What Is Web3 and Why Is Everyone Talking About It?

After decades of the Internet’s growth since 1991, we’re now entering the world of Web3, a concept that promises to change how we interact online. 

But what exactly is Web3, and why is it creating such a buzz?

Web3 in Plain Language

While Web1 was static and informational, and Web2 brought us interactive platforms, like social media, e-commerce, and streaming, Web3 aims to decentralize control. Unlike Web2, where tech giants like Google and Facebook control much of the data and digital services, Web3 empowers users by allowing them to own their data, assets, and identities on the Internet.

Web3 runs on blockchain technology, which is a decentralized, transparent ledger that records all transactions in a way that doesn’t require intermediaries. Blockchain enables smart contracts, self-executing agreements with the terms directly written into code, opening up a world of possibilities from decentralized finance (DeFi) to new ways of managing online communities and businesses. 

And it’s not just about cryptocurrencies. Web3 can radically transform everything from social media to how well-known companies use crypto payment solutions.

Why Does Web3 Gain Popularity Now?

So why is everyone talking about Web3 right now? Several factors have converged to make this the perfect moment for Web3 to gain traction. 

• Blockchain technology has matured, particularly with updates to platforms like Ethereum, which provide the necessary infrastructure for smart contracts and decentralized applications (dApps).
• The growing distrust of Big Tech, highlighted by scandals like Facebook’s Cambridge Analytica, has fueled a growing movement toward decentralized, user-controlled digital platforms.
• The rise of NFTs (non-fungible tokens) and decentralized autonomous organizations (DAOs) has played a role in bringing Web3 to the mainstream.

How Does Web3 Look in Real Life?

Real-life examples of Web3 are starting to pop up all around us, though it’s still an emerging space. Take DeFi for example: 

• Platforms like Uniswap and Aave allow individuals to lend, borrow, and trade cryptocurrencies without relying on banks or centralized exchanges.
• Play-to-earn games like Axie Infinity are letting users earn digital currency by participating in virtual economies.
• The luxury brand Gucci started accepting cryptocurrency payments in select U.S. stores in 2022, demonstrating the growing acceptance of digital currencies in mainstream commerce.
• Then there are the decentralized social media platforms like Steemit and Minds, where users can maintain ownership of their data and get rewarded for contributing – 
• Even digital art and collectibles have been transformed by NFTs, offering artists new ways to sell and monetize their work. 

Supporters and Skeptics of Web3

The Web3 movement gains momentum thanks to innovators in the tech space, from blockchain developers to venture capitalists backing decentralized projects. Communities in the cryptocurrency world, which have long advocated for a more open and decentralized internet, are also major proponents of Web3. There’s a lot of excitement about its potential to level the playing field. For example, businesses are already integrating crypto payment systems into their operations. You may see how it works in practice here.

However, Web3 also has its fair share of critics. Skeptics argue that it could be just as susceptible to centralization as Web2, given that large corporations and wealthy individuals are still heavily involved in Web3 ventures. There are concerns about the scalability of blockchain technology, as well as the energy consumption of proof-of-work systems. 

Why Web3 Matters

Web3 holds the potential to empower users in ways that Web2 never could. It promises a world where individuals control their personal data and online identities, where digital assets can be owned and traded without intermediaries, and where online platforms are more transparent and accountable.

However, there are challenges to consider. The technology is still young, and widespread adoption will require overcoming technical hurdles, such as user experience issues and the need for faster, more scalable networks. Moreover, the volatility of cryptocurrency markets, along with potential regulatory crackdowns, means that Web3’s future is still unclear.

Join a vibrant community with the sole mission to achieve financial independence.

View more

Reviewed and edited by Albert Fang.

See a typo or want to suggest an edit/revision to the content? Use the comment form below for feedback.

At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.

---

Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉

Article Title: What Is Web3 and Why Is Everyone Talking About It?

https://fangwallet.com/2025/05/27/what-is-web3-and-why-is-everyone-talking-about-it/

---

The FangWallet Promise

FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.

The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.

---

---

Become an Insider

Subscribe to get a free daily budget planner printable to help get your money on track!

Make passive money the right way. No spam.

* indicates required

First Name

Email Address *

/* real people should not fill this in and expect good things - do not remove this or risk form bot signups */

---