---
# System prepended metadata

title: WEB3 AND BASIC BLOCKCHAIN CONCEPTS by dev_Jaytee

---

**Introduction**

In recent years, the world of technology has witnessed a revolution, one that promises to redefine how we interact with the internet, handle data, and manage digital assets. This revolution is known as **Web3**. Often described as the next generation of the internet, Web3 is built upon decentralized technologies that empower users with greater control, transparency, and security. Central to the Web3 ecosystem is **blockchain technology**, the foundational framework that enables decentralized applications, cryptocurrencies, smart contracts, and much more.

At its core, **blockchain** is a distributed ledger technology that allows data to be stored across multiple computers in a secure, transparent, and immutable manner. Unlike traditional systems where data is stored in centralized servers, blockchain eliminates the need for a central authority, making it a powerful tool for decentralization. This characteristic is key not only in Web3 but also in various sectors like finance (DeFi), supply chain management, healthcare, and voting systems.

In this article, we will basically and in light terms explore **Web3** and its relationship with **blockchain technology**, diving into their core principles and how they work together to create a decentralized digital ecosystem. 
 The concpts that will be explained and discussed in light terms to someone who is actually new to this technology includes;
     1. What is blockchain?
     2. How does the blockchain works?
     3. key blockchain concepts
     4. what is web3?
     5. web1 vs web2 vs web3

**1. What is blockchain**
Definition: Blockchain is a type of digital ledger technology that allows information to be stored and shared across a network of computers in a way that is secure, transparent, and tamper-resistant. It is called a "blockchain" because the data is stored in blocks, and each block is connected to the previous one, forming a chain of blocks.

Imagine a digital notebook that everyone in the world can see and write in, but once something is written in it, it cannot be erased or changed. Each page of this notebook is a block and the collection of pages, all linked together in order, is the blockchain.

Attributes of a typical blockchain:

Decentralized: Instead of being stored in a single place (like a bank or government server), a blockchain is spread across many different computers (called nodes). This means no one person or organization controls it.

Secure: Each block in the blockchain contains information and is locked using cryptography, which makes it almost impossible for anyone to alter the data once it’s been added.

Transparent: Every participant in the network has a copy of the blockchain, so they can see all transactions. This makes blockchain systems very transparent, ensuring everyone has access to the same information.

Immutable: Once data is added to the blockchain, it is very difficult (almost impossible) to change or delete. This is because every block contains a record of the previous block, making any attempt to alter the information visible to everyone.

Applying Blockchain to Real Life:
Let’s say you're using Bitcoin, a cryptocurrency, which is built on blockchain technology. When you send Bitcoin to someone, the transaction gets recorded in a block. Once the block is full, it's added to the blockchain, making it permanent.

The interesting thing about this system is that no central authority (like a bank) is needed to verify the transaction. Instead, the network of computers (nodes) validates the transaction through a process called mining, ensuring that it is legitimate. This prevents fraud because every transaction is publicly recorded and visible to everyone in the network, and altering any previous transaction would require changing all subsequent blocks, which is nearly impossible.

In this way, blockchain is not just about cryptocurrencies like Bitcoin. It can be used for supply chain management, voting systems, digital identities, and smart contracts—basically any system that benefits from secure, transparent, and decentralized data storage.

2.How Does The Blockchain Works?
1. Someone requests a transaction
Imagine you want to send money (like Bitcoin) to a friend. The first thing you do is request a transaction — this could be anything from sending cryptocurrency to transferring data or assets.

2. Transaction is broadcast to a network of computers (nodes)
Once you make the request, it gets sent out to a network of computers called nodes. These nodes are all around the world, and they work together to make sure everything is correct. Think of these nodes like the members of a large group of people who are all double-checking your request.

3. Network validates the transaction using algorithms
The nodes check if your transaction is legitimate by following certain rules (called algorithms). For example, they check if you really have the Bitcoin you're trying to send, or if the transaction follows the right steps. This step is like the group of people reviewing your request to make sure everything is accurate and valid.

4. Verified transaction is combined with others to create a new "block"
Once your transaction is confirmed to be valid, it gets grouped together with other recent transactions into a block. This block is like a page in a notebook, where several transactions are written down in one place.

