# 4. You and Web3.0

# Introduction

# Web3 is the decentralized or "open" web 👐

• network interfaces follow new rules

  • no one node is in charge
  • no single NAP
    • no front desk

• no one can "turn it off"

  • it's accessible to all
  • it's owned and operated by the people using it
  • there are no middlemen
    • no brokers between you and the stock market
    • no bank fees for managing your money
    • no HR between you and payroll

# A network of computers across the globe act as one computer sharing a single state

• change state of one, you change state of all
  • we are Borg 🤖
• when one node registers a change in the network (state) it gossips about it to the other nodes
  • gossip spreads about the change in state to the entire network

# Web3 interfaces are accessed using Web3 accounts

• "log in with your email" becomes "log in with your Web3 wallet"
• connections to Web3 architecture occur through http connections and smart contracts

# Organization of Web3

• they are a set of instructions (like any other program) for updating state/data/transaction history
• the updates that nodes gossip about are triggered by methods in these contracts
• contract methods allow Web3 accounts to either view state/data/transaction history or change state/data/transaction history
• contracts that take a lot of time to run can congest the network
  • transaction fees (GAS) help prevent this
  • they incentivize developers to optimize their code so it execute faster, and consumes fewer resources (cheaper!💸)

# Interconnected layers of Web3

• these layers behave like modules and can be broken apart and reconfigured to create new use cases

# protocol layer

• base layer
• blockchain architecture
• changes to data are stored as transaction receipts on a digital ledger
  • ledger is copied and distributed to all nodes in the network

# infrastructure layer

• interoperable building blocks
• modules connect together for specific tasks
  • storage
  • naming service
• smart contracts serve as the back end of Web3 infrastructure
  • contracts manage state
    • they are like interpreters
  • web3 accounts "sign" transactions the same way one might sign a lease agreement or credit card receipt

# use case layer

• where it all comes together
• DeFi, Gaming

# access points

• top layer
• users sign into their account(s) and send / receive crypto-currency

# Web3 needs Web2... for now

Web2

Web3

• Web3 infrastructure is different than web2, but still new and generally limited, so it can't operate without web2 yet
  • you still need the centralized web to access the decentralized web
  • it's not immediately apparent when you are using a Web3 app (dApp)

# Let's finally talk about the "blockchain"

# The blockchain is..

• transaction history

the blockchain is like a stack of milk crates with each crate containing piles of various transaction receipts. The stack of crates gets higher with every new batch of receipts.

# Data and Web3

# Data in motion

# Data at rest

# Once data is added to the blockchain it is immutable - it can't be changed.

# Time and Web3 🕥

# The blockchain is...

• a clock 🤯

# Time is measured in block height

• each block added to the chain increases its height
• some blockchains add a new block at a constant rate even if the block is empty of updates to transaction history
  • this allows for planning
    • "let's meet at 3pm" becomes "let's meet when the block height reaches 89489830340"

• community board meetings exist for the purpose of finding consensus community-related initiatives. Community-based blockchain networks are no different, and people don't always agree

• sometimes two nodes with different block heights claim to have the most current (highest) chain

  • ( generally ) longest chain wins

• sometimes nodes do not agree with the consensus and continue with their version of the blockchain

  • if other nodes join them, then a fork is created
    • two versions now exist
      • Ethereum vs Ethereum classic

• sometimes infrastructure updates require a fork

  • if a node with the old version of the chain exists, the old infrastructure is still accessible

    • you can keep your old phone books, and use them, but they will become more and more unreliable
    • you can keep your computer from 1997, but it won't be able to "dial into" today's internet like it did when Austin Powers was in theaters.

# trustless proofs provide integrity of the blockchain so you can trust the time it gives

• proof that a transaction is valid can be achieved through cryptography
  • if anything changes in one block, all subsequent blocks are immediately invalidated
    • we see this in time travel movies
      • change the past, you change the future
  • mining or Proof of Work (PoW) is how BitCoin and Ethereum create trust in their networks
  • PoW has become very energy-intensive as the blockchains that rely on it continue to grow
    • other proof concepts are being employed in new and existing blockchain networks to address these and related issues

# Your Relationship with Web3

time: enabled by a chain of discrete “data moments”

identity: enabled by public/private key cryptography

money: time + value

ownership: identity + money

provenance: identity + money + time

# Identity 🤳

• your web3 account is your identity
• no Oauth
• your offline identity is yours to reveal or keep hidden as you see fit
• the account(s) you use to explore the space build reputation
  • reputation / street cred helps build trust in the platform
• active engagement in the community is core to a successful, community-run web

# Ownership 🔑

• you own your data, and you own the network

  • no. seriously!
  • everything is flipped on its head
  • you earn money from simply engaging the network
  • ad companies pay you to see their ads rather than google

• networks have their own economies based on their specific token or crypto-currency

  • Bitcoin, ether, doge, $NEAR
    • if it's not Bitcoin, then it's an altcoin
  • tokens in your wallet are yours to do as you wish
    • if your country freezes bank accounts, your crypto is still safe and accessible
  • digital assets are yours
    • whatever digital assets are associated with your account are yours for as long as you desire
    • there is no repo man
    • you are your own security

# Structure of Web3 🏛️

• Web3 is decentralized

  • there is no single point of entry or failure
  • if one node goes offline, the data is preserved on all the other nodes
  • no one controls the network
  • everyone controls the network
  • the wealth that is generated by the network is distributed among the people using it

• Web3 relies on Web2 to exist

  • Web3's infrastructure is decentralized
  • Web3's access layer relies on Web2 servers
  • contracts compile to webassembly so they can run in Web2 browsers

# Quiz