This article provides a comprehensive look into protocols and standards that form the building blocks of today’s emerging Web3 infrastructure.
The exponential evolution of technology has led to the dawn of the Web3 infrastructure—a decentralized and democratic Internet vision. Fundamental to its function are specific protocols and standards that provide the blueprint for building interoperable systems, offering developers a solid base to build upon.
This infrastructure paves the way for innovative concepts such as peer-to-peer interaction, blockchain technology, and decentralized finance. The critical tools for this new paradigm are these protocols and standards. These facilitate seamless transactions, data privacy, interoperability, and digital identity verification, thus shaping a more equitable and accessible digital world.
An Understanding of Web3
Web3 advocates for a “democratized internet,” in contrast to Web 2.0, which was dominated by a few corporations that retained user data. The primary objective of Web3 is to establish a network structure in which user data is not owned or controlled by a single entity.
Applications developed upon this framework would connect users directly, eliminating the necessity for an intermediary. For instance, the traditional sharing economy, like ride-sharing apps or vacation rentals, is founded upon the principles of Web 2.0 and operates through centralized intermediaries.
They oversee transactions, administer the service, and store user data. On the contrary, in the Web3 era, this service could be autonomously automated by peers using smart contracts—obviating the necessity for these centralized organizations.
The idea of the decentralized web introduces several new technological foundations in the form of standards and protocols that influence the infrastructure of Web3.
Understanding Web3 Protocols
Protocols generally refer to a set of rules that allow two or multiple parties of a communication system to transmit information. The protocol defines the rules, syntax, semantics, and synchronization of communication and error recovery methods.
They might be implemented by hardware, software, or a combination.
In Web3, protocols refer to the underlying technologies enabling the functionality of decentralized systems. Below are some of the Web3 protocols:
- Ethereum and Smart Contracts
- InterPlanetary File System (IPFS)
- Filecoin
- The Graph
- Polkadot and Cosmos
Ethereum and Smart Contracts
When we discuss Web3, we can’t ignore Ethereum – the revolutionary blockchain that enables developers to build decentralized applications (DApps) using smart contracts. While Bitcoin is a protocol for peer-to-peer electronic cash, Ethereum has created a more generalized protocol for storing computer programs like smart contracts on the blockchain.
These contracts enable the development of decentralized applications on the Ethereum network by executing when specific conditions are met.
InterPlanetary File System (IPFS)
IPFS is another significant player, reimagining how online data storage and retrieval work. It’s a peer-to-peer file storage protocol that aims to replace the traditional way files are stored, fetched, and linked over the Internet. With IPFS, the web becomes a more resilient, distributed system of nodes. No single point of failure would cause a file to become inaccessible.
Filecoin
In simple terms, Filecoin is IPFS’s economic layer. It’s a blockchain-based marketplace where people can buy and sell unused storage in a decentralized network, helping maintain a reliable, distributed file storage system.
The Graph
This protocol allows for the simple and efficient retrieval of data from blockchains, making it easier for developers to build DApps. The Graph effectively organizes data in a way that’s accessible and actionable, which is critical for the success of the decentralized web.
Polkadot and Cosmos
These blockchain interoperability projects enable different blockchains to communicate and interact with each other, aiming to create a decentralized internet where every blockchain can function and interact seamlessly.
What are the Web3 Standards?
Standards assume critical importance in the ever-evolving and multifaceted domain of Web3. Just as roads require traffic signals, Web3 requires standards to prevent disorder and confusion; without them, anarchy would ensue. Standards facilitate technical consistency and usability. Communication across various platforms and technologies enables compatibility, interoperability, and dependability. Below are some of them.
- Blockchain and Distributed Ledger Technologies (DLT)
- Governance Standards
- Decentralized Identity Foundation (DIF)
- InterChain Standards
- Security Standards
- Zero-knowledge proofs (ZKPs)
Blockchain and Distributed Ledger Technologies (DLT)
The foundation of Web3 lies in these standards. They are a transparent, immutable, and decentralized way to record transactions or any digital interaction. These technologies include Ethereum, which runs smart contracts and powers DeFi applications, and InterPlanetary File System (IPFS), which stores and shares data distributedly.
Governance Standards
Projects like DAOs (Decentralized Autonomous Organizations) and the Tezos governance model provide standards for decentralized decision-making processes. These enable a community-driven approach to making critical decisions and upgrades in a decentralized environment.
Decentralized Identity Foundation (DIF)
The DIF develops and promotes standards for decentralized identities. Their primary objective is empowering users with authority over their online identities by developing standardized interfaces and protocols that improve service interoperability.
InterChain Standards
Furthermore, Polkadot and Cosmos are performing essential work in establishing interoperability standards. They intend to develop a decentralized web wherein all blockchains can seamlessly collaborate by standardizing their communication protocols.
Security Standards
With the advent of Web3, security standards like the Secure Multi-party Computation (SMPC) and privacy-focused designs such as ZKPs have become even more crucial. These aim to prevent hacking and ensure data protection.
Zero-knowledge proofs (ZKPs)
A cryptographic standard allows one party to prove to another that a statement is true without conveying any additional information. It enhances the privacy of transactions in a blockchain environment.
Conclusion
As the transition towards a decentralized web progresses, a set of varied and robust protocols and standards constitutes the fundamental structure of the Web3 infrastructure.
The development and interaction with online applications seem entirely transformed by technologies like Ethereum and IPFS, which have fostered an ecosystem of peer-to-peer exchange. Standards such as ERC-721 and ERC-20 similarly establish a universal framework for digital tokens.
These protocols and standards are instrumental in facilitating smooth interoperability, which is crucial for the transition of the Internet from a centralized control model to a more decentralized and democratic paradigm. They are leading a paradigm shift in technological environments and transforming individuals’ engagement with the online world.
