Distributed Service Network
A Distributed Service Network, exemplified by TheGraph, consists of nodes that deliver web services. Smart Layer extends this concept by incorporating an execution component (akin to AWS Lambda), forging read/write connections to blockchain and token issuer systems, and incentivizing service level agreements with tokens.
Smart Layer is designed to operate as a Distributed Service Network, but it differs significantly from a typical blockchain system.
Unlike a blockchain, Smart Layer does not use tokens to incentivize nodes to provide services, such as answering token API calls. Instead, it relies on existing blockchain systems, like Ethereum, to enforce rule-based transactions. Therefore, Smart Layer is more of a blockchain application than a blockchain itself.
This design choice means that Smart Layer cannot operate without an existing, secure blockchain system. The creators of Smart Layer believe that we don't need a new blockchain to solve the limitations of Web 2.0 and enable limitless integration, address novel use-cases. Instead, what's needed is a layer on top of the blockchain that serves as an integration bus between the web and the blockchain.
Here's a comparison table that outlines the differences between Smart Layer and a typical blockchain:
Aspect | Smart Layer | Typical Blockchain |
|---|---|---|
System Type | Distributed Service Network | Decentralized Ledger |
Token Use | Tokens incentivize nodes to provide web services. These are paid by integrations (use-cases). | Tokens incentivize nodes to secure the ledger transactions. These are paid by transaction senders. |
Consensus Layer | Not present | Present |
Dependency | Depends on existing blockchain systems | Independent |
Role | Provide web services just like Google APIs, but not centralised. To the underlying blockchain, it's a blockchain application. | Acts as a blockchain itself |
Nodes | Two types: elected anchoring nodes (not anonymous) and anonymous service nodes with varying service level objectives. | Anonymous nodes, often designed to be equal. |
Integration | Acts as a bridge between the web and blockchain, enabling various use-cases | Allows direct interaction with applications, primarily for digital asset ownership |
Blockchain Footprint | Uses commitments, which summarize critical token operations within a block time. These are written by a bridge contract. | Uses blocks, which contain a sum of transactions within a block time. |
Block Creation | No blocks are created. Periodic commitments are written by the on-duty anchoring nodes into the bridge contract storage. | Blockchain nodes create blocks, but do not write to any contracts. |
And here's a comparison table between Smart Layer and TheGraph
Aspect | Smart Layer | TheGraph |
|---|---|---|
System Type | Distributed Service Network | Distributed Service Network |
Execution Component | Present (similar to AWS Lambda) | Absent |
Blockchain Connection | Read/Write connections to blockchain and token issuer systems | Read-only connection to blockchain |
Incentive Mechanism | Service level agreements incentivized by tokens | Query fees incentivized by tokens |
Service Nodes | Two types: anchoring nodes (elected, not anonymous) and service nodes (anonymous, can pledge to different service level objectives) | Indexers (stake tokens to provide services) |
Data Processing | Can process and execute code, embeds encryption logic for token privacy | Can process and serve data, but cannot execute code. Doesn't encrypt data |
Authenticity | Key token operations results in commitments to its underlying blockchain. API responses carry proof linking to the commitments. | Query responses are trusted based on the reputation of the indexer. Complex cross-referenced queries are not inherently verifiable. |