Top 10 Essential Infrastructure Services Behind Web3

The world of Web3 is an exciting place, but it’s also something that many people find to be extremely complicated.

Decentralized networks have been suggested to be the future of finance by many, but ultimately, they’re still in their infancy in the grand scheme of things. Getting into everything for the first time can be scary, and as is the case with everything to do with new digital technologies, a fundamental understanding of how the system works behind the curtains is required get the most out of it.

In this article, we’re going to go through the top ten essential infrastructure services that support Web3, so that you can gain a better understanding of how each component fits together to make the well-oiled machine that exists today.

  1. Blockchain Networks

At the very core of Web3, you have blockchain networks. These are decentralized settlement layers where each transaction is validated, recorded, and finalized.

There are many different types of blockchain networks – ones you’ve likely already heard of are Bitcoin, Ethereum, and Litecoin, but there are others, too. Their function is performed through distributed ledgers that aren’t owned by anyone, but maintained in part by thousands of independent participants.

These networks form the main infrastructure behind Web3, and no high-level services could function without them.

  1. Wallet Infrastructure

Digital wallets serve much the same purpose as real wallets do, but with some key differences. They’re there to help you manage your private keys and keep track of your finances, and they serve as the primary interface between users.

One important distinction to understand here, however, is that wallets are controlled by users, not specific governing platforms. A user controls all aspects of how their wallet is used, and while this comes with unlimited freedom, it’s key to remember that there’s no one to help you when something goes wrong apart from other trusted users.

  1. Smart Contract Platforms

Smart contract platforms were originally popularised by Ethereum, but now many different networks use them. They essentially enable developers to utilize code that self-executes, allowing for the decentralized finance options crypto users have come to know and love.

The major benefit is that they negate the need for middlemen, making for a system that’s owned by no one and propped up by each individual user.

  1. Node Providers

The power required to run and access a blockchain network doesn’t come from nowhere, and this is where node providers come in. These are companies and individuals that run and maintain the computer systems that support the network as a whole.

The applications you’ll use on a daily basis rely on these individual servers to run. If they didn’t exist, the entire concept of blockchain and crypto would be infeasible, as everyone would have to host their own servers.

  1. Blockchain Explorers and Token Indexing Services

Blockchain explorers and token indexing services are something that everyday users rely on a lot. These platforms are what make the blockchain usable, translating complex data into a system that’s actually searchable. Explorers allow access to all the information you need regarding transactions, smart contracts, and token listings.

For example, let’s take something like an erc20 tokens list. This is essentially an index of token contracts that sit on a blockchain and contains key information that enlightens the end user to how they function. It’s this extra level of transparency that makes blockchain infrastructure usable.

  1. Indexing Protocols

As touched on above, raw blockchain data isn’t readable on its own, so indexing protocols are required to structure the data appropriately so that users and applications can interact with it.

Indexing protocols are a key piece of infrastructure for designing dashboards and other front-end tools, allowing users the ability to quickly search data without having to trawl through everything. The blockchain explorers described above use index protocols to function.

  1. Identity/Naming Systems

Rather than using usernames as you would on regular websites, you instead use cryptographic identities with Web3. Once again, these addresses in their raw form are convoluted to use, so identity/naming systems have been developed to simplify the process and make them more readable.

These systems form the backbone of authentication, allowing for robust identification methods that would ordinarily have required centralized control.

  1. Governance and Coordination Platforms

While any form of governance is kept to an absolute minimum with decentralized systems, decisions still need to be made.

Governance and coordination platforms have been designed for this exact purpose, allowing users and communities to discuss necessary changes to be made and come together with shared resources.

Many different types of these tools exist, each of which is designed to allow Web3 to flourish and improve.

  1. Security Frameworks

While decentralization has a lot of perks, there are still downsides.

One of these is security. Users are at risk as there’s no one to turn to if a scam takes place; all the onus is on the individual. It’s also the case that should something go wrong with any of the platforms described above, the results can be disastrous, and without centralized governance, fixing things can be problematic.

With each platform that operates on a blockchain, tight security protocols that protect against scammers and hackers are baked in. These usually comprise sophisticated detection and alert systems, and the same goes for the infrastructure supporting individual wallets, too.

  1. Storage Networks

Decentralized storage networks are a crucial piece of infrastructure when it comes to Web3, because blockchains can’t handle large volumes of data on their own.

They’re particularly important for NFT data and platform hosting, and archival processes make use of them, too. These systems are largely kept separate from other computational processes so as not to compromise decentralization.

Wrapping Up

Getting your head around Web3 can be a struggle if you’re just starting out, but once you understand the key pieces of infrastructure supporting the system as a whole, things become much clearer.

The points above represent only a quick primer, so dig deeper into each of them and do your own research to develop a more thorough understanding. Good luck!

By Lesa