Summary
This specialty blog content is created for an online FinTech magazine targeting at start-up entrepreneurs. More than the writer's industry expertise, many hours are spent researching for experts' opinions on challenges to web 3.0 adoption in industry journals.
Result: A well-researched content that is thoroughly SEO-optimised and aligns with the client's style guide. This will help the client in building brand reputation and exposure on Google.

Have you watched the documentary The Social Dilemma? If not, I suggest you give it a go.
You see, while there are many takeaways from the film such as the destructive nature of social media to our mental health and self-perception, it was also able to raise awareness of the fact that big tech companies such as Meta have a monopoly over our user data.
Generally, big tech companies use our data to tailor the content we receive and boost our user experience. However, it has an unintended consequence—massive amounts of data are controlled by only a handful of tech companies. This could be troubling as they can utilise our data in a way that can undermine our security.
A 2022 report by the American Economic Liberties Project stated that big tech companies such as Apple, Google, Meta, Amazon, and Microsoft, have routinely endangered the security of their users to benefit their profit margins. For example, Facebook and Google have developed censoring tools to help the Chinese government curb free speech online.
Likewise, Fitbit, now owned by Google, has also leaked information about US military personnel and their movements around military bases. In addition, Apple and other big tech firms have been giving sensitive information to malicious actors who use it to target women and minors.
Given these examples, there is a need to curb their monopoly. Fortunately, the new iteration of the web—Web 3.0—may be the answer.
Web 3.0 or Web3 envisions a future in which control of data on the web is at the hands of the users. Unfortunately, since this technology is still in its infancy and given people’s propensity to avoid the unknown, there are various barriers it has to overcome before it can be adopted by the public.
In this article, I aim to give you a brief of what Web 3.0 is and the main challenges it faces before it can be widely implemented.
Web 3.0: What is it?
Web 3.0 is the next step in the evolution of the internet. It followed Web 1.0 and Web 2.0.
You see, Web 1.0 was the time when everything online was “read-only.”

Example of Web 1.0 (CNN Homepage in August 2000) Source: Web Archive
However, advancements in technologies such as Javascript, HTML5, and CSS3 have allowed users to not just read by also interact with data online. This ushered in Web 2.0. Examples of these are the social media applications that you use.

Instagram Landing Page
In Web 3.0, with the help of artificial intelligence and machine learning, data will be used, created, and stored in a decentralised way. As such, users have control over their own information without a third party acting as a mediator.
Key Features:
- Decentralised: Information is stored in multiple locations simultaneously. No single body has control over data.
- Open: It’s ‘open’ in the sense that it’s made with open-source software developed by an open and available community of developers and accomplished in full view of the public.
- Trustless: The network will allow participants to interact directly without going through an intermediary.
- Permissionless: Anyone can participate, whether users or providers, without the need to seek authorisation from a governing body.
- Ubiquitous: The Internet is available to anyone, at any time, in any location. With the boom of the Internet of Things (IoT), internet-connected devices will no longer be limited to computers and smartphones.
Main Challenges:
Despite the promise of having control, Web 3.0 faces fundamental challenges that need to be addressed.
1) Cost
Web 3.0 is built upon blockchains. These are ledgers of transactions that are immutable and indelible. Since its inception, blockchain was touted as costless. However, it is now turning out to be extremely expensive.
To be able to use blockchains, you need to have cryptocurrencies. To acquire one, you either buy some or you mine some yourself.
Each method is expensive.
For example, if you wish to buy 1 Bitcoin, the current exchange rate to USD is $18,923. However, if you wish to mine the coins yourself, you need to acquire high-end mining equipment.
Not only that, mining consumes so much energy. Based on Digiconomist’s report, the annual energy consumption for bitcoin mining is at 131.26 terawatt-hours, around as much energy as the country of Argentina consumes.

Example of Bitcoin Miner Source: Amazon
Given the high cost to access, the barrier to entry for many users is too high.
2) User Experience (UX) and User Interface (UI)

There is a steep learning curve that comes with using Web 3.0. In fact, your current web browser is incapable of supporting Web 3.0 applications and services. As such, you would need to add multiple browser extensions or plug-ins just for the most basic of benefits. This makes the UX and UI of web3 difficult to use.
There is also no streamlined “wallet” for your cryptocurrencies so you would need a slew of different wallets just to keep your tokens. For example, you will need a MetaMask wallet to keep your Ethereum coins while you would need a Phantom wallet to keep your Solana tokens.
With the complexity of how to use Web 3.0, the general public would be averse to using it in its current state.
3) Regulatory ambiguities
Despite decentralisation being the solution for the monopoly of big tech with user data, decentralisation also brings to the fore problems in regulations. As Web 3.0 scales up, monitoring and managing web3 would be much more difficult.
Various countries have differing takes on Web 3.0. For example, El-Salvador made Bitcoin (BTC) a legal tender in 2021. On the other hand. China has banned all cryptocurrency transactions in the country.
Given how some countries are more receptive to web3 than others, mainstream adoption may prove to be difficult.
4) Adaptability
To fully experience Web 3.0, we would need to invest in technology that has better processing power. As mentioned in the first challenge, this can deter people from adapting to Web 3.0.
In addition, with the rollout of Web 3.0, websites that used Web 1.0 or 2.0 will be outdated.
With this, existing businesses would be pressured to adapt so they won’t lose their market. While adapting to the changes in the market is a general trend for businesses, the price to upgrade to Web 3.0 is currently very steep.
5) Stability
With Web 3.0's reliance on cryptocurrencies, exchange rates need to be stabilised. Currently, prices can skyrocket or plummet instantly. This makes investing or using Web 3.0 services rather risky.
For example, when I started writing this piece, the current exchange rate of 1 Bitcoin (BTC) to USD is $19,309. After only a day, the exchange rate is at $18,872. That's a $437 difference!

