Web3 is the term used to describe the evolution of the internet toward a decentralized model powered by blockchain technology. It enables peer-to-peer transactions, smart contracts, and token-based economies without the need for centralized platforms. Advocates see Web3 as a way to give users greater control over their data and digital assets, while critics point to scalability, regulation, and security challenges. It plays a growing role in cryptocurrency, DeFi, NFTs, and metaverse applications.