Instead, everything happens on the blockchain, which is this fancy computer network that lets everyone in the world share information and stuff.

Now, Web3 is kind of like the next version of the internet (which we’re currently using right now), but with a few key differences. For one thing, it’s more decentralized than traditional web services, which means there’s no single company or organization controlling everything. Instead, everyone can participate in creating and sharing content on this new “web” of ours.

So how does all this work? Well, let me give you an example. Let’s say you want to invest some money into a cool new startup that’s using blockchain technology to revolutionize the way we do things (like buying groceries or renting apartments). Instead of going through a traditional bank and paying fees for every transaction, you can use DeFi to send your funds directly to this company’s smart contract.

A “smart contract” is basically just a fancy computer program that runs on the blockchain and automatically executes certain actions based on predefined conditions (like sending money when someone meets a specific criteria). So in our example, if you meet the investment requirements set by the startup, your funds will be automatically transferred to their account without any middleman or fees.

Now, Web3 for a minute. One of the key benefits of this new “web” is that it allows anyone to participate and contribute content without having to go through some big corporation or organization. For example, if you want to create your own website or blog, you can do so using one of the many decentralized platforms available on Web3 (like Ethereum or IPFS).

These platforms allow you to store your data and content directly on the blockchain, which means it’s more secure than traditional web services that are controlled by a single company. Plus, since everyone can participate in creating and sharing content on this new “web,” there’s no need for expensive servers or infrastructure (which is great news if you’re trying to save money).

That’s the basics of DeFi and Web3 in a nutshell. If you want to learn more, just let me know and I can hook you up with some resources that will help you get started.