From 8184231f53b2e6ffc8409f34e84ae1588a578461 Mon Sep 17 00:00:00 2001 From: Weiwu Zhang Date: Tue, 14 Nov 2023 18:51:19 +0100 Subject: [PATCH] copyedit --- src/papers/smart-layer-technical-paper.md | 56 +++++++++++------------ 1 file changed, 28 insertions(+), 28 deletions(-) diff --git a/src/papers/smart-layer-technical-paper.md b/src/papers/smart-layer-technical-paper.md index 8682da5..62d962d 100644 --- a/src/papers/smart-layer-technical-paper.md +++ b/src/papers/smart-layer-technical-paper.md @@ -2,52 +2,52 @@ title: "Smart Layer: A Decentralised Integration Protocol for the Next-Generation Web" date: "1st September, 2023; Revised on: 14th November, 2023" abstract: | - The evolution of the Web has been marked by significant shifts, from the site-centric Web 1.0 to the application-oriented Web 2.0. However, this evolution has also led to centralisation and a stifling of innovation. This paper introduces Smart Layer, a decentralised protocol designed to facilitate the next generation of web use-cases. Leveraging the concept of Smart Tokens, Smart Layer aims to decentralise trust anchors, thus fostering a more vibrant and integrated web ecosystem. This whitepaper delves into the architecture, design, and potential of Smart Layer, and its token. + The evolution of the Web has been marked by significant shifts from the site-centric Web 1.0 to the application-oriented Web 2.0. However, this evolution has also led to centralisation and a stifling of innovation. This paper introduces Smart Layer, a decentralised protocol designed to facilitate the next generation of web use-cases. Leveraging the concept of Smart Tokens, Smart Layer aims to decentralise trust anchors, thus fostering a more vibrant and integrated web ecosystem. This whitepaper delves into the architecture, design, and potential of Smart Layer and its token. --- # Introduction The evolution of the Web has been marked by significant shifts, each bringing new paradigms and challenges. From the *Information super-highway* model of Web 1.0 to the application-oriented Web 2.0, the Web has grown increasingly integrated. However, this evolution has also led to centralisation, with a few dominant entities forming the foundational base. This centralisation has inadvertently stifled innovation and competition, resulting in a web ecosystem that is fragmented and constrained by the strategic priorities of these entities[@stl2023]. -To challenge this status quo, we introduce Smart Layer, a decentralised protocol designed to reshape the Web’s architecture by utilising Smart Tokens as the main integration points. These Smart Tokens, as introduced in our previous paper [@stl2023], are the decentralised instantiation of Trust Anchors, thereby enabling a more equitable and participatory Internet that amplifies user experience and fosters a new wave of web innovation. +To challenge this status quo, we introduce Smart Layer, a decentralised protocol designed to reshape the Web's architecture by utilising Smart Tokens as the primary integration points. These Smart Tokens, as introduced in our previous paper [@stl2023], are the decentralised instantiation of Trust Anchors, thereby enabling a more equitable and participatory Internet that amplifies user experience and fosters a new wave of web innovation. -Smart Layer is designed to function as a distributed network, serving as the backbone for the next generation Web, enabling Smart Tokens to act as trust anchors. It does so by providing a runtime environment for the execution of TokenScripts, an evolving OASIS standard that defines the packaging, distribution, and operation of these tokens. +Smart Layer is designed to function as a distributed network, serving as the backbone for the Next-Generation Web [@stl2023], enabling Smart Tokens to act as trust anchors. It does so by providing a runtime environment for the execution of TokenScripts, an evolving OASIS standard that defines the packaging, distribution, and operation of these tokens. -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. +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, currently part of the Ethereum Enterprise Alliance (EEA) project, is a pivotal component in the development of the Smart Layer ecosystem. This scripting framework merges token code with essential declarative components, enabling these tokens to function effectively as Trust Anchors. TokenScript plays a crucial role in defining the packaging, distribution, and operational aspects of these tokens, as well as establishing the communication protocols for interactions between the tokens and their respective web integrations. -Originally an initiative under the EEA, a collaboration project between the Ethereum Foundation and OASIS, TokenScript aims to standardise 3 elements of the Smart Token ecosystem: the Token Runtime Environment, the TokenScript file format and Attestations. The trajectory of TokenScript is set towards achieving a standard status in the coming years. As it stands, TokenScript's dual role is instrumental in ensuring that Smart Tokens adhere to essential principles of trust, interoperability, privacy, and security, thereby