In the history of Web3, there have been numerous trends that have continued to push the industry forward. In 2017 to 2018, there was the boom of “Ethereum Killers” such as Solana and TRON. In 2020, the industry had “DeFi Summer” where decentralised finance projects (like SushiSwap) multiplied by the day. While some trends like DeFi become household names however, others barely make a ripple before they vanish.
While we're all for a bit of healthy scepticism, it's crucial for us to keep our fingers on the pulse of innovation to spot the real game-changers. Here, we'll delve deeper into five prominent Web3 trends that we believe are here to stay, exploring real-world examples that illustrate their significance.
Account Abstraction: Simplifying Onboarding
Web3 has come a long way, but its onboarding process remains a stumbling block for many. To access decentralised applications (dApps), users typically need to install crypto wallets, securely manage their keys, memorise seed phrases, and acquire tokens for transaction gas fees. This complex onboarding process is a far cry from the user-friendly experience of Web2, where a simple email or social media login suffices.
Account Abstraction (AA) is like turning every user's account into a mini-computer that can make its own decisions, verify who you are, and even help you get back in if you're locked out, just like your friends or family might have a spare key to your house.
Example Use Cases:
i) Lost Wallet Password
Imagine losing the password to your digital wallet where you store cryptocurrency, kind of like misplacing the login information to your online banking. Normally, this could mean losing access to your funds forever. But with a technology called ERC-4337, it's like having a bank's customer service to help you out. If you can't remember your password, you could have set up a system where trusted people in your life, like a close friend or your lawyer, can confirm your identity and help you regain access to your account. This process is known as Social Recovery, and it's like having a backup plan in case you lose your keys.
ii) Stolen Password
In the unfortunate event that someone gets hold of your password, Account Abstraction offers you a way to build in extra security layers. For example, you could set up your wallet so that if you or anyone else tries to spend a large amount, like $5,000 or more, it would require a second form of verification, similar to how a credit card company might ask for a PIN or a signature for big purchases. This is akin to having a two-step verification where a text message with a code is sent to your phone before the transaction can be completed. It's an added line of defence to ensure it's really you who's trying to spend your funds.
Actions traditionally associated with user accounts, such as signing transactions, are abstracted. This opens up exciting possibilities, like dApps sponsoring user gas fees and enabling gas fee payments in various tokens. Not to forget, remote blockchain job opportunities in this space are expected to soar.
Examples from the real world showcase the potential of AA. For instance, Argent X, a popular wallet, leverages AA with Starknet to implement multicall, allowing wallets to sign multiple transactions at once. Meanwhile, on Flow, AA is the foundation for Walletless Onboarding, offering users a nearly seamless onboarding experience by enabling account delegation and control through Capabilities.
Composability: Building with LEGO Bricks
Composability is a key concept in Web3 that allows developers to create solutions by building on shared standards. Blockchain developer jobs are increasingly about creating modular and interoperable solutions. It's like playing with digital LEGO bricks, where developers can combine existing components to create something new, reducing development time and risk.
Ethereum offers a prime example of composability. Smart contracts on Ethereum can be seen as building blocks. A dApp or smart contract can call any existing smart contract and use its functionality as needed, eliminating the need to reinvent basic functionalities each time.
The NFT space also embraces composability. Consider the popular NFT project, Doodles. They migrated to the Flow blockchain to harness the increased composability it offers, allowing NFTs to be equipped with other NFTs, expanding their utility. This transition also enabled NFT holders to take their Doodles to social platforms, games, live events, and more, demonstrating the power of composability in Web3.
Utility NFTs: More Than Digital Art
While many NFTs are known for their digital art, an exciting trend is emerging: utility NFTs. These tokens provide real-world value beyond their NFT status. Consider the Ethereum Name Service (ENS) domains. Owning an ENS domain doesn't just grant ownership; it also offers control over the domain's target address and metadata. This adds utility to an NFT beyond simple ownership.
This trend is expanding rapidly, with NFTs now offering services such as subscriptions, access to events, certifications, music royalties sharing, and even access to music or ownership in the metaverse, such as land and fashion.
For example, projects like VeeFriends offer NFT holders exclusive access to Gary Vaynerchuk's events and community, showcasing the real-world utility of NFTs. Utility NFTs are at the forefront of transforming the NFT space into a dynamic ecosystem, creating more diverse jobs for blockchain.
In-Game Assets for Gaming: Expanding Possibilities
In-game assets are no longer confined to the boundaries of a single game. Traditionally, in-game assets and currencies were locked within their respective games, and their value was limited to in-game utility. However, blockchain-based in-game assets are changing the game by allowing users to own, control, sell, buy, and use their assets across various games and platforms.
Imagine owning a powerful weapon in one game and being able to wield it in a completely different gaming universe. This concept introduces a new level of interoperability and value to in-game assets, opening up possibilities for new jobs in blockchain that focus on creating cross-game experiences.
Real-world examples of in-game NFTs are abundant. Metaverse land, like those in The Sandbox, God's Unchained cards, Axie Infinity Axies, and in-game wearables in Decentraland are some instances where in-game NFTs have already gained traction.
The play-to-earn model, where players can earn real value from in-game activities, has shown promise in blockchain-based gaming. The question remains: will this concept expand to greater interoperability? And will we see established gaming companies embrace NFTs creating more blockchain jobs in the gaming industry?
Stealth Addresses: Protecting Privacy on the Blockchain
Privacy is a growing concern in the world of blockchain. In most blockchain networks, transactions are public, meaning anyone can scrutinise transaction details, including sender, recipient, and transaction amount. While this transparency is beneficial for trust and accountability, it also raises concerns about privacy.Stealth addresses offer a solution by enhancing transaction privacy.
They automatically generate a new address for each transaction, masking the link to the primary account. While transaction information is visible to involved parties, external observers cannot decipher the link between the addresses.
This privacy enhancement is not only crucial for individual users but also for broader adoption. Consider the scenario of receiving a crypto-based salary; you'd want to keep that information private. Ethereum's creator, Vitalik Buterin, has proposed implementing stealth addresses to enhance privacy protections on the Ethereum network.
Conclusion: Navigating the Web3 Frontier
These five Web3 trends represent the evolving landscape of digital innovation. Web3 is a dynamic and ever-changing environment, and the best way to stay ahead is to engage, learn, and experiment.
As we venture further into the Web3 frontier, these trends aren't just abstract ideas. We at Calyptus, with a streamlined interview process and educational content, ensures engineers are ready to dive into this ever-changing world. We just explored how these trends make a real impact, and Calyptus is right there, offering the support and community needed to make a difference.
Are you already experiencing these trends in your Web3 adventures, or do you have insights to share? Feel free to share them with us on Twitter by tagging @calyptus-web3. We look forward to hearing your thoughts and experiences as we journey together into the future of Web3.
Top comments (1)
Great piece on the potential of Account Abstraction (AA) to enhance Web3 user experience! At Gridlock, we're addressing similar concerns with wallet security and usability. Our mobile-first crypto wallet leverages Multi-Party Computation (MPC) to fragment encryption keys, distributing the responsibility across a network – akin to AA's vision. Our aim is to make crypto storage as seamless and safe as possible, without the need for consumers to handle hardware wallets or complex seed phrases. By aligning with the industry's progression towards more intuitive and secure experiences, we believe Gridlock will pave the way for broader adoption of Web3 technologies. Thanks for highlighting such an important area.