Why is it called Web3?

Could you please elaborate on the reasoning behind the term "Web3"? What specific characteristics or advancements does it represent that distinguish it from previous iterations of the web, such as Web 1.0 and Web 2.0? Is it primarily focused on decentralization, blockchain technology, or a combination of factors? Additionally, how does the adoption of Web3 technologies impact the way we interact with the internet and the services it provides?