To understand Web3, we need to define what Web1 and Web2 were in the past.
Web1 is known as the read-only internet. It made information available to the masses in a static format. However, a big problem was that only tech companies and tech experts could understand how to publish on the web since it required a lot of deep knowledge of code and technical skills.
Web 2 is known as the read-write web. This is the stage of the Internet when it became interactive paving the way for social networks and other larger community oriented platforms to flourish. However, this led to disturbing centralization and selling user data and content to large centralized entities and corporations.
Web 3 is “decentralized” where no organization controls your data. Web3 is permissionless meaning anyone who is on the network has the ability to use the network. It’s uncensorable with data on the blockchain never being able to be changed or altered. The monetization structure also removes the middleman since the blockchain facilitates the structure and public transactions. Web3 also has strong privacy tools where identity is tied to cryptographic keys making it difficult to break.
Web3 is here to stay. Web3 does have some limitations in the areas of Scalability, User Experience, and Cost, but these problems are quickly being solved with new projects, developers, and contributors in all areas. As more and more individuals and organizations are embracing blockchain technologies, more benefits are being unlocked.
Thanks to Blockchain and Smart Contracts, decentralized apps can allow anyone to participate without monetizing personal data, and the internet and societies can become more focused on individual freedom. Web3 has opened up many possibilities to help with frictionless financial transactions (Cryptocurrency & DeFi), but there’s also DAOs that can provide governance in a public, transparent, and trustless ways. NFTs open up new ways for creators to monetize content, and create new markets for trade. And even data storage, access, and computing resources can be decentralized now. Many Web2 problems are being solved by Web3 solutions.