Depending on who you ask, the definition of Web3 wildly varies from “a new buzzword that crypto scammers use” to “the next big thing in the history of interwebz”.

I’m here to tell you that both are true. And I’m not gonna pretend that Web3 is a utopian dream where only good projects emerge because that is simply not the reality of it. Web3 is a tool… it can be used for either good or bad and a lot of gray areas in between. But it is one powerful tool, so today I’m going to dissect what makes a ‘good’ use of this technology.

Before I make this explainer, let’s make sure we’re on the same page and are talking about the same thing:

What Web3 is NOT: cryptocurrencies and crypto trading. While cryptocurrencies are a part of the space, web3 isn’t an uber-bullish notion that every token must go up in value. Ask yourself deeper questions before you get hyped, “What is the utility of this token and why are people buying it?” Sometimes it only takes a few probing questions to realize that a lot of these projects are only built for the sole purpose of making money for its creators and early investors without bringing any benefit for the greater public.

Ok, now we’ve gotten that out of the way, let’s try to define what Web3 is in the context of previous internet functionalities:

Web1 - A read-only web. This is how the early interned was initially intended to be. There are static websites to disseminate information but there is no participation from the user.

Web2 - A read-and-write web. This is where things started to explode because now the user is not a mere passive consumer of information but a source of data. Users can now post their content, get tracked for their activities, and have unique experiences inside the platform they’re in. The problem is that all these data can be accessed and sold by the companies who run the centralized servers from behind.

Web3 - A read-write-and-own web. A new internet paradigm where users can own digital assets (which can be anything from game items to one’s own identity) through their wallets. Instead of relying on centralized authorities, the system runs on code and these code utilize mechanisms and game theory to consistently incentivize and punish behaviors that are beneficial/detrimental to the system.

I hab a bad back. Even as a kid, I slump while I walk. And while I always get good grades in school my posture gives away the fact that I’m not always sure of myself. Couple that with lack of social skills and the involuntary smile whenever I’m uncomfortable, and you got the perfect recipe for being the least believed person practically anywhere you go.

Why am I telling this?

Because the aggregate of these experiences is how I got sucked into Web3. In a centralized world, people make the judgement. And while most of the time they don’t act out of malice, their judgements are always prone to biases and fallacies leading them to bad decisions. So I learned the hard way that it is in everyone’s best interest to make a system that doesn’t rely on a central authority’s judgement, but instead uses an architecture where the rules are clearly laid out and are executable, and authority is distributed.

Web3 offers a dream for donkeys with bad backs. Finally, we have a mechanism that doesn’t rely on mere trust and beliefs but on provability. Blockchain and decentralization enables anyone in the network to objectively verify things and have everyone subjected to the same hardcoded rules without special, subjective exceptions.

Betting on web3 and blockchain technology is a bet for everyone’s need for transparency, self-sovereignty, and inclusivity.

In this world full of breaches in user privacy, where all the things you posses are at the mercy of centralized authorities, where deepfakes can easily be used for mass deception… we all need a little decentralization and ownership to bring back this imbalance of power to a healthier level.

That being said, these are the things and concepts that I think represents the role of Web3 in disrupting the way things are done today:

A centralized system is only as good as the one who holds the decision-making power over it. While centralization itself is not a bad thing, there are certain cases where it is better to have this power and ownership distributed among the users, builders, and stakeholders to align the incentives and risks to the actual decision making process.

Permissionlessness means that everyone has equal access to the system as long as they follow its rules and that there are no gatekeepers to censor who can be part of Web3 and who cannot be.

This property of Web3 enables people to be part of the same system without needing to trust that the others will cooperate. How is this made possible? By utilizing game theory and mechanisms to incentivize honest behavior and punish the malicious ones.

When you truly own something, it means no one can take it away from you without you giving it away. Ask yourself: do you truly own your data if your platform or service provider can easily sell it and use it without your knowledge? Do you truly own your money if your bank can close your account any time? Do you truly own your digital creations if they can easily be copied and reposted by anyone? Web3 solves the ownership problem by having all your digital assets singularly managed inside your own wallet.

Immutability means that something is irreversible and cannot be tampered with. The history of the transactions in the blockchain cannot easily be changed in any form by anyone with a vested interest. Doing so would require an attack so expensive, it will be totally impractical.

…And these things, mah frens, iz why Web3 is such a big playground that continues to fascinate a lot of people. It’s not always because of the money. When something about these concepts resonate with your own values, it will be unavoidable to get sucked into the space.

Can you feel the pull now? Give in. It’s a deep, crazy rabbithole down here, but it’s worth the jump.