enabling them to act as decentralised Trust Anchors within the Smart Layer protocol. +Originally an initiative under the EEA, a collaboration project between the Ethereum Foundation and OASIS, TokenScript aims to standardise three elements of the Smart Token ecosystem: the Token Runtime Environment, the TokenScript file format and Attestations. The trajectory of TokenScript is set towards achieving a standard status in the coming years. As it stands, TokenScript's dual role is instrumental in ensuring that Smart Tokens adhere to essential principles of trust, interoperability, privacy, and security, thereby enabling them to act as decentralised Trust Anchors within the Smart Layer protocol. ## 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). +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 separate future specification akin to Ethereum's Yellow Paper). # Problem statement -Dr. Gavin Wood has attributed the centralisation of the web to a combination of factors, including network effects, economies of scale, big data ownership, and intellectual property laws[@wood2017]. This centralisation has resulted in a web landscape that heavily relies on a few dominant Trust Anchors, which are essential services that web applications depend on for their core functions. These Trust Anchors are often provided by major internet entities such as Google, Facebook, and Apple. For instance, most websites today integrate with services like Google's or Facebook's authentication services, or Apple's payment service, which serve as Trust Anchors. +Dr Gavin Wood has attributed the centralisation of the Web to a combination of factors, including network effects, economies of scale, big data ownership, and intellectual property laws[@wood2017]. This centralisation has resulted in a web landscape that heavily relies on a few dominant Trust Anchors, which are essential services that web applications depend on for their core functions. These Trust Anchors are often provided by major internet entities such as Google, Facebook, and Apple. For instance, most websites today integrate with services like Google's or Facebook's authentication services or Apple's payment service, which serve as Trust Anchors. In our other paper on Smart Tokens[@stl2023], we delved into the concept of Trust Anchors and their role in the centralisation of the Web. We argued that Trust Anchors, essential services the web ecosystem relies on, have inadvertently led to the centralisation of the Web, stifling innovation and competition. -The current web ecosystem operates under a paradigm where new entrants are beholden to the established trust anchors, which act as gatekeepers of progress. This dynamic has led to a web landscape that, while ostensibly advancing under the leadership of tech giants, is in fact characterised by a latent inertia. Innovators find themselves in a position analogous to infantry in an army, where their advance is not limited by their own capabilities but by the strategic decisions of the commanding officers. The result is a web environment that is less a meritocracy of ideas and more a hierarchy of trust, with innovation potential tethered to the discretion of a few dominant entities. +The current web ecosystem operates under a paradigm where new entrants are beholden to the established trust anchors, which act as gatekeepers of progress. This dynamic has led to a web landscape that, while ostensibly advancing under the leadership of tech giants, is - in fact - characterised by a latent inertia. Innovators find themselves in a position analogous to infantry in an army, where their advance is not limited by their own capabilities but by the strategic decisions of the commanding officers. The result is a web environment that is less a meritocracy of ideas and more a hierarchy of trust, with innovation potential tethered to the discretion of a few dominant entities. This lack of innovation and integration can be attributed to two (2) main factors. -First, as Internet applications become dependent on 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[@winter2018] that could facilitate trustless interactions between parties, this trust problem was not resolvable without massive, centralised Internet companies as the trust anchors. +First, as Internet applications become dependent on 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[@winter2018] that could facilitate trustless interactions between parties, this trust problem was not resolvable without massive, centralised Internet companies as the trust anchors. Second, the complexity of the system grows quadratically with the growth of the number of integrations used. -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. +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, 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 compartmentalised structure, where centralised entities offer piecemeal solutions. +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 compartmentalised structure, where centralised 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 and enable innovation. 