Unit 3 : Technology Use-Cases

1. Write the key characteristics of Web 1.0 and Web 2.0.

Web 1.0 – The First Generation of the Web:

Static Content: Mostly read-only websites with static HTML pages.

Centralized Structure: Built as a centralized system, extending ideas from

DARPA's ARPANET.

Fat Client Setup (Before Web): Business PCs had individual copies of
applications and data, leading to high synchronization costs.

Content Consumption: Users could view content but not interact or

contribute much.

Tools: Browsers like Netscape were used to access and render information.

Limited Interaction: Websites served content but didn’t allow much user
feedback or collaboration.

Web 2.0 – The Interactive Web:

Dynamic Content: Content is interactive, user-generated, and updated in
real-time.

Massive Data Growth: The web began growing rapidly—especially surface

web content since 2012.

Decentralized Usage: Though still managed through centralized platforms,

applications began to communicate and store data online.

User Participation: Users could now contribute content (e.g., through

blogs, social media).

Centralized Intermediaries: Companies like Google emerged as powerful

intermediaries, offering search, storage, messaging, and traffic routing.

Application Integration: Programs could connect through APIs, enabling

rich and scalable web services.

Unit 3 : Technology Use-Cases 1

 2. Explain the InterPlanetary File System (IPFS) and its architecture.

What is IPFS?
IPFS (InterPlanetary File System) is a peer-to-peer (P2P) protocol designed
for storing, accessing, and sharing files in a decentralized manner. It provides
a distributed alternative to traditional web protocols like HTTP/HTTPS.

Key Features:
Content-addressed Storage: Every file is given a unique cryptographic
hash (a content address). This makes data immutable and tamper-proof.

Decentralization: No central server. Data is spread across multiple nodes,

similar to how BitTorrent works.

Distributed Hash Table (DHT): Used to locate which peer (node) has which
file, enabling efficient file lookup and retrieval.

Resilient and Redundant: Because many users can host the same file,
availability remains high even if some nodes go offline.

IPFS Architecture:
1. Content-Based Addressing:

Files are not located using URLs (like in HTTP), but by hashes of their
content.

Example: Instead of example.com/file.jpg , IPFS uses /ipfs/<hash> .

2. Distributed Hash Table (DHT):

Peers store mappings of content hashes to node addresses.

Enables quick search of “who has what content.”

3. Data Storage and Exchange:

Files are split into small blocks and stored across different nodes.

Unit 3 : Technology Use-Cases 2

 Uses Merkle DAGs (Directed Acyclic Graphs) to link blocks together
securely.

4. Peer-to-Peer Network:

Any peer can request and serve content.

The system is self-healing: if a node goes down, others can still serve
the file.

5. Versioning & Linking:

Like Git, IPFS tracks versions of files using cryptographic links.

Files and directories can be versioned and updated seamlessly.

How is IPFS Different from HTTP?

Feature HTTP IPFS

Location-based
Addressing Content-based ( /ipfs/<hash> )
( example.com/file )

Centralization Central servers Decentralized P2P nodes

Multiple sources serve the same

Availability One server fails = data loss
data

Speed Often slower and bottlenecked Faster with nearby peers

Trust Depends on trusted servers Cryptographically verified content

Conclusion:
IPFS is a next-gen file sharing protocol that brings the principles of
decentralization, integrity, and high availability to how we store and access
data. It’s a foundational technology for Web3, enabling trustless and distributed
applications.

3. Explain Storj and how it enables decentralized cloud storage.

Unit 3 : Technology Use-Cases 3

 Storj is a decentralized cloud storage platform that allows users to store their
data securely across a distributed network. It transforms unused hard drive
space from computers around the world into a shared, efficient storage system.

How Storj Works:

1. Renting Storage Space:

Anyone can run Storj software and rent out their unused disk space.

Users who want to store files use this global network instead of relying
on centralized services like Google Drive or Dropbox.

2. Decentralized Protocol:

Storj uses a peer-to-peer protocol to manage:

Storage contracts

Data transfer

Payment for services

Integrity and availability checks

3. Autonomous Peers:

Each node (peer) in the network is an independent agent.

These nodes can negotiate contracts, verify data, and receive

payments automatically, with minimal human involvement.

4. Encrypted Sharding:

Files are split into small pieces called shards.

Each shard is encrypted before being distributed to various nodes.

This ensures privacy, security, and redundancy—even if someone

intercepts a shard, they cannot read the data.

5. Data Retrieval:

When a user wants to access their file, the protocol retrieves the
necessary shards and reassembles them.

Built-in integrity checks ensure the data is correct and has not been
tampered with.

