Hiroki Kotabe, past member of The Block Research team, has developed a clear and concise framework for the many use-cases that are defined under the web3 umbrella. This is commonly referred to as the DAPP Framework – each letter stands for one of the four main architectural components of the web3 stack. As explained by The Block Research:
Doors – Enable users to access and interact with web3
Applications – Connect users with Protocols and Primitives via a user interface and experience
Primitives – The task-specific, interoperable building blocks for decentralized Applications
Protocols – Construct the foundational blockchain architecture of web3
These architectural components help delineate the web3 use cases and allow individuals to better define and represent them for application infrastructure components, or to determine tactical planning more clearly for strategic goals within web3. We will summarize these main infrastructure components, and the opportunities for these use-cases to be leveraged in significant industry verticals.
Doors – Enable users to access and interact with web3
The Doors layer of the web3 stack allows users to access web3 and is a necessary component to solving web2’s various incapabilities. Web3’s main value propositions are developed utilizing blockchain technology at this layer, which includes the efficiency of data transmission and interoperability of access in a decentralized way.
The most exciting connection point for access to the web3 applications is the peer-to-peer network. This is the newest of the options for connection, versus a centralized hosted node network or a self-hosted node. This is essentially the Goldilocks effect of the two incumbent connection approaches to hosted access. P2P connection is the most innovative decentralized approach for connectivity to date, and aims to bridge the relationship between lower costs while developing greater reliability when it comes to outages.
P2P connections rely on remote procedure calls (RPCs) in the same way traditional networks use encryption packets to fluidly identify and validate the right destination for information. RPCs will garner more effectiveness through decentralization by avoiding potential hardware service outage issues that could create a single point of failure for web3 network uptime.
Applications – Connect users with Primitives and Protocols via user interface and experience
The Application layer is likely the most common consumer-forward layer of the web3 stack. This is where all the headlining, front-end use cases are developed. The application layer allows individuals to interact with primitive and protocol layers which are described below in this article.
Namely, gaming and gamified use cases are becoming all the rage for web3. Developing play-to-earn (P2E) strategies utilizing blockchain and in-game rewards that prompt consumers to engage in the economics of web3 has created significant new venture capital interest. This concept can be leveraged in many ways for finance-driven applications that both help consumers invest soundly, while creating a value proposition for the company deploying P2E strategies.
Additionally, non-fungible tokens (NFTs) are finding new utility outside of the common practices of art burned and minted onto blockchain protocols. We are seeing an influx of projects expanding beyond just “ownership” to give access to new projects to a select number of exclusive users. Additionally, NFTs can be utilized in new ways, like supporting purchasing ownership of property, defining mortgage loan ownership, or other collectibles in the real world utilizing blockchain’s immutable, transparent decentralized ledger. Rare, expensive collectibles will find ways to utilize that ledger approach to track ownership of real-world assets in the web3 space.
Primitives – The task-specific, interoperable building blocks for decentralized Applications
The Primitive layer of the framework is arguably the most diverse and customizable of back-end use-cases for the developing web3 market. When combined with different primitives, the functionality of these interoperable applications builds entirely new landscapes of application potential for front-end and user-specific experiences, as defined above.
Prominently, the capability to buy and sell assets, borrow/lend those assets, and even to stake assets (or receive dividends as rewards on tokens that are locked onto to the protocol for validation purposes) will become a very diverse and functional aspect of the primitive layer.
Most importantly, the storage on the primitive layer and transmission between these applications will undergo a level of uncertainty due to smart contract exploitation. Many firms will look to support this layer by performing smart contract audits and other software security reviews to assure the underlying smart contract code and environments surrounding those smart contracts are devoid of potential exploitation.
Protocols – Construct the foundational blockchain architecture of web3
Protocols are the necessary architecture upon which all web3 infrastructure must be built. These are constructed in “Layers.”
Layer-1 (L1) infrastructure comprises your kitchen-table names, like Bitcoin, Ethereum, BNB chain, and Solana, among others. Additionally, the L1 chain comprises cross-chain bridge protocols and scaling solutions that allow L1 infrastructure adoption. Protocols can expand on the capabilities of L1s.
L2 capabilities are often intended to increase the speed and reduce the cost of transactions (gas fees) compared to their L1 predecessors. Often, L2 scaling solutions have expanded the use cases and capabilities above and beyond L1 infrastructure because of their diverse abilities. Bitcoin’s Lightning Network, or Polygon and Arbitrum’s scaling solutions, are prime examples of user-friendly L2 protocols that are driving the front-end development of web3 infrastructure. Many household names of the web2 economy, such as Nike, Starbucks, and Coca-Cola, are looking at ways to expand their offerings to interact with L2 infrastructure in the web3 space.
Ultimately, a mature protocol infrastructure will allow for greater interoperability between different layers and scaling solutions, much like how our current internet can communicate between different websites through “links.” Web3 will leverage smart contracts to support these capabilities, which will be critical to the success of the decentralization, autonomy, and transparency of the web3 environment.
The Future of Web3 and DAPP
The DAPP Framework allows organizations to develop greater context for the many use cases and functions of companies building in the web3 space. It offers myriad enhancements that allow companies to develop decentralized, user-first applications. As a result, these applications are also more private and accessible globally utilizing the Doors, Applications, Primitives and Protocols concepts outlined in the Block Research’s framework. As these infrastructural elements become widely adopted, the digital revolution will create a faster, more fluid space for commerce and transactions.
