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AI, Web3, NFTs, Blockchain, Metaverse and Crypto: Easy Definitions for Normal People
- Sam Booth Jacobsen
- Oct 3
- 13 min read
If you're a normal person with a basic understanding of the Internet, but your brain shuts off when you hear words like blockchain, AI, Metaverse, NFTs, or crypto — you’re not alone.
This is the guide for you.
You´re not a dummy for asking what they mean. These ideas sound big, complicated, and many times their definitions are unnecessarily overcomplicated. It's normal to feel a bit lost or sceptical about new tech, but it's worth understanding what these things actually mean and how they might affect your life. Many of them are already influencing things you do in your everyday life: the way you chat, shop, learn, or entertain yourself.
This guide explains these ideas using simple words, real-life examples, and clarifies:
What each thing really is
How it shows up in everyday life
What their function is (why do they exist in the first place)
What the risks and benefits are
And why people care
So let's relax, keep things simple and walk through these ideas one by one - with real world examples, in plain English, without the tech-snobbery. Follow me!
👉 Visit The Changing Booth to explore online tools and experiences that let you try some of these ideas yourself — safely and simply.
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Web3: What is it?
🌱 Simple Definition
Web3 is the idea of a new version of the Internet where people aren’t just “using” (i.e. clicking and typing) the web; they "experience" it (for example via Virtual Reality) and own a part of it. Think of Web3 like a neighborhood where everyone can build or open shops and hold meetings. You can also vote on shared decisions.
🤔 How is it different from the Internet you are using now (Web 2.0)?
Right now, as you use social media, search the web and buy things online - a few big companies (i.e. Meta, Google, Amazon, OpenAI, TikTok, etc.) have all the control and decide what happens, what you see (your algorithm), they collect your data and make all the rules. Web3 is about letting people share power, not letting a few big companies have all control.
Web3 was created by people who think it's time for a change. They want a version of the Internet where:
You own your stuff (like art, pictures, music, posts)
You control your identity (logins, data, content)
You earn rewards for what you do online (instead of companies profiting off you)
⚠️ Web 2.0 vs Web3 (or Web 3.0)
Internet Version | Like Comparing | Main Difference |
Web 2.0 | People posting on social media—liking, commenting, creating and watching content | Control is with big platforms: Google, Facebook etc. |
Web3 | You and your community participating in activities and owning the place where activities take place | More shared control, often uses blockchain. |
🔁 Will it replace Web1 and Web2?
No, not really. Think of Web3 as another layer of the Internet, not a replacement.
Web1 was about reading: static websites with basic info.
Web2 added interaction: social media, online shopping, comments.
Web3 adds ownership: digital goods, decentralized apps, and more user control.
You can still do all these things on the Internet and they can all exist at the same time. Most people will probably still use Web2 apps (like YouTube or Instagram) for years to come.
⚠️ What are the risks?
Like any new technology, Web3 has its downsides too:
Scams and fake projects are common, especially with crypto and NFTs.
Confusing tools make it hard for beginners to get started.
Lack of rules means there’s no customer service or refunds if something goes wrong.
Not everyone agrees on how it should be built—so progress is slow and messy.
In short: Web3 is an exciting idea, but it’s still growing. You don’t need to jump in headfirst—but understanding it means you’ll be ready as it evolves.
What Is the Metaverse? (Really Simple Version) 🌐
The Internet in 3D. That's it.
Think of the Metaverse as a virtual place, playground, or city that only exists online. It’s a place where people can move around, explore, meet others, build things, buy things, and have experiences — all in a made-up world, but one that can feel more lifelike than just clicking or watching on a flat screen.
You can access it with special VR goggles, yes — but also with your phone, tablet, or computer. You don’t have to have goggles to walk around, explore, or hang out with friends virtually.
The 4 Types of Metaverse (Easy Terms + Real Examples)
Here are four kinds of metaverse spaces — think of them like different playgrounds or neighbourhoods in one big imaginary city.
