Web2 is the internet as we know it today and Web3 is a newer and improved version that we’re currently building. While Web2 has seen explosive growth over the last two decades, it has evolved with a catch: its narrative sees the internet governed by central authorities that collect and make money from our personal data. Web3, on the other hand, looks to shift towards a world where power is distributed, and users have agency over their digital lives. This vision is centered around blockchain which can provide transparency, security, and a new level of user control. In the article, we will explore the fundamental distinctions between Web2 vs Web3, starting with a history of the internet, followed by a comparison of the two most recent iterations of the internet, and a look at how Web3 can improve the way we interact online. In the early days of the internet, we had Web 1.0, a decentralized, static and one-way communication platform. This was the era of basic HTML websites, where users were spectators, consuming information without actively participating. It was like walking through a library, browsing through books but unable to leave your mark or engage with others in real time. Then came the transformative age of Web 2.0, characterized by dynamic and interactive websites that revolutionized the way we connect and collaborate online. Web 2.0 evolved via a culmination of different technological capabilities, including social media platforms, online marketplaces, mobile, streaming services and more. Users were empowered to create, share, and interact with content. A handful of powerful companies emerged, but with their rise came concerns over data privacy, censorship, and the concentration of power. Users began to realize that their digital lives were in the hands of a few, and the need for a more transparent and user-centric approach became apparent. Enter Web 3.0, the embodiment of a decentralized and user-centric internet. Built on blockchain technology, Web 3.0 aims to dismantle the centralized power structures of Web 2.0 and offer a new level of control and ownership to individuals. It's like entering a vibrant, self-governing community, where every participant has a say and can contribute to the collective decision-making process. Furthermore, Web3 emphasizes identity & ownership as key pillars, providing participants a web experience in which they own their creations, buy and sell digital and real-world assets, as well as have the power to choose which information they disclose to whom. Web3 is built upon the concept of decentralization, where power is distributed among participants rather than controlled by a central authority. It's based on a peer-to-peer network, where individuals can interact directly with each other without the need for intermediaries or a centralized server. Web3 leverages blockchain to provide transparency and verifiability. Transactions and interactions can be recorded on a public ledger, enabling anyone to independently verify the authenticity and integrity of data. Trust is not placed solely in central authorities or intermediaries. Instead, trust is built into the technology itself through cryptographic algorithms and consensus mechanisms. Communities collectively make decisions and govern the platforms and protocols they use. Through decentralized governance mechanisms, such as token-based voting or consensus-based decision-making, users have a say in the direction and rules of the system. Web3 is open and permissionless, meaning anyone can participate without needing to seek approval or meet specific criteria. It breaks down barriers to entry and enables individuals to freely engage with the ecosystem. In Web2, we have relied on banks to hold our money; on Visa, SWIFT, Paypal and others to transact our money; and on Google, Facebook and others to verify our identity. In Web3, our wallet (and the assets within it) can be used to verify our decentralized identity and as the “key” to unlock verification and commerce. Cryptocurrencies, like Bitcoin and Algorand, play a significant role in Web3, enabling direct and seamless transactions. This also allows for payments to bypass traditional financial intermediaries and reduce transaction fees. Technology: Web3 runs on blockchains like Algorand, leveraging their decentralized and transparent nature to enable trustless interactions and smart contract execution. Ownership & sovereignty: Web3 shifts the power balance by giving users ownership and control over their data, allowing individuals to decide how their information is used. Censorship resistance: Web3's decentralized nature makes it resistant to censorship, meaning platforms built on Web3, such as social media networks, can’t arbitrarily ban or censor users like in the way that centralized platforms can. Greater privacy and security: With enhanced privacy and security measures, Web3 can reduce the need to share personal data with third parties in order to access services and applications. Users have more control over their personal information and can maintain a higher level of privacy. Token economy: Web3 introduces a token economy where digital assets can hold real value and be used for payments and transactions within the ecosystem, so payments can be made peer-to-peer in cryptocurrencies like Bitcoin and Algorand. Governance: Web3 promotes community-driven DAO governance, where decisions are made collectively by participants through voting and consensus mechanisms. This ensures that the platform's direction and rules are determined by the community. Identity: Web3 introduces digital identity solutions that allow users to have portable identities that can be used across various decentralized applications (DApps), allowing users to transfer and manage identity credentials within the Web3 ecosystem. Native built-in payments: Web3 platforms have native payment capabilities, eliminating the need for traditional intermediaries like banks or payment processors. Users can make direct and secure payments using digital currencies within the ecosystem. Web3 is being used in various real-world applications and industries. Here are some examples: 1. Decentralized finance (DeFi): DeFi platforms leverage Web3 technology to provide financial services without third parties, like banks. Examples on Algorand include lending and borrowing protocols like Folks Finance and Tinyman. 