Core principle: adding protocols for payments and state to the internet.
- blockchain - basis for other technologies listed below. A decentralized ledger.
- cryptocurrency - an exchange of tokens built on a block chain. they provide a financial incentive ("tokens") to participate in the network.
- Bitcoin - The OG
- Ethereum The main(?) cryptocurrency NFTs and other smart contracts are built on.
- Solana - lots of buzz currently (early sept 2021), unsure why.
- stablecoins - A class of cryptocurrency where the tokens are backed by a reserve asset. In theory they should have a stable price.
- NFTs - non-fungible tokens. unique tokens
- Smart Contracts a program that can execute on a blockchain.
- Solidity programming language used to write smart contracts.
- 51% Attack - if someone controlled 51% of the nodes managing a distributed ledger, they could write their own transactions. (though they could not edit or delete existing ones).
- airdrop - sending tokens to a wallet without letting them know.
- cryptoeconomics - the study of economics based on these technologies. A form of game theory.
- dapps - distributed apps
- DAO - Decentralized Autonomous Organization
- defi - distributed finance. contrast with traditional finance(tradfi).
- governance - the method in which blockchains are run. More on governance
- grants programs - Programs decentralized networks run where they offer compensation in exchange for dev work. Here's a list of some grants programs
- ledger - A cryptographically secured list of transactions, aka blocks on the blockchain. transactions happen between different addresses
- micro-economy Small token-based economies.
- nodes - a user that is part of the network.
- staking - the act of putting up money to help verify transaction on the network.
- token - an entry on a ledger that belongs to a blockchain address.
- oracle - a part of a smart contract that provides data from a 3rd party.
- P2E - Pay to earn. Model of gaming where you can earn crypto by playing the game.
- proof of work - uses large computing power to ensure the validity of the distributed ledger. Actors on the blockchain who do this work are rewarded with tokens. Due to the amount of work needed to attack the ledger, it makes attacks more costly than they are worth.
- proof of stake - alternative to proof of work, where only network actors who have a financial stake can add blocks to the ledger.
- wallets - applications used to store the public private key pair associated with a blockchain address. Contrary to the name, it does not store tokens.
Using The Blockchain
There are several wallets available to use multiple types of cryptocurrencies.
Developing on The Blockchain
- Hardhat - used for setting up a Solidity development environment.
- Truffle - another development environment
- Remix IDE - Online IDE
Buying, Selling, and Trading Cryptocurrency
I mostly use Coinbase for ease of use. It supports "mainstream" coins. Binance is another popular one. Not all coins are available in he United States. For going deep on alt coins gate.io seems promising, but untested.
Sites / Projects
OpenSea - Crypto marketplace.
Criticisms of Web3
- Wide scale adoption requires significant amounts of distrust in current, centralized solutions.
- Currently difficult to use.
- Environmental concerns, especially with proof-of-work based solutions.