Technologies involved in web3.0

Non-fungible tokens

Non-Fungible Tokens (NFTs) are digital assets that, unlike traditional cryptocurrencies (such as Bitcoin or Ethereum), are unique and non-fungible. NFTs are digital assets based on blockchain technology that are used to represent and prove the uniqueness, scarcity, and ownership of digital or physical assets.

Here are some key features and concepts to help understand non-fungible tokens:

Uniqueness: Each NFT is unique, with unique identifying information that distinguishes it from other NFTs. This uniqueness makes NFTs suitable for representing ownership of digital or physical assets.
Non-fungibility: Since each NFT is unique, they are not fungible. This means that an NFT cannot simply be exchanged for another NFT, in the same way that Bitcoin or Ethereum can be fungible for each other.
Digital Art and Collectibles: One of the most common uses of NFTs is to represent digital art and collectibles. Artists can create their digital works as NFTs, sell them to collectors, and create digital copyright certificates for them.
Assets in the virtual world: NFTs are also used for virtual assets in the virtual world, such as virtual land, virtual props, virtual pets, etc. The uniqueness and scarcity of these assets can be applied in virtual games, virtual reality (VR) worlds, and the metaverse.
Blockchain standards: NFTs often follow specific blockchain standards, the most common being ERC-721 and ERC-1155 (based on the Ethereum blockchain). These standards define the structure and functionality of NFTs so that developers can create, trade and manage them.
Digital Equity and Proof: NFTs allow holders to prove their ownership of a specific digital or physical asset. This proof is immutable because it is based on the decentralized ledger of the blockchain.
Markets and Trading: NFTs can be bought and sold on a variety of markets and platforms. These markets allow holders to sell, buy, and trade NFTs, with prices typically determined by the asset’s scarcity and market demand.

Differences from traditional cryptocurrencies

NFTs (non-fungible tokens) are different from traditional cryptocurrencies (such as Bitcoin or Ethereum) in many ways, mainly in the following aspects:

Substitutability vs. irreplaceability:
- Traditional cryptocurrencies are fungible, meaning each unit (Bitcoin, Ethereum, etc.) is identical in value and functionality and can be substituted for each other. For example, one Bitcoin can be exchanged for another Bitcoin with no difference.
- NFTs are non-fungible, each NFT has unique properties and value and is not interchangeable with other NFTs. Each NFT has its own unique identifier, represents a specific digital or physical asset, and is therefore not interchangeable.
Purpose and application areas:
- Traditional cryptocurrencies are often used as digital currencies to purchase goods and services, exchange value, or be held as investment assets.
- NFTs are mainly used to represent the ownership and uniqueness of digital assets. The most common uses include digital art, virtual assets in virtual worlds, collectibles, game props, etc. They are generally not used for day-to-day transactions.
Blockchain standards:
- Traditional cryptocurrencies follow specific blockchain standards, such as the BTC standard used by Bitcoin, the ETH standard of Ethereum, etc.
- NFTs typically follow different blockchain standards, the most common being the ERC-721 and ERC-1155 standards, which define the structure and functionality of NFTs.
Ownership and Proof:
- Traditional cryptocurrencies are used to prove that the holder has access to a specific amount of a digital asset, but have no physical or unique attributes.
- NFTs are used to prove the holder’s unique and unique ownership of a specific digital or physical asset. NFTs themselves are digital proof of this ownership.
Markets and use cases:
- Traditional cryptocurrencies are usually used for investment, payment, transfer and stored value, and the market covers finance, remittance, investment and other fields.
- The market for NFTs mainly involves areas such as digital art, virtual worlds, entertainment, culture and collections, and the use cases are more diverse.

smart contract

Smart contracts run on the blockchain to implement business logic and programmed transactions. Can be seen as backend code for decentralized applications

A smart contract is a piece of program code running on the blockchain that can automatically execute predefined terms and conditions. The main features of smart contracts are:

Decentralization: The smart contract code runs on every node of the blockchain network, and there is no centralized management.
Trustworthy: The smart contract code is open and transparent, the execution process is replicable and traceable, and the results are trustworthy.
De-trust: Contract participants do not need to rely on or trust each other, and contract execution is performed automatically according to the code.
Immutable: Once deployed on the blockchain, the smart contract code cannot be changed.
Confidentiality: The true identities of contract participants can be hidden through private keys and addresses.
Cost savings: No middlemen are required, point-to-point execution is performed, significantly reducing transaction costs.

