The internet has undergone several advancements since its official debut in the early 80s; what started as a static experience for web users is today an interactive ecosystem where people can communicate and share ideas regardless of their geolocation. Even better, we are now moving to the decentralized web era or popularly known as Web 3.0.
So, what is this Web 3.0 concept? First coined by Polkadot’s Founder Gavin Wood, Web 3.0 is the latest iteration of the internet. Unlike its predecessor (Web 2.0), the decentralized web is designed to give back control to the masses. As it stands, most Web 3.0 innovations fall within the nascent crypto ecosystem.
While this new internet version is fast gaining popularity, it faces some native challenges, including limited scaling solutions and interoperability features. Crypto natives often find it hard to transfer assets across different blockchain networks, not to mention that the underlying smart contract infrastructure varies from one ecosystem to another.
Luckily, there are some upcoming cross-chain solutions that are setting the stage for a more interoperable Web 3.0 economy. We recently held an interview with Analog Founder Victor Young, who shared some insights on the developments in Web 3.0 and why interoperability will be a significant game-changer.
Here is what the long-term startup entrepreneur had to say about the future of Web 3.0 and Analog’s value proposition in the decentralized web.
Q: Hi Victor, thank you for taking time to interview with us. I understand that you have been in the startup ecosystem for several years. Could you share what triggered the pivot to Web 3.0 innovations?
A: Yes, I’ve indeed been in the startup ecosystem for several years, having first-hand experience with challenges and the success factors that upcoming companies—especially in the web3 space—face. But it’s not just the startups that I’ve been involved with. I’m also a computer scientist and Blockchain engineer, having built several applications in both web2 and web3. While building algo-trading bots in DeFi, I stumbled upon a problem that gave birth to Analog.
What if we could have time-driven smart contracts in algo-trading platforms to trigger actions for efficient signal trading automatically? After conducting extensive research and sharing my thoughts with other colleagues, I realized that validated event data is crucial for algo-trading platforms and other DeFi and metaverse protocols.
Besides fixing these platforms with validated event data, we noted that the Blockchain sector is in dire need of interoperation. The problem with many current platforms is they sacrifice at least one of the key properties of security, decentralization, and scalability. Together with interoperation, these problems made us select the proof-of-time (PoT) as the current solution for the sector post-2020.
Q: Analog is currently building a Layer-0 network with interoperability features. How will this add value to the growing Web 3.0 economy?
A: As an omnichain interoperable platform, Analog enables all parties i.e., platform builders, DApp developers, and users to capture value for themselves. Here’s how the platform is beneficial to various stakeholders:
-Platform builders: They can easily plug in their chains to all other networks. They only need to set up a threshold account to plug into these chains.
-DApp builders: They can host their DApps anywhere and communicate with other applications on different platforms via the Analog’s decentralized API.
-Users: Users can interact with all DApps across the entire Blockchain ecosystem directly from their Analog wallets.
Q: Can you shed more light on the Proof-of-Time (PoT) consensus and Validated Event Data approach. Is it better than Bitcoin’s PoW and Ethereum’s PoS consensus?
A; The biggest challenges that we see with current interoperable solutions (bridges) have got to do with centralization and associated insecurities, especially PoA- and PoS-based networks. In our view, a truly decentralized consensus is the single most essential attribute of any interoperability process.
Unlike these solutions, we’ve built the novel consensus mechanism called proof-of-time (PoT) from the ground up, using the ranking score as a variable to determine who becomes a validator. Through PoT, we’re creating a consensus mechanism where all users have fair opportunities to participate in the interoperability consensus on our network, as opposed to typical PoS- or PoA-based bridges that have high barriers to entry. We’ve also incorporated threshold cryptography with very high thresholds where a group of tesseracts partially signs the fetched event data.
Q: As you have mentioned, the DeFi and NFT market is largely fragmented. What are some of the native use cases provided by Analog to solve this challenge?
A: Great question. Some of the use cases that we want to attack immediately include a Multi-chain DEX, Multichain yield aggregators, Universal wallet, Cross-chain NFT swaps and many more.
Q: Being a Web 3.0 project, does Analog feature a governance token? If so, what are the tokenomics and value proposition to the community?
A: Yes. We have the $ANLOG coin as the utility token which powers all the transactions on the platform, including staking mechanisms, payment structures for the event data marketplace, and other incentives for tesseracts and time nodes. Decentralization is an underlying premise that ignited the creation of Blockchain.
We believe that $ANLOG token holders should be the ultimate decision-makers on matters such as determining the block size, reward scheme, voting, and other decisions. That is why our model of governance hinges on expressive representation.
The network will allow $ANLOG token holders to vote directly or delegate their voting power to other representatives. Our primary goal is to ensure that majority’s decisions command the network.
Q: Lastly, is there a possibility of integrating Web 3.0 with traditional industries that rely on the verification of large data sets?
A: Yes. Besides cross-chain applications, our decentralized event data marketplace will allow legacy platforms to consume validated event data—submitted by publishers and validated by time nodes—in an open and transparent process.
Following the insights shared in this interview, it is a no-brainer that Web 3.0 is here to stay. That said, innovators need to be ahead of the game by creating interoperability solutions. This will not create a one umbrella market but open up more opportunities for stakeholders to participate in the decentralized web.
While it may take some time to gain mainstream adoption, previous internet trends have taught us not to fade the latest technologies; in this case, blockchain is a novel tech that is gradually earning a place in modern-day markets.