Understanding Web3 Part 8 of 10: What about the Web3 infrastructure?
Web3 infrastructure refers to the underlying technology stack that powers decentralized applications (dApps), cryptocurrencies, and other blockchain-based platforms. This infrastructure comprises of various elements that enable the seamless functioning of Web3, including storage, networking, and computing. In this article, we will provide an overview of the infrastructure that supports Web3 and how it differs from the traditional web infrastructure.
Storage is an essential component of any technology infrastructure, and Web3 is no exception. However, the storage requirements for Web3 are significantly different from those of the traditional web. In Web3, storage needs to be distributed across multiple nodes to ensure that the data is not controlled by a single entity. This distributed storage is achieved through a decentralized storage system called InterPlanetary File System (IPFS).
IPFS is a peer-to-peer distributed file system that allows users to store and access files in a decentralized manner. Unlike traditional storage systems, where files are stored on a centralized server, IPFS breaks up the files into small chunks and stores them on multiple nodes in the network. This ensures that the data is always available, even if some nodes go offline.
Another critical aspect of storage in Web3 is data privacy. Web3 applications often deal with sensitive user data, such as financial information or personal identity data. To ensure the privacy and security of this data, Web3 applications use encryption techniques to encrypt the data before storing it on the network.
Networking in Web3
Networking is another essential aspect of Web3 infrastructure. Web3 networking is built on top of a peer-to-peer network architecture, which means that there is no central server that controls the network. Instead, all nodes in the network are equal and communicate with each other directly.
Web3 networking uses a protocol called the Ethereum network protocol to facilitate communication between nodes. The Ethereum network protocol is an open-source protocol that allows nodes to communicate with each other securely. It also enables the execution of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
The decentralized nature of Web3 networking means that there is no central authority that can censor or control the network. This ensures that Web3 applications are censorship-resistant and can operate independently of any centralized authority.
Computing in Web3
Computing is the third critical component of Web3 infrastructure. In Web3, computing is achieved through the use of a decentralized computing platform called Ethereum. Ethereum is a blockchain-based platform that enables the execution of smart contracts.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This allows for automated enforcement of the contract terms and eliminates the need for intermediaries such as lawyers or notaries.
Ethereum uses a consensus algorithm called Proof of Work (PoW) to validate transactions on the network. However, Ethereum is in the process of transitioning to a Proof of Stake (PoS) consensus algorithm, which is expected to significantly reduce the energy consumption required for validating transactions.
Ethereum also allows developers to create decentralized applications (dApps) that run on the Ethereum network. These dApps are built using smart contracts and can be used to create a wide range of decentralized applications, including decentralized finance (DeFi) applications, identity management systems, and supply chain management systems.
Finally
Web3 infrastructure comprises of storage, networking, and computing components that work together to power decentralized applications, cryptocurrencies, and other blockchain-based platforms. The decentralized nature of Web3 infrastructure ensures that these applications are censorship-resistant and can operate independently of any centralized authority.
The adoption of Web3 infrastructure is still in its early stages, but it is expected to grow rapidly in the coming years. As more applications are built on top of Web3 infrastructure, we can expect to