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The centralized version of the web or web2 has offered the world a more robust and reliable infrastructure than the original web, generally known as web1. However, the centralized web created many challenges for users, like authorizing centralized entities to take custody of data and decide whom to allow access to the web. Web3 is an emerging version of the World Wide Web that promotes decentralization through blockchain technology. Web3 also allows users to take control of their identity and data through private-key cryptography. Web3’s future will be defined by the ease with which dApps can be built. So, it is crucial to define the web3 stack.

In this article, we will take a look at the web3 stack and explore its different layers.

An overview of web3

It’s crucial to understand the meaning of web3 before diving into the web3 stack. Web3 is a collection of technologies that enable the development of decentralized apps (dApps). dApps offer users greater control over identity and value, as well as decentralized control and a distributed infrastructure, among other benefits. Web3 is a vision for a decentralized internet built on blockchain technology.

The current internet model is highly centralized and much more broken than many realize. Users must deal with data breaches and vendor lock-ins. Web3, which is a read-write-own mode of the internet, is designed to address most or at least some of these problems. The web3 stack removes power from central intermediaries and promises a better user experience. It also increases data safety and provides fail-resistant services.

Some features that web3 allows are:

  • Decentralized web infrastructure
  • Ownership (of data, content and platform)
  • Native digital payments\
  • Self-sovereign identity
  • Trust-less, distributed and robust infrastructure
  • Open, public, composable back-end

The web3 stack

The web3 tech stack is a combination of technologies and tools that are distinct from the web2 stack. Web3 replaces databases and centralized technologies with open, decentralized technologies such as blockchains. This is a complex and intrinsic transition. The transition from a client-server attribute into a decentralized web is not radical. Web3 technology stack can be divided into the following layers :

  • Layer 0 – Infrastructure
  • Layer 1 – Protocols
  • Layer 2 – Utilities
  • Layer 3 – Services
  • Layer 4 – Applicationsweb3-stack

Let’s take a closer look at them.

 

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Layer 0 – Infrastructure

At the bottom of the web3 stack is infrastructure layer that is made up of underlying blockchain architecture on top of which everything else has been built. This layer of web3 stack serves the following:

Mining as a service

The crypto world is buzzing about mining. The decentralized web requires this opportunity as a service. Several companies leverage mining as a service (MaaS) to the investors and individuals who are looking to target this solution at an industrial scale, and this is a new type of business strategy leveraged by the decentralized web.

Network

The network of the web3 stack is distributed and it does not require any central authority to maintain it. So, every user will have the privacy they desire. This process works exactly like a blockchain network but with more scalability. This network allows the web3 stack to run its own web3 browser which can be distributed as well. The network will allow blockchain applications to run decentralized and the blockchain application stack will have the same structure as the dApps.

Virtualization

Virtualization is the creation of virtual resources, such as desktop, server, OS, storage, or network. It will revolutionize traditional computing and make it easier to manage more scalable workloads. Though the concept and application of virtualization have been around for a decade, it is showing its full potential with the new web3 blockchain structure. It can be applied to virtually all layers of the web3 stack. It is operating at the system, hardware, and server levels to truly change how we look at things right now. Each layer has its own complexity and authorization, but they can all be interconnected.

Computing

This is a concept where multiple computers can work together on a single problem to solve it. This saves time and makes the process much easier. We can break down one problem into multiple parts, which are then distributed throughout the network. The problem will be solved by a group of computers which will then be connected through the network. All computers will work together to solve the problem, connected by a lightweight software program.

Nodes

The decentralized web is made up of thousands of nodes. It is the point of interaction in a network. These are the main points from which internet traffic is routed to its destination. They keep track of each transaction and can instantly update or make a decision. As every node holds the same information, the loss of any node will not affect the network to the minimum. This is how the web3 stack has been designed.

Tokens

Tokens are an integral part of the infrastructure layer of the web3 stack. These tokens will be included in the decentralized web system. It is an asset, and we can use it on the network to access the features offered by the network. It is a tradable, transferable asset on the web3 stack infrastructure layer.

Storage

The new infrastructure features a decentralized storage unit, which ensures a safer environment. Blockchain technologies brought up the idea of decentralized cloud storage, which is most cost-effective, resilient, and widely distributed than existing cloud solutions. This storage solution on the infrastructure layer would allow keeping users’ personal data safe and secure without the need to trust a third party.

Layer 1- Protocols

The protocol layer of web3 stack includes the various consensus algorithms, protocols, participation requirements and virtual machines.