Unit 3 : Technology Use-Cases 4

 Key Features of Storj:

Feature Description

No central server—data is stored across many independent

Decentralization
nodes.

Encryption Files are encrypted before sharding, protecting user privacy.

Files are broken into small encrypted parts (shards) to improve

Sharding
performance and security.

Resilience & Redundant storage ensures high availability even if some nodes
Availability go offline.

Storj uses tokens (STORJ) to pay hosts for their storage space
Payment System
and bandwidth.

Benefits of Storj:
Lower cost than traditional cloud providers.

Greater privacy and security, as data is encrypted and distributed.

More reliable, due to its global, redundant architecture.

Eco-friendly, using existing hardware instead of massive data centers.

Conclusion:
Storj reimagines cloud storage by using a decentralized, secure, and cost-
effective network powered by community-run nodes. It enables users to store
their files safely while rewarding others for sharing unused disk space—a win-
win for privacy, efficiency, and innovation.

4. Describe the evolution from Web 1.0 to Web 3.0 with examples.

🌐 Evolution from Web 1.0 to Web 3.0

Web Version Description Key Features Examples

Unit 3 : Technology Use-Cases 5

 The “Static Web”: The 🔹 Static pages🔹 📄 Early websites
first generation of the Read-only🔹 like Yahoo!
Web 1.0 (1990s
– early 2000s)
internet. Mostly read- Centralized servers 🔹 Directory,
only content, limited No user-generated GeoCities,
user interaction. content Britannica.com

The “Social Web”:

🔹 Dynamic content🔹 💬YouTube,

Focus on user-
Facebook,
generated content,
Web 2.0 (early interactivity, and Social media🔹 Cloud
computing🔹 Mobile
Instagram,
2000s – collaboration.
apps🔹 Centralized
Twitter,
present) Platforms became
Wikipedia, Google
central hubs for platforms
Docs
sharing and
communication.

The “Decentralized
Web”: Powered by 🔹 Decentralization🔹 🧠 Ethereum,
blockchain, AI, Trustless systems🔹
IPFS, Filecoin,
Web 3.0 semantic web, and Blockchain-based
apps (dApps)🔹
Uniswap, Brave
(emerging now) decentralization.
Semantic search🔹 AI
browser,
Users control their own
Decentraland
data and interact peer- and ML integration
to-peer.

🔁 Key Differences:
Web 1.0: Read →

Web 2.0: Read + Write →

Web 3.0: Read + Write + Own

📌 Example Progression:
Web 1.0: You read articles on a static site like Britannica.com.

Web 2.0: You write a blog on Medium or share videos on YouTube.

Web 3.0: You publish content on a decentralized platform like Mirror.xyz

and get paid directly in crypto tokens.

✅ Summary:
Web 1.0 laid the foundation, Web 2.0 made the web interactive and social, and
Web 3.0 is making it decentralized, secure, and user-owned.

Unit 3 : Technology Use-Cases 6

 5. Write the difference between HTTP and IPFS in terms of content

📡Delivery
Difference Between HTTP and IPFS in Terms of Content

HTTP (HyperText Transfer IPFS (InterPlanetary File

Feature
Protocol) System)

Decentralized peer-to-peer
Type Centralized client-server protocol
protocol

Data is requested using a

Data is requested based on
Data Access cryptographic hash (content
location (e.g., URL of a server)
address)

Data is not persistent; if server

Data is persistent; available as
Persistence goes down, content becomes
long as any peer has a copy
unavailable

Less efficient; relies on a single More efficient; fetches from

Efficiency
server for multiple requests closest available peer

Hosting Requires a central server or third- No central server needed; any

Requirement party hosting service node can host data

Higher bandwidth via

Limited bandwidth due to server
Bandwidth distributed downloads from
load
multiple nodes

Failure Vulnerable to server failures and Fault-tolerant due to

Resistance broken links distributed copies

Well-established and widely used Still growing and less adopted

Popularity
standard globally

Built-in support on almost all web Requires IPFS client or access

Usage Access
browsers and devices through IPFS gateways

✅ Summary:
HTTP = Centralized, location-based content delivery (e.g.,
https://example.com/image.jpg )

Unit 3 : Technology Use-Cases 7

 IPFS = Decentralized, content-based delivery using a unique hash (e.g.,
ipfs://QmHashValue )

IPFS aims to make the web faster, safer, and more resilient by shifting from
server-based access to peer-based content sharing.

6. Describe Swarm as a decentralized storage system and its core

functionalities.

