The difference between Web2 and Web3 has to do with ownership, control, and access to data. This article explains the difference between Web2 and Web3.

Web2 is the current internet. It’s centralized and owned by a few large companies like Google and Facebook, who control how we use it through their terms of service agreements. In this model, users have no control over what happens with their data or where it goes after it leaves their computers (or phones).

Today, we live in a world of Web2 where data and content are managed and controlled by centralized corporations. Web2 systems are closed systems that do not offer transparency regarding how the data is stored, accessed, and managed. Today, credit card companies such as Visa and Mastercard can store your data in plain text in their databases and change their fees and rates anytime they need to make more profits. Likewise, a content-based company such as YouTube or Facebook can change its rules anytime. While Facebook gets its content from its users and makes money, it doesn’t share its profits with content contributors. YouTube, on the other hand, shares a little bit of revenue with its creators.

Web3 aims to create a more open, transparent, and secure internet that relies less on significant companies and centralized servers. Instead, it is based on peer-to-peer networks and distributed systems that allow users to interact directly with each other without the need for intermediaries. In addition, web3 companies provide transparent and public guidelines on how the system will work and how the profits will be distributed among its users.

The following table summarizes the key differences between Web2 and Web3.

Open sourceWeb2 is mostly closed source.Web3 is open-source and public.
Centralized vs. DecentralizedWeb2 systems are centralized.Web3 systems are distributed and decentralized.
InfrastructureApps are stored on centralized servers.Apps (dApps) are stored on distributed nodes.
Data storageData is stored and managed by large corporations.Data is stored on decentralized network managed and run by individuals and businesses.
Data control & ownershipData is controlled and owned by centralized entities such as large corporations and business owners.Web3 is permissionless. Data is owned by its users and managed by a network of nodes without accessibility.
SecurityData could be manipulated and accessed by unauthorized agents.Web3 is trustless. is secure and encrypted
Trust and transparencyCorporations are not trusted and do not provide transparency.Web3 foundation starts with trust and transparency.
BenefitsMost benefits go to the corporation that manages data and content. For example, Google makes money from users’ content and searches. YouTube makes money from people’s videos, and Facebook makes money from people’s posts.Data is stored on a decentralized network managed and run by individuals and businesses.

Web2 is centralized, owned by corporations, and controlled by corporations. Users access Web2 through their browsers or apps on their phones or computers.

Open and public.

One of the key differences between Web2 and Web3 is the openness of the systems. Web2 is a closed system. That means Web2 systems are developed, managed, and controlled by centralized companies.

Web3 systems are open source, and data is stored on blockchains that are accessible publicly. Web3 systems run on public computers called nodes. A node can be by anyone and from anywhere in the world. Therefore, the information about the nodes is available publicly.

The rules of running Web3 systems are published as whitepapers as public documents. The lifelong transactions (data) are also available publicly.

Centralized vs. decentralized.

Web2 is a centralized system. A few companies control it, and you don’t own or control your data. In fact, if you’re using Google to search for something, that search query is sent to Google and then sent back with results from their database. You don’t have access to it–you can only see the results they give you (and sometimes not even those).

Web3 is decentralized: Instead of being hosted on central servers, websites are stored on blockchain networks and accessed via peer-to-peer protocols. This means there’s no single point of failure or control over what you can see on them–and it also means that anyone can create their website without needing permission from anyone else (as long as they have the resources).

Web3 is a peer-to-peer web: When you visit a website today, your browser asks an ISP for access to its server; once there, it sends requests between you and the server until both sides agree on how things should look/work together.* If everyone does this at once, though, we get into trouble because then everyone would try reaching each other simultaneously, which slows down speeds and makes everything worse overall! This problem worsens when companies start blocking things like ad blockers, making pages load even slower.”

A true example of a decentralized system would be Bitcoin–there’s no bank or government in charge of how bitcoins are created or exchanged. Instead, users around the world contribute their computing power to mine new blocks on top of previous blocks and keep track of transactions within them (that’s why miners are rewarded with newly minted Bitcoin).

On top of that, there isn’t any single point where you can go down and shut down all Bitcoin nodes at once; they’re spread out across thousands of computers around the world, so they’ll always be available regardless of where you live or what kind of device you’re using! And because no centralized servers are involved with storing information like who owns what amount worth how many BTCs right now? You couldn’t even if someone tried hard enough…

Data ownership and control

In Web2, data ownership and control typically rest with centralized entities such as companies and governments. When users provide personal data to these entities, they often relinquish control over that data, and it may be used or shared with third parties without the user’s explicit consent.

In Web3, data ownership and control are decentralized across users and nodes. Instead of relying on a single entity to manage their data, users can use blockchain technology to store and control their data. This gives users greater control over their data and allows them to decide how it is shared and used.

For example, in a decentralized social media platform built on Web3 technology, users would have complete control over their data, including personal information and social media posts. They could decide who has access to that data and even monetize their data by selling it to advertisers or other third parties.

One key technology that enables decentralized data ownership and control in Web3 is blockchain. Blockchain is a distributed ledger technology that allows users to store and share data securely and transparently. In addition, smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code, can also be used to establish rules around the use and sharing of data.

Overall, Web3 represents a major shift in managing data ownership and control. By decentralizing data ownership and control, Web3 empowers users to take ownership of their data and use it to their advantage while also promoting greater transparency and accountability in the use of data.