Type | What It Means in Real Life | Real Example |
Social Worlds | Like attending a party, event or gathering in someone’s house, except online. Friends can meet, chat, dance. | Roblox parties where you hang out with friends as avatars. |
Game-Style Worlds | These are more structured: there are rules, maybe goals or challenges. | Games like Fortnite or Minecraft where you build or play minigames. |
Virtual Work / Learning Spaces | Imagine going to school or work but inside a 3D room. | A virtual classroom where your teacher and classmates are avatars, or a meeting in a 3D office online. |
Augmented Reality / Mixed Reality | This is where virtual stuff is overlaid on real places. Like seeing 3D creatures through your phone camera, or virtual directions that show up on your glasses. | Pokemon Go (you see Pokémon in the park using your phone). Future AR glasses that project maps onto your windshield. |
🔍 Who “Owns” the Metaverse?
It’s not owned by one person or company. Think of it like cities: there are multiple towns, neighbourhoods, owned by different people, and some open spaces anyone can use. Some parts are built by large companies. Other parts are built by everyday folks or small teams.
🛒 Can You Buy Property or Things in the Metaverse?
Yes — you can buy “virtual land,” clothes for your online avatar (your digital self), or buildings inside virtual worlds. Imagine someone buys a physical plot of land and builds a house; in the Metaverse, you do something similar—just online.
But those items are exclusively inside the digital world. You can’t physically live there, but you can spend time there, decorate it, invite people, etc.
📚 Recommended Reading: Keep Exploring the Metaverse
Curious to go even deeper? Whether you're just wrapping your head around the idea of the Metaverse or ready to explore it firsthand, these blog posts are the perfect next step:
This beginner-friendly guide breaks down the Metaverse in plain English—no tech jargon, just real-life examples and simple explanations. Learn what the Metaverse actually is, how it works, and why it matters for your future.
No headset? No problem. This post introduces five immersive virtual worlds you can explore today—directly from your computer. Discover what you can do on each platform and find the right digital adventure for your personality and goals.
✨ Ready to level up your digital life? These reads are your next step.
🤖 AI (Artificial Intelligence) Explained
🤔 What Does AI Really Mean?
AI is just a fancy term for computer systems that do tasks that usually need human thinking — like reading, recognizing speech, making decisions based on data, or predicting what you might like.
You already use AI if you’ve ever used:
The autocorrect when writing on your phone
Suggestions on Netflix or YouTube
Voice assistants like Siri, Alexa, or Google
Chatbots that answer customer service questions
⚙️ Kinds of AI (Very Simple Breakdown)
Narrow AI: Does one thing well (e.g. recognizes faces, translates languages).
Learning AI: Gets better over time (e.g. recommendation systems).
The very advanced kinds (that do everything) are still mostly science fiction.
👍 Risks and Big Benefits
Benefits:
Helps with smart suggestions (e.g. “You might like this movie”)
Helps with tasks—e.g. summarizing news, helping with health monitoring
Makes some jobs easier or lets people do things that were hard before
Risks:
Mistakes—sometimes AI gets things wrong
Bias—it may show unfair results if it's trained on biased data
Privacy—your data may get used in ways you didn’t expect
🧠What’s the Role of AI in the Metaverse?
Artificial Intelligence (AI) is like a super helper that can make things faster, smarter, and more interactive in both the Metaverse and Web3 spaces.
🎮 In the Metaverse: AI builds, guides, and personalizes
AI is used to:
Create virtual worlds faster. You can use AI tools to design buildings, landscapes, and entire environments just by typing a description (like “make a cozy beach café with a sunset view”).
Animate characters (NPCs) that talk and respond like real people. These virtual assistants or shopkeepers can hold conversations, answer questions, or help you explore.
Personalize your experience—AI can recommend events, friends, or activities based on what you like.
🛠 Can you build with AI in the Metaverse?
Yes! Many platforms (like Ready Player Me or Spatial) are starting to let users create spaces, objects, and avatars using AI-generated content.
Some tools let you:
Type what you want to build (e.g. “a treehouse in the sky”) and the AI turns that into a design 🌳
Customize 3D avatars or outfits using AI suggestions
Generate music or art for your virtual space with just a few clicks 🎵🎨
NFTs (Non-Fungible Tokens)
🎨 What "NFT" Means
“Non-fungible” means unique or “one of a kind.”
A token is something that you own that can be transferred to someone else.
NFT means owning something digital in a way that proves no one else has that same exact one, like a digital receipt that proves you own a specific item online.
