Web3 is an umbrella term for the idea of a new kind of internet, where users themselves own their data, digital assets and identity through blockchainsBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. and CryptocurrencyCryptocurrencyA digital currency secured by cryptography and recorded on a shared ledger, with no bank or government issuing or controlling it.. Gavin Wood, one of Ethereum's founders, coined the term in 2014.
Web1, Web2 and Web3
The history of the web is often told in three steps:
- Web1 was mostly static websites. You could read, but not much else.
- Web2 is the web most people know: social media and apps where you create content, but companies own the platform and the data.
- Web3 aims to add ownership. Your assets sit in your own walletCrypto walletAn app or device that holds the keys to your crypto and lets you receive, store and send it., and the apps, called dAppsdApp (decentralised app)An app that runs on smart contracts on a blockchain instead of one company's servers, such as a decentralised exchange or lending service., run on a blockchain.
In Web3, you often log in to an app with your wallet instead of a username and password.
What are the limitations?
Web3 is still taking shape. Among the limitations ethereum.org lists:
- transaction fees are still too high for many people
- the technical barrier is high, and mistakes are easy to make
- much of the ecosystem still relies on centralised infrastructure
Ownership also comes with responsibility. If you lose your seed phraseSeed phraseA list of 12 or 24 words that backs up every key in your wallet, so whoever has the words can restore the wallet and take the crypto., there is no customer service desk that can reset your access.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.