An in-depth and authoritative treatment of one of the most pressing topics of our time
In Blockchain and Web3: Building the Cryptocurrency, Privacy, and Security Foundations of the Metaverse, two tech and finance experts deliver a comprehensive and accessible guide to the present and future of blockchain technology and how it will form the foundation of a new, better internet.
To support a concept as bold as the Metaverse, we need several orders of magnitude more powerful computing capability, accessible at much lower latencies, across a multitude of devices and screens. You’ll discover how blockchain can accelerate data flow, exchange, and transactions to create and transfer value around the world and, at the same time, how it can be used to protect user data privacy and security with decentralized web infrastructures. The book also includes:
- Discussions of how sovereign governments are entering the blockchain fray and how their entry, especially with CBDC digital currency, shapes the conversations around Web3
- Explorations of whether we will ever realize the holy grail of blockchain tech: interoperability to compete with Big Tech platforms
Discussion of new security and privacy issues rising from the intersection of Blockchain, Web3 and Metaverse.A fascinating and eye-opening treatment of the past, present, and future of blockchain and the role it will play on the internet and metaverse, Blockchain and Web3 is a truly original and engaging discussion of a timely and critical topic.
Author(s): Winston Ma, Ken Huang
Publisher: Wiley
Year: 2022
Language: English
Pages: 402
City: Hoboken
Cover
Title Page
Copyright Page
Contents
Foreword
Great Leap Forward into Web3
The Opportunities and Challenges of Metaverse
Blockchain: The Building Blocks of a Trusted Metaverse
Acknowledgments
About the Authors
Winston Wenyan Ma, CFA & Esq.
Ken Huang
Preface
PART I Mega Convergence of Digital Technologies in Metaverse
Chapter 1 Metaverse: Convergence of Techand Business Models
Metaverse, Omniverse, and Human Co-Experience
Big Tech vs. Web3
Seven Layers of the Technology Stack
Layer 1: The Physical and Network Layer
Layer 2: The Decentralized Digital Identity Layer
Layer 3: The Distributed Data Layer
Layer 4: The Distributed Intelligence Layer
Layer 5: The Consensus Layer
Layer 6: The Smart Contract Layer
Layer 7: The Metaverse Economy Layer
Business Models Converging in Metaverse
Case 1: Meta – AI, AR/VR, Big Data, Social Network, and UGC Converging
Case 2: Roblox – 3D Communication, Social Network, AR/VR, and NFT Converging
Case 3: Soul – Social Network, AI, and Digital Coin Converging
Case 4: Loot – NFT, Creative Ideas, Art, Derivatives, and Games Converging
Case 5: SocialFi – Social Network, Game, Finance, Payment, and NFTs Converging
Building a Better Internet for the Creator Economy
Chapter 2 Blockchain, the Backbone of Web3
Basic Blockchain Concepts
Blockchain’s Four Key Components
Smart Contract
Public Key (Encryption)
Consensus Algorithm
Peer-to-Peer (P2P) Networking
Mega Convergence of Data Technologies
Blockchain and Internet of Things (IoT)
Blockchain and Distributed Storage
Blockchain and Artificial Intelligence (AI) and Machine Learning (ML)
Blockchain and Cloud Computing
Blockchain and Cybersecurity
Smart Contract Security
Consensus Algorithm Security
Node Security
Data Encryption Security
Five Challenges of Blockchain Adoption and Possible Solutions
Privacy Issues
Scalability
Consensus Algorithms
Authenticity of Data on the Chain
Interoperability
Why Blockchain Is Essential for Metaverse
1: Real-Time Global Payment Rail
2: Ownership Verification for Digital Assets
3: Crypto Tokens to Power the Creator Economy
4: Blockchain /AI to Create Immersive Experience
5: Decentralized Cloud for App Deployment
6: Decentralized Identity and Cybersecurity
7: Cross-Chain Computing Turns “Multiverse” into Metaverse
8: Enable New Data Economy in the Metaverse
PART II Blockchain Breakthroughs Set the Transaction, Privacy, and Security Foundation for the Digital Economy
Chapter 3 Cryptocurrencies and Tokenomics
Virtual Lands, Virtual Currencies
Why Metaverse Needs Crypto and Blockchain-Based Transactions
Bitcoin: The Beginning of Cryptocurrency and Trust
Ethereum: Smart Contract Execution Platform
