Context:
India is poised to surpass the USA and emerge as the world’s largest Web3 developer community by 2028.
India’s Role in Web3 Development
- India accounted for 17% of all new developers entering the Web3 field, the highest globally, per a Hashed Emergent report.
- India’s growing Web3 presence:
- 4.7 million developers joined GitHub in 2024.
- Year-on-Year (YoY) growth stood at 28%.
- Challenges identified:
- Virtual Digital Assets (VDAs) seen as a potential ‘parallel currency’.
- Lack of a pro-Web3 policy agenda.
- Absence of a dedicated regulatory body for the Web3 sector.
- Recommended steps forward:
- Shift from a restrictive regulatory approach to one that enables innovation.
- Harmonize regulations with global frameworks like G20 and the Financial Action Task Force (FATF).
Web3: Key Features, Properties, and Applications
- Web3 refers to the next generation of internet technologies like blockchain, aiming to decentralize data ownership and reduce reliance on intermediaries.
- Blockchain is a decentralized and distributed ledger system that stores transaction/data records across a network of nodes.
- Previous Versions of the Internet:
- Web 1 (Static Web): Facilitated easy access to information.
- Web 2: Advanced interactive platforms, e.g., Facebook.
- Properties of Blockchain:
- Smart Contracts: Enable auto-execution of digital contracts.
- Distributed: Ledger copies are shared with all trusted participants for transparency.
- Secured: Records are individually encrypted for security.
- Immutable: Validated records are irreversible and unchangeable.
- Trusted: Data is managed by multiple decentralized participants.
- Consensus: Network participants agree on the validity of records.
- Time-stamped: Each transaction is recorded with a timestamp.
- Applications of Web3:
- Decentralized Finance (DeFi): Enables access to financial services without intermediaries.
- Asset Tokenization: Converts assets into digital tokens, offering fractional ownership and liquidity.
- Digital Identity and Ownership: Ensures secure management of digital identities.
- Metaverse: Creates immersive, interconnected virtual experiences.
- Examples include Non-Fungible Tokens (NFTs), DeFi, Real-World Assets (RWAs), and Smart Contracts.
Comparison of Web 1.0, Web 2.0,Web 3.o
| Parameters | Web 1.0 | Web 2.0 | Web 3.0 |
| Functionality | Read-only web | Read-write web | Read-write-execute web |
| Users | Millions | Billions | Trillions |
| Goal | Information sharing | Interaction | Immersion |
| Platform | Common Gateway Interface Web | Community Web | Semantic Web for machines |
Note:
- Semantic Web facilitates linked data, enabling seamless integration and knowledge sharing across webpages, applications, and files.
- Forms an interconnected web of data.
Source: DD News
Previous Year Question
With reference to Web 3.0, consider the following statements:
1. Web 3.0 technology enables people to control their own data.
2. In Web 3.0 world, there can blockchain based social networks.
3. Web 3.0 is operated by users collectively rather than a corporation.
Which of the statements given above are correct?
[UPSC Civil Services Exam – 2022 Prelims]
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (d)