Web3 Functions: Chainlink, Gelato, Lit Actions

Key Insights

• Crypto has a serious need for new applications. Web3 functions, led by Chainlink, Gelato, and Lit protocol may be the new app infra needed to power new apps.
• Web3 Functions allow smart contracts to execute traditional code like JavaScript, which can perform familiar Web2 execution like calling an API and executing code on the returned data.
• The main difference between Chainlink and Gelato’s approach is Chainlink’s request-receive model versus Gelato’s worker model.
• Lit Protocol’s Lit Actions allow for Web3 functions to be encrypted, retaining privacy for users via Lit’s multi-party computation capabilities.

The current state of the crypto ecosystem is at a crossroads. Many use cases from previous cycles are stagnant or have lost their luster entirely. Though some projects like Blur and GMX have managed to gain some momentum, that momentum has largely been heavily incentivized and has not been effective in bringing in net-new users to the ecosystem.