Web3 is an idea for a third generation of the Internet that incorporates decentralization based on blockchains. Web3 will serve as the basis for new forms of economic and social interaction arising from platforms that allow users to collaborate, create, exchange, and take ownership of their digital identity and assets. This project analyzes current Web3 businesses, identifies characteristics of underlying technologies such as NFT(non-fungible tokens), DAOs (decentralized autonomous organization), and DeFi (decentralized finance), and provides business implications of Web3 on incumbent organizations and new entrants.