In web3 space, the strength of a community often dictates the success or failure of a project. Over recent years, numerous web3 projects spent thousands of dollars in marketing campaigns without achieving significant impact. However, a shift occurred in 2023, projects started using a new way to market called airdrops, which really grabbed people’s attention and worked well.
What is an Airdrop?
An airdrop in web3 is when projects distribute their tokens for free to users, aiming to increase the token’s usage and popularity, much like giving away “Free money”. This is often done to increase the token’s adoption and popularity. To be eligible for an airdrop, users often need to complete certain tasks, such as engaging with the project’s platform, taking quizzes, and being active on social media platforms like Discord. However, even after doing these tasks, there’s no guarantee of receiving an airdrop, as projects have specific criteria for choosing recipients.
Platforms like Galxe and Zelle facilitate the promotion of these airdrop campaigns. Although the project team might announce an airdrop, it’s usually intended to be a surprise to prevent attracting bots and malicious users.
How to qualify to Crypto Airdrops
Crypto airdrops can be divided into two main types: active and passive. Active airdrops require ongoing tasks from users. For example, a decentralized exchange (DEX) planning an airdrop might ask users to complete a certain number of daily trades or reach a minimum trading volume. On the other hand, passive airdrops typically require a one-time action. For example, in the case of a platform focused on liquid staking, users may need to stake a specified amount of cryptocurrency on the platform and then simply wait to receive the airdrop.
Which are the advantages and disadvantages of each one?
Passive airdrops are generally easier to participate in because they require just a one-time action. However, the drawback is that the project may demand a significant amount of cryptocurrency to be staked, or there might be a large number of participants, which could result in smaller rewards for each user.
On the other hand, active airdrops demand more effort as they require daily tasks, making them more time-consuming. This higher effort often leads to fewer participants, increasing the likelihood of being selected for the airdrop and receiving a larger share of the crypto asset as a reward for each active participant.
Popular Crypto Airdrops
Several leading projects have utilized airdrops to engage their communities and encourage participation. Uniswap, the known decentralized exchange (DEX), distributed its governance token, $UNI, to active users, fomenting users’ involvement in its ecosystem. Similarly, Arbitrum, a popular Ethereum Layer 2 solution, rewarded early adopters with an airdrop exceeding 1 billion USD in $ARB tokens, enhancing its network’s growth and user investment.
Such initiatives not only reward existing users but also attract new participants, demonstrating the strategic value of airdrops in gaining user adoption and creating a strong community within the web3 domain.
My experience with Airdrops
How it started?
Around 2022, I started participating in free airdrops offered by various new and upcoming projects. These airdrops simply required me to perform small tasks, such as joining a Telegram group, retweeting posts, or using testnets. Most of the rewards were not so high but I saw how airdrops worked and they offered a risk-free introduction to the crypto space without any initial investment. Also with these airdrops I was able to earn ‘free money’ completing a small number of tasks, a way I recommend to build a diverse portfolio.
How It’s Going
As I grew more confident and knowledgeable about the crypto market, I started engaging in more profitable, though not always risk-free, airdrops. For finding airdrops you can follow popular crypto influencers or use websites such as galxe.com or zealy.io. These typically required a bit more from me, such as staking tokens or participating in main network activities. While many of these airdrops proved to be more lucrative, not all were successful, I encountered airdrops where the cost of gas fees and the time I invested did not match the eventual value of the tokens received.
With this in mind, if you start getting involved in crypto airdrops, I recommend allocating a portion of your portfolio to invest in them. Be aware that you might lose this investment, but it will allow you to have better control over your participation and your return on investment (ROI) from airdrops. Let’s analyze some other risks I learned during my participation in airdrops.
Crypto Airdrops Risks
As mentioned before, there are airdrops involving the use of crypto assets on testnets. I consider these types of airdrops to be risk-free; in the worst-case scenario, you would only lose the time invested in completing the tasks. With this in mind, for all other airdrops that require using the mainnets, the following risks are present:
Over-saturation and Dilution: A high number of participants in an airdrop can lead to oversaturation, diminishing the perceived value of the tokens for each user. In some cases, the value of the airdrop may not even cover the fees incurred by the user for participating in the activities.
Scams and Frauds: Some airdrops are designed to defraud participants by requesting an upfront payment and then disappearing.
Token Value Volatility: Airdropped tokens can be highly volatile. Their value may plummet shortly after distribution as early recipients rush to sell their tokens for profit.
Conclusion
In conclusion, airdrops in the web3 are a compelling strategy for projects to enhance visibility, engage communities, and distribute tokens to early adopters. I consider airdrops are great opportunities for users who want to get involved in Web3 space with a small portfolio or any at all, it can be the key to success in the next bull run. Although it seems like a chance to get ‘free money’ by just joining in through passive or active participation, users must navigate these opportunities with caution, aware of the inherent risks of scams, market volatility, and regulatory concerns. Always proceed with caution and DYOR!
At first glance, the title might suggest that winning a game is as simple as pressing the L2 button on your joystick. However, I’m not referring to that. Instead, I’m talking about the second layer (L2) of the blockchain. We can imagine a blockchain as a multi-level building, where the first floor is the main chain and the second floor is the second layer.
Is L2 a blockchain? No, the second layer refers to additional protocols or systems built on top of the underlying blockchain network. These layers are designed to enhance the capabilities of the blockchain and address issues such as scalability, speed, and privacy. However, the second layer is meaningless without the main chain. It is a second floor built above the first floor.
