What is Web3?
In short, it’s the next generation of the internet built to enable value transfer.
While Web1 was the internet of information transfer, it got upgraded by Web2 to become the internet of social transfers. Web3 goes farther by being the internet of value transfer. It lets us move value around the globe. Securely.
Web1 is reading.
Web2 is reading and writing.
Web3 is reading, writing, and owning.
Ownership comes in the forms of tokens: pieces of the internet that users own, whether in the form of value (such as bitcoin) or digital art/music/property in the form of non-fungible tokens (NFTs). Tokens can represent both virtual (like tokens that power compute power) as well as physical (such as a real-world house) goods.
Web3 pulls together the prior internet generations and pulls in what got left behind by prior internet versions — finance, identity, scarcity, verifiable property, and security. Web3 benefits from the fusion of decentralized internet networks, secure computing, and autonomous intelligent software.
Cryptographically-secured transactions link Web3 together. Web3 computer code creates the rules of the new internet road for blockchain vehicles, and cryptoassets are the gas that incentivize database owners to maintain — and own — the system.
Because Web3 is digitally native, and often lacks real-world visibility, here is another way of looking at the internet’s evolution:
Web1 is reading things on the internet.
Web2 is buying things on the internet.
Web3 is buying internet things.
The first internet got set up to share information. The second internet got set up to let us interact better and produce content faster. The current and third generation, Web3, is being built to allow people to securely exchange value, fundraise, record an event (such as patent creation), or make economic transactions without a large platform sucking most of the value from these transactions. In Web3, no longer do users need to trust eBay or a central body. This will have huge, positive consequenes for income equality.
At its essence, Web3 enables trust. It does this by forming a new constitution of the internet based on exchange with peers. Users trust the code, not other people. The code is the constitution between a separation of powers —…