Web3 Tech Stack: Revolutionizing the Future of Technology

Web3, the next iteration of the World Wide Web, aims to address the limitations of its centralized predecessors, web1 and web2. While web2 offered a reliable infrastructure, it required users to entrust their data to centralized entities and grant access to the web.

Web3, powered by blockchain technology, promotes decentralization, giving users control over their identity and data through private-key cryptography.

The success of web3 hinges on the ease of building decentralized applications (dApps), making it crucial to define the web3 stack. This article examines the layers of the web3 tech stack and their significance in shaping the future of the internet.

Introducing the Web3 Stack and Its Advantages

Web3 is a groundbreaking concept that aims to revolutionize the internet. It utilizes various technologies to enable the development of decentralized applications (dApps), granting users greater control over their identity and assets.

By promoting decentralized control and a distributed infrastructure, web3 envisions a more secure and efficient internet built on blockchain technology. The current internet model suffers from significant centralization issues that often go unnoticed.

Users frequently encounter data breaches and are trapped in vendor lock-ins. Web3 emerges as a solution to address these challenges by introducing a read-write-own model of the internet.

Its main objective is to alleviate or eliminate these problems by eliminating the concentration of power in central intermediaries. This promises an enhanced user experience, improved data safety, and the provision of resilient services.

Key Features Enabled by Web3

Web3 unlocks several essential features that contribute to its transformative potential:

• Decentralized Web Infrastructure: Web3 fosters a decentralized web infrastructure, reducing reliance on centralized servers and increasing network resilience.
• Ownership of Data, Content, and Platform: With web3, users gain ownership over their data, content, and platform. This shift empowers individuals by enabling them to control their digital assets and make decisions regarding their usage.
• Native Digital Payments: Web3 facilitates seamless native digital payments, eliminating the need for intermediaries and enabling direct peer-to-peer transactions.
• Self-Sovereign Identity: Web3 supports the concept of self-sovereign identity, allowing individuals to maintain control over their personal information and identities without depending on centralized entities.
• Trust-Less, Distributed, and Robust Infrastructure: Web3’s infrastructure is built upon trustless and distributed systems, ensuring reliability, security, and resilience even in the face of failures or attacks.
• Open, Public, Composable Back-End: The web3 stack promotes an open and public back-end, facilitating collaboration and composability among different applications and services.

The Web3 Tech Stack Overview

The web3 technology stack is a unique amalgamation of technologies and tools that set it apart from the traditional web2 stack. In contrast to web2, web3 embraces open and decentralized technologies like blockchains while abandoning centralized databases and technologies.

This transition is intricate and deeply embedded. Moving from a client-server model to a decentralized web may not be considered a radical shift.

Wf:

• Layer 0 – Infrastructure
• Layer 1 – Protocols
• Layer 2 – Utilities
• Layer 3 – Services
• Layer 4 – Applications

Layer 0 – Infrastructure: Building the Foundation of Web3

At the core of the web3 stack lies the infrastructure layer, which forms the foundation for all other components. This layer is primarily composed of the underlying blockchain architecture upon which the entire web3 ecosystem is built. Within this layer, several key elements serve crucial functions:

Mining as a Service (MaaS)

Mining has become a prominent topic in the crypto world, and the decentralized web requires mining as a service. Various companies offer mining as a service (MaaS) to investors and individuals seeking to engage in large-scale mining operations.

This emerging business strategy is leveraged by the decentralized web.

Network

The network of the web3 stack operates in a distributed manner, eliminating the need for a central authority. This decentralized network ensures privacy for every user. It functions similarly to a blockchain network but with enhanced scalability.

The Web 3.0 stack can run its own web3 browser, which can also be distributed. This network enables decentralized execution of blockchain applications, aligning with the structure of dApps (decentralized applications).

Virtualization

Virtualization involves creating virtual resources such as desktops, servers, operating systems, storage, and networks. It revolutionizes traditional computing by enabling more manageable and scalable workloads.

While the concept of virtualization has existed for years, its full potential is being realized with the new web3 blockchain structure. Virtualization can be implemented across various layers of the web3 stack, operating at the system, hardware, and server levels, reshaping our current perspectives.