BTC to USD Exchange Rate (Sept 2019-2022)
To gain the trust of people with Web 3.0, this problem should be addressed.
6) Scalability
Ethereum co-founder, Vitalik Buterin coined the term ‘scalability trilemma’ as a way to explain that between security, decentralisation, and stability, only two aspects can be given focus at a given point in time.
The scalability problem arose in 2016 when the game CryptoKitties went viral. The point of the game is to breed kitties and then exchange them with others.
Unfortunately, when the game became too popular, the Ethereum network, the blockchain in which the game was developed, choked. This led to the game being unplayable due to how expensive the ‘gas prices’ (transaction fees) came to be.
Given how many people would be using web 3.0 in the future, web 3.0 should be much more developed in order to prevent the occurrence of chokes and crashes.
7) Interoperability
In blockchains, interoperability means the ability of one blockchain to actively communicate with one another. Unfortunately, this is a problem that has yet to be resolved.
You see, multiple blockchains are used to address various problems. As such, each blockchain has a different underlying architecture that powers them. With this, it makes it difficult for both users and developers to use.
For example, for a developer to build on the Ethereum platform, they would need to learn the language ‘Solidity.’ On the other hand, if a developer wants to create something in Tezoz, they would need to learn ‘Michelson.’
The same is similar for users. If you buy a non-fungible token (NFT) in one blockchain, you cannot carry it over to another since they have different structures.

Sample of Ethereum NFT (Bored Ape NFT)
Basically, what you can use and buy on one platform cannot be used on another. Nevertheless, there have been actions to solve this issue such as creating ecosystems of blockchains. Examples of these are Polkadot and Cosmos.
8) Security
Despite being touted as secure, much like any technology, Web 3.0 has security risks. Some of these are novel cyber-attacks, misinformation, data manipulation, and lack of accountability.
- Novel cyber attacks: Threats that adapt to the current technology.
- Rug pulls: This happens when a social media influencer or a celebrity would hype a particular coin or NFT then they would take the funds before the coin’s value crashes.
- Cryptojacking: An attacker would install crypto mining software on a victim’s computer without their consent. Thus, being able to mine tokens without incurring huge costs.
- Ice phishing: This happens when an attacker convinces an unsuspecting victim to transfer their tokens to the attacker
- Misinformation: At this time, misinformation is already rampant. While big tech tries to prevent this by banning some accounts on their platform like the banning of former US President Donald Trump, doing so raises the issue of censorship. With decentralisation, it can beat censorship. However, the issue of misinformation will not be resolved.
- Data manipulation: Since Web 3.0 banks on the power of AI, how and what information that AI will consume will be crucial as it can make or break the rollout and acceptance of Web 3.0. We don’t want another AI like Tay who was trained by Microsoft to use Twitter. Yet, in less than 24 hours, it became sexist and racist.

Profile of Tay AI
- Lack of accountability: While Web 3.0 would improve upon the privacy concerns of the public, it could also make it difficult to make people accountable in the event of a crime.
Since the technology in Web 3.0 is still new (just under a decade), it is understandable that there are various barriers that it has to first overcome before it can be widely accepted.
Nevertheless, it stands to reason that despite its current problems, there are various possible benefits that can come from its adoption.
Possible benefits
- Secures our data: as have been mentioned above, this is a key benefit that we may enjoy once we accept Web 3.0
- Faster transactions: This benefit is already proven. According to a 2022 report by Chainanalysis, a blockchain data firm, transactions are much faster and much more convenient. Compared to going to banks or going through intermediaries, transactions are peer-to-peer and can be done anywhere, and at any time of the day.
- Better seller-customer relationship: without intermediaries, transactions will directly be between sellers and customers.
- Transparency: Since blockchains are ledgers with immutable and indelible data, all transactions are much more transparent.
- Personalised experience: With the use of AI, developers can better tailor what content is suited for you. This could also help marketers as they can better target their audiences.
- The semantic web: Machines will be able to decode meaning and emotions by analysing data. This will drive users to have a better experience. This can also help when a user has disabilities. An example of this is Apple’s Siri.
A special feature of Web 3.0 that futurists believe will be possible is the Spatial Web. Through the use of three-dimensional (3D) graphics the line between the physical world and the digital world will blur.
Think of movies like Ready Player One or Free Guy. They essentially believe that Web 3.0 will usher in that kind of world.
Final thoughts
Though it may take decades before we see the mainstream adoption of Web 3.0, one cannot argue that the future of the web looks bright. With the many possible benefits that we can enjoy, I cannot help but be intrigued and be excited for what is to come.
However, I am also wary about Web 3.0. as it has a lot of barriers it first has to overcome. Nevertheless, I do understand that no technology is perfect and that each of the technology we use now has gone through the same process of overcoming such barriers.
Web 3.0’s ability to address the above-mentioned barriers will define its future. Whether we will see it adopted or not remains to be seen.