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Is there a significant difference between Web3 (the New Generation Internet) and the Internet of Things (IoT)? Many people consider the IoT to be the Internet’s next generation, as it facilitates the development of novel Web3 environments. The transparency, immutability, and efficiency of Web3 make it an innovative playground for software development. Do you want to know how IoT fits into the ecosystem with all these web3 features? In this post, we will discuss the connection between the Internet of Things and the third generation of the World Wide Web.
To understand things in depth, we need to know the core technologies.
Table of Contents
What is Web3?
The third iteration of the World Wide Web is called Web3, or the semantic web. In Web3, users have more control over their information and privacy settings thanks to innovative tools like blockchain encryption. In Web3, no single server or authority manages the applications.
Data, metadata, and ontologies are the building blocks of the Semantic Web. “Data” refers to the information being exchanged. Metadata is data about data, while ontologies are rules that specify how data should be interpreted.
This has several advantages:
It strengthens the security of the web, gives users more control over their data, and paves the way for innovative new applications that couldn’t be created with Web 2.0.
Functions of Web 3.0
- Because of its decentralized nature, Web 3.0 eliminates the need for a governing body or single point of failure.
- Nobody is denied the use of web3, and everyone is included.
- To manage your online persona, all you need is an Ethereum address or ENS profile and Web3.
- Tokens, such as ETH, can be used to make instantaneous monetary transfers in Web3. Because of this, it can function independently of any reliable outside parties.
What is the IoT?
The term “Internet of Things” (IoT) describes the global network of billions of internet-enabled physical devices that collect and share data. With the advent of low-cost computer chips and the widespread availability of wireless networks, it is now possible to incorporate anything, from a tiny pill to a massive airplane, into the IoT. By interconnecting all these things and equipping them with sensors, we can give previously mindless devices the ability to exchange real-time data without human intervention. Combining the digital and physical worlds, the Internet of Things is transforming the very fabric of our environment to be smarter and more reactive.
Business Advantages of the Internet of Things
Better Productivity
You can pinpoint where your business is losing time through the Internet of Things and eliminate bottlenecks.
Reduced Costs
If you use the Internet of Things, you can pinpoint exactly where your time and energy are being frittered away or where your resources are being depleted at an unsustainable rate.
Happier Customers
With the help of IoT, you can better foresee your customers’ needs and provide them with products that solve their problems.
Future-Proofed Operations
As the world and its consumers become more interconnected, your business model must change to accommodate this.
Digital Twins
Having a digital twin allows you to make the most of the information gathered by your Internet of Things devices.
How Blockchain Infuses Decentralization and Security into IoT Devices
Best known for its financial sector applications, Blockchain serves as web3’s foundational layer. Nevertheless, blocks may include data other than token and coin transactions. You can store and share any data in an immutable format. Why don’t devices in the Internet of Things talk to one another using blockchain technology? Some of the most serious problems plaguing the Internet of Things would then be fixed. Information gathered by sensors in the IoT is only valuable if it is accurate. As a result, the current IoT infrastructure depends on intermediaries and centralized bodies to check the authenticity of the data. As part of web3 IoT, blockchain technology would make it possible for IoT nodes to communicate directly, eliminating the need for a central server. For starters, trustworthiness can be addressed with the help of consensus mechanisms (like cryptocurrency) for verifying transformation. This would make the Internet of Things a trustless system in which devices can communicate directly with one another without any human intervention.
Most devices in the Internet of Things already use public key encryption. A “reputation” could be established if encrypted messages were recorded in a blockchain under a cryptographic identity. The blocks would not only record what was sent and to whom but also reveal whether a device has a trustworthy history. In an infinite past, they are always available. Although communication can be traced, each entity’s anonymity is maintained through a unique alphanumeric identifier. DDoS attacks might be thwarted if encryption were implemented on all networks. A hacker would be unable to break into this system because of the two-key design.
Smart contracts technology, which is supported by many other blockchains, would also be available to the IoT. Actuators could be phased out in favor of decentralized blockchain software in the IoT architecture.
Key Characteristics of Web3-Based IoT Applications
Typically, web 2.0 IoT apps are developed and owned by companies to achieve strategic objectives. In the current web2 model, therefore, organizations have complete authority over IoT platforms and data collected from smart devices. Customers who pay for IoT services and machines do not have legal titles for the instruments or the data they generate. Compared to their web2 counterparts, web3-based IoT apps can be identified primarily by IoT devices owned by customers, decentralized network nodes operated by communities, and tokens used to incentivize machine behavior.
Web3 IoT smart devices will have the option to sync with a blockchain wallet. Regarding web3-based IoT applications, only the device owners can decide how much data sharing is appropriate. The community handles every aspect of the Internet of Things’ backend in a decentralized fashion. Participants will be compensated for their services, including data storage, processing power, network access, etc. To further incentivize community participation, web3-based IoT apps frequently utilize digital assets as rewards. These apps are built on well-designed token economies models.
How to Adapt Web3 in the IoT Model?
Many web 2.0 IoT businesses win over consumers by developing innovative products and services that excel in specific areas. In addition, they launch massive advertising campaigns. DeFi, non-fungible tokens, and decentralized autonomous organizations (DAOs) are examples of web3 technologies that can be leveraged to aid in the creation of novel IoT business models. In addition to boosting customer engagement, these technologies can also have a significant social impact. Companies that want to compete in the Internet of Things (IoT) market should consult with web3 development firms to start their venture. As a result, they can use these NFTs to tokenize their Internet of Things products on the blockchain and grant rights to NFT holders (e.g., access to future products). Using DeFi platforms, customers could be incentivized to share their IoT data with businesses in exchange for passive income. It is possible to allow customers to form a DAO to jointly own a machine and make decisions about its use through a democratic, consensus-based governance mechanism. In addition, businesses should be free to choose web3 technologies and configurations that best serve their needs.
Conclusion
Web3’s goal is to decentralize the Internet, giving users more control over their own information. The Internet of Things (IoT) aims to merge the digital and physical worlds into one seamless experience.
Web3 in the Internet of Things will help you get more done in less time. There will be no need to send out a survey after an event or spend hours poring over data in the hopes of getting a response. Web3 can make suggestions based on weather, time of year, and expected attendance. This will allow you to receive real-time data, information, and offers, streamlining your planning process. You can even use this information to revamp your yearly meeting schedule.
Read more: 5 New Ways to Invest in Technology Assets