Smart contracts can be applied in many fields, such as finance, supply chain, medical care, etc. Its main functions include automated asset management, execution condition output, and implementation of business logic. Ethereum is currently the most mature smart contract platform.

Blockchain

Blockchain is the cornerstone of web3.0, providing decentralized, difficult to tamper, and trustworthy underlying technical support. The main public chains include Bitcoin, Ethereum, etc.

Blockchain is a distributed ledger technology that enables secure, transparent, and tamper-proof storage and transmission of information. A blockchain consists of nodes connected by a network of computers, each of which holds a copy of the entire blockchain.

A blockchain consists of a series of data structures called "blocks," each of which contains a set of transaction records. When a new transaction occurs, it is added to a new block. New blocks are added to the end of the blockchain and linked to the previous block.

The security of blockchain is based on its distributed architecture and encryption technology. Since each node in the blockchain holds a copy of the entire blockchain, no node can modify or delete data independently. In addition, data in the blockchain is protected using encryption technology, which makes it very difficult to tamper with the data.

Blockchain technology has the following characteristics:

Decentralization: Blockchain does not require any central authority to maintain, but is maintained by a network of nodes connected by a computer network.
Transparency: All transactions in the blockchain are public and transparent and can be viewed by anyone.
Immutability: All data in the blockchain is immutable and cannot be modified or deleted once added to the blockchain.

Blockchain technology has a wide range of application prospects, including finance, supply chain, medical care, government and other fields. For example, blockchain can be used to build a decentralized financial system (DeFi), establish a supply chain traceability system, develop a medical data sharing platform, build a digital government, etc.

Blockchain technology is still in its early stages of development, but its potential is huge. As blockchain technology continues to develop, it will have a profound impact on our society.

Decentralized applications

Called DApp, it is a decentralized application running on the blockchain and implements business logic through smart contracts. An application built on the blockchain network, which has the following characteristics:

Open source: DApp needs to open source its code and establish a transparent and trustworthy system.
Decentralization: DApp does not rely on any centralized services, and data and records are stored on the public blockchain.
Point-to-point transmission: DApp directly transmits information and confirms operations between nodes through the P2P network.
Incentivizing collaboration through tokens: DApps rely on well-defined token economics to incentivize nodes to participate in maintaining the network.
Generate clear and immutable records: DApp generates immutable operation records through the blockchain and consensus mechanism.
Ensure the openness and transparency of the verification process: All nodes in the DApp network can verify the entire process of transactions and record generation.

DApp can be seen as an application of the blockchain version of the client-server architecture, which implements back-end logic through smart contracts. Currently, the more mature DApp platforms include Ethereum, EOS, etc. In the future, DApp may become an important part of the web3.0 architecture.

Cryptoeconomics

Realize the incentive mechanism, governance and value distribution of decentralized networks through token economics design.

Cryptoeconomics in Web3.0 mainly includes the following aspects:

Incentive mechanism : Web3.0 applications and services need to have effective incentive mechanisms to attract users to participate in and maintain the network. Common incentive mechanisms include cryptocurrency rewards, smart contracts, NFT, etc.
Market structure : The market structure of Web3.0 applications and services is also different from traditional Internet applications and services. Web 3.0 applications and services are generally decentralized and have no centralized operator. As a result, their market structures are more fragmented and more competitive.
Risks : Web3.0 applications and services also have some risks, including technical risks, regulatory risks, security risks, etc.
Potential impact : Cryptoeconomics in Web3.0 may have a profound impact on the economy and society, including changing the economic structure, promoting innovation, improving efficiency, etc.

The following are several typical applications of cryptoeconomics in Web3.0:

Decentralized Finance (DeFi) : DeFi is a decentralized financial system built using blockchain technology. DeFi applications can provide users with lower-cost and more efficient financial services, such as lending, trading, insurance, etc.
Creator economy : Web3.0 provides a new platform for creators, allowing them to interact directly with users and obtain fairer benefits. Technologies such as NFT can help creators better protect their works and earn higher returns.
Games : Web3.0 games have higher immersion and interactivity. Players can own assets in the game and use them for other games or transactions. Technologies such as NFT can help game developers better design game economies and provide players with a more valuable experience.

Distributed storage

For example, distributed storage networks such as IPFS can achieve privacy protection and censorship-blocking distributed data storage.
The distributed storage technologies involved in Web 3.0 include a variety of contents, which are used to improve the distribution, availability, security and privacy of data.

