We are at a point in our technological journey, where much of the internet as we experience it today is considered to be Web2 - which is centered around social platforms and mobile developments, all primarily owned and controlled by centralized entities like large corporations.

However, the next generation of the internet is meant to be decentralized.

Meaning that instead of large corporations owning our information and assets, we own them and can manage them how we choose. Web3 is an interactive ecosystem of decentralized networks, applications, and services that are designed to be more secure, transparent, and accessible than traditional web-based technologies.

So what will the next generation of the internet look like?

Who really knows honestly, so for now- here are some core components that make Web3 as we know it today:

1. Decentralized Networks: Web3 relies on networks that are built using blockchains and other distributed systems. These networks are designed to be decentralized and peer-to-peer, enabling users to interact with each other without the need for a central authority.

2. Cryptocurrencies: Blockchain networks use cryptocurrencies such as Bitcoin and Ethereum as their native currencies. These currencies are designed to be decentralized and secure, allowing users to transact independently.

3. Smart Contracts: Smart contracts are self-executing contracts that run on the blockchain, that automatically execute the terms of a contract when certain predefined conditions are met. Once a smart contract is deployed on a blockchain network, it becomes immutable, meaning that the terms of the contract cannot be changed. This makes smart contracts a secure and reliable way to conduct transactions, set conditions, and execute agreements without the need for intermediaries.

4. Decentralized Applications (dApps): DAPPS are applications that run on Web3 networks. These applications are built using smart contracts and can operate without the need for a central authority. They are being used for a wide range of applications, including financial services, gaming, social media, community hubs, and more. Since they run on a decentralized network, DApps can provide greater security, transparency, and trust than traditional applications, which rely on centralized servers that are vulnerable to attacks and manipulation.

   However, DApps also face some challenges, such as scalability, interoperability, and user adoption. Nevertheless, the development of DApps is a rapidly growing field with the potential to revolutionize many industries and applications.

5. Interoperability: Web3 networks are designed to be interoperable, meaning that they can communicate and exchange data with each other. This allows for the creation of a seamless, interconnected ecosystem of decentralized applications.

6. Digital Wallets: Digital wallets are software applications that allow users to manage their cryptocurrencies and interact with Web3 networks. These wallets are designed to be secure and user-friendly, making it easy for users to participate, and transact across Web3 applications.

7. Decentralized Finance (DeFi): DeFi is a subset of Web3 that focuses on building decentralized financial applications & solutions. Many of these are designed to provide financial services such as lending, borrowing, staking, and trading without the need for central authorities.

8. Decentralized Autonomous Organizations (DAOs): DAOs are organizations that are run by smart contracts and operate on a Web3 network. DAOs can be used for a wide range of applications, including investment funds, decentralized marketplaces, and decentralized autonomous corporations. They provide a new model for decentralized governance and can enable a more democratic and transparent decision-making process, without the need for centralized authorities or intermediaries.

   However, DAOs also face some challenges, such as security vulnerabilities, governance issues, and the need for effective community management. Nevertheless, the development of DAOs is an exciting area of innovation with the potential to transform many industries and applications.

There are still many valuable things being built daily in the realm of Web3, so this list will likely expand with time- but for now, these seem to hold true as reliable pillars of the Web3 ecosystem today.