How is Web3 fundamentally built on Blockchain?

The Internet has gone through three distinct stages of development. Initially, there was Web 1.0 - the “read-only” information era, where users could not interact or create content. Then came Web 2.0 - the age of centralized social platforms, where users became content creators but lost control over their personal data. Now, we are entering Web3 - a new internet that promises to return power to users, and the relationship between blockchain and web3 is key to realizing this.

Why is Web2 Becoming Obsolete?

The current Web system has profound flaws. Power is concentrated in the hands of a few tech giants - they control user data, decide who gets to speak, and who gets their accounts locked. These companies use personal information to build profiles, sell ads, and generate huge profits from your privacy.

In addition, content censorship, account blocking, or post deletion occurs arbitrarily. Users do not have control mechanisms, nor is there transparency about how their data is handled. This is why the connection between blockchain and web3 becomes important - it provides a solution.

Blockchain And Cryptocurrency: The Tools of Web3

Web3 is built on three core principles: decentralization, permissionless, and trustless. Blockchain is the perfect technology to achieve these three goals.

Decentralization - Blockchain distributes information across thousands of nodes instead of being centralized at a single central server. No company, no government, can control the entire network. The public ledger of the blockchain allows anyone to verify the accuracy of data without needing to trust any third party.

No need for permission - Blockchain applications are open source. Anyone in the world can use them without needing permission from any company. Users in Afghanistan or Venezuela can access stablecoins, send money, or participate in DAOs just like those in developed countries.

No need to trust - You do not need to trust a bank or intermediary. Instead, you trust the mathematics and cryptography of the blockchain. Transactions are confirmed by the network through a consensus mechanism, not by a company with vested interests.

Cryptocurrency: What to Do in Web3?

Cryptocurrency is not just a digital asset for trading. They serve as the native payment infrastructure of Web3. Unlike Web2 payment systems that rely on banks and intermediaries, cryptocurrency payments are instantaneous, global, and do not require permission from anyone.

In addition, cryptocurrency can be programmable. A token can serve multiple functions - it is a means of payment, a governance tool, or a proof of ownership. For example, the token holders in a DAO can vote on organizational decisions without a central authority. All votes are recorded on the blockchain, completely transparent.

Digital Ownership: A Paradigm Shift

In Web2, you only “rent” things. Social media accounts, images, and game collections can be deleted at any time if the company decides to shut down or change its policies. Blockchain completely changes this.

With a cryptocurrency wallet, you truly own your digital assets. No one can take them away from you unless you allow it. NFTs allow you to own and verify unique digital items - from artwork to in-game characters. Anyone can check the public blockchain to verify that you own those things.

Anti-Censorship: The Story of Freedom

Blockchain is designed to be censorship-resistant from the ground up. Once data is written onto the Ethereum or Bitcoin blockchain, it is nearly impossible to delete or alter it. This has significant implications.

A journalist in a dictatorship can publish on the blockchain without fear of being censored. A person denied service by a bank for political reasons can use cryptocurrency to transact. A censored community can organize through a DAO without government interference. This is the true power of blockchain.

Does Web3 Need Blockchain?

Other technologies can also help build a better Web3. Augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT) can make the internet more connected to the physical world. A true metaverse can integrate all of these technologies.

However, if the metaverse is controlled by a central company - just like Zuckerberg holds Facebook - then it is merely a 3D version of Web2. Blockchain and cryptocurrency are what make Web3 truly decentralized and belong to the users.

The relationship between blockchain and Web3 is essential because blockchain provides an unalterable and uncontrollable infrastructure. It is the backbone of a truly decentralized Web3.

DAO: How to Organize in Web3

Blockchain allows for a completely new form of organization - Decentralized Autonomous Organization (DAO). Instead of a CEO or board of directors making decisions, DAO members vote based on the number of tokens they hold. All decisions, all funds, and all activities are displayed on the blockchain.

A DAO can manage investment funds, develop software, or even run an entire company. It eliminates the need to trust leadership - trusting in code is enough. This is how democratic organization works in the digital age.

What Will Web3 Look Like?

Web3 users may not notice the blockchain behind the scenes. Just like today you don’t need to know about the HTTP protocol or servers to use Facebook, in the future, you also won’t need to know where the blockchain is running.

But the main difference is: you own your data. You control your digital identity through NFTs. You trade cryptocurrency without the need for banks. You participate in the community through DAOs. You cannot be censored or banned from a platform because a company decides so.

Blockchain is the platform that allows all of this to happen. It is the bridge between the present (Web2.0 centralized) and the future (Web3 decentralized).

Conclusion

The connection between blockchain and web3 is not coincidental - it is an organic relationship. Web3 needs blockchain because blockchain is the only technology today that can create a truly decentralized system, permissionless, and trustless.

However, Web3 is still primarily a vision rather than a reality. But blockchain technology and cryptocurrencies are ready. What remains is you - the user - to continue building, experimenting, and pushing the boundaries of what is possible.

The future of the internet is decentralized. And blockchain is the key.