IPFS (InterPlanetary File System): IPFS is a peer-to-peer distributed file system designed to create a global file storage and retrieval network. It uses content addressing (Content Addressing) to reference files instead of traditional location-based addresses. This allows files to be distributed and stored on multiple nodes on the network, increasing availability and stability.
Filecoin: Filecoin is a blockchain network built on IPFS that rewards users for providing storage space and retrieving storage. It uses blockchain technology to create a market that encourages participants to share storage resources, thereby forming a distributed storage network.
Swarm: Swarm is Ethereum's distributed storage system, which allows users to store data fragments distributedly on nodes on the network and use Ethereum smart contracts to manage data access and payment.
Sia: Sia is a distributed cloud storage platform that allows users to rent storage space, store data on multiple nodes on the network, and implement end-to-end encryption to protect data privacy.
Storj: Storj is a decentralized storage network, similar to Sia, that allows users to store data on nodes on the network and use blockchain to track storage and retrieval operations.
Decentralized Identifiers (DIDs): DIDs is a decentralized identity system that uses distributed storage to store and manage identity-related information, allowing users to better control their digital identity data.
Distributed database: Distributed storage technology also includes distributed database systems, such as Cassandra, MongoDB, Arweave, etc. These systems allow data to be stored and retrieved distributedly on multiple nodes, improving data availability and redundancy.
Blockchain storage: Blockchain technology itself can also be regarded as a distributed storage method. Each blockchain node stores the data of the entire blockchain. This data is decentralized and not controlled by a single entity.

Encryption Algorithm

Including hash algorithms, digital signature algorithms, consensus algorithms, etc., which are the basis of blockchain and cryptocurrency.
As an important part of blockchain technology, web3.0 contains a variety of key encryption algorithms, mainly including:

Hash algorithms
such as SHA256, RIPEMD160, etc. Used to generate hash fingerprints of transactions to ensure the integrity of transaction information.
Asymmetric encryption algorithms
such as RSA and ECC. Used to generate public and private keys for identification and digital signatures.
Digital signature algorithm
such as ECDSA. It is used to verify the identity of the transaction party and ensure that the transaction can only be initiated by the party holding the private key.
Consensus algorithms
such as POW and POS. Used for blockchain nodes to reach consensus and choose to generate new blocks.
Data encryption algorithm
such as AES. Used to encrypt data stored on the blockchain network.
Encrypted random number generation algorithm
such as TRNG. Used to generate security-critical information such as private keys.
Zero-knowledge proof
is used to prove the validity of an identity or transaction without revealing private key information.

original universe

Metaverse needs web3.0 as its technical foundation to provide support for blockchain, NFT, decentralized identity, etc.

Blockchain technology : Blockchain is the foundation of the Metaverse. It is a distributed ledger technology that can achieve safe, transparent, and non-tamperable storage and transmission of information. Blockchain technology is mainly used in the Metaverse to build decentralized applications, digital assets, smart contracts, etc.
Extended reality (XR) : XR includes virtual reality (VR), augmented reality (AR) and mixed reality (MR), which can provide users with a more immersive and immersive experience. XR technology is mainly used in the metaverse to build virtual worlds, virtual spaces, virtual characters, etc.
Artificial Intelligence (AI) : AI can help the Metaverse achieve more intelligent and efficient applications. AI technology is mainly used in content generation, data analysis, recommendation systems, etc. in the metaverse.
Big data technology : Big data technology can help Metaverse better understand user needs and preferences. Big data technology is mainly used in the metaverse for user profiling, personalized recommendations, etc.
Internet of Things (IoT) : IoT technology can connect the real world with the virtual world, providing more data and application scenarios for the Metaverse. Internet of Things technology is mainly used in smart homes, smart cities, etc. in the metaverse.

In addition, the metaverse also involves network, computing, communication, rendering and other technologies.

Artificial Intelligence (AI)

AI technology plays an increasingly important role in Web 3.0, used to provide personalized services, automate smart contract execution and improve user experience.

Smart Contract
Smart contract can be regarded as a simple AI program running on the blockchain, which automatically executes according to the code and implements business logic.
Decentralized decision-making
uses multiple algorithms and models for collective decision-making, rather than relying on a centralized single decision-maker.
Prediction market
uses artificial intelligence to predict event outcomes and market trends, and make decentralized decisions.
Digital identity
uses AI technologies such as biometrics and behavioral recognition to establish a decentralized digital identity system.
Content recommendation:
Using AI for personalized, decentralized content recommendation while protecting user privacy.
Automation protocol
uses AI to automatically adjust network parameters and optimize the operation of decentralized networks.
Voice interaction
applies natural language processing technology to interact with intelligent voice assistants, chat robots, etc.