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. +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 and enabling innovation. 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. # 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 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. -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 user’s mobile phone about a delayed flight, or interface with a healthcare system to offer a diagnosis, even if the flight tickets and user’s 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. +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 user's mobile phone about a delayed flight, or interface with a healthcare system to offer a diagnosis, even if the flight tickets and user's 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 @@ -66,7 +66,7 @@ Smart Layer's design and functionality hinge on protocol requirements crafted fo - **Authenticity**: The integrations should be able to verify the authenticity of the result of the Service TokenScript code executed on the smart layer network, and the network shouldn't rely on the integrations verifying this alone for operational integrity. - **Serviceability**: This encompasses continuous uptime, redundancy, and load balancing. While mature industrial technology can meet these requirements, their application within Smart Layer is influenced by other interconnected requirements. - **Privacy and Security**: Smart tokens distribute their logic between user agents (like decryption of sensitive data) and server-side logic (such as triggers set within the tokens). This paper primarily addresses the server-side logic executed by the Smart Layer network. -- **Token Lifecycle Management**: This pertains to the management of smart tokens throughout their existence. Considerations include the duration a flight ticket smart token resides on a node and the mechanisms to reinstate tokens that are in dormant states, such as a car-insurance token awaiting activation. +- **Token Lifecycle Management**: This pertains to the management of smart tokens throughout their existence. Considerations include the duration a flight ticket smart token resides on a node and the mechanisms to reinstate tokens that are in dormant states, such as a car insurance token awaiting activation. - **Inter-node Collaboration**: Nodes within the Smart Layer network are expected to work together to facilitate specific token functions. For example, a smart car token's status could be influenced by its registration, insurance, and maintenance tokens, potentially managed on different nodes. Integrations expect smooth interactions between nodes, allowing them to concentrate on the capabilities provided by smart tokens rather than managing their intricacies. - **Incentive Structure**: The cost of operating a token is typically borne by the integration. For instance, if a health token is used by a website to optimise a user's shopping list, the e-commerce platform incurs the cost. However, token issuers play a pivotal role in ensuring the availability and operability of their tokens on the network. They must incentivise the network to maintain the token's availability, even as the actual operation costs are met by integration points. @@ -74,9 +74,9 @@ It is essential to differentiate these requirements from those of TokenScript. W # Smart Layer Architecture -Smart Layer's architecture is rooted in mature protocols and algorithms that have been proven effective in distributed systems, including blockchain itself, distributed hash table, load balancing and service level objective monitoring, and the use of Merkle tree in data integrity verification. These foundational technologies provide the basis for building Smart Layer as a robust, decentralised network tailored for token operations. The innovation primarily stems from the creation of an integration service platform and a conducive environment for smart tokens, encouraging existing web infrastructure to transition towards a token-centric architecture. +Smart Layer's architecture is rooted in mature protocols and algorithms that have been proven effective in distributed systems, including blockchain itself, distributed hash tables, load balancing, service level objective monitoring, and the use of Merkle trees in data integrity verification. These foundational technologies provide the basis for building Smart Layer as a robust, decentralised network tailored for token operations. The innovation primarily stems from the creation of an integration service platform and a conducive environment for smart tokens, encouraging existing web infrastructure to transition towards a token-centric architecture. -The primary serviceability requirement determined that the network cannot be built like a blockchain, where consensus serves to determine truth; instead, services must be monitored and load-balanced in real time. This leads to the need for anchoring nodes. +The primary serviceability requirement determined that the network cannot be built like a blockchain, where consensus serves to determine truth; instead, services must be monitored and load-balanced in real-time. This leads to the need for