The internet's landscape is evolving towards a decentralised, user-empowered future known as Web3. In this paradigm shift, architects and developers must adopt fresh approaches to building blockchain applications. This article explores the essential components and considerations for designing a robust Web3 blockchain application, using a hypothetical aviation parts trading and tracking platform as a case study.

The Web3 Development Journey

Embarking on the Web3 development journey necessitates a comprehensive grasp of its multifaceted process. While this article primarily delves into Architecture Design, a holistic understanding of Web3's evolution is paramount. This journey typically comprises several key phases. Firstly, acquainting oneself with foundational Web3 technologies such as blockchains and smart contracts lays the groundwork. Subsequently, identifying Web3 Opportunities entails scrutinising the chosen domain to discern areas ripe for Web3's unique advantages. Thereafter, Web3 Solution Ideation involves brainstorming and crafting innovative solutions imbued with Web3 principles. Architecture Design, the focal point of this article, entails constructing a robust and scalable infrastructure for a Web3 blockchain application. Following this, executing Proof of Concept (POC) aids in preemptively addressing design flaws and optimising resource allocation by identifying potential issues at an early stage. Finally, Prototyping culminates in the creation of a more functional prototype or Minimum Viable Product (MVP), facilitating user testing and feedback to refine the application's efficacy further.

Core Components and Considerations

Smart Contracts, Web3 Wallets, and Decentralised Identity (DID) standards interact to form the backbone of Web3 blockchain applications. Smart Contracts, functioning as self-executing programs on the blockchain, harness on-chain data and code, such as NFTs and custom data objects, to establish rules and automate processes within the application.

To comprehend Web3 architecture, it's essential to grasp some key terms:

• NFTs (Non-Fungible Tokens): Imagine unique digital certificates stored on a blockchain. These can represent ownership of digital assets like artwork, collectibles, and even in-game items. Each NFT is one-of-a-kind and irreplaceable.
• Custom Data Objects: Think of these as pieces of information created by smart contracts and stored directly on the blockchain. They can be simple text or numbers, or even complex data structures. Smart contracts have full control over creating and managing these data objects.
• Off-chain Data/Code: Off-chain data refers to user information, such as details collected during onboarding and images or videos of specific components, that is not stored on the blockchain through smart contracts. Instead, this data is kept in centralised databases outside of the blockchain.

Web3 Wallets serve as secure digital repositories for users to manage cryptocurrency and engage with decentralised applications (dApps) on blockchains. Users may require a Web3 wallet to interact with the application, facilitating activities like purchasing or trading NFTs. Self Sovereign Identity (SSI), an emerging concept, empowers users to manage their digital identity data autonomously. Envision a future where users can verify their identity to the application using an SSI solution, liberating them from dependence on centralised authorities. Understanding these fundamental components and their interconnections equips developers to make informed choices regarding on-chain versus off-chain data storage and to design an optimised architecture for their Web3 blockchain application.

Case Study: Aviation Parts Platform

Creating an effective aviation parts trading and tracking platform involves considerations such as identifying the target audience, mapping out the user journey, defining user onboarding processes, and designing a robust data model. Smart contracts are favoured over NFTs for tracking aviation parts due to their ability to maintain data integrity, track multiple parts efficiently, and automate tasks.

Step 1: Map out the Data Flow

1. Seller lists a part: Seller uploads details like part number, condition, certifications, and asking price to the listing platform. This information is then reflected in the smart contract.
2. Buyer finds a part: Buyer searches the listing platform and identifies a desired part.
3. Negotiation (optional): Buyer and seller may negotiate price and terms off-chain.
4. Purchase agreement: Buyer interacts with the smart contract, locking in the agreed price (crypto or traditional currency converted at purchase).
5. Regulatory Check (optional): For safety-critical parts, the system might interact with a regulatory compliance system to verify the part meets airworthiness standards.
6. Payment Processing: The payment gateway facilitates the secure transfer of funds from buyer to seller.
7. Ownership Transfer: Upon successful payment, the smart contract automatically updates ownership of the part in the blockchain ledger.
8. Shipping and Logistics: The buyer and seller arrange physical delivery of the part outside the blockchain system.