Why do we need L2? Blockchains are essential but limited. What if you need to process millions of transactions per day? Is the transaction speed sufficient to handle them? and how much do they cost? L2 is faster, cheaper, and even more secure when it comes to transactions.
Are there different kinds of Layers 2? Yes, there are various types such as payment channels, state channels, and rollups. Some of the most notable projects include Starknet, Optimism, and Arbitrum.
How does L2 communicate with L1? Each L2 has its way of communicating, but they usually submit data (as proofs) into the main chain to use L1 security to ensure L2. However, this data does not correspond to a single transaction in L2 but rather a large number of them (to keep the cost low). They may also use smart contracts in L1 for that interaction or dedicated nodes as watchtowers.
What if Layers 2 is a blockchain? Then it is known as a Sidechain, which is a separate blockchain interoperable with L1 but that operates independently. It’s often used to offload transactions and data from the main chain to improve scalability, speed, and functionality without compromising security. The communication between both chains depends on locked tokens on the main chain that are emitted in the second chain (and burned in the second chain to be unlocked in the main chain). This process is known as Bridge. For example, Rootstock is a sidechain for Bitcoin, and it has its bridge.
Are the main chains okay with the existence of Layers 2? L1 has a vested interest in the success of Layer 2 solutions because they help address scalability and usability challenges while expanding the overall ecosystem. For example, it is very common to find a lot of L2 content in Ethereum events. You can even find a section in the Ethereum documentation describing L2: https://ethereum.org/en/layer-2/
What does all of this have to do with gaming? Everything. Nowadays, a game that is not agile and cheap cannot succeed. That’s why you need L2 if you want to play and complete a web3 game.
2023 is behind us, and as we step into the new year, we’re faced with a fresh set of opportunities. The past year, dominated by a bear market, was a real test for the web3 ecosystem. We witnessed many projects struggling to stay afloat, while others not only survived but thrived by adding real value to the ecosystem. As we look ahead to 2024, it’s clear that the experiences of the past year have set the stage for new trends that are about to unfold. In this article, we’ll explore five key web3 trends that every product manager in the ecosystem should be aware of.
The year of identity
Identity – Dall·e
2024 is poised to be a crucial year for digital identity. For product managers working on services or applications that require authentication, focusing on decentralized identity management will be essential. This approach puts users in control of their data, allowing them to share only what is necessary for an application’s functionality. We can also expect a rise in the use of verifiable credentials, with Zero Knowledge proofs (ZK proofs) enabling the sharing of proof without revealing the underlying data.
The benefits of decentralized identities and verifiable credentials are significant for both end-users and organizations.
End-users gain ownership and control over their digital identities, enhancing their privacy.
For organizations, these technologies enable quick verification of information, fraud prevention, increased data security, and reduced risk of cyber attacks, as sensitive data is not stored in their systems
This web3 trend extends beyond the domain of web3 developers and organizations. Public sector advancements are also evident:
In Switzerland, Partisia Blockchain and the University of Applied Sciences and Arts Western Switzerland (HES-SO Valais-Wallis) are collaborating on a decentralized electronic identity system, focusing on privacy and individual data control. Meanwhile, China is advancing its blockchain ambitions with the RealDID initiative, aiming to create a national-level real-name decentralized identity system. These developments reflect a global move towards more secure and user-controlled digital identities If you are an Spanish speaker, i strongly recommend you this podcast from our Mighty Block series: “Descentralizando la identidad con web3”
Regulatory Compliance and Governance
Regulations – Dall·e
Regulatory aspects, especially concerning the SEC and ETFs, are becoming increasingly important in the web3 space. As the industry matures, adherence to regulatory norms and governance standards is crucial for ensuring sustainable growth and user trust. Many countries already have some regulations or guidelines for Crypto space.
Recent regulatory developments underscore this trends:
The European Union’s Market in Crypto Assets (MiCA) Regulation entered into force in June, with a final consultation on Europe-wide regulations to be published early in 2024, and member state mandates taking effect in 2025.(1)
Hong Kong released new guidelines for virtual asset trading platform operators in June 2023.(1)
Namibia passed its Virtual Assets Act in last July, with regulations pending.(1)
Last September, the New York Department of Financial Services (NYDFS) released proposed updates to its framework for token trading businesses to trade tokens and a changed framework for how it would put tokens on its “greenlist” (1)
Also in September 2023, Dubai’s Virtual Assets Regulatory Authority released regulations on virtual asset activity.(1)
For product managers in the web3 ecosystem, staying informed and compliant with these evolving policies and regulations is a must. It’s not just about creating secure experiences; it’s also about safeguarding our end-users from potential risks and ensuring our services align with this new regulatory landscape.
NFTs reloaded
Bored Ape Reload for 2024 – Dall·e
The NFT landscape in 2023 saw a slowdown, with collections like Bored Ape Yacht Club and Azuki Elementals experiencing significant drops in value. Marketplaces such as OpenSea and Blur responded to this bear market by reducing to try to maintain the interest on people and capture market share
In 2024 the expectation looks more promising, expanding NFT scope beyond just art. A key area of growth is in gaming, which, despite being in the early stages of web3 development, is increasingly integrating NFTs. These digital tokens are an essential part of gaming, providing players ownership of in-game assets, which can then be collected or traded in secondary markets.
