From computing, indexing to storing Web3 network revenue, the dawn has come

The popularity of Web3 has long been expected, but because of the need for infrastructure that spans computing, indexing, data management, hosting, storage, and other important services, it will take time to fully manifest.

Web3 Index: Tracking the revenue of the Web3 protocol

Data from the Web3 Index shows that after years of construction, the network usage rate of some Web3 protocols has begun to increase. Because of this use, it is often necessary to spend the original tokens of the protocol in exchange for services, and these Web3 protocols begin to generate revenue.

From computing, indexing to storing Web3 network revenue, the dawn has come

Please note that Web3 Index tracks revenue from network usage, that is, fees paid to the Web3 network, not the distribution of token rewards. The token reward income of individual participants does not always require network utilization, and the income directly generated from network usage (burning tokens, or paying for services, etc.) is a more powerful way to analyze protocol income and growth. index.

Careful observation revealed that after the peak of usage and revenue of the Web3 protocol, the revenue of the protocol decreased.

From computing, indexing to storing Web3 network revenue, the dawn has come

However, this is to be expected in early networks trying to integrate suppliers and developers to use their services. Network usage varies from network to network. For example, file storage protocols may experience share growth in the use of new NFT projects, while the use of networks such as The Graph or Livepeer will fluctuate in response to consumer demand for query or computing services. Over time, for networks with more stable demand, fluctuations in usage should become smoother.

To date, Filecoin has created the most revenue among these six Web3 protocols, and the lifetime revenue of the protocol is approximately $3.8 million.

From computing, indexing to storing Web3 network revenue, the dawn has come

Liberate the network

All of these Web3 protocols operate by providing services such as computing, storage, and bandwidth. Currently, the network requirements for these protocols are slowly increasing. For storage protocols, the surge in demand is attributed to the growth of industries such as NFT (increased demand for NFT storage on IPFS and Arweave). The demand for other protocols such as Helium and Livepeer is also growing, and new companies or developers need to use their services to build applications.


Various applications and services require computing resources. Many decentralized computing protocols achieve their functions by creating a network containing the remaining computing resources from personal devices to data centers, and provide computing power at a lower cost.

Livepeer is a market for video infrastructure providers and streaming media applications, processing millions of videos every week and generating thousands of dollars in agreement fee income.

From computing, indexing to storing Web3 network revenue, the dawn has come

Read the Livepeer report to learn more about the Livepeer network

Akash Network consists of a blockchain network and a distributed peer-to-peer market for cloud computing resources. Compared with traditional cloud providers such as AWS or Google, Akash enables developers to deploy Docker containers at a lower cost. Developers can use Docker containers to run the largest number of applications on the fewest servers.

Akash enables data centers to rent out their excess capacity, similar to Airbnb enabling homeowners to rent out underutilized bedrooms in apartments and houses. Recently, Akash announced its integration with Equinix Metal, which is one of the world’s largest infrastructure providers, with more than 220 data centers in 25 countries.


The decentralized storage platform has met the actual needs of Layer 1 and has witnessed the adoption of more and more NFT markets.

Both Filecoin and Arweave are file storage protocols. However, Arweave focuses on permanent data storage, while Filecoin provides more flexible storage solutions. In addition, the Filecoin blockchain acts as an incentive protocol for IPFS, while Arweave uses a blockchain variant called blockweave to incentivize the long-term storage of the network.

Although Filecoin generates more total revenue, Arweave has higher revenue than Filecoin in the past two quarters.

From computing, indexing to storing Web3 network revenue, the dawn has come

In fact, in the third quarter, Arweave generated revenue ahead of all Web3 protocols in the Web3 index.

From computing, indexing to storing Web3 network revenue, the dawn has come


Whether you know it or not, you use an indexer every day. Google indexes the information on the site-edits and makes it searchable. Google’s bots constantly crawl the web, index new websites, and make them available to daily Internet customers.

Similarly, The Graph is a decentralized indexing protocol that can query blockchain data without connecting to the blockchain or relying on a centralized third party. Essentially, The Graph acts as an API protocol for blockchains and protocols.

From computing, indexing to storing Web3 network revenue, the dawn has come

Learn more about The Graph network

Bandwidth and network

Helium is an open wireless network built on the Helium blockchain, which is run by a network of hardware devices (nodes) that maintain the network and transmit data. Helium implements an open LoRaWAN wireless network, which can achieve longer-distance connections and consume less bandwidth.

The usage rate of “data credits” spent on a month is increasing rapidly, which means that the amount of data transmission on the network is increasing.

From computing, indexing to storing Web3 network revenue, the dawn has come

Read the report on Helium’s recent network growth

Final thoughts on Web3

Revenue calculated by network usage more accurately reflects the growth of the network because it shows how early customers are willing to pay for Web3 services. Although it is a useful indicator, network revenue is not the only important indicator. Ultimately, the network needs to develop its supply-side business (data centers, hotspots, etc.) and demand-side (companies, developers, etc.), which helps to further increase the adoption rate.

With Ethernet Square , Cosmos, Solana, Polkadot and Terra and other block chain to achieve meaningful development, the future of the multi-chain edge being outlined.

However, the future of multi-chain does not only exist in the second layer of common smart contract protocols and their interoperability. The multi-chain world will consist of a composable Web3 protocol network, decomposing the existing Internet infrastructure. With the continuous development of the Web3 protocol, they will transition from a hard-to-use standalone protocol to a powerful application blockchain that provides services for various dapps, developers, individuals, and institutions.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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