Web3 introduces several key concepts and technologies, including :

1. Blockchain Technology : Web3 leverages blockchain, a distributed and decentralized ledger, to enable secure and transparent transactions and data storage. Blockchain ensures immutability, censorship resistance, and enhanced trust in the digital world.

2. Decentralized Applications (DApps) : Web3 supports the development and deployment of decentralized applications, also known as DApps. These applications run on decentralized networks rather than traditional servers, and they often utilize smart contracts to automate processes and ensure trust among participants.

3. Smart Contracts : Web3 relies on smart contracts, which are self-executing contracts with predefined rules encoded on the blockchain. Smart contracts enable automated and verifiable transactions without the need for intermediaries.

4. Cryptocurrencies and Tokens : Web3 incorporates cryptocurrencies and tokens as digital assets that can be transferred, stored, and used within decentralized ecosystems. Cryptocurrencies, such as Bitcoin and Ethereum, serve as a medium of exchange, while tokens represent various assets, utilities, or rights within a specific DApp or blockchain ecosystem.

5. Decentralized Finance (DeFi) : Web3 enables the development of decentralized finance applications, also known as DeFi. DeFi aims to recreate traditional financial services, such as lending, borrowing, and trading, in a decentralized and permissionless manner, removing the need for intermediaries like banks.

6. Interoperability : Web3 focuses on enabling interoperability among various blockchains and DApps, allowing seamless communication and transfer of assets across different networks. This promotes collaboration and expands the possibilities of decentralized applications.

7. Self-Sovereign Identity : Web3 introduces the concept of self-sovereign identity, where individuals have full control over their digital identities and personal data. It allows users to manage and authenticate their identities without relying on centralized authorities, enhancing privacy and security.

8. Decentralized Governance : Web3 encourages decentralized governance models, where decision-making processes are open and transparent, involving token holders or participants in shaping the future development and direction of protocols and DApps.