The term "decentralization" immediately brings to mind images of liberty.

And if you're not familiar with the term "decentralization," it simply means being free of any central authority.

Sounds like freedom, right?

Well, since its founding in 1989 by the main figure Tim Berners-Lee, who established the World Wide Web (WWW), the Internet has undergone numerous and significant modifications.

Web3, the most recent change, is built on the concept of decentralization.

Remember how I compared decentralization to freedom? So here's how Web3 incorporates this approach.

Understanding Web3 and Decentralization

Web3 differs from banking systems in that neither the government nor the banking system has any central jurisdiction over a user's data, but instead hands over this control to the user himself.

This allows users to be in charge of their data allowing them to exchange and interact with other users without a central authority breathing down on their necks removing the need for a “middle man”.

However, decentralization is not novel to the world as social media platforms like Instagram and YouTube incorporate this same ideology in their operation. A user does not have to confer with any authority or central figure to make certain posts on these platforms.

But as the internet evolved, central authorities came into play with the government and a few large companies managing users’ data.

Web3 aims to mitigate this problem by reintroducing decentralization as its core tenet. It does this using blockchain technology and distributed ledger systems. The former, an example of the latter, keeps financial transactions and data maintained across different systems and locations rather than in a single centralized location.

This decentralized system removes control from a singular entity making data immutable as once data is recorded on this ledger, it cannot be altered or changed.

Benefits of the Decentralized System

Although there are many benefits to this system, the most significant one would be its potential for security and resilience. Unlike the centralized system where any attack on its base is likely to disrupt the whole operation, there is no “base” for Web3 making it elusive to attacks. As users have control over their data, it reduces the risks of security breaches.

One can even go as far as likening decentralization to democracy. Democracy, as defined by Abraham Lincoln as a government of the people, for the people, and by the people shows some likeness to Web3:

Web3 removes certain barriers placed by banking systems or social media platforms on its ease of access. The approval process one has to go through on either of the two areas can be limiting based on either location or financial status. One does not need to follow these stringent requirements to access Web3 as it can be accessed by everyone.

Web3 Beyond Banking

You might wonder if Web3 is only applicable in the banking system or social media platforms, but it is not the case.

In the area of supply chain, Web3 revolutionalizes its approach. As each transaction is immutable and stored on each “block”, it makes it easier to track and keep in touch with the journey of goods expected to be delivered from its supply point to its destination.

Web3 also shines out in Identity Protection. This evolved version of the Internet allows users to create and self-manage their digital identities, it does this using the Self-Sovereign Identity(SSI) system.

One of the key components of the SSI is the Decentralized Identifiers(DIDs). DIDs being globally accepted, are IDs built on the decentralized network of Web3. Not only does it protect users from identity theft, it allows one establish their digital presence without relying on any central authority.

Final Thoughts

As we enjoy the benefits of Web3, it just shows how much of a good decentralization has to offer. The future seems much brighter with systems like this in place!

And as the Internet is constantly evolving day after day, this may just be the tip of the iceberg “the big Web3” has to offer.