Web third time lucky? – The Economic Times

The core distinctive feature of Web 3.0 is the decentralisation of business models. To that extent, it marks a third phase of the internet (hence ‘Web 3.0’) and a reversal of the current status quo for users. While the first incarnation of the web in the 1980s consisted of open protocols on which anyone could build – and from which user data was barely captured – it soon morphed into the second iteration: a more centralised model in which user data, such as identity, transaction history and credit scores are captured, aggregated and often resold….

Web 3.0, the next iteration, potentially upends that power structure with a shift back to users. Open standards and protocols could make their return. The intent is that control is no longer centralised in large platforms and aggregators, but rather is widely distributed through ‘permission-less’ decentralised blockchains and smart contracts. Governance – and this is one of the trickiest aspects of Web 3.0 – is meant to take place in the community rather than behind closed doors. Revenues can be given back to creators and users with some incentives to finance user acquisition and growth.

What does this mean in practice? Essentially, it could mark a paradigm shift in the business model for digital applications by making disintermediation a core element. Intermediaries may no longer be required with respect to data, functionality and value. Users and creators could gain the upper hand and, through open-source rather than proprietary applications, would have incentives to innovate, test, build and scale.

From ‘Web 3.0 Beyond the Hype’, McKinsey & Co