Middleware Linking Web3 and Public Chains

The relationship between public chains and Web3 has always been unclear, with overlapping user bases. While the majority of projects have their own business logic, they ultimately rely on their tokens to bridge the gap between public chains and Web3.

Literally, it’s easy to understand that Web3 is an upgraded version of Web2, seen as the next stage of the internet, aiming to create a decentralized network environment where users control their data, identity, and transactions, rather than relying on centralized entities or platforms. Public chain technology is one of the key infrastructures for realizing the Web3 vision.

To achieve a decentralized, secure, and user-driven Web3 internet, the technology used must support these characteristics. Public chains offer a secure, transparent, and tamper-proof method of data recording, enabling value exchange, contract execution, and data storage without the presence of central authorities. Therefore, public chains are a key technology on the road to realizing the Web3 vision.

However, due to the limitations of public chain technology in terms of performance and functionality, many Web3 projects have had to compromise by using some centralized technologies in practical applications.

For example, projects may choose to use centralized servers to handle some computationally intensive tasks or store large amounts of data, only using public chains for core value transfer functions. Although this compromise solution improves efficiency and functionality to some extent, it also weakens the degree of decentralization.

To truly realize the Web3 vision, innovation must continue on the basis of public chain technology.

Smart Layer is an innovative infrastructure that can address the above issues. As middleware linking public chains and Web3 applications, it inherits the security of public chains while executing complex Web3 business logic, representing a completely new concept.

01 About Smart Layer

Smart Token Labs, formerly known as TokenScript, is an open-source middleware for programmable smart tokens and Web3 applications, enabling a smooth transition of existing Web2 businesses to Web3.

Smart Layer is an ecosystem that provides programmable service networks for public chains, ushering in the era of executable smart tokens and enabling complex interactions with various systems and tokens.

For token issuers, this platform not only allows them to create and manage programmable smart tokens but also provides a middleware solution for Web3 services, greatly simplifying the complex task of integrating web services with token functionality. Smart Layer fills the missing layer needed to unlock mainstream tokenization use cases.

Smart Token Labs has a solid background and a relatively long development cycle. In July 2021, the team raised an initial funding of $6 million from investors such as Mark Cuban, Crypto.com, Framework Ventures, and Mechanism Capital.

In September 2022, led by prominent investor Liang Xinjun in the Chinese-speaking circle, with participation from investors such as HashGlobal, Bodl, and Fenbushi Capital, the project raised another $6 million at a valuation four times higher than the previous round. This demonstrates the support and confidence of professional investors in the project’s trajectory.

Earlier this year, Smart Layer released a retrospective on its development, stating that it has completed support for EVM public chains and can manage token logic that is not stored on-chain.

Additionally, the project launched the intriguing Smart Cat xNFT game, attracting a large number of players’ interest. Meanwhile, the team proposed the ERC-5169 standard, adding a new dimension to token interoperability and functionality.

Meanwhile, through close collaboration with InsomniaLabs, Smart Layer successfully launched the Loyalty+ program, which aims to strengthen loyalty connections between brands and users through public chain technology. The project has already attracted over 50 partners, including Polygon, Layerzero, Alchemy, and others, demonstrating its extensive potential for industry-wide applications.

In terms of operations, Smart Layer has collaborated with the world’s top 10 cricket star Glenn Maxwell to launch a global fan engagement program using Smart Layer’s proof-based executable NFTs.

As middleware, Smart Layer is of great significance. It not only simplifies the complexity of transitioning traditional Web2 businesses to Web3 from a service perspective but also provides developers with a flexible set of tools that make it easier for them to develop and deploy decentralized applications.

Moreover, through Smart Layer, the technological gap between public chains and Web3 has been effectively bridged, providing users with a more secure, transparent, and decentralized user experience. This resolves limitations existing in the current public chain technology environment while ensuring the potential for broader application possibilities.

Most importantly, Smart Layer has announced plans to conduct an airdrop program in 2024! Based on available information, its SLN token will serve as incentives for Smart Layer network service nodes, ensuring the decentralization and smooth operation of the entire network.

