Web 3.0 and decentralization: does your business need a blockchain-based website

Web 3.0 opens a new chapter in the development of the internet, and therefore websites. Decentralization, security, and freedom are its core principles, giving users control over their data and businesses trust and direct contact with their audience. Read on to find out how a blockchain-based website works and whether your company needs one.

What is Web3 technology and decentralized websites

In recent years, there has been increasing talk about what Web3 is and how this technology is changing the internet. It's simple: it allows data (messages, photos, etc.) to be distributed among many independent nodes — without intermediaries, censorship, or risk of loss.

How does Web3 work? It is based on blockchain: information is stored in the form of block chains and copied to thousands of computers. It is impossible to falsify or change such data — the system is secure, transparent, and stable. Even if one node goes offline, the blockchain-based website in Ukraine and other countries will remain accessible.

Thus, if we were to define a decentralized website, it would be a resource without a single control center that uses multiple nodes in its work. Only the owner of the private key can change the resource's data, including deleting information, which ensures protection and independence. Therefore, Web3 for business is a reliable way to strengthen trust in a brand.

Differences from Web 2.0: security, ownership

The main differences between Web 3.0 and Web 2.0 concern two important aspects:

• in Web 2.0, information is stored on central servers, which can fail or be hacked, so the user is completely dependent on the platform. The security of a Web3 site is ensured through decentralization and cryptography. Data is not stored in one place, but is duplicated across multiple network nodes. This is the main security advantage of a blockchain site;
• in Web 2.0, users do not control their data — the platforms on which it is stored can change or delete it. Data ownership in Web3 works differently. Users manage their assets through blockchain and private keys, controlling access and protecting information themselves.

Thus, the owner of a blockchain website can be sure that the data is reliably protected from hacking or censorship, and users retain full control over their information.

Infrastructure: IPFS, ENS, smart contracts

Modern decentralized resources do not run on traditional servers, but on a new technological base. The blockchain infrastructure of a website consists of the following components: IPFS, ENS, and smart contracts.

IPFS

InterPlanetary File System is a file system designed for storing and delivering content without a single server. Using IPFS for websites allows files to be placed directly on multiple nodes around the world, and access to them is provided via a unique hash.

How to deploy a website on IPFS? Contact IT companies that successfully create such resources. IPFS configuration is actively developing in Ukraine, and local nodes and guides in Russian and Ukrainian are already available to developers.

ENS

Ethereum Name Service is a decentralized domain name system. It allows you to replace complex IPFS addresses with convenient and understandable ones. ENS domains for websites work without traditional DNS servers, which means they cannot be blocked and are completely under the control of the owner.

Smart contracts

Smart contracts are automated programs within the blockchain that manage interactions between users and services. They execute agreements without the involvement of third parties — for example, they automatically transfer money, grant access rights, or launch processes.

Who is a Web3 site (DeFi, DAO, NFT) suitable for?

Decentralized resources are not always necessary. For example, developing a landing page does not require them, and it will cost less. But a Web3 site is relevant for companies and projects that value decentralization, transparency, and direct communication with users without intermediaries:

• DeFi platforms: if a company needs to create websites that offer decentralized lending and asset exchange services, Web3 will provide direct access to smart contracts and user wallets;
• DAO website: for decentralized autonomous organizations, it is important that participants can vote, propose initiatives, and track decisions using a secure interface;
• NFT business websites where you can safely buy, sell, and store NFTs;
• Decentralized marketplace: if you want to create a platform for trading goods without intermediaries, the Web3 platform will allow users to make deals directly;
• Exchanges, trading services, and startups that issue their own tokens — Web3 solutions for crypto businesses help you interact securely with the blockchain, manage digital assets, and build trust with users from the very first touch;
• corporate website development — companies seeking to increase security and trust can use Web3 technologies to protect data and interact with customers directly.

Thus, if your project operates in these areas, a Web3 website is not just a trendy solution, but a step towards complete digital autonomy.

Examples and risks

Although Web3 promises decentralization and control, it is important to remember the potential vulnerabilities:

• the risks of a Web3 website are related to technical complexity and high security requirements. Users are responsible for storing their private keys and understanding cryptocurrency wallets;
• the disadvantages of decentralization: if a user loses access to their wallet or keys, even the resource owner cannot help them recover them. In addition, updates and improvements require the consent of the entire network, so changes are slow;
• Web3 security issues are primarily vulnerabilities in smart contracts, where errors in the code can lead to the loss of funds. There is also a high risk of phishing, where fraudsters fake platform or wallet interfaces to gain access to user data through deception.

Against the backdrop of these challenges, it is especially important to study examples of Web3 sites that demonstrate how decentralized solutions can be successfully implemented with a high level of security and user convenience.

To learn more about blockchain-based websites, contact the specialists at the IT company Megasite in Kyiv. We will advise you and develop a comprehensive solution based on successful Web3 projects and best practices in decentralized development in Ukraine and around the world.