Subscribe to our newsletter!

Submit

Thank you for signing up for our newsletter!

We’re excited to have you with us and will keep you updated with the latest news, insights, and updates straight to your inbox.
Oops! Something went wrong while submitting the form.
Back to Blog
July 28, 2020
|
Read time {time} min

What Is Web 3.0? Features, Definitions, & Examples

Written by
Permission
Stay in the loop

Get the latest insights, product updates, and news from Permission — shaping the future of user-owned data and AI innovation.

Subscribe

There are enough arguments about “what Web 3.0 is” to make it impossible to point to a single authoritative definition. But that’s fine, it means we can propose our own definition of Web 3.0.

Here it is:

Web 3.0 is the third generation of the Internet—a global network that permits intelligent interactions between all its users and devices.

Now to explain ourselves…

Web 1.0 was the early Internet that persisted until about 2000. At first, websites were just places you could read the information posted on servers and interact with such servers in simple ways. There were search engines, and there were e-commerce sites like Amazon and eBay.

Web 2.0 arose following the turn of the century. It was far more interactive, far more collaborative, and far more capable. There were technical reasons why, not least of which was the rapidly improved bandwidth available to users, and servers. It is this generation of the web that gave us smartphones and mobile computing. Web 2.0 could support near real-time interactions and thus collaborative activity was feasible. Social networks like Facebook and Twitter were part of this, but so were graphical multiplayer games. It also included the birth of Big Data and the machine learning algorithms that sifted through it.

Web 3.0 is defined by intelligence. This intelligence is not just in interactions between people and websites, but between software and software. And, there’s more than that. The difference between Web 2.0 and Web 3.0 has multiple aspects.

We will discuss them one by one.

The Underlying File System

Web 1.0 and web 2.0 are defined by the HTTP protocol and the simple file systems it provides access to. The protocol enables resources to be accessed (via a URL) and also files, particularly HTML documents.

It is a client-server protocol that currently provides the foundation of all data exchanges over the Internet. The term client-server means that there is a requesting side (a client – usually a web browser) that calls for information from a server (a computer that serves up information – usually web pages or parts of web pages).

The protocol works by virtue of Domain Name Servers (DNS) servers. There is a large network of these which includes thirteen root servers.

You can think of the DNS servers as a postal service for the request you make from your browser via the HTTP protocol. They deliver that request to the address you specify, which will be something of the form:

http://www.thewebsite.com/the-page-I-want

When thewebsite.com receives this message, it sends you a message back, the page you want, using the same postal service.

It may be more complicated than that. In reality, it may involve multiple messages, including ads that you don’t want to see. Nevertheless, it all happens through a kind of postal service.

With Web 3.0 that mechanism will change. Indeed, we might be inclined to call it Internet 3.0.

The technology that will most likely replace the current DNS system goes by the name of the InterPlanetary File System, IPFS for short.

Why wasn’t it called the InterStellar Files System or even the InterGalactic File System? Perhaps its designers lacked ambition.

The IPFS is also a postal system, but it is not centralized around a group of root servers like the HTTP protocol. The goal in the design of IPFS, which is a child of blockchain technology, was to create a peer-to-peer file system that worked after the fashion of BitTorrent, the file streaming service that is frequently used to download and share videos and music.

IPFS separates the act of seeking information from the act of retrieving it. It does so through the magic of content addressing.

Content addressing is a math trick where you apply a hashing algorithm to some content (such as a web page) and it generates a unique key that acts as its address. To cut a long story short,  you provide the network with that address, and a server that holds the information sends it to you.

IPFS has lots of advantages over HTTP. Here’s a list:

  1. It is more secure (and SSL is no longer required).
  2. It keeps all the versions of a file, as well as the file.
  3. The data can be distributed in many places. For example, a website does not reside on a particular server and may not even have a specific origin server, but it’s there somewhere in the file system.
  4. Because the address relates to the content, the address never needs to be updated when the content is moved.
  5. There’s no real distinction between client and server. Remember it’s like BitTorrent where there are multiple servers both holding and requesting data, including your own device).
  6. It is significantly faster than HTTP.
  7. It is transport-layer agnostic, which means it can work over any transport layer (from TCP to Bluetooth)

Assuming IPFS is successful, all of these advantages become Web 3.0 advantages.

