What is Web3

Web3 (or Web 3.0) is a conceptual framework for a new generation of internet infrastructure built on decentralised blockchain networks where users own their data, digital assets, and identities rather than surrendering control to centralised platform intermediaries. The term was popularised by Ethereum co-founder Gavin Wood in 2014.

THE WEB EVOLUTION

Web1 (1990s-2000s): Read-only internet. Static HTML pages. Content published by few, consumed by many. Early Yahoo, GeoCities.
Web2 (2000s-present): Read-write internet. Interactive platforms. Users create content but platforms (Google, Meta, Twitter, Amazon) own data, control accounts, and capture advertising value. Centralised gatekeepers control access.
Web3 (emerging): Read-write-own internet. Users control their own data via self-sovereign identity, own digital assets via NFTs and tokens, earn value through protocol participation, and interact via smart contracts without platform intermediaries.

KEY WEB3 INFRASTRUCTUR

EIdentity: ENS (Ethereum Name Service) human-readable .eth names replacing 0x wallet addresses.
Decentralised storage: IPFS, Arweave hosting content without centralised servers.
Smart contracts: Self-executing code replacing platform terms of service and backend servers.
DAOs: Community governance replacing corporate decision-making.
NFTs: Verifiable asset ownership independent of any single platform.

WEB3 CRITICISMS

Usability gap: Managing seed phrases, paying gas fees, and navigating complex interfaces is far from mainstream-ready.
Decentralisation theatre: Many Web3 applications rely on AWS-hosted nodes, centralised sequencers, and admin key holders.
Speculation over utility: Most Web3 engagement is financial speculation rather than genuine utility adoption. These are real challenges the ecosystem is actively working to solve through account abstraction, L2 scaling, and improved UX frameworks.

Terms in addition to the Web3

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.