What Is Web3?

Web3 is the next phase of the internet, characterized by decentralization and user empowerment. At its core, Web3 should be thought of as an ideological shift in the way the internet works more than a technical one. While Web3 does feature some foundational new technologies, it’s still just an evolution of the internet you know and use today. But unlike previous iterations of the internet, Web3 shifts control of the web from centralized corporations to decentralized individuals — promoting security, privacy, autonomy, and accessibility online.

Decentralization, in simple terms, means that no single entity has complete control over data or platforms; instead, control is distributed across many independent participants. Blockchain is the fundamental technology that enables this decentralization. It does so by creating a transparent and secure system where transactions and interactions are verified by multiple independent parties rather than a central authority.

This article explores the evolution from Web1 to Web2 to Web3, key differences between these versions of the web, the ideological underpinnings of Web3, and how to access this new digital frontier.

Understanding Web3: a new era of the internet

The internet has undergone significant changes since its inception, evolving from static web pages to interactive platforms and now into a decentralized digital ecosystem. This progression is often categorized into three broad phases: Web1, Web2, and Web3. While these distinctions are not strictly technical, they help illustrate the internet’s evolution and the changes in control, privacy, and accessibility that have occurred over time.

Each phase of the internet has been defined by who holds power over information and user data. Web1 was a limited experience where users could mostly only consume information. It also wasn’t yet dominated by tech companies controlling large portions of the internet. Web2 introduced interactivity and social networks, but at the cost of handing control to centralized corporations. Web3 aims to bring back decentralization, allowing users to interact with and own their digital presence without relying on a handful of powerful companies. This shift is enabled by technologies like blockchain and peer-to-peer networks, which enable data ownership and control to remain in the hands of individuals rather than intermediaries.

Web1: the read-only internet (1990s–early 2000s)

Web1, often called the "read-only" web, was the first phase of the internet. Websites were static pages, primarily created and controlled by businesses or institutions. Users could consume content but had little to no ability to interact with it beyond clicking hyperlinks. Examples of Web1 sites include early news websites and personal homepages, and most of the first websites belonged to universities and research institutes.

Web2: the centralized, interactive web (early 2000s–present)

Web2, sometimes called the “read-write” web, marked the shift from static pages to dynamic, user-generated content. Social media platforms, blogs, and e-commerce sites flourished, enabling users to create and share content easily. However, this era also led to the dominance of large technology companies such as Google, Facebook, and Amazon, which centralized control over data, digital identity, and monetization. In Web2, users often exchange personal data for access to free services, resulting in concerns over privacy, censorship, and platform dependency.

Web3: the decentralized internet (emerging era)

As the next evolution of the internet, Web3 is sometimes called the “read-write-own” version of the web. It aims to shift control away from centralized entities and return power to users. It leverages blockchain technology, cryptocurrencies, and decentralized protocols to create a more open and user-owned web. In Web3, individuals can interact directly without intermediaries, improving aspects of security, privacy, autonomy, and accessibility online.

Web2 vs Web3: key differences

Although Web2 and Web3 both rely on the same foundational infrastructure of the internet, their underlying principles and operational models set them apart. Web2 is defined by centralized platforms that manage data, services, and interactions, while Web3 introduces a decentralized framework where control and ownership shift to users through blockchain-based technologies. This distinction fundamentally alters how information is stored, accessed, and monetized. Consider the differences between Web2 and Web3 across the following categories:

Security and privacy in Web2 vs Web3

Traditional Web2 applications rely on centralized databases that rely on a small number of powerful companies to store and distribute data. If compromised, these centralized databases can expose vast amounts of sensitive user data. They also represent critical single points of failure — often being targeted by hackers and other malicious actors online.

Web3 mitigates these risks by distributing information across decentralized networks, making it significantly harder for a single attack to cause widespread damage or outages. Web3 also foregoes traditional Web2 login methods (i.e., where your sensitive information like usernames and passwords are stored and checked on a centralized server) in favor of using cryptographic keys for authentication — reducing the risk of phishing attacks and unauthorized access to your accounts.

This shift has a few very important impacts for end users. In Web3 systems:

• Users have greater control over their online data, and enjoy strengthened security and privacy measures.
• Reliance on big tech companies is reduced.
• The internet is more resilient against outages, data breaches, and censorship.
• Data is stored across a network rather than a single location, creating a more open and accessible digital environment.

Autonomy and accessibility in Web2 vs Web3

In Web3, users have more control over their data, digital identities, and assets, often through self-custody crypto wallets rather than accounts controlled by centralized platforms. This shift means that instead of relying on third parties like banks, social media companies, or cloud storage providers to manage personal data and assets, individuals have the ability to store and interact with their information directly on blockchain networks.

By using cryptographic keys, Web3 enables true ownership, meaning that only the user can access, transfer, or modify their data. This reduces the risk of censorship, data breaches, and unauthorized account access, giving users a level of digital sovereignty that was not possible in Web2.

Web3 also significantly enhances accessibility by utilizing open, decentralized networks that operate without intermediaries. Unlike Web2, where access to platforms and financial services is often restricted by geographical, regulatory, or institutional barriers, Web3 systems are generally permissionless, which means most individuals with an internet connection can connect to the decentralized applications (dApps) that make up Web3 without requiring approval from a central authority. This openness has significant implications, especially in regions where traditional digital and financial platforms are restricted or unreliable, further expanding global access to economic and social opportunities.