Computing

Computing in the web3 stack harnesses the power of multiple computers collaborating on solving a single problem. This collaborative approach enhances efficiency and saves time. Problems are divided into smaller parts distributed across the network, and a group of computers works together to solve them.

These computers are connected through the network, facilitated by a lightweight software program, to collectively tackle the problem.

Nodes

Nodes play a vital role in the decentralized web, serving as points of interaction within the network. They route internet traffic to its destination and track each transaction, enabling real-time updates and decision-making.

As every node holds the same information, the loss of any node has minimal impact on the network. This design ensures the resilience and robustness of the web3 stack.

Tokens

Tokens form an integral part of the infrastructure layer in the web3 stack. They are essential assets within the decentralized web system, allowing users to access various features offered by the network.

These tokens are tradable and transferable assets, facilitating interactions within the infrastructure layer of the web3 stack.

Storage

The new web3 infrastructure introduces decentralized storage, offering a more secure environment. Blockchain technologies have brought about the concept of decentralized cloud storage, which is more cost-effective, resilient, and widely distributed compared to existing centralized cloud solutions.

This decentralized storage solution within the infrastructure layer ensures the safekeeping of users’ personal data without the need to rely on a trusted third party.

Layer 1 – Protocols: Powering the Decentralized Web

The protocols layer within the Web 3.0 stack encompasses a range of essential elements, including consensus algorithms, protocols, participation requirements, and virtual machines. 

These components shape the functioning and capabilities of the decentralized web. Let’s explore the key aspects of this layer:

Consensus Algorithms

Consensus algorithms play a vital role in ensuring agreement among nodes in a blockchain network. They enhance network efficiency and add an additional layer of reliability. The following consensus algorithms are available within the web3 stack:

• ASIC-optimized Proof of Work (PoW)
• ASIC-resistant PoW
• PoW and PoS (Proof of Stake) 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

Side chains offer an innovative mechanism that enables the transfer of tokens and assets between different blockchains. They hold great potential for developers, allowing them to create decentralized applications without impacting the main chain.

Side chains function as independent cells within a separate blockchain network, ensuring their own security. Compromises in one side chain affect only that specific side chain, safeguarding the entire ecosystem.

Participation Requirements

The participation requirements refer to the different types of blockchain networks present within the web3 stack. The decentralized platform of the web3 stack primarily consists of two infrastructure types:

• Public/Permissionless Blockchain: These are open networks that allow anyone to participate without restrictions.
• Private/Permissioned Blockchain: These are networks with restricted access, where participants require permission to join and engage with the network.

Virtual Machines

Virtual machines play a crucial role in maintaining security and executing code from various computers within the network. Different blockchains employ different types of virtual machines and state transition machines. Here are notable examples:

• Ethereum 1.0, Wanchain, Hashgraph, Ethermint, and others utilize the Ethereum Virtual Machine (EVM).
• Solana and Cardano utilize direct LLVM exposure.
• Ethereum 2.0, EOS, Dfinity, and Polkadot leverage the Web Assembly Virtual Machine (WASM).
• Kadena, Corda, Tezos, and Rchain have their own state transition machines.

The protocols layer of the web3 stack forms the backbone of decentralized web operations, enabling secure consensus, efficient participation, and effective execution of code.

Layer 2 – Utilities: Empowering the Decentralized Web

The utilities layer within the web3 stack encompasses a range of essential components that contribute to the functionality and effectiveness of the decentralized web. Let’s explore the key elements of this layer:

Multi-signature

Multi-signature functionality plays a crucial role in the web3 stack, providing enhanced security for transactions. Each transaction requires a unique signature from multiple users before it can be sent.

Users can determine the number of signatures or requirements needed before creating an address. This technology, pioneered by BitGo, is widely adopted within the web3 architecture due to its importance in ensuring secure transactions.

Oracle

Oracles act as data feeds that support smart contracts within the blockchain network. They serve as intermediaries that gather real-world information and transmit it to smart contracts, enabling access to external data sources.

Since blockchain networks are typically isolated from the outside world, oracles bridge this gap by providing necessary information to execute smart contracts effectively. Without oracles, the proper functioning of the web3 stack is compromised.