As for projections, Blockworks suggests significant growth in the web3 gaming sector,
At least 2x growth in Web3 games overall (according to Jon Jordan’s Big Blockchain Games List, there are currently 1,037) as of Dec. 19, 2023. (2)
At least 3x growth in fully on-chain games (according to Jon Jordan’s Big Blockchain Games List, there are currently 54) as of Dec. 19, 2023. (2)
Even if this is not as evolved as gaming, other usage is traceability of physical assets. The transparent blockchain ledger effectively tracks the ownership history of an NFT, bolstering authenticity and provenance.
Consequently, NFTs stand poised to revolutionize the realm of real-world asset ownership and management. In the future, utilizing NFTs could span a wide spectrum of assets, such as art, collectibles, real estate, and even securities.
Web3 onboarding using web2 scalable solutions
Onboarding from web2 to web3 – Dall·e
To truly mainstream web3 and welcome the next billion users, it’s crucial we shift our focus towards a wider audience. Sure, in the web3 space, we’re all about privacy and security – the whole ‘not your keys, not your assets’ mindset. But let’s be real: this appeals more to the early birds and tech enthusiasts who are willing to dive deep.
To grow our ecosystem and make it robust, our game plan should include attracting people, guiding them step-by-step, and gradually unveiling the myriad possibilities of web3.
This year is going to be all about seamless onboarding. As product managers, we need to analyze the onboarding process. How can we borrow and adapt what worked in web2 to make web3’s decentralization more gradual and user-friendly? Our goal here is to ensure our users feel at ease and build confidence in navigating through this new tech landscape.
Blockchain meets AI?
The Blockchain meets the AI – Dall·e
2023 was, without doubt, the year of AI. When this phenomenon appeared in our lives, we started to think about how to collaborate with the decentralized ecosystem. Is blockchain and AI something that naturally is going to work together? According to Vitalik, in the Podcast La Ultima Frontera, “…A lot of people want to be a connection and it’s sometimes hard to find a really big and deep one. There are definitely some smaller ones, for example ZKML (Zero Knowledge Machine Learning)”
Does this mean that as Product Manager we don’t need to worry about this? Well, actually the IA is an incredible tool to help us to improve our products, accelerating the research, helping to brainstorm, or as a simple assistant in our daily operative tasks. So even if there is not an immediate correlation between web3 and AI, is definitely one between what we can achieve using this tool to enhance the ecosystem with our products.
Web3 trends Takeaways
In summary, 2024 for web3 Product Managers is about embracing innovation responsibly, focusing on user empowerment, navigating the evolving regulatory environment, broadening the utility of NFTs, simplifying onboarding, and exploring the synergies between AI and blockchain; to create a safer, more inclusive, and vibrant web3 ecosystem.
Organizations spend roughly 15% of their time on meetings, with surveys showing that 71% of those meetings are considered unproductive. Unproductive meetings cost around 37 billion dollars per year, and 24 billion dollars are lost in work hours. One reason programmers dislike meetings so much is that they’re on a different type of schedule from other people. Meetings cost them even more. When you’re operating on the maker’s schedule, meetings are a disaster. A single meeting can blow a whole afternoon, by breaking it into two pieces each too small to do anything hard in. Plus you have to remember to go to the meeting.Understanding this made us realize that we needed a new way of managing our teams’ time at Mighty Block.
So, we used the following questions as a guideline to create a time management for our software developers team framework:
How do I reach my peak productivity?
Is multitasking effective?
How to avoid distractions and manage time efficiently?
What’s the best way to organize my schedule?
What to do with goal-less meetings?
How to handle meetings where I see no value?
How to prevent distractions and stay focused?
Limitations of body & mind
Before diving into the framework we designed, it’s important to understand how our mind works, what’s possible and what’s not.
This section is important because it’s common to read, specially in Twitter/X, about the Hustle Culture, the mentality that one must work all day every day in pursuit of their professional goals. However, we must acknowledge that when we are not connected to our body and emotions, we are at risk of burning out.
Is multitasking effective?
Multitasking reduces cognitive capacity
What our brains are doing when we multitask is rapidly switching between tasks. This constant switching taxes our brain. It essentially tires it out and makes it less efficient. This particularly affects our ability to focus our attention in general, even when we are not multitasking.
Multitasking makes us more distractible and prone to errors. For example, individuals rated as high media multitaskers (number of hours using multiple devices simultaneously, such as watching TV while also using a smart phone or tablet) showed poorer attention on cognitive tasks.
Those individuals had to use more of their brain to complete the same task compared to low multitaskers. When you need to recruit more of your brain to complete a task, it means your brain is working less efficiently.
Multitasking: Why Your Brain Can’t Do It and What You Should Do About It – MIT
Daily cognitive budget
As Sam Altman explains in this interview, there is a daily cognitive budget of 8 high quality hours we can use before the output quality starts to decline. Put in another way: no human being can spend more than 8 hours in a day working at a high performance.
Once we have improved our performance related to both body and mind, we can begin to think strategically about how we manage our time.
This time management framework for software developers was created based on reading, iterations, and collective experiences of the team (although we think it’s useful for any modern worker).
1. Get the important things done
There should never be more than 2 mission-critical items to complete each day.
Do them separately from start to finish without distraction
Extreme focus blocks (minimum 2 hours)
2. Don’t waste time
In this modern age, we are bombarded all day long, specially from Monday to Friday, by companies using multiple channels to capture our attention. Additionally, content is getting more and more addicting and our dopamine system is being hacked.
