BlockChain_Basics_Meta_Verse_Web3_Course_Part2.pptx
- 1. The Metaverse & Web 3.0 – with NFT, Evolution of Internet – 2nd https://alison.com/course/the- metaverse-nft-and-web-3-0- evolution-of-internet
- 2. Module on Blockchain The Fundamentals of the Blockchain
- 3. Web 3.0 & Metaverse Web 3.0 relies on the notion that there was already a drastic change in how we employ the internet, moving us from Web 1.0 (20th-century internet) to Web 2.0 (contemporary internet). Now we can see the signs of Web 3.0 in the form of blockchain and NFTs. Some realizations about Web 3.0 are: • Blockchain technology will serve as the backbone of Web 3.0. • Decentralized web browsers and NFTs could be very early signs of Web 3.0. • We might employ VR technology (which will be discussed in later topics) to enter tomorrow’s internet. So by using that we may travel between virtual worlds as digital avatars. • Web 3.0 could also be experienced just like contemporary internet, with computers and smartphones. • The future of the internet will include the benefits of today, but with novel elements from Web 3.0 and the metaverse. Web3.0 focuses on understanding data through machines to create connected and open websites. Although Web 3.0 is thought to revolutionize the online world, its implementation is still in process and can take several years. Web 2.0 furnishes websites and applications to use user-generated content for the end-users and readers. It is used by nearly all websites today, especially user interaction and collaboration. It allows contribution and collaboration of on-site content. Whereas web 3.0 will offer interactions, 3D simulations and a lot more. Metaverse and Web 3.0 are not exactly the same thing, but they can overlap and can be synergized. For instance, digital artists can create an outfit for an avatar to wear in the metaverse. Artists can make money by selling it with the help of an NFT. This would offer the buyer exclusive ownership of the outfit. Now when people imitate that design their avatars will not be worth it as the real owner has the unique NFT of the original product.
- 4. Properties of Web 3.0 • The primary focus of Web 3.0 is using technologies like AI for providing relevant content to every user. Compared to Web 2.0, Web 3.0 is most likely to hand over the tasks of content contribution to AI technology. • Artificial Intelligence : The use of AI in Web 3.0 will make it faster and more relevant to the end-users. A website using AI can filter the provided data as per the specific requirements of the users. AI will also prevent manipulation and falsification of search results. • Virtual Assistance : Web 3.0 will also empower users to have virtual assistance. An automated voice-activated virtual assistant is today's example of this facility just in the case of Google assistant. When it will become widespread it can take things to the next level where assistants can manage the appliances and devices in different ways. 5G cellular network will take this to next level and will empower IoT (Internet of things). IoT is the network of physical things and devices that comes with embedded sensors, software, and technology for connecting and sharing data with other devices and systems throughout the internet. • Categorizing of Information: Web 3.0 will also help with categorizing and storing information for specifying the relative data. Thus, the website will become more presentable to the viewers.
- 5. Introduction to Blockchain Layers • Blockchain technology is a mixture of technologies, such as game theory and cryptography. • Game Theory is the study of the mathematical models for making strategic interaction between rational decision makers. • Encoding and decoding data come under the mathematics and computational discipline known as cryptography. • Among several benefits of blockchain, the most profound is that it eliminates intermediaries, reduces costs, and improves efficiency by being a transparent and secure platform. • Since any central authority or government does not control the blockchain, the DLT (Distributed Ledger Technology) performs the task of verifying any information via cryptography. Any member of a blockchain network witnesses their information being verified via DLT. • Also, because of the lack of a governing body in the blockchain, it becomes easy to scale. The scalability of handling an increased number of users, transactions, and other information is among the many benefits that make blockchain preferable over conventional computer systems. Due to the scalable nature of blockchain, several layers came into being for providing enhanced security. • Scalability refers to an increased system throughput rate measured in transactions per second in the blockchain. In this formula, throughput is the number of transactions a system handles per second
- 6. CAP Theorem & The Blockchain Trilemma • The CAP (Consistency, Availability, and Partition Tolerance) theorem was formulated back in the 1980s. It states that any decentralized data storage (e.g. blockchain) can satisfy only two of the three ingredients of the CAP theorem. The Evolution of CAP Theorem in Blockchain Trilemma • The CAP theorem has evolved into a blockchain trilemma. It means that a public blockchain infrastructure is meant to sacrifice either scalability, decentralization, or security. • The blockchain’s scalability is its ability to handle a greater amount of transactions • Decentralization is a type of network redundancy that ensures that the network control is not under a few entities. • Security refers to the ability to secure data on the blockchain from different attacks and blockchain’s defense against double-spending.
