What Even IS Web3?
Sit back witches, pour yourself a cocktail, and get ready. We’re demystifying one of our most frequently asked Crypto Witch Club community questions … what’s Web3 and how does it relate to cryptocurrency, the blockchain, and NFTs?
The next iteration of the internet is here …
Let’s define Web1, Web2, and Web3.
Web 1: Read-only
Web1 is the earliest form of the internet — ‘born’ in the 1980’s when a collection of three networks were linked by a common protocol for the first time — ARPANET, Packet Radio, and Packet Satellite. Remember dial up AOL, jamming your phone lines, and ‘free minute’ CDs in your mailbox? That’s mostly still Web1. Web1 allowed us to use the internet as a source of information (“read only”).
Web 2: Read and Write
Web2 is much of the internet as we know it today. Enter chat rooms, e-commerce (with checkout capabilities), live customer support, and social networking apps like Friendster (RIP), MySpace, and Facebook. Web2 turns towards participation, with user-generated content and culture. Web2 allows us to communicate with each other and carve out our own personal spaces on the internet (“read and write”).
Web 3: Read, Write, Own
Web3, also known as the “decentralized web” or “Web 3.0”, offers an upgrade to Web2 by layering digital ownership and decentralization over elements of Web2 (social media, financial services, digital memberships, etc). Web3 is not an entirely different system than Web2 — it’s simply an evolution of the internet designed to be more decentralized, secure, and user-controlled than its predecessors. Web3 allows us to own our digital goods (“read, write, own”).
Web3 is built on top of the blockchain, a decentralized and distributed ledger that enables secure and transparent transactions without the need for intermediaries. Web3 is not owned or controlled by s single entity, but rather by a network of users who work together to maintain its security and functionality. (Teamwork makes the dreamwork, right?)
Decentralized applications (DApps) are apps that run on the blockchain. These DApps provide users with more control over their data and privacy, and more transparency + accountability in online interactions. Web3 is democratic and user-centric — empowering individuals and communities, while reducing the power and influence of centralized entities.
DApps are Fetch
What Falls Under the Web3 Umbrella?
Web3 is a broad term that encompasses a variety of technologies, concepts, and applications. Elements that fall under the umbrella of Web3 include:
The Blockchain: The foundational technology that underpins Web3. It is a decentralized and distributed ledger that enables secure and transparent transactions without the need for intermediaries.
Decentralized apps (DApps): Apps that run on the blockchain and are designed to be more transparent, secure, and user-controlled than traditional web applications.
Cryptocurrencies: Digital assets used as a medium of exchange in Web3. Almost all cryptocurrencies run on the blockchain and allow users self-custody of their funds.
Decentralized finance (DeFi): A subset of dApps that provide financial services without the need for intermediaries, such as banks or brokerages.
Identity management: Web3 seeks to provide users with more control over their identity and personal data, allowing them to share their information on a need-to-know basis.
Interoperability: The ability for blockchain networks and dApps to communicate with each other seamlessly, enabling the creation of a truly decentralized and interconnected web.
When you finally understand decentralization
The Power of Digital Ownership = The Magic of Web3
When you own something, you treat it differently. Digital ownership in Web3 means we can access, use, and share our funds, data, digital files, collectibles, and more without requiring a third party. We can prove ownership, grant ownership, control scarcity + supply, and be paid + rewarded for the content and creative materials we put into the world. (Majorly liberating!)
What doesn’t digital ownership look like? (Web2)
Let’s look at Web2 e-commerce platform Amazon.
From a consumer perspective: Hypothetically, we purchase Mean Girls off Amazon. We pay $20.00 for the movie file and, because we purchased it on Amazon, have 24/7 access to it. However, we only can access our movie if Amazon allows that access (and continues to allow that access). You can lend that movie out, resell it, or trade it in Web2.
From a creator perspective: Hypothetically, you write and design an e-book. You decide to publish that e-book on Amazon’s Kindle platform. Because you are publishing on a centralized platform and Amazon controls the rules, your royalty rate is set by Amazon and your digital product can only live on a device supported by or compatible with Amazon. (Amazon’s rate that they take from each sale varies from 30% — 70% depending on product type of total cost of product.)
How is digital ownership in Web3 different than Web2?
Opportunity for self-custody of digital assets
Proof of undisputed ownership
Ability to resell digital assets
You own the digital assets (can remove from the platform)
So, what does digital ownership mean for creators, artists, and musicians?
Ongoing royalty rates through smart contracts on resells
Ownership and control over creative content (no censorship)
The ability to authentically connect with your community without interference from a third party platform
When you finally understand digital ownership
Want to learn more about Web3 and what others are building in the Web3 space? Find resources below and join our community to connect with fellow Web3 witches that are creating, building, and working in the blockchain space.