Digital Identities

Digital identities are another technology that was spawned by the blockchain, and it may become the most important feature of Web 3.0. The point is that Web 2.0 is infested with cybercrime—dark deeds of every description from identity theft to click fraud.

It happens because the connection between two computers is not properly authenticated, and currently cannot be authenticated. Let me spell it out.

With web 2.0 a server never knows for sure that the client software accessing it is what it pretends to be—a browser under the control of an identifiable human being. Neither, on the other side of the equation, does the browser know whether the server and the files it is accessing are the ones it intends to access.

However, if everything involved in such an interaction had a verifiable identity, fraud and deception would be far more difficult to perpetrate. With Digital IDs, individuals can only have one verifiable identity, since each ID has to be linked to a unique credential, like a birth certificate. Similarly, organizations can only have one verifiable identity. As regards everything else (hardware and software) involved in the interaction between a client and server, these things can be directly tied to a unique ID belonging to an individual or an organization.

What is more, because of a brilliant technology that goes by the name of zero-knowledge proof, it is possible for either side to prove they are authentic without even revealing their identity.

Digital IDs enable two important features of Web 3.0:

  1. The severe reduction to the point of elimination of cybercrime.
  2. Individuals will be able to manage and grant access to their personal data.

(As you have probably realized, Permission‘s business model is strongly connected to this aspect of Web 3.0)

Micropayments

The blockchain is fundamental to Web 3.0, in several ways. We have mentioned two so far: bullet-proof Digital IDs and a distributed file system. Perhaps its most important contribution is its primary use, its ability to create cryptocurrencies, and particularly the ability to use such currencies to make micropayments.

This stems from the low cost of a cryptocurrency transaction. In the non-blockchain world, the cost of a credit or debit card transaction is calculated as a percentage of the value plus a fixed amount (say, 10 cents). The seller pays. So sellers are unlikely to allow credit card payment for products with a ticket price less than about $10.

The cost of a blockchain payment is generally much lower. In practice, it varies quite a lot between different cryptocurrencies as it depends on how the blockchain is organized. Low-cost examples include an EOS transaction at $0.0105 and a TRON transaction was $0.0000901 (measured in March 2018).

With such low transaction costs, it becomes possible to sell things for a few cents. A few cents could be the fee charged for reading an article from a national or local newspaper or a magazine. Being able to charge per article that way will revolutionize web publishing. Low-cost sales of products and services will be a reality with Web 3.0.

Trust

Some might argue that the blockchain’s most important contribution is automated trust. This stretches beyond the security that the blockchain can deliver through digital IDs by building a web of trust.

Some blockchains enable the creation of “smart contracts”, programs that are attached to the blockchain and that execute when triggered by a specific blockchain event. The important point about smart contracts is that the program code is the contract.

This makes smart contracts far more certain than a legal contract. Legal contracts are enforced through the legal system, which varies in reliability from one place to another but is never perfect. The outcome of a challenge to a legal contract is never certain.

However, smart contracts can be trusted 100%. A simple example of a smart contract is given by the movement of goods through a supply chain. Goods are dispatched with an RFID tag that reports their location when read. When the goods reach specific locations the smart contract can automatically enact payment—for transport or for warehousing or import duties. Payments are thus predictable and can be trusted 100% to occur.

Naturally, smart contracts can be far more complex than that example. They can cover many situations that are currently covered by legal contracts, diminishing the possibility of fraud.

Semantic Data and Information

Another facet of Web 3.0 is the presentation of data in a semantic form. We will not dive into the technology behind that here, but you can get a sense of it from Google’s Knowledge Graph which places blocks of organized data to the right of some of your search results.

If you don’t recognize what I’m talking about, do a search on “Galileo’s trial”. Notice that Google gives you a succinct summary of your search topic, as well as the usual collection of links. That’s the work of Google’s Knowledge Graph.

But now try a search on “Who attended Galileo’s trial?”