- 7. Scalability Vs Decentralization Vs Security • For settling a transaction, a blockchain network is required to agree to its validity. If the system has many members, this can take some time. The result of this will be: Scalability is inversely proportional to decentralization (if security parameters are identical) • if the two blockchains (with same proof-of-work) have the equal degree of decentralization along with the security as their hash rate, the confirmation time will be decreased with the increase in hash rates. Similarly, the scalability will rise with the improvement of security. This shows that: Scalability is directly proportional to security (if decentralization remains constant) • Since all of the three components of the blockchain trilemma are unable to interact with each other at the same time, the blockchain has to make trade- offs. A prominent example of this was Ethereum that saw a rise in usage because of the growth of DeFi (Decentralized Finance) applications. Due to this sudden rise in demand, transaction fees also surged to a level where many people were unable to engage with the blockchain.
- 8. Blockchain Scalability • Ethereum is example of the Blockchain trilemma. It was unable to scale without the sacrifice of security or decentralization. It can be thus seen that blockchains belonging to some of the largest cryptocurrencies (like Ethereum) have very limited scalability. The Role of Blockchain Layers in Increasing Scalability Currently, work is underway for increasing the scalability of the blockchain networks. • The Layer One Blockchain has been designed for providing speed, security, and expansion. • The Layer Two Blockchain refers to technological enhancements and products for utilizing the expansion of scalability of blockchain networks already present.
- 9. The Layers of Blockchain • The hardware Infrastructure layer consists of servers present in data centers. While browsing the web or using any app, the clients request content or data from these application servers. This layer also allows the clients to engage in a P2P (Peer-to-Peer) network, a large number of computers sharing data. Blockchain is a prevalent example of this P2P network. Like a computer network, its computers validate and records transactions orderly in a shared ledger. This results in creating a distributed database that stores all the data and transactions. In a P2P network, the computer is designated as a node. • The data layer in the blockchain is present as a list of blocks linked with each other, and transactions are ordered in them. There are two fundamental elements of the blockchain data structure: Pointers & linked list • In the data layer, Pointers refer to the variables referring to the position of another variable, while a linked list is a list of chained blocks containing data and pointers connecting to the preceding block.
- 10. The Layers of Blockchain…2 • NW Layer is also known as the propagation layer and P2P layer and is responsible for inter-node communication. A P2P network is a computer network where nodes are distributed to share the workload of the network for attaining a common purpose. This layer handles - discovery, - transactions, and - block propagation. • With the NW/P2P layer, it is ensured that the nodes can search each other for interacting, disseminating, and synchronizing for keeping the blockchain in a legitimate state. • Consensus Layer is mandatory for the existence of blockchain platforms. It is the most critical layer for any blockchain platform. This layer validates blocks, orders them, and ensures that everyone agrees upon them. • Appln Layer is made up of Smart contracts, DApps (Decentralized Applications), and chaincode. Its protocols are divided into the application and execution layers. It is composed of the programs that end-users utilize for communicating with the blockchain networks. Some other parts of the application layer include APIs (Application Programming Interfaces), frameworks, scripts, and user interfaces.
- 11. Merkle Tree • In the blockchain, the Merkle tree refers to a binary tree of hashes. Inside each block, there is a root hash of the Merkle tree and other information, such as block’s hash, nonce, block version number, current difficulty goal, and timestamp. The Importance Of Merkle Tree in Blockchain • In Blockchain, the Merkle tree protects the integrity and security of the blockchain data. All the transactions are digitally signed and a private key is used for signing the transactions. Anyone having a public key can verify the signer. Benefits of Digital Signature • The role of digital signature in this scenario is to detect any manipulation in information • They also ensure unity as the data is encrypted. Therefore, any manipulation being made will result in invalidity of the signature • The data cannot be discovered due to being encrypted with digital signatures • The data cannot be tampered