What is Web3?
Web3 is the next generation of the internet that is decentralized and owned by its users, not by big tech companies.
Instead of relying on central servers (like Google or Facebook) to store your data and control your access, Web3 applications are built on blockchains and distributed networks.
The core shift is from a system where you are the product (Web2) to one where you are the owner and participant (Web3).
How Web3 Works with Digital Assets
Web3 gives you verifiable ownership over digital assets through tokens.
- True Ownership: In Web2, if you buy a game item, the game company can take it away or shut down your account. In Web3, your digital assets (like a song, a virtual land deed, or a club membership) are represented by tokens (NFTs or cryptocurrencies) held in your personal digital wallet.
- It's in Your Wallet: Your digital wallet is your identity and your bank. It is controlled only by you. Because the token is recorded on the blockchain, only the person with the private key to that wallet can control, sell, or transfer that asset. No central company can confiscate it.
- Smart Contracts: Most interactions run on Smart Contracts—self-executing agreements written in code. For example, a contract can automatically send the artist a royalty every time their tokenized song is resold. This removes the need for banks or lawyers as middlemen.
