Web3 or Web 3.0 is a term used to describe the next generation of internet services. The term stands for the third generation of the Internet, which aims to create a decentralized and user-driven web. The main difference to Web 2.0 is that it is built on decentralized web technologies such as the blockchain. The idea is to bring back the power to the users instead of big central authorities, who are famous in web 2.0. In web 3.0 no single company or organization owns the internet and the data of its users. In Web3 users can own certain parts of the web and transactions and creations are saved on the blockchain. This is seen as a massive shift of data ownership compared to web 2.0.

Characteristics of Web3:

  • Decentralization: the aim of Web3 is to create a more decentralized internet where information is not controlled by a few organizations or authorities.

  • Interoperability: Web3 protocols are designed to be interoperable. This also makes it possible to develop different decentralized applications (dApps) that communicate with each other and exchange or share data.

  • End-user ownership: In Web3, end users will be given ownership of their data and digital assets, and thus control over who has access to their data and how it may be used. This also enables completely new, fair and transparent business models involving end-users' data. 

  • Trustless systems: Thanks to cryptographic protocols and consensus mechanisms used in Web3, trustless systems can be created, reducing or eliminating the need for third-party providers.

  • Tokenization: Web3 also enables the creation of digital tokens that can be used as proof of ownership of assets or as a medium of exchange. A distinction is made here between fungible tokens and non-fungible tokens

  • Programmability: Smart contracts can be programmed on the web3. Simply put, these are self-executing contracts in which the terms of the agreement between the parties involved are written directly in lines of code and are also executed automatically when the defined conditions occur.

  • Privacy: Web3 is about giving end-users more privacy and anonymity and control over what information they share, with whom and for what.

It should now be clear that Web3 is about creating a more open, transparent and decentralized internet where end users have more control over their digital lives. On the other hand, it also means that end users have to assume this responsibility and, for example, do not have the option of simply clicking on "password reset" if they lose their own access to the dApp or crypto wallet. It will definitely take some time before the great mass of users put the advantages of Web3 above those of Web 2.0 (please reset password...).