Web 3: Provide solutions for efficient and stateful Internet
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To solve the problems introduced in the previous section, any user on the Internet should be able to create, control, and transfer state natively—and the resulting value—to any participant without the need for any intermediary or centralized Companies come to stop them from doing this.
Blockchain networks have turned this vision into reality, such as Bitcoin and Ethereum. The Encryption Project began to build their applications and services on this basis, with the goal of creating Web 3, the future version of the Internet.
In order to achieve a more fair and open network, the blockchain network operates through different layers, and its stack is as follows.
State layer: The state layer is located at the top. It captures and saves the state of every activity, interaction, or event that occurs in the lower layers. The state layer is provided by the blockchain (such as Ethereum, Bitcoin), and it can be public or authorized to access.
Computing layer: Through the computing layer, developers can interact with the state layer and give it instructions. The complexity of the instructions varies with the blockchain network. Taking Bitcoin as an example, the computing layer is a Bitcoin script, and in the case of Ethereum, the Ethereum Virtual Machine (EVM) is responsible for this task.
Component layer: The component layer includes those elements built on top of the computing layer. Its use cases include native cryptocurrencies, fungible and non-fungible tokens (NFT), stable coins and digital identity solutions.
Protocol layer: In order for the component to work, developers must add functionality and create a set of standardized rules in the form of a protocol. For example, dYdX for derivatives, Kyber Network for trading, and Aave for lending.
Scalable layer: Compatible with the computing layer, the scalable layer can include side chains and other solutions to improve the performance of the blockchain network. For example, Bitcoin's Lightning Network and Ethereum's Raiden.
User control layer: The main functions of the user control layer include managing users' private keys and at the same time providing them with the ability to sign transactions through the state layer. For this reason, both hosting (such as AAX) and user-controlled wallets (such as MetaMask) reside in this layer.
Application layer: The application layer includes third-party decentralized applications (DApps) built on the above-mentioned layers. For example, this is a web application based on Ethereum's CryptoKitties game or UniSwap platform (you can connect your wallet to interact with the service).
In addition to the above stack, Web 3 also uses a decentralized architecture. The blockchain network is maintained by miners and stores data on thousands of computers instead of the centralized server used in the Web 2 solution.
Based on this, users can have direct control over the Web 3 platform and its content, allowing native creation, preservation, and transfer of state and value, while providing access to all participants who follow each network rule.