It even has applications beyond financial transactions—for example, Web3 social networks allow users to manage their own identity, instead of being beholden to giant technology companies.
The defining characteristics of Web3 are decentralization, ownership, trustlessness, and the use of cryptocurrencies. Web3 enables users to own their data, digital assets, and even the governance of platforms via blockchain-based systems. It also eliminates the need for intermediaries, allowing for trustless transactions conducted through smart con... See more
Web3 protocols have an opportunity to do things differently, owing to the fact that they can distribute tokens to turn their users into owners, empowering them to govern the platform in alignment with their continued interests.
Whether it’s the enforcement of legal identities, platform lock-in, or more implicit social norms, the logic of individualized identity was baked into web 2.0. With the advent of web 3.0, we have a chance to do things differently. Ultimately, web 3.0 identity will revolve around questions of privacy, portability, and ownership.
If the pre-internet/web1 era favored publishers, and the web2 era favored the platforms, the next generation of innovations—collectively known as web3—is all about tilting the scales of power and ownership back toward creators and users.