The first entry in any list of web 3 frequently asked questions would refer to the definition of web3. One of the common definitions for web3 paints it as the third generation of the internet, which lets users take complete control over their data. From the technical perspective, it actually refers to a collection of technologies that can empower decentralization, transparency, and equity in internet usage. Web3 aims to drive the future of the internet on peer-to-peer networks such as distributed storage solutions and blockchain technology. Blockchain networks could provide the support of smart contracts to facilitate the execution of transactions without the need for personal trust or intermediaries. The decentralized, peer-to-peer infrastructure followed for web3 technologies challenges the conventional centralized approaches for creating, storing, sharing, and monetizing data.

Web2 is the Internet as we know it today, while Web3 refers to the evolution and next generation of the Internet. In fact, Web3 isn't quite there yet, so we don't even know exactly what it will look like. However, mostly thanks to cryptocurrency projects, we can paint a picture of Web3 and the components it could have - many of which have already adopted it. Based on blockchain (blockchain) technology, and they are in the process of revolutionizing the world of finance. If the internet as a whole moves in the same direction, it will completely change the way we act and interact online.

An integral part of many dApps or Web3 applications are called “smart contracts”. Those of you with experience in blockchain technology will likely be familiar with the concept of smart contracts. Smart contracts are essentially self-executing software contracts, pieces of code that run on a blockchain like the Ethereum blockchain. They "run" automatically or are executed when a related set of conditions is met. Therefore, these “contracts” can automatically validate and execute a transaction between different parties.

The frequently asked questions regarding Web3 also highlight potential applications for the technology. Web3 would open up new prospects across all industries and cover a wider range of use cases. DAOs, DeFi, Metaverse, NFTs, dApps, and CBDCs are major use cases for web3.

Future web technologies have strong promise in each of the Web3 use cases. For instance, DAOs can drastically alter how businesses are run and how they regulate corporate transactions and processes.

Similar to how DeFi could change the ways people currently access financial services. The two potent Web3 use cases that give a precise picture of how Web3 would appear in the future are NFTs and the Metaverse.