Web3 moves towards full decentralization; how to try to profit from it?
The call web3 is classified as the evolution of the internet, for the reason of decentralizing user data, not concentrating in the hand of a single server like the Google or Facebookand impossible to be censored by the authorities.
However, there is still a long way to go. Access to the so-called decentralized applications (dApps) is done using the “HTTPS” standard, where the user types the address belonging to centralized servers such as GoDaddy.
New measures are being taken, and this can directly impact the investment thesis of several investors. The fact is that, for the time being, in practice, the web3 It’s still not 100% functional.
To access a decentralized exchange, the user enters an internet domain address. This, in turn, belongs to a company. In case of tougher regulation, it could be taken off the air easily.
What has changed?
What made this project possible was the proposed implementation of the ERC-4804 standard on the network Ethereum (ETH)which was recently approved and is being implemented in the network.
Simply put, the proposal consists of storing all online data within the blockchain and allowing users to access them through the network itself, without having to use hosting such as GoDaddy.
ERC standards are like token model identification, or Ethereum protocols, with ERC-20 being the network’s cryptoassets and ERC-720 being NFTs.
The proposal was made on February 14, 2022 co-authored by ETHStorage founder Qi Zhou, Ethereum researcher Sam Wilson, and Chao Pi.
During the Ethereum developers event “ETHDenver”, held between March 2nd and 5th, Zhou spoke about the project.
He describes the proposal as an “HTTP-style” URL for directly accessing Web3 content within the blockchainsuch as web pages (front ends) of decentralized applications (DApps) and NFTs. Check out the presentation:
How to try to profit from the “new Web3”?
However, as the data is expensive to be stored in the blockchainthe co-founder of the project comments that the best solution would be to use second-tier solutions, such as ZK.
The ZKs work like envelopes, compressing several costs into just one and validating the information on the network.
Show is done. Back to read ZK videos/papers.
— Qi Zhou (@qc_qizhou) March 13, 2023
“The show was done. I’ll be back to read ZK’s videos/articles,” says Zhou.
Several projects have already released, or announced that they will release, their own second layer technologies. In addition, the second layers themselves, blockchains that work above the main one to lower costs, can benefit from the novelty.
These include second tier Polygon (MATIC), Optimism (OP), Arbitrum, and even Coinbase (COIN), which recently announced Base, its own tier two network.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
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