Consensus algorithms

Blockchains use consensus algorithms that ensure nodes reach an agreement. This is a great way to increase the efficiency of the network. They add an additional level of reliability. Below consensus and protocols are available:

  • ASIC-optimized proof of work (POW)
  • ASIC-resistant POW
  • POW and POS with fallback
  • Proof of elapsed time (POET)
  • Proof of space and time (POST)
  • Braided POW
  • Casper TFG proof of stake (POS)
  • Hybrid POS/ POW
  • Delegated proof of stake (DPOS)
  • Proof of History (POH)
  • Byzantine agreement with leader election (BA⋆)
  • Stellar Consensus Protocol
  • Ripple Consensus Protocol
  • Leader-centered blockchain consensus

Side chains

Sidechain is an innovative mechanism that allows tokens and other assets to move from one blockchain to another. Sidechain holds tremendous potential for developers as they can create decentralized applications without having to influence the main chain. Sidechains are independent cells of a different blockchain network that provide security themselves. If one sidechain is compromised, it will affect that particular sidechain only and not the all.

Participation requirements

It refers to the different types of blockchain networks which will reflect on the web3 stack. The new decentralized platform of the web3 stack has mainly two types of infrastructure-

  • Public/ Permissionless blockchain
  • Private/Permissioned blockchain

Virtual machine

Virtual machines are designed to maintain security and execute unreliable codes from all computers in the network. Let’s look at the various types of virtual machines and state transition machines used by different blockchains.

  • Ethereum 1.0, Wanchain, Hashgraph, Ethermint and others – Ethereum virtual machine (EVM)
  • Solana, Cardano – Direct LLVM exposure
  • Ethereum 2.0, EOS, Dfinity, Polkadot – Web Assembly Virtual Machine (WASM)
  • Kadena, Corda, Tezos and Rchain use their own state transition machines.

Layer 2 – Utilities

This layer of web3 stack comprises of the following:

Multi-signature

Multi-signature is an essential part of the web3 stack. This signature provides security for the transaction by providing a unique sign. To send the package, any user must sign the transaction online. Before you create an address, you can choose how many signatures or requirements you need. This new technology was first introduced by BitGo and is now being extensively used in the web3 stack. They are, therefore, a must-have in the web3 architecture.

Oracle

Oracles are data feeds that can be used to support smart contracts in the blockchain network. They act as an agent who discovers information about the real-world situation and then carries it to smart contracts. This is because the blockchain network has no access to the outside world. If the network needs to run smart contracts or access any other information, it will need to access that information via another means. It needs a specific value to unlock certain conditions in the smart contracts, and it can proceed as instructed once it has all the Oracles values. Without Oracle, the web3 stack cannot function properly.

Wallet

These programs store users’ public and private keys and communicate with other blockchain networks. These will allow tracking of digital assets, such as Bitcoin, Ethereum and Lite coin.

Digital assets

Digital assets can include many things, primarily cryptocurrencies used by the web3 stack. We can also view images, multimedia, and textual contracts as digital assets.

Smart contracts

Smart contracts are based on an agreement between the parties. Transaction will happen if the rules written in smart contracts are executed accordingly. As it is all automated, so there is no need for higher authority.

Digital identity

As everyone will be connected online, digital identity is crucial to the web3 technology stack. It is necessary to have a digital identity that defines you or authorizes you where it is needed. Multiple digital identities can be used on different platforms; however, having a digital identity will protect users’ privacy and security.

Distributed file store

It is a location on a server where data is stored. The process is more convenient as data can be accessed as easily as a local computer. To access the server, authentication is required, and once authorized, the client will get full control.

Layer 3 – Services

This technology layer contains all the necessary tools to create and manage the dApps layer. This layer usually includes data feeds, off-chain computing, governance, state channels and side chains.

Data feeds

Web feeds are also known as data feeds and are an important part of any web3 stack. This is a mechanism to receive updated data information from reliable sources. The data feeds in the new technology stack will be decentralized and used to update the information of nodes.

Off-chain computing

This is a process that takes place outside of the blockchain application stack. It is comparatively cheaper and more efficient than on-chain computing. Off-chain computation guarantees the integrity of the values and ensures that they can’t be reversed. It adds privacy and provides the perfect backbone for developing a decentralized app. This is the best example of a virtual memory system.

Governance

Governance is necessary for the specific infrastructure of the web3 stack. This will eliminate the need for human management. Developers can use a decentralized autonomous organization for their projects. These organizations deal with smart contracts. A DAO runs on the protocol of decentralization for the blockchain technology stack.

State channels

It is a two-way path between two peers to communicate with each other through transactions. To ensure that transactions are authorized and authenticated, every user must sign them with their private keys. These channels can also be accessed only by participants. However, these channels become available within a limited timeframe and disappear after the pre-defined timeframe.

Layer 4 – Applications

The application layer of web3 stack will include the dApp browser, application hosting, user interfaces and dApp.

