Web3 UX: 1. Blockchain Principles

7 min readJul 26, 2024

Web3, the next generation of the internet, is here, and it brings exciting benefits. It promises to be secure, transparent, and decentralized, changing how we interact with technology. But for Web3 to reach its full potential, it needs to be easy to use and understand. This is where UX design comes in.

First, to work effectively with Web3, it’s important to understand why Web3 matters and the internet’s evolutionary journey from Web1 to Web3.

It’s about giving power back to the people. Picture having full ownership of your online identity and creations. It represents a move from big tech dominance to a more democratic internet.

Web1 was the read-only internet, Web2 is the interactive and social web, and Web3 is the decentralized web giving users more control over their data.

Web1: The first version of the internet where websites were static, meaning users could only read information without interacting much (like reading a digital newspaper).
Web2: The second version of the internet where websites became interactive, allowing users to create content and interact with each other (like social media and online shopping).
Web3: The next version of the internet that focuses on decentralization, giving users more control over their data and transactions through technologies like blockchain (like cryptocurrencies and decentralized apps).

Web1: The first version of the internet where websites were static, meaning users could only read information without interacting much (like reading a digital newspaper). Web2: The second version of the internet where websites became interactive, allowing users to create content and interact with each other (like social media and online shopping). Web3: The next version of the internet that focuses on decentralization, giving users more control over their data and transactions through technolo — Web1, Web2 and Web3 compared on a table

In my previous post, “Breaking Barriers: Why Blockchain Needs a User Experience Overhaul Now” I discussed the urgent need for better UX in Web3 applications. Building on that, I decided to start a series for “Web3 UX”. Throughout this series, I will cover various topics including:

The Basics of Blockchain: Simplifying the core concepts of blockchain technology.
Web3 Platforms vs. Web2 Platforms: Examining the alternatives Web3 offers compared to traditional Web2 platforms.
Exploring Web3 Applications: Investigating Web3 apps to understand their unique features, user needs, and benefits.
User Experience Challenges in Web3: Identifying and offering solutions to the UX problems in blockchain applications.
Practical Design Tips: Offering actionable advice for designers to improve Web3 user experiences.
Case Studies and Examples: Analyzing real-life examples of Web3 applications and their UX.
Design Principles for Web3: Outlining the main design principles for creating user-friendly Web3 interfaces.

By making these complex topics simple and clear, I hope to provide valuable insights and practical tips for designers who want to improve the Web3 experience for everyone. I’d love to hear your feedback on any topics you want to explore further or any questions you have, so this series can adapt to your needs and responses.

Welcome to the first post of the “Web3 UX” series.

Today, I aim to explain the key principles, and elements of blockchain in simple terms because I believe simply accepting and using terms like “transparent” without understanding their underlying reasons and mechanisms isn’t enough. Grasping the ‘why’ and ‘how’ behind these principles will be incredibly beneficial, both in applying them during the design process and in making them comprehensible to users who might have similar questions. Understanding these principles can help us UX designers create better user experiences for Web3 applications, making this innovative technology accessible and useful for everyone, so buckle up!

An illustration of blockchain technology depicted with interconnected blocks featuring various cryptocurrency symbols. The image includes representations of Bitcoin, Ethereum, and other blockchain-related icons, all connected by lines, symbolizing the decentralized and interconnected nature of blockchain networks. The color scheme is grayscale, set against a black background, highlighting the simplicity and abstract nature of the design.

What is blockchain?

Let’s start by understanding what blockchain is, as defined by the EU Blockchain Observatory and Forum in their “Blockchain for Beginners” document:

A blockchain is essentially a tamper-proof, shared digital ledger that records transactions in a decentralized peer-to-peer network. The permanent recording of transactions in the blockchain stores permanently the history of asset exchanges that take place between the peers (participants) in the network.

Here is a simple analogy, offering a simpler approach: Imagine a giant book (ledger) that records every transaction. Each page in this book is a block, and every time a page is filled with transactions, it’s sealed (verified) and linked to the next page. This creates a chain of pages (blocks), making it a blockchain. Everyone in the community has a copy of this book, so any attempt to change a transaction on one page would be easily detected and rejected by others.

