What is Web3?
Web3 is the concept of a next-generation internet built on blockchains. In Web3, users own their data, digital assets, and identity — rather than corporations like Google, Facebook, or banks owning them.
Web1, Web2, Web3
| Era | Description | Control |
|---|---|---|
| Web1 (1990s) | Read-only internet | Corporations |
| Web2 (2000s–now) | Social, interactive internet | Platforms (Google, Meta) |
| Web3 (emerging) | Ownership internet | Users |
Web3 components
- Blockchains — the infrastructure layer
- Smart contracts — programmable agreements
- DeFi — financial services without banks
- NFTs — digital ownership
- DAOs — community governance
- Decentralised identity — own your credentials
Web3 criticism
Web3 is not without critics. Common criticisms:
- Most "Web3" applications still rely on centralised infrastructure
- Blockchain scalability limits mainstream adoption
- User experience is significantly worse than Web2
- Speculation dominates over genuine utility
Web3 and DeFi
DeFi is the financial layer of Web3 — the set of applications that enable financial services without traditional intermediaries. It is arguably the most mature and impactful Web3 application category.