Despite the fact that the Web3 developer ecosystem is a small part of the greater online developer ecosystem, it appears to be rapidly increasing, so it makes sense to try to figure out what makes up the Web3 tech stack. This is the main reason why companies have started investing their time in it. As a result of which various Web3 Development Company
have emerged as per the changing trends in the market.
Nader Dabit, a developer relations engineer for a Web3 business called Edge & Node, wrote the clearest definition of the Web3 stack I’ve seen thus far. Dabit and I first spoke in August 2020, when he was working as a serverless expert at Amazon Web Services.
He had just published “Full Stack Serverless: Modern Application Development with React, AWS, and GraphQL” with O’Reilly Media at the time. He took his skills into the emerging Web3 world in April 2021. He’s working with Edge & Node on The Graph, which is “a Web3 protocol for indexing and accessing blockchain data with GraphQL.”
Learning Ethereum (and Rust)
Now we’ll look at the more advanced features of the Web3 stack. Most developers are aware of the concept of a blockchain, which is essentially a distributed data ledger. However, there are numerous sorts of blockchains. Bitcoin and Ethereum are the two most essential (and not coincidentally, the cryptocurrencies associated with those blockchains are the two market leaders).
But, as Ethereum developer Justin Drake put it in an episode of the podcast Web3 Breakdowns, Bitcoin is “about as programmable as a calculator.” Ethereum, on the other hand, is a completely programmable “Turing-complete” computer.
Because of Ethereum’s programmability, a new paradigm of a blockchain-focused web development stack dubbed “Web3” has emerged. One of Ethereum’s tenets is that you can theoretically construct anything on top of it.
To use Web 2.0 jargon, it’s a web platform. Ethereum is the most popular Web3 platform, and it works with a variety of different blockchains. So learning how to use Ethereum is the major stepping stone to become a Web3 developer.
How to Save and Query Data
Data storage and use is one of the most difficult aspects of Web3 development. While blockchains excel at being “trustless” chains of immutable data, they are inefficient in storing and processing massive volumes of data, particularly for dapps. IPFS, Arweave, and Filecoin are examples of file storage protocols.
To make matters even more complicated, dapp developers can use “off-chain” solutions, in which data is held somewhere other than the main blockchain. “Sidechains” (secondary blockchains) and so-called “Layer 2” (L2) solutions, such as Bitcoin Lightning Network and Ethereum Plasma, are two examples. Check out Shashank Golla of data API startup Fauna’s new essay on The New Stack for more on how to handle data management in Web3.
The Web3 Developer’s Conundrum: Decentralisation
From the perspective of a developer, Web3 appears to be in a phase of transition, attempting to move away from reliance on centralised services such as Coinbase, OpenSea, and Alchemy. But that’s where the difficulty begins, because true decentralisation for dapps is really difficult to establish.
Things Companies Need to Know About Web3
Web3, a technology that is both transformational and disruptive, is on the verge of becoming Gutenberg. The incumbent Web2 enterprises will very certainly face the brunt of the transition.
Blockchains have the potential to dramatically reshape ownership, cost structures, business models, value, and negotiating power in a wide range of industries. The shift in the variables that govern consumer behaviour will be incredibly quick, even by the standards of the fast-moving area where Web2 titans operate. Where do you start as a product manager at a huge IT company?
Here are six essential factors to be aware of in order to prepare for what lies ahead:
Wallets & Identity
Instead of an email address or a user name, your crypto wallet is frequently used as your login credentials on Web3. It’s a single-sign-on system that allows the wallet owner to remain entirely anonymous while also allowing access to decentralised apps (dApps) on several blockchains. Many Web3 projects begin with custodial wallets, which store the user’s cryptographic keys, but most eventually move to a non-custodial model, giving consumers complete ownership.
Consumers can use wallets to manage their digital identities, digital assets, and online data in ways that Web2 does not allow. They also give users the opportunity to control access, limiting an Internet company’s ability to utilise personal data and assets such as videos, articles, viral posts, and so on. And we’ve only begun to touch the surface of what wallets are capable of.
Individual Ownership, Self Governance & DAOs
Understanding and influencing consumer decisions is the goal of behavioural economics. Consumers are drawn to Web3 projects because they reward engagement and distribute ownership. An NFT of a blog post, for example, transfers ownership to the author, allowing for an equitable distribution of money between the writer and the platform.
Consider a DAO as a company with a constitution that includes fundamentals, principles, and rules written in code. Instead of being monopolised by leadership, the nexus of control is widely diffused among the members. Members are compensated in accordance to the amount of work they put in. This, in principle, better aligns DAOs with their members’ interests.
Web3’s incentive systems are powered by tokens. They can be used to reward stakeholders and users equally, as well as motivate behaviour and safeguard the network. While tokenomics has its limitations, it is a useful tool for establishing trust and transparency, automating verification, assuring compliance, and lowering expenses.
Why, just about anything and everything, from social media likes and shares to good citizenship activities like recycling and donating to charity, and so forth. The token economy will be comparable to the app economy, but it will be far broader, more diverse, and more integrated.
Loyalty and Community
As a result, many fashion businesses are experimenting with Web3 tactics, such as creating secret Discord channels, providing designers with access to collaborative NFT projects, and airdropping tokens.
The goal is to offer designers more stake in the game and provide greater value to fans and high-net-worth clients. For business goals, loyalty may eventually take centre stage. Web3 projects may give away network access to generate loyalty, similar to how Web2 enterprises give out information to build networks.
NFTs in Supply Chain
Blockchain supply chain applications were among the first to catch the attention of businesses. With more third parties in the supply chain, logistics are growing more complicated. Transparency, reliability, and end-to-end visibility are all becoming increasingly important. Blockchain has the potential to alleviate this strain.
Many blockchain protocols rely on validators, or network participants, to guarantee the network by pledging tokens as collateral, a consensus technique called Proof of Stake. Validator node as a service solutions remove a major barrier to entry, making it much easier to participate in the blockchain network and governance.
Polygon provides access to its massive ecosystem of over 7,000 dApps, a big developer community, and substantial and constantly updated documentation, in addition to help on how to build governance and tokenomics. These are only a few of the reasons why companies such as Adobe, Telefonica, and Dolce Gabanna have chosen Polygon as their Web3 entry point.
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