The term 'Web3' encompasses internet applications and services, built on decentralized blockchains. Web3 initiatives are catalysing sizeable interest and private capital, thanks to their aspiration to play a founding role within the digital economy. However, the future evolution of the phenomenon, and the establishment of blockchains as the new paradigm underlying internet applications, are subject to a number of areas of uncertainty.
The paper outlines the incentives and limitations of the Web3 proposal. The large-scale diffusion of Web3 might be boosted by the spread of crypto-activities and by practices for information management that would meet stringent privacy requirements by design. Nevertheless, technical aspects that might prevent the full operation of applications and by Big Techs' preference for centralized technologies, which preserve their leading role within the digital economy, may undermine the spread of Web3.
