Web 3 is structurally different than Web 2 as the databases that contain user data is distributively stored on open networks rather than on a private database. Smart contracts can utilize this encrypted data to create open ledgers allowing programs to become interoperable. IPFS and Arweave are examples of open networks that store user encrypted data.
Kyle Samani from Multicoin Capital created a descriptive diagram of the Web 3 stack.
Examples of Web 3 disruption:
The Genesis Fund's investment thesis is that Web 3 will replace Web 2 applications. Consumers will be empowered to own and control their own data. This data can then be transformed into digital assets that consumers can control and monetise themselves. Web 3 technology will disrupt the monopoly on data that current centralized companies have - internet companies, financial corporations, credit bureaus, healthcare providers, gaming companies.