Web3 promises a blockchain-based iteration of the internet that is decentralized and gives users control over personal data. Financial services incumbents risk getting left behind as fintechs flood the space—but they first must understand what Web3 really means and where it’s currently falling short.
What is Web3?
Web3 is a new iteration of the internet built on decentralized blockchain networks—the shared ledgers used by cryptos like Ethereum. It allows access to numerous applications including immersive virtual worlds, gaming, social media, music streaming, and finance.
The biggest difference between Web3 and its predecessors lies in decentralization: It is jointly operated by multiple players instead of being controlled by central authorities, such as Google or Microsoft in the current version of the internet. That means users have greater control over their personal data.