DreamingCrypto takes a look at the new world of cryptos, where magical dapps come to life and fearless entrepreneurs explore new frontiers in the crypto wilds. Whispers of the Web3 prophecy suggest unchained metaverses. The collaboration with AltLayer and T-Rex would be a significant step beneath that imaginative vision and its promise of unlocking true composability. Together, they are helping make Web3 onboarding easier for billions of people. Together, we’re taking important steps towards building a more inclusive and user-friendly Web3 — creating opportunities for wider adoption in the future.

Simplifying Web3 with Technology

Central to this partnership is a shared commitment to using technology to break down the barriers that currently stand in the way of widespread Web3 adoption. Two key technologies are central to this effort: Arbitrum Orbit and rollups.

With Arbitrum Orbit, tailored and permissioned chains can be easily spun up. This is unfortunately a big deal. Most importantly, it empowers developers to tailor blockchain parameters for application-specific use cases, which has the potential to drastically reduce gas fees. Lower gas fees are key to bringing the average user—those who have yet to become familiar with Web3 applications—onboard. Rollups, especially in Arbitrum’s case, are crucial in minimizing gas costs. They take a number of transactions and consolidate them into one transaction. That one single transaction is then condensed onto the parent chain, Ethereum for example. By bundling transactions together, rollups reduce the computational burden on the main chain, which translates to reduced costs for users.

Data compression techniques have a major impact on lowering gas fees. By moving transport off of layer one entirely, rollups compress transaction activity, therefore minimizing what must be stored on the parent chain. This method reduces storage needs without sacrificing efficacy. Deduplication of information decreases storage needs and directly correlates to reduced fees for users. In addition, Arbitrum’s support for custom gas tokens adds more flexibility and opportunities for savings. Customers are given the option to pay transaction fees using tokens that are less expensive or easier to use. This flexibility makes it easier to enter the competition. Arbitrum’s Sequencer processes transactions on a first-come, first-served basis, which is the most efficient method to ensure fast transaction processing. This method saves users gas fees by decreasing the amount of time transactions spend in the transaction acceptance queue.

Addressing the Challenges of Web3

The AltLayer-T-Rex collaboration directly tackles many of the key challenges that have stalled the adoption and popularization of Web3. These challenges include technical hurdles and user experience issues.

Surprisingly, one of the biggest hurdles may be the current gas fees on most blockchain networks, especially Ethereum. These fees can add up to make the experience of using Web3 applications cost prohibitive for most users, particularly for lower transaction amounts. Founded by the creators of Ethereum’s first rollup, Arbitrum Orbit and rollups, as mentioned above, were purpose-built to address this issue by dramatically lowering gas fees. User experience (UX) is another major challenge. Activating crypto wallets and navigating decentralized applications (dApps) are complex tasks that require substantial technical literacy. The onboarding process has proven confusing and intimidating for new users. Trouble is, research shows roughly half of would-be users drop off from Web3 apps when they hit these early barriers. AltLayer and T-Rex are making this onboarding process easier. They’re creating applications on Web3 that are simply more user-friendly, helping normal people feel more comfortable using them and ultimately spurring wider adoption.

Scalability is another key area of focus. Whether it’s a peak in volume from the latest meme coin or NFT craze, even the largest networks like Ethereum get congested, delayed, and expensive. Layer 2 solutions and other interoperability and scalability technologies are important in scaling up transaction times and lowering costs. These developments further help Web3 reach a wider, more non-technical audience. Security is paramount. In 2022, breaches in Web3 security resulted in losses of over $1.3 billion, emphasizing the critical need for strong protections to prevent these vulnerabilities. Beyond ensuring a secure code base, it’s critically important to address smart contract vulnerabilities. About 70% of all smart contracts are thought to have bugs that hackers can trip over.

The Potential Impact and Future of Web3

Together, AltLayer and T-Rex can have a profound impact on the Web3 ecosystem. As a result, it will further open this technology up to a broader array of applicants. They address major issues such as exorbitant gas fees, user unfriendly interfaces, and scalability restrictions. Together, these two initiatives take an important step toward broader adoption and use in the real world.

Web3 Transformations

The financial-services sector has historically been the first to adopt emerging Web3 technologies and assets. Daily transaction volumes on decentralized finance exchanges are more than $10 billion dollars DAILY! Monthly active crypto addresses have tripled since late 2023, recently surpassing 220 million users, reflecting expanding real-world utility and adoption. 77% of founders expect breakthrough applications by 2025. Though still young, Web3 signals a greater paradigm towards a potentially more accessible, interconnected and decentralized internet. As a result, it strengthens the autonomy of individuals by providing them more ownership and control over their digital lives.

  • Gaming: Web3 is enabling new gaming models with play-to-earn mechanics and true ownership of in-game assets.
  • Payments: Web3 offers the potential for faster, cheaper, and more secure payments, particularly for cross-border transactions.
  • Decentralized Finance (DeFi): DeFi is revolutionizing the financial industry by providing access to financial services without intermediaries.

Web3 Adoption

We must recognize the work that still lies ahead. Real risks, real consequences Smart contract vulnerabilities and security breaches are a threat that have repeatedly made headlines and hurt consumers. The environmental harm caused by some consensus mechanisms, like Proof of Work (PoW), has been a hot topic as of late. Bitcoin mining in isolation accounts for roughly 0.2% of worldwide greenhouse gas emissions. As Web3 continues to develop, let’s commit to addressing these challenges at every turn. It’s important we come together to build this technology sustainably and responsibly. Despite these challenges, the upside of Web3 is limitless. Web3 can put people in the driver’s seat by providing them with improved security over their data and digital assets. This democratizing change would make our internet future more open, transparent, just, and equitable. The AltLayer-T-Rex partnership is an important step towards fulfilling that vision. We’re excited to see how their pioneering work will contribute to the future of Web3.

However, it's important to acknowledge the challenges that remain. Smart contract vulnerabilities and security breaches continue to pose a threat. The environmental impact of certain consensus mechanisms, such as Proof of Work (PoW), also raises concerns. Bitcoin mining alone contributes about 0.2% of global greenhouse gas emissions. As Web3 evolves, it will be crucial to address these challenges and ensure that the technology is developed in a sustainable and responsible manner. Despite these challenges, the potential benefits of Web3 are enormous. By empowering individuals with greater control over their data and digital assets, Web3 has the potential to create a more open, transparent, and equitable internet. The AltLayer-T-Rex partnership represents a significant step towards realizing that vision, and it will be exciting to see how their efforts contribute to the future of Web3.