The Rise of Web3: What It Means for Everyday Users | by Tracy Hardwick | The Capital | Mar, 2025

The internet is changing, and Web3 is at the center of this transformation. You’ve probably heard the term thrown around in crypto circles, but what does it actually mean? More importantly, how will it impact everyday users like you?

Web3 promises a more open, decentralized, and user-controlled internet, shifting power away from big tech companies and giving individuals greater control over their data, identity, and online assets.

Let’s break down what Web3 is, how it differs from previous internet versions, and what it means for the future of the digital world.

Web3 refers to the next generation of the internet, where users own and control their data, digital identities, and online interactions without relying on centralized platforms. It is built on blockchain technology, smart contracts, and decentralized applications (dApps).

To understand Web3 better, let’s take a look at how the internet has evolved:

• Web1 (1990s — early 2000s): The early internet was mostly static websites where users could read information but had little interaction (e.g., Yahoo, early Google).
• Web2 (mid-2000s — today): The rise of social media and big platforms (e.g., Facebook, YouTube, Twitter) allowed users to create and share content, but companies controlled user data.
• Web3 (emerging now): A decentralized internet where users own their data, digital assets, and online identity, removing the need for middlemen like Google, Facebook, or banks.

Web3 is often described as the internet owned by the people, powered by blockchain and cryptocurrency.

Web3 is different from today’s internet because it focuses on decentralization, transparency, and user ownership. Here are the main pillars of Web3:

Decentralization

• Instead of being controlled by big corporations, Web3 applications run on blockchain networks that are maintained by a global community.
• No single entity can shut down a Web3 platform or censor users.

User Ownership of Data

• In Web2, companies like Facebook and Google collect and monetize user data.
• In Web3, users can control and monetize their own data using self-sovereign identities and crypto wallets.

Permissionless Access

• Anyone with an internet connection can access Web3 applications without needing permission from banks, governments, or corporations.
• This opens up financial services to millions of people who are unbanked or underbanked.

Native Digital Payments

• Web3 uses cryptocurrencies like Bitcoin, Ethereum, and stablecoins for transactions instead of relying on traditional banks and credit card companies.
• Payments are faster, cheaper, and borderless, making it easier to send and receive money worldwide.

Smart Contracts & Automation

• Smart contracts allow agreements to be executed automatically without middlemen.
• For example, in Web3, renting a digital asset or earning interest on savings can be done entirely through code.

Web3 is still in its early stages, but it’s already changing how people interact online. Here are some ways it will affect everyday users:

1. Greater Control Over Social Media and Content

• Instead of platforms like YouTube or Instagram deciding who gets paid for content, Web3 lets creators earn directly from their audience using crypto and NFTs.

Examples:

• Mirror.xyz — A decentralized blogging platform where writers own their content.
• Lens Protocol — A Web3 social media platform where users own their data.

2. Owning Digital Assets in the Metaverse and Gaming

• Web3 enables true ownership of in-game items, skins, and virtual land through NFTs.
• Users can buy, sell, or trade assets across different platforms, unlike Web2 games where all assets are locked within a single company’s ecosystem.

Examples:

• Decentraland and The Sandbox — Virtual worlds where users can buy digital real estate.
• Axie Infinity — A play-to-earn game where players make money by owning and trading NFTs.

3. Decentralized Finance (DeFi) Instead of Banks

• Web3 removes the need for banks by offering peer-to-peer lending, borrowing, and earning interest without middlemen.
• Users can store money in a crypto wallet and earn passive income through staking or yield farming.

Examples:

• Aave and Compound — Platforms where users can lend and borrow crypto assets.
• Uniswap and Curve Finance — Decentralized exchanges that allow users to trade assets directly.

4. Enhanced Privacy and Security

• Instead of logging into websites with a username and password (which can be hacked), Web3 uses crypto wallets for authentication.
• This prevents companies from tracking users and selling their personal data.

Examples:

• Ethereum Name Service (ENS) — A decentralized alternative to traditional domain names.
• Brave Browser — A Web3 browser that blocks ads and trackers while rewarding users with tokens.

5. More Financial Inclusion

• Millions of people worldwide don’t have access to banks, but with Web3, all they need is an internet connection and a crypto wallet.
• This allows people in developing countries to save, invest, and earn money without needing a traditional bank account.

Web3 is still in its early stages, and there are challenges that need to be addressed before it can become mainstream.

Usability and Complexity

• Many Web3 applications aren’t user-friendly yet, requiring technical knowledge to set up wallets and interact with smart contracts.
• Solution: Companies are working on making Web3 platforms easier to use, just like traditional apps.

Scalability and Speed

• Some blockchains, like Ethereum, have high fees and slow transactions.
• Solution: Layer 2 scaling solutions (like Arbitrum, Polygon, and Optimism) are improving speed and reducing costs.

Security Risks and Scams

• Because Web3 is decentralized, users are responsible for their own security.
• Solution: Improved security measures and education are needed to protect users from hacks and scams.

Regulatory Uncertainty

• Governments are still figuring out how to regulate Web3 without stifling innovation.
• Solution: Clearer regulations will help encourage adoption while protecting consumers.

If you’re interested in Web3 and want to explore, here’s how to get started:

1. Set Up a Crypto Wallet

• Get a non-custodial wallet like MetaMask, Trust Wallet, or Coinbase Wallet.
• This will allow you to interact with Web3 applications.

2. Try Decentralized Apps (dApps)

• Use Uniswap to swap tokens.
• Explore DeFi with Aave or Compound.
• Check out NFT marketplaces like OpenSea.

3. Join a Web3 Community

• Follow projects on Twitter, Discord, or Telegram.
• Learn from others and stay updated on new developments.

Web3 is redefining how we interact with the internet, giving users more control over their money, data, and digital experiences. While there are still challenges to overcome, the movement toward decentralization is already reshaping industries like finance, gaming, and social media.

For everyday users, Web3 means more freedom, privacy, and opportunities to participate in a fairer digital economy. As technology improves and adoption grows, Web3 could become the standard for the next generation of the internet.