Web3 Ethereum Landscape

Web3 Ethereum Landscape

Different Landscapes in Web3

Layer 1 platform Layer 2 platform Infrastructure CeFI DeFI

As a first point When deciding to build a WEb3 App? The key things need to keep points are as below

1) Problem - What pain point iam addressing? 2) Key differentiator - How is my solution different from others? 3) Customer - who is this for ? 4) How do i defend against competitors? 5) Business Model - How does this make money ?

Layer 1 : *

Layer 1 Platofrms:

Most decentralised Web3 App are built on one or more Blockchain which will manage the core logic of those application , Each blockchain typically have a native crytpocurrency.

Special purpose chains (Bitcoin, stellar, Zcash, Cosmos Hub) Programmable chains - EVM chains (Ethereum, Polygon,Avalanche..) Alternate VM chains (Solana, Sui, Aptos ...)

Layer 2 : Layer2 Platforms

One solution for scaling problem is to move some logic from the Layer 1(L1) chain to a Layer 2 "L2" . These L2s depend on the security of L1.

Eg : Popular L2 architecture "rollup"

Rollups post their raw data to the L1 , but prove the results of execution more efficiently. Rollps reduce computation on the main Ethereum chain by processing transactions off-chain, offering significant improvements in processing speeds

Few Examples :-

  • Optimistic Rollups: execution proven via challenge response game -ZK Rollups : execution proven via fancy cryptography

Infrastructure Landscape in Web3 :

Wallets (Metamask , Phanton ..) Block Explorers (Etherscan ..) Node Infrastructure (Infura, ALchemy...) Data Indexers (The Graph,nxyz,Dune Analytics...) Developer Tooling (Hardhat,Foundry,Tenderly...) Custody and keymangement( Anchorage,Fireblocks ...) Mempool and block building infrastructure (blocknative,Flashbots,bioXroute...)

centralized FInance (ceFi)

Examples :-

Exchanges(coinbase,FTX,Binance...) on- and off-ramps(Moonpay,stripe,Ramp...) Custodians(Anchorage,Coinbase ....)

Decentralized FInance: is a type of Hybrid Smart contract

DeFi applications provide global permissionless access, mitigate counterparty risk, and interoperate with other applications to enable more advanced financial products. ‍Reference : defillama.com

Decentralized exchange (Uniswap,Sushiswap,Curve ...) Stablecoins(USDT,USDC,DAI...) Lending(Compound,Yield,Aave...) NFT Marketplace(Magic Eden,Opensea...) Yield Aggregators (Yearn ...) Insurance(Risk harbor, Nexus Mutual...)**

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