The consensus layer, often referred to as Layer1, originally was responsible for validating and ordering transactions in the block. Recently, some projects have proposed ways to separate computation and data availability capacities from the consensus layer making it dedicated to data authentication. However, the requirement of composability among Defi smart contracts still calls for scalability of the transaction processing of the consensus layer.
Gaming & NFT
Crypto games have integrated blockchain functionality to not only mint in-game items as NFTs but furthermore, introduce vibrant financial systems to build the player economy. Player economy powered by Defi protocols amplifies the playability of the game, extends the playtime, and provides a new revenue model to the game developers by collecting commissions in the trades.
Middleware is loosely defined as anything that sits between the application and the blockchain, which includes oracles, indexers, CDN, rendering, staking, encryption, routing and etc. The decentralization and scalability of the middleware are also critical in offering a smooth Web3 service to the users.
Open finance is made of Defi protocols that can be freely accessed and composed by anyone. It allows users to manage their assets without leaving the security of their non-custodian wallets, without KYC and AML, without a license, or other barriers to entry. The open financial system massively improves capital efficiency, aggregating liquidity, and accelerates innovation through compounding Defi protocols to higher-order applications.
Integration of blockchain to social media has been on the rise by third-party extensions. These extensions offer Web3 services such as sending and receiving crypto assets, encrypting messages and displaying NFTs in traditional social media such as Twitter and Facebook. Crypto native applications like Metamask and Debank may also add social elements as their user base grows.