New Web3 innovations

Many dApps integrate blockchain-based digital assets in various ways, fostering “token-based economies” that allow users to earn rewards, participate in governance, and contribute to digital ecosystems in a way that wasn't possible in Web2. Unlike Web2, where users contribute content and data without control over the platforms they use or financial incentives, Web3 enables value exchange through assets that can be earned, traded, or used within dApps. These new internet economies not only democratize platform governance — where token holders can, for example, vote on policies for the platforms they use — but also provide users with a stake in the platforms they engage with, fostering a sense of ownership and active participation.

How Web3 works: servers, blockchain, and decentralization

The core innovation behind Web3 is its use of decentralized networks, primarily blockchain technology.

In Web2, websites and applications are hosted on centralized servers owned by corporations, which act as storage locations for all user data and website content. Think of a server as the physical location where a website “lives.” When you interact with a Web2 site or app, you’re “communicating,” or sending data back and forth, with these servers. This centralized approach makes it easier for large companies to control, censor, or monetize data, often without direct user consent.

In contrast, Web3 utilizes decentralized hosting, where data is distributed across multiple participants (or “nodes”) in a blockchain or peer-to-peer network — a decentralized replacement for the centralized servers of Web2. This reduces single points of failure and reliance on a single entity, making the web more resilient and resistant to censorship.

Another crucial component of Web3 is smart contracts — self-executing programs stored on blockchains that enable automated, trustless interactions between parties. Unlike traditional apps that rely on centralized servers and intermediaries to transfer data, smart contracts execute predefined rules transparently and securely. Developers use smart contracts to create dApps that work much like traditional web apps but with a decentralized backend. Smart contracts and dApps also enable novel innovations in decentralized finance (DeFi), digital ownership, and governance models that were not possible in earlier iterations of the web.

Web3 as a movement: the ideological shift

Beyond its technical advancements, Web3 signifies a broader ideological shift toward decentralization and user empowerment. This ideological shift is captured in the key advantages that Web3 enables: the prioritization of user security, privacy, autonomy, and accessibility.

Web3 enables individuals to control their data without intermediaries, reducing the risks of centralized data storage like hacking, data leaks, and corporate misuse of information. The networks that underpin Web3 are open and accessible to virtually anyone, and the data and services they host are backed by decentralized architectures that reduce centralized vulnerabilities, mitigate censorship, promote open access to information, and bolster network resiliency.

Collectively, these principles underscore Web3’s goal of creating a more equitable and user-centric version of the Internet.

How to access Web3

Unlike Web2, which only requires a web browser, accessing Web3 often involves additional tools. You’ll still use a web browser, and still navigate to sites and services using the address bar, links, and URLs. But, at least for the time being, you’ll need a few extra tools to get started exploring. Here’s some key information to begin:

• Web3 wallets: Web3 applications typically require a self-custody wallet like MetaMask or Phantom, which serves as your digital identity and allows you to connect with dApps and their underlying blockchain networks. Unlike traditional Web2 login systems that rely on usernames and passwords, Web3 wallets function as a universal login mechanism. With a single wallet, users can access multiple Web3 applications without needing to create new accounts or remember numerous passwords. This not only simplifies authentication but also enhances security by reducing reliance on centralized databases that are vulnerable to breaches.
• Blockchain networks and dApps: Many Web3 services and dApps operate on blockchain networks like Ethereum, Solana, or Arbitrum. Some apps abstract away the complexity, making it easier for users to engage without deep blockchain knowledge. (Think of service providers like BCRemit or Solana Pay that are powered by USDC on the backend.) Connecting to dApps is typically as simple as navigating to a dApp’s website, and connecting your Web3 wallet. By doing so, you can engage with all kinds of dApps, such as decentralized exchanges like Uniswap, NFT marketplaces like OpenSea, or social platforms like Lens Protocol.
• Connecting Web2 and Web3: Some platforms, like Brave Browser and ENS (Ethereum Name Service), help transition users into Web3 by integrating blockchain features into familiar Web2 experiences. Brave Browser, for instance, rewards users with cryptocurrency for viewing privacy-respecting ads, offering a tangible introduction to digital assets. ENS simplifies the transition by replacing complex blockchain addresses with human-readable names, making decentralized identities easier to manage. These innovations lower the barriers to entry, allowing users to explore Web3 without needing extensive technical knowledge.

The future of Web3

While Web3 is still evolving, its impact on finance, social media, digital identity, and ownership — among other categories — is already being felt. Challenges such as scalability, usability, and regulation remain, but ongoing innovations in blockchain technology and decentralized governance are pushing the ecosystem forward.

Web3 offers a vision of the internet where users have greater autonomy, security, and economic opportunities. As more tools and applications develop, the barriers to entry should continue to decrease, making Web3 more accessible to a broader audience.

Web3 represents a shift towards a more open, user-controlled internet. Whether you're a casual internet user or a developer, understanding Web3 can help you navigate the future of digital interactions and online ownership.