Web3, Blockchain, and DApps: Differences Explained

If you’re new to blockchain and decentralized applications (dApps), you may have heard the terms Web3 and Blockchain. They’re often used interchangeably, but there are important differences between the two that can help explain how they work in conjunction with each other. 

In this article, we’ll explain what web3 and blockchain are as well as how they differ from each other. We’ll also discuss why these technologies are important for marketers today.


Web3 is an open-source software stack for decentralized applications (dApps). It consists of a suite of protocols, standards and interfaces that make it possible to build and run apps on a peer-to-peer network.

A decentralized web means no single entity controls it; instead, it’s operated by its users through consensus. Web3 combines the power of blockchains with current web technology to create an interoperable system where everyone has control over their own data rather than relying on centralized intermediaries like Google or Facebook.


Blockchain is a decentralized and transparent digital ledger that records transactions in a secure and immutable manner. It is a foundational technology of Web3 and provides a way to store and verify data without relying on a central authority.

Blockchain technology has various applications beyond cryptocurrencies. It is being explored in industries such as finance, supply chain management, healthcare, and voting systems to increase transparency, trust, and efficiency.


A DApp is a decentralized application that runs on a blockchain. It is an application that can be accessed from the internet, but it’s not controlled by any central authority and it runs autonomously like a P2P network.

dApps can incorporate trading pairs such as XRP USDT and interact with mining pools through smart contracts. For example, a decentralized exchange (DEX) dApp can offer trading pairs for users to exchange cryptocurrencies, and a mining pool dApp can facilitate collective mining efforts.

A DApp has three properties:

  • Open source – The code must be available for anyone to inspect and audit at any time. This ensures that no one can manipulate data or perform fraudulent activities without getting caught (theoretically).
  • Borderless – Users can interact with each other without having to worry about their location or jurisdiction because there are no borders involved in this technology; everyone is equal regardless of where they live or what laws apply to them personally (again, theoretically).
  • Autonomous – The network doesn’t rely on third parties such as governments or banks; instead everything runs via consensus among users who run nodes through which transactions are verified by miners/validators who get rewarded with new tokens created during block creation process

Key differences between Web3, Blockchain, and DApps 

Use Cases

Web3, blockchain, and dApps have different use cases within the decentralized ecosystem.

Web3 use cases focus on creating a decentralized internet that offers greater privacy, security, and user control. One prominent use case is decentralized finance (DeFi), where financial services such as lending, borrowing, and trading are conducted without intermediaries like banks. DeFi dApps leverage Web3 technologies to provide users with transparent and open financial services.

Blockchain technology, on the other hand, has a broader range of use cases beyond just Web3. It can be used for secure record-keeping, immutable data storage, and enhanced transparency. Industries such as supply chain management, healthcare, voting systems, and intellectual property management can benefit from the decentralized and tamper-resistant nature of blockchain.

DApps are software applications that leverage blockchain technology and operate within the Web3 environment. Their use cases cover various domains, including finance, gaming, social networking, and voting. For example, decentralized exchanges (DEXs) are dApps that facilitate peer-to-peer trading of cryptocurrencies, removing the need for intermediaries like traditional exchanges.


Web3, blockchain, and dApps are key components of the decentralized ecosystem, each playing a distinct role.

Web3 constitutes the vision of a decentralized web ecosystem where separate computers make up the network. It aims to create a more open and democratic internet by giving users greater control over their data and online identities. Web3 advocates for decentralization, user empowerment, and the use of blockchain technology to build the next generation of applications and services.

Blockchain, on the other hand, is the technology that powers the Web3 network. It is a decentralized and distributed ledger that ensures secure and transparent transactions without the need for intermediaries. Blockchain provides the foundation for decentralization, immutability, and transparency in the Web3 ecosystem. It enables the secure recording and verification of transactions, smart contracts, and other digital assets.

