Web3, often referred to as “the decentralized internet,” is the latest iteration of the internet. It is an internet system built on top of distributed ledgers and peer-to-peer networks, such as blockchain. Web3 is designed to enable secure, censorship-resistant interactions and transactions over the web, thereby enabling a new generation of decentralized applications (dapps).
Unlike previous versions of the internet, Web3 does not rely on physical infrastructure, such as servers and routers, or centralized authorities, such as government agencies, in order to function. Instead, it uses cryptography and distributed networks to enable users to securely and directly interact with one another.
In addition to making interactions more secure, Web3 also provides users with greater control over their data, allowing them to store and share data securely without requiring them to trust a third party. This control is made possible by decentralized storage solutions such as IPFS and open protocols like the Ethereum blockchain.
In addition to increased security and control over data, Web3 also provides users with a more distributed, flexible, and interoperable version of the internet. For example, Web3 enables users to easily transfer tokens between different ledgers, or move data securely between two different applications. These tokens can be every piece of data which can be possessed with a real Proof-of-Ownership like physical assets.
Instead of ‘renting’ domains, for example, we now can be the actual owner of them paying no one for it. All in all, Web3 is a significant step forward for the internet. As Web1 was reading, Web3 reading and writing, so is Web3 also possessing assets in a decentralized system with full control.