Table of contents:

• First Things First: What is Web3?
• Web3 Infrastructure Breakdown
• Who Needs Web3 Infrastructure?
• Web3 Use Cases 
• Web3 Infrastructure Companies
• The Best Web3 Infrastructure Solution for Web3 Development
• Wrapping Up
• FAQ

Developers require effective, reliable, and efficient Web3 infrastructure. While the market is overloaded with a range of tools at your disposal, new ones are emerging almost on a monthly basis.

According to this Cognitive Research, the global Web3 market size was estimated at $3.34 Billion in 2022 and is suggested to reach $49.10 Billion by the end of 2030, growing at a CAGR of 46.7% during the forecast period.

Experts say that the key drivers of such growth are the ability of the Web3 infrastructure to enhance the user experience and provide highly interactive advertising opportunities. For example, companies could use NFTs as a marketing tool, creating limited-edition assets or collaborating with artists for exclusive NFT collections.

Web3 infrastructure also acts as a foundation of the decentralized blockchain systems that boost Web3. The infrastructure is an umbrella term for a rich list of technologies, tools, and solutions developers need to build and operate with decentralized applications.

In this article, we are going to dive deeper into what Web3 infrastructure is, its essential components, and tools and resources for Web3 infrastructure you can consider now.

First Things First: What is Web3?

Before we move to the elements of the Web3 infrastructure, let's learn more about the technology itself. 

Web3 is the next version of the World Wide Web we are all already familiar with. Simply put, it's a user interface that offers access to documents, apps, and multimedia on the Internet.

Even though Web3 has grown in popularity, it is still in the development stage, so there is no accurate definition accepted worldwide. What is clear, though, is that Web3 places a strong emphasis on decentralized applications and makes extensive use of blockchain-based technologies. 

With the popularity of AI and ML, it is also expected that Web3 will also use both technologies to deliver a more intelligent and adaptive web.

Quick Overview of the Web Evolution

It is hard to understand Web3 and the opportunities it has to offer without talking about the past.

The first generation, known as Web3, was invented in 1989. The public wasn't much aware of the web until the release of Mosaic in 1993. Then, many similar graphical browsers were developed, such as Microsoft Internet Explorer and, much later, Apple Safari. 

Even though many other popular search engines like Yahoo! Search, Lycos, and AltaVista also entered the global scene, Google remained the leader and put most of them out of business.

Experts then started to promote the idea of upgrading the Web with the goal of making it more interactive; that's pretty much how Web2 was introduced. However, it took several years to develop an interactive version of the Web and was mostly driven by the extreme popularity of social networks like Facebook.

Then, The World Wide Web Consortium (which is the web's standards body) released a Semantic Web standard. Around that time, the tech world introduced two Web3 essential technologies: blockchain ledger and cryptocurrency. 

Later, well-known technologists, journalists, and even a co-founder of Ethereum started to popularize the idea and terms Web 3.0 and Web 3 (which are the same) to signify a decentralized, semantically aware version of the web we will soon see.

Web3 Infrastructure Breakdown

The main elements of the Web3 infrastructure intend to address issues related to centralization, privacy, and trust. Offering a more secure and open method of exchanging data and conducting transactions. Already established Web3 infrastructure gives users more control over their data and digital identities, leading the way to a more decentralized Internet.

These are the key components of the infrastructure of Web3:

Blockchain Technology

As you might expect, blockchain and its decentralization is an essential aspect of Web3 Infrastructure. Blockchain technology records transactions or digital information, enabling transparent and tamper-proof interactions between Web3 ecosystem players. 

A recent survey also highlights that only 24% of respondents globally are aware of the concept of Web3 though they are familiar with the blockchain.

Cryptocurrencies

Cryptocurrencies offer a medium of exchange within decentralized systems working on a blockchain ledger. Digital currencies remove the need for conventional financial systems and enable peer-to-peer transactions with lower fees and twice as high security. Since the crypto market evolves rapidly, the demand for Web3 wallets is also growing to power up the Web3 infrastructure.  

Decentralized Storage

Web3 infrastructure is able to store a large volume of data, so it requires robust and decentralized storage systems to guarantee data security and availability. 