Take a look at this list:
Checking email in real-time
Receiving WhatsApp, Signal, Telegram, SMS notifications from groups, family, co-workers and sales representatives
“Breaking News” that seem to be important (99% of the time they are not)
TikTok videos
Tweeter drama
Instagram stories
This list is endless…
3. Make lots of lists
We highly recommend making lists. Lists keep you focused, and you can review them periodically, reminding yourself of what’s important (and what’s not). They free up space in your mind—fewer things to memorize.
Of the 3 tasks I need to finish today
Of my goals for the quarter
Of my goals for the year
Of the books I want to read this year
Of the goals with my partner
Lists keep you focused; you can review them anytime.
Additional tip! Visual Setup
The browser tabs are your best friend.
When focused on a Google Doc, keep it open, collapse the rest into groups.
While in a Goole Meet, leave it open, collapse the rest.
While coding, maximize the IDE, minimize the rest.
Disable desktop notifications for Slack, Email, WhatsApp.
Close WhatsApp web when focused on Meet, Google Doc, Coding.
Meetings: Do Them Right or Don’t Do Them at All
If within your role, you still have to organize or attend meetings, there are some rules that can help make them more efficient and productive. However, it’s important that you adhere to and encourage the team to follow them as well.
Meetings are a usually a bug.
If you properly root cause them, you will find a trust issue, a clarity issue, or a missing API. Meetings can paper over these, but it’s much better to fix root cause.
L10 meeting: an efficient format for management roles
As part of the Entrepreneurial Operating System® (EOS®), the Level 10 Meeting (L10) creates a standard structure for productive meetings. No, really. EOS lays out a template for team meetings to focus on the most important things each week without the nonsense.
On a scale of 1 to 10, most people would rank their current meetings at a 4 or 5. In some cases, even that’s being generous. In a Level 10 Meeting, attendees focus on the most important topics to spot issues before they become bigger problems. But that doesn’t come naturally (as evidenced by the prevalence of crappy meetings). To get there, companies Running on EOS™ use the standardized L10 agenda.
What makes a L10 meeting so effective?
Because Level 10 meetings operate at a repeatable, strategic level, they provide a solid framework covering material that matters. Opinions and politicking have no place in a meeting that focuses strictly on objectives and metrics. Teams also learn to minimize tangents and sidebar conversations to cover only what matters.
In addition, the same two individuals (or their proxies during vacations) serve as the facilitator and the scribe for every meeting. This removes the question, “Who’s leading this meeting?” The same goes for the scribe role: Everyone already knows who’s taking notes. Removing this ambiguity saves precious minutes discussing and agreeing to roles in each meeting.
In this article we want to share with you an introductory guide about ERC20 tokens
What is a token?
A thing serving as a visible or tangible representation of a fact, quality, feeling, etc. It also has a value that is associated with its context.
Types
Non fungible: Non-fungible means that something is unique and can’t be replaced. By contrast, physical money and cryptocurrencies are fungible, which means that they can be exchanged for another object with the same attributes.
Fungible: Replaceable by another identical item; mutual interchangeable.
ERC20 structure
Standard representation for fungible tokens.
Identified by Name and Symbol, allows to transfer from your account balance and approve other accounts to spend in behalf of your account.
Interoperability: Most decentralized applications support standards, this makes our token able to work in these scenarios.
No Vulnerability: Using tested and verified implementations means we avoid making mistakes in the implementation of tokens.
Easier: It makes it easy to integrate tokens into your contracts, so you only have to worry about calling functions.
Uses
Stable coins (DAI, USDT)
Fans Tokens (AFA Token, PSG Token)
Governance (Maker, Uniswap)
Play to earn (A)
Other tokens:
ERC1155: Multitoken standard
ERC777: add hooks to the transfers.
ERC677: allows to customize the callback function for the transfer.
ERC223: improves the security of the token transactions.
The main difference btw ERC20 and native tokens:
A native currency has its own issuance and transfer rules tied to the network implementation. On the other hand, tokens allow the issuance and transfer rules to be customized, in addition to representing assets that are not necessarily related to finances, taking advantage of all the security and decentralization of the blockchain.
You can visit this video by @sebaleoperez with the ERC20 presentation in EthBogota 2022.
When you start your career as a web3 developer, you may need a guide on the main tools. At Mighty Block, we’ve put together this Web3 Tech Stack, which can be a good option to get started. What do you think? Would you add anything? Would you remove anything?
Welcome to our series of introduction to Web3 blog articles. Web3 is the cutting-edge realm of the internet that’s reshaping the way we interact, transact, and innovate online.
If you’re an enthusiast, a curious newcomer, or a seasoned developer looking to dive into this world, our guide to Web3 is designed to provide you with a foundational understanding and a roadmap for your journey.
This is the first article, specially designed like a beginners guide to Web3. In upcoming editions, we will bring more advanced content 🔥
🛤️ Introduction to Blockchain Get started with the basics as we unravel the key concepts behind blockchain technology, the foundational pillar of Web3, and explore how it’s transforming the digital landscape.
📘Don’t let the terminology overwhelm you. Our glossary provides a handy reference to decipher the jargon and acronyms commonly used in the Web3 ecosystem. Because the best way of explaining Web3 is learning its vocabulary.
If you’re here to gain a foundational understanding of Web3 or to explore specific aspects in depth, our blog series aims to be your guide through this exciting and transformative digital landscape. Join us on this journey of exploration and discovery into the world of Web3.
