Web3
Web3 is a broad term for internet services that use blockchain-based networks, wallets, smart contracts or digital ownership. It is not one single technology or one company.
1. From accounts to wallets
Traditional web services usually identify you through an account controlled by the platform. Some Web3 applications allow a wallet to act as an identity and transaction tool. The wallet can authorize actions without giving the application your private key.
2. What is a smart contract?
A smart contract is code deployed to a blockchain that performs defined actions when its conditions are met. Smart contracts can support exchanges, lending, marketplaces, games, memberships, registries and many other applications.
3. Digital ownership and tokenisation
Web3 systems can represent access rights, membership, credentials, collectables or claims as digital tokens. Whether a token represents a legally enforceable real-world right depends on contracts, regulation and the organisation behind it — not merely on the token existing on a blockchain.
4. Decentralized applications
A decentralized application, often called a dApp, uses blockchain or smart contracts for part of its operation. Many dApps still depend on ordinary web hosting, developers, interfaces and service providers, so “decentralized” can describe some components rather than every part of a system.
5. Opportunities for Africa
Potential applications include cross-border commerce, digital identity systems, supply-chain records, creator platforms, tokenised services and new payment infrastructure. The strongest projects solve a real problem, work within applicable law and remain usable for ordinary people.
Knowledge Check
1. Is Web3 a single network or company?
Answer: No. It is a broad category of technologies and applications.
2. Does connecting a wallet require giving the website your recovery phrase?
Answer: No. A legitimate wallet connection should not require handing over the secret recovery phrase.
3. Does putting a real-world asset on a blockchain automatically make the legal claim valid?
Answer: No. Legal rights depend on contracts, law and enforceability as well as technology.
Continue to Lesson 5: Psychology of Money.