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Introduction to Web3

Web3—also known as Web 3.0—is the vision for the next generation of the internet. It represents a shift from the current, centralized web (Web2) to a decentralized model that emphasizes user ownership, privacy, and direct peer-to-peer interactions.

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How the Web Has Evolved

EraDatesDescription
Web11989–2004”Read-only” web: Static, informational websites with minimal interactivity. Users could only consume content, not contribute or interact. Example sites: Yahoo!, Netscape, early WebMD.
Web22004–Present”Read-write” web: Interactive and social web. Users can create, share, and interact through platforms like Facebook, YouTube, and Twitter. Centralized control by major tech companies.
Web32021–Emerging”Read-write-own” web: Decentralized, user-owned internet powered by blockchain, cryptocurrencies, and smart contracts. Focuses on privacy, transparency, and peer-to-peer interactions. Still in early development.
The story of the internet’s evolution can be told in three major chapters. The first era, known as Web1 (1989–2004), was the age of the “read-only” web. During this time, the internet was made up of static, informational websites with minimal interactivity. Users could browse and consume content, but there was little opportunity to contribute or interact. Think of early sites like Yahoo!, Netscape, and WebMD—useful for finding information, but not for sharing your own voice. Then came Web2, beginning around 2004 and continuing to the present day. This was the dawn of the “read-write” web, where the internet became interactive and social. Platforms like Facebook, YouTube, and Twitter empowered users to create, share, and engage with content on a massive scale. However, this new interactivity came with a tradeoff: most of the web’s activity became concentrated on a handful of centralized platforms, giving major tech companies significant control over data, content, and user experience. Now, we are witnessing the emergence of Web3 (2021–Emerging), the “read-write-own” era. Web3 is powered by blockchain technology, cryptocurrencies, and smart contracts. Its vision is a decentralized, user-owned internet that prioritizes privacy, transparency, and direct peer-to-peer interactions. Web3 is in a rapidly growing boom, and it promises to shift power away from centralized authorities and put ownership and control back in the hands of users.

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What Makes Web3 Different?

Web3 stands apart from previous generations of the internet by fundamentally rethinking how digital systems are structured and who holds power. Instead of relying on centralized companies to manage data, identity, and transactions, Web3 leverages decentralized networks and cryptography to give users direct control. This new paradigm enables true ownership of digital assets, transparent and open operations, and the ability for anyone to participate without permission from a central authority. The result is an internet that is more open, resilient, and aligned with the interests of its users.
  • Decentralization: Data and applications are managed on distributed networks (blockchains), not by single companies.
  • User Ownership: Individuals control their data, digital assets, and online identity—often through cryptographic wallets.
  • Trustless and Permissionless: Users interact directly, without needing to trust (or get permission from) intermediaries.
  • Native Payments: Cryptocurrencies enable direct value transfer and transactions online, bypassing banks and traditional payment systems.
  • Transparency: Open-source protocols and smart contracts ensure that operations are visible and verifiable by anyone.
  • Community Governance: Decisions about platforms and services can be made by users through decentralized autonomous organizations (DAOs).

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Key Technologies Behind Web3

  • Blockchain: The foundational technology for decentralized data storage and transactions.
  • Cryptocurrencies: Digital assets used for payments, governance, and incentivizing network participation.
  • Smart Contracts: Self-executing agreements coded on blockchains, enabling automated and trustless interactions.
  • NFTs (Non-Fungible Tokens): Unique digital assets representing ownership of items like art, music, or virtual goods.
We continue an explanation of these technologies in our additional sections.

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Why Is Web3 Important?

The importance of Web3 becomes clear when we look at the real-world limitations of Web2 and centralized systems in general. In the current internet landscape, control is often concentrated in the hands of a few powerful entities—whether they are corporations, governments, or other authorities. This centralization leads to several issues:
  • Data Privacy and Ownership: In Web2, users’ personal data is often collected, stored, and monetized by organizations, sometimes without clear consent or transparency. For example, data breaches and scandals like Cambridge Analytica have shown how user data can be harvested and misused for commercial or political purposes.
  • Censorship and Deplatforming: Centralized platforms and authorities have the power to remove content or restrict access, sometimes arbitrarily or due to pressure from governments or interest groups. This can impact free expression and access to information.
  • Single Points of Failure: Outages or disruptions at major service providers—whether private companies or public infrastructure—can affect millions of people, highlighting the risks of relying on centralized systems.
  • Limited Financial Access: Traditional payment systems and banks, often regulated by both corporations and governments, can exclude people based on geography, credit history, or political reasons, making it difficult for many to participate in the global economy.
Web3 addresses these issues by decentralizing control, giving users ownership of their data and assets, and enabling direct peer-to-peer interactions. Blockchains and smart contracts ensure that operations are transparent and verifiable, reducing the need for trust in any single party. As a result, censorship resistance, privacy, and open participation become possible for everyone. Another exciting trend is the growing connection between Web3 and artificial intelligence (AI). As decentralized technologies mature, they are increasingly intersecting with AI to enable new forms of trustless automation, data marketplaces, and intelligent decentralized applications. This convergence opens up possibilities for more transparent, auditable, and collaborative AI systems—where users can both contribute to and benefit from advances in machine learning, all while retaining control over their data and digital identity. Web3 is growing rapidly, with new technologies and platforms emerging to make verifiability and trust not just possible, but inevitable. As the ecosystem matures, we can expect more robust solutions that empower users and create a more open, secure, and user-driven internet.

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