Step 2: Brainstorm on Design Considerations

To create an effective platform, we need to consider these key factors:

• Target Audience: Identify the primary users (e.g., airlines, parts manufacturers, maintenance providers). Understanding their needs shapes platform functionalities.
• User Journey: Consider how users will interact with the platform. This includes finding parts, listing/selling parts, and managing their accounts.
• User Onboarding: Define how users will register and verify their identities on the platform, ensuring a secure and trustworthy environment.
• Data Model: Identify the core data components needed to track and manage aviation parts effectively. These might include Parts/Assets detailing part number, manufacturer, condition, service history, and location; companies such as airlines, parts suppliers, and maintenance providers; and transactions recording purchases, ownership transfers, and service events, ensuring operational integrity and traceability.

Step 3: Decide on Your Data Storage Method

While both blockchain technologies have their merits, data objects created by smart contracts are better suited for aviation parts tracking. Here's why:

• Data Integrity: Smart contract data objects can store detailed maintenance history, manufacturing data, and location information for each part, promoting transparency and informed decision-making.
• Tracking Multiple Parts: Unlike NFTs, designed for unique ownership, data objects efficiently track multiple parts of the same type, which is typical for aviation parts.
• Smart Contract Automation: Smart contracts are automated through the application layer based on defined rules. For example, they can trigger maintenance alerts when a part reaches its service life.

By focusing on these considerations and leveraging the strengths of smart contracts, we can design a platform that simplifies aviation parts management, enhances transparency within the supply chain, and improves overall operational efficiency.

Step 4: Create a Detailed Architecture Visualisation Diagram

Leveraging the design considerations, we can now visualise the platform's architecture through a detailed diagram. This diagram illustrates the key components, their interactions, and data flow:

While the focus is on on-chain architecture, integrating off-chain components seamlessly is crucial for a comprehensive solution. Off-chain functionalities include user onboarding processes, search for parts, secure payment gateways, logistics, and user interfaces.

Smart Contract Functionality

Smart contracts will be the engine powering core functionalities and ensure secure and transparent transactions within the aviation parts ecosystem as shown in the diagram below:

Off-Chain Considerations

While this article's primary focus is  on the core on-chain architecture, it is imperative to recognise the indispensable contribution of off-chain components in realising a comprehensive solution with blockchain integrations. These elements encompass essential functionalities such as user and company onboarding processes, part search mechanisms, purchasing procedures, secure payment gateways, logistics coordination, and user interface development. Seamlessly integrating these off-chain elements with the on-chain infrastructure is paramount for delivering a user-friendly and all-encompassing platform.

Here's how off-chain and on-chain elements work together for Aviation Parts Trading:

Step 5: Build a Platform

With a well-defined design in place, the next steps involve the implementation of a structured approach. The first step is the development of a PoC. This initial phase focuses on creating a basic version of the platform to validate its core functionalities and gather essential user feedback. By testing the fundamental aspects of the application in a controlled environment, developers can identify potential issues early on and refine the design accordingly.

Following the PoC, the project progresses to the development of a Prototype or MVP. In this phase, a functional version of the platform is built to a level where it can be tested by users in real-world scenarios. The Prototype/MVP allows for further refinement based on user feedback and ensures that the final product meets the needs and expectations of its intended users. Developers can fine-tune the platform's features, user experience, and performance through iterative testing and refinement, ultimately leading to a more robust and user-friendly solution.

This structured approach to development ensures that the project moves forward with a well-defined plan and a clear understanding of the development roadmap. By systematically validating core functionalities, gathering user feedback, and iteratively refining the platform, developers can minimise risks, optimise resources, and deliver a high-quality Web3 solution that meets users' needs.

Engineer the Future of Web3 Solutions with aelf

The emergence of Web3 architecture, exemplified by blockchains like aelf, heralds a transformative era in application development. By delving into the intricacies of core components, embracing decentralisation, prioritising performance optimisation, and fostering a seamless developer experience, we will journey alongside architects and developers in shaping the evolution of the internet's next chapter—Web3 Technology.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. Aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

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About aelf

aelf, the pioneer Layer 1 blockchain, features modular systems, parallel processing, cloud-native architecture, and multi-sidechain technology for unlimited scalability. Founded in 2017 with its global hub based in Singapore, aelf is the first in the industry to lead Asia in evolving blockchain with state-of-the-art AI integration, transforming blockchain into a smarter and self-evolving ecosystem.

aelf facilitates the building, integrating, and deploying of smart contracts and decentralised apps (dApps) on its Layer 1 blockchain with its native C# software development kit (SDK) and SDKs in other languages, including Java, JS, Python, and Go. aelf’s ecosystem also houses a range of dApps to support a flourishing blockchain network. aelf is committed to fostering innovation within its ecosystem and remains dedicated to driving the development of Web3, blockchain and the adoption of AI technology.

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