Three Thinking Models of Web3 Infrastructure

Narrow Waist Model

The first important thinking model for Web3 infrastructure is the "narrow waist". This concept originates from the design of the Internet Protocol (IP). As a simple interface layer, IP connects upper-layer applications and lower-layer network hardware, forming the "narrow waist" of the Internet.

The success of IP lies in its unrestricted nature and flexibility. It does not limit how the upper and lower layers use the protocol, only providing a unified data transmission interface. This design decouples applications and hardware, allowing both to develop independently and generating powerful network effects.

In the blockchain field, consensus mechanisms may become a similar "narrow waist." They connect validators and application developers, providing a unified computational foundation for the blockchain. Different blockchains are balancing autonomy and unrestrictedness, and in the future, more open and flexible dominant blockchains may emerge.

Modular Model

The second thinking model is modularization. Modularization means breaking the system down into independent components, increasing flexibility but also bringing complexity. The choice of the degree of modularization requires weighing the pros and cons.

When technical capabilities are insufficient to meet demands, maintaining integrity may be more beneficial. As technology develops beyond demands, shifting to a modular architecture can reduce costs and increase flexibility.

The development history of the Internet and the iPhone shows the evolution from holistic to modular. For blockchain, it is necessary to weigh the degree of modularity based on specific circumstances to balance flexibility and complexity.

Network Flywheel Model

The third thinking model is the network flywheel, which focuses on the role of tokens in driving the development of the protocol. Tokens can serve as an incentive mechanism to solve the cold start problem of multiple parties participating in the market.

By distributing tokens to participants, a positive cycle can be formed: tokens incentivize validators to provide resources, attract developers to build applications, create value for users, and further strengthen the protocol's vision and enhance token value. This cycle can help the protocol to self-propel its development rather than relying on external funding.

Tokens can incentivize participants to contribute at each stage, thereby overcoming the challenges of cold starts and promoting the development of the entire ecosystem. This is one of the most important roles of tokens in Web3 infrastructure.