Depending on who you ask, the definition of Web3 wildly varies from “a new buzzword that crypto scammers use” to “the next big thing in the history of interwebz”.

I’m here to tell you that both are true. And I’m not gonna pretend that Web3 is a utopian dream where only good projects emerge because that is simply not the reality of it. Web3 is a tool… it can be used for either good or bad and a lot of gray areas in between. But it is one powerful tool, so today I’m going to dissect what makes a ‘good’ use of this technology.

Before I make this explainer, let’s make sure we’re on the same page and are talking about the same thing:

What Web3 is NOT: cryptocurrencies and crypto trading. While cryptocurrencies are a part of the space, web3 isn’t an uber-bullish notion that every token must go up in value. Ask yourself deeper questions before you get hyped, “What is the utility of this token and why are people buying it?” Sometimes it only takes a few probing questions to realize that a lot of these projects are only built for the sole purpose of making money for its creators and early investors without bringing any benefit for the greater public.

Ok, now we’ve gotten that out of the way, let’s try to define what Web3 is in the context of previous internet functionalities:

Web1 - A read-only web. This is how the early interned was initially intended to be. There are static websites to disseminate information but there is no participation from the user.

Web2 - A read-and-write web. This is where things started to explode because now the user is not a mere passive consumer of information but a source of data. Users can now post their content, get tracked for their activities, and have unique experiences inside the platform they’re in. The problem is that all these data can be accessed and sold by the companies who run the centralized servers from behind.

Web3 - A read-write-and-own web. A new internet paradigm where users can own digital assets (which can be anything from game items to one’s own identity) through their wallets. Instead of relying on centralized authorities, the system runs on code and these code utilize mechanisms and game theory to consistently incentivize and punish behaviors that are beneficial/detrimental to the system.

I hab a bad back. Even as a kid, I slump while I walk. And while I always get good grades in school my posture gives away the fact that I’m not always sure of myself. Couple that with lack of social skills and the involuntary smile whenever I’m uncomfortable, and you got the perfect recipe for being the least believed person practically anywhere you go.

Why am I telling this?

Because the aggregate of these experiences is how I got sucked into Web3. In a centralized world, people make the judgement. And while most of the time they don’t act out of malice, their judgements are always prone to biases and fallacies leading them to bad decisions. So I learned the hard way that it is in everyone’s best interest to make a system that doesn’t rely on a central authority’s judgement, but instead uses an architecture where the rules are clearly laid out and are executable, and authority is distributed.

Web3 offers a dream for donkeys with bad backs. Finally, we have a mechanism that doesn’t rely on mere trust and beliefs but on provability. Blockchain and decentralization enables anyone in the network to objectively verify things and have everyone subjected to the same hardcoded rules without special, subjective exceptions.

Betting on web3 and blockchain technology is a bet for everyone’s need for transparency, self-sovereignty, and inclusivity.

In this world full of breaches in user privacy, where all the things you posses are at the mercy of centralized authorities, where deepfakes can easily be used for mass deception… we all need a little decentralization and ownership to bring back this imbalance of power to a healthier level.

That being said, these are the things and concepts that I think represents the role of Web3 in disrupting the way things are done today:

A centralized system is only as good as the one who holds the decision-making power over it. While centralization itself is not a bad thing, there are certain cases where it is better to have this power and ownership distributed among the users, builders, and stakeholders to align the incentives and risks to the actual decision making process.

Permissionlessness means that everyone has equal access to the system as long as they follow its rules and that there are no gatekeepers to censor who can be part of Web3 and who cannot be.

This property of Web3 enables people to be part of the same system without needing to trust that the others will cooperate. How is this made possible? By utilizing game theory and mechanisms to incentivize honest behavior and punish the malicious ones.

When you truly own something, it means no one can take it away from you without you giving it away. Ask yourself: do you truly own your data if your platform or service provider can easily sell it and use it without your knowledge? Do you truly own your money if your bank can close your account any time? Do you truly own your digital creations if they can easily be copied and reposted by anyone? Web3 solves the ownership problem by having all your digital assets singularly managed inside your own wallet.

Immutability means that something is irreversible and cannot be tampered with. The history of the transactions in the blockchain cannot easily be changed in any form by anyone with a vested interest. Doing so would require an attack so expensive, it will be totally impractical.

…And these things, mah frens, iz why Web3 is such a big playground that continues to fascinate a lot of people. It’s not always because of the money. When something about these concepts resonate with your own values, it will be unavoidable to get sucked into the space.

Can you feel the pull now? Give in. It’s a deep, crazy rabbithole down here, but it’s worth the jump.