Semantic Web and Knowledge Graph

Semantic Web technology helps to better understand and process information on the web, building knowledge graphs to provide smarter searches and recommendations

The Semantic Web and Knowledge Graph in Web 3.0 involve a variety of technologies designed to better understand, organize, and utilize information on the Internet. Here are some key technologies related to the Semantic Web and Knowledge Graphs:

RDF (Resource Description Framework): RDF is a standard format for representing and describing relationships between resources. It is the basis of the Semantic Web and allows information to be stored and represented in the form of triples (subject, predicate, object).
OWL (Web Ontology Language): OWL is a language used to define and reason about relationships between resources. It extends RDF, allowing the creation of more complex knowledge representations and reasoning rules.
SPARQL (SPARQL Protocol and RDF Query Language): SPARQL is a query language used to retrieve and query RDF data. It allows users to perform complex data query and retrieval operations on the Semantic Web.
RDFS (RDF Schema): RDFS is a model used to define resource categories, attributes, and attribute values. It extends RDF to allow a more detailed description of the data model.
Knowledge Graph: A knowledge graph is a way of organizing information graphically, representing entities, relationships, and attributes as nodes and edges. Google's knowledge graph is a well-known example, which contains rich entity relationship information.
Ontology: Ontology is a discipline that studies knowledge representation and reasoning, covering areas such as the form of defining resources and relationships, reasoning rules, logic and reasoning engines.
Natural Language Processing (NLP): NLP technology is used to process and understand natural language text, including analyzing text content, identifying entities and relationships, etc., to support the construction and update of knowledge graphs.
Machine learning: Machine learning algorithms can be used to extract patterns and knowledge from large-scale data, helping to build and expand knowledge graphs.
Distributed storage: Distributed storage technology (such as IPFS) can be used to store and distribute knowledge graph data, making it more decentralized and available.
Smart contracts: Smart contracts can be used to automate data interaction and operations in the knowledge graph, supporting real-time updating and sharing of data.

Privacy protection technology

Privacy protection technology helps users gain better control over their data and ensure their privacy on the web. This includes decentralized identity, anonymous transactions and data encryption

Privacy protection technology in Web3.0 mainly includes the following aspects:

Data anonymization : Data anonymization is the processing of data so that it cannot identify a specific person or organization. Common data anonymization techniques include:
- Data desensitization : Replace or delete sensitive information in the data.
- Data aggregation : Aggregating multiple data records together so that they cannot identify a specific person or organization.
- Data perturbation : Perturbing sensitive information in the data to make it difficult to identify.
Data encryption : Data encryption refers to encrypting data so that it cannot be viewed by unauthorized persons. Common data encryption technologies include:
- Symmetric encryption : Use the same key to encrypt and decrypt data.
- Asymmetric encryption : Data is encrypted and decrypted using a pair of keys, one for encryption and the other for decryption.
Privacy computing : Privacy computing refers to data analysis and calculation on the premise of protecting data privacy. Common privacy computing technologies include:
- Federated Learning : Sharing data among multiple parties, but not directly.
- Multi-party secure computing : Collaborative computing among multiple parties without sharing data.
- Trusted computing : Computing in a trusted environment to protect data privacy.
Privacy contract : Privacy contract refers to the execution of a contract on the premise of protecting data privacy. Common privacy contract technologies include:
- Zero-knowledge proof : Proves a fact or attribute without revealing any other information.
- Private payment : Make payments while protecting user payment privacy.

Quantum computing

Although still in the research stage, quantum computing could have a significant impact on Web 3.0 security and cryptography, so its development needs to be considered

The technologies involved in quantum computing mainly include the following aspects:

Quantum mechanics : Quantum computing is calculation based on the principles of quantum mechanics, so quantum mechanics is the basis of quantum computing. Quantum mechanics studies the behavior of matter at the quantum scale, including phenomena such as qubits, quantum entanglement, and quantum tunneling.
Quantum Hardware : Quantum computers need to be built using the principles of quantum mechanics, so quantum hardware is key to quantum computing. Quantum hardware mainly includes qubits, quantum connectors, quantum controllers, etc.
Quantum software : Quantum computers require the use of quantum software to perform calculations, so quantum software is an important part of quantum computing. Quantum software mainly includes quantum programming languages, quantum algorithms, quantum debuggers, etc.

The technology involved in quantum computing is still in the development stage, but its potential is huge. As quantum computing technology continues to develop, more new application scenarios will emerge and have a profound impact on our society.

