"Crypto" and "Web3" both leverage blockchain technology but they serve different purposes and have distinct implications.

Crypto, from the Greek "kryptos" meaning hidden, originally referred to cryptography but is now widely associated with cryptocurrencies. These digital assets use cryptographic methods to secure financial transactions and are primarily related to decentralized finance, trading, and investment. Despite their innovative potential, cryptocurrencies are often associated with volatility, speculation, and regulatory challenges, which can contribute to a negative perception.

Web3, in contrast represents a broader vision of the internet's future. It extends beyond financial transactions and DeFi to include decentralized applications (dApps), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and various AI applications. Web3 aims to create a decentralized internet where users have more control over their data and digital identities, a more intelligent and interconnected web that fosters transparency, security, and a user-centric online environment.

Naming the space Web3 allows capturing the extensive nature of decentralized technologies. Unlike crypto, which focuses on digital currencies and sometimes carries negative connotations, Web3 better represents the full scope of blockchain innovations, fostering a more inclusive and positive perception of the space.

Connotations: Finance, investment, market volatility, speculative trading, fraud, complexity.

The semantic field of "Crypto" includes terms that highlight both financial potential and risks associated with digital assets.

Cryptography: Encryption, decryption, keys, hashes.

Digital currencies: Bitcoin, Ethereum, altcoins, tokens.

Financial: Trading, investment, speculation, volatility.

Security: Blockchain, cryptographic security, secure transactions.

Complexity: Intricate, esoteric, opaque, sophisticated.

Crypto is narrowly concentrated on the economic implications of blockchain technology. This focus includes aspects like trading, investment, and the development of new financial instruments, which appeal primarily to investors and those involved in digital finance.

Crypto is perceived primarily as a high-risk, high-reward opportunity. While it offers potential significant returns, it is often associated with speculative trading and market instability. This perception can attract aggressive investors seeking substantial gains but may deter more conservative participants who are wary of volatility and potential fraud. The financial innovation presented by cryptocurrencies is acknowledged, but the associated risks often dominate the narrative.

Public perception of Crypto is mixed to negative. While there are proponents who view it as a revolutionary financial technology offering greater control and efficiency, many others associate it with market manipulation, fraud, and the dark web. This negative connotation stems from high-profile scams, regulatory crackdowns, and the complexity of the technology, which can make it seem inaccessible to the general public. Consequently, Crypto is often seen as niche and speculative, limiting its broader appeal.

Crypto faces significant regulatory challenges and scrutiny. Regulators are often skeptical due to concerns about fraud, money laundering, and the lack of consumer protection. High-profile incidents of hacking and financial crime have heightened these concerns, leading to stringent regulations in many jurisdictions. This regulatory scrutiny can stymie growth and adoption, posing ongoing challenges for the Crypto industry.

Connotations: Futuristic, inclusive, technological advancement, decentralized internet, innovation, next-generation web.

The semantic field of "Web3" includes terms that generally carry positive and innovative associations.

Web3 encompasses a diverse range of technologies and applications beyond just financial transactions. This broad scope allows Web3 to appeal to a wide audience, from developers and entrepreneurs to tech enthusiasts and general internet users. The comprehensive nature of Web3 positions it as a revolutionary shift in how the internet operates, promoting a more interconnected and decentralized digital landscape.

Market perception of Web3 is largely positive. It is seen as a driving force for technological progress and innovation. Investors and industry leaders are particularly attracted to Web3’s potential to create new business models and disrupt existing industries. This perception is bolstered by the active development and adoption of Web3 technologies by various startups and established tech companies. The promise of a decentralized internet where users have greater control over their data and digital assets resonates strongly with market participants looking for the next big technological shift.

Public perception of Web3 is generally favorable, with many viewing it as a forward-thinking and inclusive approach to the internet. It appeals to individuals who advocate for greater data privacy, user empowerment, and the democratization of technology. The idea of decentralizing control from large corporations to individual users is particularly appealing to those concerned about data security and privacy. This positive perception is enhanced by the community-driven nature of Web3 projects, which emphasize transparency and user-centric development.

Regulators tend to view Web3 more favorably compared to traditional cryptocurrencies. The emphasis on transparency, user control, and the potential for enhanced security aligns with regulatory goals of protecting user data and promoting fair competition. Web3’s decentralized nature can potentially reduce the risks associated with centralized data breaches and monopolistic control, making it a more palatable option for regulators.

"Crypto is a technology for decentralizing power, control, and coordination. It includes web3 which is a new platform for testing decentralized applications and DeFi which is a new decentralized financial system that runs on blockchains, as well as supporting services"

This definition, which is the introduction to the Crypto space homepage and also the description of the entity is inaccurate for several reasons.

Web3 is not a subset of crypto but a broader concept that includes various technologies and applications leveraging blockchain for decentralization. Web3 aims to create a decentralized internet infrastructure, including decentralized applications (dApps), decentralized autonomous organizations (DAOs), and non-fungible tokens (NFTs). These components operate independently of traditional cryptocurrencies and represent a larger vision for how the internet can function.

Cryptocurrencies are specific digital assets that use cryptography for secure transactions on decentralized networks. While cryptocurrencies play a role in decentralization, they are not the overarching technology for all forms of decentralized applications​​​​.

Thirdly, DeFi is not a subset of crypto but a distinct sector within the broader Web3 ecosystem. Decentralized finance provides financial services through decentralized platforms on blockchain technology. While DeFi utilizes cryptocurrencies for transactions, it goes beyond this by creating entirely new financial systems and models.

Web3 is a new, better internet that gives users full control over their data and interactions. It leverages blockchain technology to enhance privacy, security, and transparency. Unlike the current internet dominated by centralized corporations, Web3 decentralizes control and reduces censorship, fostering a more democratic, participatory, and user-empowered digital landscape.