Glossary: Web3

What is Web3?

Web3 is a broad label for internet services that incorporate blockchains, wallets, tokens, or smart contracts. The term has no single formal definition, and using blockchain technology does not by itself make a service decentralized or give users control of its data or infrastructure.

How blockchain-based services work

Many internet services let people publish and interact through accounts managed by a platform. Access, moderation, data portability, and service continuity depend on that service’s design and terms; a platform does not necessarily own the copyright to everything users post.

Blockchain-based apps add onchain records, wallet-based signing, tokens, or smart contracts. These can let users control keys or transfer specific onchain assets, but apps may still rely on centralized frontends, infrastructure, storage, and accounts. A wallet or contract does not guarantee ownership of linked content, portability, or immunity from restrictions.

The degree of decentralization and user control varies by service. To assess a specific app, examine its chain and contracts, upgrade and admin controls, custody model, data storage, governance, and the legal rights attached to its assets.

Who uses blockchain-based apps

Examples

1. A user signs a message with a wallet to prove control of an address to an app. The app may still store account data, and the address does not by itself identify the person.

2. An artist mints a token that points to a digital work. The token can record ownership of that token, but does not automatically grant copyright or guarantee that marketplaces enforce royalties.

3. A social protocol may let compatible apps use shared account or content data. Portability depends on protocol support, data availability, and each app’s moderation and feed choices.

4. A game may represent an item as an onchain asset. Whether players can transfer, sell, or use it outside the game depends on the contract, marketplace support, and the rights granted by the game.

Related reading

Web2 describes a broad model of interactive internet services. Blockchain-based apps may add wallets or smart contracts while still using conventional web infrastructure. Read more about Web2.

FAQs

How is Web3 commonly contrasted with Web2?

Web2 commonly describes interactive services run through platform-operated accounts and infrastructure. Web3 is an umbrella label for services that use blockchains, wallets, tokens, or smart contracts. The labels are broad: a blockchain app can still depend on centralized hosting, data, or account services.

Is Web3 the same as crypto?

No. Crypto refers to cryptographic assets and related systems. Web3 is a broader, loosely defined label for internet services that incorporate blockchains, wallets, tokens, or smart contracts; some services use crypto without fitting every idea associated with Web3.

Is Web3 actually being used right now?

Yes. People use blockchain-based services for payments, trading, lending, collectibles, and governance. Adoption and decentralization vary by application, and using a blockchain does not mean every part of the service is decentralized.

What are common criticisms of Web3?

Critiques include usability and key-management burdens, scams and security failures, volatile token incentives, uneven decentralization, privacy limits on public ledgers, and environmental or scaling tradeoffs that vary by network. The relevance of each depends on the application and chain.

Do you need crypto to use Web3?

Not always. Some blockchain apps let users create accounts or sponsor transaction fees, while other actions require a token for gas, payment, or protocol use. Requirements depend on the app and network.