Web3: The future of the distributed Internet – what is it actually?

Web3 is a concept that is heard a lot but understood less. The Internet has moved from Web1 (read only), to Web2 (reading + writing, but controlled by technology giants), to Web3 – the distributed Internet where the users control.

What characterizes Web3?

Ownership: Users control their digital assets through wallets. Decentralization: There is no central server that can crash. Transparency: open source and auditable. Neutrality: the payment is built into the protocol, not through a third party.

Web3 Building Blocks

Ethereum and Layer 2 networks are the infrastructure of the Web3. DApps (Decentralized Applications) run on smart contracts. DAOs (Decentralized Autonomous Organizations) are organizations that are managed by token-holders’ votes. NFTs stand for ownership of digital items.

Challenges and limitations

Web3 is still in its early stages: complex user interface, gas fees, security vulnerabilities, and regulatory questions. Additionally, most “Web3” today still relies on Web2 servers in part.

What in the future?

A combination of AI and Web3 presents fascinating possibilities: AI agents that manage wallets, ownership of AI models, and more. Read about NFT in 2025.

Related Articles

DeFi’s $70 Billion Reset: What TVL Really Tells You

DeFi total value locked has fallen roughly 37% in 2026 to about $71.8 billion, even as stablecoin supply pushes past $314 billion. Here is how to read the numbers properly.

July 10, 2026

Ethereum Staking Explained: Earn Yield in a Down Market

With ETH near $1,600 and a third of its supply locked in staking, here is a beginner's guide to how Ethereum staking works, the yields on offer, the risks involved, and where Israel fits into the staking economy.

July 3, 2026

DeFi Explained: Your 2026 Guide to Decentralized Finance

A beginner's guide to DeFi and Web3 in 2026 — staking, Layer 2, total value locked, and where Israel's blockchain ecosystem fits in.

June 26, 2026