Web3, also known as Web 3.0, is the next significant stage in the evolution of the internet. This new internet phase will be based on decentralization, openness, and greater utilization for individual users, similar to the foundation of cryptocurrency and aided by IoT ecosystems, the emergence of the metaverse, and the rise of non-fungible tokens (NFTs).
It can be beneficial to review current and previous phases of the internet in order to better understand Web3. Unlike the current Web 2.0 phase, in which centralized entities such as large tech companies own platforms and apps, Web 3.0 platforms and apps will be developed, owned, and maintained by users.
The upcoming Web3 internet iteration is expected to be more like the initial Web 1.0 phase than the current Web 2.0 phase. Web1 was the first version of the World Wide Web, dating back to the 1990s. Web1 was defined by decentralized protocols and individual users, just as Web3 is expected to be.

https://wikipedia.org/wiki/Web_3.0

Web3 refers to the next evolution of the internet, emphasizing decentralization, blockchain technology, and user control. Unlike Web2, which is dominated by centralized platforms like Google and Facebook, Web3 aims to give users more ownership over their data, assets, and online identity.

Key components of Web3 include:
Blockchain: The underlying technology enabling peer-to-peer transactions without intermediaries.
Smart contracts: Self-executing contracts with terms directly written into code, enabling trustless agreements.
Cryptocurrencies: Digital assets used for transactions within decentralized networks.

Web3 supports decentralized applications (dApps), where users interact directly, without relying on centralized entities. This shift promises greater privacy, transparency, and control over digital assets. However, challenges like scalability, regulation, and user adoption remain hurdles for widespread implementation of Web3 technologies.