Web3
A vision for the next evolution of the internet built on decentralized blockchain infrastructure, where users own their data, digital assets, and identity rather than relying on centralized platforms. Web3 encompasses DeFi, NFTs, DAOs, decentralized identity, and dApps — aiming to shift power from corporations (Web2) back to individuals through cryptographic ownership and governance.
“In a Web3 model, instead of your social media posts being owned by Facebook and your data monetized by Google, you would own your content as tokens and control your identity through a wallet.”
dApp (Decentralized Application)
An application that runs on a decentralized blockchain network rather than being hosted on centralized servers. dApps use smart contracts for their backend logic while providing user-friendly front-end interfaces. They are censorship-resistant and typically open-source, though their performance depends on the underlying blockchain's capabilities.
Decentralization
The distribution of control, authority, and data processing across a network of participants rather than concentrating it in a single entity. In blockchain, decentralization means no single party controls the network, making it censorship-resistant and reducing single points of failure.
DAO (Decentralized Autonomous Organization)
An organization governed by smart contracts and token-holder votes rather than traditional management hierarchies. DAOs enable collective decision-making on protocol upgrades, treasury allocation, and strategic direction without centralized leadership. Proposals are submitted on-chain and executed automatically if they pass a vote.
NFT (Non-Fungible Token)
A unique digital token on a blockchain that represents ownership of a specific item — such as art, music, collectibles, virtual real estate, or in-game items. Unlike fungible tokens like BTC or USDC where each unit is identical, each NFT has a unique identifier making it one-of-a-kind. NFTs typically follow the ERC-721 or ERC-1155 token standard and store metadata pointing to the associated content.