Here's an explanation of Web3 from the perspective of cryptocurrencies:

1. Decentralized applications (dApps): Web3 aims to create decentralized applications that run on blockchain networks, enabling users to interact with them directly without relying on centralized servers or authorities. These dApps can facilitate various activities, such as financial transactions, gaming, social media, and more, using cryptocurrencies as the native currency.

2. Cryptocurrency-based economy: Web3 envisions an economy driven by cryptocurrencies, where digital assets can be owned, transferred, and traded without intermediaries. Cryptocurrencies like Bitcoin and Ethereum serve as the foundational infrastructure for this new financial system, enabling secure and transparent transactions.

3. Self-sovereign identity: Web3 promotes the concept of self-sovereign identity, where individuals have control over their personal data and digital identities. Cryptocurrencies and blockchain technology can be used to create decentralized identity systems, allowing users to manage their own information and credentials without relying on centralized authorities.

4. Decentralized finance (DeFi): DeFi is a major component of Web3, enabling financial services and products to be built on blockchain networks. Cryptocurrencies play a crucial role in DeFi, facilitating peer-to-peer lending, borrowing, trading, and other financial activities without the need for traditional financial institutions.

5. Ownership and monetization: Web3 aims to provide users with true ownership and control over digital assets, including cryptocurrencies, non-fungible tokens (NFTs), and other tokenized assets. This enables new models for monetization, where creators and users can directly participate in the value creation and exchange of digital goods and services.

6. Transparency and trust: Blockchain technology, which underpins cryptocurrencies, offers transparency and immutability, allowing for trustless transactions and interactions within the Web3 ecosystem.