What is Web3? A Beginner’s Guide for Nigerians

I define Web3 as the next version of the internet. Like cryptocurrency, it’s built on blockchain, which allows you to own digital things, send money without banks, and use apps that no single company controls. Unlike the current internet, where big companies own most of the data, Web3 gives more power to the users.

In my opinion, Nigerians should care a lot about Web3. Why? Well, it brings new chances to earn, learn, and grow. With Web3, you don’t need a bank account to send or receive money. Also, you can join global communities, work online, and even sell your digital content to people around the world.

My target in this guide is to break down everything you need to know about Web3 in Nigeria to help you get started. 

Comparing Web1 vs Web2 vs Web3

For a fact, the internet isn’t the same as it was years ago. So, to understand Web3, let’s look at how things started and how they’ve changed:

Web1: The Read-Only Internet

In the 1990s, we saw Web 1, which was the first version of the internet. It was mostly made up of simple, static websites. You could read information, but you couldn’t interact with it. For example, you couldn’t comment, post, or share anything. Only a few people created content, and every other person just read it.

Web2: The Social and Interactive Internet

Early in the 2000s, around the time when the internet became popular in Nigeria, Web3 was coming up. With this new internet, anyone can create and share content. Social media platforms like Facebook, YouTube, TikTok, and Twitter, which you use today, are all Web2 websites. That’s why you can post videos, chat with friends, and even start a business. The catch is that big companies own the platforms and control your data.

Web3: The Ownership Internet

Now, we have Web3, which is the next big step for the Internet. It’s built on blockchain technology like Bitcoin, so you can truly own digital items like money and art. In Web3, no single company is in control — just like how no one owns cryptocurrency. You can use apps (called dApps) where you own your data, your wallet, and your identity.

The Key Concepts Behind Web3

I’ve explained how Web3 differs from early versions of the internet. If you want to get started in this space in Nigeria, here are five essential ideas you should know: 

1. Blockchain Technology

A blockchain is like a digital record book that’s open for everyone to see. One company doesn’t control it; instead, the system is shared across many computers around the world. Once something is added to the blockchain, it can’t be easily changed or deleted.

In Nigeria, you can think of a land registry built on blockchain. If your land documents are added, no one can forge or steal them. 

2. Cryptocurrencies and Tokens

If you’re interested in Web3, I presume you already have an idea of cryptocurrencies like Bitcoin and Ethereum. These are digital money you can send and receive without a bank. Tokens are similar, except that they don’t have their own native blockchain. 

Already, several Nigerians use USDT (a stablecoin) to save in dollars, especially when the naira is depreciating. Also, many use it to send and receive funds from other countries.

3. Smart Contracts

A smart contract is like a computer program that runs by itself when certain conditions are met. In such a system, there’s no need for a middleman or human approval.

Let’s say you rent a short-let apartment in Lagos through a smart contract. Once you pay, the contract automatically sends you the digital key. You won’t need any back-and-forth messages with an agent or delays.

4. Decentralized Apps (dApps)

Simply put, dApps are apps built on blockchain. Unlike regular apps — like Instagram or Opay — no single company controls them. They run on code and are powered by users around the world.

I usually use dApps like Uniswap to swap one crypto for another with just my wallet. It’s open to anyone, even if you don’t have a bank account.

5. NFTs and Digital Ownership

Sometime around 2022, NFTs (Non-Fungible Tokens) were the trend in Nigeria. While they’re no longer as popular, they still hold significance in Web3. NFTs are digital certificates that prove ownership of something online, like art, music, or even a tweet. No two NFTs are the same.

If you’re a Nigerian artist, for example, you can sell digital art as an NFT on platforms like OpenSea and get paid directly in crypto. Even if the art is resold, you still earn royalties automatically.

Why Web3 is Important for Nigerians

You may see Web3 as just a concept for tech experts or developers, but it’s not. This new version of the internet has real benefits for everyday Nigerians, especially if you’re a young person. Here’s why I believe it matters:

Financial Inclusion

Sad as it sounds, many Nigerians don’t have access to traditional banks yet. High fees, poor service, or lack of trust limit some. Personally, I can’t count how many times I’ve had to put transactions on hold because my bank was having network issues.

Web3 offers Decentralized Finance (DeFi). In simple terms, these are tools that allow anyone to send, save, invest, or borrow money using just a smartphone and a crypto wallet. With them, you don’t need any intermediary to use your money. 

Youth & Tech Adoption

You’ll agree that Nigerians are among the most active internet users in Africa. Data from Statista confirms that over 100 million Nigerians use the internet. From my observations, young Nigerians easily adopt new technology, especially when it offers freedom, income, or global access.

Many young Nigerians are already using Web3 to earn online, build brands, and connect with global communities. They do all these without leaving the country.

Job & Investment Opportunities

Web3 is creating a global digital economy. In Nigeria, you can work for decentralized projects (DAOs), earn tokens, invest early in startups, or even build your own dApps.

I’ve seen many Nigerians working as community managers, writers, or developers for crypto projects. Even if it’s just yapping on Twitter, you can get tokens besides other benefits.  