Blockchain principles refer to the foundational concepts and features that define how blockchain technology operates. Here are the key principles:

1. Decentralization
2. Transparency
3. Immutability

Let’s break down each of these principles to see how they make blockchain work effectively.

1. Decentralization

Unlike traditional centralized systems where a single entity has control, blockchain distributes control across a network of nodes (computers). Each node holds a copy of the entire blockchain and participates in validating and recording transactions. This decentralization reduces the risk of a single point of failure and increases the security and resilience of the system.

When a “single entity has control”, one organization, authority, or individual has the exclusive power to make decisions, manage operations, and control the entire system. In such systems, all data and activities are managed through a central point of authority. This entity has the power to grant or deny access, make changes, and dictate the rules and processes for everyone else using the system.

Here are some examples to illustrate this concept:
Banking System
In traditional banking, the bank acts as the central authority. It maintains control over all transactions, accounts, and customer data. If the bank’s system fails or if the bank decides to freeze an account, the customers are affected because they rely entirely on the bank for financial services.

Social Media Platforms
On platforms like Facebook or Twitter, the company that owns the platform has complete control over the content, user data, and rules of engagement. They can censor posts, ban users, and change privacy policies without requiring users’ consent.

Cloud Services
In cloud computing, companies like Amazon Web Services (AWS) or Google Cloud control the servers and infrastructure. They have the authority to manage data storage, access permissions, and service availability. If their servers go down, all services relying on them are affected.

Government Control
A government that controls national identification systems or citizen databases holds centralized power over individuals’ identities and personal information. They can issue IDs, revoke them, or change records without input from the citizens.

2. Transparency

Blockchain provides transparency by allowing all participants in the network to view the transactions and the history of changes made to the ledger. This open-access approach helps build trust among users, as anyone can independently verify the data.

3. Immutability

Once data is recorded in a block and added to the blockchain, it cannot be altered or deleted. This immutability is ensured through cryptographic hashing and the linking of blocks, making it extremely difficult to tamper with the data without detection.

Cryptographic hashing is a process that takes an input (or “message”) and returns a fixed-size string of characters, which appears random. The output, known as the “hash value” or “digest,” is unique to each unique input.
Think of cryptographic hashing like a paper shredder. Once you put a piece of paper (input) through the shredder, it produces confetti (hash value). You can’t easily put the confetti back together to get the original piece of paper, but if you shred another identical piece of paper, you’ll get the same type of confetti every time. If even one letter on the paper is different, the confetti will look completely different.

How does blockchain provide security?

Blockchain employs advanced cryptographic techniques to secure data. Each transaction is encrypted and linked to the previous transaction using cryptographic hashes. Additionally, consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) ensure that the network reaches an agreement on the validity of transactions.

Consensus Mechanisms

Blockchain relies on consensus mechanisms to validate transactions and maintain the ledger's integrity. Common mechanisms include Proof of Work (PoW), where nodes solve complex mathematical problems to validate transactions, and Proof of Stake (PoS), where validators are chosen based on the number of tokens they hold and are willing to “stake” as collateral.

Distributed Ledger Technology (DLT)

The blockchain acts as a distributed ledger where all participants maintain a synchronized copy of the ledger. This distribution ensures that the ledger is resilient to attacks and errors, as no single point of failure exists.

Peer-to-Peer

Blockchain operates on a peer-to-peer (P2P) network, where nodes communicate directly with each other without the need for intermediaries. This P2P structure enhances the efficiency and speed of transactions, as there are no central authorities or middlemen to slow down the process which also enables it to be decentralized.

Privacy

While blockchain transactions are transparent, the identities of the participants can remain pseudonymous. Users interact with the blockchain using unique addresses rather than personal information, providing a level of privacy while maintaining transparency in transaction data.

These principles and elements are the core of blockchain technology, helping it offer secure, clear, and efficient solutions for many uses and industries.

I will end this first post by encouraging you to explore the links below for further reading and share your feedback or questions in the comments. Your input will help shape future articles to meet your needs and interests better.

Let’s work together to build a more user-friendly and inclusive Web3 ecosystem. Stay tuned for the next post in the series, where we will explore various use cases of Web3 technology. Thank you for reading, and welcome to the world of Web3 UX!