Web3 represents a new Internet infrastructure that leverages decentralized and distributed networks to enable peer-to-peer interactions, eliminating the need for intermediaries. It relies on blockchain technology, which offers security, transparency, and immutability, but is limited by the "blockchain oracle problem," as blockchains cannot inherently access real-world data or computation. Chainlink addresses this by providing secure data and computational capabilities, which have significantly contributed to the growth of decentralized finance (DeFi) and other Web3 domains. The text provides a tutorial on using Chainlink Functions, a decentralized serverless computing platform, to build a decentralized application that facilitates a digital agreement between a record label and a music artist. This involves deploying a smart contract on the blockchain to manage artist payments based on music streams, using APIs to fetch streaming data and send notifications, and ensuring secure integration with external data sources while maintaining cryptographic integrity. The tutorial covers setting up a development environment, deploying smart contracts, and simulating application execution on test networks, demonstrating how Chainlink Functions can bridge the gap between off-chain data and blockchain applications.