🐝 Swarm: A Decentralized Storage System

Swarm is a distributed storage and content distribution platform that acts as
a native base-layer service in the Ethereum Web3 stack. It is designed to store
and serve:

Ethereum’s public records

Decentralized applications (dApps) and their data

General-purpose blockchain data

It supports the Web 3.0 vision of a decentralized, resilient internet by offering

an alternative to centralized storage systems.

⚙️ Core Functionalities of Swarm

Functionality Description

Decentralized Data is stored across a peer-to-peer network rather than centralized

Storage servers, ensuring decentralization and resilience.

Ensures multiple copies of the data exist in the network, increasing

Redundancy
data availability and reducing the chance of loss.

Low Latency Designed for fast access to data, with content caching and auto-
Retrieval scaling features.

Fault Swarm can continue functioning even when individual nodes

Tolerance disconnect or go offline.

Its distributed nature guarantees continuous access to stored content

Zero Downtime
without a single point of failure.

Unit 3 : Technology Use-Cases 8

 Censorship Data cannot be easily taken down or blocked by any authority, making
Resistance it ideal for free and open information sharing.

Permanent Swarm supports versioned archives of content that can be stored

Archival potentially forever, ideal for immutable data records.

✅ Swarm vs IPFS
Both Swarm and IPFS are decentralized storage protocols aiming to replace
traditional Web 2.0 data layers.

They both offer features like distributed document storage, auto-scaling,

reliability, and censorship resistance.

However, Swarm is more tightly integrated with the Ethereum ecosystem,

serving as a core component of its infrastructure.

7. Discuss the challenges in transitioning from Web 2.0 to Web 3.0.

🚧 Challenges in Transitioning from Web 2.0 to Web 3.0

Transitioning from Web 2.0 (centralized, user-generated web) to Web 3.0
(decentralized, semantic, and blockchain-powered web) presents several
technical, economic, and social challenges:

1. Scalability Issues
Web 3.0 platforms, especially blockchain-based systems, struggle with
scalability.

Blockchains like Ethereum have limited transaction throughput, leading to

network congestion and high gas fees.

2. User Experience (UX)

Current Web 3.0 apps (dApps) often have complex interfaces.

They require wallets, private key management, and crypto knowledge,

making them less user-friendly for non-tech-savvy users.

Unit 3 : Technology Use-Cases 9

 3. Interoperability
Lack of standardization and compatibility between different blockchains
and protocols.

Data and assets often cannot move freely between ecosystems like
Ethereum, Solana, Polkadot, etc.

4. Regulatory Uncertainty
Governments and regulators are still trying to define how to treat
cryptocurrencies, smart contracts, and tokenized assets.

Legal uncertainty can discourage mainstream adoption and investment.

5. Data Privacy vs Transparency

Web 3.0 promotes transparency, but data on public blockchains is visible
to everyone.

Balancing transparency with user privacy and data protection is a complex

challenge.

6. Energy Consumption
Many early Web 3.0 systems (like Bitcoin) use energy-intensive Proof of
Work.

There’s growing concern over the environmental impact, although newer

systems (e.g., Ethereum 2.0) use Proof of Stake to reduce energy usage.

7. Digital Identity Management

Web 3.0 lacks a unified digital identity system.

Users must manage multiple wallets and credentials, increasing

complexity and risk.

8. Adoption and Awareness

The general public is still largely unaware of the benefits and workings of
Web 3.0.

Unit 3 : Technology Use-Cases 10

 Education, awareness, and trust-building are needed for mass adoption.

9. Security Concerns
Web 3.0 apps and smart contracts are vulnerable to hacks and exploits.

Smart contracts, once deployed, are immutable, making bugs difficult to

fix.

🔚 Conclusion
Despite its promise, Web 3.0 faces multiple hurdles on the path to replacing
Web 2.0. Addressing these challenges requires collaboration among
developers, regulators, businesses, and users to build a more open, secure,
and decentralized internet.

10. What are the advantages of using distributed storage systems over
centralized cloud services?

✅Centralized
Advantages of Using Distributed Storage Systems over
Cloud Services
Distributed storage systems, such as IPFS, Storj, and Swarm, offer several
benefits compared to traditional centralized cloud services (e.g., Google Drive,
AWS S3, Dropbox):

1. Decentralization
Data is not stored on a single central server.

Eliminates a single point of failure, improving resilience and fault tolerance.

2. Enhanced Privacy and Security

Files are often encrypted and split into shards.

Only users with the correct decryption key can access the data, increasing
data security.

Unit 3 : Technology Use-Cases 11

 3. Improved Data Availability
Data is replicated across multiple nodes.

Even if some nodes go offline, the data remains accessible from others.

