Understanding Web3: 5 ELI5 Explainers That Break It Down Simply

Web3 can feel overwhelming — even for those deep in the space. Between gas fees, liquidity pools, real-world assets, and all the jargon in between, it’s easy to get lost.

That’s why we started our ELI5 (Explain Like I’m 5) series: to break down complex topics into clear, digestible insights for builders, curious newcomers, and everyone in between.

In this post, we’ve rounded up five of our most popular ELI5 explainers — complete with analogies and real-world relevance. 

1. Enterprise Mode: The Prepaid Experience for Gas Fees

Imagine trying to get someone to use your app, but asking them to first buy ETH just to click a button.

That’s the hurdle many Web3 projects face — but LightLink’s Enterprise Mode fixes it.

At its core, Enterprise Mode is like preloading a gift card. Projects and enterprises pay the gas fees upfront for their users. That means every interaction — from minting to swapping to staking — is gas-free for the end user.

This drastically improves onboarding and reduces friction. Users don’t need to worry about wallets, tokens, or fees. They just click and go.

It’s like public transportation:

• Pay for a taxi = traditional on-chain UX
• Ride a state-funded bus = Enterprise Mode covers your journey

2. Layer 2 Blockchains: Ethereum’s High-Speed Expressways

Ethereum is secure and decentralized — but not always fast or cheap.

Layer 2 blockchains solve this. Think of Ethereum as a two-lane road. L2s are high-speed expressways running in parallel, processing tons of traffic while staying anchored to Ethereum for security.

By offloading transactions to L2s like LightLink, we get:

• Faster transaction speeds
• Lower fees
• Less congestion on the main chain

All the benefits of Ethereum, none of the gridlock.

3. RWAs: Bringing Real-World Assets On-Chain

Real-World Assets (RWAs) are exactly what they sound like: tangible, off-chain assets — like gold, real estate, or stocks — that are tokenized and represented on the blockchain.

This unlocks huge benefits:

• Lower costs (fewer intermediaries)
• Higher liquidity (tradable 24/7)
• Borderless access (no banks required)

RWAs aren’t a future concept — they’re already live, with billions flowing through gold-backed tokens, tokenized treasuries, and more. It’s a massive bridge between TradFi and Web3, and it’s growing fast.

4. Gasless Transactions: The Right Way to Do It

A lot of platforms say they offer gasless transactions — but most just shift the fee to a different token or use account abstraction with complex setups.

Here’s what LightLink does differently:

• No tokens needed from the user
• No wallets juggling
• No hidden paymaster mechanics

Instead, LightLink bakes gas coverage into the protocol via Enterprise Mode. Projects handle all the gas upfront, and users interact freely — no ETH required.

This is what Web3 should feel like: no fees, no friction, just freedom.

5. Liquidity Pools: The Engine Behind Every DEX

Liquidity pools (LPs) are the backbone of decentralized finance (DeFi). They’re smart contracts that hold two tokens — like ETH and USDC — and allow users to swap between them instantly.

Here’s how it works:

• Liquidity providers (LPs) deposit tokens into the pool
• Traders swap between the tokens
• LPs earn a cut of every trade via fees

It’s automated, permissionless, and completely transparent.

Whether it’s spot trading on a DEX or powering a DeFi protocol, liquidity pools make it all happen.

Got a Concept You Want Us to Break Down?

If there’s a confusing Web3 term or concept you’d like us to explain, drop it in our mentions or tag us on X. And if you’ve found this roundup helpful, bookmark this blog — it’s your cheat sheet for all things Web3. 

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