Security and privacy

The security landscape in Web2 and Web3 differ in several key ways. Web2 refers to the current generation of the internet, which is primarily composed of centralized applications and services. Web3, on the other hand, refers to the next generation of the internet, characterized by decentralized applications and services.

Web2 system is centralized, obsolete, and vulnerable. Thousands of servers are hacked every day or not. Cyber security is one of the major concerns of Web2.

In Web3, the data is encrypted before storing it on a blockchain. Cryptography is a key component of blockchain, the technology behind Web3. Web3 applications rely heavily on cryptography to secure transactions and data, with technologies such as blockchain and smart contracts providing high security and transparency.

While Web3 offers new opportunities for security and decentralization, it also requires users and developers to adopt new security best practices and remain vigilant against emerging threats.

Data privacy is another major challenge of Web2. Web2 companies have no standard of data privacy. Web3 ensures that data privacy is one of the focal points of building new systems. Data owners can decide who can access their data.

Trust and transparency

Trust and transparency are key concepts that differentiate Web2 and Web3.

In Web2, trust is placed in centralized entities such as corporations, governments, and other intermediaries. These entities have the power to control and manage data, and users must trust that they will act in the user’s best interest when it comes to data privacy and security. However, this trust is often challenged, as centralized entities may have conflicts of interest, be vulnerable to hacking and cyber attacks, or misuse data for their purposes.

In contrast, Web3 relies on decentralized networks and open protocols to establish trust and transparency. In Web3, trust is distributed across the network and does not rely on a single intermediary. This is achieved through technologies such as blockchain, which provides a decentralized and immutable ledger of transactions, and smart contracts, which are self-executing agreements that automatically enforce the rules and conditions of the agreement.

Web3 also promotes transparency through its open and decentralized nature. In Web3, users have access to information about transactions and data flows, which allows them to make informed decisions about how their data is used and who has access to it. This transparency is supported by public ledgers and open-source code, which allow anyone to verify the authenticity and security of the system.

Overall, Web3 represents a major shift towards greater trust and transparency in managing data and digital interactions. By relying on decentralized networks and open protocols, Web3 promotes greater security and autonomy for users while also promoting transparency and accountability in the use of data.


Web2 systems are centralized and run on centralized servers with a single point of failure. Therefore, once a server is down, it might take down the entire app.

Web3 systems run on blockchain nodes, and as long as a majority of the nodes are running, the dApp will never go down. It means there is no single point of failure.

Scalability and interoperability

Scalability and interoperability are important considerations when comparing Web2 and Web3.

In Web2, applications and services are typically centralized and may rely on proprietary technologies that are not interoperable with other systems. This can lead to challenges in scaling applications and integrating with other systems, as the capabilities of the underlying infrastructure and protocols limit developers.

In contrast, Web3 promotes scalability and interoperability through decentralized networks and open protocols. For example, blockchain technology provides a distributed and resilient infrastructure that can support a wide range of applications and use cases. Additionally, open protocols and standards allow developers to build interoperable applications that can communicate and interact with other systems, even if they are built on different technologies.

One of the challenges with scalability and interoperability in Web3 is the tradeoff between decentralization and performance. While decentralized networks offer high security and transparency, they may also be slower and less efficient than centralized systems. However, developers are exploring new techniques such as sharding, layer two solutions, and sidechains to increase the scalability and performance of decentralized networks.

Overall, Web3 represents a major shift towards greater scalability and interoperability in developing applications and systems. By relying on open protocols and decentralized networks, Web3 enables developers to build more resilient, secure, and interoperable applications than their Web2 counterparts.


In Web2, most of the profit goes to centralized corporations and businesses. Today, Facebook makes billions of dollars from its users’ content. So are the other social media platforms are Twitter, LinkedIn, YouTube, Instagram, and Snapchat.

In the Web3 world, most of the profit goes to the participants, i.e., nodes, contributors, validators, DAO members, creators, and contributors. In an ideal Web3 social media platform, the benefits will go to people running the underlying blockchain, content creators, and even contributors who read and share the content.

Web3 limitations

While Web3 represents a significant shift in how we think about the internet and digital interactions, several limitations and challenges must be addressed to realize this new paradigm’s potential fully. Some of these limitations include the following:

Scalability: One of the biggest challenges facing Web3 is scalability. Decentralized networks such as blockchain can be slow and resource-intensive, limiting the ability to support large-scale applications and use cases.

Interoperability: While Web3 promotes interoperability through open protocols and standards, there are still challenges in integrating different systems and platforms, mainly when built on other blockchain technologies.

User adoption: Web3 is still a relatively new and emerging technology, meaning users and developers have a learning curve. This can make it challenging to achieve widespread adoption and use.

Security: While Web3 promotes greater security through decentralized networks and cryptographic protocols, there are still risks associated with the technology, particularly regarding smart contract vulnerabilities and other types of attacks.

Regulatory challenges: Web3 may face regulatory challenges as governments and other authorities seek to establish rules and regulations around decentralized technologies.

Overall, while Web3 represents a promising new direction for the internet and digital interactions, it is still a nascent technology that faces several challenges and limitations. However, developers and innovators are working to overcome these limitations and to build a more secure, interoperable, and scalable Web3 ecosystem.


In short, Web2 is a description of the current internet, and Web3 is the future of it. The difference between Web2 and Web3 has to do with ownership, control, and access to data.

In summary, the key differences between Web2 and Web3 are that Web2 is centralized and focused on content consumption, while Web3 is decentralized and focused on user empowerment and interaction.