What Web 3.0, DApps, and Protocol Builders Miss in Software Development

What Web 3.0, DApps, and Protocol Builders Miss in Software Development

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Have you ever wondered when all the apps we use will be blockchain-based and decentralized? Why hasn’t that day come yet?

In fact, the majority of DApps can be slower and lack features that the public are used to. Most current blockchain-related technologies cannot scale to the levels required for large applications such as social networks, web applications, IoT providers, etc.

However, there is one component of the development stack that programmers frequently overlook, but which will inspire the next wave of decentralized applications and perhaps accelerate mass adoption.

What is an indexing solution and who is it for?

Consuming relevant and concise data is essential for almost any web application. The same goes for decentralized applications, DeFi and NFT applications which are built on the blockchain and use it as their main source of information.

They require chain indexing which is not a system but rather a database optimization process that reduces the number of disk accesses required when processing queries. Simply put, indexing is a data structure technique used to quickly locate and access data stored in the database of a network.

It allows users to access portfolio aggregators, TVL dashboards, portfolio profiling, and other features. However, unlike traditional data storage systems, certain aspects of blockchain make querying data time-consuming and painfully difficult.

Individual projects that want to challenge the history of blockchain and create useful data points for their applications must pay a high price and require additional computing power.

Why have centralized indexing solutions become obsolete

When blockchain applications and technology were in their infancy, a centralized indexing solution might have sufficed. But as new features were added, it became apparent that centralized indexing solutions limited application capabilities and required additional expense and energy.

In addition, the centralized indexing solution did not meet a simple but essential criterion decentralization.

Decentralized applications already rely on centralized indexers to obtain on-chain data, but this deviates from untrust cryptographic ideals at a fundamental level.

The programs depend on a single system and do not have the expected autonomy. In addition, centralization can lead to serious flaws and even breakdowns.

A decentralized indexing solution, on the other hand, offers the following advantages.

  • Instead of using resource-intensive hardware, this mechanism significantly reduces operating costs.
  • Additionally, indexers serve the most recent database first and then search for historical data. This method is more efficient than the peer method, which indexes and serves the entire blockchain database.
  • Hosting indexers on a network of globally distributed nodes with a fully decentralized stack eliminates single points of failure. In addition, projects and developers do not need a central infrastructure, which represents a significant change for indexing.
  • Once your indexer is up and running on a platform, no government or centralized authority will be able to stop or block it. Even if one part of the decentralized network goes down, the others will continue to function, just like your indexer.
  • Decentralized indexing is one that projects can easily use on their own to deploy custom indexers. Everyone can quickly access the market without the intervention of a centralized intermediary or an external party.

Will we see mass adoption sooner if we all use decentralized indexing solutions

Blockchain applications can work without an open source and decentralized indexing solution.

Moreover, even though indexing solutions are a crucial part of DApp functionality, they cannot guarantee the success of a project as it depends on various factors including a solid concept, a well-thought-out roadmap, a good financial management and others.

However, using decentralized open source indexing solutions allows applications to run more efficiently. If something works well and seems easy to use, demand is more likely to increase, making DApps something many people use on a daily basis.


Claudio Pascariello is the co-founder of Aleph.im.

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