What is Web3? (Explain Like I’m 5)
Imagine the internet is like a big city with lots of different buildings and roads. Web3 is like a new version of that city where people have more control and power.
Web1, also known as the “First Generation of the Internet,” is like a city where information and websites exist, but they are not very interactive. It’s a bit like a library where you can read books and look at pictures, but you can’t really do much else. In Web1, people mostly visit websites to read or look at things, but they don’t have much control or power to change or interact with those websites.
Then came Web2, also known as the “Second Generation of the Internet.” Web2 is like a city that has grown and become more lively. It introduced things like social media, online shopping, and apps that allowed people to do more than just passively read or look at things. Web2 made the internet more interactive, like a playground where you can play games, chat with friends, and buy things online. Companies like Facebook, Twitter, and Amazon became popular because they offered services and platforms that made it easy for people to connect, share, and buy things online.
Now, in Web3, instead of one central authority, like a government or a company, making all the decisions, people work together using a special technology called blockchain. This technology helps keep things secure and makes sure everyone follows the rules.
By being part of Web3, you can have more say in how things work online and explore new ways to invest and make money.
With Web3, you can do things like own your own data and control who has access to it. You can also use special digital money called cryptocurrencies to buy and sell things directly with other people, without needing a bank or other middlemen.
It’s like having a virtual wallet that only you can control, and you can use it to trade and invest in different projects and ideas. Web3 also encourages people to work together and make decisions together in groups called DAOs (Decentralized Autonomous Organizations).
By being part of Web3, you can have more say in how things work online and explore new ways to invest and make money. It’s an exciting and growing area that offers a lot of opportunities for personal and professional growth.
So, in simple terms, Web3 is like a new and better version of the internet where you have more control, can use digital money, and work together with others to make decisions and invest in projects. It’s like a whole new world of possibilities online!
Investor Takeaway
Web3 matters for your investment strategy because it introduces a new and promising frontier of opportunities. By understanding and embracing Web3, you can potentially enhance your portfolio’s performance and diversification. Investing up to 10% in quality crypto assets within your well-diversified portfolio allows you to tap into the transformative power of decentralized finance, collaborate with innovative projects, and explore the tokenization of assets. Incorporating Web3 into your investment approach opens up a whole new world of possibilities that can contribute to your long-term growth and development as an investor.
Which crypto should I buy? It’s the question we get asked most often. Sign up to the newsletter and find out.