🚀 Join us on a journey from the traditional Web 2.0 era to the decentralized and user-centric Web 3.0 landscape, understanding the evolution and the reasons driving this revolutionary shift.
🌐 Delve into the world of Ethereum, one of the most influential blockchain platforms, and discover its significance in the development of decentralized applications and smart contracts. Web3 is blockchain based, and Ethereum is an authority to listen to.
💰Uncover the mysteries of Bitcoin, the pioneer of cryptocurrencies, and learn about its impact on the financial and technological spheres. Bitcoin is in your crypto wallet and additionally through many aspects of life today.
🔐 Explore the critical aspect of security in the Web 3.0 ecosystem, gaining insights into best practices, vulnerabilities, and strategies to safeguard your digital assets. You have to learn how to keep safe your personal data.
📊 Discover the unique challenges and strategies involved in managing Web3 projects, from ideation to execution, and learn how to navigate this dynamic landscape.
🛠️ For aspiring Web3 developers, we break down the essential tools, languages, and frameworks needed to create decentralized applications and smart contracts. Artificial intelligence plays a central role in this process.
One of the most common questions I get is, What is the difference between web2 and web3? What is Mighty Block doing to onboard users to web3 ? What is the road to web3?
As an introduction I gather information and wrote the following summary:
Web2 and Web3 are two different generations of the World Wide Web. Web2 is characterized by a stronger emphasis on user participation, collaboration, and sharing. In contrast, Web3 is characterized by a greater emphasis on decentralization, user control, and the integration of new technologies like blockchain and artificial intelligence.
Web2 has had a profound impact on the way we use the internet. It has made the web more interactive, collaborative and social. This has led to a wider range of possibilities for how we can use the web to learn, communicate, and share information.
Web3 is still in its early stages of development, but it has the potential to revolutionize the way we use the internet. It could make the internet more open, transparent, and democratic. It could also lead to the development of new and innovative applications that we can’t even imagine today.
So, what is the road to web3 from web2?
Let’s start with, what is web2
The term “web2” describes the second generation of the World Wide Web, characterized by a stronger emphasis on user participation, collaboration, and sharing. Web2 websites enable users to interact with both each other and the website content in a more meaningful way compared to earlier web technologies.
Some of the key features of web2 websites include:
User-generated content: Websites allow users to create and share their own content, such as blog posts, photos, and videos. Users can share this content with other users on the website, or they can make it public for anyone to see.
Collaboration: Websites allow users to collaborate with each other on projects and tasks. Features such as forums, wikis, and social media enable this.
Social networking: Websites allow users to connect with each other and form online communities. Users can accomplish this through features like social media, user profiles, and friend lists.
Some of the most popular web2 websites include:
YouTube: A video-sharing website where users can watch, upload, and share videos.
Facebook: A social networking website where users can connect with friends and family, share photos and videos, and join groups.
Twitter: A microblogging platform where users can post short messages, or “tweets,” to their followers.
Wikipedia: Volunteers edit a free online encyclopedia.
Google Docs: A cloud-based word processing application that allows users to collaborate on documents in real time.
Then, What is web3
Web3 represents the third generation of the World Wide Web, marked by a stronger emphasis on decentralization, user empowerment, and the incorporation of innovative technologies like blockchain and artificial intelligence.
Web3 is still in its early stages of development, but it has the potential to revolutionize the way we use the internet. Some of the key features of web3 include:
Decentralization: Decentralized networks build applications, which implies that no single entity controls them. This makes them more resistant to censorship and gives users more control over their data.
User control: In web3 applications, users have the capability to own their personal data and exercise control over its usage. This is in contrast to web2 applications, where users typically give up control of their data to the companies that provide the services.
New technologies: Applications use new technologies such as blockchain and artificial intelligence to provide new and innovative features. For example, blockchain can be used to create secure and tamper-proof records, while artificial intelligence can be used to personalize user experiences.
Web3 has the potential to make the internet more open, transparent, and democratic. It could also lead to the development of new and innovative applications that we can’t even imagine today.
Here are some examples of web3 applications:
Decentralized finance (DeFi): DeFi applications allow users to access financial services without the need for a central authority. For example, users can lend and borrow money, trade cryptocurrencies, and earn interest on their deposits without the need for a bank. The smart contracts have a principal role here.
Non-fungible tokens (NFTs): are digital assets characterized by their uniqueness and inability to be replaced. They serve as representations for a wide range of items, including artwork and in-game assets. NFTs are securely stored on the blockchain, making them resistant to tampering and ensuring their security.
The metaverse: Web3 developers are building the metaverse to allow users to interact with each other and with digital content in a more immersive way.
Advantages and Disadvantages
Web2
Advantages:
User-generated content: web2 websites allow users to create and share their own content, such as blog posts, photos, and videos. Users can share this content with other users on the website, or they can make it public for anyone to see.
Collaboration: web2 websites allow users to collaborate with each other on projects and tasks. Users can do this through features such as forums, wikis, and social media platforms.
Social networking: web2 websites allow users to connect with each other and form online communities. Users can do this by using features such as social media, user profiles, and friend lists.
Disadvantages:
Data privacy: Web2 websites often collect users’ data, which can be used for advertising or other purposes. This can raise concerns about data privacy.
Security: web2 websites can be vulnerable to security attacks, which can lead to data breaches or other problems.
Censorship: web2 websites can be censored by governments or other organizations. This can limit the free flow of information.
Web3
Advantages:
Decentralization: Web3 developers build web3 applications on decentralized networks so that they are not controlled by any single entity. This makes them more resistant to censorship and gives users more control over their data.