The dApp browser

The dApp browser is the upper layer of a web3 stack. The dApp browser allows you to access decentralized applications. An ordinary browser, such as Chrome or Firefox, doesn’t have enough infrastructure to allow you to browse the decentralized applications taking over the world. Some dApp browsers give us a fully featured desktop browser, such as a user interface. We can access both the web3 and regular web with this browser. One of the most popular is MetaMask. It is a plug-in that we can add to Chrome, Mozilla, and Brave. It doesn’t require us to run a full node in order to use it. Trust browser and Cipher are two other browsers. They also produce great web3 output. Cipher allows us to browse all decentralized applications on our mobile device and make our selections. We can compare it with the Google App store, except that we can find all decentralized apps in one place. Trust browser is the same, except it provides wallet services so we can keep track of our cryptos and purchase apps.

Application hosting

This layer is essential to host the next layer (dApp). As mentioned, we can download dApps through the dApp browser, and the hosting makes the app available via the cloud storage for running. The app is then hosted on the distributed network that uses Software as a Service (SaaS). This layer supports users and allows all dApps to be easily accessed and integrated with any device. They are risk-free and require little maintenance.

Decentralized application

dApps are probably one of the most important layers in the web3 stack. These dApps have taken over the centralized application system with the advancement of blockchain technology. People can now connect via a peer-to-peer server network on the blockchain network. You will need external data, computation, monetization and file storage to create a solid, robust dApp. This technology stack on the web3 stack is responsible for the development of this layer.

 

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Web3 development services at LeewayHertz

LeewayHertz is a web3 development company with extensive experience designing and developing interactive web3 solutions. These solutions are based on blockchain, AI, NFT, and other advanced technologies. Web3 developers in LeewayHertz have extensive knowledge of web3 tools, framework APIs, and programming languages such as Solidity and Rust. They cater to various industries, including gaming, real estate and fintech.

LeewayHertz web3 development services are categorized into the following:

Custom dApp development

LeewayHertz web3 developers are experts in Rust, Solidity and Golang, as well as frameworks such as Substrate and Brownie. These web3 developers are focused on creating customized web3 apps that offer interoperability, security and scalability.

DeFi development

Enterprises can get DeFi consulting and end-to-end DeFi development services at LeewayHertz. The dedicated DeFi developers can create custom DeFi solutions such as DeFi dApps and layer2 solutions, automated market makers (AMM), non-custodial wallets, DeFi exchanges across multiple blockchains, etc.

Metaverse development

Futuristic use cases are built here for metaverses that generate real business value. Using blockchain, AR, VR, 3D reconstruction and emerging technologies, the web3 developers build components such as 3D immersive spaces and NFT marketplaces.

NFT marketplace

NFT marketplaces are designed and built to allow live auctions and NFT trading in a realistic 3D environment. They offer ready-to-deploy NFT marketplace solutions that can be customized and integrated into web3 projects to reduce time-to-market.

Smart contract development

Their web3 developers use the web3 ecosystem’s public, open-source and composable back-end to create highly secure, reliable and upgradable smart contracts based on current web3 standards. The code of a contract is also modifiable as needed while keeping it in its original state.

Web3 gaming development

Their web3 developers are experts in Unity and Unreal Engine 5 game development tools. They create new-age games such as “play to earn” and NFT-based multiplayer like GameFi. They continue to research gaming trends to meet changing development requirements.

Multi-chain solutions

The multi-chain web3 solutions of LeewayHertz are fully interoperable and include dApps. This allows users to access different web3 platforms and engage in trading activities. Their web3 developers can also integrate APIs, Oracle and DAO into a multi-chain solution for enhanced transparency and automation.

Native payment solutions

Their web3 developers create advanced digital wallets that are compatible with web3 platforms. They store and manage native currency and allow users to access web3 apps on different blockchains.

Self-sovereign identity

SSI system by LeewayHertz allows users to have freedom and autonomy in a secure and safe environment. Web3 developers also create wallets and credentials, allowing users to authenticate their identity in decentralized ecosystems.

End note

Web3 is a new, evolving internet that users own. As mentioned above, the web3 technology stack includes infrastructure, protocols, user applications, and access points, which are yet an evolving world of web3. Web3’s modularity and interoperability are the keys to its power, and we can combine the layers of the above stack to create many new use cases. The framework and layers we have highlighted will likely remain the same, but we expect the opportunities and projects within them to change dramatically over the next few years.

If you are looking for building a web3 stack or web3 development services, feel free to connect with LeewayHertz!

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Author’s Bio

Akash Takyar
Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO at LeewayHertz. The experience of building over 100+ platforms for startups and enterprises allows Akash to rapidly architect and design solutions that are scalable and beautiful.
Akash's ability to build enterprise-grade technology solutions has attracted over 30 Fortune 500 companies, including Siemens, 3M, P&G and Hershey’s. Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.

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