Complete Web 3.0 for Dummies
Well Hello there, Kind Stranger
I’m sure you’ve already heard about loads of Web 3 Buzzwords like Blockchain, Cryptocurrency, Smart contracts, this and that blockchain like Ethereum, Solana, and many more but failed to understand what all this exactly is and how does it all work.
If that feels familiar to you, Don’t worry cause that’s where I come in. In this article, I’ll outline the inner workings of this tech from the ground up while making it as easy as possible to comprehend from an outside perspective looking inwards.
I’ll gradually increase the complexity of the follow-up articles over some time so you’ll be able to develop a deeper understanding of this topic as a whole.
Before we go further, I’m gonna define some terms which you’re gonna hear tons of times
Blockchain : It is a digital database where all transactions and transfer of Assets are recorded while being Immutable and fully decentralized making it very secure. As changing one block
Decentralized : Being controlled by several different entities rather than a single one.
Immutable : Tamper Proof
Zero Trust : It assumes every transaction on the blockchain is untrustworthy until proven otherwise and needs to be verified beforehand. It’s approach is basically the opposite of Optimistic architecture.
Sort of like Guilty until proven innocent
Let’s start with ‘What is web 3.0’?
Web 3.0 refers to the Internet where one has complete ownership of their Data and can interact freely without centralization of control unlike in Web 2. It is censorship-resistant and distributed amongst millions of devices around the world.
It consists of various protocol Layers which makes it possible for Dapp’s (Decentralized Applications) to be built on top of existing infrastructure.
Why Web 3.0? What are its Benefits?
Web 1 refers to the Largely Read-Only internet whereas Web 2 enabled both Read-n-Write but entirety of the data was controlled by Third-Party Tech giants who could use it as they want. (Monetization or Feeding into Algorithms without your consent)
Where as, Web 3.0 pioneered a new Internet which allows for an Individual to possess complete control over their Online presence. With its Dawn, You could effectively Read-Write-Own all of your Digital Footprint and being able to interact
Web 3.0 hasn’t been actualized yet, But like any other Disruptive Technology that came before it, It needs time to mature
It allows for a software to be scaled massively and without much work on the infrastructure front, It also Automates the entire process and makes the Transaction (Interaction with Blockchain)
Web3 uses a trustless, permission less, and decentralized internet that leverages blockchain technology.
Trustless : One doesn’t need to trust or interact with a third party
Permission less: Where users/validators don’t require permission to join the network
First things First ‘How do we start in this space’?
It’s quite simple actually, install Meta Mask wallet extension or application (depending upon the device used) and create a wallet address.
While creating your wallet address you’ll be given a seed phrase, keep it safe as it can restore your Crypto wallet in case of an emergency. Also, make sure not to share your Seed Phrase and your Private key with anyone.
{Seed Phrase : 12 or 24 word key used to recover your wallet address}
{Private Key : Mnemonic key required to authorize transactions}
Then you could send over your Holdings from Crypto exchanges like Coin Base to this wallet and use those funds to Create/Sign those Transactions using your Public Wallet address.
Explaining Different Layers of the Web 3 stack
Now after we’ve established that, We’ll take a deeper dive into the inner working of this technology. Is it all sorcery or does it have actual science behind it?
I’ll say It’s all Sorcery, JK Unless……….
Every project takes a Different Approach to utilizing the Fundamental Layers in it’s own way.(Consensus, Propagation, Mining, etc.) But the Layer Structure is usually the same.
There are 5 layers behind it creating a base for web 3
namely-
Layer 0
Its Peer-to-Peer Layer allows Communication and Information flow between all Layer 1’s.
Essentially, They allow for entire blockchains to be built upon them.
Polkadot’s Relay Chain is essentially a Layer 0 Solution that wants to become the go-to Interconnect between Various L1 blockchains. Relay Chain is responsible for Connecting Validators to Parachains (Layer 1's).
Layer 1
It Is the Foundation of any project, The Blockchain is built into this layer which is Immutable, Distributed, and Open to View. It uses Zero Trust or Low Trust Protocols.
It’s also called the Protocol Layer on which everything else is built upon.
Layer 1 Smart Contract enabled Projects to include Ethereum, Solana, Avalanche, etc which act as a base layer on which Different Web 3 Applications or Dapp’s are built upon.
The Layer 1 Trilemma
Decentralization, Security, and Scalability. Choose Two
It’s like the Good-Cheap-Fast Rule, You can’t have all three.
It looks like the compromise that Ethereum made was with Scalability cause Decentralization and Security are its most important features.
So how does Ethereum deal with Scalability Issues? It looks like the compromise Ethereum made was with Scalability cause Decentralization and Security are of utmost priority for them and their project.
In Ethereum’s case, the Consensus, Mining, and Propagation Layers are all included in Its Foundational/Base layer i.e. Layer 1.
Improvements in the Eth blockchain are pushed using EIPs which stand for Ethereum Improvement Proposals. These are Introduced under new upgrades to the protocol and then those proposals are voted upon and if passed, The change takes place. It requires a Clear majority vote to successfully push a proposal. These forks take place to keep the Ethereum blockchain relevant over a period of time and with the consent of all involved parties.
So how does Ethereum deal with Scalability Issues?
ETH 2.0
One way is for Ethereum to Fully Transition into the new Ethereum 2.0 Protocol which uses a Proof of Stake Blockchain and vastly increases the Transaction per second (Tps) of the Eth Blockchain effectively rendering other scaling solutions obsolete.