User control: web3 applications allow users to own their data and control how it is used. This is in contrast to web2 applications, where users typically give up control of their data to the companies that provide the services.
New technologies: web3 applications use new technologies such as blockchain and artificial intelligence to provide new and innovative features. For example, blockchain can be used to create secure and tamper-proof records, while artificial intelligence can be used to personalize user experiences.
Disadvantages:
Early stage: web3 is still in its early stages of development, which means that there are a limited number of applications available.
Complexity: web3 applications can be complex to internet users, which could limit their adoption.
Security: web3 applications are still relatively new, which means that they may be vulnerable to security attacks. Even if they are blockchain based.
Feature
web2
web3
User-generated content
Yes
Yes
Collaboration
Yes
Yes
Social networking
Yes
Yes
Decentralization
No
Yes
User control
No
Yes
New technologies
No
Yes
Early stage
No
Yes
Complexity
No
Yes
Security
No
Yes
Overall, web3 has the potential to be a more open, transparent, and democratic internet. However, it is still in its early stages of development, and there are a number of challenges that need to be addressed before it can reach its full potential.
What is the road to web3, what is needed?
There are a number of things that need to happen to build the road to web3, and in order to accelerate the process of moving from web2 to web3. These include:
Increased adoption of decentralized technologies: web3 is built on decentralized technologies, such as blockchain and peer-to-peer networks. Users and developers need to adopt these technologies in order for web3 to become mainstream.
Improved user experience: web3 applications can be complex and difficult to use. Developers need to make these applications easier to use to attract a wider audience.
Increased investment: web3 development is still in its early stages, and it needs investment in order to grow. This investment can come from governments, businesses, and individuals.
If these things happen, then the road to web3 will accelerate. web3 has the potential to revolutionize the way we use the internet, and it is important that we do everything we can to make it a reality.
Here are some additional things that could help accelerate the process of moving from web2 to web3:
Government support: Governments could support the development of web3 by providing funding for research and development, and by creating a regulatory environment that is favorable to decentralized technologies.
Industry collaboration: Businesses and organizations could collaborate to develop and promote web3 applications. This could help to create a critical mass of users and developers, which would make it easier for web3 to gain traction.
Public education: The public needs to be educated about the benefits of web3. This could help to create demand for web3 applications, and it could also help to address some of the concerns that people have about decentralized technologies.
The move from web2 to web3 is a complex process, but it is one that has the potential to make the internet more open, transparent, and democratic. By taking the steps outlined above, we can help to accelerate this process and make web3 a reality.
Challenges that need to be addressed before web3 can reach its full potential:
Security: web3 applications are still relatively new, and they may be vulnerable to security attacks.
Complexity: web3 applications can be complex and difficult to use. This could limit their adoption by a wider audience.
Regulation: Governments are still trying to figure out how to regulate web3 applications. This could slow down the adoption of web3.
Despite these challenges, web3 has the potential to revolutionize the way we use the internet. By addressing the challenges that need to be addressed, we can help to make web3 a reality.
Reasons why to move from web2 to web3:
Web3 has the potential to revolutionize the way we use the internet. Unlike web2, which is controlled by a small number of companies, web3 is decentralized, meaning that no single entity controls it. This decentralization can prevent censorship, address data privacy concerns, and promote innovation. This can lead to a more open, transparent, and democratic internet.
There is a growing demand for web3 solutions. The growing awareness of the benefits of web3 is leading to an increased demand for products and services built on web3 technologies. Several factors are driving this demand, including the surge in cryptocurrency usage, the expansion of the decentralized finance (DeFi) market, and the rising popularity of non-fungible tokens (NFTs).
The web3 market is still in its early stages of development. This means that there is a lot of opportunity to get involved and make a significant impact. The web3 market is also very capital-intensive, meaning that there is a lot of money available to fund startups that are working on web3 solutions.
At Mighty Block our focus is to help onboard the next billion users to web3 and we are building the road to web3 to do so.
Let me know if this summary has helped you understand the differences between web2 and web3 and has brought you one step closer to travel the road to web3 !
We are always looking for Web3 talent !
Mighty Block is one of the partners of Forte, a platform to enable game publishers to easily integrate blockchain technologies into their games. We believe blockchain will enable new economic and creative opportunities for gamers around the world and have assembled a team of proven veterans from across the industry (Kabam, Unity, GarageGames, ngmoco, Twitch, Disney), as well as a $100M developer fund & $725M funding, to help make it happen. That’s where you come into play.
Feel free to browse all our current open job opportunities in the following link 👇
This article was written by Boro and Uri, Mighty Block blockchain developers, You will find in it the path to becoming a Smart Contract Developer!
Stepping into the digital realm’s dynamic frontier, where innovation intertwines with decentralization, is the path of a smart contract developer. In a world shifting from Web 2.0 to Web 3.0, our role has gained unprecedented prominence.
Imagine writing code that represents unalterable agreements and cutting out intermediaries – that’s the magic of smart contracts. This article is your gateway to understanding what it takes to become a master of this blockchain-powered craft. From unraveling the intricacies of different programming languages to illuminating the deployment process on diverse blockchain platforms, we’ll embark on a journey that unveils the profound evolution from lines of code to immutable digital contracts.
What is a smart contract?
At its core, a smart contract is a decentralized digital agreement that runs on a blockchain. Imagine a traditional contract that outlines the terms and conditions of a transaction or agreement. And now envision this contract automated, enforced, and executed without needing intermediaries. This is where smart contracts shine.