At the moment such a question is too complex for Google to unravel. However, it could if it had a greater grasp of the meaning of the question and if the websites it surveys organized their metadata in a more semantically friendly manner.

OK, that’s academic, not economic.

But now think about searching for products. It’s here where the commercial magic of Web 3.0 steps in. Nowadays in the US, more product searches happen on Amazon than on Google. Yet neither of these Web 2.0 giants can answer detailed product questions like “what is the best deal available for a 55” HD TV for delivery within 2 days.”

From the consumer’s perspective, a practical answer to such a question would serve up a range of information, offering possible choices rather than just a set of web links.

That kind of capability will be part of Web 3.0 by virtue of semantic technology. It will save buyers and sellers a good deal of time in the sales cycle.

Software Negotiating With Software, Bots for Everyone

The paradigm we have become accustomed to is that of “browser and website”.

We have browser plugins that provide certain services for us (clipping copies of web pages, filling in passwords, ad blocking, and so on.)

On the website side of the equation, websites have been fairly unresponsive in interacting with their visitors, with the exception of the web giants with the big bucks who can afford Big Data AI and thus software that responds to the user in real-time.

The paradigm for Web 3.0 will be different. The individual user will begin to regard what we now call a browser as a kind of operating system that runs applications. What we now think of as plugins will become our applications, and while they will still be able to show us documents or videos, as before, some apps will be capable of much more.

For example, a shopping application will help its owner buy, say a car, by gathering data from him or her and then going out to find suitable links for the user to visit. Ultimately such software should be able to help the user through the whole buying process, including negotiating a reasonable price.

Just as nowadays hackers and some websites run bots, in Web 3.0 the user will be able to buy and configure bots that serve them directly. Bots are, after all, just applications.

This development may take a while as it depends on the proliferation of digital IDs and also good semantics.

AI and Big Data, for Everyone

Most web users are painfully aware of digital ads that follow them around the web or the ads that Facebook drops before their eyes or Amazon’s efforts to tempt them to buy something else “they might like” when they are about to place an order. Among the websites with big budgets, the twin weapons of Big Data (your data mainly) and AI provide commercial firepower that puts the customer at a disadvantage.

However, intelligence can cut both ways. AI could equally well serve individuals if they take control of their data and collaborate in finding effective ways to exploit it. In short, with Web 3.0 the possibilities of AI are likely to broaden, but to the disadvantage of the big guys.

3D Graphics

The advent of 3D Graphics is a natural consequence of graphical software evolution. If you are not sure what 3D graphics is, here’s an example. Such animation owes a great deal to WebGL (Web Graphics Library), which is a JavaScript API that can render interactive 2D and 3D graphics within web browsers without the need for any plug-in. It is based on the OpenGL graphics language and uses elements of HTML5. An important technical detail is that it can exploit GPUs and thus performs well.

3D Graphics will make an impact outside the obvious areas of online games and entertainment. It is likely to be used in education, health care, real estate, and other areas of e-commerce. It’s also likely that, in time, individuals will design and use their own 3D avatars.

While you can view blockchain-related technology (Distributed file systems, Digital IDs, micropayments, etc.) as related developments, 3D Graphics is simply an evolutionary development. It was inevitably going to develop in a given time; it just happens to be coming to maturity at the same time as these other Web 3.0 technologies.

Complete Connectivity (Ubiquity)

Over time, Web 3.0 will remove many of the inconveniences of Web 2.0.

We can expect the Web to be available on any device (pad, mobile phone, desktop) seamlessly. The Internet of Things will join the party, with every household device controllable from anywhere and, where appropriate, able to be used as a web access device.

Ultimately, this means that your identity, and most things you own, and all your data, as well as every software capability you have a right to use, will be linked together and able to work together.

When Will Web 3.0 Happen?

New technology generations are never born on a specific date. Even Web 1.0 didn’t happen on a particular date.

You could say it began as soon as the first browser was released in a usable condition. But at that time there weren’t many websites. You might, therefore, claim that it was born when websites began to multiply. But realistically it didn’t happen until the first search engines appeared. However, you might want to argue that it didn’t occur then, but when the first true e-commerce sites began working.

