What Is the Web 3 Exchange Development Architecture?

One of the most meaningful shifts of our time has been the introduction of Web 3.0. Web-version 3.0, or Web 3.0, will be token-based and data-decentralized. Although Web 3 appears to be a natural evolution from Web 2, the infrastructure on which Web 3 applications run is radically different from that of Web 2. This differentiates building a cryptocurrency exchange on Web 3 from creating a standard Web 2.0 financial app.

Typical Features of a Modern Web-Based Application

To introduce the differences between Web 2 architecture and Web3 marketplace development, we will first provide a brief overview of Web 2 application design. To simplify, we will describe the process of creating a financial Web 2.0 application as consisting of three phases:

  • The database is the first part because it is where all the important data, like users, transactions, transaction history, etc., are stored. The users will frequently update this data.
  • The next phase entails developing the server-side logic that will form the backbone of the monetary app. It’s common for backend code to be written in Node.js, Java, or Python.
  • The final component of an app is the code that the user interacts with directly. The most common languages for this are JavaScript, HTML, and Cascading Style Sheets.

How Is the Web 3.0 Exchange App Architecturally Different?

Changes to Digital Currency Exchange Websites On Web3, an intermediary is not required for communication. In contrast to Web 2.0, the state of the application is not stored in a centralized database. The backend logic will also not be kept on a central web server. You may be curious about the location and method of data storage utilized by a Web 3 dApp.

Exchanges built on Web 3.0 use blockchain technology, which stores application states across a decentralized network of anonymous nodes. As a next step, the blockchain’s consensus protocol is applied to the problem of identifying likely changes. Blockchain’s distributed ledger design makes it impossible for any centralized entity to manipulate the state of a Web 3 exchange. In a Web 3 trade, every node helps maintain the network.

As a company that offers assistance in developing Web 3 exchanges, blockchain serves as the ecosystem’s underlying engine. Smart contracts define the logic of trading processes and act as their backend logic. Then, the blockchain or distributed ledger is used to implement these smart contracts.

An Examination of Web 3.0’s Exchange Architecture

Let’s go into more detail now:


Through a blockchain platform like Ethereum, a company offering web 3 exchange development services can create web 3 exchanges that are accessible worldwide. Anyone can use data about a machine’s state because blockchain technology allows that state to be managed across a distributed network of nodes. Because each transaction can only be recorded once, all financial data is safe.

Smart Contracts

Traditional server-side logic is supplanted in a Web 3.0 app by a smart contract stored on the Ethereum blockchain. All the reasoning behind changing states is encoded in smart contracts. These are usually built using a high-level language like Solidity or Vyper. A smart contract is a piece of software that can be read and used by anyone but can only be modified by the parties who were originally intended to benefit from it.

Ethereum Virtual Machine (EVM)

The next part of Ethereum’s framework is the Ethereum Virtual Machine. This part of the architecture must implement the rules specified by the smart contracts. The EVM then writes the updated blockchain with the results of the code execution.

The intended logic of a smart contract is revealed to the EVM upon compilation into bytecode that the EVM can understand and execute.


The front end defines the rationale for the user interface. However, this code needs to communicate with smart contracts. We understand how difficult it can be to coordinate information sharing between the front end and the smart contract because of our experience with web 3 exchange development software. Any node on the network can initiate a front-end transaction request on a web 3 exchange. You must run your node on the Ethereum blockchain software to broadcast a new transaction or use a third-party solution.

Best Blockchain for Cryptocurrency Exchange Development on Web3

When it comes to building Web 3.0 exchanges, the vast majority of developers have settled on the Ethereum blockchain for the following reasons:

  • This cryptocurrency trading app is available to anyone with an Ethereum account.
  • No restrictions exist on who can use the exchange or subscribe to the service.
  • To cover the costs of running the trading app, ETH tokens are used.
  • As a web 3.0 exchange development services provider, we have complete freedom to implement any feature requested by our customers because Ethereum is Turing-complete.


It can take a lot of time and effort for most people to fully grasp the differences between Web 2.0 app development and Web 3.0 exchange development. Having read this article, I trust you are better equipped to begin building Web3 cryptocurrency exchanges.

Comments are closed.