Structurally, code composes a smart contract and defines the rules, logic, and conditions of an agreement. Think of it as executing a virtual ‘if-then’ statement: if certain pre-defined conditions meet, then the contract executes a specific set of actions. This structure ensures the transactions to be tamper-proof, transparent, and irreversible once executed on the blockchain.
Why web3
In the evolution of the internet, we’ve moved from the static websites of Web 1.0 to the interactive platforms of Web 2.0. The transition to Web 2.0 brought us social media, online collaboration, and user-generated content, all centralized on platforms owned by big tech companies.
However, the model came with drawbacks. User data privacy concerns and the centralized control of information became apparent as platforms monetized user data and exercised content moderation power.
This sets the stage for Web 3.0, a decentralized paradigm shift. Web 3.0 leverages blockchain technology to distribute control, data ownership, and transactions across a network of participants. This means that users own more of their data and identities, and execute transactions in a transparent and secure manner without intermediaries.
As data breaches, content censorship, and privacy issues continue to plague the digital landscape, the move towards Web 3.0 gains momentum. Its emphasis on user empowerment, privacy, and open protocols is driving innovation. With the potential to redefine how we interact online, from social networking to financial transactions.
Main smart contract structure
Let’s say we want to create an ERC20, the MightyBlockCoin that goes by the ticker MBC, our contract should keep track of MBC wallet balances, allow to transfer between wallets, amongst other functionalities. This is what the structure of such a contract would look like:
Constructor: This piece of code executes before the deployment finishes and typically sets some initial data on the storage of the contract. Since deployment is the only time this code runs, the system uses and tosses it, and does not actually store it on the chain. For MightyBlockCoin we want to limit wallets to a maximum of 10 MBC per transfer. Our constructor will set maxTransferAmount to 10.
Storage definition: These are your persisting variables, where you will keep useful information for the usage of the contract. You have the well-known integers, strings and bools and also complex data structures that go by “structs” on Solidity, but the most useful ones are mappings that basically work as non-iterable dictionaries with very fast access by key. Our ERC20 will need to keep track of balances, for such purpose there will be a mapping(address => uint256) this means a dictionary where the wallet addresses are the keys and their balances are the values, we also need to store the maxTransferAmount that we set on the constructor.
View methods: Allow the user to access a piece of information without modifying the storage-state and incur no gas cost, thereby not making all transactions equal.You can try to restrict access to view methods, but it’s generally a bad practice to do so and the barrier is easily avoidable by skilled inquirers. In our example, we would have a getBalance method where walletAddress is the parameter and we return the MBC balance of such wallet.
Next steps of a smart contract structure
Storage-modifying methods: Methods for security, access, consistency, and permission checks, which allow storage to mutate, form the backbone of a smart contract. When these checks pass, the system performs the storage altering actions. The transfer function for MBC validates that the sender has enough balance and the transfer amount is lower (or equal) than maxTransferAmount. Lastly it stores the new balances for both the sender and the receiver.
Events: Transactions on the blockchain do not provide any response other than the fact that it executed. We emit personalized events defined on the contract to keep some type of log of what happened. Events come with a name and parameters, they are the basic tool that most platforms use to keep track of what’s going on. For an MBC transfer we would want a Transfer event with parameters sender, receiver and transfer amount.
EVM vs NO EVM + testing
Venturing further into the realm of developing smart contracts, it’s crucial to grasp the landscape of blockchain ecosystems and programming languages that power them.
We can broadly categorize blockchain platforms into those that utilize the Ethereum Virtual Machine (EVM) and those that don’t. EVM-based blockchains, like Ethereum blockchain itself, offer a standardized execution environment for smart contracts, ensuring consistency across different nodes. On the other hand, non-EVM blockchains networks, such as Algorand and Solana, employ their own unique execution environments optimized for specific purposes.
When it comes to programming languages for a smart contract developer, Solidity stands tall as the primary choice for Ethereum-based contracts. It is a statically-typed language specifically with a design for writing smart contracts. That is the importance of Solidity smart contract development.
Vyper is another language for Ethereum network that focuses on security and simplicity, making it a preferred option for scenarios where code clarity is paramount. Beyond Ethereum, Rust has gained attention for its use in the Solana blockchain due to its efficiency and safety features.
Testing and developing smart contracts
But programming languages are just one piece of the puzzle. Testing and development environments play a crucial role in ensuring the reliability of a simple smart contracts. Tools like Hardhat, a JavaScript-based development environment, and Brownie, its Python counterpart, provide testing, deployment and debugging capabilities.
They enable developers to simulate blockchain environments locally, helping to catch errors and security vulnerabilities before deployment. These tools offer sophisticated testing frameworks and integration with popular testing libraries, enabling developers to write comprehensive test suites to ensure contract functionality and security.
Navigating the landscape for smart contract developer involves understanding the nuances of EVM and non-EVM blockchains, choosing the right programming language for the job, and utilizing robust testing frameworks. As the ecosystem evolves, developers need to stay adaptable, continually learning and adapting their skills to keep up with the dynamic world of blockchain technology.
New challenges in web3
Testing
Our experience with testing Solidity has been quite challenging, for our particular use case and technology stack, we decided that Python + Brownie suited us best.
The reality of the matter is that Brownie emulates a real environment locally.This means that deploying smart contracts is necessary for sending transactions against them. Since you can only interact with the public/external methods, the ability to create unit tests is limited, as calling internal or private methods is not possible.
