Web3 challenges: Blockchain technology has a killer feature which is decentralization, says Dima Dimenko, the Co-Founder of 111PG.
Web3 or Web 3.0 envisions a digital future where there is no state or corporate censorship or centralized control. However, the roadmap to making this vision a reality requires resolving specific challenges, one of which is security.
The reliability of the new web solutions will be amongst the most vital factors defining its success. Assessing these challenges – security in particular – means getting ahead faster.
Web3: What is it?
It is common to confuse the web and the internet. The internet includes all the network equipment connecting the world plus the internet protocol allowing the communication between devices. The web includes services running on the internet and representing the user-oriented component.
How did we get to Web3 and how does it differ from Web2 and Web1? During the 1990s, Web1 or Web 1.0 included the earliest types of services on the internet. Large companies and select individuals were hosting these services on their servers or home computers. But the services were static. They were only providing the information without the ability for users to interact with or edit it.
Web 2.0 marked the new wave of internet-based services facilitating communication and interaction. On the one hand, users gained the ability to contribute their feedback through editing websites like Wikipedia. On the other hand, social networks enabled the exchange of information, including images and videos. The community element became the determining characteristic of Web 2.0.
Web 3.0 is the next evolutionary step of internet-based services. Notably, it remains mostly a vision due to the cutting-edge development. While decentralization plays a key role in Web 3.0, it is very hard to achieve without giving up some of security or scalability. When users control their own information without a third party acting as an insurer, numerous risks arise. Yet, the benefits of the new version of the web are still alluring. These are complete transparency, thanks to its open-source nature, and new forms of communication using a metaverse.
Web3: Main Challenges
Just like the preceding versions of the web, Web 3.0 faces fundamental challenges that have to be addressed. These issues range from security to legal liability.
Since blockchain technology is trustless by default, Web 3.0 remains vulnerable to certain types of attacks: from hard fork and 51% attack to DDoS, DNS hijack and sniping bots. Regular scams, including targeted ads, may also work in the new environment. Similarly, malicious smart contracts may place malware as a smart contract code. These security risks generally rely on the human factor, but targeted hacker attacks could also lead to massive financial losses.
The Web 3.0 applications, namely the Decentralized Apps or DApps, are inherently complex because of the consensus approach. They often require the knowledge of new programming languages, additional frameworks, and a deep understanding of the logic behind each smart contract. A single bug in code could lead to the loss of millions of dollars in cryptocurrency (REKT). Besides, when relying on a particular blockchain, one can be slow in adapting new features. The third-party tools used to develop solutions may introduce weaknesses, too. Testing, debugging, and audit require time and resources, which may also increase the development period.
The scalability element becomes evident once a large blockchain-based app gains popularity. For instance, the scalability concerns became apparent with the game involving growing kittens on the blockchain. A rapid increase in the number of users led to a sharp increase in gas (transaction fees), making the game expensive to play. The solution could be an introduction of layer 2 blockchain offloading the transaction element. However, a quick deployment of these solutions jeopardizes the decentralization component.
Reliance on crypto
Crypto assets – cryptocurrencies and tokens – are critical to Web 3.0. Since they represent a form of payment or storage of value on the blockchain, their failure could entail the failure of the entire ecosystem. The inherent fragility of the crypto asset class introduces challenges to Web 3.0 in general. Naturally, the largest projects survived the test of time demonstrating their reliability, despite large fluctuations.
Web3: The future
The ability to address the above-mentioned challenges will define the future of Web3. Blockchain technology is gradually finding its use in business. Numerous blockchain alliances with enterprise members are a living proof of that. In fact, the transition from Web2 to Web3 must go in parallel with installing security measures.
Blockchain services providers, such as 111PG, focus on security specifically. The company addresses the problem of sniping bots during the project listings when stakeholders are in the most vulnerable position. But they shouldn’t be.
About the author
Dima Dimenko is the Co-Founder 111PG. Dima is an expert in cybersecurity, crypto and blockchain technology. He became interested in cryptocurrencies back in 2011, when not many people knew about the digital economy. He started to work actively in this sphere in 2017. Dima is a co-founder of the 111PG project, which protects tokens during placement on exchanges. The team has already successfully defended more than 30 different projects worth a total of $5 million.
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The information provided in independent research represents the author’s view and does not constitute investment, trading, or financial advice. BeInCrypto doesn’t recommend buying, selling, trading, holding, or investing in any cryptocurrencies