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Grace Ben
Grace Ben

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So… How Does Web3 Actually Work?

At the center of Web3 are three main things:

  1. Wallets
  2. Blockchains
  3. Smart contracts

Together, they replace banks, apps, and middlemen.


Wallets

Call it your digital identity

Instead of logging in with email and password, you log in with a wallet.

Your wallet is your account, your bank, and your digital ID all in one. It holds your crypto, NFTs, and access to Web3 apps. And most importantly: you own it. No company can freeze it, block you, or take it away.


Blockchains

you could call it your Public Record

Every action in Web3 happens on a blockchain.

When you send money, buy an NFT, vote, or use a Web3 app, the transaction is recorded publicly. This means anyone can verify it, no one can secretly change it, and no single company controls it.


Smart Contracts

Call it a code that keeps its word

Smart contracts are programs that live on the blockchain.

They automatically execute agreements when conditions are met, no human needed.

For example:

If you send money → you get the product.
If you stake tokens → you earn rewards.
If you vote → your vote is counted automatically.


Let’s say you want to send money to a friend.

In Web2, sending money means using a bank or app, waiting for approval, and trusting a company.

In Web3, you open your wallet, enter an address, send, and you’re done. No approvals. No delays. No third parties.


Sending money in Web3 is simple:

Wallet → Address → Send → Done.

  • No banks.
  • No approvals.
  • No reversals.

Web3 shifts the internet from:

“Platforms own everything.”

to:

“Users own everything.”

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