Web3: what it is, why it’s powerful (and when you don’t need it)
Search queries like “what is web3” often treat web3 as “a new internet”. For clients the pragmatic question is: what properties of web3 create business value, and when is it just extra complexity?
Short version: web3 is a set of technologies where ownership/rights and some rules can live in a verifiable network, executed by code (smart contracts).
1) Web3 in plain terms
Web2 usually means:
- data and rules live on company servers
- trust is in the server owner
Web3 adds:
- verifiable state (who owns what)
- programmable rules (smart contracts)
- composability (building on top of protocols)
2) Why web3 can be valuable
- portable digital ownership (memberships, licenses, tickets)
- transparent rules (escrow, distribution logic)
- ecosystem integration (wallets, marketplaces, identity protocols)
3) When web3 is often NOT needed
- you don’t need verifiable ownership/rights
- you need best-in-class UX like a banking app
- regulatory risk is unacceptable
- you cannot invest in security and key management
In these cases web2 is usually faster and cheaper.
4) A pragmatic architecture: web2 product + web3 layer
Common best approach:
- web/mobile UI + backend (web2)
- on-chain layer only for what must be verifiable
- indexing/analytics off-chain
FAQ
Is web3 the same as crypto?
Not necessarily. You can use blockchain for rights/audit while keeping standard payments.
Where should we start?
Define the exact scenario that requires verifiable ownership. Without that, web3 is a distraction.
If you want, I can help you decide whether you actually need web3 — and if yes, scope a minimal MVP with clear assumptions.