What is Web 3.0 and how it relates to IoT?

April 24, 2024

In cutting-edge technology, two concepts have emerged as frontrunners shaping the future of digital interaction and connectivity: Web3 and the Internet of Things (IoT) are defined as next-generation technologies. Web3 champions the blockchain improving on the Internet, emphasizing decentralization and facilitating safer, self-regulated transactions. Meanwhile, IoT aims to boost how we integrate and communicate across the physical world through sensors and interconnected devices. While making this comparison, we touch on the meaning of Web3 technology, and its features.

What is Web3?

Web3, more commonly known as Web 3.0, is the future of the Internet. It refers to both infrastructure and applications with centrality being emphasized. Web3 employs smart and consistent data connection with applications and users based on semantics.

With web 3.0, everyday devices connected to the web will become more intelligent, providing better and more precise search results, and improving automation of the various technologies integration. Web3 provides personalized content and presentations based on user likes and tendencies with security and transparency, achievable through blockchain and cryptography.

Web3 enables users to acquire digital assets, which can be unique tokens, thus unlocking the possibility of new ownership and economic models. Web3 apps run on blockchain or distributed networks – enforcing a more secure and stable distributed system.

Web3 is presumed to meet a customized and interactive user experience with the aim of privacy, security, and the user's dominance over information and digital assets. This new version of the Internet understands data, provides better and more precise search results, and improves automation of the various technologies integration.

Web3 technologies

Technologies of web3

Semantic web

One of the most important facets of Web 3.0 is the semantic web, which strives to provide web technologies with the ability not only to generate, share, and connect content but to do so with understanding and significance, developing usage of relevant semantics. This innovation empowers users to interact with the information on the internet more conveniently and smoothly, whether managing or navigating through the huge online data. Based on the data which has been structured in a way that can be comprehensible to machines. It provides users with a richer, better, more satisfactory experience.

Artificial intelligence

As a part of the process of Web 3.0, AI remarkably supports the capabilities of web technologies. Besides semantics, AI technologies are equipped with a tool called NLP (Natural Language Processing) for computer understanding of information like people. AI-driven technologies are the vehicles that afford people quicker, more exact, and contextually in-line results. Moreover, AI continues to advance, offering personalized experiences by tailoring content and recommendations according to users' preferences and behaviors.

AI and IoT are a dynamic combination coming together to make tech smarter and more useful. IoT devices collect tons of data, and artificial intelligence is the brain that makes sense of it all. With the help of AI, IoT gadgets can self-adjust settings and predict when they need maintenance.

3D graphics

Web 3.0 is teeming with 3D graphics that improve the web's visual aspect as it will be different from what it was before. Besides usual graphics, 3D design makes the users experience life-like activities that cannot be limited to ordinary flat screens. Whether it is 3D graphics showcases for interactive products, virtual tours, gaming platforms, augmented reality, or electronic apps that have 3D, then the inclusion of graphics in the content creation enhances the content delivery by making it engaging and memorable.


Blockchain technology can reach out into many areas more than just data security and encryption. Through the use of decentralized ledger technology, blockchain creates a completely new way in which data is stored, validated, and verified. Besides securing user data by doing away with centralized control and misuse of the data by large multinational companies, blockchain not only enables transparency and immutability in transactions but also fosters trust.

Cryptographic technology helps in the secure recording of each transaction and links it to the previous one, which then cannot be altered going backward, and hence, forms a sequence of blocks that cannot be changed. It gives way to safe data management and accountability because the entire network has access to the same information.

Blockchain has the enormous potential to alter other industries aside from the field of finance and cryptocurrencies, namely supply chain management, healthcare, voting systems, and digital identity verification. The power to decide on data and participate in transparent, decentralized networks makes blockchain a conversant technology.

Edge computing

The edge computing model is a significant paradigm shift since it is changing how applications and data are processed and distributed over networks. Contrary to the common centralized cloud computing model, decentralized edge computing deploys the power of devices, located on the network edge, including laptops, home appliances, sensors, and self-driving cars. The distributed standpoint initiates the computation at the data source, minimizing latency and bandwidth utilization to increase the scalability and real-time response.

Edge devices unleashing collective computation prowess power up Web 3.0 to introduce a new distributed computing industry. As Web 3.0 develops, edge computing will signal the way toward the next generation of decentralized, intelligent, and responsive digital experiences.

Web3 security challenges with IoT

Security challenges of Web3 in IoT

When Web3 and the IoT come together, they offer exciting possibilities for a digital decentralized industry and more focused on users. This convergence also brings its fair share of security hurdles. Issues like scalability, privacy concerns, making different systems work together seamlessly, and navigating the regulatory ecosystem, pose significant challenges that need careful attention.


The scalability issue is a biggie, especially since blockchain networks, which power Web3, struggle to deal with the huge amounts of data churned out by IoT gadgets. One way to tackle this is by using smarter consensus algorithms, splitting up data into smaller bits (sharding), and handling some of the data processing off the main chain.


Privacy is still important, especially with IoT gadgets, even though Web3 gives us more control over our data. To keep our privacy intact, we can use fancy techniques like differential privacy, homomorphic encryption, and secure multi-party computing.


Regulation is a big deal, especially when it comes to data retention, security, and online business compliance. As Web3 and IoT continue to change the game, we need clear rules to handle it all. Governments, industry, and those in charge of standards development will have to come together and come up with a set of rules that will allow us to continue to innovate while keeping users and their data private.

How does blockchain decentralize IoT devices?