anchoring nodes. ## Anchoring Nodes and Distributed Smart Token Instances @@ -151,11 +151,11 @@ To better understand the intricacies of the Smart Layer network, let's delve int ### Read-Only Access -Imagine the user booked a car rental at the rental website, using the smart token on this website. This creates an authorisation for the car rental to access the flight ticket smart token interfaces. When the car rental service wants to verify if your flight is on time, any node that has this smart token instance can provide a read-only API to share the flight's current status, and the selection of the node is largely a matter of load balancing. This process is facilitated by any of the nodes where the smart token is instantiated and selected at random. +Imagine the user booked a car rental at the rental website using the smart token on this website. This creates an authorisation for the car rental to access the flight ticket smart token interfaces. When the car rental service wants to verify if your flight is on time, any node that has this smart token instance can provide a read-only API to share the flight's current status, and the selection of the node is largely a matter of load balancing. This process is facilitated by any of the nodes where the smart token is instantiated and selected at random. ### Single Execution by Elected Node -Now, consider a significant flight delay. This delay might trigger the smart token to rebook your hotel reservation. Since this action interacts with the external world and can have financial implications, it is crucial that only one node executes it. Once the rebooking is successful, the hotel system might generate a new booking attestation, confirming the change. +Now, consider a significant flight delay. This delay might trigger the smart token to rebook your hotel reservation. Since this action interacts with the external world and can have financial implications, it is crucial that only one node executes it. Once the rebooking is successful, the hotel system might generate a new booking attestation to confirm the change. However, what if there's a failure? What if the node trying to rebook the hotel faces multiple timeouts when accessing the hotel's API? After a set number of failures, from the network point of view, an event occurred that the token failed to move to the next state. The traffic to the hotel system API would be rerouted through the anchoring node that elected the original executor. This anchoring node can then verify server timeouts or other errors and provide a failure attestation to move the smart token to the next state. Frequent routing of this nature triggers service level agreement to scrutinise the node that was responsible for execution. @@ -169,7 +169,7 @@ In the Smart Layer architecture, the dynamic status of smart tokens is predomina Traditional gossip protocols, inspired by the way information (or gossip) spreads in social networks, have been a staple in distributed systems. They ensure that data is disseminated quickly and efficiently across a network. However, the unique requirements of Smart Layer, especially the need for ordered delivery of attestations and the ability to request missing attestations, demand a more sophisticated approach. -The unique requirements include selective gossiping where an attestation covers a type of smart tokens or a subset of smart tokens in that type, the timely update needed for integration to function, order and integrity, plus compatibility with a subscription model. This calls for a hybrid mechanism, which marries the strengths of gossip protocols with the features of systems like Apache Kafka. While gossip protocols ensure rapid dissemination, systems akin to Apache Kafka ensure that these attestations are delivered in order and allow nodes to request specific attestations they might have missed. +The unique requirements include selective gossiping, where an attestation covers a type of smart tokens or a subset of smart tokens in that type, the timely update needed for integration to function, order and integrity, plus compatibility with a subscription model. This calls for a hybrid mechanism, which marries the strengths of gossip protocols with the features of systems like Apache Kafka. While gossip protocols ensure rapid dissemination, systems akin to Apache Kafka ensure that these attestations are delivered in order and allow nodes to request specific attestations they might have missed. ### How It Might Work @@ -223,7 +223,7 @@ Anchoring nodes, which play a central role in the network's operation, maintain The tokenomics is structured in a way that allows token issuers, while paying a nominal rent, to write their token contract in a way that profits from the broader ecosystem. -Token contracts can dictate revenue derived from various "business" operations facilitated by the smart tokens. For instance, a token issuer might collaborate with multiple integrations, each offering a unique service or benefit associated with the token. Every interaction with the token, whether it is a query or an update, translates to a micro-transaction. This is because unlike industrial