What is Web3? Understand the future of Decentralization in one article.

A Brief History of Internet Evolution: From Read-Only to Read-Write to Read-Write Own

Do you remember what it was like the first time you went online? Back then, websites were just electronic bookshelves—you could only view them, not interact. This was the Web 1.0 era (1989-2004).

Then Facebook and Twitter emerged. The internet became a square - you could post, comment, and share. This is Web 2.0 (2004 to present). But the problem arose: your data and your creativity are controlled by these platform big brothers, and they make money by selling your privacy.

Now it's time for Web3. The concept, proposed by Ethereum co-founder Gavin Wood in 2014, has a simple core idea: take the internet back from a few large companies and give it to every user.

Core Features of Web3: Five Keywords

1. Decentralization — No middlemen making a profit. Blockchain has replaced centralized servers like Meta and Google. Your data is no longer monopolized by a single company; instead, it is stored in a decentralized manner, giving users complete control.

2. No Permission Needed — Democratized In the Web2 era, you had to register an account and fill out forms, and service providers had the right to refuse you. In Web3, as long as you have a wallet address, you can freely access any dApp, and no one can stop you.

3. Trustless — Based on code, not contracts Smart contracts execute automatically and are transparent and verifiable. You don't need to trust the other party or the platform because the code is public and cannot be altered by anyone.

4. Cryptocurrency Payment — Crossing Borders and Banks Transfer directly using USDT or ETH, arriving in seconds with low fees. This is financial freedom for the 1.8 billion people globally without bank accounts.

5. Ownership Economy — Your labor is rewarded In Web2, you contribute content, and the platform takes 99% of the advertising revenue. In Web3, through NFT and token incentives, creators can profit directly.

Seven Major Application Scenarios

DeFi (Decentralized Finance)

Protocols like Uniswap and Aave allow you to trade, borrow, and invest without opening a bank account. As of 2024, the total value locked in DeFi has exceeded $100 billion.

NFT & Asset Tokenization

From digital art to property deeds, anything can be put on the blockchain. Although the NFT market, which was booming in 2021, has cooled down, the real use cases (tokenization of physical assets) are just beginning.

GameFi (Play-to-Earn)

Axie Infinity and STEPN have proven the appeal of blockchain games – your gaming time can really be exchanged for money. It's not a pump-and-dump project, but a new income model.

Metaverse

Decentraland and The Sandbox are not just hype; they are building a real virtual world economic system. With the integration of VR/AR technology, the prospects are enormous.

Decentralized Social

Mastodon and Audius are challenging Twitter and Spotify—users are no longer being monitored, and creators are profiting directly.

decentralized storage

Use IPFS technology (Filecoin, Storj) instead of AWS for lower costs and higher data security.

Decentralized Identity

A MetaMask wallet address that allows seamless access to thousands of dApps, just like a passport.

Why Should Cryptocurrency Investors Pay Attention?

The economic model of Web3 is completely different:

• Tokens are stocks — Holding project tokens gives you voting rights and allows you to participate in decision-making.
• DAO Governance — Much more democratic than traditional companies, the community truly has a voice.
• Decentralized Ownership — Users are the owners, not bound by any company.

This means that the next wave of wealth opportunities may come from the appreciation of tokens from early Web3 applications.

Is it a dream or reality now?

To be honest: Web3 is still in its infancy. By 2025, the number of actual users will be less than 5% of the internet population. But the signs are clear:

• There are increasing scandals among major Web2 companies (data breaches, ad fraud)
• The crisis of user trust continues to deepen
• Cryptocurrency developers are innovating furiously.

The key question is not whether Web3 will win, but when it will win. It could be in 2-5 years, or it could be 10 years. But once mainstream adoption begins, latecomers can only sip the soup.

Key Points Summary

1️⃣ Web3 = Blockchain + Cryptography + Token Economy, essentially it is the return of power to the users

2️⃣ Three Pillars: Decentralized Ownership, Permissionless Access, Transparent Code Execution

3️⃣ There are already 7+ mature application directions, with DeFi and NFTs being the first to land.

4️⃣ For cryptocurrency investors, understanding Web3 = understanding the future flow of wealth

5️⃣ The timeline is uncertain, but the general trend is set — decentralization is the ultimate outcome of the internet.

Bottom line: Web3 is not a scam, nor is it a savior. It is simply the next version of the internet, which will change our definitions of “ownership” and “control.” Not participating now does not incur a loss, but missing out will just leave you watching the excitement.