Censorship Resistance and Data Ownership

In Web2, your data is stored by companies that can block you, delete your content, or sell your information. Web3 gives you control. You own your data, identity, and even your online reputation.

During times of protest in Nigeria, Web3 tools like crypto wallets can’t be easily blocked or controlled by governments or banks. This is unlike the ban on Twitter and several restrictions on bank accounts. 

How Can You Use Web3 in Nigeria

After studying the space, I’ve concluded that Web3 is already being used in different parts of Nigerian life. Here are some examples: 

Crypto Payments & Remittances

Sending money across borders using traditional banks is often slow and expensive. With Web3, you can use cryptocurrencies like USDT or Bitcoin to transfer and receive money instantly and at lower fees.

Perhaps you’re in Abuja and want to receive money from someone in the UK. You can get it in minutes through crypto, instead of waiting days and paying high bank charges.

Blockchain for Elections or Identity

Web3 can help make elections more transparent using blockchain-based voting. It also allows you to own your digital identity in a secure, tamper-proof way. I know this is a long shot, but if INEC uses blockchain to store voter records or results, it’ll reduce the regular issues we usually witness every election season.

Play-to-Earn and Web3 Gaming

With Web3 games, you can earn real money by just playing. I’ve played several of these games, including Axie Infinity and Sandbox. In the process, I get tokens that can be exchanged for cash.

What are the Risks and Challenges of Web3 in Nigeria?

So far, it’s clear that Web3 brings many opportunities to benefit as a Nigerian. However, it also comes with risks, especially for beginners. It’s essential to be aware of the downsides so you can stay safe and make wise decisions. Check them out below: 

Scams and Ponzi Schemes

Because Web3 is new and not fully regulated, many fake projects pretend to be legit. Some promise quick profits or daily returns, but they are scams.

For instance, a Ponzi scheme may ask you to invest in a crypto project with the promise of doubling your money. Meanwhile, it’ll collapse and leave you with nothing. For this reason, I always encourage doing your own research — don’t just go with the crowd. 

Crypto Volatility

The price of cryptocurrencies can rise or fall quickly. One day, my BTC wallet was worth ₦500,000, and the next day, ₦300,000. Basically, if you store your savings in Bitcoin or Ethereum, the value may drop overnight due to global market changes. 

My guideline is not to invest more than you can afford. Also, if you’re in for long-term savings, use stablecoins like USDT or USDC. 

Regulatory Concerns

In Nigeria, the rules around crypto and Web3 are not always clear. I remember when the Central Bank of Nigeria (CBN) banned banks from handling crypto in 2021, which caused confusion and limited access.

At the moment, many Nigerians use peer-to-peer (P2P) trading on platforms like ByBit and Binance to buy crypto. However, this can be risky if not done carefully. Until laws become clearer, you have to be cautious.

Lack of Education and Infrastructure

Many people still don’t understand how Web3 works. There’s also limited access to reliable internet or smartphones in some areas, which makes it harder for everyone to benefit. 

You may join a project without fully understanding how it works and end up losing out due to mistakes or hacks. This is one of the main reasons why Web3Guide Nigeria was launched — to provide free education on Web3 for Nigerians. 

How to Get Started with Web3 in Nigeria

If it’s your very first time, getting into Web3 might seem difficult. However, it’s actually not that complicated. For one, you don’t need a degree in tech or a lot of money to begin. With a smartphone, internet connection, and the proper mindset to learn, you’re good to go.

Here are my four simple steps to help you start in Web3:

Set Up a Wallet

A crypto wallet is your digital bank account in Web3. It lets you store and manage your cryptocurrencies, NFTs, and more. You can also use it to connect to Web3 apps. Popular wallets I recommend are MetaMask, Trust Wallet, and Phantom. 

Binance and ByBit also have Web3 wallets, which you can check out. Ensure to write down your recovery phrase and keep it safe. If you lose it, you could lose access to your wallet forever.

Try a dApp or Join a DAO

Once you have a wallet, you can start using decentralized apps (dApps). You can also join a DAO (Decentralized Autonomous Organization) to contribute to projects and earn tokens.

Follow Credible Nigerian Web3 Communities

Many Nigerian-led communities are teaching Web3 the right way. With these groups, you can stay updated, ask questions, and avoid scams. For instance, you can regularly check Telegram groups, Twitter/X spaces, Discord servers, Nigerian DAO communities, and of course, Web3Guide.ng.

Learn on Free Platforms

I’m not a fan of rushing to invest as a newbie. Don’t do that. Instead, take time to learn the basics. There are free videos, blogs, and guides available online. If you have the money, you can join a Web3 academy by MoonRepublic by Danny Walter. 

Partake in Web3 in Nigeria Today

Web3 is still growing and changing, and it’s far from perfect. As a result, there’s a lot to learn, but the benefits are real. If you’re just starting, don’t rush at all. Instead, start small and take your time to understand how things work. 

I recommend building skills and knowledge before investing money because it’s a long-term journey and not a quick hustle. Web3 is open to everyone, and the earlier you start learning, the more prepared you’ll be to take advantage of future opportunities.