Coinbase: A Short Guide to Web3 Categories

Although the market has come up with many concepts of web3, Coinbase generally believes that web3 is unreliable, unauthorized and discreet online using blockchain technology.

The main feature of Web3 is ownership. While the first Internet business website (Web1) was read-only for most users, Web2 allowed users to read and write on basic platforms (Twitter, Facebook, YouTube, etc.) and Web3 offered users content management. . Blockchain ownership, information and assets. Users can read and write independently.

If a third party like Facebook owns Web2 privacy and data, Web3 privacy can move across platforms without the help of service providers to capture and monetize the data. . When a Web2 application is centrally administered, Web3's tokens represent a form of ownership of the platform itself, giving users rights that help them manage the resources they use.

What does the Web3 group look like in this context?

verb 3 to do

The Web3 category is still in its infancy and broken, but it has started to appear with many new developments over the years. The following terms are not aggregated or inclusive. Changing location, it is the basis of a reflection on the situation as it evolves.

Let's start at the bottom.

layer on

At the bottom of the category is the process graph. It has a simple blockchain architecture in which everything is designed.

Bitcoin is their granddaddy and although they don't play a big role in Web3 today, they started giving a less valuable digital user access to publicly sensitive personal information. Following Bitcoin, Part 1 smart contract processes such as Ethereum, Solana, Avalanche, Cosmos, etc. have emerged and are the basis of many Web3 applications currently in development.

Both Bitcoin and Ethereum have additional processes built on top of them. Bitcoin offers networks like Lightning Network (for fast and cheap payments) and Stack (for smart contracts). In order to be able to make informed decisions, several sets of 2 working procedures were carried out in addition to the rules.

The appearance of multiple Layer 1 and Layer 2 networks requires building bridges between them. Inputs follow the chain link of the highway, allowing users to change value from one chain to another (benefits across the chain can be seen here and here).

infrastructure layer

Process algorithms are based on standard procedures and have built-in processes that are very reliable when performing special tasks.

It is a thick and complex layer that the project creates everything: intelligent contract monitoring software, data storage, communication processes, data analysis, DAO application management tools, personal solutions and financial primitives.

For example, Uniswap encourages the exchange of one asset for another. Arweave allows you to store your data in a decentralized way. The ENS domain name can be customized in the Web3 world. Users can't do a lot with every app. But this board assembly is like Lego blocks that Web3 developers can use to build their apps.

use case skin

The top layer and the top layer are the layers used, everything is linked.

Take, for example, blockchain-based games like Axie Infinity that use NFTs and ETHereum tokens that can connect to a low-cost/high-speed sidechain called Ronin. Most gamers use Uniswap to exchange ETH for the tokens needed to play the game. Similarly, the decentralized blogging platform Mirror uses Arweave technology to store information. At the same time, it uses Ethereum to allow advertisers to pay with cryptocurrencies, typically sending tokens to ENS addresses.

You will see Uniswap under the Infrastructure and Use Cases section. Indeed, Uniswap is a key part of smart contracts, but it also provides a platform where users can interact directly. In other words, it works as a user-enabled application as well as a process for other Web3 applications such as Axie Infinity.

access layer

At the top of the category is the entry process, which is an application that functions as an access point for several Web3 tasks.

Want to play Axie Infinity on the mirror or pay points? First, you need a wallet, which is the main entry point for most Web3 applications. Users need a fiat portal such as Moonpay or Wyre or a cryptocurrency exchange such as Coinbase.

With some cryptocurrency in their wallet, users can access integrations like DappRadar to view and connect to multiple Web3 apps in one place. Other features such as Rabbithole help users learn to find and use a variety of Web3 applications. There are also integrations such as Zapper, Zerion, and Debank, allowing users to track all their activities and assets across different apps.

Finally, we are close to the future where Web2 platforms that bring together crypto communities like Reddit and Twitter will become Web3 gateways. Reddit's long-awaited crypto startup will make communities unique, offering tokens and NFTs to active users. Twitter has already joined the Bitcoin Lightning Network, allowing users to share others with BTC.

Upgradable stack

The rules, architecture, user applications and content mentioned above make the Internet accessible to users, worldwide, but growing on Web3. In addition to membership, the strength of Web3 is its flexibility and interoperability. Essentially, this means that the above categories can be combined in different ways to create exciting new apps. This ability was supposed to lead to an explosion of new, world-changing applications during the Cambrian period.

While the framework and hierarchies we speak of will remain the same, we hope that the programs and the opportunities within them will change over the years.