Web3 Made Simple: The Mall Analogy – Part 1

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13 Aug 2025

Introduction
The Evolution of the Internet
Understanding the “Why” of Web3
Blockchain — The Mall’s Ledger
Cryptocurrency — The Mall’s Money
Quick Self-Check
Join the Community

Introduction

This is for you if you’ve bumped into the term “Web3” more times than you can count but still can’t understand what it means. You see it online, you hear it in conversations, and maybe you’ve even nodded along pretending to get it, but deep down, you’re thinking, “Yeah… nope.” Most people scroll past anything Web3-related because the concept feels so ambiguous. And that’s exactly why so many are missing out on all the goodies and promises it offers. So if you’re reading this, the crypto angel has officially tapped you on the shoulder. You’re not just going to understand Web3, but you'll start your journey into it.

Let's dive in by going shopping at CryptoMall.

Imagine you're at a shopping mall. It might be Chadstone, Mall of America, Harrods, or even Shoprite. For this purpose, we’ll call it CryptoMall. It has everything, including your go-to clothing stores, grocery stores, thrift stores, and even that cozy spot to meet with friends.
The twist here is that CryptoMall isn’t owned by one company. The people who shop here, work here, or just hang out here own a piece of it. Yes, you too.

That’s the magic of Web3. It’s an evolution of the internet. It lets you show up, own, create, and profit from the things you already love doing. But how did we get here?

The Evolution of the Internet

Web1 (1990 – early 2000s)

Web1 could be described as a read-only library where you could only read books. No talking or writing notes. This was the first version of the internet. Websites were static. They didn’t ask for your opinion. The World Wide Web was invented in 1989 by Sir Tim Berners-Lee at CERN. He also built the first web browser (Nexus) and the HTML standard that websites still use today. An example of this today would be having social media with no comment section.

Web2 (2004 – today)

Suddenly, this read-only library turned into a place where you could do more than browse. This upgrade allowed us to interact. You can now post your own photos, comment on someone else’s, like your friend’s picture, and livestream your vacation if you wanted to.
Platforms like Facebook (2004), YouTube (2005), and Twitter (2006) made it easy for anyone to create and share content. The only limitation is that these platforms are run by huge corporations that decided the rules, collected your data, and kept the profits your presence helped create.

Web3 (2020 – future)

Web3 came to improve on Web2 by giving ownership to the people. Instead of companies, power and profits are shared with the people who use this internet. Web3 is powered by blockchain technology, which allows you to:

Control your digital identity and data
Own assets like cryptocurrencies and NFTs
Earn directly from your work with no middlemen
Have a say in how platforms are run through DAOs (Decentralized Autonomous Organizations)

If Web1 was a library, Web2 is a privately owned mall, and Web3 is a city where everyone can read, interact, and own.

Understanding the “Why” of Web3

Everything we do online, like sharing content, shopping, chatting with friends, and building communities, happens on platforms owned by big corporations. They make the rules, store your data, decide what stays and what goes, and pocket the profits your presence helps generate. In other words, you don’t own your online identity, you don’t own your data, and you don’t get a share of the value. Web3 offers you an opportunity to

Keep control of your digital identity and assets.
Earn directly from your work, creativity, and contributions.
Help make decisions about the platforms you use.
Build a digital economy where the community owns the value, not just a few shareholders.

Using our mall analogy, In Web2Mall, you could be the most popular store, bringing in huge crowds, but still the landlord, who is the mall owner, takes most of the benefit. In CryptoMall (Web3), not only do you keep your profits, you also own part of the mall. As the mall grows, you grow too.

Web3 is the crypto world’s attempt to reinvent the internet so power, profits, and control aren’t locked up at the top. Instead, they’re shared with the people who actually make the internet worth using: you!

Blockchain — The Mall’s Ledger

A ledger is a record of all financial transactions. In CryptoMall (Web3), Blockchain is the ledger. Think of the receipts and the accounting department rolled into one. Blockchain is Web3 record-keeping system. Before blockchain, humans had always kept ledgers but they were always controlled by someone.

