What is Web3

Web3, short for Web 3.0, is the third generation of internet services that leverages blockchain technology and decentralised networks to create a more user-centric, transparent, and secure online environment.

Unlike Web 2.0, which is largely centralised and dominated by a few tech giants, Web3 aims to redistribute power back to users. It accomplishes this by utilising blockchain technology and cryptographic principles. These provide a transparent, tamper-proof system, which enables peer-to-peer interactions without the need for intermediaries. This shift from a centralised structure to a decentralised one is the core feature of Web3.

One of the most notable components of Web3 is decentralised applications (DApps). DApps run on blockchain networks and operate autonomously, and their data and records of operation are cryptographically stored in a public, decentralised blockchain. This promotes transparency, security, and data privacy.

Furthermore, Web3 supports the tokenisation of digital and physical assets. This means assets can be represented as tokens on a blockchain, which can be easily traded and transacted, fostering a new digital economy. This tokenisation is central to the concepts of decentralised finance (DeFi) and non-fungible tokens (NFTs), both of which have become significant elements of the Web3 landscape.

Another important aspect of Web3 is the emphasis on self-sovereign identities, also known as Decentralized Identifiers (DIDs). DIDs allow individuals to control their own digital identities rather than relying on centralised authorities, which enhances privacy and personal control.

Overall, Web3 represents a significant shift in the way we interact with the internet. It enables a more decentralised, secure, and user-centric online experience, empowering individuals to control their data and digital interactions.