The point is that it slowly emerged. Web 2.0 with its social networks, multiplayer games, and big data algorithms also took a while to come of age.

Web 3.0 will be the same.

Perhaps you will wake up one morning and realize that your browser embodies a set of bots that do really useful things for you, that you have a Digital ID and that you can interact intelligently with the Internet. When that happens you will have a right to declare: “Oh yes, this is Web 3.0.”

Recent articles

Your ASK Wallet, Now Powered by Coinbase

Sep 22nd, 2026
|
{time} read time

We've partnered with Coinbase to bring best-in-class wallet technology to our community.

Today we're updating the technology that powers your ASK wallet. Here's what's changing, what it means for you, and what stays exactly the same.

What's changing

We've moved your Permission wallet to Coinbase's platform. What that means in plain language is this: starting today, you are in full control of your ASK. When you click to send, redeem, or manage your balance, the transaction happens from your account, signed by your login. We no longer hold your wallet keys. Coinbase does, on your behalf, under your authority.

We chose Coinbase's embedded wallet specifically because it brings institutional-grade security to our users without requiring you to manage anything yourself. The infrastructure is Coinbase's. The wallet is yours.

Beyond the custody change, our users now have a wallet that can go wherever they go: exportable, cross-chain ready, and backed by a platform that serves millions of people around the world. We're proud to bring that to our community.

What it means to control your own keys

As Permission has grown, we felt strongly that your funds should be held by a platform built specifically for that purpose, with the security standards and regulatory rigor that come with it. Moving to Coinbase's embedded wallet reflects that commitment.

With today's change, Coinbase secures your private key inside their systems, and only your Permission login can authorize transactions. When you click to send or redeem ASK, the transaction is authorized by you, through your login. We are no longer part of that process.

What this means practically: your wallet operates on its own, independent of Permission. Treat your Permission login like you would a bank password. It is now the key to your wallet. If you ever want to take your wallet entirely outside of Permission, Coinbase supports key export and that option is yours.

What Coinbase sees

Because Coinbase is now part of the infrastructure, your email address, account identifier, and wallet information are shared with them for the purpose of operating the wallet. For details on how Coinbase handles this data, you can review their embedded wallet documentation and their privacy information.

For how Permission handles your data, our Terms of Use and our Privacy Policy govern that relationship, as they always have.

What stays the same

Everything you experience in the app. Earning ASK, redeeming it, transferring it, viewing your balance, managing your family. None of that changes.

And, what does change, we're excited about: key export, cross-chain support, and institutional-grade security. These are capabilities that would have taken years to build in-house and that Coinbase has spent that time perfecting. We chose to partner with the best-in-class, and our product and users will be better for it.

If you have questions, support is always here.

The Permission Team 🤝

What Is Family Friendly AI™?

Sep 9th, 2026
|
{time} read time

Only 15% of people globally say they trust AI systems, and 72% of parents are concerned about AI’s impact on their children.

AI is quickly becoming part of everyday family life, but Big Tech wasn’t built with families in mind. Family Friendly AI is technology intentionally designed for families, giving parents visibility into their children’s digital lives, guidance when they need it, and tools to encourage positive behavior.

5 Things That Make AI Family Friendly

1. Your family owns its data.

‍Your family’s data is never sold. It belongs to your family, and you stay in control of it.

2. Parents know what’s happening online.

‍Family Friendly AI gives parents visibility into their children’s digital lives, helping them fully understand how their children use and interact with technology.

3. It motivates children with rewards and incentives.

‍Parents can set rewards and incentives to encourage positive behaviors and help their children build better habits around technology and beyond.

4. It gives parents coaching and inspiration.

‍Parenting in a digital world comes with challenges that screen-time limits alone can’t help with. Family Friendly AI gives parents personalized AI-insights and guidance to help them navigate what their children are doing online and decide what to do next.

5. It earns families' trust.

‍Technology for families should have a higher bar. The companies building it should stand behind it with an unconditional, no-questions-asked money-back guarantee.

It’s time for AI, crypto, and the technology shaping our children’s lives to meet the family-friendly standard.