5. Block is added to the existing blockchain
After the block is created, it gets added to a chain of previous blocks. This chain of blocks (the blockchain) is like a digital ledger or record book that stores every transaction ever made. Each block is linked to the one before it, making it impossible to change old transactions without everyone noticing.

6. Transaction is complete and permanent
Once the block is added to the blockchain, your transaction is complete. It’s now a permanent part of the history, and no one can go back and alter it. This ensures that your transaction is secure, transparent, and cannot be tampered with.

3.Basic Concepts of Blockchain

1. Decentralization: No single point of control
Blockchain doesn’t have a central authority (like a bank or government) controlling it. Instead, many computers (called nodes) across the world keep a copy of the blockchain. Everyone helps manage and verify the data, so no one person or organization has full control.

2. Transparency: Public verification of all transactions
All transactions on the blockchain are visible to everyone in the network. This means anyone can verify what’s happening. For example, if you send cryptocurrency to someone, everyone can see the transaction (though it's anonymous, meaning personal identities are hidden). This helps build trust because it’s easy to check the history of transactions.

3. Immutability: Once recorded, data cannot be changed
Once something is added to the blockchain, it can’t be changed or erased. Think of it like writing something in permanent ink on paper—once it’s there, it’s permanent. This makes the blockchain very secure because no one can go back and alter past transactions.

4. Consensus Mechanisms: How the network agrees on valid transactions
Before a transaction is added to the blockchain, the network of computers (nodes) needs to agree that it’s valid. This is done through consensus mechanisms like Proof of Work or Proof of Stake, which are rules the network follows to decide which transactions are legitimate.

Secures the data and transactions
Explanation: Blockchain uses cryptography (math-based security) to keep data safe. It’s like using a special lock and key to protect your information. This ensures that only the correct person can access or change their data and that transactions are secure from hackers.

4. What is web3?

Imagine a world where you, as an individual, own your data, can freely trade digital goods, and interact with others without depending on companies that control your information. Web3 is about creating this world by using blockchain technology to decentralize control and ownership.

If you're interested in diving into Web3, you’ll encounter terms like cryptocurrency, NFTs (Non-Fungible Tokens), decentralized applications (DApps), and smart contracts. These are all components that help make Web3 possible, and they focus on giving users more autonomy and control over their digital lives. web3 will be discussed according to these facets below;

i. The Next Evolution of the Internet
Web3 is seen as the next step in the development of the internet. We’ve had Web1 (the early, static internet) and Web2 (the current, interactive internet dominated by platforms like Facebook, Google, and Amazon). Web3 is the vision of the next stage where the internet is more decentralized and user-focused.

Web3 promises to shift the control from large corporations to the people using the internet. Instead of big companies owning and controlling data, Web3 aims to give users more control over their digital lives.

ii. Built on Blockchain Technology
Blockchain is a type of digital ledger that records transactions across many computers in a way that ensures security and transparency. Each "block" of data is linked ("chained") to the previous one, making it tamper-resistant and decentralized.

Blockchain makes Web3 secure and trustworthy. For example, instead of trusting a central authority (like a bank or a government) to verify transactions, Web3 relies on blockchain, where anyone can verify that transactions have occurred without needing a middleman.

iii. Focuses on Decentralization and User Ownership
In Web2, we interact with centralized platforms where a single company owns and controls the data (like social media platforms or cloud storage). In Web3, decentralization means that control and ownership are distributed across the network, meaning no one company has full control.

With Web3, users can own and control their own data, digital assets (like cryptocurrencies or NFTs), and even the applications they use. This removes the need for intermediaries (like tech giants) to act as gatekeepers, giving users more freedom.

iv. Aims to Reduce Reliance on Big Tech Companies
Currently, much of the internet is controlled by a handful of large companies (like Google, Amazon, and Facebook). Web3 seeks to remove or reduce the influence of these big tech players by creating a more open, peer-to-peer network where users directly interact with each other.

By decentralizing control, Web3 can offer more privacy, security, and fairness. Users don’t have to rely on corporations to access services or content. Instead, they can directly interact with other individuals or decentralized applications (DApps).
v. Enables Peer-to-Peer Interactions Without Intermediaries
In Web3, users can interact with each other directly, without needing a middleman (like a bank, social media company, or marketplace platform). This is made possible by smart contracts and blockchain, which allow for transactions and agreements to be carried out automatically and transparently.

