(Maurits Cornelis Escher, 1898-1972)
WEB3 is the latest fashion word that has increased in its interest in recent months. But what does Web3 mean?
Editor Press: Coinbase was established in June 2012, which is the largest encrypted currency exchange in the United States. Merchants and consumers can use the Coinbase wallet and platform for digital currency transactions such as Tanfront and Leutcoin. Coinbase’s vision is to bring more innovation, efficiency and opportunities to the world by establishing an open financial system. Coinbase is officially listed in April 2021, and the stock code is COIN. The company did not carry out the first public offer (IPO), but instead, the company is listed directly in the Nasdaq Stock Exchange through the so-called “direct listing”. In recent years, well-known companies such as Spotify and Palantir took the lead in adopting this approach.
About Web3 has a lot of definitions, but in CoInbase, we usually believe that Web3 is a free trust, freely, decentralized next-generation Internet technology.
The definition feature of Web3 is ownership. The first iteration of the commercial Internet, that is, Web1, is read only for most users. Web2 allows users to read and write on Twitter, Facebook, YouTube, etc. WEB3 passes the user’s content, data, and assets with complete ownership through the block chain. Web3 allows users to read, write, and ownership.
In Web2, a third-party platform like Facebook has your identity and data. In Web3, your identity can move smoothly between different platforms without capturing and profitable by service providers. Web2 applications are centralized control, and the communication in Web3 grants users to manage the rights of services, which represents an owned form of the platform itself.
Considering this framework, what should the web3 technology stack look like?
The development of the Web3 technology stack is still in the early days and presents a manifestation. But after years of innovation, the technical stack began to become a focus. The content of this article does not exclude other technical stacks, nor is it completely exhaustive. On the contrary, this article only provides a framework to think about this continuous development.
Let us start from the bottom.
1 / protocol layer. At the bottom of the stack, we have a protocol layer. This is made up of the underlying block chain architecture, and all other things are built in these underlying components.
Bitcoin is the nasal ancestors of these infrastructure. Although Bitcoin does not play a major role in Today’s Web3, Bitcoin has created the ability to have scarcity digital assets by using public-private private key. After the Bitcoin, a series of Layer 1 intelligent contract platforms, such as Email, Solana, Avalanche, Cosmos, etc., which are the foundation of many Web3 applications.
Additional agreements have been built on top of Bitcoin and Tanfang. On top of Bitcoin, there is a network of lightning networks (for fast and low-cost payments) and STACKS (for intelligent contracts). In order to alleviate the throughput restriction of the block chain, multiple Layer 2 expansion protocols have been established on the Emperor Wish.
With many Layer 1 and Layer 2 network, you need to build a value bridge between them. The across chain bridge can be used as a highway to transfer the value from a block chain to another block chain (with the cross-chain protocol, it is worth a dedicated to write an article).
2 / infrastructure and basic primitives. The infrastructure layer is located above the protocol layer, composed of interoperable build blocks (we call it “base primitive”). These build blocks can perform specific tasks very stable.
This layer has a dense and diverse feature. Specific projects include intelligent contract auditing software, data storage, communication protocols, data analysis platforms, DAO governance tools, identity solutions, financial primates, etc.
For example, UNISWAP supports exchanging from an asset to another. Arweave supports data in a dispersed manner. The ENS domain name can be used as the identity of the user in the Web3 world. Users cannot do a lot of things to each independent app. However, when these base primitives are combined, they are like building blocks, which is convenient for Web3 developers to build their own applications.
3 / use case layer. Above the protocol and the infrastructure layer are used. All concepts in the past year are at this layer.
Take the block chain-based game as an example, such as AXI Infinity, which uses an EDF communications and NFT, which can be connected to a low cost / high throughput side chain Ronin. Players typically use UNISWAP to exchange ETH to exchange the notes required for the game. Similarly, detrimentary blog platform Mirror uses storage protocol Arweave to store data. At the same time, Mirror also pays remuneration to the publisher using the Ether as Taiquian communications, which is to point the communication to its ENS address.
You will notice that UNISWAP appears at the same time as part of our infrastructure section and the use case. This is because, although the core of UNISWAP is just a series of intelligent contracts, it also provides a front end that users can directly interact. In other words, Uniswap acts as a separate user-oriented application, as well as an infrastructure of other web3 applications (such as AXI Infinity). 4 / Access layer. At the top of the stack is the access layer – the access portal as all WEB3 applications.
Want to play “AXI Infinity” or get paid content on “mirror”? First, you need a wallet, which is the main entry point of most web3 applications. Like Moonpay, Wyre like the exchange like Coinbase can help users exchange their French into encrypted currencies to open Web3 journey.
With encryption function in the wallet, users can use aggregats like Dappradar, browse and connect to all types of web3 applications in one place. Other projects such as Rabbitole help users discover and learn how to use a variety of web3 applications. There are also aggregat like Zapper, Zerion and Debank, which can help users track all activities and assets they are in different applications.
Finally, we will usher in such a future, on the web2 platform, the encrypted community has gathered together, such as Reddit and Twitter, which will become the entry point of Web3. Reddit expects a long-awaited encryption initiative will make certain communities to communicate, and actively participate in user reward communications and possible NFTs. Twitter has been integrated with the lightning network of the bitcoin, and the user can reward the tip of others through Bitcoin.
The technical stack of Web3 is in an evolving. The above protocols, infrastructure, user applications, and accessories constitute emerging but continuously developed Web3 world: an internet owned by users. In addition to ownership, the power of Web3 is its modular and interoperability. Essentially, this means that there are countless ways to combine the above stacks to create new and interesting use cases – we expect this feature to cause new and changing the world’s application cold.
Although we emphasize the framework and hierarchy may remain unchanged, we expect projects and opportunities to develop sharply in the next few years.