Deployment
Deploying smart contracts can be even more challenging than testing. Usually developers and owners are different people, this means that a developer might not have access to the private key, which in turn means that someone else, following the dev’s lead, has to send the transaction with the owner wallet.
Since smart contracts code are immutable by design, each deployment is a big deal. For that reason we work to ensure that the experience is secure, smooth and seamless as there are no rollbacks. In practical terms, for every deployment that we schedule, we plan ahead and create a checklist with the step by step guide of what to do, which commands to run and in what given order.
Security
The mix of the monetary value stored inside a contract and its immutability makes thinking about security crucial ahead of time, as rules cannot change on the fly. On top of that, every transaction is independent, there is no such thing as a session, it must check all possible scenarios every time to ensure that only the intended usage is the allowed usage.
Any open exploits serve as entry points for hackers and malicious actors, and even when detected, the issue remains unfixable since altering the contract is not possible.
Technical limitations of Solidity
There are no floating point numbers, this leads to using integers to store numbers with decimal places, making it sometimes confusing to know the number’s scale.
Another impractical limitation is Solidity’s inability to keep complex data structures in storage, requiring the developer to find a workaround to store the data in a more complex but Solidity-friendly way.
Thirdly, an arch enemy of the developer is Solidity’s impossibility to handle dynamic size arrays. For example, when searching all elements that meet certain condition, the data must be looped through once to determine the array’s size and then one extra time to populate said array with the matching elements.
Last in this list but definitely not least is the infamous “stack too deep” error, which appears when too many variables are being used in the context of one given function, forcing workarounds to remove variables or reorganize code into separate smaller functions until the error is gone.
Liveops
Once the contract has been deployed, all types of issues may arise, the blockchain scanner, blockchain query tools amongst other, are essential tools to master to be able to handle such scenarios. This usually entails following transactions around and reading logs/events until the root cause unravels.
Paradigm shifts
It’s quite common to encounter accesibility modifiers on functions such as public and private when working on a Web 2.0 project. In Solidity, 2 other visibilities must be taken into account including external and internal, security concerns of each option should be considered when using them.
The next big paradigm shift comes in the form of storage types. Storage is used in situations where memory isn’t best suited and viceversa, mastering the usage of storage types is essential as they are mandatory for most variable declarations. Finally, units are stored in different scales, most values might need some multiplication or division by 10**18 to account for the difference between wei and eth values.
External resources
Managing third party information requires workarounds as there are no APIs you can call or external resources you can access easily. Calling other contracts requires you to store their address and importing their interface in order to interact with them. The challenge of getting external information becomes substantial and oracles come to fill that void. Oracles are paid services that offer on-chain information that is not easily accesible otherwise, they represent to web3 what public APIs do for web2.
Language caveats
How would you sort an array of elements in Java? Well, you would simply call Array.sort(), that’s not an option in Solidity. Usually builtin methods entail a trade-off between performance and readability. Solidity is not willing to trade performance off, since performance is gas and gas is money. There are options like OpenZeppelin, which provides a library of frequently used methods to make the code more readable while still performing best practices. Nonetheless, implementing the methods for this basic operations still tends to be the best option. Other missing methods in Solidity are: min, max, filter, removeAt, foreach, etc.
Conclusions from a smart contract developer
As we conclude this epic journey through the realm of a smart contract developer, it’s evident that the digital landscape is undergoing a transformation unlike any other. The shift from Web 2.0 to Web 3.0 signifies a pivotal moment where decentralization, security, and user empowerment take center stage.
In the world of smart contracts, we’ve delved deep into their structure, the intricate web of challenges and opportunities that await the intrepid developer. Testing and deployment have proved to be crucibles where code is refined, ensuring the reliability of smart contracts. Security remains paramount, as every line of code written in the blockchain is etched in history, unalterable by design. Technical limitations and paradigm shifts have been embraced as challenges, not obstacles, by the developers pioneering this new era.
In this brave new world, we’ve witnessed the rise of oracles, the intricacies of storage types, and the relentless pursuit of performance. The absence of built-in methods has sparked creativity, making the Solidity developer a master of their craft.
Through it all, we’ve come to realize that Web 3.0 is not just a technological shift; it’s a philosophical one. It champions the ideals of decentralization, data sovereignty, and transparency. As the blockchain ecosystem continues to evolve, adaptability and continuous learning become the armor of the smart contract developer.
We are waiting for your talent like smart contract developer
So, fellow adventurers in the digital realm, take these learnings with you as you embark on your journey into the ever-expanding universe of smart contracts. From the humble lines of code to the immutable contracts etched in the blockchain, you are the architects of a decentralized future, where trust is forged in code and the magic of Web 3.0 becomes a reality.
As the digital frontier beckons, remember, you are the pioneers, the masters of blockchain’s arcane arts, and the guardians of a more equitable and decentralized digital world. The future awaits your code.
We are always looking for Web3 talent !
Mighty Block is one of the partners of Forte, a platform to enable game publishers to easily integrate blockchain technologies into their games. We believe blockchain will enable new economic and creative opportunities for gamers around the world and have assembled a team of proven veterans from across the industry (Kabam, Unity, GarageGames, ngmoco, Twitch, Disney), as well as a $100M developer fund & $725M funding, to help make it happen. That’s where you come into play.
Feel free to browse all our current open job opportunities in the following link 👇
