An Introduction To Web3

Web3 is the next evolution of the internet - decentralized, transparent, and for the people

If you have been online much over the past few years, you have probably heard people talking about Web3. And if you haven't, it might be time to catch up. Web3 has been taking over for awhile now, and for good reason. It’s not just a buzzword, it is the next step toward a more decentralized and free internet.

Why the shift? Put simply, the internet is broken. It needs a change to something more open, transparent, and user-centric. To understand what makes Web3 unique, let’s take a look at where it came from, what it's built on, and why it has the potential to transform how we interact online.

From Web1 to Web3

Web1

Web1, or as others might refer to it, the "read-only web," was the start of the internet. Imagine early web pages. Users could access content, but interaction was extremely limited. This means no comment sections, no profiles, and no way to truly participate beyond reading. This phase, roughly spanning from the early 1990s to the early 2000s, was defined by static websites and a passive audience.

Web2

This is more what we know today. It was a significant change and gave us more platforms to interact on such as Facebook, YouTube, and Twitter. Social interactions, e-commerce, and user-generated content became the norm and without realizing it, the power of the web shifted into the hands of centralized tech giants. While Web 2.0 made content creation more accessible, it came at the cost of data ownership, users produced the content, but corporations held the data. In essence, users traded control of their data for convenience and community.

Web3

Web3 represents a new direction, a decentralized web where users not only interact but also own the content they contribute to. It's about bringing autonomy back to the individual, using the blockchain and cryptography to distribute power. Instead of relying on central servers controlled by a few corporations, Web3 uses decentralized protocols that enable users to be more than just participants, they become stakeholders. Additionally, if the protocol they use acts as a DAO, then token holders can contribute to its future based off their holdings, and cast votes on proposals, making sure they have a say. 

Characteristics of Web3

Decentralization

The main attraction of Web3 is its decentralized architecture. Traditional applications are built on centralized servers, while Web3 applications, called dApps (decentralized applications), are built on top of blockchain networks. These networks distribute data across nodes, eliminating single points of failure and shifting control away from centralized authorities. This makes Web3 resistant to censorship and surveillance. It is also more secure due to these nodes being spread out, where if one fails the rest of remain unaffected. Algorithms like Proof-of-Work (PoW) and Proof-of-Stake (PoS) ensure that all nodes in the network agree on the validity of a transaction. Additionally, cryptography is used to secure every transaction (hence the name cryptocurrency). 

Ownership

In Web3, users take back control over their identity, data, and assets. Instead of industry leaders dictating the rules, users have direct ownership of their content, interactions, and their assets (like NFTs and crypto). Non-custodial wallets like MetaMask, enable this control. You own your private keys, which ultimately means you own your assets and identity. However, it comes at the risk of more responsibility. Once that key is lost, it is unrecoverable and you may lose access to everything inside that wallet. 

Trustlessness and Transparency

Traditional platforms these days require trust, trust that the company will secure your data ethically. Web3 moves away from this model and more towards trustless systems, where transactions and rules are governed by smart contracts (self-executing contracts with the terms of the agreement directly written into code). Blockchain ledgers make these interactions transparent and immutable, enabling anyone to audit and verify without needing to trust a centralized entity.

Tech Behind Web3

Blockchain

Center to this movement is the blockchain, a distributed ledger that records transactions across many computers (nodes) in a secure, immutable way. Blockchain serves as the ground layer for everything in Web3, from crypto to dApps, giving a transparent and trustless infrastructure.

Smart Contracts

Smart contracts are self-executing programs stored on blockchains. They are important because they enable agreements to be coded and enforced without intermediaries. For example, getting a loan through traditional methods may be a long process involving multiple middlemen, but a decentralized lending platform may use a smart contract to perform loans and repayments based on predefined rules, without any bank in the middle.

Non-custodial Wallets

In Web3, your wallet is more than just a place to store your crypto. Unlike traditional wallets or accounts managed by third parties, non-custodial wallets give you full control over your assets and identity at all times. Non-custodial wallets like MetaMask mean you hold your own private keys. This gives you the freedom to interact directly with dApps, manage your assets securely, and participate without needing to trust anyone else.

Decentralized Protocols

When we talk about Web3, we have to talk about decentralized protocols. These protocols are what make Web3 different, and they are the reason why data in Web3 can be more open, resilient, and harder to censor.

Take IPFS (InterPlanetary File System), for example. Imagine the old way of storing data (putting everything on one central server). It’s convenient, but if that server goes down, your data goes with it. Worse, whoever owns that server has control over what stays up and what doesn’t. IPFS can change this by breaking files into smaller chunks and spreading them across many different nodes. This means your data isn’t dependent on one company or server, instead it’s spread out across the network. If one node fails, others pick it up, making it a lot harder to censor or take down.

Summary

Web3 isn’t just your typical upgrade, it’s a whole new way of thinking about how we interact online. By moving away from centralized control and giving power back to users, Web3 is creating an internet that’s more inclusive, secure, and engaging. One where you have a real stake in what’s happening.

For those already involved, you know Web3 isn’t just about technology. It’s about reshaping the relationships between users, data, and the platforms we interact with. Whether you are a developer building the next big dApp, a user exploring DeFi, or just someone curious about the future, Web3 is here, and it’s open to all.

It’s still early days, but the potential is big. We are just scratching the surface of what can be done, and its evolving fast. Keep your eyes on this space, because what’s coming next might just change everything we know about being online.