Web 3 is the decentralized internet, which is built on cryptocurrencies and decentralised applications (dApps). It gives people the ability to own online digital assets. The best way to understand Web 3 is to learn about the progression from Web 1.
Difference Between the Web Versions
Known as the static web. This is the first version of the internet which only had read only webpages. It looked and felt very basic, with no interactive features. Information was also hard to find.
Also known as the dynamic web. This was a huge step forward from Web 1 as users could now interact with web pages as they had read a write functions. It also meant that users could communicate with each other.
This provides us with the ability to now own digital assets on the internet. Web 3 uses concepts that are frequently used in the world of crypto, such as blockchain technologies.
Different uses for Web 3 Technologies
Decentralized Finance (DeFi):
Web 3 could potentially change the financial sector. It would basically cut out the need for a middle man (bank) to make a transaction. Therefore the transaction would be peer to peer.
Non-Fungible Tokens (NFTs) are digital assets that can be owned and traded via the internet.