The internet has evolved significantly over the years, transitioning from Web1, which was primarily a read-only platform, to Web2, characterized by user-generated content and social media. Now, we are on the brink of Web3, a decentralized web that promises to give users more control over their data and digital interactions. This article explores how Web3 aims to solve some of the limitations of its predecessors and what it means for the future of the internet.
Most articles about Web3 read like they were written only for people already inside the circle.
Terms like rollups, L2s, ZK, AA get tossed around casually, as if everyone has been writing Solidity since college. I would read those pieces, nod along, close the tab, and feel like I still didn’t genuinely understand what was going on.
Eventually, I asked a simpler question:
What problem does Web3 actually solve?
That question changed how I looked at everything.
This article is my attempt to explain Web3 using the mental models that finally made it click for me.
Why Web3 feels confusing
Most explanations jump straight into hashing, consensus, or cryptography.
It’s like being taught how an engine works before knowing what a car is.
So here’s the foundational model that would have helped me on day one:
Web2 → private computers
Web3 → shared computers
In Web2, companies own the machines, and we trust them.
In Web3, the machines are collectively owned, and the rules are enforced publicly.
That’s the core.
Everything else builds on top of this idea.
The simplest mental model
Blockchains are shared state machines
A blockchain maintains a state (balances, ownership, variables) and transitions that state through strict rules (transactions), agreed upon by multiple parties without requiring a trusted middleman.
Imagine a global spreadsheet that anyone can verify. If you want to update it, you must follow rules. Everyone sees the same final sheet. No one can secretly change it.
Once this clicked, the other pieces started aligning.
Where Ethereum fits
When I stopped thinking of Ethereum as “a computer in the sky” and started seeing it as shared financial state + rules, things clicked.
Ethereum is a great fit when your app’s core logic is about who owns what and how value moves - like swaps, lending, or auctions.
It’s not built for heavy storage or app logic; gas makes that impractical. So most real apps keep rich logic off-chain and only settle what truly matters on-chain.
The Internet Computer (IC)
A different idea: blockchain as application backend
The IC asks another question:
What if the blockchain could store your app logic, data, and UI in one place?
In a traditional stack you might have:
frontend on Vercel
backend on AWS
smart contracts on Ethereum
IC combines all of this into a single deployment target called a canister.
So your mental map becomes:
Ethereum → programmable balance sheet
IC → programmable cloud
Different goals, different strengths.
Two real examples
To ground this, here are two product types and where each fits naturally.
Example A: Uniswap
A decentralized exchange
Needs: handle liquidity, swap assets, update balances.
All math, money, and rules - perfect for Ethereum.
So: Uniswap - EVM is the right home
–––––
Example B: Notion-style collaborative writing app
Needs: auth, editing documents, saving text, serving UI
99% of this is normal application behavior.
The financial state is secondary.
Storing text on Ethereum makes no sense; paying gas per keystroke is absurd.
A canister can serve UI, store docs, manage identity, and persist state - all in one place.
So: Notion-style app - IC is a better fit
This is the cleanest way I’ve found to understand the difference between the two worlds.
Why L2s exist
Ethereum got popular.
That meant higher traffic → higher fees → slower UX.
We can’t scale block size forever without hurting decentralization.
So the ecosystem introduced Layer 2 networks.
L2s (Layer 2s): Secondary frameworks or protocols built on top of an existing blockchain to improve scalability and efficiency.
Rollups: A scaling solution that processes transactions off-chain and posts the results on-chain.
Mental model:
Ethereum is the Supreme Court
L2s are local courts
L2s handle day-to-day activity; only final results go to Ethereum - the Supreme Court.
This preserves security while increasing throughput.
Modularity
Modern blockchain design separates responsibilities:
Execution → running logic
Consensus → ordering transactions
Data Availability → storing results
Settlement → final agreement
Instead of one chain doing everything, multiple layers coordinate.
This creates flexibility and specialization.
Ethereum is moving in this direction.
IC approaches this differently; it is more integrated today.
Different philosophies; both valid.
Zero-Knowledge (ZK)
ZK proofs allow someone to prove that something is true without revealing the underlying data.
ZK (Zero-Knowledge): Cryptographic methods that allow one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself.
Analogy:
A teacher certifies you scored 100/100 without showing your answer sheet.
This allows blockchains to verify correctness without re-executing the entire computation.
It unlocks
scaling
privacy
fair verification
identity
gaming
Instead of trusting the data, you trust the proof.
Account Abstraction (AA)
Current wallet UX is painful.
Seed phrases, constant signatures, paying gas every time.
AA makes accounts programmable.
AA (Account Abstraction): A concept that allows for more flexible and programmable user accounts on the blockchain.
This enables:
smart wallets
social recovery
gas sponsorship
batch actions
passkey login
It moves blockchain UX closer to normal software.
Probably one of the most important shifts underway.
Where things appear to be heading
User-friendly wallets
Application-specific chains
Privacy as a spectrum
Different chains communicating cleanly
ZK used outside finance
Web3 apps that feel like Web2 apps
Eventually, users won’t care which chain an app runs on
just as we don’t care which database a bank uses.
Blockchain becomes an implementation detail.
The part that excites me
I’m most drawn to the idea that people can choose how public or private they want to be while still participating. A system that respects individuality yet still allows collaboration feels closer to how humans actually operate.
Public when necessary.
Private when preferred.
Still able to cooperate.
That spectrum feels meaningful.
Final thought
In summary, Web3 represents a paradigm shift in how we interact with the internet, emphasizing decentralization, user control, and transparency. By understanding the core concepts and technologies driving this change, we can better appreciate the potential impact on various industries and our daily lives. As we continue to explore and develop Web3, it is crucial to remain informed and engaged with these advancements.
This isn’t about picking a winner.
Ethereum and the IC can both be right depending on what you are building.
The real win is having more tools to create things that matter.
If Web2 is “trust me,”
Web3 is “you don’t have to.”
That’s a worthwhile idea to explore.
That is all about my present mental model; if you see it differently, or want to share your angle, I’m always up for learning. How do you envision Web3 impacting your daily internet use?
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