Web3

Web3 is the next evolution of the internet built on decentralized technologies where users own their digital assets, identities, and data without relying on centralized intermediaries. Unlike Web2 platforms controlled by companies like Google and Meta, Web3 operates through blockchains, smart contracts, and cryptographic authentication where users interact through wallets instead of passwords.

Users control their own private keys and digital property, enabling ownership of NFTs, governance tokens, and protocol shares. Value flows directly between participants through tokenized systems, including DeFi applications, decentralized autonomous organizations (DAOs), and permissionless protocols where anyone can participate without approval.

The ecosystem encompasses everything from decentralized finance to gaming, social media, and digital identity management. Smart contracts automate agreements and transactions, while blockchain networks provide transparent, immutable record-keeping.

Web3 is due to its value under constant threat of malicious actors who try to exploit its users through phishing and other social engineering techniques that allow them to activate wallet drainers or expose private keys or seed phrases. Due to the nature of Web3 and crypto assets, these stolen assets are in most cases irretrievable.

• Use hardware wallets (also known as cold storage) for significant holdings and verify all contract interactions before signing
• Practice proper key management by storing seed phrases offline in multiple secure locations
• Research protocols thoroughly and understand the risks of experimental DeFi applications
• Use security tools that analyze transactions before execution to prevent wallet draining attacks
• The Terra Luna collapse in 2022, which wiped out $60 billion in value, demonstrates how quickly Web3 ecosystems can fail when underlying protocols have fundamental flaws or economic vulnerabilities