Just as we all were catching up on Web2.0, Web3 has started making rounds. One keeps wondering what this is all about and hence it makes sense go through the history of web to some extent. This article will list lot of new terms and phrases, which I intend to cover in coming days in detail, but for now let’s focus on Web3.

In a nutshell, Web3 is all about decentralization – of ownership, of permissions and of trust. It also brings in some added benefits which we’d see later in the post. However, to understand why decentralization has been the key for Web3, one needs to understand what was original web and Web2.0

The origin

World-wide-web, as it was envisaged was and is a network of connected computers. the early days were primarily “Read-only” as creators used to create content and host that content on their website. The internet consumers use to read the content and were happy with this new information base. There was very little they could do at that point in time.


As the user base grew, they wanted to do more with the internet and that gave rise to interactivity on the internet. The “Read-only” web turned into a “Read-Write” web. Social networks gave opportunity to the users to connect with each other and do a lot more than just reading.

However, the idea of “connected” world also gave rise to concentrating power with handful of entities, which could snap the control out of user’s hand in a jiffy. e.g. Trump was banned from Twitter or governments asking social networks to take down specified pages or handles. To some, this was a disturbing development. And this gave rise to next stages in the evolution – decentralization

Current stage – Web3

Web3 represents decentralized internet. You own a piece of the internet and not just consume and produce. In this stage, Blockchain paved the way. Concept of blockchain led to invention of cryptocurrency (Bitcoin to be specific) and the inventors rejoiced with the idea of parallel currency. It also taught the users that the currency or for that matter the data on the internet can be controlled by the public via consensus rather than single or handful of entities. Launch of Ethereum took this concept even further. Even the trust could be decentralized and various folks (or nodes) can reach a consensus about trusting something or not instead of a central authority. This is where the current stage got marked as Web3.

Decentralization diagram representing Web3

Some distinct advantages of Web3:

  • Decentralization
  • Permissionless
  • Trustless
  • Support for native payments

In Web3, typically, your data lives in some or the other blockchain. With Oracles or some similar mechanisms, a blockchain can interact with external world or other blockchain, thereby improving the core concept of decentralization. One can carry their own data from one blockchain to another without needing anyone’s permission.

Limitations and Problems

Although, decentralization is the core idea, the infrastructure where all the data resides, will most likely still be owned by handful of companies (cloud providers OR the service providers where the code base/authentication systems reside). The concepts of Web3 are still complex for majority of the users and kind of act as a deterrent. With current level of technology, the accessibility is still a challenge from cost perspective.

As we have seen the evolution, it is only prudent to believe that all these limitations and problems will be solved in near future to increase the web3 adoption.

Some other important concepts:

  • NFT – Non-fungible tokens
  • Cryptocurrency
  • CryptoExchanges
  • Smart Contracts
  • Proof of work
  • Proof of stake
  • DAOs (Decentralized Autonomous Organizations)

Reference Links:


Blockchain technology got famous due to the rise of BitCoin and several applications of this technology started becoming visible. The blockchain is a distributed technology where there is no single entity which controls the network and works on the built-in mechanisms to keep the network secure and truly decentralized. This also gave rise to a concept called DApps – Decentralized Applications

Continue reading “DApps”


ICO means Initial Coin Offering. This is a latest buzzword and latest way startups are raising money. The moment I say “raising money”, you will be tempted to compare this term with IPO – Initial Public Offering. However, hold on. They are similar yet very different.

ICO – Initial Coin Offerings increased multifold in 2017

What is ICO then?

In ICO, a company sells tokens or coins to people of entities who are willing to invest their money in the company’s project or product. The coins or tokens can be purchased in lieu of other digital currencies such as Bitcoin or Ether or  even with real money (e.g. USD). The company who is selling the coins announces their purpose of raising the money. Investors who believe in that purpose, purchase those coins. If company’s project or product is launched and successful, one can expect the value of the purchased coins going up. And then the investor can sell his/her tokens and make profit.

All this sounds familiar with IPO, right?

Let’s talk about the real difference.

When you invest money in the IPO, you get shares in the publicly traded company. You get voting rights, you get ownership in the company equivalent to your shares. You could decide to increase your stake in the company. The company is required to disclose all the accounts, audit reports and is regulated by central agency such as SEC (US) or SEBI (India).

However, in case of ICO, you do not get any ownership of the company. Neither you get any voting rights nor you can hope to increase your stake in the company. The only thing that you can hope and can expect is that the tokens would increase in their values and you get your returns.

ICO can also be referred as crowdsourcing through cryptocurrency.

Facts about ICO

  • First token sale – July 2013
  • Tracked via CoinDesk
  • Money raised until now – USD 3.3B

Related Links

Related Keywords:

Cryptocurrency, Bitcoin, Blockchain


Blockchain in simple terms is a chain of blocks. In computer science terminology it is a singly linked list. Each block stores a pointer to previous block along with some data. And hence the name.

How is Blockchain stored?

Blockchain is a distributed ledger comprising of several computers referred as “nodes”. Each node stores entire copy of the chain. Each such copy is independently verifiable. Whenever a new node joins the network, it receives entire copy of the chain.

Characteristics of Blockchain:

  • Distributed – As mentioned above, there is no single node which is controlling the blockchain. As a result this makes it a distributed system.
  • Robustness – Since it is a distributed system, it gives robustness to the system. Failure of any single node doesn’t make the system inaccessible, unusable or unstable.
  • Secure – The data in each block could be encrypted. Each block maintains the reference to previous block. The reference for the current block is derived by using encryption algorithm i.e. hashing the data. As a result, if the data inside the block is changed, the hash also changes. This in turn invalidates rest of the chain on that node. In a distributed system, such nodes get rejected and hence once your data is added to blockchain it is nearly impossible to modify that record.
  • Transparent – The transparency is only to the extent that every node has a complete copy of the chain. However, data inside each block could be encrypted and hence not every node would be able to read the data.

But what is the use of blockchain?

It has several possible uses. One which currently a buzzword is – Bitcoin – cyrptocurrency. More about this sometime later.

Among other uses, one can use this technology to maintain land records or medical history, audit trail or insurance claim. Typically, where you need to ensure sanctity of entire record, you could put blockchain to use.

Related Links

Related Keywords:

Cryptocurrency, Bitcoin, Ethereum, Cryptography