The internet has gone through a few major phases, even if most people never labeled them at the time. We just used what was available. But today, when people talk about Web3, they’re really talking about the next step in how the internet works and who controls it.
To understand what Web3 is, it helps to briefly look at what came before it. The early internet, often called Web1, was mostly static. You could read information, visit websites, and consume content, but interaction was limited. Websites were more like digital brochures than living platforms. There wasn’t much user participation, and ownership wasn’t even part of the conversation.
Then came Web2, which is the version of the internet most people use today. This is the era of social media, cloud platforms, streaming services, and online marketplaces. Web2 made the internet interactive. Users could post content, comment, transact, and build communities. But there was a tradeoff. Control became centralized. Platforms owned the data, set the rules, and decided who could participate and under what conditions.
Web3 is a response to that centralization.
At its core, Web3 is about shifting ownership and control away from large intermediaries and back toward users. Instead of trusting a single company to manage identities, data, and transactions, Web3 uses blockchain technology to create systems where rules are enforced by code and verified by networks rather than corporations.
When people ask “what is Web3,” the simplest answer is that it’s an internet built on decentralized infrastructure. Applications don’t live on a single server. Data isn’t owned by one platform. Value can move directly between users without requiring permission from an intermediary. Trust is created through cryptography and transparency instead of brand reputation alone.
One of the defining characteristics of Web3 is user ownership. In Web2, if you build an audience on a platform, that platform ultimately controls access to it. Your account can be limited, monetization rules can change, or content can be removed entirely. In Web3, identity and assets can exist independently of any single application. Wallets replace accounts, and users retain control over their digital property.
Another major shift is how applications are structured. Web3 applications, often called dApps, typically run on blockchains or decentralized networks. The backend logic is handled by smart contracts, which are programs stored on-chain that execute automatically when certain conditions are met. This removes the need for centralized servers to enforce rules behind the scenes.
Smart contracts also make behavior predictable. Anyone can inspect the code and understand how an application works. This transparency changes the relationship between users and platforms. Instead of trusting a company’s promises, users can verify the rules themselves.
Web3 is also closely tied to the idea of permissionless access. Anyone with an internet connection can interact with Web3 protocols without needing approval. There are no sign-up forms, no centralized gatekeepers, and no regional restrictions imposed by platforms themselves. This open access is one of the reasons Web3 has gained global attention, particularly in regions where traditional financial or digital infrastructure is limited.
Of course, Web3 is not just one thing. It’s an umbrella term that includes decentralized finance, digital identity, decentralized storage, governance systems, and infrastructure layers that support all of it. Some projects focus on payments and financial services, while others focus on building the rails that allow decentralized systems to function reliably at scale.
This is where infrastructure-focused blockchain projects become especially relevant. Web3 cannot exist without strong underlying systems that handle validation, coordination, and security. Projects like PYRAX operate within this layer of the ecosystem, focusing on decentralized network principles rather than consumer-facing hype. Web3 depends on these foundational systems to function as intended.
Another important aspect of Web3 is governance. In traditional platforms, decisions are made internally by executives or shareholders. In Web3, governance can be decentralized. Token holders or network participants may have a direct say in protocol upgrades, parameter changes, or long-term direction. While this model is still evolving, it represents a fundamental shift in how digital systems are managed.
Critics often point out that Web3 is still early and imperfect, and that’s true. User experience can be clunky, onboarding is confusing for newcomers, and scams have damaged trust. But these challenges are part of any technological transition. The internet itself faced similar skepticism in its early days.
What matters is the direction Web3 is pushing toward. More transparency, less reliance on centralized authorities, and systems that allow users to own their data and digital assets by default. Even if Web3 doesn’t replace Web2 entirely, many of its principles are already influencing how new platforms are built.
Over time, Web3 may become less visible as a concept and more invisible as infrastructure. Users may not think about wallets, smart contracts, or blockchains any more than they think about servers today. But the underlying shift in ownership and control will still be there.
Understanding what Web3 is helps cut through the noise. It’s not just about crypto prices or speculation. It’s about rebuilding parts of the internet in a way that reduces dependency on centralized power and gives users more agency. Whether that vision fully materializes or not, Web3 is already reshaping how developers, investors, and communities think about the future of the web.