An Introduction in Blockchain, Cryptocurrencies, Tokens, Smart Contracts, NFTs, Web3, DeFi, GameFi and DeIn: Crash CourseAugust 21, 2022
Hello there, today I’ll be covering definitions:
What is blockchain?
A blockchain is a growing list of records, called blocks, that are linked together using cryptography . Each block contains a cryptographic hash of the previous block, a timestamp , and transaction data (generally represented as a Merkle tree ). The timestamp proves that the transaction data existed when the block was published in order to get into its hash. As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
What is a cryptocurrency?
A cryptocurrency is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead, they use a decentralized system to record transactions and issue new units.
Here is how you can buy your first cryptocurrency
What Are Crypto Tokens?
The term token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains . Crypto tokens are often used to fundraise for crowd sales, but they can also serve as a substitute for other things. These tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process, which involves a crowdfunding exercise to fund project development.
What is a smart contract?
A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control, or document legally relevant events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of the need for trusted intermediates, arbitrations, and enforcement costs, fraud losses, as well as the reduction of malicious and accidental exceptions.
What is an NFT?
A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger ( blockchain ). NFTs can be associated with reproducible digital files such as photos, videos, and audio. NFTs use a digital ledger to provide a public certificate of authenticity or proof of ownership , but it does not restrict the sharing or copying of the underlying digital file. The lack of interchangeability ( fungibility ) distinguishes NFTs from blockchain cryptocurrencies , such as Bitcoin .
What is Web 3?
Web3, also known as Web 3.0, is an idea for a new iteration of the Internet that is based on public blockchains . The term was coined in 2014 by Ethereum co-founder Gavin Wood , and the idea gained interest in 2020 and 2021 from cryptocurrency enthusiasts, large technology companies, and venture capitalist firms.
What is DeFi?
Decentralized finance (commonly referred to as DeFi) is a blockchain -based form of finance that does not rely on central financial intermediaries such as brokerages , exchanges , or banks to offer traditional financial instruments , and instead utilizes smart contracts on blockchains, the most common being Ethereum .[ citation needed ] DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on a range of assets using derivatives, trade cryptocurrencies , insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks.
What is GameFi?
GameFi also known as Game Finance, is the gamification of financial systems to create profit from playing play-to-earn crypto games.
What is DeIn?
Decentralized Insurance also known as DeIn or DeFi Insurance is where rather than purchasing insurance coverage from one specific individual or company, you can purchase coverage from a decentralized pool of insurance providers. Interestingly, any individual or company can work as an insurance provider by locking up capital in the decentralized capital pool. The individual or company providing capital to the pool can qualify as a liquidity provider .
I am a follower of the above simply because of how much disruption of traditional methods blockchain can create. In one way or the other blockchain technology is the future of processing. Currently, as of writing this post, there are Decentralized Supply Chain Management, Decentralized Full Proof Voting, Decentralized Real Estate, Decentralized Data Protection, and Decentralized Loyalty + Royalty Programs.
Learn more here: The Importance and Benefits of Blockchain Technology
Blockchain increases trust, security, transparency, and the traceability of data shared across a business network — and delivers cost savings with new efficiencies. Blockchain for business uses a shared and immutable ledger that can only be accessed by members with permission.
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