Big Tobacco Had Its Reckoning. Now It’s Big Tech’s Turn.

Aug 12th, 2026
|
{time} read time

The floodgates are open.

Thousands of lawsuits are moving forward. States are writing new rules for kids online. And lawmakers are beginning to tell AI companies what they can and cannot do when children use their products.

And you don't have to look far to see it happening...

The courts: 3,000+ lawsuits get the green light

On August 10, the Ninth Circuit allowed more than 3,000 lawsuits against Meta, Google/YouTube, TikTok and Snap to move forward.

The cases allege that the companies deliberately designed features of their platforms to be addictive, particularly for young users.

The tech companies had argued that Section 230 of the Communications Decency Act protected them from the claims. The court rejected their attempt to use Section 230 to stop the litigation at this stage, finding that it provides a defense rather than immunity from being sued.

At their core, these cases are allegations about the platforms themselves: how they were designed, how they kept people engaged, and what responsibility the companies bear for the consequences.

The companies will still have the opportunity to defend themselves against those allegations.

But with more than 3,000 cases now getting the chance to be heard, this is getting harder to argue away.

New Jersey: families get a way to enforce the rules

One day later, New Jersey Governor Mikie Sherrill signed the New Jersey Kids Code Act into law.

The law establishes new design and privacy requirements for covered online services likely to be accessed by minors. Among other provisions, it requires high privacy settings by default, restricts certain push notifications, prohibits dark patterns for minors, limits how children's personal data can be used and retained, and places restrictions on targeted advertising.

But one provision in particular changes the accountability equation: a private right of action.

An individual under 18 who is injured by a violation can bring a claim under the law, with statutory damages of $5,000 per violation. Parents may also bring an action on a minor's behalf.

Which is legal language for something pretty simple: families don't have to wait around for a regulator to act. They can take companies to court themselves.

Colorado: AI safety starts becoming a legal requirement

Then there's Colorado.

Earlier this year, Governor Jared Polis signed Colorado HB 26-1263, establishing specific requirements for operators of conversational AI services.

And this one is worth paying attention to because the law doesn't simply tell AI companies to "keep kids safe." It starts defining what that actually means.

Operators must estimate users' ages. When dealing with minors, the law requires recurring disclosures that they are interacting with AI rather than a person and establishes protections around sexually explicit interactions.

It also addresses one of the most unsettling questions surrounding companion-style AI: emotional dependence.

The law requires safeguards designed to prevent conversational AI from producing statements that simulate emotional dependence. It also requires protocols for responding to suicidal ideation and self-harm, privacy and account-management tools for minors and parents or guardians, and reporting requirements intended to help regulators evaluate whether those safeguards are actually working.

The law takes effect January 1, 2027.

For companies building conversational AI, that's a meaningful shift. Child safety is moving beyond a set of voluntary guardrails companies write for themselves. In Colorado, some of those guardrails are becoming law.

It's no coincidence that this is all happening at once.

Big Tobacco didn't wake up one morning and discover the world had changed its mind. The reckoning came piece by piece, until lawsuits became regulation and an industry that had spent decades setting its own standards was finally forced to take responsibility for the harm its products caused.

We're watching that shift happen again.

For years, the responsibility for keeping kids safe online has fallen on parents.

Set the parental controls. Check the privacy settings. Watch the screen time. Know which apps they're using. Figure out who they're talking to. Keep up with every new platform, algorithm and now AI chatbot entering their lives.

All while the technology on the other side of the screen gets more sophisticated by the month.

Now courts and lawmakers are starting to ask the companies building that technology a much more uncomfortable question:

If children are using your products, what are you doing to keep them safe?

For families, that's the shift that matters most.

This isn't another round of false promises to "do better."

This is legislation. These are lawsuits. This is accountability beginning to have teeth.

Parents will always have the role of protecting their children online. We happen to believe they should have far more visibility and control over the technology entering their families' lives, not less.

But parents cannot be the entire safety system.

The law is making clear that the companies designing the products, writing the algorithms and building the AI our kids interact with have a responsibility, too.

And when they fail to meet it, they'll finally be held accountable.

