Navigating the Digital Frontier: Communication protocols, Identity protocols, Money protocols, Interfaces.
Educational Tuesday
Think of the Internet as an onion. The layers are the protocols that run it.
4 battlegrounds + the elusive IoT
Is there no One protocol to rule them all?
Dear readers, here’s why we keep talking about Web 3 like it’s “The greatest thing in the history of life!” … to quote Gary Vee.
We talk about Web 3 because it’s not just about websites, platforms and blockchain, there are 4 important battle grounds that are about to converge in Web 3. Battlegrounds of the digital world - of our digital self, they are about the essence of our interconnected humanity today. They are mass adopted technologies that had to exist for us to get here and now, the moment where we can begin to talk about Web 3… which is The greatest thing since “sliced bread”! YES! Ok! We know! Why? Because we now have a chance to witness the beginning of the possibility of one protocol to rule them all. Or at least, more inclusive and robust protocols that do more than just one thing.
Where’s the fight yo’?
The 4 battlegrounds are these:
Communication protocols ( electrical signals/transmission standards )
Identity protocols ( authentication and authorization standards )
Money protocols ( standards for storage and transfer of money / assets )
Interfaces ( mass adopted operating systems and web apps )
We'll start chronologically, with communication protocols:
1. Communication Protocols:
Here are the OGs, the most adopted communication protocols ever. Without these, no device would be able to communicate to another device, they’re the 4 kings that reign supreme:
TCP/IP (1970s-1980s): TCP/IP, which stands for Transmission Control Protocol/Internet Protocol, was developed in the late 1970s and early 1980s. It laid the foundation for the modern internet by providing a standardized way for computers to communicate over a network. TCP/IP is an open and widely adopted protocol.
SMTP (1982): Simple Mail Transfer Protocol (SMTP) was introduced in 1982. It is used for sending email messages between servers. SMTP is one of the fundamental protocols for email communication.
POP (Post Office Protocol) (1984): Post Office Protocol (POP) was first defined in 1984 as POP1. It allows email clients to retrieve messages from a mail server. POP3, a later version, became more popular and is still used today.
IMAP (Internet Message Access Protocol) (1986): Internet Message Access Protocol (IMAP) was developed in 1986. It's another email protocol that allows email clients to access and manage messages stored on a mail server more flexibly than POP. IMAP has become widely used for modern email applications.
Meanwhile, several communication protocols were gaining prominence or undergoing development, almost reaching the level of adoption seen by TCP/IP and email protocols. Here are a few important examples:
HTTP/3 (QUIC Protocol): HTTP/3, based on the QUIC (Quick UDP Internet Connections) protocol, was in development as a successor to HTTP/2. It aimed to improve web page loading times and security by using a new transport protocol that operates over UDP rather than TCP. HTTP/3 enhances the performance of web applications, making it a significant advancement in internet communication.
WebRTC (Web Real-Time Communication): WebRTC is a collection of protocols and APIs that enable real-time communication within web browsers. It allows for video conferencing, audio calls, and data sharing directly within web applications. WebRTC has gained widespread adoption for applications like video conferencing, online gaming, and more.
5G NR (New Radio): While not a traditional communication protocol in the same sense as TCP/IP, 5G NR is a set of standards for the fifth generation of wireless communication. It promises significantly faster data speeds, lower latency, and the ability to connect a massive number of devices simultaneously. As 5G networks continue to roll out worldwide, the standards and protocols associated with it become increasingly important.
IPv6: IPv6 is not a new protocol but is undergoing increased adoption due to the depletion of IPv4 addresses. IPv6 offers a vast address space and better support for modern internet applications. Many internet service providers and organizations are gradually transitioning to IPv6 to ensure the continued growth of the internet.
It's important to note that the adoption and prominence of communication protocols can change rapidly in the technology landscape.
2. Money transfer protocols
The transfer of money, in the only relevant context today: electronic and digital transactions, involves various financial protocols and standards to ensure secure and efficient transactions. Here are, with a varying degree of adoption, the main protocols and standards used in the transfer of money:
Automated Clearing House (ACH): ACH is a network in the United States used for electronic fund transfers and direct deposits. It's commonly used for various transactions, including payroll, bill payments, and person-to-person transfers.
Wire Transfer: Wire transfer protocols are used for transferring funds between banks, both domestically and internationally. The SWIFT (Society for Worldwide Interbank Financial Telecommunication) network is widely used for international wire transfers.
SEPA (Single Euro Payments Area): SEPA is a payment integration initiative of the European Union. It standardizes euro payments within the European Economic Area, simplifying cross-border transactions in euros.
RTGS (Real-Time Gross Settlement): RTGS systems provide real-time settlement for high-value transactions. Central banks often operate these systems to ensure secure and immediate transfers.
