The crypto community is still searching for a definition for Web 3.0. But its fundamental difference from Web 2.0 is increased decentralization at all levels, including data storage and application usage. Web3 era applications are often referred to as those that have one or more of the attributes from the list below:

• blockchain and smart contracts are integrated into certain features of the product;
• the source code of the program is published, and there is an opportunity for third-party developers to participate;
• the service uses virtual reality (VR) or augmented reality (AR) technologies;
• cryptocurrency payment tools integrated into the frontend;
• use of non-fungible tokens (NFT);
• IPFS protocol is used in the data storage system;
• a decentralized autonomous organization (DAO) is involved in project management.

Web3 also involves the active use of artificial intelligence (AI). This provides ample opportunity to personalize the user experience. A similar principle underlies the business models of many large web platforms, such as YouTube, Netflix or Amazon. Although they remain centralized in terms of organization.

The development of “next generation” applications adheres to decentralized organization of data, including data storage. At least part of the data of a network application is stored in a blockchain, i.e., it is decentralized.

The product is developed not only and not so much by the owner, but by the distributed community. It manages the project through a DAO (decentralized autonomous organization).

In turn, decentralization is the key to what cryptocurrencies and smart contracts have been able to realize in the economy: to eliminate the need for trust, and thus the need for intermediaries and centralized structures.

Thus, the ideal state of Web3 is freedom from censorship and restrictions, as well as an efficient business model without the use of hierarchical structures and traditional financial instruments.