Protocol Design: Reasons and Methods

The Intrinsic Laws of Protocol Evolution

Internet protocol: the bond of interaction

The internet is a network composed of various protocols, including simple and complex protocols. The commonality among these protocols is that they are all formalized interaction systems capable of facilitating complex group behaviors. Internet protocols not only connect interactions between people but also interact with software, demonstrating high adaptability and efficiency.

protocol's evolution: Web1 - Web2 - Web3

The protocols of the Web1 era ( such as NNTP, IRC, SMTP, and RSS ) remained neutral in terms of value flow, ownership, access rights, and payment mechanisms, without a clear economic model. These protocols ultimately faced failure or change, mainly due to a lack of specific functionalities and difficulties in obtaining funding.

Web2 has brought a trend of centralized services replacing decentralized protocols. Web2 addresses the limitations of Web1 protocols and offers specific functionalities. However, Web2 protocols are completely controlled by their owners and are only limited by business strategies and legal constraints.

Web3 introduces decentralized components, utilizing cryptography and blockchain technology to reduce reliance on trust, while clarifying economic principles and supporting decentralization. Web3 features openness, interoperability, and open-source characteristics, has a clear economic model, and can integrate funds within the protocol to achieve sustainable development.

Web3 Protocol Design Case

Case Background and Design Objectives

Based on "Stable Horde", design a Web3 protocol named "Unstable Confusion" with the goal of establishing a decentralized, interoperable image generation marketplace.

potential mechanism design

1. Verification mechanism: Methods such as game theory and cryptography can be used to ensure the accuracy of reasoning.

2. Pricing Strategy: An order book can be established on-chain, or the on-chain verified computational resources can be used to measure the degree of agency.

3. Storage Mechanism: Choose between on-chain storage, dedicated storage encryption networks, or off-chain storage.

4. Task allocation strategy: Consider methods such as worker self-selection, protocol allocation, or user choice.

Key points of decentralized protocol design

• Identify and address key design elements that may lead to centralization
• Reduce switching costs and promote interoperability between systems
• Make full use of Web3 technology to create decentralized systems
• Conduct in-depth research on various issues and select the best solution.

By considering the above, it can help build a Web3 protocol system with long-term robustness and decentralized characteristics.