Lesson 1.1: What is Web3?
Topics to cover:
- Definition,
- Evolution from Web1 to Web3
- How Web3 changes digital ownership.
What is Web3?
Imagine the internet as a town. In its earliest days, Web1 was like a big library where you could read lots of books but couldn’t write in them or interact with others much. Web3, on the other hand, is like a bustling, self-sufficient village where everyone can own property, create businesses, and vote on community decisions—all without needing a central landlord to oversee everything.
Web3 refers to the next generation of the internet, built on blockchain technology. It shifts power away from centralized companies like Google or Facebook and gives individuals more control over their data, online identity, and digital assets.
From Web1 to Web3: The Internet’s Evolution
Web1: The Read-Only Era (1990s)
- What it was like: Picture a massive encyclopedia you could browse but couldn’t edit. Websites were static and mostly text-based, like looking at a digital brochure.
- Who controlled it: Few creators and website owners. Users were mostly passive consumers.
- Example: Yahoo! Directory and early HTML sites.
Web2: The Interactive Era (2000s – Today)
- What it’s like: Imagine joining a huge community fair where you can interact, share photos, comment, and collaborate. Websites became dynamic and interactive.
- Who controls it: Big companies like Google, Facebook, and Amazon became gatekeepers of data and services. While users created content, platforms monetized it.
- Downside: These platforms own your data. For example, Facebook earned $116 billion in ad revenue in 2022 by selling user-targeted ads (Source: Statista).
Web3: The Ownership Era (Emerging Now)
- What it’s like: A village where every citizen owns their own house (data), decides how the town is run (governance), and freely trades with others using shared rules (blockchain technology).
- Who controls it: You do. Ownership is decentralized. No middlemen are required to verify or control transactions.
How Web3 Changes Digital Ownership
- You Own Your Data
In Web2, companies store and control your data. Web3 puts you in charge.- Analogy: If Web2 is like renting an apartment (data belongs to the landlord), Web3 is like owning your house (data belongs to you).
- Example: With Web3 wallets like MetaMask, you store your own digital assets instead of relying on a bank or a platform.
- Decentralized Systems
Web3 uses blockchains—public ledgers that track transactions securely and transparently.- Analogy: A blockchain is like a group diary where everyone writes down events, and nobody can erase or fake entries.
- Fact: Bitcoin was the first blockchain-based system, launched in 2009, now securing over $500 billion in value.
- Tokenization and Digital Assets
Web3 allows people to tokenize things like art, music, and even real estate into NFTs (non-fungible tokens) or cryptocurrencies.- Analogy: Think of tokens as digital certificates of ownership. If you own an NFT of a song, it’s like owning an autographed vinyl record that proves it’s yours.
- Example: In 2021, NFT sales topped $25 billion, showcasing how Web3 empowers creators to sell directly to fans (Source: Reuters).
Why Does Web3 Matter?
- Empowers Users: Web3 gives you control over your identity, assets, and choices.
- Fairer Economy: Blockchain removes middlemen, reducing fees for creators and users.
- Innovation: It opens new opportunities, from decentralized finance (DeFi) to play-to-earn games.
Conclusion
Web3 is transforming the internet into a space where you are not just a user but an owner. By combining decentralization with digital ownership, it opens the door to more inclusive, secure, and innovative online experiences.
As we dive deeper into this lesson series, we’ll explore blockchain, DeFi, tokenization, and how these tools can reshape industries and empower individuals.
Did you know?
- Ethereum, a leading blockchain platform for Web3 apps, processes over 1 million transactions per day.
- By 2030, blockchain technology could add $1.76 trillion to the global economy (Source: PwC).