Think of an NFT like owning an original painting, even though others may have postcards or prints. There may be millions of reproductions, but only ONE true, original made by the original artist at a specific time.
🖼️ What Can Be an NFT?
Art pieces
Virtual real estate / land
Collectible items for your avatar (like digital clothes or accessories)
Other media like video clips or music
Tickets to a virtual concert or meeting
💰 Why Would Anyone Buy an NFT?
If you're thinking, "Why would I spend real money on something I can’t touch?" or "What’s the point of owning a picture online?" — you’re not alone. Many people feel that way.
Let’s compare it to real life:
You can print a photo of the Mona Lisa, but you don’t own it.
You can see a sneaker online, but unless you pay for it, it’s not yours to wear or sell.
You can watch a concert video, but you’re not in the front row unless you paid for that experience.
NFTs work the same way: you're paying to own, collect, support, or access something special — not just to look at it. Here are some real reasons people buy NFTs:
🎨 To support artists
Just like buying a painting or an album, buying an NFT directly supports a creator, especially if they’re independent and online-based.
💼 To collect and trade
Some people collect NFTs like they collect baseball cards, sneakers, or comic books. Others trade them, hoping their value goes up — like rare vinyl or limited-edition items.
🎟️ To unlock access or membership
Some NFTs come with real benefits: VIP passes to concerts, access to online communities, early access to merch, digital meetups, or workshops.
🏠 To use in virtual worlds
In the Metaverse, NFTs can be clothes for your avatar, decorations for your virtual home, or tickets to virtual events. You’re dressing up and designing your online world — just like you do with your physical space.
🔐 To prove ownership
It’s a digital way of saying, “This is mine.” That proof lives on the blockchain, where anyone can see it’s yours — and no one can fake it or take it.
🔍 Are NFTs Still “a Thing?”
NFTs were all the fashion a couple of years ago, but now the chatter has died down about them. But yes, but interest and prices go up and down. Some feel NFTs are less hyped now, but many people still create, buy, or display NFTs. Some are used for access or membership (not just art).
🧱 What Is Blockchain?
If you’ve ever felt confused by the word blockchain, you're not alone. It sounds complicated, but the idea is surprisingly simple.
🧾 A Digital Ledger Anyone Can Check
Think of blockchain like a notebook 📓 that everyone can see, but no one can secretly erase or change.
Let’s say you're keeping track of a game with friends — who scored what points. Instead of one person writing the scores and possibly cheating, everyone gets a copy of the notebook. Every time a new score is added, everyone updates their notebook in the same way. That’s the idea behind blockchain.
It’s a shared record of information that is:
📌 Permanent – once written, it can’t be erased
👀 Visible – everyone on the network can see it
🧩 Connected – each new entry (block) links to the one before it, creating a chain
🎯 What’s the Purpose of Blockchain?
The main goal of blockchain is trust without needing a middleman.
For example:
Instead of needing a bank to confirm money transfers, the blockchain can do it automatically.
Instead of a company keeping records of who owns what, the blockchain stores it openly and securely.
It’s especially useful when you want to:
💸 Move money safely
📄 Track ownership (like who owns a digital artwork)
🔐 Prevent fraud or tampering
🔍 How Is Blockchain Different from Crypto?
Blockchain = the system that keeps track of things
Cryptocurrency = the money 💰 that moves around inside that system
Think of blockchain as the road, and cryptocurrency as the car that drives on it.
You can use blockchain for things other than money, like keeping records of:
Voting 🗳️
Medical files 🏥
Supply chains for food and products 🍎📦
📚 What’s an Example of Blockchain?
Bitcoin uses blockchain to track who owns how much Bitcoin.
Ethereum also uses blockchain, but you can build apps and games on top of it too.
You may have used apps or services that rely on blockchain without even realizing it.
🧠 What Are the 4 Types of Blockchain?
Public Blockchain – Anyone can join (e.g., Bitcoin)
Private Blockchain – Only invited people can join (e.g., for businesses)
Consortium Blockchain – A group of organizations shares control
Hybrid Blockchain – Combines public and private features
❓ Who Owns or Controls Blockchain?
No one person owns blockchain. That’s the whole point. 🌍 It’s usually run by a network of computers around the world, all working together to keep the records honest.
