Web3

CORE IDEAS OF WEB3

• Decentralized. Instead of the internet controlled and owned by centralized entities, ownership gets distributed amongst its builders and users.

• Permissionless. Everyone has equal access to participate in Web3, and no one gets excluded.

• Native Payments. It uses crypto for spending and sending money online instead of relying on outdated infrastructure of banks and payment processors.

• Trustless. It operates using incentives and economic mechanisms instead of relying on trusted third-parties.

WHY IS WEB3 IMPORTANT?

• Ownership. Web3 gives you ownership of your digital assets in an unprecedented way. Web3 allows for direct ownership through NFTs.

• Censorship Resistance. On Web3, your data lives on the blockchain. When you decide to leave a platform, you can take your reputation with you, plugging it into another interface that more clearly aligns with your values.

• Decentralized Autonomous Organizations (DAOs). You can own the platform as a collective, using tokens that act like shares in a company. 

• Identity. Control your digital identity with an Ethereum address and ENS profile. Using an Ethereum address provides a single login across platforms that is secure, censorship-resistant, and anonymous.

• Native Payments. Web3 uses tokens like ETH to send money directly in the browser and requires no trusted third party.

LIMITATIONS

• Accessibility. Web3 is less likely to be utilized in less-wealthy, developing nations due to high transaction fees. The technology is ready, but we need higher levels of adoption on layer 2 to make Web3 accessible to everyone.

• User experience. The technical barrier to entry to using Web3 is currently too high. Users must comprehend security concerns, understand complex technical documentation, and navigate intuitive user interfaces.

• Education. Web3 introduces new paradigms that require learning different mental models than the ones used in Web2.0. Web3 isn't difficult, but it is different.

• Centralized infrastructure. The Web3 ecosystem is young and quickly evolving. As a result, it currently depends mainly on centralized infrastructure (GitHub, Twitter, Discord, etc.).