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title: "Smart Layer: A Decentralised Integration Protocol for the Next-Generation Web"
date: "1st September, 2023"
abstract: |
In the evolving decentralised Web, a robust integration layer bridging siloed services and tokenised assets is paramount. Smart Layer is a decentralised network designed to facilitate the next generation of web use-cases, addressing the inherent limitations of the current Web. This whitepaper delves into the architecture, design, and potential of Smart Layer and its token.
In the ever-evolving decentralised Web, a robust integration layer bridging siloed services through tokenisation is crucial. Smart Layer is a decentralised network designed to facilitate the next generation of web use-cases. As a network, it seeks to address the inherent limitations of the current Web. This whitepaper delves into the architecture, design, and potential of Smart Layer, and its token.
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# Introduction
The Web has grown increasingly integrated with the advent of Web 2.0. Integration such as, “Login with Google,” “Checkout with Apple,” and “Share with Twitter” are hallmarks of the Web2 user experience. The success of tech giants like Google has underscored the demand for integrated services. However, despite these advancements, the broader web landscape has remained fragmented. Centralised entities have emerged as dominant forces, creating isolated ecosystems that limit true integration. Though blockchain technology introduced a new paradigm which emphasised decentralisation and trustless transactions, its primary focus has been on asset tokenisation.

The Web has grown more and more integrated since the advent of Web 2.0. Integration such as "login with Google" and "checkout with Apple" are hallmarks of the Web2 user experience. The success of tech giants like Google has underscored the demand for integrated services. However, despite these advancements, the broader web landscape has remained fragmented. Centralised entities have emerged as dominant forces, creating isolated ecosystems that limit true integration. While blockchain technology introduced a new paradigm emphasising decentralisation and trustless transactions, its primary focus has been on asset tokenisation.

Smart Layer is a decentralised protocol aiming to reshape the Web's architecture. It acts as an integration hub, enabling smooth interactions between various services, much like how websites currently use platforms like Google. Beyond acting as a mere bridge, Smart Layer introduces the concept of Smart Tokens. These are tokenised digital rights and products/services that can be seamlessly integrated across various web use-cases, transcending the limitations of centralised systems and leveraging the strengths of blockchain. This protocol is designed to function as a distributed network, serving as the backbone for the next generation of the Web.

TokenScript, an evolving OASIS standard, is crucial for Smart Tokens in the Smart Layer. While Smart Layer offers the foundation, TokenScript defines the packaging, distribution, and operation of these tokens and the messaging format between these tokens and their integrations, ensuring they work within the defined parameters of trust, interoperability, privacy and security.
Smart Layer is a decentralised protocol that aims to reshape the Web’s architecture. It acts as an integration hub which enables smooth interactions between various services, much like how many websites use platforms such as Google. Smart Layer goes beyond acting as a “bridge,” and paved the way for the concept of Smart Tokens. Smart Tokens are tokenised digital rights and products/services that can be seamlessly integrated across various web use-cases. In that sense, Smart Tokens can surpass the limitations of centralised systems, and leverage the strengths of blockchain. This protocol is designed to function as a distributed network, serving as the backbone for the next generation Web.

TokenScript—an evolving OASIS standard—is critical for Smart Tokens within the Smart Layer. While Smart Layer offers the foundation, TokenScript defines the packaging, distribution, and operation of these tokens. TokenScript also establishes the messaging format between the tokens and their integrations. This ensures that they work within the defined parameters of trust, interoperability, privacy and security.
## Scope of this document
This whitepaper serves as an introduction to the novel concept, models and mechanism of Smart Layer. It discusses its potential applications in the next-generation Web. It is not intended as a guide for the implementors of Smart Layer Nodes (which is addressed in a future separate specification, akin to Ethereum’s Yellow Paper).
# Problem statement
Dr. Gavin Wood has attributed the centralization of the web to a combination of factors. These factors include network effects, economies of scale, big data ownership, and intellectual property laws. The centralization Dr. Wood identified has led to a situation where most websites today are integrated with integrations like Google or Facebook login, or Apple Pay, with several websites using all those integrations listed.

This paper serves as an introduction to the novel concept, models and mechanism of Smart Layer, discuss its its potential applications in the next-generation Web. It is not intended as a guide for implementors of Smart Layer Nodes, which is addressed in a future separate specification akin to Ethereum's Yellow Paper.

# Problem Statement

Dr. Gavin Wood has attributed the centralization of the web to a combination of factors, including network effects, economies of scale, big data ownership, and intellectual property laws. This centralization has led to a situation where most websites today are integrated with at least one of Google Login, Facebook, or Apple Pay, and many use all of them.
The harm caused by web centralization notwithstanding, it has enhanced usability tremendously. But it has also stalled the development of new integrations. This is especially evident in areas where world-renowned internet companies have no major influence, such as with airlines and purchasing tickets for flights. Central points in those areas (see Amadeus in flight booking as an example), can reach only the back offices of various websites. As a result, a flight ticket booked on one website can also be used to book a car rental on the same website, but that website only. Similar to the airline industry, in social media or e-commerce, a user reputation would work on one website exclusively.

While this centralization has enhanced usability tremendously, it has also stalled the development of new integrations. This is especially evident in areas where the big companies have no major influence, such as airline flight tickets. Central points in such areas, such as Amadeus in flight booking, can reach only the back offices of various websites. As a result, a flight ticket booked on one website can be used to book a car rental on that website only, and not on any other website. Similarly, one user's reputation works only in that website.
This lack of user-level integration can be attributed to two (2) main factors.