2. Non-fungible tokens (NFTs): NFTs, which are unique digital assets stored on a blockchain, have gained popularity in the art, gaming, and travel industries. Platforms like Rand Gallery and EXA Market allow users to buy, sell, and trade NFTs representing digital artwork. TravelX tokenizes airline tickets to simplify buying and selling tickets. 3. Decentralized identity: Web3 enables self-sovereign digital identity solutions, where individuals have control over their personal information. Projects like NFDomains are building decentralized identity platforms that allow users to manage and verify their identity across different services and applications. 4. Supply chain management: Web3 is being utilized in supply chain management to increase transparency and traceability. Wholechain uses Algorand's blockchain technology to track and authenticate products throughout the supply chain, in order to reduce fraud, and counterfeiting, and ensure ethical sourcing. 5. Gaming and virtual worlds: Web3 technology is transforming the gaming industry by enabling true ownership of in-game assets and the creation of player-driven economies. Examples include Zone Gaming, where gamers can participate in a play-to-earn ecosystem, and Aegir Tactics, a play-to-earn competitive card game. 6. Social media, dating, and content platforms: Web3 offers alternatives to centralized social media platforms. Projects like Thinkin help creators grow a Web3 audience, and TruYou, improves the online dating experience through decentralized identity and gamification. Web3 provides users more control over their data, interactions, and content moderation. What is the biggest difference between Web2 and Web3? The biggest difference between Web2 and Web3 is the shift from a centralized internet to a decentralized one. Web2 relies on intermediaries and centralized platforms, while Web3 enables peer-to-peer interactions without the need for intermediaries, offering more control and ownership to users. Is Web3 replacing Web2? Web3 is not replacing Web2 entirely. Instead, it represents the next evolution of the internet. Web3 is introducing new technologies and approaches to the internet as we currently know it. Web3 challenges the dominance of centralized platforms through decentralized applications (dApps) running on the blockchain. Why is Web3 better than Web2? Web3 offers several advantages over Web2. It provides greater data ownership and control for individuals, eliminating the reliance on centralized authorities and reducing the risk of data misuse. Additionally, Web3 fosters transparency, trust, and democratization of the internet by leveraging distributed ledger technologies and allowing anyone to participate without monetizing their personal information. What is Web2 vs Web3 for dummies? Web2, also known as the current version of the internet, is dominated by companies that offer services in exchange for personal data. In contrast, Web3 refers to decentralized applications (DApps) running on the blockchain, where users can participate without compromising their privacy and ownership of data. It's like transitioning from relying on a central authority for everything to having a more direct and secure peer-to-peer interaction online. Are Web3 and the metaverse the same thing? No, Web3 and the metaverse are not the same thing. Web3 refers to the next generation of the internet that is based on blockchain technology and decentralized applications. While the metaverse might affect how we experience and consume Web3 one day, the metaverse refers to a virtual reality space that allows users to interact with a computer-generated world and each other in real time. Related articles Developers: How to Level Up from Web2 to Web3 What Is a Web3 Wallet and How Does It Work? How Blockchain Is Disrupting the Real Estate Industry The history and evolution of the web
Web 1.0
Web 2.0
Web 3.0
Web2 vs Web3: What are the differences?
Web2 Web3 Controlled by large, centralized companies Controlled and governed by communities Limited control over your data Ownership and control over your data Reliance on third parties for transactions and interactions Direct peer-to-peer interactions without intermediaries Lack of transparency in data handling and decision-making Transparent, open source, and democratic Innovation driven by a few major players Open ecosystem fostering widespread innovation Trust placed in large corporations Trust built into technology through cryptography and consensus mechanisms Ownership verification provided by large corporations Ownership self-custodied and verified by users Centralized payment systems and intermediaries Native digital currency payments with reduced intermediaries and fees Vulnerable to censorship and content control Resistant to censorship due to decentralization Limited privacy control and potential data exploitation Enhanced privacy control through cryptographic techniques Limited scalability with growing user base Scalability potential through blockchain technology What are the main ideas behind Web3?
Decentralization
Verifiability
Trustless
Self governance
Permissionless
Ownership
Native payments
What are the key features of Web3?
What are some real-world examples of Web3?
