Overview of Web3 😊

Overview of Web3 😊

Hello,

Are you new to Web3 and Blockchain and don’t know where to start? No matter where you are in your web3 journey, this guide is for you. The reason why I prepared this beginner’s guide is to guide and help those who do not know where to start the Web3 ecosystem🙂

I will do my best to update it from time to time and if you require any corrections please feel free to DM me!

Before suggesting resources to you, I would like to introduce some concepts and topics within blockchain technology. So it will be easier to understand.

Blockchain 🔥

Every transaction that takes place is recorded as a data block. Each block is linked to its predecessors and successors, creating a chronological “chain” of data as an asset moves or an asset’s ownership changes. The blocks verify the exact time and order of transactions, and the blocks are securely linked together to prevent any blocks from being changed or adding a block between two existing blocks. The blocks contain timestamps. Each additional block strengthens the verification of the previous block and therefore the entire blockchain, making the blockchain immutable.

Web2 is the version of the internet most of us know and use today. Where Web1 was static and “read-only,” Web2 was “read-write,” and interactive. Under Web2, the internet became more usable: web2 was dynamic and users could consume, interact with, and create content on the internet themselves. Web 2.0 is also called the participative social web. Along the way, the internet was largely dominated by the four giants we know today as Apple, Amazon, Facebook, and Google.

Web2 has also experienced a boom in the use of smartphones, and most internet usage is via mobile apps and hardware developed by these companies. In the centralized internet, as we know it today, companies like Apple and Facebook can cut all paid app downloads and in-app purchases at will, resulting in a lack of privacy.

👉🏻 Free sorting of information, permits users to retrieve and classify the information collectively.

👉🏻 Dynamic content that is responsive to user input.

👉🏻 Information flows between the site owner and site users by means of evaluation & online commenting.

👉🏻 Developed APIs to allow self-usage, such as by a software application.

👉🏻 Web access leads to a wider variety of users, from the traditional Internet user base.

DAO’s 🔥

The acronym DAO stands for Decentralized Autonomous Organization. In general, a DAO is a system of hard-coded rules that define which actions a decentralized organization will take. In its simplest definition, a DAO is an organization governed by computer codes and programs. Therefore, it has the ability to work autonomously, without a central authority.

Using smart contracts, a DAO can work with outside information and execute orders based on that information — all without human input. DAOs are often run by a community of stakeholders incentivized through some kind of token mechanism.

Simply put, a DAO refers to a particular kind of organization that, unlike conventional companies, is based on open source code and is operated entirely by its community.

NFTs 🔥

A fungible asset refers to an asset that is interchangeable with any other like unit of that asset. For example, one bitcoin is the same as any other bitcoin in circulation — the case is the same with dollars or euros or ether. Fungible assets are also divisible, meaning they can be broken up into smaller fractions of units that share the same properties.

Fungible assets are essentially indistinguishable from one other. These traits are key for any asset to be viable as a payment mechanism. On the other hand, non-fungible tokens are crypto tokens that are indivisible and unique. While NFTs are built on smart contracts just like ETH and DAI, NFT contracts contain specific information that makes each NFT different from the next. In this way, one NFT cannot be interchanged with another NFT, and the whole cannot be broken down into smaller units and used. These traits denote non-fungibility.

Layer1 & Layer2 🔥

Layer 1’s

Layer 2’s

Cryptocurrencies 🔥

Blockchain forms the bedrock for cryptocurrencies like Bitcoin. The U.S. dollar is controlled by the Federal Reserve. Under this central authority system, a user’s data and currency are technically at the whim of their bank or government. If a user’s bank is hacked, the client’s private information is at risk. If the client’s bank collapses or the client lives in a country with an unstable government, the value of their currency may be at risk.

By spreading its operations across a network of computers, blockchain allows Bitcoin and other cryptocurrencies to operate without the need for a central authority. This not only reduces risk but also eliminates many of the processing and transaction fees. It can also give those in countries with unstable currencies or financial infrastructures a more stable currency with more applications and a wider network of individuals and institutions with whom they can do business, both domestically and internationally.

Zero-Knowledge🔥

A zero-knowledge proof, sometimes also referred to as a ZK protocol, is a verification method that takes place between a prover and a verifier. In a zero-knowledge proof system, the prover is able to prove to the verifier that they have the knowledge of a particular piece of information (such as the solution to a mathematical equation) without revealing the information itself. These proof systems can be used by modern cryptographers to provide increased levels of privacy and security.

Smart Contract and Solidity (Technical) 🔥

Smart contracts are programs (chunks of code) stored on a blockchain that automatically execute when predetermined conditions are met. Smart contracts are typically used to automate execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. Smart contract applications include everything from games to logistics tools to DeFi dapps.

Say, for example, that a potential tenant would like to lease an apartment using a smart contract. The landlord agrees to give the tenant the door code to the apartment as soon as the tenant pays the security deposit. Both the tenant and the landlord would send their respective portions of the deal to the smart contract, which would hold onto and automatically exchange the door code for the security deposit on the date when the lease begins. If the landlord doesn’t supply the door code by the lease date, then the smart contract refunds the security deposit. This would eliminate the fees and processes typically associated with the use of a notary, a third-party mediator, or attorneys.

DeFi 🔥

DeFi (decentralized finance) refers to financial services that run on smart contracts instead of relying on middlemen such as banks or exchanges. DeFi’s goal is to create a more accessible and transparent financial system that puts control back in the hands of regular people.

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Stay hungry, stay foolish!

Elif Hilal Umucu 🌙