02 Technical details

From a macro perspective, Smart Layer’s technology consists of three parts: the public chain, anchoring nodes, and service nodes. From the user’s perceptible perspective, the innovative technology structure of Smart Layer’s three layers can be divided into two main blocks:

• Smart Token ERC-5169: An innovative token standard issued on EVM public chains, which, while inheriting traditional token functionality, can bring interactivity to tokens.
• Smart Layer Network: Realizing an interactive network layer for tokens, it is a decentralized network infrastructure distinct from public chains.

Smart Token

In May 2022, Smart Token Labs proposed the Ethereum standard ERC-5169, aiming to enhance token functionality and interoperability by introducing the scriptURI() function.

This proposal allows tokens to be associated with executable scripts, enabling tokens to not only carry value but also execute complex logic and interact with various systems. From the perspective of industry development, ERC-5169 is a key innovation in realizing the Web3 vision, enabling tokens to become intelligent tools connecting users, data, and services.

Currently, ERC-5169 has attracted widespread attention from the community and has gained some degree of acceptance. By allowing tokens to directly associate with external scripts, it opens up new dimensions for token use cases and functionalities. It is believed that ERC-5169 will one day be included in the official standards of the Ethereum community.

From a technical implementation perspective, the core of the ERC-5169 standard is the introduction of the scriptURI() function. Through this function, token contracts can point to an externally stored script address, which can contain any form of logic, ranging from simple information display to complex application logic.

This means that developers can add additional functionality to tokens, such as automated trading, conditional execution, data retrieval, etc., greatly expanding the application scenarios and potential of tokens.

Developers use the scriptURI() function to specify the location of the external script associated with the token, which is typically a URL pointing to a script file stored on a distributed file system (such as IPFS) or other reliable storage services.

ERC-5169 not only creates feature-rich smart tokens but also drives innovation in decentralized applications (DApps) and Web3 services, providing users with a richer, more flexible, and secure digital asset experience.

Smart Layer Network

In addition to the new token standard, the core technology of Smart Layer is the provision of a decentralized service layer network, enabling tokens based on EVM to achieve more complex functionality and services.

The Smart Layer network utilizes an architecture of anchoring nodes and service nodes to maintain the stability and security of the network, while ensuring the effective distribution and access of information in the network through Distributed Hash Table (DHT) technology.

• Anchoring Nodes: Responsible for monitoring and maintaining the overall health of the network, allocating tasks to service nodes, monitoring the execution of Service Level Agreements (SLAs), and managing the recording and submission of token operations.
• Service Nodes: Execute specific service tasks, such as data storage and content distribution, and are rewarded through incentive mechanisms based on the efficiency and quality of their execution.

The Smart Layer network differs from traditional public blockchains in that it focuses on real-time monitoring and load balancing, with anchoring nodes playing a crucial role. These nodes act as guardians of the network, ensuring consistent service availability and intervening during critical moments.

These anchoring nodes share information through a Distributed Hash Table (DHT) to determine task allocation when serving smart token services.

This decentralized approach not only reduces potential attacks that may arise from matching node IDs with token IDs but also ensures timely responses to integrated queries. In this way, anchoring nodes collaborate with their peers to maintain a distributed hash table, enabling the lookup of service nodes for any given smart token.

Through this design, Smart Layer aims to provide an efficient and flexible backend service platform for decentralized applications (DApps), decentralized finance (DeFi) services, and other blockchain-based applications, greatly expanding the applicability and depth of blockchain technology in the real world.

The two main components of Smart Layer technology work together to extend the functionality of tokens on the EVM public blockchain while providing infrastructure for these functions through its network technology. This cleverly combines public blockchain technology with the Web3 vision..

03 Ecosystem and Interaction

According to the official website, the SLN token is scheduled to launch in early 2024, with specific details pending updates from the project team. Currently, Smart Layer is conducting the Smart Pass points activity, with the team indicating that Smart Pass points are directly related to future airdrops.

Smart Pass is a set of developer tools created by the Smart Layer team for Web3 user and community growth. It not only promotes the development of the Smart Layer ecosystem but also serves other Web3 projects to accelerate product usage or community participation.