This lack of user-level integration can be attributed to two main factors.
First, despite the aforesaid explanations, internet centres have become trust anchors. Should an uncommon third party provide integrations (consider the prospect of using or being provided a calendar other than Google Calendar), Whether a user’s trust will be “betrayed” is brought into question. Before blockchain emerged in the form of a trust-machine that could facilitate trustless interactions between parties, this trust problem was not resolvable without massive, centralised internet companies as the trust anchors.

First, despite the reasons mentioned above, the internet centers have become trust anchors. Anyone else providing integrations, such as a calendar other than Google Calendar, is questioned if they will continue to exist or not betray to user's trust. This trust problem was not resolvable without huge centralised internet companies prior to the advent of blockchain, which can be seen as a trust machine that can facilitate trustless interactions between parties.
Second, the complexity of the system grows exponentially with the growth of the number of integrations used.

Second, the number of system complexity grows quadratically complicated as the number of integrations grow.

Due to these two reasons, the modern Web faces the "Limit of 3" challenge. Most websites are restricted to three main integrations: login, social media posting, and checkout.
Having regard to these two (2) reasons, the modern Web faces a “Limit of 3” challenge. Most websites are restricted to three (3) main integrations: login, social media posting, and checkout.

![Present Web relies on central integration points. They are the trust anchor of the Web](smart-layer-technical-paper-problem-of-3.svg)

The Web's fragmented nature has further led to fragmented user experiences. Consider the example of a flight ticket. In the current web paradigm, this ticket, while representing a token of value within its issuing platform, remains isolated. The potential for this ticket to integrate with other systems - updating travel statuses on social media, guiding users via mapping services, or communicating flight changes to hotel booking systems - remains largely untapped. Such straightforward integrations, though long overdue, are hindered by the Web's compartmentalized structure, where centralized entities offer piecemeal solutions.

This highlights the need for a paradigm shift towards a more dynamic and interconnected web ecosystem. A shift to break the limit of 3, allowing websites to connect to a bigger ecosystem outside the control of the current Internet centers, allowing integrated, not fragmented user experience. Naturally, such a new paradigm must include freely grown integration network, low integration costs, and with a design for secure, privacy-preserving mechanism to facilitate expansive integration.


# Proposed Solution: The Smart Layer Approach
The Web’s fragmented nature has, in turn, led to fragmented user experiences. Reconsider the example of an airline flight ticket. In the current web paradigm, this ticket represents a token of value within its issuing platform, but it remains isolated. The potential for the ticket to integrate with other systems—updating travel statuses on social media, guiding users via mapping services, or communicating flight changes to hotel booking systems—remains largely untapped. Such straightforward integrations, though long overdue, are hindered by the Web’s compartmentalized structure, where centralized entities offer piecemeal solutions.
Web fragmentation highlights the need for a paradigm shift towards a more dynamic and interconnected web ecosystem. This shift would consciously break the “Limit of 3,” thereby allowing websites to connect to a bigger ecosystem outside the control of the current Internet centres, while facilitating an integrated user experience. Naturally, such a new paradigm must include a freely grown integration network, low integration costs, and designs for secure, privacy-preserving mechanisms to expedite expansive integration.

To reignite web innovation and overcome centralisation issues, we need to look beyond merely creating isolated systems that sidestep today's primary web integrations. Instead, we propose building an integrated web where tokens are the main integration points. By transforming these tokens into web services, we pave the way for the next-generation Web.
# Proposed solution: the Smart Layer approach
To reignite web innovation and overcome centralisation issues, we must look beyond merely creating isolated systems that sidestep the primary web integrations of the present. In their stead, we propose to build an integrated web where tokens are the main integration points. By transforming these tokens into web services, we pave the way for the next-generation Web.

Before the advent of blockchain technology, creating such an integration system was infeasible. Any entity operating it would inevitably become a new central trust anchor. However, the emergence of public blockchains, like Ethereum, has changed the game. They introduced smart contracts that can be executed securely, offering a trust foundation that doesn't rely on the goodwill of centralised parties.
Before the advent of the blockchain, creating such an integration system was impossible. Any entity operating it would inevitably become a new central trust anchor. However, the emergence of public blockchains like Ethereum has changed things. Blockchains introduced smart contracts that can be executed securely, offering a trust foundation that does not rely on the goodwill of centralised parties.

However, merely executing smart contracts securely isn't enough for the integration demands of the next-generation Web. While smart contracts can define and enforce rules, they don't actively perform tasks. They won't notify a user's mobile phone about a delayed flight or interface with a healthcare system to update a recent diagnosis, even if the said flight tickets and user's health profiles are tokenised. These are functionalities are expected from a highly integrated web that offers a seamless user experience. To bridge this gap, we need a network providing services built atop smart contracts, playing the role of integration providers similar to how Google provided Login and Apple provided Payment integration. Smart Layer network serves this purpose.
But just executing smart contracts securely is insufficient for the integration demands of the next-generation Web. Though smart contracts can define and enforce rules, they do not actively perform tasks. They will not notify a users mobile phone about a delayed flight, or interface with a healthcare system to offer a diagnosis, even if the flight tickets and users health profiles are tokenised. These functionalities are expected from a highly integrated web that offers a seamless user experience. To bridge this gap, we need a network providing services built atop smart contracts, playing the role of integration providers not unlike Google's login and Apple's payment integration. The Smart Layer network would fulfil that purpose.

## Smart Tokens: The Heart of Integration

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