Web3 aims to give users more control and ownership over their online content and interactions. Web3 is often referred to as the decentralized web because it aims to decentralize the way that data and information is stored and shared online. In contrast to the current web (web2), where a small number of large companies like Google and Facebook control much of the data and user experience, web3 is based on a decentralized network of computers that work together to store and share data.
One underlying technology that enables web3 is blockchain, which is a type of ledger/database that is distributed across a network of computers, also known as nodes. Each computer in the network has a copy of the blockchain, and all of the copies are constantly updated and synced with each other. This ensures that the data stored on the blockchain is secure and transparent, as it is difficult to alter or delete data once it has been added to the blockchain.
Web3 also includes decentralized applications (dApps), which are applications that run on a blockchain network. These dApps are not controlled by any single entity, making them more resistant to censorship and control.
Web3 has the potential to change the way we interact online and could have a significant impact on a variety of industries. For example, in the finance industry, web3 could allow for the creation of decentralized financial platforms, also known as DeFi protocols, that are not controlled by any single entity. In healthcare, web3 could be used to create secure and transparent systems for storing and sharing patient data. In supply chain management, web3 could be used to create decentralized systems for tracking the movement of goods and materials.
Simply put, web3 has the potential to bring more decentralization, security, and privacy to the internet. While it is still in its early stages, many people believe that web3 has the potential to revolutionize the way we use the internet.