Building a Truly Decentralized Web3.0

DFG Official
6 min readFeb 10, 2022


It is well known that the next-generation network, Web 3.0, incorporates the future of the internet where a completely decentralized network allows individuals to independently hold their digital assets and identities. This is highly concordant with the blockchain ethos. Though Web 3.0 applications like NFTs, DAO, and Metaverse are increasing in popularity and adoption, we are still interacting with Web 3.0 through well-developed Web 2.0 centralized entries. That’s the reason why innovative Web 3.0 blockchains like Saito are needed to bring hundreds of millions of end-users into the internet of value.

What is Saito?

Saito is a user-oriented Web 3.0 Layer-1 project that aims to combat centralization within blockchain infrastructure, including node operators and scalability issues that come with proof-of-work and proof-of-stake blockchains.

Applications on Saito can run without closed plug-ins, without proprietary APIs, or with an open infrastructure. The Saito network consensus is highly secure, resistant to sybil attacks, and anti-monopoly and decentralization features are integrated to ensure the openness and independence of Web 3.0.

Saito is also a Web3 Foundation grant recipient that allows blockchain applications to run directly on the browser. Instead of running through a centralized node operator paying miners and stakers to create a new blockchain, dApps can host their nodes and pay the internet service providers for their network. This protocol saves dApps money and eliminates the free-rider problem.

The Bottlenecks of Layer-1 Networks

  • Problem 1: The contradiction between block capacity and development cost

As each public chain ecosystem continues to be enriched, more and more DApps are running on top of them, which requires a high latency capacity of the underlying blockchain. Increasing block size is seen as a feasible way to increase the rate of on-chain transactions per second, but the transmission of trillions of data stored permanently on the chain is expensive and will increase the cost of running full nodes, and increasing block size will further increase the cost of running Dapp and bring about centralization problems.

  • Problem 2: Imbalance of benefit distribution

At present, there are a large number of mining and staking activities in public chain networks, but the fee that comes from user-oriented network services is insufficient, resulting in the network development relying on constrained economic drivers and not forming a sustainable economic closed loop. Various related parties in the blockchain DApp development process such as full-node service providers, bug submitters, and DApp testing participants should all receive economic rewards to jointly maintain the healthy development of the ecosystem.

The Approach of Saito

Saito operates without an owner while funding nodes that provide routing and user infrastructure for its own network and other public chains. All of this is backed by the Saito POT (Proof of transactions) Consensus, a creative underlying design of blockchain. The POT runs two algorithms, one is to define who can produce blocks (miners need to consume bandwidth to broadcast transactions on the entire network to obtain randomly generated “Golden Ticket” -the right to win block reward), the other one is to define the reward amount (block reward is distributed proportionally between Gold Ticket winners and lucky routing node).

Based on the POT mechanism, the node with the largest contribution in a block will not necessarily get the highest rewards. Instead, as long as a node makes contributions to the block, it will get a “golden ticket” to get rewards. This is not directly related to a single contribution of computational power or stake share. Then, no one will be able to compare computing power in order to get more rewards, resulting in the risk of block control rights. This is the economic principle of Saito’s solution to 51% attacks. Through the consumption of bandwidth and democratic reward mechanism, Saito can control the mining difficulty and income, thereby effectively encouraging more blockchain nodes to compete for verification and increase throughput in a sound manner.

Figure 2 Diagram of Golden Ticket System

In addition, Saito initiated the concept of temporary (transient) blockchain with an automatic transaction rebroadcasting solution that improves transaction throughputs and Dapp development. The system will remove unnecessary data at regular intervals to reduce the burden on nodes and avoid the infinite increase in the cost of the blockchain network. If users need to retain data on-chain, they must pay the recording fee (Rebroadcast Fee) in a new transaction. This approach ensures that Saito can operate efficiently and have stable cash flow, similar to those seen in traditional Internet service providers.

Successful Track Records Backed by the Web3 Foundation

In 2020, the canary network of Saito was launched. It has built demos of social and gaming products with transaction volumes exceeding 11 million. Importantly, as part of building the game platform, a brand new game engine was established. It intends to provide open-source resources to the Web3 community and was awarded a Web3 Foundation grant in November 2020.

Currently, the decentralization-focused chain has officially released the gaming platform, called Saito Arcade. It is one of the first well-developed platforms gathering several mainstream chess and card games, aiming to demonstrate the power and flexibility of building dApps on Saito with transaction volumes close to 20 million. In addition, they recently launched Saito Polkadot Arcade, where users can play games using DOT and KSM. More chains will be introduced into Saito in the near future with no doubt.

Figure 3 Saito Polkadot Arcade

Prominent Investors and Supporters

More than 20 crypto VC investors have participated in Saito fundraising rounds. Most investors are experienced and enjoy excellent investment performance including DFG, NGC, and OKEx(see below). A large number of funders showed strong confidence in Saito, which will follow rich industry and financial resources to foster the development of the project in the future.

Figure 4 Saito Investors

Growing Statistics of Mainstream Social Media

Saito has approximately 37,300 followers on Twitter and 16,343 members on the Saito Official Telegram by the end of January this year. All these numbers have been increasing in the past few months which shows Saito has a robust and growing community. The overall activity of social media keeps quite high, and publicity activities of the project are also very productive.

Figure 5 Saito Twitter Followers

Saito Highlights

  • Truly Decentralized

Saito solves the historical legacy problems of PoW and PoS systems such as wasting electricity and monopoly. It also completely eliminates the single point failure issue similar to what happened during 2020 with Infura’s crash, a centralized node operator as an example. Infura’s system was locked at that time and ran into a consensus bug that caused exchanges like Binance and Bithumb to disable ETH and ERC20 withdrawals.

  • Innovative Incentive Measures

Saito is different from mainstream POW and POS chains. It creates a very effective and feasible economic system to incentivize existing Internet Services Providers(ISPs) in a decentralized manner. It might be the first open network that can truly scale without high on-chain costs.

  • Preventing Monopoly and 51% Attacks

Saito continues to pay basic nodes rather than monopoly nodes to encourage all network nodes to participate in data processing and eliminates 51% attacks fundamentally by setting the distribution mechanism of node incentives as a security defense.

  • Developer and User Friendly

Saito has established a support layer that helps developers to freely build blockchain applications. These dApps on Saito can be run directly in the browser without plugins like Metamask installed which are easy for users to get started.


We strongly believe that Saito is one of the most important and key infrastructure projects in the Web 3.0 sector, and its development is quite significant to the evolution of a massive Web 3.0 ecosystem. As one of the early investors in Saito Network, DFG is deeply committed to working closely with the Saito team in order to assure the development of the project.