If you googled for definitions of Web3, you’d probably be met with something like this:
The information are all true, some in details while others discusses more aspects.
I am going to share my understanding of Web3 and my point of view (POV) on Web3.
What is Web3?
The keyword for Web3 is decentralization; the decentralization of data.
Because of digitalization, data is equivalent to power and this power can be manipulated for good or for bad.
Most of the digital services we utilize today are traceable back to the Tech Giants like Google, Amazon, and Meta. This meant that our data are stored with these Tech Giant and we access these data through their services.
Decentralization aims to decentralize the data with Blockchains, so the data will no longer be stored with the Tech Giants. The Tech Giants will not hold as much power then.
How does Decentralization work?
Data storage in a centralized model is consolidated within the control of a handful of tech giants while decentralized storage refers to a peer-to-peer (P2P) cloud storage solution in which regular users oversee the system.
If we do not store our data in the tech giant’s large data centers with millions of servers, where do we store them?
We store them across everyone’s computers… in a sense.

To access data in a decentralized network, you will have to access multiple nodes within the blockchain as the data are stored across multiple nodes. These nodes are hosted on computers and servers around the world. It takes a lot of resources such as computing power and storage space to host or run a node, so most of these nodes are hosted by companies at the end of the day as they are expensive to host.
When new data is added into a blockchain, every node in that blockchain will replicate and store the data within themselves.
Decentralization vs Centralization
Data | Decentralization | Centralization |
---|---|---|
Storage Location | Peer-to-Peer | Centralized |
Management | Difficult to manage as data is spread out | Easier to manage as data is centralized |
Redundancy | Multiple points of failure | Single point of failure |
Accessibility | Does not require as much time as files are retrieved from nearest node | May require more time if data stored location is far from location you are trying to access the data from |
Traffic | Less congestion as users can access different nodes | More congestion as users will access the central server |
Consistency | May have data inconsistency due to data replications | Complete data view as data need not be replicated through multiple nodes |
What’s good with Web3?
Resilience
If you are familiar with the term “putting all eggs in one basket”, Web3 is the opposite of that. Since data is stored across multiple nodes, users are able to access online data even if some of the nodes crashes as there are other nodes available. Service disruption is less likely to occur because of this.
Control
As illustrated on the blockchain diagram above, no single person or group has complete control. So users retains control over their online identity and data.
Transparency
In Web 3.0, transactions that occurs are made known to the public and they can never be deleted or modified in the blockchain. Every transaction is unique and authentic.
There are more benefits to Web3 than what I’ve mentioned above, which I will add as I learn more and fully understand the root features that brings about these benefits.
What does this mean for businesses in Singapore?
The following are my opinions and what Web3 could be used for in Singapore.
A new frontier for financial transaction
Because of how blockchain works, transactions can be processed faster with more transparency and security. You do not need to go through any authorities like the banks, so businesses can save on transaction fee as well. With that said, this can only work with companies who are utilizing blockchain for their financial transactions as well.
Banks in Singapore such as DBS, are making hefty investments into the field of blockchain as well. Although they are not widely adopted yet.
Authentic documentation
One of the best applications for blockchain is to create verifiable and secure documents because of the unique hash function.
Hospitals and clinics in Singapore utilized blockchain to generate COVID-19 vaccination test results. These test results are internationally recognized and they can be customized to meet different countries’ requirements.
HealthCerts is a joint initiative between the government of Singapore and a list of companies who are utilizing blockchain technology to provide solutions. A set of digital standards and schema is established by Government Technology Agency and Ministry of Health. Accredited companies will issue digital COVID-19 test results certificates that follows the set of digital standards and schema to adhere to international standards and Singapore Government’s requirements.