4. Censorship Resistance
No central authority can control or remove content.

Useful in environments with restricted internet freedom.

5. Cost Efficiency
Users can rent out unused storage space (e.g., in Storj), leading to a more
competitive pricing model.

Reduces dependency on large infrastructure providers.

6. Scalability
As more nodes join the network, storage capacity and bandwidth increase
automatically.

Supports rapid global expansion without the need for physical

infrastructure.

7. Data Integrity
Uses cryptographic hashes to ensure data has not been tampered with.

Any unauthorized change can be easily detected.

🔚 Conclusion
Distributed storage systems provide greater control, security, and resilience
for users. They align well with the Web 3.0 vision of a trustless, decentralized
internet, making them a promising alternative to centralized cloud platforms.

Unit 3 : Technology Use-Cases 12

 11. Explain Golem and its working principle in distributed computing.

✅ Golem and Its Working Principle in Distributed Computing

Golem is a decentralized platform that functions as a global supercomputer,
enabling users to buy and sell computing power through a peer-to-peer
network. It allows anyone with idle computing resources to share them with
others, creating a marketplace for computation.

🔧 Working Principle of Golem

Golem operates through a decentralized network where tasks are distributed
among various nodes (computers), removing the need for centralized cloud
platforms like AWS or Google Cloud.

🧩 Key Steps in Golem’s Task Execution

1. Task Request

A requestor (user) submits a computational task (e.g., 3D rendering, AI

model training) on the Golem network.

2. Broadcasting the Demand

The task is broadcast to the network with specifications like required

CPU, RAM, or GPU.

3. Providers Respond

Providers (users with spare computing resources) offer their services,

stating their capabilities.

4. Matching Supply and Demand

The Golem system matches the requestor's task requirements with the
provider’s capabilities.

5. Negotiation

Both parties agree on the terms of service (cost, time, resources).

6. Task Execution

The input files are securely transferred to the provider.

Unit 3 : Technology Use-Cases 13

 The provider executes the task locally.

7. Result Delivery

Once done, the output files are sent back to the requestor.

8. Payment

The provider is paid in Golem Token (GNT) for their service.

💡 Use Case Example

Instead of using a cloud service to render a complex video, a developer can
use Golem to tap into dozens of individual providers’ machines around the
world for faster and cheaper processing.

🔚 Conclusion
Golem revolutionizes computing by turning underused devices into on-demand
processing units, making decentralized distributed computing accessible,
efficient, and cost-effective.

12. What are the distinguishing features of Web 3.0 compared to its
predecessors?

🌐 1. Web 1.0 – “Read-Only Web” (Static)

Time Period: Early 1990s – early 2000s

Main Feature: Static websites with minimal interaction

Content: Created and controlled by a few; users could only read

Technology Used: HTML, static files, server-side rendering

Examples: Early websites like personal blogs, Yahoo directory

🌍 2. Web 2.0 – “Read-Write Web” (Interactive)

Time Period: 2004 onwards

Unit 3 : Technology Use-Cases 14

 Main Feature: Dynamic and interactive user-generated content

Content: Users can read and write, contribute, and interact

Technology Used: JavaScript, AJAX, social platforms, centralized

databases

Examples: Facebook, YouTube, Twitter, Wikipedia

Monetization: Platforms monetized user data and content

🌎Intelligent)
3. Web 3.0 – “Read-Write-Own Web” (Decentralized &

Time Period: Emerging since 2014 – present

Main Features:

✅ Decentralization: No central authority (powered by blockchain)

✅ Data Ownership: Users control their own data
✅ Interoperability: Apps and platforms work seamlessly across
systems

✅ Semantic Web: Machines understand and interpret data contextually

✅ AI and Machine Learning: Intelligent automation and personalization
✅ Trustless Transactions: Smart contracts enable secure peer-to-peer
interaction

Technology Used: Blockchain, IPFS, Ethereum, NFTs, smart contracts

Examples: MetaMask, Uniswap, Filecoin, Decentraland, OpenSea

📊 Summary Table:
Feature Web 1.0 Web 2.0 Web 3.0

Reader, Contributor &

User Role Reader Reader & Contributor
Owner

Dynamic, User-
Content Static Decentralized, Tokenized
generated

Control Centralized Centralized platforms Decentralized networks

Data
Site owners Platforms Users
Ownership

Unit 3 : Technology Use-Cases 15

 Blockchain, AI, IPFS, Smart
Tech Examples HTML, HTTP AJAX, JS, APIs
Contracts

Ads, data
Revenue Model Ads (basic) Tokens, crypto incentives
monetization

Unit 3 : Technology Use-Cases 16