There’s been a lot of hype around NFTs, blockchain, and crypto in recent years. This has led to one of the most common questions I hear from newcomers to the space: “What is Web3?”

The answer isn’t simple, because Web3 isn’t a single product, company, or piece of technology. Instead, it’s the next phase of the internet—a shift in how we think about ownership, value, and decentralization online.

From Web 1.0 to Web 2.0

To really understand what Web3 is, it helps to step back and look at how the web has evolved over time.

• Web 1.0 (1989–2004): This was the earliest stage of the internet. It was mostly static websites where users could only read content, not interact with it. Think of it as the “read-only web.”
• Web 2.0 (2004–Present): The web became interactive. Social media platforms, blogs, wikis, and user-generated content exploded. The internet shifted into a platform for communication, sharing, and community. But with that shift came consolidation. A handful of companies—Google, Facebook, Amazon—became the gatekeepers of the web. They control the platforms, the data, and by extension, the rules of participation.

What is Web3?

The term Web3 was first coined by Gavin Wood, Ethereum co-founder and founder of Polkadot, in 2014. He described it as a “decentralized online ecosystem based on blockchain.”

At its core, Web3 represents a new layer of the web that integrates digital ownership, decentralized identity, and peer-to-peer value exchange. Instead of depending on big corporations to manage our data, identity, and assets, Web3 shifts power back to individuals through blockchain-based systems.

Examples include:

• Cryptocurrencies like Bitcoin and Ethereum, which allow people to exchange value without banks.
• NFTs (Non-Fungible Tokens), which allow creators to prove ownership of digital art, music, or other assets.
• Decentralized applications (dApps), which run on open networks rather than centralized servers.

A Hazy Beginning

Bloomberg has described Web3 as “hazy,” and that’s a fair assessment. The truth is, the concept is still taking shape. Around the world, teams of developers, researchers, and entrepreneurs are racing to define and build the technology that could form the backbone of this new internet era.

According to Bloomberg, Web3 “would build financial assets, in the form of tokens, into the inner workings of almost anything you do online.” In other words, the internet itself would become more than just a platform for information and communication—it would also carry embedded mechanisms for ownership, value exchange, and trust.

Supporters of Web3 believe this represents more than just another tech upgrade. They see it as the foundation of a new internet—one designed to address the flaws of the old one. From centralized control to opaque data practices, the problems of Web 2.0 have become clear. Web3 aims to solve them by putting power back into the hands of users through decentralization and open protocols.

That’s both the opportunity and the challenge. Teams across the globe are experimenting with blockchain infrastructure, scaling solutions, and user-friendly interfaces to bring this vision to life. Right now, Web3 feels more like a collection of experiments than a fully realized system—but that’s exactly how previous iterations of the web began.

Why Decentralization Matters

I’ve spent over 14 years in blockchain development, and one thing I’ve seen repeatedly is the danger of centralization disguised as decentralization. Many so-called “Web3 projects” are still run by small groups with enormous control.

This defeats the purpose. The power of Web3 isn’t in building shiny new financial products that mimic banks. It’s in rethinking trust itself. A truly decentralized network doesn’t require you to trust a company, because the rules are enforced by code and consensus, not corporate policies.

If we get this right, Web3 can build a trust layer into the internet. Every transaction—whether it’s financial, creative, or informational—can carry verifiable proof without relying on third parties.

The Role of NFTs and Digital Ownership

So far, one of the most tangible examples of Web3 in action has been NFTs. They’ve allowed artists, musicians, and creators to monetize their work directly while proving ownership in a way that’s transparent and verifiable.

But this is just the start. Beyond art, NFTs could transform licensing, intellectual property, ticketing, and even identity. Imagine a world where your medical records, driver’s license, or university degree exist as secure, verifiable NFTs in your personal wallet—accessible only to you and those you choose to share them with.

What is the Future of Web3?

The future of Web3 will depend on whether we can strike the right balance between decentralization, usability, and security. Right now, blockchain technology is powerful but often inaccessible for the average person. For Web3 to succeed, it needs to feel as seamless as Web2—while protecting users’ sovereignty over their data and assets.

At XELEVEN, my team and I believe the next phase of Web3 must focus on true decentralization. That means avoiding the trap of rebuilding the same centralized systems we already have in traditional finance and tech. The vision is bigger: a fairer internet where control is distributed, not hoarded.

Final Thoughts

So, what is Web3?

It’s not a single invention—it’s a movement. A shift toward decentralization, digital ownership, and an internet where trust doesn’t come from corporations but from cryptography, transparency, and code.

The path is still unclear, but history shows that the internet has always evolved in unpredictable ways. Just as Web 1.0 gave way to the participatory Web 2.0, Web3 is likely to transform the way we interact online—whether that’s through finance, identity, art, or entirely new systems we haven’t yet imagined.

And just like the early internet, those who are willing to explore and build today will shape the future of tomorrow.