What is Web3 technology?

Could you elaborate on the concept of Web3 technology, specifically how it differs from its predecessors Web1 and Web2? As a finance professional with knowledge in the cryptocurrency space, I'm curious to understand the potential impact Web3 may have on the future of decentralized finance, data ownership, and the overall digital economy. What are the key features and technologies that make up Web3, and how do they work to enhance the user experience and security? Furthermore, what challenges does Web3 face in terms of adoption, scalability, and regulation?