Pioneering the Path to Web3: Part 1 — Decentralized Infrastructure

The cryptocurrency space encountered numerous challenges in the past year. The failure of high-profile centralized projects such as FTX, Celsius, Alameda eroded public trust and resulted in financial losses for unsuspecting investors.

However, amidst these challenges, there is reason for optimism. As the industry is gradually moving towards a more professional decentralized Web3 space, we at Nakama stand at the forefront, relentlessly driving this transformation.

As outlined in December 2022, we have identified five key areas of focus to shape the future of decentralized Web3 applications. They serve as the pillars of our strategic approach, enabling the development of a robust and sustainable Web3 environment:

• Decentralized infrastructure
• Education
• Security
• Tokenomics & utility
• Regulation

In this blog series comprising five posts, we will unveil these fundamental pillars guiding our approach in navigating the ever-evolving realm of Web3. To kickstart this exploration, we delve into the significance of decentralized infrastructure and elucidate why we firmly advocate against centralization, highlighting the significant risks it poses and explaining why decentralization is paramount in ensuring a more secure, transparent, and resilient technological landscape.

Unmasking the Centralized Backbone

Centralization has long been the dominant force. Web2, characterized by centralized structures and platforms, has experienced significant failures. Instances of data and regulatory breaches, privacy infringements, corruption and monopolistic practices have shaken public trust and stifled innovation.

Looking back at the Web2 era, we observed the ascent of centralized organizations that wielded significant power, leaving users with limited control over their security. During this time, individuals found themselves wrestling with concerns regarding their autonomy and the vulnerabilities inherent in relying on external entities for their security needs. The dominance of centralized systems underscored the need for a new paradigm that would empower users to reclaim control over their security, ultimately paving the way for the emergence of Web3.

Motivated by these factors, Web3 is propelling a new era where users prioritize security, becoming the guardians of their assets and data. This shift marks a significant moment in the evolution of the internet, driven by a focus on personal security, self-custody, and the trustworthiness of code.

Embracing the Decentralized Frontier

Web3 represents a significant leap forward in terms of data control, decentralization, incentivising participation and access to services compared to its Web2 predecessor. It harnesses distributed ledger technologies to empower individuals with greater ownership and control over their personal information and giving them greater access to services more efficiently. By embracing the principles of decentralization, Web3 disperses power among a network of participants, eliminating single points of failure, bolstering security, and preventing the formation of monopolies.

This seismic shift is poised to revolutionize vast domains of our lives, as it aims to reshape industries, governance systems, finance, identity management, and more, becoming an unstoppable force propelling us into a new era of digital empowerment and sovereignty.

In Web2, centralized platforms typically capture the majority of the value created by user-generated content and activities. However, Web3 introduces tokenization, where specific functionalities or services are associated with tokens that can be owned, earned, or traded by individuals within a decentralized network. This enables the creation of token economies that empower users and community members to participate and benefit from the success of the network.

One of the key advantages of tokenization models is the ability to incentivize desired behaviors and contributions. Tokens can be used to reward users for actions that contribute to the growth and improvement of the ecosystem. For example, users can be incentivized to provide valuable content, liquidity, develop applications, participate in governance decisions, or even refer new users to the platform. These incentivization mechanisms foster active engagement, collaboration, and innovation.

We are actively working towards implementing sustainable and long-term tokenomics that benefit all participants in the Shimmer ecosystem — the users, partners, liquidity providers and our team.

From Ideology to Action: The Nakama Approach

At Nakama, our unwavering commitment to decentralized services extends beyond advocacy. It is a fundamental principle guiding every single partnership. By prioritizing distributed networks and individual autonomy, we strive to create a collaborative ecosystem where no single entity holds undue power or control over the network, fostering an environment that champions openness, trust, and innovation.

By doing so, we actively shape a digital environment that is more inclusive, transparent, and user-centric. Through this commitment, we aim to facilitate a paradigm shift away from centralized control, granting distributed authority to individuals over their data and online interactions.

Let’s dive into our portfolio of dApps and explore how each embodies an unique approach to decentralization:

Deepr Finance is revolutionizing the decentralized finance (DeFi) landscape with its lending platform on the Shimmer network. Empowering users with equal access to crypto asset lending and borrowing, it prioritizes transparency, fairness, and user participation. It is set to reshape the future of decentralized finance, offering you greater financial control, incentives and autonomy.

Driven by its commitment to decentralized decision-making and inclusivity, the team of Deepr Finance has formulated a comprehensive long-term strategy to gradually transfer full governance authority to the community. Token holders will be able to submit ideas, vote on them, and delegate votes for proposals.

Simplifying DeFi investing, Accumulator offers automated strategies to maximize returns and minimize risk. The dApp removes complexities and time-consuming actions, as it streamlines and automates your journey in the world of DeFi. Experience the power of automated yield aggregation strategies like Auto Reward Compound, automatically reinvesting your earned rewards back into your DeX Liquidity Pool investments, compounding your returns over time. Accumulator operates as a fully decentralized platform, running on the secure and efficient Shimmer network, ensuring the utmost integrity and transparency in its operations.

Conclusion

At Nakama, decentralization is not just a concept, it is the very essence that drives us. We aim to revolutionize the technological landscape by empowering individuals with true ownership,control over their assets and new incentive models.

Recognizing the risks associated with centralized networks like centralized exchanges (CEX), we see these challenges as opportunities to innovate and create decentralized solutions that offer enhanced security and trust. We are thrilled to embrace these opportunities and work towards building a robust portfolio of dApps that will redefine the way people interact with blockchain technology.

We are dedicated to pushing the boundaries of what is possible, empowering communities, and shaping a future where individuals have true sovereignty over their data and financial activities. Together, we will build a decentralized future that truly belongs to the people.

You are invited to join us on this exciting journey. Together, we will forge new paths, seize opportunities, and empower a decentralized future where everyone holds the key to their own destinies.