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Blockchain technology is being embraced by almost every industry globally. The ecosystem is helping change the status quo of how we conduct our daily lives. With cryptocurrencies and its underlying technology Web3.0 is being escorted in as a permissionless and open innovation using middleware protocols. Indeed, the cryptosphere thanks to the DeFi sector because of which firms are no longer extracting value from users, rather its developer is extracting value from protocols. Indeed, the infrastructure is replacing middlemen software-as-a-service (SaaS) firms.
Blockchain creates value with middleware protocols
The potential blockchain technology helps transform our daily activities. The technology offers a secure and trusted Peer-to-Peer network for financial transactions, purchasing art, buying property, and donating cryptocurrencies.
Where previously, companies used to extract value from users, now developers are extracting value from protocols. On the middleware protocol, devs can stake the native token once for the equivalent network bandwidth for the lifetime of that stake. Notably, the longer applications are staked, the closer the cost approaches to zero. Later in upcoming months, the service is basically free, and with staking-based tokenomics, there are no monthly costs like SaaS fees.
Collaborative strategy among protocols
Each of the middleware protocols provides a unique service at a different layer of the stack. To understand the scenario, we can see the RPC layer which is with the Pocket Network, the Indexing layer of Graph, and the storage layer that is being used by Filecoin and StorJ.
These protocols are at different parts of the decentralized Web3.0 developer stack. Hence, these are complementary. With such synergistic relationships, protocols can attract better applications, more app usage that generates more node revenue. And ultimately, the scenario will attract more nodes which will boost redundancy, and the economic flywheel will continue.
Web3.0 will disrupt SaaS
The blockchain ecosystem tracks DSF of service protocols across various layers of the decentralized developer stack. While observing the scenario, we found Pocket generating $3.9 million of demand-side fees in just 30 days because of a novel deflationary infrastructure. Indeed, the protocol explains that the developers pay through dilution and nodes and earn through inflation.