SWIFT (Society for Worldwide Interbank Financial Telecommunication): SWIFT is a global messaging network used by financial institutions to securely exchange information and instructions for money transfers. While it's primarily used for international transfers, it plays a crucial role in the global financial system.
ISO 20022: ISO 20022 is an international standard for financial messaging. It defines a common syntax and semantics for financial data exchange, making it easier to create and interpret messages related to money transfers, payment instructions, and more.
Blockchain and Cryptocurrency Protocols: For digital currencies like Bitcoin and Ethereum, blockchain protocols are used to record and validate transactions. These protocols ensure the integrity and security of cryptocurrency transfers.
Mobile Payment Protocols: Mobile payment services like Apple Pay, Google Pay, and various mobile wallets use a combination of secure communication protocols, tokenization, and near-field communication (NFC) to enable contactless payments.
Payment Card Protocols: Payment card transactions, such as credit card and debit card payments, rely on protocols like EMV (Europay, Mastercard, Visa) for secure chip-based transactions and various point-of-sale (POS) communication standards.
Peer-to-Peer (P2P) Payment Apps: P2P payment apps like PayPal, Venmo, and Cash App often use their own communication protocols and security measures to facilitate instant money transfers between individuals.
Open Banking APIs: In regions like the European Union and some other countries, open banking initiatives are promoting the use of standardized APIs that allow third-party providers to access financial data and initiate payments on behalf of customers.
These are just a few examples of the many protocols and standards involved in the transfer of money, each serving specific purposes within the broader financial ecosystem. The choice of protocol depends on the type of transaction, location, and the financial institutions or service providers involved.
3. Identity protocols
Authentication and Identity protocols play a critical role in ensuring the security and trustworthiness of digital systems, applications, and transactions. They are the foundation of verifying the identity of users or entities before granting access to resources. They serve as the cornerstone of digital systems. The first 4 are not perfect systems as they are centralized and have a number of vulnerabilities.
Let's delve into the world of authentication protocols and their significance:
1. Username and Password Authentication:
Overview: This is the most common form of authentication, where users provide a unique username and a secret password to gain access to an account or system.
Strengths: Simplicity and familiarity for users.
Weaknesses: Vulnerable to password breaches, phishing attacks, and user forgetfulness.
2. Multi-Factor Authentication (MFA):
Overview: MFA requires users to provide two or more forms of authentication before granting access. This typically includes something the user knows (password), something the user has (a mobile app or hardware token), and something the user is (biometric data like fingerprint or facial recognition).
Strengths: Provides an extra layer of security, making it significantly more challenging for unauthorized users to gain access.
Weaknesses: Too complex for most users, and the effectiveness depends on the implementation.
3. OAuth (Open Authorization):
Overview: OAuth is an authorization protocol rather than an authentication protocol, but it's often used for authentication in modern web applications. It allows users to grant third-party applications limited access to their resources without sharing their credentials.
Strengths: Enhanced security by not sharing passwords with third-party apps, improved user experience.
Weaknesses: Requires careful implementation to avoid security pitfalls.
4. Biometric Authentication:
Overview: Biometric authentication relies on unique biological characteristics such as fingerprints, facial features, or iris patterns to verify a user's identity.
Strengths: Difficult to forge, user-friendly, and increasingly common in mobile devices.
Weaknesses: Vulnerable to spoofing and privacy concerns (e.g., storing biometric data).
5. Blockchain-Based Authentication:
Overview: Blockchain technology can be used for decentralized and tamper-resistant authentication. Public and private keys stored on the blockchain can verify users' identities.
Strengths: High security and transparency, especially suitable for decentralized applications.
Weaknesses: Complex to implement, and user recovery can be challenging if keys are lost.
Authentication protocols are a critical component of cybersecurity and user trust in digital systems. The choice of protocol depends on the specific use case, security requirements, and user experience considerations. In today's interconnected world, robust authentication is essential for protecting sensitive data and maintaining the integrity of digital services.
4. Interfaces:
Proprietary vs. Open Source Operating Systems (1960s-1970s): The concept of proprietary and open source operating systems began in the 1960s and 1970s. Proprietary systems like IBM's OS/360 were dominant. However, the development of open-source operating systems like Unix in the early 1970s laid the groundwork for the open-source software movement.
Email Client Interfaces (1980s-1990s): In the 1980s and 1990s, email client interfaces started to evolve. Early email clients like Eudora (1988) and Microsoft Mail (1993) featured basic text-based interfaces. With the advent of graphical user interfaces (GUIs), email clients like Microsoft Outlook (1997) and Eudora Pro (1997) offered more user-friendly interfaces.
Web 2.0 Platforms (2000s): The term "Web 2.0" emerged in the early 2000s to describe a shift in web design and user interaction. Web 2.0 platforms like Facebook (2004), YouTube (2005), and Twitter (2006) introduced interactive, dynamic interfaces that allowed users to create and share content easily. These platforms also marked the rise of “social” media.
