{"id":400747,"date":"2022-01-29T05:08:00","date_gmt":"2022-01-29T02:08:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\/"},"modified":"2022-01-29T05:08:00","modified_gmt":"2022-01-29T02:08:00","slug":"web3-innovations-are-replacing-middlemen-with-middleware-protocols","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\/","title":{"rendered":"# Web3 innovations are replacing middlemen with middleware protocols"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e0b78d3aa0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e0b78d3aa0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\/#Creating_value_with_middleware_protocols\" >Creating value with middleware protocols<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\/#A_synergistic_relationship\" >A synergistic relationship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\/#Disrupting_SaaS\" >Disrupting SaaS<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Web3 innovations are replacing middlemen with middleware protocols <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Cryptocurrencies and the wider blockchain ecosystem are helping change the status quo of how we conduct our day-to-day lives. With these emerging technologies, Web3 is being ushered in as a permissionless and open innovation using middleware blockchain protocols. By doing so, they\u2019re replacing middlemen software-as-a-service (SaaS) companies by capturing value at a greater level.<\/p>\n<p>Middleware protocols are by no means new. After all, Web2 is supported by middleware <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications, the main one being HTTP. Middleware is what enables users to interact with each other and with applications in a computing environment. And with Web3, there are a variety of protocols in the middle layer stack of this new internet to support applications. More vitally, though, are they really important?<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/8d4d410f-3f0c-474a-b2fd-9bee03188ab7.png\"><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Creating_value_with_middleware_protocols\"><\/span>Creating value with middleware protocols<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With the arrival of blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, how we go about our daily activities is changing. Whether it\u2019s through financial transactions, purchasing art, buying property or donating to a charity, the blockchain enables this by providing a secure and trusted peer-to-peer (P2P) network between users. Now, it\u2019s no longer the case of companies extracting value from users, but developers extracting value from protocols.<\/p>\n<p>But, how does this work? On a middleware protocol, developers can stake the native token once for the equivalent network bandwidth for the lifetime of that stake. The longer applications are staked and using the network, the closer the cost approaches zero. After several months, the service is basically free, and with staking-based tokenomics, there are no monthly costs such as with SaaS fees.<\/p>\n<p>Developers can always unstake their initial investment and sell the middleware protocol\u2019s native tokens they have purchased on a secondary market or to another developer. They can also stake the software-as-a-service node to earn more of the protocol\u2019s token for servicing application requests.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Decentralized and traditional finance tried to destroy each other but failed<\/em><\/strong><\/p>\n<p>Other middleware providers include Arweave, a global hard drive that allows users to store data permanently. Arweave users pay .54 AR once for one GB of permanent storage, and while it delivers near-zero marginal costs, the initial costs aren\u2019t recoverable. Graph, a pay per query model for indexed blockchain data on-demand, is done through micropayments and can be costly for developers depending on the scale and frequency of queries.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_synergistic_relationship\"><\/span>A synergistic relationship<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Each application-specific middleware protocol provides a unique service at a different layer of the stack. For instance, the RPC layer is with the Pocket Network, the indexing layer is with Graph, Akash has the cloud layer, the video transcoding layer is with Livepeer and Arweave, Filecoin and Storj have the storage layer. Because they are at different parts of the decentralized Web3 developer stack, the protocols are complimentary. For instance, the following ETHOnline 2020\/2021 hackathon projects used both Pocket and the Graph: ERCgraph, Proxy Poster, LiFinance Bridge Aggregator Analytics and Balancer Chat. And, because they are at different parts of the decentralized Web3 developer ops stack, the protocols are synergistic.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/7474b8a9-f8c1-4761-848f-ee6317fdb964.png\"><\/figure>\n<p>This is noted by the fact that the Graph\u2019s subgraph indexers need to ping a base-layer Ethereum archive node, which can be costly to run and maintain. To save money, indexers can leverage a middleware protocol\u2019s RPC endpoints, giving users maximum uptime and no single points of failure. With Livepeer\u2019s orchestrators, they need to ping a base-layer Ethereum full node, which also brings monthly costs to run and maintain. Similar to indexers, orchestrators can leverage a middleware protocol\u2019s RPC endpoints to save money. This, in turn, develops a two-sided marketplace between consumers and provisioners.<\/p>\n<p>With this synergistic relationship, better service attracts applications, more app usage generates more node revenue and more node revenue attracts more nodes which boosts redundancy, and so the economic flywheel continues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disrupting_SaaS\"><\/span>Disrupting SaaS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Web3 Index <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/web3index.org\/\">tracks<\/a> demand-side fees (DSF) of service protocols across various layers of the decentralized developer stack. For instance, Pocket generates $3.9 million of DSF in 30 days because of a novel deflationary payment model. This means that developers pay through dilution and nodes earn through inflation.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b044bb3c-34fa-4a65-abcb-171f44ab184a.png\"><\/figure>\n<p>Graph produces $6,460, Livepeer $50,396, Arweave $171,406, Helium $7,591 and Akash $4,623. This novel economic approach has the potential to disrupt SaaS in a major way while maintaining \u201cperpetual fair launch\u201d mechanisms that individuals in crypto seek when contributing to a growing community.<\/p>\n<p>It also means no monthly rent to middlemen allowing developers to reap the rewards of their efforts.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Michael O\u2019Rourke<\/strong> is the co-founder and CEO of Pocket Network. Michael is a self-taught iOS and Solidity developer. He was also on the ground level of Tampa Bay\u2019s Bitcoin\/crypto meetup and consultancy, Blockspaces, with a focus on teaching developers Solidity. He graduated from the University of South Florida.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"consulting_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/web3-innovations-are-replacing-middlemen-with-middleware-protocols\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Web3 innovations are replacing middlemen with middleware protocols &#8221; Cryptocurrencies and the wider blockchain ecosystem are helping change the status quo of how we conduct our day-to-day lives. With these emerging technologies, Web3 is being ushered in as a permissionless and open innovation using middleware blockchain protocols. By doing so, they\u2019re replacing middlemen software-as-a-service&#8230;<\/p>\n","protected":false},"author":1,"featured_media":400748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMTgwMGJmY2QtZDViOC00ODQ4LWE1ZmEtOTk4YjhlYjFlZTFkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74983,74868,93542,74355,73821,48,4965],"class_list":["post-400747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-decentralization","tag-defi","tag-web3","tag-adoption","tag-developers","tag-internet","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=400747"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/400748"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=400747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=400747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=400747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}