What Is Web3?
Also known as: Web 3.0, Decentralized Web
In short
Web3 is a vision of the internet based on blockchain, cryptocurrency and smart contracts, which aims to give users direct ownership and control over their data, digital assets and applications without depending on centralized platforms.
The term was coined in 2014 by Gavin Wood, one of Ethereum's co-founders. The evolution of the web is usually described in three stages: Web1 consists mostly of static, read-only pages, while Web2 consists of social networks where users create content but data is concentrated on large platforms. Web3 adds ownership alongside reading and writing; users manage their identity and assets with their own wallets.
In practice, Web3 is an umbrella concept covering decentralized applications (DApps), DeFi protocols, NFTs, DAOs and infrastructure such as decentralized storage. For example, instead of creating an account with an email and password, a user can connect to an application with their wallet. Assets earned in the application are held at the user's own address on the blockchain rather than in the platform's database, and can also be used in other applications.
The Web3 vision is also subject to criticism. The complexity of the user experience, the risk of losing private keys, scams and the fact that many applications in practice depend on centralized infrastructure providers are frequently raised. In addition, the concentration of token distribution among early investors can weaken the claim of decentralization.
Last updated: · This content is for information purposes only and is not investment advice.