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GLOSSARY · BLOCKCHAIN & WEB3

Web3

A set of technologies for interacting with blockchain and decentralized applications from the browser.

WHAT IS IT? · FOR DUMMIES

Web3 is the new way of using the Internet in which you have control. Instead of relying on companies like Google or Facebook to save your data or allow you to access services, Web3 allows you to connect directly to applications using your own wallet. You can buy, sell, vote, play or invest without intermediaries and with greater privacy.

WHAT IS IT? · PRO

Web3 is a decentralized internet paradigm based on blockchain technologies that allows users directly interact, own and operate about digital applications and assets, without relying on centralized intermediaries. On a technical level, Web3 is comprised of a set of protocols, libraries and standards —how web3.js, ethers.js, WalletConnect, Siwe, among others— that enable direct communication between frontend interfaces (usually in JavaScript or frameworks such as React) and blockchain networks (Ethereum, Polygon, Arbitrum, etc.).

These tools allow Web3 applications to read chain information, sign transactions, connect to wallets (such as MetaMask, Ledger or Rainbow), manage decentralized identities (DID), interact with smart contracts and build experiences where the user you own your data, tokens and permissions. Web3 allows use cases such as governance in DAOs, decentralized exchanges (DEX), NFT marketplaces, blockchain games, decentralized finance (DeFi), asset tokenization, and sovereign digital identity.

In addition, Web3 integrates passwordless authentication mechanisms (Sign In With Ethereum), open infrastructure such as IPFS or Arweave for decentralized storage, and reputation systems based on on-chain activity. Its development is closely linked to standards such as ERC-20, ERC-721, ERC-1155, and languages such as Solidity. It also poses challenges in terms of scalability, UX, regulation and adoption, but it represents a radical change towards an internet where control passes from the server to the user, from the intermediary to the contract, and from centralized data to data verifiable by all.

01 / Key points

  • It is the evolution of the internet based on blockchain
  • Users control their data and assets through wallets
  • Allows you to directly interact with smart contracts
  • Use libraries such as web3.js, ethers.js or WalletConnect
  • It is the basis for dApps, DeFi, NFTs, DAOs and tokenization

02 / Advantages

  • Real decentralization: eliminates intermediaries and single points of failure
  • User autonomy: full control over your assets and personal data
  • Transparency and traceability: everything happens on blockchain, visible and auditable
  • Innovation without permissions: anyone can create dApps or tokens without asking for authorization
  • Integrated economy: users can directly monetize their participation

03 / Disadvantages

  • Still complex user experience: requires learning about wallets, gas, signatures
  • Transaction costs in congested networks
  • Security risks if contracts are not audited
  • Regulation still uncertain in many jurisdictions
  • Fragmentation of the ecosystem: multiple blockchains and evolving standards

RELATED CONCEPTS

Blockchain Wallet Token Smart contract Digital identity

KEEP LEARNING

How to convert Web2 users to Web3 without them running Web3 Marketing Success Stories: Lessons from Big Brands Web3 Viral Marketing Campaigns: Strategies That Work Why are your users leaving your dApp? 5 keys to improving the UX of your dApp How to find the Product-Market Fit on Web3 (without burning your budget)

RELATED SERVICES

Web3 Development Blockchain consulting for companies Development of smart contracts Voting and Governance Digital Identity Management

Full glossary

This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on BOE and EUR-Lex.