What is Web3?

Web3 represents the next generation of the internet, where users benefit from decentralization, and have more control over their data, identity, and digital assets. It is built on technologies such as blockchain, cryptocurrency, and decentralized applications (dApps).

Key Features of Web3

• Decentralization: No single entity controls the network
• Trustless systems: Reduced need for intermediaries
• User-owned data and identity
• Native payments through cryptocurrencies
• Open-source and interoperable protocols

Web3 vs. Web2 Authentication

With Web2 applications, users authenticate using methods such as username/password, OAuth, and Single Sign-On (SSO). Web3 enabled dApps allow users to sign-in with their crypto wallet and make transactions on blockchain networks while providing more control over their identity and data.

Web 2.0 Authentication

• Centralized user accounts managed by service providers
• Username and password combinations
• OAuth and social login options
• User data stored on servers owned by third parties
• Potential for data breaches and unauthorized access

Web3 Authentication

• Decentralized identity using blockchain wallets
• Cryptographic key pairs for secure authentication
• Sign-in with Ethereum (SIWE) and similar protocols
• User retains control of their identity and data
• Reduced risk of large-scale data breaches

Benefits of Web3 Authentication

• Enhanced privacy: Users control what information they share
• Improved security: No central database of user credentials to hack
• Portability: One wallet can be used across multiple applications
• Ownership: Users truly own their digital identity
• Reduced friction: No need to create new accounts for each service

As Web3 continues to evolve, it promises to reshape how we interact with digital services, placing more control and ownership in the hands of users. Understanding these fundamental differences is crucial for developers and users alike as we move towards a more decentralized web.

To learn more about specific Web3 authentication methods, check out our guide on Sign-In with Ethereum (SIWE).