Introduction to Web3. A Beginner's guide

Many people overlook Web3 because they assume it requires an understanding of entirely new, highly technical concepts. In reality, however, Web3 is best understood as modernised digital infrastructure designed to support today's economic and creative activity in ways that the traditional internet can no longer manage.

Web3: The Internet Built on Blockchain

Web3 is built on the same foundational technology as cryptocurrencies: blockchain. In a blockchain network, data is encrypted and distributed across numerous independent computers, known as nodes. The defining feature of this model is decentralisation. Rather than relying on a single database owned and controlled by a platform provider, blockchain networks are collectively operated by a global community of participants.

These nodes are operated by individuals or organisations who adhere to strict protocol rules. These individuals or organisations earn rewards in the network’s native token (such as BTC or ETH) and, in proof-of-stake systems, can be penalised for acting against the protocol’s integrity. As real economic value is at stake, the system incentivises accuracy, security and reliable operation.

This distributed architecture ensures that the network remains secure even when individual nodes experience issues. Although smaller or newer blockchains may be vulnerable, major networks such as Bitcoin and Ethereum have withstood attacks, stress tests and market volatility for over a decade, demonstrating significant resilience.

How Web3 is transforming the internet

The original World Wide Web (Web 1.0) was largely static. Users could only consume information published by website owners and there were limited opportunities for interaction or contribution.

Web 2.0 (Web2) introduced dynamic, user-generated content via platforms such as YouTube and Facebook, as well as blogging tools. This shift empowered millions of individuals and businesses to publish freely, build communities and disseminate ideas beyond traditional channels.

However, Web2 also concentrated power in the hands of a few platform owners. Content, user data and community interactions were ultimately controlled by centralised corporations whose business objectives did not always align with those of their users. This has resulted in content removal, account restrictions, opaque moderation practices and instability for creators and businesses who rely on these platforms.

Web3 aims to resolve these issues. In a Web3 environment, users do not depend on centralised platforms to store or own their content. Instead, data and digital assets reside on decentralised networks, enabling individuals and organisations to retain true ownership and publish or distribute content without gatekeepers.

Web3 adoption and accessibility

Many large enterprises are already integrating blockchain and Web3 technologies into their operations. For example, Walmart, Nestlé and JPMorgan Chase use blockchain to improve supply chain transparency, facilitate payments and ensure data integrity. Meanwhile, Nike’s .SWOOSH ecosystem shows how consumer brands can develop digital products and immersive experiences. Adidas has partnered with the Bored Ape Yacht Club to release limited digital items. An increasing number of companies are shifting their focus from using blockchain purely for internal efficiencies to using Web3 to develop direct, community-driven engagement models.

Web3 is not just for corporations or developers. It is open to creators, consumers, and everyday users. Creatives can mint art, music and writing directly on the blockchain, thereby securing long-term ownership and earning revenue through marketplaces such as Zora or platforms like Pump.fun. Long-form writers are publishing work via services such as Paragraph and Hive. Social engagement is also evolving through Web3-native networks such as Farcaster, which offer an open, user-owned alternative to traditional social media. Gamers can play blockchain-enabled games, earn rewards and create their own experiences on ecosystems such as Base and Solana. Developers benefit from open, modular infrastructures. Web3 development is transparent: the code is public, the data is accessible, and existing tools can be forked or extended. A single developer can launch a functional product without relying on a traditional back-end team.

The Bottom Line

Web3 reduces the influence of centralised intermediaries and returns control and ownership to users. It creates significant opportunities for developing new digital products, building direct customer relationships, unlocking innovative revenue models and experimenting with forward-looking business strategies.

The early experimentation phase is well and truly over. The shift is well underway. The question for businesses and individuals is whether they will participate now or wait until it is too late.

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This content is for informational purposes only and should not be taken as investment advice. It is crucial for you to conduct your own research and due diligence to make informed decisions, as any investment will be your sole responsibility. Please review our disclaimer and risk warning