smart tokens, some community smart tokens may need the cumulative value of these micro-transactions. +Token contracts can dictate revenue derived from various "business" operations facilitated by the smart tokens. For instance, a token issuer might collaborate with multiple integrations, each offering a unique service or benefit associated with the token. Every interaction with the token, whether it is a query or an update, translates to a micro-transaction. This is because, unlike industrial smart tokens, some community smart tokens may need the cumulative value of these micro-transactions. Furthermore, integrations, by leveraging smart tokens, can offer enhanced services to their users. This improves user experience and may open up new revenue streams for the integrations. For instance, an e-commerce platform can offer personalised shopping recommendations based on a user's health token, leading to increased sales and customer satisfaction. @@ -235,25 +235,25 @@ Smart Layer's architecture is inherently designed to be modular and interoperabl This positions IPFS more as a retrieval service than a web service, lacking a Virtual Machine (VM) for code execution. -Smart Layer offers the option to use IPFS for storage, particularly when the higher costs associated with Smart Layer's features like load balancing and Service Level Agreements (SLAs) become a concern. This strategic alignment allows Smart Layer to maintain its lightweight nature while ensuring data integrity and availability, key attributes that are indispensable for any decentralised application (dApp). +Smart Layer offers the option to use IPFS for storage, particularly when the higher costs associated with Smart Layer's features, like load balancing and Service Level Agreements (SLAs), become a concern. This strategic alignment allows Smart Layer to maintain its lightweight nature while ensuring data integrity and availability, key attributes that are indispensable for any decentralised application (dApp). ## Chainlink Smart Layer's collaboration with Chainlink significantly enhances its capabilities, particularly in the area of decentralised oracles. Chainlink is renowned for its decentralised oracle services, which provide secure and reliable data feeds to smart contracts. However, Chainlink's primary focus is on linking external data to blockchain environments, rather than enabling smart tokens as integration points. It does not concern itself with providing token interfaces for specific use-cases like smart flight tickets. -On the other hand, Smart Layer adopts a token-oriented approach, where smart contracts act as trust anchors. This architecture allows for a separation between rule enforcement and execution logic, offering greater flexibility in application development. By integrating Chainlink's robust oracle services, Smart Layer can access real-world data, thereby enabling more complex smart contracts that can interact with external APIs, IoT devices, and other data sources. This synergistic relationship broadens the scope of applications that can be built on Smart Layer, ranging from decentralised finance (DeFi) to supply chain management and beyond, while also providing the necessary infrastructure for specialised token interfaces. +On the other hand, Smart Layer adopts a token-oriented approach, where smart contracts act as trust anchors. This architecture allows for a separation between rule enforcement and execution logic, offering greater flexibility in application development. By integrating Chainlink's robust Oracle services, Smart Layer can access real-world data, thereby enabling more complex smart contracts that can interact with external APIs, IoT devices, and other data sources. This synergistic relationship broadens the scope of applications that can be built on Smart Layer, ranging from decentralised finance (DeFi) to supply chain management and beyond, while also providing the necessary infrastructure for specialised token interfaces. -This distinction in scope allows each platform to excel in its area of expertise, while their integration offers a more comprehensive and versatile solution for decentralised applications. +This distinction in scope allows each platform to excel in its area of expertise while their integrations offer a more comprehensive and versatile solution for decentralised applications. ## TokenScript -TokenScript is a direct dependency of the Smart Layer technology stack. The same team that has been instrumental in the development of TokenScript has also been responsible for Smart Layer. This team's work on TokenScript has been recognised by the OASIS Standardization body as part of its collaboration with the Ethereum Foundation. While Smart Layer aims to provide a robust integration infrastructure for the next generation web, TokenScript focuses on standardizing token interfaces, behavior code, and attestation mechanisms. These elements are essential dependencies for the Smart Layer network. +TokenScript is a direct dependency of the Smart Layer technology stack. The same team that has been instrumental in the development of TokenScript has also been