Web3 Payments Origins & Evolution

Web3 Payments Origins & Evolution

4 min read

Web3 payments are online transactions that involve blockchain technology and decentralized finance (DeFi). Unlike traditional online payment systems which often rely on centralization, Web3 payments allows users to make secure and transparent transfers.

Web3 cryptocurrencies are digital resources that promise greater autonomy, data control, and privacy. They contribute to decentralized internet development, allowing industry changes like musicians taking their creations directly to fans on personal devices or abandoning centralized platform dependence (on companies like YouTube, Facebook, and Spotify). Web3 follows two previous web iterations described below.


A Brief Web History

As the internet continues to evolve, the World Wide Web has progressed through two distinct generations and is now vastly different from its initial form. The relatively static early internet days lacked interactivity, showcasing limited interconnections compared to what can be seen today. This transitional period witnessed an increasing focus on facilitating user-led content, allowing applications to power across multiple platforms. Modern times have seen a user-generated content explosion, with applications operating across multiple platforms.


Web1 – The Read-Only Era

The early internet was vastly different from the one we know today. Websites of that era lacked any interactive features, so users were restricted to read-only content and had no way to input data or create their own webpages without using external sources such as free hosting services or ISP servers. As a result, navigation across pages relied solely on hyperlinks which made browsing complicated compared with modern standards.

Web1 was a static affair comprising corporate websites with limited capability for user interaction; due to this, it gained the moniker read-only web. Most web users were passive, and user input occurred offline.


Web2 – The Read-Write Era

The Web2 advent was a crucial milestone in our digital landscape and social fabric development, with people attributing it to a new era that values collaboration, interaction, and responsiveness over traditional web models. The shift towards Web 2.0 has changed how businesses approach their online presence, requiring developers to build intuitive websites with simplified UIs, encouraging users to engage with the web pages. All these changes have significantly impacted society’s understanding of technology by making internet access and interaction simple.


Web3 – The Read-Write-Own Era

After Ethereum launched in 2014, Gavin Wood coined what would become Web3. He identified an issue with current web solutions requiring users to place their faith and trust in private companies. Instead, he proposed restructuring the internet to abandon the reliance on large corporations or entities.

Through blockchain, individuals will reap financial benefits from owning data and controlling its use.

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Web3: Key Features & Their Impact

Web3 alters internet user interaction, introducing changes in data ownership and management structures. It’s critical to consider how these modifications affect day-to-day lives web usage. Here are the key features propelling Web3 operations.

  • Semantic Web

    Through search and analysis based on the ability to understand the meaning of words, the web has improved web technology to create, exchange, and link material.

  • Artificial Intelligence

    With the help of natural language processing and artificial intelligence, computers comprehend information like people, resulting in quicker and more accurate outcomes.

  • 3D Graphics

    Web3 applications that use three-dimensional design include museum tours, computer games, eCommerce, sites, and services with a geographic focus.

  • Connectivity

    Web3 information integration is because of semantic metadata. The user experience improves, reaching a new connectivity level that utilizes all the information available.

These features enable numerous revenue-generating opportunities that require secure payment methods. Naturally, a Web3 payment solution emerged to ensure holistic service provision.


Understanding Web3 Payments

Web2 payments are reliant on conventional banking systems, leaving those without bank accounts excluded from participating. Transactions between individuals and businesses must pass through third parties who take the lead regarding data security, transaction timescales, and costs associated with making a payment. Web3 payments leverage blockchain technology to provide a secure and transparent online transaction method. Theysupport enterprises like eCommerce, social media, logistics, gaming, streaming, and online entertainment services.

Web3 payments have several unique advantages, like borderless and cheaper transactions, making them practical for enterprises seeking to grow their market presence.


Web3 Cryptocurrency Payment Gateways – CoinPayments

CoinPayments’ Web3 payment gateway simplifies cryptocurrency payment processing and receipt, allowing businesses to provide alternative payment methods and help eliminate uncertainties around crypto transactions. Additionally, they assist enterprise growth in new markets while reducing transaction processing expenses.

Over 18,000 businesses accept cryptocurrencies as a legitimate payment form. As more effective and optimized crypto payment service providers enter the market, this number will continue to rise. Businesses and clients welcome the benefits. They include

CoinPayments offers a low transaction fee (0.5%) and allows merchants to receive payments in over 100 cryptocurrencies, providing supplementary earning avenues besides traditional currencies.

Are you looking to expand into or leverage Web3 payments? CoinPayments is the perfect solution! Register an account and integrate Web3 business solutions today.

Want to learn about the latest crypto trends, breaking news, and more? Visit the CoinPayments Media News page.

You can also check out the Merchant Tools, Store Directory, Integration Guide and FAQ sections for more detailed information about the services CoinPayments offers.


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