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What is Web3?
“Web3” or “Web 3.0” is the label given to the decentralized iteration of the internet that is emerging because of blockchain technology. Unlike Web2, with Web3 data and information is no longer owned and stored by corporations, but collectively stored between users in blockchain ledgers.
The term “Web3” was first used by Gavin Wood, the Ethereum co-founder, to describe this new era of shared information storage. Since storage=ownership, proponents of the decentralization of Web3 claim that it will bring power back to the hands of users.
There’s a financial element to Web3 too, since new financial systems built on this technology are becoming common (i.e. Ethereum). This digital financial infrastructure can be attached to a digital coin (i.e. Ethereum is attached to a coin called ether), which can be used for purchasing real and digital goods (like NFTs), paying for memberships and services associated with a brand (i.e. social tokens), or even holding an ownership stake in a decentralized organization (Decentralized Autonomous Organization).