Wallet

Wallet programs play a crucial role in the web3 stack by storing users’ public and private keys. They facilitate communication with various blockchain networks and enable users to track their digital assets, including popular cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

Digital Assets

Digital assets form an integral part of the web3 stack and primarily encompass cryptocurrencies used within the ecosystem. However, they can also extend to include images, multimedia, and textual contracts that are stored and exchanged digitally.

Smart Contracts

Smart contracts are agreements between parties that are executed automatically based on predefined rules. Transactions occur seamlessly once the conditions outlined within the smart contract are met.

With smart contracts, there is no need for intermediaries or higher authorities, as the process is entirely automated.

Digital Identity

In the web3 technology stack, digital identity assumes paramount importance as users remain interconnected online. A digital identity serves to define and authorize individuals where necessary. Users can have multiple digital identities across different platforms, ensuring privacy and security in the decentralized web.

Distributed File Store

The distributed file store provides a server-based location for data storage. This process offers convenience, allowing data to be accessed as easily as from a local computer. To access the server, authentication is required, ensuring that authorized clients have full control over their data.

The utilities layer in the web3 stack plays a crucial role in enhancing security, enabling seamless transactions, and facilitating the storage and management of digital assets within the decentralized web.

Layer 3 – Services: Empowering dApp Creation and Management

The services layer within the web3 stack is instrumental in providing the essential tools for the creation and management of decentralized applications (dApps). This layer encompasses various components that enable efficient dApp development. Let’s delve into the key elements of this layer:

Data Feeds

Data feeds, also known as web feeds, play a vital role in the web3 stack by facilitating the reception of updated data from reliable sources. In the new technology stack, these decentralized data feeds are utilized to keep the information of nodes up to date.

Off-chain Computing

Off-chain computing refers to processes that occur outside the blockchain application stack. It offers cost-effectiveness and efficiency compared to on-chain computing.

By leveraging off-chain computation, data integrity is ensured, and privacy is enhanced, making it an ideal foundation for decentralized app development. This approach resembles a virtual memory system.

Governance

Governance plays a critical role in the infrastructure of the web3 stack, eliminating the need for human management. Developers can utilize decentralized autonomous organizations (DAOs) for their projects, which operate through smart contracts.

DAOs are based on the principles of decentralization within the blockchain technology stack, enabling autonomous decision-making processes.

State Channels

State channels establish bidirectional communication between two peers through transactions. Each user must sign the transactions with their private keys to ensure authorization and authentication.

These channels are accessible only to the participating parties and have a limited timeframe within which they are available, disappearing after the predefined period. The services layer of the web3 stack provides essential functionalities for the development and management of dApps.

It encompasses data feeds for up-to-date information, off-chain computing for efficiency, governance through decentralized autonomous organizations, and state channels to enable secure peer-to-peer communication.

These components empower developers to create robust and decentralized applications within the web3 ecosystem.

Layer 4 – Applications: Enabling Decentralized App Experience

The applications layer within the web3 stack encompasses crucial elements such as dApp browsers, application hosting, user interfaces, and decentralized applications (dApps). Let’s explore the key components of this layer:

The dApp Browser

The dApp browser serves as the uppermost layer of the web3 stack, allowing users to access decentralized applications. Traditional browsers lack the necessary infrastructure to browse these emerging decentralized applications.

Specialized dApp browsers, such as MetaMask, provide fully-featured desktop browsers with user interfaces, enabling access to both the web3 and regular web.

Other notable dApp browsers include Trust Browser and Cipher, which offer similar functionalities and empower users to explore and engage with decentralized applications.

Application Hosting

Application hosting is a crucial layer responsible for hosting dApps. Once downloaded through the dApp browser, the hosting process makes the applications available through cloud storage for execution.

The distributed network leverages Software as a Service (SaaS) to host the applications, ensuring easy access and integration across various devices. This layer provides a risk-free hosting environment with minimal maintenance requirements.

Decentralized Applications

dApps are a pivotal component of the web3 stack, revolutionizing the traditional centralized application landscape through blockchain technology advancements. These applications enable peer-to-peer connectivity through a server network on the blockchain.

