I wanted to post on Farcaster but I saw that my jottings were too much for a cast, and then I remembered I had a paragraph, MY OWN PARAGRAPH.

So, I can write whatever the hell I want here. Today, I’m going to educate y’all on what I learnt in my Shefi class .

Introduction to Blockchain and Cryptocurrency

• The first Bitcoin transaction was called the Genesis Block; the start of blockchain history.

• Bitcoin was the first successful implementation of peer-to-peer decentralized digital money.

• Bitcoin has limited functionality and was the first blockchain.

• The second blockchain was Ethereum, which expanded Bitcoin’s vision.

  • Ethereum allows many use cases and cuts out middlemen.

• Other popular blockchains include: Solana, BNB, Polkadot, Avalanche, Near, Celo, and Cardano.

Properties of Blockchains That Redesign Better Systems

1. Decentralized – no single central authority (like a bank).

2. Permissionless – open and public to anyone.

3. Transparent – all transactions can be seen by everyone, unlike banks that operate privately.

4. Censorship Resistant – no one can block or alter transactions.

5. Smart Contracts – automated, self-executing digital agreements built on the blockchain.

Tokens and Cryptocurrencies

• A token is a unit of value recorded on a blockchain ledger.

• All cryptocurrencies are tokens, but not all tokens are cryptocurrencies.

Differences:

• Cryptocurrency:

  • Digital money native to its own blockchain.

  • Runs on its own network (e.g., Bitcoin on the Bitcoin blockchain).

• Token:

  • Represents on-chain assets or value.

  • Not native to a blockchain but runs on top of another one (e.g., tokens on Ethereum).

What tokens represent:

• Ownership (crypto ownership or assets).

• Governance/voting rights.

• Tradable digital assets with financial value.

Types of Tokens:

• Fungible Tokens: identical and interchangeable (e.g., 1 ETH = 1 ETH).

• Non-Fungible Tokens (NFTs): unique, not equal to any other (e.g., digital art NFTs).

Web3 Overview

• Web3 is the internet of value, it enables direct exchange of value online.

• It leverages blockchains and tokens to give power and control back to builders, creators, and users.

• Web2: You are only a user.

• Web3: You are both a user and an owner; you can own, earn, and buy tokens.

Blockchain and Ownership

• Blockchains record ownership transparently.

• Holding a token means your ownership is recorded directly on the public ledger.

• Formula: Blockchain + Tokens = Ownership

• Blockchains make users participants, not just consumers.

Key Concepts and Incentives

• Bitcoin is a successful project without a leader; powered by code and community.

• Core elements of blockchain:

  • Decentralization

  • Financial incentives

  • Consensus mechanisms

• Purpose: to record transactions without a central authority, ensuring trust and integrity.

• Centralized systems have issues like lack of transparency and single points of failure.

• Blockchain networks solve this by having thousands of computers (nodes) hold copies of the same ledger.

  • If one node goes offline, others keep the network running, data is never lost.

Why People Join Blockchain Networks!

• People join to earn rewards by securing the network and processing transactions (as validators).

• Bitcoin pioneered this system, code pays people, not a company.

• No single entity owns the blockchain; it’s collectively maintained and reward-driven.

  Today’s class was really interesting and insightful. Thank you for reading 🙂.

  cc @shefi.org

  Did you learn something from my takeaways? If you did, comment below!

I wanted to post on Farcaster but I saw that my jottings were too much for a cast, and then I remembered I had a paragraph, MY OWN PARAGRAPH.

So, I can write whatever the hell I want here. Today, I’m going to educate y’all on what I learnt in my Shefi class .

Introduction to Blockchain and Cryptocurrency

• The first Bitcoin transaction was called the Genesis Block; the start of blockchain history.

• Bitcoin was the first successful implementation of peer-to-peer decentralized digital money.

• Bitcoin has limited functionality and was the first blockchain.

• The second blockchain was Ethereum, which expanded Bitcoin’s vision.

  • Ethereum allows many use cases and cuts out middlemen.

• Other popular blockchains include: Solana, BNB, Polkadot, Avalanche, Near, Celo, and Cardano.

Properties of Blockchains That Redesign Better Systems

1. Decentralized – no single central authority (like a bank).

2. Permissionless – open and public to anyone.

3. Transparent – all transactions can be seen by everyone, unlike banks that operate privately.

4. Censorship Resistant – no one can block or alter transactions.

5. Smart Contracts – automated, self-executing digital agreements built on the blockchain.

Tokens and Cryptocurrencies

• A token is a unit of value recorded on a blockchain ledger.

• All cryptocurrencies are tokens, but not all tokens are cryptocurrencies.

Differences:

• Cryptocurrency:

  • Digital money native to its own blockchain.

  • Runs on its own network (e.g., Bitcoin on the Bitcoin blockchain).

• Token:

  • Represents on-chain assets or value.

  • Not native to a blockchain but runs on top of another one (e.g., tokens on Ethereum).

What tokens represent:

• Ownership (crypto ownership or assets).

• Governance/voting rights.

• Tradable digital assets with financial value.

Types of Tokens:

• Fungible Tokens: identical and interchangeable (e.g., 1 ETH = 1 ETH).

• Non-Fungible Tokens (NFTs): unique, not equal to any other (e.g., digital art NFTs).

Web3 Overview

• Web3 is the internet of value, it enables direct exchange of value online.

• It leverages blockchains and tokens to give power and control back to builders, creators, and users.

• Web2: You are only a user.

• Web3: You are both a user and an owner; you can own, earn, and buy tokens.

Blockchain and Ownership

• Blockchains record ownership transparently.

• Holding a token means your ownership is recorded directly on the public ledger.

• Formula: Blockchain + Tokens = Ownership

• Blockchains make users participants, not just consumers.

Key Concepts and Incentives

• Bitcoin is a successful project without a leader; powered by code and community.

• Core elements of blockchain:

  • Decentralization

  • Financial incentives

  • Consensus mechanisms

• Purpose: to record transactions without a central authority, ensuring trust and integrity.

• Centralized systems have issues like lack of transparency and single points of failure.

• Blockchain networks solve this by having thousands of computers (nodes) hold copies of the same ledger.

  • If one node goes offline, others keep the network running, data is never lost.

Why People Join Blockchain Networks!

• People join to earn rewards by securing the network and processing transactions (as validators).

• Bitcoin pioneered this system, code pays people, not a company.

• No single entity owns the blockchain; it’s collectively maintained and reward-driven.

  Today’s class was really interesting and insightful. Thank you for reading 🙂.

  cc @shefi.org

  Did you learn something from my takeaways? If you did, comment below!