A Beginner’s Guide to Web3: The Next Evolution of the Internet

To understand Web3, let’s first take a look at the history of the internet itself. We’ve gone through two major phases: Web1 and Web2. Now, we are on the cusp of Web3, which promises to revolutionize the way we interact online.

Web1: The Static Web (Read-Only Internet)

In the 1990s and early 2000s, Web1 was the first version of the internet. It was largely read-only, meaning users could view content on websites, but they couldn’t interact much with it. Think of it as reading a book online or visiting a billboard. Websites were basic, with text and maybe some images. There wasn’t much interactivity—no logging in, commenting, or sharing content. People were mainly consumers of information.

Key Features of Web1:

• Websites were static (unchanging once posted).
• There was little to no interaction between users.
• Users were primarily consumers of content.

Web2: The Social and Interactive Web (Read-Write Internet)

Around the mid-2000s, Web2 emerged, giving us the internet as most of us know it today. This phase of the internet is interactive, where users don’t just consume content but also create and share it. Social media platforms like Facebook, YouTube, and Twitter are prime examples of Web2. These platforms allowed users to post their thoughts, share videos, and connect with others.

However, Web2 also brought with it centralized control. Major companies like Google, Facebook, and Amazon dominate the space and own much of the data generated by users. If you use any of these platforms, they hold your personal data, decide how it’s used, and can even limit or remove your content.

Key Features of Web2:

• Users can interact with content, comment, share, and create their own content.
• Large companies control most of the data.
• Users have limited control over their personal data, which is often monetized by platforms.

Web3: The Decentralized Web (Read-Write-Own Internet)

Now, we’re moving toward Web3, the next phase of the internet. Web3 aims to address some of the problems that Web2 created, like centralized control and lack of data privacy. Web3 is built on blockchain technology, making it decentralized. This means there is no single company or entity controlling it, and users have more control over their data and digital assets.

You can think of Web3 as the internet where you own your data and digital life, not some big company. Instead of handing your personal information to a company that stores and controls it, Web3 allows users to interact on decentralized platforms where blockchain stores information. The blockchain is like a public ledger that anyone can see but no one can alter without proper permissions.

Key Features of Web3:

• Decentralization: No single company owns the network; it’s distributed across many nodes (computers).
• Ownership: Users own their data, and they can control who has access to it.
• Blockchain: All transactions and interactions are verified on a transparent ledger (blockchain), ensuring trust and security.
• Cryptocurrencies: Digital currencies like Bitcoin and Ethereum are native to Web3 and are used for transactions on the network.
• Smart Contracts: These are self-executing contracts on the blockchain that automatically enforce agreements, like selling a digital artwork.

An Analogy: Web3 as a Decentralized Village

Think of Web3 like a village where everyone owns their own house (data) and is responsible for keeping it safe. There’s no landlord or governing body that can suddenly take your house away or decide what you do with it. In this village, when you want to trade something (like a piece of art), you don’t need a middleman (like a bank or a marketplace) to approve it. Instead, you use a smart contract that automatically handles the trade in a transparent, secure way.

Unlike in Web2, where giant corporations are like landlords who control everything from rent prices to how you can decorate your house, Web3 puts control back in the hands of the people who live there—you.

What Can You Do in Web3?

• Trade Cryptocurrencies: You can buy, sell, and store cryptocurrencies like Bitcoin or Ethereum using a Web3 wallet.

• Explore DeFi: Participate in decentralized finance (DeFi) services like lending, borrowing, or earning interest without needing a bank.

• Create and Trade NFTs: You can create digital art, music, or other digital assets and sell them as NFTs. You can also buy and collect NFTs, like rare digital art or game items.

• Interact with DApps: Use decentralized apps (DApps) for social media, gaming, finance, and much more—all while retaining control over your data.

Participate in DAOs: Decentralized Autonomous Organizations (DAOs) are groups governed by smart contracts, where every member can have a say in decision-making, without centralized leadership.