In contrast to traditional centralized storage solutions that have singular points of failure, Web3 data infrastructure achieved through distributed storage networks is more resistant to censorship and failure because of data being distributed across numerous nodes.

Identity and Reputation Systems

Web3 promotes the idea of self-sovereign identity. In contrast, traditional centralized systems rely solely on central authorities to verify identities. Therefore, the Web3 stack requires Identity and reputation systems for establishing security and enough trust within the ecosystem. 

The report shows that 79% of survey participants want more control over their identity on the Internet.

The Web3 Infrastructure Layer

The Web3 infrastructure layer stays on top of the protocol layer. This one is made up of interoperable tools and solutions allowing dApps and users to interact with a blockchain network. It is a vital and diverse layer for Web3, with Web3 infrastructure projects being developed on a broad range of tasks.

Consensus Mechanisms

Consensus mechanisms within Web3 are used to assure agreement and validity in decentralized systems. These mechanisms help achieve distributed understanding, while traditional methods work on centralized authorities to validate the transaction. 

For example, Proof of Work (PoW) is currently the most popular consensus mechanism used by Bitcoin, which needs mines to resolve complex cryptographic riddles required for transaction validation.

Interoperability and Standards

Interoperability and standards are essential since they connect many components of the Web3 infrastructure technology. With the growth of protocols and applications on the blockchain, interoperability ensures communication and functionality across diverse platforms. 

Standardization of both data formats and protocols enables seamless collaboration, reduced fragmentation, and the development of interoperable DApps. 

Decentralized Governance

Traditional internet systems are administered by a centralized authority which has vast control and decision-making opportunities. The goal of Web3 is to introduce the idea of decentralized governance, allowing participants to make decisions collectively instead of granting control to one authority.

Decentralized governance is achieved through concepts like decentralized autonomous organizations (DAOs), where stakeholders can vote on proposals, suggest changes and adjustments, and actively participate in the decision-making process. 

Scalability and Performance

Being a key element of the Web3 infrastructure, scalability and performance is also one of the biggest challenges that prevent Web3's widespread adoption. 

Well-known blockchain ledgers have transaction throughput and processing speed limitations. Sharding and advanced consensus mechanisms like Proof of Stake are used to improve scalability without compromising data security. 

Privacy and Security

Privacy and security are also crucial elements of Web3 infrastructure. Data privacy and transaction secrecy are achieved through protocols that prioritize privacy, like zero-knowledge proofs and secure multi-party computation. The same report we mentioned adobe says 83% of respondents globally say that data privacy in Web3 is important for them.

Who Needs Web3 Infrastructure?

Providing a secure platform for data storage, decentralization and speed, Web3 infrastructure is beneficial for anyone interested in developing decentralized applications (DApps) or using blockchain technology can benefit from Web3 itself and its infrastructure.

For example, mobile app development companies building dApps, crypto wallets and Neobanks will be pioneers reaping the benefits of the Web3 platform today. That is because the market already offers Web3 solutions, like Web3 wallets and pre-written smart contact code, allowing businesses to speed up the development process without sacrificing quality of the end product.

Almost any Web3 business, Web3 developer, as well as regular companies and brands can harness the potential of Web3 technology with the goal of building secure, transparent, and efficient systems.

Programmers can use Web3 to build dApps that offer unique features or address intricate issues. Businesses are also able to enhance security in trustless systems by reducing vulnerability to manipulation or data leakage.

Web3 Use Cases

Web3 applications and use cases are expected to draw heavily considering the web's emerging AI uses and its ability to understand users' behavior and deliver tailored content based on data collected. 

Being powered by blockchain, Web3 enables new services and applications in active use today. Some of the key ones are:

Non-Fungible Tokens (NFTs)

NFTs are digital tokens used to represent ownership of unique items. These tokens allow creators to digitize various items, like art, collectibles, or even real estate, which is known as real estate tokenization. NFTs are expected to play a vital role in how things of value will be created and exchanged on Web3.

Decentralized Finance (DeFi)

Decentralized finance (DeFi) is suggested to reduce the need for traditional finance systems, serving as the basis of the Web3 platform of decentralized financial services.

Cryptocurrency

Cryptocurrencies, used to generate monetary units, conduct transactions, and verify changes of ownership, will become the Web 3.0 coin of the realm, according to the technology supporters.

