How does Web3 extend the traditional web?
WEB3 consists of frameworks and components that integrate the current web into the blockchain, and it is not a replacement for the current WEB2, but an extension of Web2. The decentralized application DAPP runs on top of the WEB3 stack, which in turn can be built on top of Web2. This allows support for standard Web protocols such as HTTP as the underlying WEB3 DAPP.
Typically, WEB3 connects users to the blockchain through its web browser or application. To support existing networks, it uses the WEB3 stack to extend functionality. Developers can use libraries containing API modules to add WEB3 integration with their WEB2 applications or DAPP. The stack provides an abstract way to simplify the process, rather than letting developers build their own frameworks from scratch. In this way, users can use the network to connect to the blockchain to access their digital assets such as cryptocurrencies.
The web 3 stack
The WEB3 stack consists of modules used to create DAPP, connecting users to digital assets on blockchains such as Ethereum, binding Smart Chain, Solana, and so on. These modules have different categories, including file storage, indexing, querying, under-the-chain (L2) protocols, development frameworks, identity (wallet) , and Oracle, and so on, and can be implemented through apis, developers can use these apis to call routines and methods to access the blockchain.
WEB3 differs from traditional Web2 in its decentralized nature. Web3 runs on open source systems in distributed and decentralized networks, and DAPP does not require a central server to run the code. In a decentralized system, code runs on multiple nodes on the network without the need for a trusted central party. Because it is not highly centralized, it is anti-censorship, tamper-proof and not susceptible to the influence of traditional technology giants.
You can create a front-end application from WEB2 that can contain libraries from WEB3 to connect to the blockchain. Developers can build applications using existing programming languages such as Javascript and C + + . Frameworks like Truffle and Hardhat support Web 3’s existing languages, and developers don’t have to spend more time learning to write code in the new language.
Access layer
The wallet interface is the primary component that developers add Web3 compatibility to their Web applications. The wallet creates an address for the user’s account to access the cryptocurrency assets. This is equivalent to the username and password used in web 2, but in web 3 it uses a public-key cryptography wallet address with a private key.
When you open a wallet, you can still use a combination of username and password, but that’s only part of the basic security of accessing the wallet, and there’s another layer that defines who owns the wallet. Each wallet contains a private key that is granted to the wallet owner for safekeeping. This would authorize transactions on a wallet account, such as when trading cryptocurrencies.
In cryptocurrencies, wallets do not work exactly the same as traditional wallets. It does not store cryptocurrency in the same way that a physical wallet stores cash. A wallet private key is an encryption code that generates a digital signature unique to a user’s wallet. Each time a user spends its cryptocurrency or sends it to another user, the private key is used for the correct authorization transaction.
Each wallet contains a public address (that is, a wallet address) that serves as an identifier for user accounts on the blockchain network. It is generated from the private key and is unique to each user. In order to receive or trade cryptocurrency, the user must have a wallet address. A digital signature can prove that the address really belongs to the wallet owner. When you connect a wallet to a web 3 site, you typically ask the user to authenticate it. The user signs the message request from the site using a digital signature. If the digital signature is verified, the wallet connection is allowed.
Browsers like Brave come with a built-in Web3-enabled wallet. For other browsers, such as Chrome, you need to install extensions, such as Metamask, Trust, and other plug-in wallets. The advantage of the WEB3 wallet extension in the browser is that it can be used on computers or smartphones and many devices, allowing users to access their digital assets on the blockchain in different ways.
NFT, game tokens, cryptocurrencies
The most interesting area of Web3 is the meta-universe, which is currently defined in two main ways: virtual worlds built by traditional tech giants and encrypted worlds. For traditional tech giants, the meta-universe is a virtual world of AR, VR, 3D Avatars, and other technologies that enhance the user experience of games and entertainment. For the encrypted world, the meta-universe is about ownership of digital assets that can span a variety of blockchains, which can be used to store value since they were acquired for gaming, market trading or as collectibles. Blockchains are used to validate digital assets, such as in-game purchases to verify ownership.
The digital assets used on the blockchain include NFT, game tokens (such as Mana, SAND, Gala, etc.) , and cryptocurrencies (such as ETH, BNB, Sol, etc.) . Web 3-enabled sites allow users to bring digital assets into the virtual world, which is also a way to access digital exchanges, online games, or e-commerce portals. This process is accomplished by connecting the wallet to grant the user access to the account address. The NFT marketplace (OpenSea, Rarible, etc.) is an example of a web 3-enabled site.
The Web 3 universe can be the same as the traditional tech giant’s, as an extension of the web. Users can bring digital assets to a virtual world where they can interact and trade, such as a virtual marketplace where users can trade or sell NFT. Without WEB3, the meta-universe can not provide access to digital assets, and thus is less useful in terms of value. It can be said that WEB3 brings the“Value internet” to the virtual world.
DEFI gateway
Another important feature of WEB3 is the ability to provide DeFi gateways to users on the web, which has created unprecedented alternative financial services for users, including encrypted mortgages, allows users to borrow money at the value of their cryptocurrency assets. Users can also pledge tokens for a period of time to earn more tokens. For users who want to earn more revenue, there are also various DEFI tools for earning interest.
Web 3-enabled sites in DeFi (such as AAVE, Compound, Oasis App, and so on) can connect a user’s wallet to a smart contract. These programs perform DEFI service code on the blockchain, such as pledging, providing liquidity, and exchanging tokens. WEB3 simplifies the process for users through a web interface, making it easier for ordinary users to use DEFI.
DEFI presents new opportunities for users to be more inclusive, but there are also risks. Some users have experienced rug pulls and other types of scams. Or, some users make bad investment decisions in overly-focused projects and suffer financial losses. Therefore, users need to conduct their own due diligence studies to understand the different types of DeFi services to avoid unnecessary financial losses.
GameFi
Another exciting segment on web 3 is GameFi. GameFi combines the game concept with DeFi, which introduces crypto-monetized games over a blockchain-based network. This means fairer data and more validation through a decentralized back end. The problem with a centralized game backend controlled by a game developer is that there is no guarantee of randomness or ownership of game assets. GAMEFI aims to solve these problems and provide an incentive system that rewards gamers by monetizing them.
On GameFi platforms such as Decentraland and The Sandbox, users can join The game by connecting their wallets to The browser. There are also GameFi applications, such as Axie Infinity, that require a download to play with. The appeal of these games lies in the use of P2E models, which allow players to receive rewards from the game, but also involve some upfront costs, such as buying tokens or NFT.
With blockchain, the game can become more transparent and fair. You can prove the credibility of game asset ownership and data such as scores, rewards, and points through chain validation. This helps to validate the rewards gained in P2E games. The fairness of randomness can also be verified by assuring gamers that the platform or game developer is not manipulating the game.
Summary
WEB3 can extend the internet to the blockchain. Developers use development toolkits provided by blockchain companies or cryptographic projects to connect their applications to the blockchain, that is, interoperability through the use of frameworks or development environments and apis. Users experience the value of the internet through Web3-based applications or DAPP, and can also transfer and exchange digital assets such as cryptocurrency tokens and NFT through a simple web interface. Web3 makes blockchain-based applications more user-friendly, allowing more users to participate and derive more value from the network.