To combat the issue of scalability, Eth 2 would bring in Sharding.
Layer 2 Scaling Solutions
It Uses Second layer or Layer 2 Protocols like ZK and Optimistic rollups, Plasma, or Sidechains. These Protocols have the ability to scale the Transaction per second up to several Hundred of Thousands.
All these Solutions have different Implementation and complexity, they possess unique Pro’s and Con’s and the best solution depends upon your Use case. Now we’ll discuss some of those Protocols.
Layer 2
It is a type of Scaling solution that executes Transactions outside Layer 1, but posts them back on the Parent chain i.e. Layer 1. This approach allows ZK rollups to derive its Security and Decentralization from Layer 1.
All blocks contain Crypto Graphic proof which is then used to assess the validity of a transaction. It is Computationally very heavy so its nodes have to be more powerful as compared to Optimistic Rollups where each transaction is assumed true until proven otherwise, henceforth the name.
ZK rollup (Zero-Knowledge) Implementation and Projects built around it.
Scaling Ethereum NFTs using Immutable X to bring the cost of minting and transferring digital assets down to near zero.
Scaling Ethereum using Polygon with Hermez by implementing Sidechains and ZK rollups Functionality.
Assume ZK Roll ups as “Guilty until proven otherwise” and “Innocent until proven guilty” as in Optimistic Roll ups
SideChains
Sidechains act as Child chains that can borrow Information and Resources from the Parent chain then the Transactions are hashed and recorded using their Virtual Machines and Smart contracts and finally the info I sent back to the Parent chain in one single batch (Containing x number of transactions).
Polygon is the most popular Ethereum Scaling solution currently. It uses a proprietary Proof of stake (PoS) Blockchain with Commit Chain functionality to help scale the Ethereum Network. It comes under Side Chain Implementation. (Read more about it)
It is able to achieve this level of performance
Layer 3
It provides the functionality of Developer APIs and Languages which in turn Enables Dapp’s to be built Upon the Blockchain like De-Fi, Games, and Peer to Peer Storage.
This is the layer of human-readable languages and libraries that allow developers to create programs. Projects in this space are Peer to Peer Storage solutions like IPFS, Gaming based Ind.GG and many more
There are a variety of languages that can be used to develop applications without dealing with actual byte code like solidity and rust. Also, The developer community has created a variety of frameworks that makes it easier for developers to create apps around the Blockchain. The most popular Web 3 JavaScript Frameworks being web3.js, ether3.js, and much more.
APIs are the layer you interact with as a developer. Using which you could obtain all sorts of Pre Compiled On Chain data.
IPFS
Storing regular, uncompressed data on the blockchain is not feasible due to it being crazy-expensive, However, if one builds a network of peers in which all the users store different bits of Data + Redundancy, and when needed data can be reconstructed using the keys.
That’s exactly what IPFS does, Its reliability is also top-notch although if one is to lose said keys, all data would be forever lost (It's fragmented and impossible to rebuild)
Layer 4
Protocol Extensible User Interface cradle or Browsers
Enables the general user to interact with one or more blockchains without possessing knowledge of implementation protocols
The top level of the stack, this includes the ability for a general user to interact with one or more blockchains.
MetaMask
It is one example of a Layer 4 project. It’s Like an actual wallet where you keep your funds in, the only Differences Being that it is fully digital, Stores all your Digital assets, and most Importantly You can recover those funds even if you have lost access to them via using the Seed Phrase.
The entirety of Web 3 is based around Identity and Authorization for which we need Concepts like Cryptography to generate unique Public and Private wallet addresses at the very least (Other details not irrelevant here)
My thoughts
This space Took a major turn for the better after the introduction of Ethereum and its blockchain which brought about the next logical change in this space
* The Introduction Of Smart Contracts *
It entirely Revolutionized the space by Enabling Logic (Snippets of code) to be deployed straight onto the blockchain itself hence the name “Smart Contracts”
This tech is very much still in its Infancy as compared to others and integration with various important protocols is key but the Pace of Innovation is Exponential and with Time and Investment, this tech has the capability to Mature and become the basis for many upcoming technologies which aren’t yet feasible due to Technological Limitations or would benefit massively from the Scalability and Security it provides.
Many countries are experimenting with Block Chain based Citizen Identification and Using Smart Contracts for Direct Benefit transfers, Subsidies and Various Other Benefits.
Various Central banks are also launching their own CBDCs (Central Bank Digital currency) which play up with the above notion of reducing bureaucracy and automating but completely undermines the concept of Decentralization.
This not only reduces Bureaucracy but also It’s Almost Instantaneous and fully Automated. As smart contracts essentially are snippets of code deployed on the blockchain, They don’t need dedicated hardware for deployment or upkeep.
Conclusion
This space is still in its early stages but don't take it for lack of Maturity as it is a rapidly evolving field and it’s very interesting to see the gradual Overhaul of the Internet as we know it, to say the least.
The Introduction of Smart contracts became the catalyst for the rapid development of this space and Ethereum Became one of its Greatest Pioneers.
So In conclusion “Git Gud” (we do a lil’ trolling)
Thank you for reading till the end
Greatness Is Coming, Peace !
If you enjoyed this article and want more of this content, Email me <dev.anky.b@gmail.com> as that would motivate me to write more about this stuff. Peace Out
