The discussion around the evolution of the internet has centered on what is being termed “Web3,” a new phase built on the principles of decentralization, blockchain technology and digital ownership. Unlike its predecessor, Web 2.0, which is dominated by a few large tech companies, Web3 envisions a digital landscape where users, including the younger generation, could have greater control over their data and online identity.
But what exactly is Web3 and why is this concept gaining traction among Filipinos?
Web3: A primer on the technology
At its core, Web3 is a proposed evolution of the World Wide Web, leveraging blockchain technology. Blockchain is a decentralized, tamper-proof digital ledger that records transactions or data across a network of computers. This is the foundational technology that powers systems where control and data are distributed, rather than being held by a single central entity.
Web3 is often discussed alongside concepts such as:
Decentralized Applications (dApps): Software programs that operate on a blockchain or peer-to-peer network, designed to be more secure and transparent.
Digital Assets (including cryptocurrencies and Non-Fungible Tokens or NFTs): These are items of verifiable digital value. Cryptocurrencies are often described as internet-native currency, while NFTs represent unique digital ownership proofs, whether for art, in-game items, or other virtual collectibles.
The primary shift is from being a passive user on a platform to becoming a participant who can hold verifiable ownership of their digital presence and information.
The Philippines and Web3
The Philippines, with its high internet penetration and early engagement with digital technologies like mobile payments and play-to-earn gaming, is positioned as a significant adopter of these new concepts. The country is seeing a rise in educational efforts to bridge the knowledge gap between the current internet (Web 2.0) and the decentralized models of the future.
This transition involves understanding the technology not just as a financial tool, but as a platform for new forms of software development and creative work. For instance, initiatives are emerging locally to cultivate skills in blockchain development. One such example is MonkeysDev in Cebu, founded by developers and enthusiasts from the Xode Foundation, which serves as a knowledge and workspace hub. Such local initiatives are crucial for empowering Filipinos to participate in building the next generation of the internet, focusing on skills, talent and innovation.
Navigating the challenges and risks
While the potential for technological innovation is evident, it is crucial to maintain a grounded perspective, particularly when discussing associated assets.
The Bangko Sentral ng Pilipinas and the Securities and Exchange Commission (SEC) in the Philippines have established regulatory frameworks for Virtual Asset Service Providers to ensure consumer protection and guard against money laundering. The SEC, in particular, continues to provide guidance to distinguish between legitimate technological applications and unregulated financial offerings that may pose risks.
It is important to remember that digital assets and cryptocurrencies are volatile and not considered legal tender in the Philippines. As with any emerging technology, risks are inherent, and the public is advised to thoroughly explore and understand the underlying technology and regulatory advisories before engaging with any related financial systems.
For the Filipino youth, being “ready” for this digital shift means focusing on educational literacy — understanding the mechanics of blockchain, coding and the concepts of digital ownership and privacy—which are transferable skills for a technology-driven world. The focus remains on informed participation and skills development, ensuring that Filipinos become thoughtful builders and informed users, not merely speculators, in the evolving digital dynasty.