Glossary

Web3

Plain-language definition Crypto glossary

Key takeaways

Web3 describes a vision of the internet built on blockchains, in which users own their identity, data and assets directly rather than entrusting them to centralized platforms.
In a Web3 application, users connect a self-custody wallet instead of creating an account, assets like tokens and NFTs live on-chain under the user's keys, and much of the logic runs in public smart contracts.
Web3 remains an evolving idea, since real systems often mix on-chain and off-chain parts and usability and scalability are still being worked on.

Definition

Web3 describes a vision of the internet built on blockchains, in which users own their identity, data and assets directly rather than entrusting them to centralized platforms. It is often contrasted with “Web2,” the era of large platform companies.

How it works

In a Web3 application, users connect a self-custody wallet instead of creating an account with a username and password. Assets such as tokens and NFTs live on-chain under the user’s keys, and much of the application logic runs in public smart contracts. The aim is for value and control to sit with users and open protocols rather than with a single company’s servers.

Why it matters

Web3 reframes ownership and identity online, with implications for finance, gaming, social media and creator economies. It remains an evolving idea: real systems often mix on-chain and off-chain parts, and usability and scalability are still being worked out.

Example

Logging into an app by connecting a wallet, and carrying your assets between apps, is a Web3 pattern.

FAQ

Frequently asked questions

How is Web3 different from Web2?

Web2 is the era of large platform companies where users entrust their identity, data and assets to centralized servers. Web3 aims to shift that ownership and control to users and open protocols, with assets held on-chain under the user's own keys.

How do you log in to a Web3 application?

Instead of creating an account with a username and password, you connect a self-custody wallet. The wallet holds your keys, and the assets you use in the application live on-chain under your control.

Is Web3 a finished technology?

Not yet. It remains an evolving idea, and real systems often blend on-chain and off-chain components. Challenges such as usability and scalability are still being worked on.