Looking closely at each Web phase, we will notice that the main issue is the data storing architecture.
Web1: each user was responsible for hosting their own data in a local computer/server, thus missing network effect, discoverability, and good UX.
Web2: companies are responsible for the custody of users’ data, causing a lack of privacy, freedom, interoperability, and power asymmetry.
The question that arose was: how do we create a neutral global digital database where we can store data and software without relying on a third party, like Companies and Governments?
That’s precisely the innovation of Bitcoin.
Satoshi Nakamoto was able to build a system where a network of computers (which anyone can be part of) replace a centralized entity in the role of validating transactions (in its case, financial), storing and ensuring ownership of digital data, and keeping all records immutable.
No single node or user of the network can arbitrarily change what is stored in this digital infrastructure, nor the underlying rules.
And this architecture composed of cryptography, a computer network, economic incentives, and users, is what we generically call a Blockchain.
Once the Bitcoin Blockchain – this single-purpose financial Blockchain – has proven itself safe and unbreakable over many years, naturally, some innovators ask themselves: why don’t we create a Blockchain where anyone can develop their own decentralized applications?
Why don’t we create a Blockchain that allows anyone to build their own cryptocurrency or immutable piece of software?
That led to the creation of Ethereum, Solana, and several other Application Blockchain, unlocking a massive market of decentralized applications that we now call Web3.