After two decades of reigning supreme and reorganizing our lives, the beloved “Web2” is now teetering on its throne. Undoubtedly, the US tech industry has faced a significant downturn in 2021, with 107,000 layoffs and another 46,000 within three weeks. Meanwhile, The Department of Justice is taking legal action against Google over alleged monopolistic practices through advertising operations. As if this wasn’t enough instability for one sector, Twitter continues to battle following Elon Musk’s acquisition while earnings from Meta have taken a nosedive since 2022–plummeting Web2 as an entire industry into chaotic times difficult to escape without pain or loss.
Was Web2’s Decline Historically Inevitable?
Before 2022, due to ample financial stimulus, powerful Web2 tech giants invested sizeable sums in the future’s newest advances – from virtual reality to artificial intelligence. But when rates escalated, and their bread-and-butter offerings, such as digital promotion and data storage, saw plummeting sales figures, these investments began to falter.
After these companies have solidified their position in the mainstream, they will be able to capitalize on new technologies. However, it is worth noting that financial instability usually coincides with a waning trust in the tech industry from the public. This lack of confidence can lead to changes in politics and society. While the tech industry is universally trusted globally, it has a glaringly weak area: confidence from US citizens. According to Edelman Trust’s data in April of last year, trust in big tech companies here is at an all-time low – yet still higher than other industries worldwide.
Decentralized Web3 Could Be the Future of the Tech Industry
With the current shift in technology, many wonder what this could mean for the dawn of Web3. Yet, while Web3 is an exciting concept that will bring unknown advancements and opportunities to our digital space, one key question remains: who controls these new systems? The idea of harnessing collective control sounds appealing at first glance; however, it’s essential to remember that we all generate crucial data and content integral to a successful internet economy. Therefore, as we look ahead toward tomorrow’s technological innovations, let us be mindful of maintaining equitable ownership over them.
Without compatibility between all stakeholders to create a fair system of decentralized identities, credentials, encryption, and data storage, the “web3 world” will still be controlled by large entities who own the data. This outcome would not change our current situation if not addressed.
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