Web3 is a broad vision for internet services built with blockchain networks, crypto assets, and applications—not one specific product or a precisely defined protocol. To understand its “coins,” first separate the network from the asset it uses, then learn how tokens, wallets, addresses, and transaction fees fit together.
What is Web3?
Web3 is a name for a vision of internet services that use blockchain technology and crypto assets. Ethereum.org describes ideas associated with Web3 such as decentralization, permissionless participation, native payments, and users holding certain digital assets. The term has no single rigid definition, however, and projects vary in how much control or ownership they actually give users. Treat those qualities as design goals, not guarantees. Ethereum.org’s overview of Web3 explains the concept and its limits.
What is a blockchain network, and what is its coin?
A blockchain is a network that records transactions and coordinates activity among participants. A network’s native asset is a crypto asset that belongs to that network’s own system. The network and the asset are related, but they are not the same thing.
Bitcoin and bitcoin
Bitcoin is a network designed for digital currency. Bitcoin, often written BTC, is its native asset and is used within that network.
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Ethereum and ether (ETH)
Ethereum is a platform that supports decentralized applications and digital assets through smart contracts—programs that run on the blockchain. Ether, or ETH, is Ethereum’s native asset. Users also need ETH to pay transaction fees on Ethereum. For an overview of the distinction, see Ethereum.org’s comparison of Ethereum and Bitcoin.
These different purposes do not make one network a better investment than the other. They describe how the networks are designed to be used; they do not establish future value or investment suitability.
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What is the difference between a coin, a token, and a decentralized application?
People often use “coin” casually for many crypto assets, but a useful distinction is that a coin is typically a network’s native asset, while a token is created or used through a network’s applications or smart contracts. Ethereum, for example, has ETH as its native asset and also hosts tokens created by other projects. A token is not automatically the native coin of the network on which it exists.
A decentralized application, or dapp, is an application that uses blockchain-based components. Some dapps let users interact with tokens or trade them; others serve different purposes. A dapp is not necessarily a place to buy crypto. Ethereum.org’s guide to applications describes the range.
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What is a wallet, an account, an address, and a key?
A wallet is software or a device that helps you use an account: it can display balances, sign transactions, and connect to applications. It does not literally contain coins in the way a physical wallet holds cash. Crypto assets are recorded on their respective networks; the wallet helps you manage the credentials that authorize activity.
Ethereum accounts and addresses
An Ethereum account is based on a pair of cryptographic keys and has a public address. You can share the address to receive assets. The private key is secret and authorizes transactions. A recovery phrase, when a wallet provides one, can restore access to the wallet’s keys and must also remain secret. Ethereum.org’s account-creation guide explains how accounts and keys relate.
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Are my wallet and my Ethereum account the same?
No. The account is the key-based identity on Ethereum; the wallet is the interface you use to access and manage it. Wallets can be software or hardware and may run on a phone, computer, or browser. You can use a wallet to manage an account, but the two terms do not mean the same thing. See Ethereum.org’s wallet guide for wallet types and functions.
Self-custody and exchange accounts
With a self-custody wallet, you control the keys and are responsible for protecting them and keeping backups. With a centralized exchange account, the exchange typically holds the assets’ keys, and account recovery may work more like a conventional username-and-password process. That convenience comes with reliance on the exchange and exposure to its operational and financial risks. These are different custody arrangements, not a universal choice between “safe” and “unsafe.”
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Can I send bitcoin to an Ethereum address, or ether to a Bitcoin address?
Not as a normal transfer. Bitcoin and Ethereum are separate networks, and their addresses use different formats. A Bitcoin address is not an Ethereum address, and sending an asset on the wrong network can result in loss. The sender and recipient need to select the same network and use an address intended for that network.
Some assets are available on more than one network, but that does not make the networks interchangeable. A wrapped asset such as WBTC on Ethereum is an Ethereum token representing Bitcoin exposure; it is not native bitcoin recorded on the Bitcoin blockchain. Bridges move representations of assets between networks and add operational and security considerations. Beginners should not treat a wrapped token as identical to the original network asset. Learn more in Ethereum.org’s introduction to blockchain bridges.
How do Ethereum transactions and fees work?
To send an asset on Ethereum, you need the recipient’s address on the same network and enough ETH to cover the transaction fee. Fees vary with network conditions. Before confirming, check the address, network, asset, and transaction details. Use copy-and-paste or a QR code carefully; malware or mistakes can alter an address. Once an Ethereum transaction is confirmed, it cannot be canceled. The step-by-step Ethereum wallet guide covers sending and using a wallet.
Quick Recap
How can beginners protect crypto assets?
- Keep credentials private. Never share a recovery phrase or private key. Ethereum.org’s security and scam prevention guide says: “Never, for any reason, share your recovery phrase or private keys!” Legitimate support staff and websites should not need them.
- Check links and requests. Be cautious of phishing links, unsolicited support messages, and unfamiliar tokens.
- Review what you sign. Check the recipient address, network, and transaction details before approving. Be wary of smart-contract permissions that allow unlimited token spending.
- Back up recovery information securely. Anyone who obtains your recovery phrase may be able to take control of the wallet. Losing it may also leave you unable to restore access.
- Understand hardware wallets’ limits. A hardware wallet keeps private keys offline, which can reduce some online exposure, but it does not make transactions risk-free. You still need to protect the recovery information and avoid approving malicious transactions. Buying a hardware device is not required to use a wallet.
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