ChatGPTs Births A Parenting Tool That Needs Some Image Repair

Aug 4th, 2026
|
{time} read time

Sam Altman keeps pitching AI as a co-parent. The reason parents aren't buying isn't nostalgia, it's the lawsuits.

Last Friday, Sam Altman had an idea he was excited about. Hook your family calendar up to ChatGPT, tell it what your kids are into, and every morning on the drive to school it'll produce a little podcast: one kid's soccer game that afternoon, another kid's birthday coming up, maybe some news. He called it a "cool use case."

What should’ve felt really innovative, landed like the opening scene of a bleak dystopian movie. Two kids in the back, one parent up front, and a smooth synthetic voice narrating, to everyone present, the lives of everyone present. "Later today, Maya has soccer." Maya, who has soccer, looks out the window. Nobody says anything, because the podcast is saying it for them.

The internet population caught what we caught. The reply that stuck came from Alex Hirsch, creator of Disney’s Animated series, Gravity Falls. It was seven poignant words: "What if you just talked to your children?" That was the entire rebuttal, and it traveled a great deal further than the thing it was rebutting. Altman's post drew somewhere around 9,600 likes. Hirsch's reply cleared 120,000. On the CEO's own platform, the crowd took a vote, and the crowd chose the small talk.

Now, we want to be fair here, because the easy thing is to dunk and move on. But we’re parents here at Permission and anyone who has done the 7:40 a.m. drive on four hours of sleep, refereeing a backseat dispute about who touched whom first, knows the exact fantasy of a button that handles the morning. That instinct isn't a character flaw. It's a Tuesday.

But this wasn't a one-off. Altman has been quietly auditioning AI for the co-parent role for a while now. On The Tonight Show in December 2025 he said he couldn't imagine having to "raise a newborn without ChatGPT" then added that people had managed the trick for a few hundred thousand years without it. Also, last year, in a podcast hosted by Andrew Mayne, Altman admitted that people might form “problematic parasocial relationships” to a chatbot. (You know, the one-sided kind that we usually reserve for celebrities we've never met.) He sees the hazards clearly. He's pitching the product anyway.

When visibility turns into vulnerability.

The reason parents flinched at the idea of carpooling with a chatbot for school drop off isn't that they're allergic to convenience. It's that the company making the offer is, right now, being sued by multiple families who say its chatbot played a role in their loved ones' spiraling delusions and, in the worst cases, their deaths. OpenAI says it is continually improving how its models handle sensitive conversations, and that work genuinely matters. But you can see the problem. "Let me into your calendar, your commute, and your kids personal details" is a big ask from anyone. It is a much bigger ask from a company currently explaining itself in court.

Trust isn't a feature you ship in the next update. It's something people hand you slowly, and take back all at once.

Here's where we should admit an interest. We build Permission on a belief that sounds boring until you sit with it: your data belongs to you. With Permission your kids’ browsing history doesn’t get shipped out to the open internet. Not to a model, not to a growth chart, not to whoever posts the next cool use case. And the closer AI creeps toward our kids (and it is creeping, because kids are already asking it everything) the more one question starts to outrank all the others:

Where is the line between parenting and outsourcing parenting?

Because "parenting tool" is doing a lot of quiet work in that phrase. A tool is a hammer. It lives in a drawer, it does one honest thing, and it does not ask to read your child's messages or move into the family calendar. When a company calls its chatbot a "parenting tool," it's worth asking, gently, which word they mean. The tool part, or the parenting part.

We happen to think AI can be genuinely, unglamorously useful to families. Not by doing the talking for you, but by handing you the context you'd otherwise miss instead of a thousand panicked notifications, and then getting out of the way so you can make the call. That's a real distinction, and it deserves its own piece.

So take this as Part One: the news, the flinch, and the reason the flinch is earned. In Part Two, we'll make the harder and more hopeful argument that you can let AI help you parent without completely handing over your family secrets. There is a version of this where the grown-ups stay in charge. We think it's the only version worth building.

For now, the seven best words anyone has offered on the whole affair still belong to Hirsch. So we'll give him the last one, too.

What if you just talked to your children?

‍