Blockchain and web 3.0

The need for a decentralized but controlled access to the internet is rising as human beings evolve further into being a digital civilization. The property of blockchain that allows to incrementally store data(capitalizing on Moore’s law) immutably, provides a novel way to serve end-users fast while preserving user privacy and security.

Web 3.0 provides a new way to deeply integrate content into the blockchain ecosystem with targeted precision via algorithms removing the need for a middle man.

Design

Blockchains can be designed and deployed to cater to various systems, but a unified system on which the world can publicly or privately build upon is a need of the hour as diverse blockchain ecosystems keep emerging in the increasing market. As of now, mining extracts value out of “thin air”, even though several justifications are provided including the arguments for “trust-free process” and “compensation for resource usage”.

We propose a design of the blockchain as follows:

  1. The currency of the unified blockchain would be DIgital Gold(DIG). The smallest unit of this currency would be nanogold or nanoG. 1 DIG = 10 ^ 9 nanoG 1 DIG ≈ 1 gram of 24-karat gold in the real world and can be redeemed any time for cash or gold.
  2. The blockchain should have a single master wallet. This wallet should be a multisig wallet that will contain maximum DIG the wallet can accumulate at the time of deployment.
  3. Nodes are the participants in the network who maintain blockchain data and mine blocks.
  4. The deploying authority has access to the master wallet. As and when new nodes are added, they can ask to be added to this multisig master wallet.
  5. All nodes need not be present in the multisig master wallet. Additionally, these nodes that are participating in master wallet would be having consensus rights in the network. The wallets participating in the master wallet can themselves be multisig wallets having other nodes, for joint consensus rights.
  6. Consensus rights can be exercised to decide upon mining, storage and data archival fees. A 51% consensus is required at any stage to finalize the decision. The master wallet doesn’t participate in the consensus decisions; but the nodes / wallets that are part of the master wallet form the body of consensus nodes.
  7. Every transaction over the network is visible, which solves the issue of trust in the network. Illegal transactions can be deterred based on available data.
  8. Block rewards can be received on a first-come-first-serve basis, where miner receives the transaction fees based on proof-of-work consensus. Proof-of-stake can also be introduced, if it helps prevent higher transaction fees.
  9. Smart contract execution via WASM should be supported. NFTs, tokens, side-chains should be easily supported, providing interfaces for easy inter-operability.
  10. Regulated IPFS can be used equipping different name services to provide / restrict access to based on regional guidelines per node. Private internet systems can be built on blockchain based-technology. Private VPN services may be utilised to connect to the network. This helps fuel web3 while maintaining security requirements of nodes to provide finely-tuned access to the network.
  11. Lightning network technology can be used to build channels across nodes comprising the L2 layer, improving transaction speeds while keeping fees low.
  12. Applications include in fields like digital ID, finance, asset management, hospital management among others.
  13. Blockchain encryption could be based on lattice cryptography to further bolster the network.

The reason for having a single master wallet in the network is to bring the digital blockchain economy closer to conditions in the real world, to propel the next breakthrough in the digital space. The amount of gold is finite, and this scarcity is automatically built into the master wallet.

Master wallet disburses DIG to the first nodes by buying NFTs from participants, and can later exchange them for DIG / other NFT / other item of same value. Having a single public master wallet would boast unbreakable security of the network.

The source code needs to be designed in a way that the minimal initial setup needs at least one node participating in the network, identifiable as a wallet address, and the master wallet address built with a random multisig wallet address having the keys of the first node’s wallet.

Multisig wallets are the way to fine tune access to resources on the network. Accomodating numerous keys per multi-signature wallet could be developed without sacrificing speed and efficiency of transactions.

Blockchain technology would be immensely helpful in futuristic scenarios where off-Earth colonies are set up in the solar system. All colonies can remain connected to each other while accessing a common network to transact upon.

Blockchain and AI

The blockchain is a treasure trove for AI to train upon in real-time.

