Introduction to Web3
Centralization has helped billions of people connect to the internet and created the robust infrastructure we rely on today. However, a handful of centralized entities maintain tight control over vast portions of the internet, unilaterally deciding what is and isn't allowed.
Web3 is the solution to this dilemma. Instead of a web monopolized by big tech companies, Web3 embraces decentralization—built, operated, and owned by its users. Web3 shifts power from corporations to individuals. But before diving into Web3, let's explore how we got here.
The Evolution of the Web
Most people perceive the web as a constant pillar of modern life, invented and unchanged since its inception. However, today's web differs significantly from its original vision. To understand this better, we can divide the web's brief history into eras: Web 1.0 and Web 2.0.
Web 1.0: Read-Only (1990–2004)
In 1989, Tim Berners-Lee at CERN developed the protocols that became the foundation of today's internet. His vision? Open, decentralized protocols enabling global information sharing.
The first iteration, Web 1.0 (1990–2004), consisted mostly of static websites owned by companies. User interaction was minimal—individuals rarely created content—earning it the nickname "read-only web."
Web 2.0: Read-Write (2004–Present)
The Web 2.0 era began in 2004 with the rise of social media platforms. The web evolved from read-only to read-write. Companies no longer just provided content; they offered platforms for user-generated content and peer-to-peer interaction.
However, as more people connected, a few corporations gained disproportionate control over web traffic and value. Web 2.0 also introduced ad-driven revenue models. Users created content but didn’t own or profit from it.
Web3: Read-Write-Own
The concept of Web3 was coined by Ethereum co-founder Gavin Wood in 2014. He highlighted a critical issue: today's web requires excessive trust in private companies acting in the public interest.
What Is Web3?
Web3 represents a vision for a better internet—one that uses blockchain, cryptocurrencies, and NFTs to return power to users through ownership. As a 2020 Twitter post succinctly put it:
- Web 1.0: Read
- Web 2.0: Read-Write
- Web3: Read-Write-Own
Core Principles of Web3
Though definitions vary, these principles guide Web3’s development:
- Decentralized: Ownership distributed among builders and users, not centralized entities.
- Permissionless: Equal access for all participants.
- Native Payments: Cryptocurrencies replace outdated banking infrastructure.
- Trustless: Operates via economic incentives, not third-party intermediaries.
Why Web3 Matters
Web3’s benefits fall into key categories:
Ownership
Web3 grants unprecedented control over digital assets. For example:
- In Web2 games, purchased items are tied to your account. If the game bans you or shuts down, you lose everything.
- In Web3, you truly own in-game assets via NFTs. Even if you stop playing, you can sell or trade items in open markets.
Censorship Resistance
Web2 platforms hold disproportionate power over creators. For instance:
- OnlyFans creators faced income loss when the platform threatened to ban adult content in 2021.
- In Web3, your data lives on the blockchain. Leaving a platform? Your reputation follows you.
Decentralized Autonomous Organizations (DAOs)
Web3 enables collective platform ownership via DAOs—token-based communities that vote on resource allocation and governance. DAOs represent a shift toward decentralized decision-making.
Identity
Web3 replaces scattered accounts with a unified Ethereum address and ENS profile. This offers a secure, censorship-resistant login across platforms.
Native Payments
Web3 uses tokens like ETH for direct browser-based payments, bypassing banks and borders.
Challenges Facing Web3
Despite its promise, Web3 has limitations to address:
Accessibility
- High transaction fees exclude users in developing nations.
- Ethereum’s Layer 2 solutions aim to reduce costs.
User Experience
- Technical barriers (e.g., wallet setup) hinder mass adoption.
- Wallets and dApps need more intuitive interfaces.
Education
- Web3 requires new mental models vs. Web2.
- Initiatives like Ethereum.org’s Translation Program help bridge knowledge gaps.
Centralized Infrastructure
- Web3 still relies on centralized tools (Discord, Twitter, GitHub).
- Building robust decentralized alternatives takes time.
The Decentralized Future
Web3 is young but evolving rapidly. Since 2014, we’ve seen:
- Surging cryptocurrency interest.
- Improved Layer 2 scaling.
- Experiments in decentralized governance.
- Innovations in digital identity.
The future is bright—but there’s work ahead.
How to Get Involved
- 👉 Get a Web3 wallet
- Join a DAO.
- Explore decentralized apps (dApps).
- Contribute to open-source projects.
Further Reading
- Making Sense of Web3 – Josh Stark
- Why Decentralization Matters – Chris Dixon
FAQ
Q: Is Web3 the same as blockchain?
A: Blockchain is a foundational technology for Web3, but Web3 encompasses broader concepts like ownership and decentralization.
Q: Can Web3 replace Web2?
A: Not immediately—Web3 must overcome scalability and usability hurdles first.
Q: Do I need crypto to use Web3?
A: Yes, cryptocurrencies enable transactions and governance in Web3 ecosystems.
Page last updated: March 2025