What is web3?

The internet has always been about connection, but who’s really in control? From social media giants to data-hungry corporations, web2 left users on the sidelines. Now, web3 is here to change that – putting power back into the hands of everyday people.

Web3 explained

Experts are still debating how to define web3, but at its core, it’s the next evolution of the internet – one that shifts control from centralized authorities like corporations and governments back to users. Instead of relying on a single entity, web3 spreads decision-making across a network, giving people more control over their data, identity, and digital assets.

Blockchain technology

Blockchain technology is at the heart of web3, powering both cryptocurrencies and decentralized applications. It acts as a digital ledger, recording transactions across multiple computers to keep the data secure and tamper-resistant. Unlike traditional databases managed by companies, blockchains are maintained by a distributed network, ensuring transparency and minimizing the risk of manipulation.

Smart contracts

Smart contracts are self-executing programs stored on a blockchain. They automatically carry out actions when certain conditions are met, eliminating the need for intermediaries. These contracts make web3 efficient, enabling trustless transactions between users.

For instance, in the insurance industry, smart contracts can automate policy management and claims processing. This can lower costs for insurers, reduce premiums for customers, and speed up payouts by ensuring policyholders receive payments as soon as conditions are met, without the delays of traditional claims processing.

Decentralized applications (DApps)

Unlike traditional apps that run on central servers, DApps operate on blockchains, keeping them decentralized and censorship-resistant. Many DApps are open-source, allowing anyone to view or contribute to their code. They often use smart contracts to work independently of any central authority.

Cryptocurrency

Cryptocurrency plays a crucial role in the web3 ecosystem, acting as both a means of exchange and a way to power decentralized networks. Unlike traditional money controlled by banks and governments, cryptocurrencies make peer-to-peer transactions possible without intermediaries.

How web3 differs from web1 and web2

In the early days of the internet, known as web1, users could only browse static websites. Opportunities for interaction and engagement were barely available.

Over time, the internet evolved into web2, where platforms like Facebook, TikTok, and YouTube allowed users to create and share content. However, while web2 gave users more ways to participate, large corporations controlled the platforms, data, and decision-making.

Web3 moves away from this centralized model. In web3, no single entity oversees development. Rather, individuals, nonprofits, and businesses collectively drive its progress through different Web3 projects.

Another key difference is financial transactions. In web2, online payments rely on banks and third-party services. Web3 eliminates the need for intermediaries through blockchain-based peer-to-peer (P2P) networks, allowing users to directly connect with each other without a central server.

By putting control back in users' hands, web3 is reshaping how people interact online, making the internet more open, transparent, and user-driven.