Peer-to-peer interactions reduce the cost, friction, and potential for exploitation by middlemen. For example, in Web3, you could send money directly to someone without needing a bank or pay for goods without needing a centralized store.

5. Web1 Vs Web2 Vs Web3

Here's a simple and clear comparison of **Web1**, **Web2**, and **Web3** for a beginner, focusing on their main differences:

### **Web1 (The Early Web)**
- **Time Period**: 1990s to early 2000s
- **Nature**: Static, read-only
- **Key Features**:
  - **Content**: Web1 was mostly made up of static websites with text and images. You could only **read** content; you couldn't interact much with it.
  - **Ownership**: Websites were owned and controlled by a few organizations or individuals.
  - **Interaction**: There were no social media platforms, no user-generated content, and little-to-no way for users to interact with the websites.
- **Example**: Early personal websites, news pages, and informational websites (like Wikipedia before user contributions).


### **Web2 (The Interactive Web)**
- **Time Period**: Mid 2000s to today
- **Nature**: Dynamic, read-write (interactive)
- **Key Features**:
  - **Content**: Web2 introduced user-generated content and interactive websites. You can **read**, **write**, and **share** content.
  - **Ownership**: Large tech companies (like Google, Facebook, Amazon, etc.) now control most of the platforms we use online. They collect user data, manage the platforms, and make money from ads or subscriptions.
  - **Interaction**: Social media, blogging, online marketplaces, and streaming platforms. Users can create and share their own content, interact with others, and consume content.
  - **Monetization**: Big tech companies monetize user data and the services they provide, usually via advertisements or subscriptions.
- **Example**: Facebook, Instagram, YouTube, Twitter, Google Search, Amazon.

### **Web3 (The Decentralized Web)**
- **Time Period**: Emerging now (early 2020s onwards)
- **Nature**: Decentralized, read-write-own
- **Key Features**:
  - **Content**: Web3 allows users to **read**, **write**, and **own** their content. It’s built on decentralized networks like blockchain technology.
  - **Ownership**: Instead of being controlled by centralized companies, Web3 gives users more **ownership** and control. Data, digital assets, and content are stored on decentralized networks, meaning no single entity owns it.
  - **Interaction**: Users can interact peer-to-peer (P2P) without needing intermediaries (like banks, social media platforms, or e-commerce sites). Web3 enables decentralized applications (DApps), smart contracts, and direct transactions using blockchain.
  - **Monetization**: Web3 offers new ways to earn money through digital assets like cryptocurrencies (e.g., Bitcoin, Ethereum) and NFTs (Non-Fungible Tokens). There’s also the potential for users to earn and create value directly.
- **Example**: Decentralized finance (DeFi) platforms, Ethereum blockchain, decentralized social media apps, NFT marketplaces.

---

### **Summary Comparison**:

| Feature                | **Web1**                             | **Web2**                                   | **Web3**                                  |
|------------------------|--------------------------------------|--------------------------------------------|-------------------------------------------|
| **Main Goal**           | Share static content                 | Enable interaction and social platforms    | Empower user control and ownership       |
| **Control**             | Centralized ownership by website creators | Centralized control by tech companies     | Decentralized control, user-owned        |
| **User Interaction**    | Read-only                            | Read-write (interact and create content)   | Read-write-own (user owns data & assets) |
| **Monetization**        | No direct monetization               | Ad revenue, subscriptions, data collection | Digital assets (cryptos, NFTs), direct rewards |
| **Examples**            | Personal websites, early search engines | Social media (Facebook, Instagram), e-commerce | Decentralized apps, cryptocurrencies, NFTs |


In a nutshell:
- **Web1** was like reading a book online—static and one-way.
- **Web2** turned the internet into a place for interaction and social media—companies control the platforms.
- **Web3** aims to give control back to users by making the internet decentralized, where users can own and control their data and digital assets directly.

Reference
1. Investopedia. https://www.investopedia.com/terms/b/blockchain.asp#toc-what-is-a-blockchain
2. bitcoin whitepaper.https://bitcoin.org/bitcoin.pdf

