One of the most significant developments of this generation has been the introduction of Web 3.0. It is a next-generation internet where the data will be decentralized and Web 3.0 will run on a token-based economy. While it may sound like a simple iteration of Web 2, the architecture of the apps running on Web 3 is drastically different from that of Web 2. That is what makes cryptocurrency Exchange Development On Web3 different from a regular financial app on Web 2.0.
Before I try to explain Web 3 exchange development and how it’s architecturally different from Web 2, let me briefly explain Web 2 application architecture. To keep it simple, I am breaking down the architecture of a Web 2 financial application development into 3 simple phases:
Cryptocurrency Exchange Development On Web3 eliminates the need for a middleman. That means unlike Web 2.0, there is no centralized database that stores the state of the application. Also, there is no centralized web server where the backend logic will reside. The question arises then where and how does a Web 3 dApp maintain its state or user data and transactions?
Web 3 exchange leverages blockchain that maintains the state of the application on decentralized anonymous nodes on the internet. Blockchain then uses its consensus protocol to define how the state can transition. As blockchain uses a decentralized network, the state of a Web 3 exchange is not controlled by a single entity. In fact, every node collectively maintains the network on which a Web 3 exchange operates. Now, what about the backend logic?
As a Web 3 exchange development services company we know that blockchain drives the backend of a Web 3 exchange. Actually, the backend logic is written as smart contracts that define the logic of the exchange operations. These smart contracts are then deployed onto a decentralized state machine or blockchain.
Now, let’s dive in a little deeper:
Web 3 exchange developers generally chose to build dapps on Ethereum blockchain because:
Most people spend months figuring out how Web 3.0 exchange development differs from Web 2 app development. I hope this article saved you some time to get answers to this very vital question and that you are ready to start Cryptocurrency Exchange Development On Web3. As always, if you have any questions, get in touch with Antier’s blockchain development experts.
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