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Web3 refers to the decentralized web where applications are powered by blockchain technologies, smart contracts, and peer-to-peer (P2P) networks, instead of centralized servers controlled by entities like corporations or governments.
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In Web3, users control their own data and assets, and applications are governed by protocols or decentralized organizations rather than companies.
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Key Web3 Concepts:
- Decentralization: Web3 is built on decentralized protocols that allow users to interact directly with each other without intermediaries.
- Blockchain: The backbone of Web3. Learn about blockchains and how they store transaction data securely.
- Cryptocurrency: Understand digital assets and how they interact with decentralized applications.
- Smart Contracts: Programs that run on the blockchain and execute code automatically when conditions are met.
- NFTs: Non-fungible tokens represent unique assets, like digital art or in-game items, and are built on top of blockchain technology.
- DAOs: Decentralized Autonomous Organizations are organizations governed by smart contracts, where decisions are made collectively by participants.
How Bitcoin Works
◦Distributed Ledger: Bitcoin uses a distributed ledger system where anyone running a node keeps a record of all transactions and balances3.
◦Nodes: Nodes are computers running the Bitcoin software, maintaining and verifying the transaction history3.
◦Blockchain: Validated transactions are grouped into blocks, which are then linked together to form a blockchain4. Each block is linked to the previous one using a hashing process, making it virtually impossible to tamper with the record4.
Maintaining the Network
◦Nodes: Nodes maintain the network by overseeing it, contributing to its decentralization4.
◦Miners: Miners are nodes financially incentivized to maintain the Bitcoin network5. They compete to add the latest block to the blockchain and claim the block reward of newly issued BTC5.
◦Proof of Work: Miners compete to guess a random number to add a block to the blockchain, requiring significant computing power5. This process is known as proof of work5.
◦Limited Supply: The number of Bitcoins is fixed at 21 million, with coins released over time as a block reward
Decentralized Finance (DeFi) is another essential Web3 domain where you can apply your skills to build Web3 applications like lending platforms, decentralized exchanges, and yield farming protocols.
A crypto wallet is a digital tool that allows you to store, send, and receive cryptocurrencies (like Bitcoin, Ethereum, or tokens like BULB). It is essentially your gateway to the blockchain world, enabling you to interact with decentralized networks and manage your digital assets.
- Account Number: This is similar to a public key in a crypto wallet. It is your identifier for receiving funds, and you can share it with others so they can deposit money into your account.
- PIN or Password: This is like your private key in a crypto wallet. It’s a secret piece of information that you keep to yourself, which allows you to access and manage your funds.
- Receiving Money: Someone can deposit money into your account by transferring funds using your account number (just like sharing your public key for receiving crypto).
- Sending Money: To send money, you have to log into your account (using your PIN/password) and authorize the bank to transfer funds to someone else’s account.
some wallet provider
- MetaMask: A popular browser-based wallet that supports Ethereum and other Ethereum-compatible blockchains (e.g., Binance Smart Chain, Polygon). It’s often used for interacting with DeFi apps, NFTs, and Web3 applications.
- Trust Wallet: A mobile wallet that supports a wide variety of cryptocurrencies and tokens. It’s user-friendly and also allows you to interact with DeFi apps and NFTs.
- Ledger Nano S/X: Hardware wallets that are among the most trusted for offline storage of cryptocurrencies, providing maximum security.
- Trezor: Another hardware wallet known for security, with an easy-to-use interface.
- Exodus: A desktop wallet that offers a built-in exchange feature, making it easy to swap between cryptocurrencies.
we can only send bitcoin address to another bitcoin
Types
- Hot → software-based and connected to the internet private key stored on internet
- Cold → hardware or offline wallets
web3 is not bitcoin
Blockchain is the tech that used to store data in secure way
Bitcoin is the kind of crypto currency
Crypto vs token
A crypto coin is a digital asset that operates on its own blockchain. It is usually used as a currency or a store of value. Coins typically serve the primary function of being a medium of exchange or currency in the ecosystem of their respective blockchain.
A crypto token is a digital asset that does not have its own blockchain but is created and operated on top of another blockchain. Most tokens are created using smart contracts on platforms like Ethereum, Binance Smart Chain, Polygon or Solana.
Solana
smart contracts
- piece of code where we agree for something
Ethereum
AIRDROPS
- Developer of crytpo providing free at begning to adverticse
website to check
DAO (decentrlize automonous org)
Blockchains
Blockchains are divided into layer zero, layer one, and layer two protocols1.
◦Layer Zero: These protocols allow the creation of layer one blockchains2. Cosmos and Carrot are examples, but the presenter does not believe they have found their use case yet2.
◦Layer One: This is where most activity occurs, with Ethereum and Solana being prominent2. Newer platforms like Sui and Aptos aim to improve upon existing blockchains like Solana2.
◦Layer Two: These offer a different approach to scaling Ethereum, using their own blockchains for transactions but periodically “rolling up” to Ethereum to ensure security2. Examples include Polygon and Arbitrum