What is Web3??

Curious about Web3? Learn what it is, why it matters, and how it empowers people to own their data, money, and future.

Introduction

So the rumours are true, you don’t know what Web3 is.

No worries. This blog will be your guide to understanding what Web3 is and why it matters, even if you're new to the concept.

Let’s begin.

Right now, every time you go online, you’re handing over your personal data, your identity, your behavior, even your money, to big tech platforms like Meta (Facebook), X (Twitter), Google, and so on.

They track your online presence, monetize the information they extract from you, and leave you with little control over your personal data.

Web3 flips that script.

It shifts the power from centralized entities like the companies above, and puts you in control of your data, identity, money, and much more.

In Web2, you are the product. In Web3, you are the owner.

In this article, we’ll help you understand the following:

What Web3 really means
How Web3 is different from Web1 and Web2
Web3 use cases (even in Nigeria)
And how you can be part of this decentralised internet era

What is Web3?

Web3 is the short form of Web 3.0 and is the third generation of internet technologies. It represents a shift from a centralized web (i.e. controlled by a few companies), to a decentralized web powered by blockchain technology where users have ownership and control over their data and digital assets.

Wait. Blockchain technology? What does that mean?

Sure.

Blockchain is like a digital notebook that everyone can see, but no one can erase, cheat, or manipulate for personal gains.

It is a special kind of record book on the internet where:

Every new thing that happens gets written down (like a page in a notebook),
Everyone has a copy of the notebook,
And once something is written, it can’t be changed or manipulated.

Blockchain keeps track of stuff (like money, messages, or actions) in a way that is safe, fair and open to all.

So, Web3 is the internet built on blockchain.

In Web3:

You don’t just use apps, you help own them.
You don’t give away your data for free, you control it and can even earn from it.
You don’t need permission from a company to do things, you just connect your device and go.

Web3 is the internet that is more fair, more free, and built for people, not just big tech companies.

You can compare it to moving from renting a house (Web2, where your data lives on someone else's server) to owning your own home (Web3, where your data and digital assets live on your own server).

For added knowledge:

The term "Web3" was coined in 2014 by Gavin Wood, a co-founder of Ethereum. He envisioned a web where users could interact securely and privately without relying on centralized authorities. His vision emerged from a growing concern that the internet had become too corporate, too controlled, and too invasive.

Web1 to Web3: The Evolution

Let’s break it down:

Web1 (The Read-Only Era): This period spanned from the early 1990s to the early 2000s. Websites were static, like digital billboards. You could read stuff, but there was no interactivity. It was like visiting a digital library, you could browse, you could read, but you couldn’t give you couldn’t comment, post, or interact much.

You = a quiet reader.

Web2 (The Read-Write Era): This is the internet most of us grew up with. Social media, blogs, YouTube, e-commerce. It gave people the power to create and interact with each other. But with this came centralization. Your data, content, and digital life are mostly controlled by platforms like Meta (Facebook), Google, and Amazon. You don’t own your content, platforms track everything you do, and they make billions using your data.

You = content creator, but not the owner.

Web3 (The Read-Write-Own Era): Now we’re talking about an internet where users don’t just consume or contribute, they own. Through blockchain (our trusted digital notebook), you can own your content. Control your data, earn from your actions, join open communities without a middleman, trade assets peer-to-peer, and participate in decentralized applications (dApps).

You = owner, voter, builder, earner.

Why Does Web3 Matter?

Let’s be honest: most people don’t care about the backend of the internet. They care about what affects them. So, why should the average person care about Web3?

Ownership: In Web2, your posts, photos, and even messages are hosted by platforms. They can delete them or ban you. In Web3, using blockchain, your data is yours. For example, if you mint your art as an NFT, no one can take it from you.
No Middlemen: With smart contracts, people can transact directly. For example, sending money to someone in another country without a bank, PayPal, or Western Union, just wallet to wallet.
Inclusion: Over 1.4 billion adults worldwide lack access to traditional banking. Web3 (via crypto wallets and DeFi platforms) can give them financial services using only a smartphone and the internet.
Transparency: Every transaction on the blockchain is visible and traceable. It’s like keeping the books open all the time. This is powerful for fighting corruption and fraud.
Community-Driven: Many Web3 projects are governed by decentralized autonomous organizations (DAOs), where users vote on decisions.

Global Adoption vs Nigerian Reality

Globally, Web3 is gaining momentum. Startups are raising millions, NFTs are being sold for crazy amounts, and entire communities are forming around decentralized projects. But what’s even more interesting is the level of adoption in places like Nigeria.

In Nigeria, the hunger for financial alternatives is real. With inflation, foreign exchange restrictions, and limited access to credit, Nigerians have turned to Web3 technologies, especially crypto, as a lifeline.

According to a 2023 report by ConsenSys and YouGov and other sources:

Awareness: 99% of Nigerians surveyed have heard of cryptocurrencies, making Nigeria the most crypto-aware nation globally.
Ownership: 76% of Nigerian respondents have either held or currently hold cryptocurrencies.
Investment Interest: 90% expressed interest in investing in cryptocurrencies within the next year.
Blockchain Understanding: 70% reported understanding the fundamental concepts of blockchain technology.
Web3 Familiarity: Only 8% are well-versed in Web3, indicating a gap between cryptocurrency awareness and deeper understanding of decentralized technologies.

Web3, in Nigeria, is now more than a trend; it's survival, opportunity, and empowerment.

Real-Life Use Cases

Practical examples include:

Remittances: Instead of paying 10% fees to send money across borders using traditional banks and payment platforms, users can send stablecoins via Web3 wallets and off-ramp exchanges like Cryptonia in seconds and for free.
Digital Identity: Platforms like Polygon ID or ENS (Ethereum Name Service) help people manage their digital presence and secure login without passwords.
Play-to-earn gaming: Games like Axie Infinity and The Sandbox allow users to earn tokens by playing. In places like the Philippines and Nigeria, people actually made an income during lockdowns from these games.
Decentralized Finance (DeFi): Users can borrow, lend, and earn interest —all without banks. Imagine putting your money in a protocol and earning better annual yield compared to the peanuts banks offer.

Challenges and Criticism

Web3 is great, but everything has its challenges and shortcomings. Here are a few:

Complexity: Crypto wallets, seed phrases, gas fees, and many more. Most people struggle with the learning curve.
Scams and Hacks: With freedom comes risk. There have been multiple rug pulls, hacks, and scams in the Web3 space. The lack of centralization means no one can intervene when anything happens. Whatever is lost is lost forever.
Environmental Impact: Although many chains are transitioning to energy-efficient systems (like Ethereum's shift to Proof-of-Stake), some platforms still consume a large amount of power that discharges unhealthy elements into the environment.
Regulatory Gray Areas: Governments are still figuring out how to regulate Web3. This creates uncertainty for investors and developers.

How to get started with Web3

If you're ready to explore Web3, here’s how to start:

Create a Wallet: Try MetaMask, Trust Wallet, or Coinbase Wallet. These let you interact with dApps and store tokens.
Join a Community: Follow local and global Web3 communities on X (Twitter) like Superteam , and attend local meetups.
Start with Learning: Websites like Cyfrin Updraft, LearnWeb3.io, or even YouTube channels like Whiteboard Crypto can help.
Experiment Safely: Start with small amounts of money. Try swapping a token on a decentralized exchange.
Think Long-Term: This isn’t a get-rich-quick scheme. Web3 is about participating in a new internet culture that will evolve over the next decade.