responsible for Smart Layer. This team's work on TokenScript has been recognised by the OASIS Standardization body as part of its collaboration with the Ethereum Foundation. While Smart Layer aims to provide a robust integration infrastructure for the Next-Generation Web, TokenScript focuses on standardising token interfaces, behaviour code, and attestation mechanisms. These elements are essential dependencies for the Smart Layer network. -The integration of TokenScript into Smart Layer is a fundamental requirement for the latter's operation. TokenScript's XML-based token markup language enables a modular approach to dependency-based token interoperabilities. For example, it allows the insurance industry to establish standardised interfaces for smart insurance tokens. Utilising TokenScript's editors and deployment tools, developers can define token behavior without writing XML directly, using familiar languages like JavaScript to control a token's runtime, whether in a wallet or within the Smart Layer network. +The integration of TokenScript into Smart Layer is a fundamental requirement for the latter's operation. TokenScript's XML-based token markup language enables a modular approach to dependency-based token interoperabilities. For example, it allows the insurance industry to establish standardised interfaces for smart insurance tokens. Utilising TokenScript's editors and deployment tools, developers can define token behaviour without writing XML directly, using familiar languages like JavaScript to control a token's runtime, whether in a wallet or within the Smart Layer network. ## Conclusion -In conclusion, Smart Layer integrates IPFS as an optional storage solution, benefiting from its mature implementations of distributed hash tables, but does not rely on it for runtime operations. Chainlink serves as a source of attestations and is an optional component, the utilisation of which is contingent upon specific smart token authorizations. Unlike IPFS and Chainlink, TokenScript is not an infrastructure but a standard for defining smart tokens. It serves as a direct dependency, essential for the functionality and interoperability within the Smart Layer ecosystem. +In conclusion, Smart Layer integrates IPFS as an optional storage solution, benefiting from its mature implementations of distributed hash tables, but does not rely on it for runtime operations. Chainlink serves as a source of attestations and is an optional component, the utilisation of which is contingent upon specific smart token authorisations. Unlike IPFS and Chainlink, TokenScript is not an infrastructure but a standard for defining smart tokens. It serves as a direct dependency, essential for the functionality and interoperability within the Smart Layer ecosystem. # Design Considerations and Summary @@ -267,10 +267,10 @@ The protocol is also designed to accommodate emerging scenarios, such as smart l Contrary to the notion that the protocol's success depends solely on adoption by Internet giants, the true power of Smart Layer lies in its ability to democratise Trust Anchors and connect various stakeholders. The next-generation Web will likely be a mosaic of localised innovations tailored to specific industries and users. In this context, Smart Layer aims to serve as a flexible and adaptable foundation, enabling anyone to develop and maintain Trust Anchors in the form of Smart Tokens, thereby fostering a more vibrant and integrated web ecosystem. -The protocol emphasises a layered design approach, focusing on provisioning smart tokens as a robust mechanism. This allows for the development of more complex features and applications atop this foundational layer, without getting entangled in the specifics of individual tokens. +The protocol emphasises a layered design approach, focusing on provisioning smart tokens as a robust mechanism. This allows for the development of more complex features and applications atop this foundational Layer without getting entangled in the specifics of individual tokens. ## Summary and Implications In this paper, we have presented Smart Layer as a protocol designed for decentralised integration in the next-generation Web. The protocol leverages smart tokens to facilitate interactions between various web services, sidestepping the need for centralised entities. Unlike tokenised assets, which are primarily designed for trading, smart tokens in this protocol are engineered for specific applications. This focus aligns with the evolving technological landscape and its emerging use-cases. -As the paper concludes, it's worth noting that the protocol is not a static entity but a continually evolving framework. It aims to contribute to a more interconnected web ecosystem, and as such, invites ongoing engagement from developers and stakeholders for its further refinement and expansion. +As the paper concludes, it's worth noting that the protocol is not a static entity but a continually evolving framework. It aims to contribute to a more interconnected web ecosystem and as such, invites ongoing engagement from developers and stakeholders for its further refinement and expansion.