The Singapore Law Gazette

Explainer: Web 3.0 for Lawyers

Is “Web 3.0” an overhyped buzzword? Why do lawyers need to know what Web 3.0 is?

In a nutshell, Web 3.0 promises to lead the next wave of technological innovations that can present new opportunities for law practices and lawyers. The short Q&A below helps to break down what Web 3.0 is about.

Q: Why is it called Web 3.0?

A: To fully comprehend what Web 3.0 is, we look to its predecessors Web 1.0 and Web 2.0.

Web 1.0 – “Read-only”: Refers to the first stage of development of the “World Wide Web”, where the internet especially in the 1980s and early-1990s only allowed for users to merely read-off multiple web pages.¹Gan, Wensheng & Ye, Zhenqiang & Shicheng, Wan & Yu, Philip. (2023). Web 3.0: The Future of Internet. 10.1145/3543873.3587583.

Web 2.0 – “Read and write”: Refers to the Internet that we know of today, which started to evolve in the early 2000s. Websites are no longer just static pages; they are interactive spaces where you can create and share content on Facebook, Twitter, and YouTube. User data is collected and owned by the respective platforms and usually used to generate revenue.²Ibid. A downside of Web 2.0 is that it relies on centralised servers and systems managed by major companies for data storage, which poses risks of data and privacy breaches³Domazet, Ervin & Rahmani, Damir & Mechkaroska, Daniela. (2023). Blockchain Empowering Web 3.0: Decentralized Trust and Secure Transactions for the Future Internet. 10.1109/TELFOR59449.2023.10372778. and potential service outages.

Web 3.0 – “Read, write and own”: Refers to the upcoming era and the alternative version of the Internet. Though there is no universal definition to date, Web 3.0 generally refers to the removal of middle-men companies. For example, the bank does not need to be engaged to transfer monies to others as this can be done by users themselves through e-wallets. By removing middle-men companies, it empowers users to retain ownership of their personal data.⁴What is Web3? https://hbr.org/2022/05/what-is-web3

Q: What does giving users more control of their data mean?

A: It will contribute to a “decentralised” Internet. For example, instead of popular search engines or social media platforms monopolising your preferences to advertise services, every user may post advertisements by themselves. If one of the advertisement malfunctions, all the other advertisements in the network will continue to be displayed as each advertisement will be powered by its own source. This is unlike the centralised Web today, where services would be affected if the servers managed by middle-men companies fail.

Q: What is another advantage of Web 3.0?

A: It allows for anonymous single-sign-on.⁵The hype around Web3 and how it can transform the internet. World Economic Forum. (n.d.). https://www.weforum.org/agenda/2022/02/web3-transform-the-internet/ There will be no need to save individual passwords for each website you consume as there will be an anonymous single-sign on across all websites and accounts. Logins and sales will not require you to lose your control over sensitive personal data. For example, if you produce digital art and sell it as an NFT (non-fungible token),⁶What is NFT? – non-fungible tokens explained – AWS. Non-Fungible Tokens (NFTs) Explained. (n.d.). https://aws.amazon.com/blockchain/nfts-explained/ the buyer will not need to know who you are or verify your identity before the purchase.

Q: Is there a technology that powers Web 3.0?

A: Yes, blockchain technology powers Web 3.0. A blockchain is akin to a digital notebook that records data. When a new “page” of data is added to one notebook, all the other notebooks on the network of computers around the world would follow suit. This allows for both transparency and security of data, as everyone will be able to see every activity and the data created will not be changeable.

Q: How can law practices leverage on Web 3.0?

A: The benefits of Web 3.0 extend beyond commercialising the technology. Law practices may leverage on Web 3.0 and blockchain technology by improving the delivery of legal services through, for example, creating tamper-proof records to improve evidence management and verify or enforce compliance with regulatory requirements.⁷Ankita. (2023). Blockchain Technology in Law: How It Impacts the Legal Profession. Matter Suite. https://www.mattersuite.com/blog/blockchain-technology-in-legal-industry/

Q: Will Web 3.0 transform the law?

A: Legal challenges are bound to follow with transformative technologies such as Web 3.0. The complex nature of Web 3.0 challenges norms, introduces complexities and raises new legal issues in areas such as data privacy, rights of ownership, intellectual property rights and regulatory compliance.

Q: How can lawyers prepare for a Web 3.0 world?

A: To find out more about Web 3.0 and its opportunities for lawyers, read this Singapore Law Gazette article: Emerging Practice Areas and Technology in Legal Services. If you are looking for a primer on legal technology, check out the Law Society’s Guide on the Adoption of LegalTech for Law Practices for a high-level introduction to the current state of legal technology and issues to consider in the adoption and funding of legal technology.