This article comes fromhackernoon, original author: Tobias W. Kaiser

Odaily Translator |

Odaily Translator |

"When you gaze into the abyss, the abyss gazes into you" - this famous quote comes from Nietzsche's "Beyond Good and Evil".

For those who have delved into the Web3 economy, the story of the abyss sounds very familiar. After all, it is not without reason that the phrase "falling into the encryption rabbit hole" is often mentioned in the encryption circle. Of course, everyone wants to be Alice, who embarks on a fantasy adventure in Wonderland; or Leo in The Matrix, who incarnates as a problem-solving "savior". But in reality, if you really fall into the abyss, the result is that you sink deeper and deeper.

Today, I want to introduce the "Web3 Abyss" to you in a visual and systematic way.

It is important to note that each layer in the "Web3 Abyss" is not static and occasionally swaps places. Over time, previously hidden deep layers may gradually surface. By "gazing into the abyss", you can see what's going on in the next layer, and the abyss will become "darker" with each layer you sink.

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Layer 0 usually brings together people who are unwilling to explore Web3, who are not interested in Web3 content, and some even choose to ignore Web3 completely. But they may recognize that a large hole has been created in the city center. However, when you stand on the edge of the entrance to the abyss, you will find that there are also many people who peep into the abyss around, and they are likely to be attracted.

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Layer 1: Protocol plain

This is often the first stop for budding Web3 developers and should have exposure to some of the largest protocols in the space, including Bitcoin and Ethereum. In Layer 1, people have more or less learned some experience (usually gained through painful lessons), such as how to build their own self-custody wallet, but most people still choose to put their Token in the centralization trading platform.

Occasionally, smaller cryptocurrencies surface and attract attention. For example, Tezos was born in 2020 and early 2021, but was replaced by meme tokens such as Dogecoin and Shiba Inu later in 2021.

Common dangers: lost/stolen private keys, exchange hacked/bankruptcy, cryptocurrency price volatility, etc.

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Layer 2: NFT grass field

The last time NFTs appeared on this layer was in 2021. Without a doubt, this is the most colorful layer in the entire Web3 abyss, full of games and digital art. Generally speaking, in this layer, you will find some of the less colorful projects in the crypto industry trying to use NFT technology for other use cases, for example, tokenizing physical assets.

However, Layer 2 is also the first time you feel the danger of falling into the abyss. If you can't afford to lose it all, don't invest in this tier! Special Note: Not every flower is as sweet as a CryptoPunk.

Common Dangers: Scams, knockoff projects, fake NFT collections, NFT fraud.

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Layer 3: Stablecoin Tundra

Stablecoins are less colorful in the Tundra than NFT Meadows, but are a key component of Web3 infrastructure as they provide a way to buy and sell tokens without converting them to fiat, especially in bear markets The environment will become the focus of attention.

In addition, you can also find some centralized service providers that provide stablecoin deposit income in Layer 3, but please be sure to choose a trustworthy platform. You must know that the recent frequent problems of several large CeFi lenders such as Celsius, Three Arrows Capital, and Voyager have made many creditors regret it.

Common dangers: CeFi bankruptcy, decentralized stablecoin collapse.

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Layer 4: Infrastructure Factory

At Layer 4, you'll find many smaller Web3 protocols, including some Layer 1 smart contract alternative platforms, various Layer 2 protocols based on the Ethereum blockchain, and various consensus mechanisms for different blockchain use cases . In addition, this layer also accommodates practitioners in the Web3 industry.

Generally speaking, it is usually relatively safe to explore and invest in Layer 4, but please note that this layer will also experience greater volatility, sometimes even greater than the volatility of the "Layer 1 protocol plain".

Common danger: Increased volatility.

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Layer 5: DeFi Lakes

Around Layer 5's picturesque lake, you can find many of the most common use cases for decentralized finance (DeFi), including lending, over-collateralized decentralized stablecoins, and DEXs. Swim across the lake and you'll find the entrance to a deep, dark cavern containing more obscure DeFi use cases such as insurance, unsecured lending, tokenization, and algorithmic stablecoins.

As you get closer to the bottom of the cavern, a hotel looms, its windows emitting a seemingly golden glow. After descending to the fifth floor, you may feel tired from the journey and decide to take a rest in the hotel. You can actually understand most of what the travelers say.

You wonder: Once you're back on the surface, will the people there not understand what you're saying? Do you still want to go back? No, you've seen the mundaneness of life on the surface, and you've seen the wonders of the Web3 abyss. You begin to realize that you are on a path of no return.

In the hotel, when you interact with other people, most of them have at least been the victim of DeFi hacks or fraudulent activities, and maybe you have deep feelings and stories of your own to tell. Suddenly, though, you notice a lot of people coming and going through a secluded door at the back of the hotel, above a sign that says "IDO Platform."

Despite your curiosity, you decide to explore, and suddenly you find yourself in a huge casino. The "IDO platform" is a place where new cryptocurrencies are born every day, but most of these tokens "die quickly". If you put all your savings in these cryptocurrencies, the ending will be very dangerous. Those who survive, however, can make substantial fortunes through early stage investing. Once you've taken the risk yourself a few times, you may notice that winning or losing becomes less and less relevant.

Common dangers: hacking, fraud, shitcoins themselves, etc.

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Layer 6: DAO Islands

When you sink down to the sixth floor, you will find that there are a bunch of "small villages" clinging to the edge of the Web3 abyss. From a height they look like islands in a vast, dark ocean, and the deeper you descend, the more islands there are, and you wonder how many of those islands there might be.

When you decide to explore an island, you will find that the language of the residents in the village on the island is even stranger than the people in the DeFi hotel, but they are all friendly and welcoming. You agree to help them with some tasks in exchange for some "local currency", not much, but enough to help you survive on the island.

The residents have been working hard to build their villages and build bridges to other islands, but overall they live happily ever after. So, you decide to stay a little longer and help them out, you enjoy being there and building the village, but some older residents will warn you not to work too hard to earn "local currency".

Common dangers: mental health issues, DAO decay.

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Layer 7: Bottomless Pit

God knows how long you worked on some islands and finally one day you decided to dive into the seventh layer of the Web3 abyss where it was so dark you couldn't see too far and you couldn't see the bottom and no one knew if this layer was The end of the Web3 abyss journey, or if there are more layers below Layer 7, you don't even know how far you've climbed.

Here, what you see may be so magnificent and interesting, but at the same time, it is so terrible that it is difficult for you to describe what is in this layer. You thought you could escape from this level, but on second thought, you might as well ask more people to come down...

You'll wait, keep waiting...

In Layer 7, you can find ? ? ?