Supporters of the term contrast Web3 with earlier phases of the internet: an early, mostly read-only web of static pages, followed by a more interactive, platform-dominated web in which a relatively small number of large companies host most user data and activity. Web3 describes an internet in which blockchains, cryptocurrencies and decentralised applications let users own their digital assets and identity more directly, and interact with services without necessarily needing to trust a single central operator to hold their funds or data on their behalf.
Web3 is more a broad umbrella and aspiration than a single technology. It covers a wide range of applications, from decentralised finance to digital ownership to decentralised social networks, with very different levels of maturity and real-world adoption. It is also a genuinely debated term: critics argue that much of what gets labelled Web3 still relies on centralised infrastructure behind the scenes, such as centralised servers, companies, or a handful of large blockchain networks operating key parts of the system.
Because of that, it is worth evaluating specific projects on their own merits, including how much of their infrastructure is genuinely decentralised, rather than treating the Web3 label alone as a guarantee of decentralisation or user ownership.
Key takeaways
- Web3 describes a proposed internet model built around blockchains, where users hold their own assets and data more directly.
- It is a broad umbrella term covering many different applications and technologies, not one specific product or protocol.
- The degree of real decentralisation varies a great deal between projects labelled Web3, so each is worth judging individually.
Web3 — frequently asked questions
Is Web3 the same as cryptocurrency?
No. Cryptocurrency is one component often used within Web3 applications to enable payments, ownership or governance, but Web3 is a broader concept covering decentralised applications, digital ownership and related infrastructure, not just currencies on their own.
Is everything labelled Web3 actually decentralised?
Not necessarily. Some projects described as Web3 still depend on centralised servers, companies, or a small number of large infrastructure providers behind the scenes, so the label alone does not guarantee a particular level of decentralisation in practice.
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