Today, over 70% of the internet infrastructure runs on Linux operating systems, open source protocols and standards.
Over 90% of all mobile operating systems are also based on free Linux operating systems (Android OS).
Communication protocols like TCP/IP, SMTP, POP, and IMAP played a crucial role in shaping how information is transmitted and received on the internet. On the interface side, the transition from proprietary to open-source operating systems, the evolution of email client interfaces, and the emergence of Web 2.0 platforms reflect the changing ways in which users interacted with technology and the internet over the years. This parallel illustrates the interconnected development of protocols and interfaces in the world of communication and technology.
The elusive IoT protocols battleground
The reason this battleground is elusive, is because the world is not decided on what an IoT protocol actually is. I mean ok, we know it involves hardware, we know it involves things talking to each other, but their interaction actually extends to more than just hardware signals, in 2 dimensions. One dimension is about the physical hardware, but the other is about the virtual or the software.
As our things get smarter and smarter, especially with the AI trend today, the ability of things to physically send signals to other devices or nodes is not enough for their creators to compete in the market so they can keep getting made. They will also have to have the ability to remain connected to the Internet permanently and to execute different type of transactions on their owner’s behalf.
The most widely adopted hardware IoT communication protocols are:
NFC (Near Field Communication):
Overview: NFC is a short-range wireless communication technology used for data exchange between devices in close proximity, typically within a few centimeters.
Use Cases: Commonly used for contactless payments, access control, and data sharing between smartphones and IoT devices.
Bluetooth:
Overview: Bluetooth is a wireless technology that allows for short-range data exchange between devices, making it ideal for connecting IoT devices in a personal area network (PAN).
Use Cases: Bluetooth is used in various IoT applications, including wearable devices, smart home automation, and healthcare monitoring.
Wi-Fi (Wireless Fidelity):
Overview: Wi-Fi provides high-speed wireless internet connectivity over a local area network (LAN), making it suitable for IoT devices that require internet access.
Use Cases: Commonly used in smart homes, industrial automation, and smart cities for IoT data transmission.
GSM (Global System for Mobile Communications):
Overview: GSM is a cellular communication standard that provides voice and data services for mobile devices over a wide area.
Use Cases: IoT applications utilizing GSM include asset tracking, remote monitoring, and smart agriculture.
4G (LTE - Long-Term Evolution):
Overview: 4G LTE is a high-speed mobile communication standard that offers faster data transfer rates than earlier generations of cellular networks.
Use Cases: Used in IoT deployments that require high data bandwidth, such as video surveillance and connected vehicles.
5G (Fifth Generation):
Overview: 5G is the latest cellular network technology, offering ultra-fast data speeds, low latency, and massive device connectivity.
Use Cases: 5G is poised to revolutionize IoT by enabling real-time applications like autonomous vehicles, remote surgery, and smart cities.
LoRa (Long Range):
Overview: LoRa is a low-power, wide-area network (LPWAN) technology designed for long-range communication with low data rates, ideal for IoT devices that need to conserve power.
Use Cases: Common in applications like smart agriculture, asset tracking, and environmental monitoring.
Sigfox:
Overview: Sigfox is another LPWAN technology that provides low-power, long-range IoT connectivity with a focus on low-cost, low-data-rate applications.
Use Cases: Used in various IoT solutions, including smart meters, supply chain tracking, and industrial monitoring.
Zigbee:
Overview: Zigbee is a wireless communication protocol designed for low-power, short-range IoT devices in a mesh network topology.
Use Cases: Widely adopted in smart home automation, lighting control, and sensor networks.
Z-Wave:
Overview: Z-Wave is a wireless protocol specifically developed for smart home IoT devices, offering low power consumption and interoperability.
Use Cases: Commonly used in smart lighting, security systems, and home climate control.
These IoT communication protocols cater to a wide range of signal transmission use cases, offering varying levels of range, data rates, power efficiency, and scalability. The choice of protocol depends on the specific requirements of the IoT application, such as power consumption, data volume, and communication range.
Here is the elusive part (software):
There’s no actual software contender for these smart things, so far everyone’s been using their own custom solutions, there is no standard for them that has any real adoption. So there’s a lot of room here for contenders.
We believe Blockchain is the most important technology that has any real shot at becoming the default foundational layer for such a protocol to exist and get adopted, and the only protocol we know of that is trying to become the first mover in this space and also has the potential to make some of the other older protocols obsolete is the open source protocol BiiP (Biospheric Identity Internet Protocol) developed by the Gratitude Token World team. If you know other IoT protocols, mention them in a comment.
The BiiP protocol is combining the idea behind all the most important protocols (except for TCP/IP) into one single protocol that can be used for both Humans and Things, and they have created a new model for such a protocol called D.U.M.M.
If you want to invest in the development of BiiP, check out this Indiegogo campaign: https://www.indiegogo.com/projects/the-end-of-social-media/reft/9515746/w3a
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