DApps, or decentralized applications, are software applications built on blockchain technology that operate within the Web3 ecosystem. They leverage the decentralized nature of blockchain to provide various functionalities across different domains such as finance, gaming, social networking, and more. DApps are designed to operate without a central authority, facilitating trustless interactions between users. They offer benefits such as increased privacy, transparency, and user control due to the underlying blockchain technology.

Speed and Scalability

When it comes to speed and scalability, there are some key differences between Web3, blockchain, and dApps.

Web3 mainly focuses on creating a decentralized web ecosystem that prioritizes user control and privacy. While Web3 itself doesn’t directly address speed and scalability, it advocates for the use of technologies that can improve these aspects. Web3 applications can leverage various scalability solutions, such as layer 2 protocols or sharding, to enhance transaction throughput and reduce congestion on the underlying blockchain network.

Blockchain, as the underlying technology powering decentralized systems, faces challenges in terms of speed and scalability. Traditional blockchain networks, like Bitcoin and Ethereum, have limitations in terms of the number of transactions they can handle per second. For example, Bitcoin can handle around 7 transactions per second, and Ethereum is currently limited to around 15-30 transactions per second. However, there are ongoing efforts to improve blockchain scalability, such as the development of layer 2 solutions like Lightning Network and Ethereum’s upcoming upgrade to Ethereum 2.0, which will introduce sharding to improve scalability.

dApps, being built on top of blockchain technology, inherit the speed and scalability limitations of the underlying blockchain network. The transaction throughput and scalability of a dApp depend on the specific blockchain it is built on. However, it’s important to note that dApps can explore scalability solutions, such as implementing off-chain transactions or utilizing layer 2 protocols, to enhance the user experience and increase scalability.


Security is an important consideration in the Web3, blockchain, and dApps ecosystem.

Web3, being the vision for a decentralized web, promotes the idea of increased security and privacy for users. By utilizing technologies like blockchain, which offers immutability and transparency, Web3 aims to provide a more secure environment for online interactions.

Blockchain, as the underlying technology, is known for its strong security features. The decentralized nature of blockchain, along with cryptographic techniques, ensures tamper-resistance and protection against fraud or unauthorized modifications.

dApps, as applications built on blockchain, inherit the security benefits of the underlying blockchain network. The use of smart contracts, which are self-executing and tamper-proof, provides security guarantees for transactions and interactions within dApps.

Web3, Blockchain, and DApps – Which One Should You Work In?

Deciding whether to work in Web3, blockchain, or dApps depends on your interests, skills, and career goals. Each field offers unique opportunities and challenges. Here are some factors to consider:

Web3: If you are passionate about building a decentralized web and exploring the possibilities of emerging technologies like blockchain, Web3 can be a fascinating field to work in. Web3 focuses on user control, privacy, and innovation. It involves developing tools, protocols, and infrastructure to enable decentralized applications and services. Working in Web3 requires a deep understanding of blockchain technology, cryptography, and decentralized systems.

Blockchain: If you enjoy diving into the technical aspects of blockchain and are excited about solving complex problems, working in blockchain development or research may be a good fit for you. Blockchain development involves designing and implementing smart contracts, creating decentralized applications, and contributing to the blockchain ecosystem. It requires proficiency in programming languages like Solidity for Ethereum or other blockchain platforms, as well as knowledge of data structures, consensus mechanisms, and cryptography.

Apps: If you have a strong interest in developing applications that leverage blockchain technology and want to explore the potential of decentralized systems, working on decentralized applications (dApps) can be rewarding. Building dApps involves utilizing blockchain platforms to create applications that offer transparency, trust, and user empowerment. Skills required for dApp development include familiarity with blockchain platforms, smart contract development, front-end and back-end programming, and user experience design.


Ultimately, the choice depends on your background, skills, and personal interests. It might be helpful to explore each area further, consider the demand and market opportunities, and evaluate which one aligns best with your career goals. Additionally, staying up to date with the latest trends and advancements in the industry can help you make an informed decision.


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