if everything works magically without your active involvement, why bother understanding it?
If you agree, then let's start there: knowing more about the system around you - and have no doubt, web3 WILL be all around you - then understanding it better will enhance your well-being in that environment.
A lot? A little? To some degree, that depends on you. Let's keep talking.
Consider this: driving an electric car is not drastically different from driving a gas-powered one, yet understanding the underlying technology enhances both your experience and safety.
Understanding and Engaging with New Technology: A Necessity in the Digital Age
In an era dominated by rapid technological advancements, staying abreast of new technology isn't just beneficial—it's essential. Innovations emerge daily that promise to enhance connectivity, streamline our lives, and revolutionize industries. Imagine it was YOUR industry getting revolutionized. That's either an exciting opportunity or a dangerous liability. How will you know which if you're not keeping up with the conversation? Yet, these advancements come with significant responsibilities, including addressing data privacy concerns and guarding against digital scams. Sooner or later, you'll be actively involved in web3 systems, or some aspect of your or your family's digital life will be. It’s important to understand your exposure and how to protect yourself.
The Paradox of Digital Inaction: Learning from the Past
The phrase "they have learned nothing, and they forget nothing" captures a troubling paradox in our digital society. Despite enduring the fallout from data breaches and financial scams, there remains a conspicuous lack of proactive measures to prevent similar future events. This inertia isn't just about failing to learn from past mistakes; it's about the ongoing risk posed to every internet user. For instance, Facebook data was alleged to have influenced elections in 2016. (Read more about the impact of Facebook data on elections here.) But the real question is, what has been done subsequently to protect that data? (According to this article, not much.) So perhaps this can serve as a reminder: you need to be the one to safeguard yourself, not leave it in the hands of an application you trust or a website you think you can trust.
Moreover, the prevalence of online scams continues to be a significant issue–a somewhat surprising phenomenon, as we have been taught to be wary of scams since the early days of the Internet. Unfortunately, that wariness has had little effect. A report by the FTC highlights that in 2023, online scams robbed US consumers of over $10 billion. Enormous numbers like that can be difficult to conceptualize. Maybe this will help: the FTC received 2.6 million fraud reports in 2023. Doing some back-of-an-envelope math tells us that, on average, each person scammed lost $3,850. You can more likely imagine what losing that amount of money would feel like: suddenly losing the equivalent of two months’ rent, or a mortgage payment, or purchasing a used car, or taking a family vacation. These figures underscore the necessity for more stringent security practices and smarter consumer behavior online.
The advancement of artificial intelligence not only brings new tools and efficiencies but also introduces significant risks. This type of threat, the threat being the actual capabilities of AI if we start using them for malicious purposes instead of tools to get things done faster, might seem shocking and almost inventive in its maliciousness, but hasn't our collective consciousness been worried about AI since Neo crawled out of The Matrix? What have we done to protect ourselves from AI? Could we do more? Do we need to?
One such risk is the creation of fake nudes. High schools across the US have witnessed a disturbing uptrend in AI-generated fake nudes of students. Digital and cyberbullying is not new, but the threshold and danger in this space are more severe than it’s ever been before. This terrifying invasion of privacy underscores the urgent need for robust digital safety measures.
It's also an example of people being harmed by an innovative technology they weren't actively engaged with. Often, these images are created from photos downloaded from victims' social media profiles - victims without any interaction with AI platforms. If someone playing with fireworks burns their hand, they know that harm is a possibility. But when it's possible to be harmed by a technology you aren't even opting into contact with, an ounce of prevention (in the form of education) may be worth a pound of cure.
As the metaverse continues to evolve and expand, it introduces complex challenges, particularly around personal safety. Instances of sexual assault in virtual environments have highlighted a critical gap in current regulations. Participants in the metaverse can experience profound psychological impacts from virtual assaults due to the immersive nature of these platforms. We hoped for flying cars. Instead, we got new mediums for people to be awful to each other.
Emerging Threats and the Trust Challenge
The rapid proliferation of new technologies often outpaces our ability to thoroughly vet and secure them. This gap in oversight provides fertile ground for untrustworthy actors to exploit vulnerabilities. If we return to the metaverse, the absence of clear rules and protocols exacerbates the issue and undermines trust in emerging digital spaces. Establishing comprehensive guidelines and ethical standards for behavior in the metaverse is imperative to safeguard all participants and ensure that these new realms are safe and inclusive. Doing this quickly also matters: while the first account of online sexual harassment or assault occurred in 1993, state and federal laws did not come on the books until the late 90’s. It’s clear that there is a lag between the emergence of risk on a platform and the development of protections on that platform. By being educated, we can help reduce that lag and our personal danger.
The rise of cryptocurrencies and digital wallets has seen an unprecedented increase in scams due to the anonymous nature of transactions and the lack of a central governing authority. Chainanalysis does a great breakdown of this dynamic, noting that new platforms and technologies carry undiscovered vulnerabilities, and are thus subject to innovative attacks. (The platforms will, in time, develop remedies for these risks, but in the meantime, there may be dangers we are exposed to and don’t know how to protect ourselves from.)
Additionally, similar to the AI-generated nudes addressed above, the creation of deep fakes—highly realistic but fake audio or video content—has become a significant concern as they can be used to spread misinformation, commit fraud, or violate personal privacy, provoking severe personal and societal consequences. The current painful reality is there are no clear laws outlined about the consequences for creating and disseminating these deep fakes, it is unclear how perpetrators would be punished (if at all) and how victims would get closure.
Embracing the Inevitable: The Benefits of Informed Engagement
Much of today's technology (like the algorithms that curate your social media feeds or the smart devices that manage your home environment) operates seamlessly in the background. While it's easy to take this silent operation for granted, staying informed about these technologies means you can better benefit from what they offer. How can you leverage the advantages of smart contracts, the blockchain, tokenization, NFTs, etc if you are not even aware of them? Understanding these tools ensures they work for you, not against you.
The Power of Knowledge and Advocacy
Having a voice in the development and implementation of technology means caring about its direction. Public opinion and consumer behavior can greatly influence how technologies are shaped and regulated. What does that mean? That what we do now will set the course for the future of these technologies: we aren't passengers, we're pilots.
By staying informed, you can advocate for technologies that honor privacy, promote equality, and provide value without sacrificing ethical standards. Staying at least somewhat up to date with web3 is crucial for keeping up with a changing world. Embracing web3 is crucial for getting ahead in the digital age. It offers unprecedented economic opportunities, greater control over personal data, and a more transparent and trustworthy internet.
Some aspects of web3 will eventually blend into the background - others will pop out right in front of your face (in the case of 3D internet, this is literally true) - but being aware and prepared for the opportunities it brings will help you make the most of them when the time comes.