Bitcoin versus Web3 (Pure Decentralization vs. Modified Decentralization)
Visa and Mastercard: Tokenomics Going Mainstream
Metaverse Outlook: Crypto Beyond Currencies
Chapter 4 DeFi (Decentralized Finance): Bankless Metaverse
Fintech 2.0: DeFi vs. CeFi
Governance Tokens and Revenue Sources
DeFi Governance Token
DeFi LP (Liquidity Provider) Token
Stablecoins: Bridging DeFi and CeFi
Fiat Collateral (Off-Chain)
Crypto Collateral (On-Chain)
Algorithmic Stablecoins
Commodity-Backed Stablecoins
Layered Protocols and DeFi Security
DeFi’s Money Lego Layers
Incorrect Liquidity Pool Calculations
Stolen and Leaked Private Keys
Poor Access Control of Privileged Functionalities
Frontrunning Attacks
Rug Pulls
DeFi Cross-Chain Bridge Attack
Bumpy Road to Mass Adoption
Scalable Base Blockchain
KYC/AML
UI/UX Design
Conquering New Territory: DeFi + NFT, Game, and Social Network
DeFi and NFT
Solving Bonding Curve Issue
Game + DeFi = GameFi
Emergence of SocialFi
Chapter 5 NFTs, Creator Economy, and Open Metaverse
2021 – The Year of the NFT
Co-Evolution of Art and Tech
Phase 1: Manual Craft
Phase 2: Image Printing
Phase 3: Mass Media
Phase 4: Digital Art
NFT and Generative Art
Creator Economy: Beyond the Bored Apes
Going Mainstream with Brands and Fashion
Challenges to the NFT Metaverse
Chapter 6 Blockchain Gaming in Metaverse
From Gaming into 3D Interactive Metaverse
Tech Convergence, Media Convergence
Epic Games and Fortnite
Roblox Human Co-Experience
P2E Blockchain Gaming – GameFi with NFT
Level 1: Basic Interaction NFT (Example: CryptoKitties)
Level 2: Explore (Examples: Decentraland, Sandbox)
Level 3 P2E Gameplay (Example: Axie Infinity)
Blockchain Gaming: Gaming First? Crypto First?
Gaming, the Foundation of Metaverse
Chapter 7 Metaverse Privacy: Blockchain vs. Big Tech
Privacy in a Parallel Digital Universe
Future Data Privacy Model in Metaverse
Centralized Governance Model
Individualized Model
DAO-Based Governance Model
Hybrid Governance Model
WEF Data Governance Model
Metaverse Platform Accountability
Data Protection
Individual Understanding
Individual Control
Zero-Knowledge Proof and Secure Multiparty Computation
Zero-Knowledge Proof
Secure Multiparty Computation
Homomorphic Encryption and Federated Learning
Homomorphic Encryption
Federated Learning
NFT “Cookies”: When Web3 Tech Meets Web2.0 Legacy
Surveillance Economy and Dystopian Society
MEV and Surveillance Economy
Dystopian Society
Chapter 8 Metaverse Security
Blockchain and Metaverse: Marriage in Heaven?
Identity in Metaverse: Wild Wild West?
Metaverse Data Security: Chronic Pain
Public Key Cryptography
Self-Sovereign Identity (SSI) and Data Ownership
Data Leak Cases in NFT Projects
Smart Contract Security: Maybe Not So Smart
CryptoPunks Smart Contract V1 Error
Hashmasks Smart Contact Bug
Twitter Profile File Picture (PFP) NFT Hack
Ransomware Attack in Metaverse: Is It Possible?
Supply Chain Software Risks: A Real Danger?
OpenSea Down, Impacting Wallets, and Other NFT Projects
Maker DAO Crash on 2020 “Black Thursday”
Supply Chain Smart Contact Attack on Lendf.Me
Quantum Computing: Challenges and Opportunities
Random Number Generation
Hash Functions
Public-Key Signatures
Transition from Pre-Quantum to Post-Quantum Blockchain
Extended Reality (XR): Novel Security Risks
PART III Three-Way War among Open Metaverse, Big Tech Walled Gardens, and Sovereign States
Chapter 9 Public Crypto, Government CBDC, and Big Tech Coin
Three-Way Currency War in Metaverse(s)
China’s e-CNY Push at 2022 Winter Olympics
Crackdown on the World’s Largest Crypto Market
Investor Protection
Carbon Neutrality
Financial Stability
Digital Rupee, Digital Ruble, and Britcoin
US Bellwether: CBDC R&D and Crypto Regulation
US–China Consensus: Stablecoins in the Regulatory Spotlight
Big Tech Coin: The Rise (and Fall) of Libra
Chapter 10 Web3 Creator Economy on Blockchain
Constitution DAO and Web3 Governance
Redesign Corporations in the Metaverse
YGG and Open Metaverse vs. Big Tech Platforms
Challenge 1: Interoperability and the “Internet of Blockchains”
Challenge 2: State-Backed Metaverse
Challenge 3: Will Web3 Startups Become New “Big Techs”?
Creator-Verse: Future Creator Economy
Phase 1: Passive Internet
Phase 2: Mobile Internet
Phase 3: Blockchain Internet
Glossary
Index
EULA
