Web3 As a New Iteration for Web

Understanding Web3: The Third Iteration of the Internet

Welcome to the final lesson of the week.

So far, we’ve covered:

• What Web1 and Web2 are
• The concept of the middleman
• How blockchain, smart contracts, and cryptocurrencies offer solutions to centralized problems

Now, we’re going to tie everything together and learn what Web3 truly is.

The Path to Web3

At the beginning of this course, we highlighted the importance of understanding Web3 by first exploring its history. That’s why we studied Web1 and Web2. We also examined the foundational technologies—blockchain, smart contracts, and gas fees—that enable Web3 to exist.

Now, it's time to combine this knowledge and understand Web3, the third iteration of the web.

Web2 vs Web3: Centralized vs Decentralized Applications

Web2 (Centralized Architecture)

In the Web2 model:

• Websites are hosted on centralized servers like AWS (Amazon Web Services), Microsoft Azure, or Google Cloud.
• The backend code also resides on these centralized services.
• The frontend—the part users interact with—is typically hosted on the same centralized platforms.

This is how most modern web applications function today.

Web3 (Decentralized Architecture)

In contrast, Web3 introduces decentralization:

• The frontend is often still hosted on centralized platforms (though some blockchains can host frontends too).
• The backend, however, runs on a decentralized structure, primarily using smart contracts on blockchains.

So while the user experience might look similar, the underlying infrastructure changes significantly in Web3.

When a user interacts with a Web3 app:

• The frontend sends requests not to a centralized server, but to a blockchain-based backend.
• These applications are known as decentralized applications (dApps).

This is the core idea of Web3: decentralizing the application’s backend to remove reliance on central authorities.

What is Web3?

Web3 is not a revolution, but an iteration—the third step in the evolution of the internet:

1. Web1 was static: information flowed one-way, from website to user.
2. Web2 became dynamic: users could both consume and contribute content.
3. Web3 introduces decentralization: backend logic and data are managed via blockchain, not central servers.

This means:

• Web applications now interact with blockchains on the backend.
• A global network of decentralized servers replaces the traditional server infrastructure.
• Web3 forms a web of decentralized applications, all operating on the blockchain.

Why Understanding Web3 Matters

To grasp Web3, you first needed to:

• Understand Web1, to appreciate the web’s original purpose
• Understand Web2, to see how the internet became interactive and user-driven
• Learn about blockchain, to realize the value of trustless, decentralized systems

With that foundation, Web3 becomes clear—it’s a collection of decentralized applications on the internet, providing more autonomy, transparency, and security to users.

Final Thoughts

Web3 is still evolving, but its impact is growing rapidly. By decentralizing the backend and enabling true peer-to-peer interaction, Web3 promises a more open and fair internet.