Web2 vs Web3: Frequently Asked Questions
FAQs
Web2 vs Web3: What's the Difference? | Algorand Foundation News? ›
The biggest difference between Web2 and Web3 is the shift from a centralized internet to a decentralized one. Web2 relies on intermediaries and centralized platforms, while Web3 enables peer-to-peer interactions without the need for intermediaries, offering more control and ownership to users.
What is the major difference between Web2 and Web3? ›Web2 includes podcasts, social bookmarking, blogs, RSS feeds, and video sites. Web3 incorporates AI and machine learning-powered dApps, virtual worlds, and 3D portals.
What can Web3 do that Web2 Cannot? ›Many Web3 solutions also implement complex access services to improve security. These include private keys and decentralized identifiers (DIDs) which are unique web addresses used to confirm the person's identity. Thanks to these measures, most Web3 platforms are much more secure compared to Web2 software.
What is the key difference between Web2 and Web3 coinbase answers? ›While Web2 apps are centrally controlled, tokens in Web3 grant users the right to help govern the services they use, representing a form of ownership in the platforms themselves.
Is Web3 dead? ›No, web3/crypto/blockchain is not dead, despite how many commenters here wish it were.
Why is Web3 not the future? ›So Web3 hasn't been able to break through cultural barriers of understanding. It also doesn't help that those deeply embedded in the world and opportunities of Web3 speak a different language than general society. Using terms like DAOs, blockchain, tokens and such, only serves to alienate people, not bring them in.
Can Web3 completely replace web2? ›It is uncertain if Web3 will completely take over from Web2, but what is clear is that the future of the internet will be influenced by decentralization, giving power to users, and advancements in technology.
Why nobody really uses Web3 yet? ›One of the most commonly referenced limitations of Web3 today is the limited scalability and high latency of widely adopted public blockchains.
What is bad about Web3? ›However, it also brings notable disadvantages, such as increased complexity in technology and user interfaces, potential data security concerns in decentralized networks, and a digital divide exacerbated by varying access to cutting-edge technology.
Why is Web3 controversial? ›Critics of web3 see it as a breeding ground for unregulated crime and get-rich-quick Ponzi schemes that can harm vulnerable consumers. Still, others fervently hope that if they just ignore it — or worse yet, ban it — web3 will just go away. The truth about web3 lies somewhere in between these viewpoints.
Is Web3 more secure than Web2? ›
Web 3.0 is far more secure than Web 2.0.
In addition to limiting the potential for hacks and breaches, Web3 significantly limits the potential for fraud through the use of smart contracts. Digital security is vital to businesses and consumers. Web3 delivers a vastly improved security experience compared to Web2.
With Web3, a decentralized internet can be established, giving consumers more authority over their data and online activities. Blockchain technology makes Peer-to-peer transactions possible, eliminating the need for intermediaries while improving security and anonymity.
Is Web3 just crypto? ›Key aspects of Web3 include blockchain, cryptocurrencies, smart contracts and decentralized apps (DApps). Web3 opens up new possibilities in areas like decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized organizations (DAOs), social media and identity management.
Why will Web3 fail? ›Web3 failed to deliver anything but more similar ensh*ttification in the form of cryptocurrencies, NFTs and ultimately a market-fuelled distraction cobbled together on top of blockchains which is hardly the new internet that venture capitalists are determined to push as the correct rhetoric — one that is self-serving ...
Who is behind Web3? ›The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms.
Is Web3 risky? ›Security Mechanisms: The security setup of Web3 relies on spreading out data, using secure codes, and self-executing contracts to protect against common online threats. Challenges: Despite its advantages, Web3 faces security challenges such as contract code vulnerabilities and phishing scams.
What makes Web 3.0 different? ›Web 3.0 means immersing yourself in the digital experience, and it involves concepts like individual control of personal data, cryptocurrency, and decentralized record keeping on the blockchain. Whereas Web 2.0 operates on fiat money, Web 3.0 relies on cryptocurrencies and a decentralized finance (DeFi) model.
What is the difference between web2 and Web3 product management? ›In web2, product managers capitalize on the project's vision and long-term strategies. While adopting a strategic approach is great, Web3 prioritizes rapid execution over planning and strategizing. Simply put, speed of iteration precedes everything else in Web3.
What is the difference between Web 2.0 and Web 3.0 Quora? ›What are the differences between Web 2 and Web 3? Web 2 is based on the idea of users creating and sharing content online. Web 3 is based on the idea of users interacting with smart contracts and decentralized applications.
Can I learn Web3 without web2? ›Of course, you can jump right into web3 without first learning web2, but that's not recommended because you'll almost certainly encounter situations where you'll need some web2 concepts. Learning web3 without first knowing web2 will leave you feeling overwhelmed and confused.