Ancient Mesopotamia (3100 BC): Clay tablets recorded grain distribution.
1494: Luca Pacioli introduced double-entry bookkeeping
20th Century: Banks kept paper ledgers but later upgraded to digital databases.

In every version before blockchain, one central authority controlled the ledger. The king of it being the bank.

Blockchain blew up the idea that one entity had to keep records. Now, rather than having one central ledger:

The ledger is duplicated across thousands of computers (nodes) all over the world.
Everyone sees the same version.
No one can sneak in and change a past entry without everyone else knowing.
Transactions are locked in place (immutable) and visible to anyone (transparent).

Bank vs. Blockchain — Why Remove the Middleman?

In the Web2Mall, if you wanted to buy something, the bank was your gatekeeper:

You hand over your card.
The bank checks your balance.
They approve or decline the purchase.
They take a fee and can even reverse the transaction later.

In CryptoMall, there’s no central cashier. Every store in the mall has a copy of the ledger. When you spend CryptoMallCoin:

All the stores check together to see if you have enough.
If the network agrees, the transaction is added to the blockchain (the record).
No one can block it, change it, or take it back.

This is why blockchain is called a “trustless” system. Not because it’s untrustworthy but because you don’t have to put blind trust in a single authority. Trust is infused into the math, the code, and the network.

This matters because removing the middleman means

You can send value directly to someone on the other side of the world without a bank.
Fees can be lower and transfers faster.
No single company can lock you out of your own assets.

In our Mall Analogy, blockchain is the reason you can walk into any store, pay directly with MallCoin, and know the ledger is always accurate without having to ask permission from a mall manager or bank.

Cryptocurrency — The Mall’s Money

You probably wondered what I meant by CryptoMallCoin. If blockchain is CryptoMall’s record-keeping system, cryptocurrency is CryptoMall’s Money. It is the money you use to buy, sell, and participate in everything inside the mall.
In traditional malls (Web2), you might use cash or a bank card. But when you swipe that card, the bank still acts like a strict cashier that checks your balance, approves or declines your purchase, takes a small fee for handling it and can block or reverse your transaction later. In Cryptomall, our unit of exchange, CryptoMallCoin works differently.

It exists only in digital form — no bills or coins to carry.
It’s secured by cryptography, which makes it nearly impossible to forge.
It’s issued and tracked by the blockchain network, not by a bank or government.
No one can stop you from using it, as long as you have access to your wallet.

Bitcoin (BTC) was the first cryptocurrency, created in 2009 by Satoshi Nakamoto. We could think of it as digital gold. It is valuable, scarce (only 21 million will ever exist), and designed for peer-to-peer payments without banks.
Ethereum (ETH) was launched in 2015 by Vitalik Buterin. You can not only send ETH but also run applications (“smart contracts”) on its blockchain. It opened the door for NFTs, DeFi, and DAOs.

In our mall analogy, Blockchain is the mall’s accounting system while Cryptocurrency is the money flowing through the stores. You can hold it directly, with no bank vault or mall manager in between. This means:

Direct value exchange — you can send it to anyone, anywhere, in minutes.
Ownership — you control it with your wallet keys, not a bank account.
Programmable features — your “money” can unlock access to stores, give you voting rights, or reward you for contributing to the community.

Quick Self-Check

In our analogy, what’s the difference between Web2Mall and CryptoMall?
What’s the role of blockchain in CryptoMall?
Why is blockchain called a “trustless” system?
In our mall, what’s MallCoin and how is it different from regular mall money?
Ask a friend or family member what they think “Web3” means, then see if you can explain it to them using the mall analogy.

(Hint: If you can answer these in your own words, you’re already ahead of most people who’ve heard “Web3” but still have no idea what it means.)

In Part 2, we’ll:

Explore the different types of “MallCoins” (cryptocurrency - Bitcoin, Ethereum, altcoins, and tokens).
Visit the mall’s NFT art galleries and VIP lounges.
Set up your own Web3 “shopping bag” (wallet) so you can start collecting, buying, and owning.
Learn how to keep your assets safe while enjoying the perks.