The internet has emerged as a crucial element in the lives of people globally. Innovations in technology have redefined how individuals engage with technology, sparking debates like DeFi versus Web3, showcasing the value that technological advancements bring. The introduction of blockchain technology revolutionized data storage and transaction processing by utilizing a decentralized network of computers. This gave rise to DeFi, allowing access to financial services without intermediaries, all while emphasizing decentralization within the Web3 ecosystem.

By revisiting the stages of internet evolution, from Web 1.0 to Web 2.0, one can understand the distinction between DeFi and Web3 better. Web 1.0 initially offered basic websites and information-focused applications, setting the stage for the dot-com boom. Web 2.0 marked a shift towards a more interactive internet experience, empowering users to create and share content on platforms like Facebook and Twitter. However, the centralization dilemma and rent-driven economic models persisted in Web 2.0, leading to the need for decentralized solutions like Web3.

Web3 symbolizes the third phase in internet evolution, leveraging blockchain technology to deliver user-centric experiences. DeFi, a component of Web3, presents a novel approach to finance by incorporating blockchain for decentralization. It encompasses a dynamic ecosystem featuring open platforms, financial products, and instruments, facilitating a broad array of financial services without central control.

Exploring the fundamentals of DeFi sheds light on its distinct features compared to Web3. DeFi represents an emerging financial system within Web3, emphasizing novel approaches to generating value and utility. Web3, on the other hand, redefines user internet experiences through blockchain, ensuring democratic control over user data. DeFi, with its transparent financial model, enhances financial utility, offering diverse services like decentralized exchanges, peer-to-peer lending, and staking platforms.

Understanding the impact of Web3 on DeFi underscores the symbiosis between the two realms, emphasizing the secure and decentralized nature of DeFi under Web3's umbrella. Burgeoning interest in cryptocurrencies has propelled innovation in Web3 and blockchain technologies, setting the stage for reshaping financial systems and internet interactions. Web3's potential to attract more users signifies a promising future for the DeFi ecosystem, aligning with the growing preference for digital assets and a cashless lifestyle.

A comparison between DeFi and Web3 uncovers key similarities and differences, with elements like permissionless access, decentralization, custody of assets, interoperability, governance systems, and cryptographic verification offering insights into their unique functions within the digital landscape. While DeFi focuses on decentralized access to financial services, Web3 encompasses a broader spectrum of decentralized technologies.

In conclusion, the distinction between DeFi and Web3 reflects a relationship akin to Fractions and Mathematics, with DeFi being a subset of Web3. The evolution of the internet continues to pave the way for progressive advancements, offering a democratic and secure online environment for users to access a diverse range of crypto and blockchain assets. Rather than juxtaposing DeFi against Web3, exploring their synergies can unlock new possibilities for enhancing the digital economy and user experiences in the interconnected world of finance and technology.