Web 2.0 Compare Web3
| Aspect of protocol | Web 2.0 | Web3 |
| Trust model | Centralized services, servers and softwareTrust the companies behind them. | Decentralized; peer-to-peer; no central authority; no single point of failure Trust is minimized — trust the decentralized protocol. |
| Governance | Power consolidated among digital giants | Decentralized autonomous organizations (DAOs), where governance is distributed to stakeholders (governance token holders) |
| Business model | Digital giants and service providers own customer data, which is used to earn revenue. | The blockchain network pays transaction validators for their work. Game theory is employed to maintain transaction integrity. |
| Content | Dynamic, user-generatedSource content can be duplicated. | User-owned and uncoupled from Web 2.0 services |
| User participation models | Free services in exchange for user data Payments made to intermediaries for running services and software | Users own their data and content, and can monetize it. Payments made directly to blockchain transaction validators |
| User interfaces | WebSocial networksMobile apps | Decentralized apps (dApps) Centralized marketplaces or services |
| User authentication methods | User IDsPasswords Other authentication | Private key that unlocks access to owner’s records on a blockchain; the private key can be in a self-hosted wallet or a third-party wallet. |
| Financial system | Centrally managed by central banks and other financial institutions and networks | Run by smart contracts (basically “if, then else” scripts) and blockchain protocolsThere is no centralized control and there are no intermediaries to pay. |
| Currency | Centrally managed, government-backed currency (e.g., currency managed by a bank or a stored-value account provider) | Cryptocurrency built into decentralized blockchainUsers act as their own bank, but can delegate to a centralized exchange. |