It’s not controlled by one company or government, which makes it decentralized.
👨🔬 Who Invented Blockchain?
Blockchain was first described in 2008 by an anonymous person (or group) using the name Satoshi Nakamoto — the same person who created Bitcoin.
To this day, no one knows who they really are.
Crypto (Cryptocurrency) Simplified
💵 What Crypto Is
Digital “money” that lives online
Doesn’t always belong to banks or governments
Examples: Bitcoin, Ethereum
🧐 Why You Can’t Always Use “Real Money” in Some Virtual Worlds
Think of virtual worlds like theme parks: inside the park, you may need to buy tokens or tickets instead of cash. Similarly:
Some virtual worlds require crypto or special tokens to buy virtual land or outfits
Crypto helps prove you own something securely
It also allows people from many countries to transact without needing local bank setups
🔁 How Crypto Makes Money
If people believe something (a token, coin) has value, they may buy it, then sell for more later
Some crypto works in systems where people earn rewards (staking, mining, etc.)
Some are used as currency inside virtual places—like you pay for virtual dress, events, etc.
⚠️ The Ups and Downs
Crypto values swing wildly—what’s worth $10 today might be $5 tomorrow
There are scams; you must trust sites and tools you use
Also, governments may regulate crypto, so rules change
🧩 How These Fit Together (Made Simple)
Let’s say you're using the Metaverse. You walk around a virtual world, wearing sneakers 🧢, listening to music 🎵, and chatting with friends 💬.
Each of the five technologies helps make that experience possible in a different way:
🎮 Metaverse – The place where it all happens. Like a 3D version of the Internet where you can walk, explore, or hang out.
🤖 AI (Artificial Intelligence) – The brains behind smart features. It can help NPCs (non-player characters) talk like real people, recommend cool places, or even compose music in real time.
🌐 Web3 – The version of the Internet that lets you own your stuff and control your identity without big companies taking over.
🖼️ NFTs – The things you own inside the Metaverse (like your digital sneakers or art). Each one is unique and belongs to you.
💰 Cryptocurrency – The money you use to buy things in the Metaverse (like a ticket to a concert or a digital outfit).
🔗 Blockchain – The system that keeps track of everything above—who owns what, who bought what, and where it all is. Like a public notebook that everyone trusts but no one can secretly change.
So when you buy digital sneakers as an NFT 🧢, pay with crypto 💸, wear them in the Metaverse 🌍, and have AI guide you to a concert 🎶—blockchain is quietly working in the background, keeping track of it all safely and fairly.
Real-Life Examples That Make It Click
Here are examples nearly everyone can relate to:
You join a virtual class or webinar and pay with your normal currency. Later, you take a virtual world where the class lives inside a 3D space, and you pay with a crypto token so you own your place.
You get a shirt for your avatar in a video game (you like how it looks). That’s like wearing clothes in real life, but digital.
You share art online. If someone pays for it as an NFT, you’re like the original painter getting credit; people see your art in a virtual gallery and maybe pay to visit or see special versions.
But why?
A lot of people ask:
"Why spend money on something I can't hold in my hands?"
But here's the truth: most of what we value today is already digital:
You don’t hold your money anymore — it's numbers in a banking app.
You don’t touch your music — you stream it.
You don’t carry DVDs — you watch movies on Netflix.
You read news online instead of in a newspaper.
You own photos, documents, and videos that only exist on a screen.
In that sense, NFTs are just an evolution of how we value things in the digital world.
Why It’s Helpful to Understand These Things
Because they are changing how we do many everyday things:
Learning: more immersive, flexible, accessible
Work: remote, online, virtual offices
Entertainment: concerts, movies, social interactions often include virtual parts
Money and ownership: sometimes you own things online in a more direct way
Knowing the basics helps you avoid scams, make better choices, and take advantage of new opportunities.
🔚 Final Thoughts: You Don’t Need to Be a Tech Expert
You don’t have to understand every detail to be part of the future. Start small:
Try one new thing — maybe view a gallery in a virtual world
Use free tools or experiences
Talk with people who are already doing it
Be curious, not pressured
These points are reshaping how we learn, create, connect, and own things online. And you don’t need to be a programmer or tech guru to be part of that.
✅ Bonus: Related Posts You Might Enjoy
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