Web3 is a broad term describing the next evolution of the internet, one where blockchain technology shifts control from centralised companies to individual users. While Web1 was read-only (static websites) and Web2 is read-write (social media, user-generated content controlled by platforms), Web3 aims to be read-write-own, where users truly own their data, digital identity and assets.
How Web3 is different
| Feature | Web2 | Web3 |
|---|---|---|
| Data ownership | Platforms own your data | You own your data |
| Identity | Login with email/password | Login with crypto wallet |
| Payments | Banks, payment processors | Cryptocurrency, peer-to-peer |
| Applications | Run on company servers | Run on smart contracts |
| Governance | Company decides | Community decides via tokens |
Key building blocks of Web3
- [Blockchain](/glossary/blockchain): the decentralised database layer.
- [Smart contracts](/glossary/smart-contract): self-executing code that powers applications.
- [Crypto wallets](/glossary/crypto-wallet): your identity and access key in Web3.
- [Crypto tokens](/glossary/crypto-token): enable ownership, governance and value transfer.
- [DeFi](/glossary/defi): financial services without banks.
- [NFTs](/glossary/nft): verifiable digital ownership.
- DAOs: community-governed organisations.
- Decentralised storage: IPFS, Arweave and Filecoin replace centralised cloud storage.
Web3 use cases
- Decentralised social media: platforms where users control their content and data.
- Play-to-earn gaming: games where in-game assets are NFTs owned by players.
- Creator economy: artists and musicians monetise directly without platform intermediaries.
- Decentralised identity: a single wallet-based identity across multiple applications.
- Supply chain transparency: verifiable product tracking on public blockchains.
Web3 in India
India has a growing Web3 developer community. Events, hackathons and accelerators focused on blockchain and Web3 are common in cities like Bangalore, Mumbai and Delhi. Indian startups in the Web3 space work on DeFi protocols, NFT platforms, blockchain gaming and infrastructure tools.
Limitations and criticism
- Usability: Web3 applications are still difficult for non-technical users.
- Scalability: blockchains process far fewer transactions per second than centralised systems.
- Scams: the unregulated space attracts fraudulent projects.
- Environmental concerns: some blockchains consume significant energy, though proof of stake has addressed this for many networks.
- Centralisation in practice: despite the vision, much of Web3 infrastructure still relies on centralised cloud providers and a few dominant protocols.