Journal Article

An Introduction to Web3 with Implications for Financial Services


Abstract: Web3 is used to describe the next iteration of the internet in which decentralized services are automated on blockchains. This paper describes the elements of Web3 including blockchains and tokens. It describes the largest decentralized finance protocols and some specific services where blockchain and tokens can be used. The paper concludes with a brief discussion of some regulatory challenges.

Keywords: Web3; tokenization; blockchain; cryptocurrency; financial services; efficiency; innovation;

JEL Classification: D23; D26; F24; G10; G11; G15; G19; G23; G28; L14; L86;

https://doi.org/10.29338/ph2023-3

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Provider: Federal Reserve Bank of Atlanta

Part of Series: Policy Hub

Publication Date: 2023-05-15

Volume: 2023

Issue: 3

Order Number: 2023-03