The report seeks to demystify the term "Web3," often a point of confusion and hype. It offers a critical look into what Web3 truly encompasses, from its dual notions—the blockchain web and the decentralized web—to its existing limitations and future possibilities. The report delves into key components like NFTs, DAOs, and GameFi that are often promoted in Web3 marketing, and addresses the current centralized aspects of the blockchain web. It also explores the underlying technologies such as Distributed Hash Tables (DHTs) and decentralized name services like Ethereum Name Service (ENS). This comprehensive analysis aims to guide investors in distinguishing between the buzz and the genuine technological shifts that Web3 represents.