Web3 and decentralization represent the fundamental paradigm shift transforming the current internet from a “Read-Write” system (Web2) into a “Read-Write-Own” one. According to the original definition by Ethereum co-founder Gavin Wood and the guidelines of the Web3 Foundation, this technological evolution aims to create a “serverless” web where users retain sovereignty over their digital identity, data, and transactions, eliminating the need for centralized trusted intermediaries (Big Tech).
Key Takeaways
- Data Sovereignty: The user owns their content via cryptographic keys, not the platform.
- Trustless Architecture: Trust is guaranteed by code (Smart Contracts) rather than third-party entities.
- Token Economy: Native economic incentives to sustain and govern the network.
What is the binomial between Web3 and decentralization
To fully understand Web3 and decentralization, it is necessary to analyze the historical evolution of the network. Web1 was static and read-only (“Read”). Web2 introduced interactivity and social media (“Read-Write”) but centralized data in private servers, creating “silos” controlled by a few entities.
Web3 introduces ownership (“Own”). In this context, decentralization is not just ideological but architectural: the network does not reside on central servers (like AWS or Google Cloud) but is distributed across thousands of peer nodes. This ensures that no single entity can shut down the network or censor transactions, respecting the principles of censorship resistance and immutability defined in foundational blockchain whitepapers.
How the distributed technical architecture works
The technical operation relies on peer-to-peer (P2P) networks and distributed ledgers (Blockchain). Instead of accessing a centralized database via an account (username/password), the user interacts with the blockchain through a “Wallet” (digital wallet) acting as a universal identity.
- Smart Contracts: Computer protocols that automatically execute the terms of an agreement. They replace the traditional backend: business logic is “on-chain,” public, and verifiable.
- Validator Nodes: Computers that keep the network updated and secure. Instead of trusting a bank or a server, the network reaches “consensus” on the state of data through mathematical algorithms (e.g., Proof of Stake).
- DApps (Decentralized Applications): Applications built on top of the blockchain that inherit the security and transparency properties of the underlying layer.
Advantages of Web3 and decentralization for business
The adoption of Web3 and decentralization opens unprecedented scenarios for enterprises, overcoming the limits of traditional models. According to recent analyses by McKinsey and Harvard Business Review, the impact extends far beyond finance.
- Interoperability: Digital assets (tokens, NFTs) are not locked in a platform but can move freely between different ecosystems.
- DAOs (Decentralized Autonomous Organizations): New corporate governance structures where decisions are made collectively by token holders, ensuring transparent management of funds and strategies.
- Reduction of intermediation costs: Eliminating “middlemen” in financial transactions or supply chains reduces friction and operating costs, increasing the overall system efficiency.