Web3 is based on blockchain, known for its financial benefits. However, its potential goes beyond just handling tokens and coins, it can securely record any data, making it a natural fit for IoT communications. By applying blockchain, we can solve some of the major problems of IoT. Currently, IoT data relies on intermediaries to vouch for its accuracy, but with blockchain, we can move to a peer-to-peer system where devices communicate directly. Such a system would allow devices to communicate with each other without the need for intermediaries.

Most IoT devices already use a public key infrastructure, which is quite convenient. For example, if we stored encrypted messages from these devices in a blockchain using a special cryptographic identifier, this would create a sort of reputation for each device. These records on the blockchain wouldn't just show whether a device has done well, they would also transparently record what it has been doing and who it has been communicating with.

Additionally, since the chronology on the blockchain is eternal, you can always go back and check. Each device retains its privacy, even if we can trace its communications by a unique string of letters and numbers. And if we extend encryption to all networks, it could have a serious impact on DDoS attacks. Such a two-key system will be a determining factor in the fight against hacking attempts.

Web3 adaptation into IoT

In the Web2 tech industry, many IoT companies hook customers with fancy gadgets and cool services, backed up by heavy marketing. But now, with Web3 technologies like DeFi (Decentralized finance), non-fungible tokens, and DAOs (Decentralized autonomous organizations) on the scene, there's a whole new set of tools for building IoT business models. These tools aren't just about making money, they can bring people closer to the action and have a positive impact on society.

Companies can enter the Web3 IoT scene on the NFT (Non-fungible token) bandwagon. By minting NFTs, they can showcase their IoT products on the blockchain and offer special perks to NFT holders, such as access to upcoming releases. Furthermore, they could sweeten the deal for customers by incentivizing them to share IoT data and earn extra passive income via DeFi platforms.

In addition, adaptation involves moving from a centralized infrastructure to a decentralized, peer-to-peer network supported by blockchain technology. This transition allows IoT devices to communicate directly with each other without intermediaries, improving reliability and security through consensus mechanisms similar to cryptocurrencies. By adopting Web3, IoT companies can open up opportunities for data ownership, monetization, and automation through smart contracts, ultimately changing the way they operate and interact with users and devices.

Digital transformation with Web3 into IoT

In Web2, IoT applications typically rely on centralized cloud systems or a combination of cloud and edge computing. However, in Web3, it's decentralized blockchain networks powered by cryptocurrency tokens. So, if Web2 IoT companies want to keep up with the times, they will have to rethink their digital structure. They may consider a phased approach to transitioning to Web3 to keep things smooth and minimize any major changes to the way they do business. Let’s look into the steps to undergo digital transformation:

1. Define technology

The first step is the Web2 IoT company need to determine which Web3 technology suits them best (e.g. DeFi, NFT or DAO). They also need to decide on a management plan and how the tokenisation system will work to attract customers. Then they need to put this plan into action by creating a decentralised application on the blockchain.

2. Initial hybrid integration

In the next step, the company should connect its existing Web2 IoT setup to the decentralized application using a decentralised blockchain oracle network. With this combo setup, you can turn your regular Web2 IoT company into a Web3 player without having to overhaul your entire system or deal with a lot of digital retooling.

3. New business model

In the third phase, it is in turn to augment the user interface with Web3 features. In this stage, the organization will be running a hybrid Web2/Web3 IoT deployment for a while. This will give the opportunity to gather customer feedback, which will be very useful in determining how well new Web3-centric design works.

Web3 vs. IoT comparison

Web3 and IoT are two digital improvement aspects that are being talked about. Although they both help to organize information, they function in distinct manners and have special components.


Web3 is the next generation of the World Wide Web, which moves beyond centralized control and works on the idea of putting the users in the driving seat of their data. Greater emphasis is placed on data privacy, security, and trustworthiness. it is built upon the principles of openness, trustlessness, permissionless ness, and being public as well as private, the source code for it being open source and no need for intermediaries between the users.


IoT, however, is a network of physical objects equipped with sensors and software for collecting and exchanging information between other digital devices. It embodies connectivity, intelligence, data, things, action, and a system of mutuality. The IoT elements collaborate and transfer data for analysis with control reactions accordingly.

The low power and connectivity of the IoT technology through sensor control and different types of internet protocols are the main factors behind the rise of the IoT. It is the AI that helps IoT devices perform Natural language processing (NLP) functions, which makes it the AI that IoT cannot do without.

Comparison table

Web3 IoT
Core technologies Blockchain, decentralized networks, smart contracts, cryptocurrencies Sensors, smart systems, communication hardware
Key characteristics Decentralization, privacy, enhanced data security Connecting, interacting, real-time data exchange
Focus Enhancing user privacy and control over data Connecting physical devices to the Internet and operating with data
Security concerns Focuses on protecting data and user identity through encryption and decentralization Security devices, ensuring privacy and integrity of the vast amount of data generated


In conclusion, Web 3.0 and IoT represent two rapidly evolving technologies that, while distinct in their primary functions and core technologies, share the potential to transform our digital and physical worlds radically. Web 3.0, with its foundation in blockchain, decentralization, and semantic web technologies, aims to create a more secure, user-controlled internet experience, emphasizing privacy, data sovereignty, and decentralized governance. On the other hand, IoT focuses on enhancing the connectivity and intelligence of physical devices, fostering environments where data collection and exchange facilitate unprecedented levels of automation, efficiency, and convenience in both personal and industrial applications. While Web 3.0 seeks to overhaul the internet infrastructure to redistribute power from centralized authorities to the users, IoT aspires to make the world smarter and more responsive.