Starting April 1, 2022, the government began taxing cryptocurrency investment gains, imposing a steep 30 per cent tax on income from trade in cryptocurrencies, and a 1 per cent TDS levy on every digital transaction.
That said, the government has also clarified that emerging technologies like Blockchain, Augmented Reality, Metaverse and Web 3.0 will not be taxed, at present.
Officials have said that the government is aware of emerging new technologies, such as Artificial Intelligence, Blockchain, Drone, Augmented Reality, Metaverse and Web 3.0, adding that national strategies for the same have already formulated, as the government doesn’t intend to regulate such evolving sectors.
So what are these new emerging Web 3.0 technology applications, and how do they collectively form the next iteration of the Internet, dubbed as ‘Web 3.0’.
Read below to find out more about it.
What is Web 3.0?
Gavin James Wood, a British computer scientist, co-founded Ethereum (ETH) blockchain. He was the one who coined the term ‘Web 3.0’ in 2014 and has since left Ethereum and started his own foundation called Web 3 foundation.
He has said that the future of the Internet is decentralisation, which means that all the data, whether financial, social, art, or anything else, will be stored on the blockchain, and that the public, in general, would own it.
In an interview with Wired, Wood said that the current Web 2.0 applications are based on the user’s trust upon the system. It essentially means that the user is trusting the respective application owner to use their data responsibly. But in Web 3.0 blockchain-based apps (Dapps), all the data will be stored on the respective blockchain’s public ledger, which anyone can check. So decentralisation of data, data security, blockchain, and user-centric applications are the focus of Web 3.0 of Internet technology.
Says Piyush Gupta, president of Kestone, a data-driven sales and marketing solutions company: “The potential of Web 3 applications like Metaverse, Blockchain, and so on is not limited to entertainment only; going forward, it can be used in the fields of education, healthcare, science, etc. And consumers would be the biggest beneficiaries. Much like the Internet today, ‘Meta Surfers’ would be able to experience, learn and consume in an innovative new way.”
WEB 3.0 can also be a bridge between the consumers and companies.
Says Manish Agarwal, chief executive officer, Nazara Technologies, a gaming and technology company: “Immersive, meaningful engagement in mixed-reality experiences is what the web 3.0 virtual worlds like metaverse would mean for the consumers. Post-pandemic, consumer attitudes have also become more receptive to new virtual experiences. Moreover, metaverse would prioritise socialisation and collaboration between brands and consumers, which means that consumers would be able to provide inputs in every step of the way – from ideation to the final product effectively.”
Here Are The 5 Popular Uses Of Web 3.0:
- NFT: Non-fungible tokens are nothing but a unique locked token of a particular crypto blockchain’s native token. Any type of data can be stored as an NFT, including, but not limited to art, music, autograph, movies, house property records, and others. At present, the most popular crypto blockchain for NFTs is Ethereum (ETH), followed by Solana (SOL). The data on NFT is non-fungible, meaning that it cannot be replicated by anyone else. People can view, share, and exchange it, but cannot replicate it.Click here to know more about NFTs.
- Metaverse: This technology enables people to interact with each other and brands using virtual 3D avatars in a virtual animated world. Think of it as a replica of the natural world, but with subtle differences. For instance, Manchester City FC recently unveiled plans to build their Etihad Stadium replica in the metaverse world. This would allow their fans who couldn’t otherwise go to Manchester to watch a football game live in 3D. In addition, there are numerous brands, fashion labels, and others, who are exploring opportunities in the metaverse world.
“If consumers begin to spend more and more time in the virtual universe, it’s logical that brands will also make their presence felt and find ways to ‘meet’ and connect with their consumers. One of the most significant advantages of interacting with Metaverse consumers is the possibility of bringing imagination to life in a digital world powered with AR, VR, and personalisation with Avatars. Any kind of experience can be created and replicated by brands in Metaverse, which is not governed by laws of physics,” adds Gupta.
- Decentralised Gaming (GameFi): Decentralised gaming is nothing but a game where all the data is stored on a blockchain, and users who play the game will vote upon its features. For instance, in the Axle Infinity Game, players can earn AXE crypto tokens for completing certain tasks, and then they can stake that, i.e., lock them up for voting rights. There can be numerous decisions, including but not limited to gameplay mechanics, game graphics, content, and others, where players can vote using their staked AXE token. So, in essence, the web 3.0 gaming experience will be consumer-centric, and the focus will be on using the game as a service and not a standalone product.
- Decentralised Finance (DeFi): Decentralised finance is a protocol wherein users can lend or borrow money (both crypto and fiat currency) for earning some income. The only difference between a centralised financial institution like banks, others, and decentralised finance institutions like YFI, AVAX, AAVE, and others is that the entire operation happens using smart contracts and on the blockchain.
- Decentralised Science (DeSc): Although the pandemic is now practically at an end, but back when it started, scientists and researchers were working hard to find a vaccine for Covid-19. So, researchers used blockchain to store and classify vast amounts of data relating to the virus’s DNA genome sequencing and other technical data. Apart from this, the supply and logistics of the vaccine were also managed in some parts of the world using blockchain technology, so that counterfeit vaccines are not circulated and/or genuine vaccines do not end up getting wasted. Since the entire data was available transparently and securely, DeSc forms part of the next generation of the Internet, i.e. Web 3.0.
“With a vaccine distribution network powered by IBM Blockchain, manufacturers can proactively monitor for adverse events and improve recall management. Distributors can gain real-time visibility and an enhanced ability to respond to supply chain disruptions. Dispensers can improve inventory management and safety monitoring. As a result, citizens can trust the vaccines and confidently return to society,” IBM said in a press release.