Interactive Tasks:

Users can register their Pass using their email address in the top right corner of the Smart Layer website. After registration, two sections of the activity area will be displayed:

• Quest: The Pass will dynamically sync with the total number of points. Users can earn points by completing quests. These tasks are relatively simple and do not require additional costs. Users only need to link their wallets and complete various social media tasks. It’s important to note that each wallet address has only one opportunity to bind the Pass card, meaning the wallet and email address are bound to each other and cannot be unlinked after connection. Additionally, because it may be related to future airdrops, it’s important to prioritize completing the tasks of binding the wallet before earning points to prevent being unable to receive airdrops after the snapshot.
• Perks: The Perks Hub is where Smart Layer Pass holders can apply for rewards, benefits, and opportunities. The Perks Hub offers various rewards, benefits, and opportunities, which may include exclusive discounts, access to premium content, early access to new features, and more. Over time, these benefits will be regularly updated and expanded to provide ongoing value to Smart Layer Pass holders.

Currently, there are three tasks included in Perks, among which the third-party task JoyID allows users to earn 1500 points without any cost, and participating also offers the chance to receive future JoyID rewards. The other two tasks are native gaming tasks of Smart Layer, requiring ownership of Smart Cat NFTs. Currently, the issuance volume of this NFT exceeds 940,000 tokens, and both recent trading volume and floor price have been steadily increasing, indicating an expansion in demand.

Users can interact with Smart Cat daily to earn points, with each interaction earning 25 points. Users can interact up to 15 times per day. Additionally, users can earn additional rewards by feeding Smart Cat to level up: 500 points at level 7, 1200 points at level 10, 2500 points at level 14, 3000 points at level 17, and 3500 points at level 20.

Users can interact with Smart Cat using the Android and iOS versions of the Alpha Wallet or, in the absence of a compatible TokenScript wallet, using the TokenScript Viewer.

Open Source Ecosystem:

In addition to the achievements of the Smart Layer ecosystem showcased on the official website, Smart Layer is also committed to contributing to the Ethereum community.

The team has been closely monitoring market trends, and after the emergence of ERC404, they launched an open-source improved version called ERC404 protocol. This protocol integrates features from ERC404 V2, ERC5169, and TokenScript. By incorporating ERC5169 and TokenScript as the frontend for ERC404 tokens, leveraging TokenScript as an HTML-like frontend framework for tokens, the ERC404 protocol has been standardized, enabling standardized token display and interaction.

Furthermore, the ERC404 protocol not only enhances security and user experience but also extends its use cases beyond collectibles. It incorporates ERC-5169 and TokenScript into ERC404 tokens as the token frontend. This modification significantly enhances the visibility and control of token holders over the transfer of ERC-20 and ERC-721 tokens. Besides, it greatly expands the usage scenarios of ERC404, such as granting membership privileges and advanced application scenarios for ERC404 accounts.

In addition to the benefits mentioned above, this improved protocol has also made the market recognize the scalable potential of Smart Layer technology itself. This integration with ERC404 demonstrates the platform’s adaptability. Furthermore, in the future, it can combine with more new technologies and narratives to expand the ecosystem of Smart Layer further.

04 Outlook

After understanding its technical and interactive aspects, it’s evident that the team’s commitment is substantial. Whether it’s the core product technologies like ERC-5169 and Smart Layer Network, or the user interaction interfaces like Alpha Wallet and TokenScript Viewer, the team has put considerable effort into pushing smart tokens into the market and developing the ecosystem.

The combination of ERC404 and Smart Layer showcases the powerful compatibility and scalability of Smart Layer technology. It also reflects the team’s strong capabilities - not only in terms of technical proficiency and high development efficiency but also in understanding the market with acute sensitivity.

In conclusion, Smart Layer has filled the narrative gap in Web2 and Web3, providing the industry’s first comprehensive solution to the problem of integrating traditional blockchain technology with the Web3 vision. It’s believed that after the official launch of the mainnet incentives, its ecosystem will further expand.

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