What is Web3? The Next Evolution of the Internet

You’ve probably heard the term Web3 thrown around alongside crypto, NFTs, and DeFi. But what does it actually mean? Web3 represents a vision for a new kind of internet - one that’s decentralized, user-owned, and built on blockchain technology.

In this post, we’ll break down what Web3 is, how it differs from earlier versions of the web, and why it matters.

Web1 vs. Web2 vs. Web3

• Web1 (1990s–early 2000s): Static websites with basic content. Read-only internet.

• Web2 (2000s–today): Interactive, user-generated content dominated by centralized platforms (Google, Facebook, YouTube).

• Web3 (emerging): A decentralized web where users own their data, control access, and interact through blockchain-based apps.

Core Principles of Web3

1. Decentralization: No single company controls the platform

2. Ownership: Users control their data, assets, and identities

3. Open-source protocols: Web3 apps (dApps) are transparent and often community-governed

4. Token economies: Incentives through crypto tokens to reward participation

Examples of Web3 Applications

• DeFi platforms (Uniswap, Aave): Financial tools without intermediaries

• NFT marketplaces (OpenSea, Rarible): Buy and sell digital assets

• Decentralized storage (IPFS, Filecoin): Store files without central servers

• DAO platforms (Aragon, Snapshot): Community-led decision-making

• Web3 browsers and wallets (Brave, MetaMask): Access the decentralized web

Why Web3 Matters

Web3 puts power back in the hands of users. Instead of relying on big tech companies to manage your data, identity, and financial tools, you interact directly with protocols that are open, programmable, and censorship-resistant. This can lead to:

A. Better privacy and security

B. New economic opportunities

C. More democratic governance of online platforms

Challenges Ahead

• Scalability: Blockchain networks still face limitations on speed and cost

• User experience: Web3 tools are often harder to use than their Web2 counterparts

• Regulation: Governments are still figuring out how to approach Web3

• Adoption: Most people are not yet familiar with decentralized tools

Web3 is still in its early days, but it’s already reshaping the internet landscape. As the technology matures, expect more innovation - and more opportunities - for those who take the time to understand it.

---

Up next: Let’s talk about DAOs - Decentralized Autonomous Organizations - and how they’re changing how groups operate online.