Posted by Sponsored Post Posted on 8 August 2023

Contrasting Web3 and DeFi: Fundamental Variances

DeFi and Web3 represent two distinct concepts with unique characteristics. This article explores the key differences between DeFi and Web3, shedding light on their purpose, governance models, interconnectivity, and long-term visions. Even in the cutting-edge world of DeFi and Web3, traditional Bitcoin solutions like the automated bot Granimator remain relevant.

Key differences in purpose and scope

DeFi and Web3 exhibit significant differences in their purpose and scope. DeFi, or Decentralized Finance, primarily focuses on revolutionizing the financial sector by leveraging blockchain technology. It aims to provide individuals with open and permissionless access to financial services, eliminating the need for intermediaries like banks.

On the other hand, Web3 represents a broader concept that goes beyond finance. It encompasses a vision of a decentralized internet and economy, where users have greater control over their data, privacy, and digital interactions. Web3 aims to create an interconnected ecosystem of decentralized technologies that enable individuals to engage with digital platforms in a more user-centric and empowering manner.

While DeFi is focused on transforming the financial landscape, Web3 seeks to revolutionize various aspects of the digital world, including social media, content distribution, governance, and more. By encompassing a wider scope, Web3 aims to reshape the fundamental structures and dynamics of online interactions, promoting greater user autonomy and fostering a more decentralized and equitable internet ecosystem.

Governance models

DeFi projects typically rely on decentralized governance models. These models often involve the use of governance tokens that allow token holders to participate in the decision-making process. Through voting mechanisms, token holders can propose and vote on protocol upgrades, changes to parameters, or the introduction of new features. Decentralized governance in DeFi aims to ensure community participation and collective decision-making, enabling stakeholders to have a say in the evolution of the protocols they use.

Web3, on the other hand, explores a broader range of governance mechanisms. While decentralized governance is one option, Web3 projects also consider other models such as liquid democracy, quadratic voting, futarchy, and more. These alternative governance models aim to experiment with different ways of decision-making that go beyond traditional voting systems. The goal is to foster innovation in governance and explore methods that can better align incentives, increase participation, and distribute decision-making power in a fair and efficient manner.

Web3’s exploration of various governance models reflects its ambition to create a more inclusive and adaptable decentralized ecosystem. By embracing different approaches, Web3 projects seek to find governance mechanisms that can address the specific needs and challenges of their respective communities.


DeFi primarily operates within its own ecosystem, with decentralized finance protocols interacting and integrating with each other to provide users with a range of financial services. Users can move assets and liquidity between different DeFi platforms, enabling seamless transactions and interactions within the decentralized finance space.

Web3, on the other hand, aims for broader interconnectivity across different platforms and sectors, transcending the boundaries of finance. The vision of Web3 is to create a decentralized internet and economy, where various decentralized technologies seamlessly integrate with each other.

While DeFi focuses on creating a robust and interconnected financial ecosystem, Web3 seeks to establish a decentralized infrastructure that spans beyond finance, enabling interconnected and interoperable experiences across various sectors. This broader vision of interconnectivity in Web3 aims to break down silos and foster collaboration between different decentralized projects and communities, promoting innovation and expanding the possibilities of decentralized technology.

Long-term vision and goals

By leveraging blockchain technology and smart contracts, DeFi aims to disrupt traditional financial intermediaries and empower users with greater control over their assets and financial transactions. The ultimate goal is to democratize finance, fostering financial inclusion and reducing reliance on centralized institutions. DeFi envisions a future where individuals can participate in lending, borrowing, trading, and other financial activities without the need for intermediaries, unlocking new possibilities for global financial interactions.

Web3 aims to create an internet where users have ownership and control over their data, identities, and digital interactions. The goal is to shift the power dynamics of the internet away from centralized entities towards individuals. Web3 envisions an internet ecosystem where users can freely and securely share data, engage in peer-to-peer transactions, and participate in governance processes.

While DeFi’s long-term vision focuses on reshaping the financial landscape, Web3’s vision is broader, seeking to revolutionize the fundamental structures of the digital world beyond finance. Web3 aims to establish an internet and economy where decentralized technologies enable individuals to have more control, autonomy, and sovereignty over their digital lives.


DeFi aims to transform the financial industry by providing open access to financial services, while Web3 envisions a decentralized internet ecosystem that extends beyond finance. Understanding the differences between DeFi and Web3 is crucial for grasping the broader potential of decentralized technologies and their impact on shaping the future of the digital world.

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