When you hear people talking about crypto, you likely hear the term "Web3" being thrown around.

What exactly is Web3 & what makes it so special?

To best answer this question, we first have to establish what Web1 & Web2 are.

TLDR;

• Web1 - past version of the Internet
• Web2 - version of the Internet that most of us know today (dominated by tech giants)
• Web3- the next phase of the Internet, pioneered by crypto & currently being built

<aside> 💡 Web3 is the internet owned by the builders and users, orchestrated with tokens.

• Packy McCormick

</aside>

How do Web1, Web2 & Web3 differ from one another?

Let's dive in:

• As a result, most users were passive consumers of content
• Internet services were built on open protocols controlled by the Internet community
• These protocols were also stateless— meaning they didn't capture user data | - This phase of the internet was social & collaborative— all about interactivity & users (think: creating content)
• "Downsides" of this phase: (1) Internet dominated by tech giants that provide services in exchange for your personal data (2) centralized platforms have the ability to change rules on creators, taking away their audience/profits | - An Internet built on decentralized networks (https://shimmer-bean-29e.notion.site/Intro-to-NEAR-Blockchain-101-e71e589027a04de18b6d40a8b4a09f35 is the backbone of Web3)
• Key innovation of these networks: the creation of platforms that no single entity controls, yet everyone can still trust (since every user/operator must follow the same set of rules called https://shimmer-bean-29e.notion.site/Intro-to-NEAR-Blockchain-101-e71e589027a04de18b6d40a8b4a09f35)
• Another way to think of Web3 is decentralized apps (dapps) that run on the blockchain. These dapps allow anyone to participate without monetizing their personal data— instead, users own their data
• Users & builders own pieces of the platforms they use through acquiring tokens (like company shares) | | Who gets most of the value | users & builders | a handful of companies (see examples below) | users & builders | | Examples (websites/companies) | Forums, directories, portals, email/chat, etc. | - platforms where users create content– e.g. YouTube, FB, Twitter, etc.
• rapid growth of for-profit tech companies, e.g. Google, Apple, Facebook, Amazon | https://shimmer-bean-29e.notion.site/ffb4f1a180cf4052bd75d5471c65e842 marketplaces, https://shimmer-bean-29e.notion.site/9fbea459d8ef496ab461f63f686dcbcb tools, games & other dapps on different blockchains, e.g. Ethereum, NEAR |

Sources: Decrypt, Not Boring, Crypto Fundamentals & NFTs, Ethereum.org

We are now at the beginning of the web3 era, which combines the decentralized, community-governed ethos of web1 with the advanced, modern functionality of web2. -Chris Dixon