Decentralized Applications (dApps)

The dApps refer to open source applications developed on blockchain ledger. There are many dApps available today, including those for middleware, charitable donations as well as social media platforms.

Smart Contracts

Smart contracts are already the basis for upcoming blockchain apps and are suggested to act as a foundation of Web3 infrastructure. Even though the legal status of smart contracts should still be determined in most jurisdictions, they are more responsive to changing conditions compared to traditional ones. For that reason, some developers and mobile app development companies seeking Web3 opportunities started to implement contract-developing frameworks that simplify the process of writing smart contracts for different purposes.

Web3 Infrastructure Companies

In addition to key market players you already know such as Binance, Coinbase and Open Sea, we would like to showcase other companies that are either currently implementing or already have Web3 infrastructure. Let’s explore two of Spatium’s clients.

Wirexapp

Being on the crypto market since 2014, Wirex is already trusted by 6 million people with 20+ billion in crypto transactions.

Wirex is a financial services platform providing a range of services, where the Wirex card is the most popular one. This card acts as a debit one, allowing users to spend their cryptocurrency and traditional currencies in the same way they would use a regular debit card. This card was specifically developed to work as a banking alternative designed for Web3. 

Wirex cross-chain wallet built for DeFi and NFTs makes storing crypto safe and easy. It is the world’s first non-custodial wallet that has no seed phrase vulnerability and supports 8 blockchains.

DEXFIN

DEXFIN, as a one-stop solution to buy, store and manage digital assets, reduces the legacy of crypto’s early days and offers the highest level of security. It allows users to store digital assets, get profit from staking, save on fees, leverage tokenization and more.

The goal of DEXFIN is to build the infrastructure for the next generation of Web3 financial markets. Supporting 9 blockchains, DEXFIn self-custodial seedless wallet is one account for everything: over 100 coins, tokens and addresses.

The Best Web3 Infrastructure Solution for Web3 Development

Among all the solutions for Web3 development being available today, Spatium is the leader in the field of Web3 wallet development. Being a Web3 wallet infrastructure provider and promoting the idea of open access to the blockchain ecosystem for everyone, Spatium developed an unbeatable tech stack that will significantly boost the process of Web3 wallet creation. 

Web3 Wallet Overview

A Web3 wallet refers to a software program storing private keys that are required to access blockchain networks and conduct transactions. In contrast to traditional wallets that store physical currency, Web3 wallets store both cryptocurrencies and NFTs.‍

Spatium as a Trusted Web3 Wallet Infrastructure Provider 

Spatium lets developers integrate crypto wallet SDK, wallet cloud, or wallet UI at any stage of the process to enjoy the simplicity and reduced time and costs needed for wallet creation. Using Spatium means building user-friendly and convenient Web3 wallets, which creation doesn't always need technical skills or background.

Wrapping Up

Web3 infrastructure is going to determine the future of the Internet. Blockchain, cryptocurrencies, decentralized storage, NFT, smart contracts as elements, and best practices for Web3 infrastructure are being actively developed and improved to create a new decentralized version of the global Web.

The decentralization in the infrastructure of Web3 will also return the control to the users, giving them the power to control their data and online interactions. As Web3 tools and technologies develop and Web3 communities grow, businesses should stay updated regarding the latest tech evolutions and solutions that can be used to power up the development process.

FAQ

What is Web3 Infrastructure?

Web3 Infrastructure is an umbrella of a rich set of tools and technologies that create the decentralized and blockchain-based ecosystem used by the Web3 platform. Some of the technologies and tools that act as building blocks of the Web3 Infrastructure are NFTs, smart contracts, cryptocurrencies, machine learning, and AI.

What is the difference between Web2 vs Web3?

The key difference between Web2 and Web3 is the shift from a centralized to a decentralized Internet. Web2 relies on intermediaries and centralized platforms. Web3, in contrast, enables peer-to-peer interactions and gives control to users rather than one  authority. In addition, Web2 is more about acting as company servers, while Web3 is an illustration of blockchain technology and decentralization. 

What are Web3 limitations?

The main limitations of Web3 Infrastructure that are highlighted by experts and supporters of the technology are scalability and interoperability.