Building robust dApps necessitates the integration of external data, computation, monetization, and file storage. The technology stack within the web3 ecosystem facilitates the development of this layer, empowering the creation of decentralized applications.

The applications layer of the web3 stack includes the dApp browser, application hosting, and the actual decentralized applications. dApp browsers provide access to decentralized applications, while application hosting ensures their availability through cloud storage.

Decentralized applications, powered by blockchain technology, transform the centralized application paradigm into a peer-to-peer network. This layer showcases the innovation and potential of the web3 stack in creating a decentralized application ecosystem.

Explore the Comprehensive Web3 Development Offerings at Webisoft

Webisoft, a leading web3 development company, specializes in creating interactive and cutting-edge web3 solutions. Leveraging blockchain, AI, NFT, and other advanced technologies, their experienced team of web3 developers offers a wide range of services.

These services cater to diverse industries, including gaming, real estate, and fintech.

Let’s dive into the categorized web3 development services provided by Webisoft:

1. Custom dApp Development

The skilled web3 developers at Webisoft excel in Rust, Solidity, Golang, and frameworks like Substrate and Brownie. With a focus on interoperability, security, and scalability, they create tailored web3 applications that meet specific client requirements.

2. DeFi Development

Enterprises can benefit from DeFi consulting and end-to-end development services offered by Webisoft. Their dedicated DeFi developers specialize in building custom DeFi solutions, including DeFi dApps, layer2 solutions, automated market makers (AMM), non-custodial wallets, and DeFi exchanges across multiple blockchains.

3. Metaverse Development

Webisoft pioneers futuristic metaverse development by harnessing the power of blockchain, AR, VR, 3D reconstruction, and emerging technologies. Their web3 developers create immersive 3D spaces, NFT marketplaces, and other components that generate real business value within metaverse environments.

4. NFT Marketplace

Webisoft designs and builds NFT marketplaces that facilitate live auctions and NFT trading in a realistic 3D environment. They offer ready-to-deploy NFT marketplace solutions that can be customized and seamlessly integrated into web3 projects, reducing time-to-market.

5. Smart Contract Development

Web3 developers at Webisoft utilize the web3 ecosystem’s public, open-source, and composable backend to develop highly secure, reliable, and upgradable smart contracts based on current web3 standards. The flexibility to modify contract code while maintaining its original integrity ensures adaptability to evolving needs.

6. Web3 Gaming Development

Webisoft’s web3 developers possess expertise in Unity and Unreal Engine 5 game development tools. They create innovative games, including “play to earn” and NFT-based multiplayer experiences, aligning with emerging gaming trends and evolving development requirements.

7. Multi-chain Solutions

Webisoft offers fully interoperable multi-chain web3 solutions encompassing dApps. These solutions enable users to access different web3 platforms and engage in seamless trading activities. Their web3 developers can integrate APIs, Oracle, and DAO into multi-chain solutions, enhancing transparency and automation.

8. Native Payment Solutions

Web3 developers at Webisoft craft advanced digital wallets that are compatible with various web3 platforms. These wallets facilitate the storage and management of native currencies, empowering users to access web3 applications across different blockchains.

9. Self-Sovereign Identity (SSI)

Webisoft’s SSI system ensures users have freedom and autonomy within a secure environment. Their web3 developers create wallets and credentials that allow users to authenticate their identity in decentralized ecosystems, establishing a foundation of trust.

Webisoft’s web3 development services encompass custom dApp development, DeFi solutions, metaverse development, NFT marketplaces, smart contract development, web3 gaming, multi-chain solutions, native payment solutions, and self-sovereign identity.

With their expertise and commitment to innovation, Webisoft is at the forefront of shaping the future of web3 solutions.

Conclusion

In conclusion, Web3 represents a transformative shift in the internet landscape, where users have ownership and control. The web3 tech stack, comprising infrastructure, protocols, applications, and access points, is continually evolving.

The modularity and interoperability of Web3 enable the creation of innovative use cases. While the framework and layers remain consistent, the opportunities and projects within them are expected to undergo significant changes in the coming years.

With Web3’s immense potential, we can anticipate a future filled with exciting possibilities and transformative developments.