Web3 is the third version of the internet. It is focused on reading, writing, and owning. Although this iteration of the internet is still a work in progress and consistently evolving, it mainly focuses on leveraging blockchain-based technologies, machine learning (ML), smart contracts, and artificial intelligence (AI).
On the surface, Web3 applications have similar functions as Web2, which is the current version of the internet we know today. However, instead of storing the information on a centralised database, Web3 applications and their data are stored on a blockchain. Through the use of blockchain and related technology, Web3 aims to take power away from giant tech companies and put it back into the hands of users, where they can own their part in the web, rather than simply being users or consumers.
With widespread concerns about Web2 relating to data mining, online surveillance, algorithm manipulation, exploitative advertising, and subjective banning, many have ventured towards alternative platforms. As there is no central controlling node or single point of failure, Web3 does not require users to seek permission from a central authority to post anything — fulfilling the idea of a decentralised, trustless, and permissionless internet.
With blockchain as its foundation, Web3 is largely composed of decentralised concepts like decentralised applications (dapps), decentralised autonomous organisations (DAOs), decentralised finance (DeFi), non-fungible tokens (NFTs), and cryptocurrencies.
Examples of Web3 include Bitcoin (decentralised protocol), Steemit (blockchain-based social platform), OpenSea (NFT marketplace), and Uniswap (decentralised cryptocurrency exchange).