  1. AI can be deeply integrated into the blockchain so much so that relevant AI functions can be quickly accessed via APIs. A native framework for AI development can be implemented in the blockchain supporting ML-based languages like Python and Julia.
  2. The scope is huge. AI can be integrated into macro and micro economics deeply, which can provide insights on the economy based on real time trends.
  3. AI can be used to secure the network. AI can work via smart contracts to reduce reliance on watchdogs in L2 networks.
  4. Being on a blockchain where wallet identifiers are random, the data leak chances are significantly reduced.
  5. Being on the AI enabled blockchain, AI agents can have separate wallets based on which certain automation sequences can be performed on the network.
  6. The native integration of AI on the network would be highly useful in terms of end-user, while funding AI wallet with the necessary tokens needed for compute. Being a distributed database of ever-growing data, the scope of data access is vast, and so is personalization of AI.
  7. AI agents can work via multi-sig wallets funded by user, thereby broadening scope for private AI players to access data, in order to provide service to consumers of the network.
  8. The blockchain can support edge technology to promote wider coverage to network users. Being natively built into blockchain, AI can hence work and scale at speed.

Digital ID

The issuing authority mints an NFT for the digital ID. The NFT can contain data encrypted by the user’s wallet’s key so that it is accessible by the user only. Any authority wanting access to this record can confirm that the issued NFT data is indeed signed by the wallet, and can validate authenticity. The contract ID of the NFT becomes the pseudonymous digital ID of the user on the blockchain.

The user can unlock this digital ID, and can share with other authorities as necessary. User can also request issuing authority to create other digital IDs that point to the original encrypted digital ID for consensual public access. These can be quickly revoked in cases of data breach.

Finance

CBDCs are an up and coming topic in the digital space. More countries are exploring tokenisation of own currency to settle trades digitally instead of using exchange currencies. Blockchain provides an easy way to settle payments in a transparent fashion.

  1. CBDC would be disbursed in the form of NFTs owned by central bank. These would be wholesale CBDCs that involve offshore transactions. Internal transactions would be settled using retail CBDC.
  2. CBDC can be purchased on the open market using digital gold, based on auction or fixed price.
  3. CBDCs can be exchanged using an on-chain exchange service, or by using channels(multisig wallets).
  4. CBDC can be blacklisted on the market to prevent unlawful exchanges from continuing. The transparency of the blockchain helps it easier to deter further usage.
  5. Wholesale CBDC transactions take place on the decentralized platform of the world, the data of which is publicly visible. Retail CBDC on the other hand may work on the private network.
  6. Transaction allowance over the network may be mutually decided by the node or channel authorities, and the verification of network usage can be performed by issuing required NFTs to these wallets.
  7. Two different retail CBDC users may or may not transact with each other depending upon the configurations of the retail blockchains. Multisig wholesale CBDC channels may be utilised to automate transfers while allowing users to transact in local CBDC.

Asset Management

Real world assets can be tagged onto the blockchain, or put up for listings. These serve as proof-of-holding, whose ownership can easily be transferred. For example, to exchange 24-karat gold for DIG, the necessary NFT can be put up for sale, and the interested party can either purchase with DIG, or some other digital entity of equal value.

Land holdings based on proof-of-deed can be easily put up on the network for purchase or rent(auto-expiry NFTs).

Fuels, minerals and grains based NFTs can be auctioned on the global market for CBDC or DIG. Supply-chain management can connect their own blockchains to the network to track real-world dispatch and shipping.

Employee Management

Companies can hold their own multisig wallets on the network and can issue their own NFTs to employees which can serve as proof-of-employment. The necessary work experience certificates can be issued to alumni via NFTs. NSR can be updated on the chain. Salary receipt NFTs can be issued on behalf of employees to tax authorities automatically. The process would further promote complete transparency on the blockchain.

Carbon Credits

Carbon absorption mechanisms can be put up on the public blockchain. The surplus credits can be auctioned on the wholesale market and can be purchased using other tokens or DIG. Investment in carbon absorption mechanisms(forests, for example) around the world can help promote healthier ecosystems, the responsibility of maintenance of which can be mutually allocated to industries looking to offset emissions. The problem with emission measurement is that the standards depend upon the governing bodies, which could lead to non-uniform tokenisation of the carbon credits.

Man-made carbon storage mechanisms should be deprecated. The carbon being stored remains so forever, and introduces maintenance charges for the same. Forests, oceans and glaciers, where most of the carbon remains trapped are some time-tested, standard and efficient natural resources to improve / build upon.

Some carbon offset mechanisms include conversion of this carbon into edible form such as solein, which is how carbon capture mechanisms can be justified. However, it is better to depend on natural food sources than solein to supplement food requirements. Over and above that, the bacterium used for the synthesis takes carbon dioxide from free air, thereby reducing the need for carbon storage.

Secure Communication

Blockchain-based secure communication channels can be setup over network nodes while preventing unauthorized data access, providing wallet-based access. This assists in setting up networks that can serve as official communication channel providers for parties.