Advantages of quantum computing include:

Speed : Quantum computing can solve certain problems faster than traditional computers. For example, quantum computers can crack passwords, simulate chemical reactions, design new drugs, and more faster than traditional computers.
Capabilities : Quantum computing can solve some problems that traditional computers cannot solve. For example, quantum computers can be used for quantum machine learning, quantum artificial intelligence, etc.

Quantum computing challenges include:

Technical difficulty : Quantum computing technology is still in the development stage, and the implementation of quantum hardware and quantum software faces huge technical challenges.
Application scenarios : At present, the application scenarios of quantum computing are still relatively limited and need further exploration.

Quantum computing has a wide range of application prospects, including:

Cryptography : Quantum computing can be used to break traditional passwords, which would have a major impact on cybersecurity.
Chemistry : Quantum computing can be used to simulate chemical reactions, which will facilitate the development of new drugs and materials.
Finance : Quantum computing can be used to optimize financial transactions, which will increase financial efficiency.
Materials Science : Quantum computing can be used to design new materials, which will facilitate the development of new technologies.
Artificial Intelligence : Quantum computing can be used to develop new artificial intelligence algorithms, which will improve the performance of artificial intelligence.

Decentralized Autonomous Organization (DAO)

DAO is an organization based on smart contracts, and its rules and decision-making process are jointly determined by the code and community members holding tokens. They represent a decentralized governance model.

Decentralized Autonomous Organization (DAO) involves a variety of technologies that help DAO achieve autonomous management and decision-making. Here are some key technologies related to DAO:

Blockchain technology: Blockchain is one of the basic technologies of DAO. It provides a decentralized ledger that records the rules, assets, members and transactions of the DAO. Ethereum is a common blockchain platform used to create DAOs.
Smart contracts: Smart contracts are automated contracts executed on the blockchain. They contain the rules, operations and decision-making logic of the DAO. Members of the DAO can vote, propose proposals and execute decisions through smart contracts.
Token standards: DAOs typically use tokens as members’ voting rights and governance rights, so specific token standards, such as ERC-20 or ERC-721, are required to create DAO tokens.
Cryptography and security: As it involves assets and financial decisions, DAO needs to adopt cryptography technology to protect the privacy and security of members. This includes things like data encryption, digital signatures and secure communications.
Multi-signature: Multi-signature technology allows multiple members to jointly manage the assets and operations of the DAO, increasing security and decentralization of power.
Voting and Governance Protocol: A DAO requires a voting and governance protocol to determine how members can participate in decision-making and manage the affairs of the DAO. These protocols can be custom or based on standards-based governance frameworks such as Aragon or Governance.
On-chain storage and data: DAO may need to store and access on-chain data, such as proposals, voting results, and member information. Distributed storage technologies such as IPFS can be used to store this data.
Upgrade and maintenance: DAO needs to consider how to upgrade smart contracts and governance protocols to adapt to changing needs and environments. This includes the process of proposing upgrades, voting on them, and implementing them.
Governance tools and interfaces: In order to facilitate members’ participation in decision-making, DAOs usually need to develop user-friendly governance tools and interfaces to simplify the voting and proposal process.
Security auditing and testing: In order to ensure the security of DAO, security auditing and testing need to be conducted to find potential vulnerabilities and risks.

Cross-chain technology

Cross-chain technology allows the circulation and interoperability of data and assets between different blockchains. This includes relay chains, side chains and cross-chain protocols

Side chain/relay technology
uses two-way anchoring and other technologies to credibly exchange the assets of one blockchain to another blockchain to achieve cross-chain value transfer. For example, Cosmos and Polkadot.
Hash locking
realizes cross-chain transfer by locking the cryptographic proof (hash) of assets on one chain and releasing equivalent assets on another chain. For example Atomic Swap.
Cross-chain communication:
Interoperability between cross-chain parachains or side chains is achieved through message passing. For example, Wanchain’s cross-chain function.
Notary mechanism:
Simplified Payment Verification (SPV) is responsible for verifying cross-chain transactions by introducing a trusted notary. For example, BTC Relay.
Cross-chain VM
achieves cross-chain semantic compatibility by supporting cross-chain smart contract virtual machines. For example, Cosmos' EVM.
Cross-chain network
builds a cross-chain network covering multiple blockchains, and interconnects the blockchains through the block gateway. For example ICON.
Sharding technology
recombines transactions after fragmentation processing, improving cross-chain performance through parallelism. For example ZK Rollup.