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
Decentralized – no single central authority (like a bank).
Permissionless – open and public to anyone.
Transparent – all transactions can be seen by everyone, unlike banks that operate privately.
Censorship Resistant – no one can block or alter transactions.
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
Decentralized – no single central authority (like a bank).
Permissionless – open and public to anyone.
Transparent – all transactions can be seen by everyone, unlike banks that operate privately.
Censorship Resistant – no one can block or alter transactions.
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!
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i officially crown you blockchain baddie
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Today’s @shefi class was super insightful & interesting I had to publish my jottings in my paragraph. Make sure you check it out and tell me what you learnt🤭 https://paragraph.com/@0x6e85b1b9e28f62ddc18a402dc6a254001097bc8b/shefi-day-2✨
Babeeee i missed itttt :(
I gat you covered🤭 Wrote the whole summary in my paragraph
Babeee I've not registered for itt ...i missed it
Ohhh wow! This is so nice fr!
yeahhh
That’s so thoughtful of you😍
ikr🫶🏾 hope you enjoyed todays class?
Yes I did, it was so interesting
I missed it😭
i gat you covered with a summary😝
Aww thank you This would give us(who’s not part of the class) the opportunity to learn about crypto.
you’re welcome baby i hope you learn something 🫶🏾🤭
Yes b, now I know more about tokens that there’s two types which is fungible token and non-fungible token I only know of the non-fungible token before
I missed the class 😭 thanks for this bae
you’re welcomeee