Witnessing Emerging Web3 in Indonesia

27 Jan 2023

The Brief History

In 2014, the Web 3.0/Web3 era started, bringing a new period of decentralized networking. Decentralization is a data base that is not controlled by one single organization or manager, but shared by all users. This era began with Web 1.0, made by Berners-Lee in the 1990s-2004. This era was known for websites owned by companies, with almost no interaction between users and individuals; it was known as the read-only web. This was followed by Web 2.0 in 2004, when social media platforms appeared; the web became read-write. Finally, with the release of Ethereum in 2014, the read-write-own era of Web 3.0 began.

The early Internet, Web 1.0, was mostly made of static pages. They showed basic info but were not very interactive. Then, Web 2.0 came. This version was more interactive, with social media and blogs. In 2005, YouTube began, starting the Web 2.0 revolution. People could interact with webpages, talk to each other, and make their own content. Social media was the biggest symbol of this time. The first iPhone in 2007 made it even better. People could use the Internet from anywhere and any time. This made it easier for people to use the Internet and opened up new possibilities.

Web 3.0 or Web3, also known as the "intelligent web," is the latest iteration of the World Wide Web. It is characterized by the use of AI and ML, decentralized networks, and blockchain technology to create more personalized and intuitive experiences for users, as well as a sense of ownership and self-custody. This innovation was made possible by blockchain technology, which serves as the backbone of Web3. It was first initiated in 2008 and began to be implemented in 2009.

The Dawn of Web3

The arrival of Web3 technology could change the Internet forever. Web3 includes decentralized technologies such as blockchain and that means people can now read, write, and own data. This is different from how Web2 works which is centralized. Web3 is open, trustless, and permissionless. But, Web3 technologies bring some challenges too. We need to make sure it is secure, find out what the rules are, and make sure NFTs (non-fungible tokens) don't harm the environment. To make sure Web3 reaches its full potential, we need to create best practices for security, learn what the rules are, and create ethical guidelines for NFTs.

Web3 technology has the power to change the Internet. Web3 includes decentralized technology like blockchain and provides new opportunities that were not available before. With Web3, users can read and write data, and also own it through blockchain and smart contracts. This is different from Web2 which is more centralized. But, there are also challenges with Web3 like needing regulatory clarity and worrying about NFTs and their environmental impact. To make the most of Web3, we need to make sure it is secure, seek regulatory clarity, and create ethical guidelines for using NFTs.
The Global Web3 market is growing quickly and is estimated to be worth USD 81.5 billion by 2030. This growth is not only happening worldwide, but also in Indonesia, which is expected to be valued at USD 315.5 billion by 2030. Web3's utility-scale will add value to the digital economy, including in Indonesia, which is one of the biggest digital economies in Southeast Asia with a value of USD 77 billion in 2022 and is expected to be USD 315.5 billion in 2030. According to the Google e-Conomy SEA Report 2022, investment into Web3 is predicted to go up quickly. Even though the global economy is bad, venture capitalists (VCs) have already given out some money, although not much, but it is estimated to build up the sectors, especially to create privacy and digital infrastructure that moves from Web2 to blockchain as the starting point.

Benefit, Challenge and Use case of Web3

One of the key benefits of web3 is the ability to enable automation through the use of smart contracts.This technology can revolutionize industries such as supply chain management, where the use of smart contracts can help streamline and automate complex processes.

Another challenge that web3 will need to address is the need for regulatory clarity. The decentralized nature of web3 technologies makes it difficult to apply traditional regulations, which can create uncertainty for businesses and consumers. In order to facilitate the widespread adoption of web3, it will be necessary for regulators to provide clear guidance on how these technologies should be treated.

Web3 core technologies and concepts are the foundation of the ownership economy of Web3 stacks. Blockchain was the first of these and it changed the world by enabling innovation. Since then, many different sectors have been using blockchain technology. The second is tokens. They come in two types: Fungible tokens (cryptocurrency) are exchangeable and have the same value. Non-fungible tokens (NFT) represent unique digital assets. For example, cryptocurrency has challenged Central Banks around the world because it could affect a country's currency with Decentralized Finance (DeFi). This could revolutionize the financial industry by getting rid of banks, payment processors, and other middlemen. On the other hand, some Central Banks, like China and Indonesia, are trying to use this chance to create Central Bank Digital Currencies (CBDCs).

Non-Fungible Tokens (NFTs) have become an important tool for creators, musicians, and artists to get money from Intellectual Property and royalties. Polygon, a blockchain platform built on Ethereum, has joined forces with big brands like Starbucks, Mastercard, Meta, Disney, and Nike to help promote blockchain tech.

For instance, Starbucks is using NFTs for their reward program, and Mastercard Artist Accelerator is using them for music royalties. This partnership shows that more companies are now interested in blockchain technology.

According to ConsenSys' report, Metamask is helping more and more people join web3. Indonesia is in 9th place, showing how web3 is growing. Metamask lets users use dApps (decentralized applications) built on the Ethereum blockchain from their web browser. It's easy to use, so even people without tech skills can use Web3 apps, like sending and receiving cryptocurrency, dealing with smart contracts, and managing blockchain accounts. This could make it easier for people to join web3.

What’s next?

Blockchain has many possibilities apart from the innovations already mentioned. Decentralized Autonomous Organizations (DAOs) are decentralized groups where token holders from the community work together for a shared goal. These token holders can participate in voting, provide public services, give security, use reputation systems, manage populations, organize logistics and supply chains, manage medical data, use smart contracts, and link to the Internet of Things (IoT).

Including the gaming industry that has changed a lot recently. This is because of Play-to-Earn (P2E) games, which use blockchain technology. These games use smart contracts, which are like programs written in code. Popular P2E brands include Axie Infinity, The Sandbox, and Decentraland. The P2E model can be used in other areas too. Move-to-Earn (M2E) is used in healthcare and Learn-to-Earn (L2E) is used in education.

Write & Read to Earn with BULB

Learn More

Enjoy this blog? Subscribe to Rohit766


No comments yet.
Most relevant comments are displayed, so some may have been filtered out.