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MEGA-THREAD: How to talk #Ethereum like a Pro.
A Thread
1/ What is Ethereum?
A blockchain with a built-in Turing-complete programming language, allowing anyone to write smart contracts and decentralized applications (dApps) where they create their own arbitrary rules for ownership, transaction formats and state transition functions.
2/ What is Ether?
Ether (ETH) is the currency of the Ethereum network. Every time you send ETH or use an Ethereum application, you pay a small ETH fee (gas fee). By requiring a fee for every computation executed on the network, bad actors are prevented from spamming the network
3/ Currently, ETH is mined using the proof of work consensus mechanism, the same process as Bitcoin.
4/ Let’s use Uber as an real-world example:
You can think of $ETH as the fuel needed to power the car (Ethereum) to make the trip (complete the transaction), and the #Uber driver is incentivized by the driver fee (gas fee) to make the trip.
5/ Difference:
The major difference between #Ethereum and #Bitcoin is their use cases.
The main purpose of Bitcoin is for peer-to-peer payments, whereas Ethereum aims to be a distributed world computer where you can build on top of it.
6/ Crypto Wallets: For Ethereum
Ethereum wallets are applications that let you interact with your #Ethereum account. Your wallet(s) allows you to do the following: manage not only your funds, but also your collectibles (#NFTs) and membership to DAOs.
7/ Types of Wallets
i. Non-custodial wallet: allows users to hold and own their private key while having full control of their funds.
Hardware Wallets: similar to a flash drive that is offline (Ledger, Trezor)
Web-Based & Mobile Wallets: MetaMask
Desktop Wallet: Exodus
8/
ii. Custodial wallet: It’s very likely that the first time you purchase crypto, it will end up in a custodial exchange crypto wallet. In this case, the exchange is your custodian, which holds your keys and is tasked with securely storing your funds (#Coinbase, #Binance)
9/ What You Can Do with Ethereum: #DApps
Once you set up your #Ethereum wallet, you can use decentralized applications (dApps). Dapps are decentralized apps that are built on a decentralized network that combines a smart contract + a frontend user interface. 10/ Key features of #DApps:
Open-source
Public data and records
Uses a cryptographic token to help keep the network secure
11/ What is Smart contract?
You can think of it as the back-end of dapps. Once the predetermined conditions of the contract are met, the transaction is automatically completed and recorded on the blockchain.
12/ Smart contracts can define rules, like a regular contract, and automatically enforce them via the code. Smart contracts cannot be deleted by default, and interactions with them are irreversible. (ie: Smart contracts on Ethereum are typically written in Solidity or Vyper.) 13/ Common categories of DApps:
Finance
Art and collectibles
Gaming
Technology 14/ Use-Case of Ethereum:
DeFi (Decentralized Finance)
NFTs & Collectibles
Decentralized Autonomous Organizations (DAOs)
Thank you!
If you enjoyed it you can check some other Threads too.
MEGA-THREAD: How to talk #Ethereum like a Pro.
A Thread
1/ What is Ethereum?
A blockchain with a built-in Turing-complete programming language, allowing anyone to write smart contracts and decentralized applications (dApps) where they create their own arbitrary rules for ownership, transaction formats and state transition functions.
2/ What is Ether?
Ether (ETH) is the currency of the Ethereum network. Every time you send ETH or use an Ethereum application, you pay a small ETH fee (gas fee). By requiring a fee for every computation executed on the network, bad actors are prevented from spamming the network
3/ Currently, ETH is mined using the proof of work consensus mechanism, the same process as Bitcoin.
4/ Let’s use Uber as an real-world example:
You can think of $ETH as the fuel needed to power the car (Ethereum) to make the trip (complete the transaction), and the #Uber driver is incentivized by the driver fee (gas fee) to make the trip.
5/ Difference:
The major difference between #Ethereum and #Bitcoin is their use cases.
The main purpose of Bitcoin is for peer-to-peer payments, whereas Ethereum aims to be a distributed world computer where you can build on top of it.
6/ Crypto Wallets: For Ethereum
Ethereum wallets are applications that let you interact with your #Ethereum account. Your wallet(s) allows you to do the following: manage not only your funds, but also your collectibles (#NFTs) and membership to DAOs.
7/ Types of Wallets
i. Non-custodial wallet: allows users to hold and own their private key while having full control of their funds.
Hardware Wallets: similar to a flash drive that is offline (Ledger, Trezor)
Web-Based & Mobile Wallets: MetaMask
Desktop Wallet: Exodus
8/
ii. Custodial wallet: It’s very likely that the first time you purchase crypto, it will end up in a custodial exchange crypto wallet. In this case, the exchange is your custodian, which holds your keys and is tasked with securely storing your funds (#Coinbase, #Binance)
9/ What You Can Do with Ethereum: #DApps
Once you set up your #Ethereum wallet, you can use decentralized applications (dApps). Dapps are decentralized apps that are built on a decentralized network that combines a smart contract + a frontend user interface. 10/ Key features of #DApps:
Open-source
Public data and records
Uses a cryptographic token to help keep the network secure
11/ What is Smart contract?
You can think of it as the back-end of dapps. Once the predetermined conditions of the contract are met, the transaction is automatically completed and recorded on the blockchain.
12/ Smart contracts can define rules, like a regular contract, and automatically enforce them via the code. Smart contracts cannot be deleted by default, and interactions with them are irreversible. (ie: Smart contracts on Ethereum are typically written in Solidity or Vyper.) 13/ Common categories of DApps:
Finance
Art and collectibles
Gaming
Technology 14/ Use-Case of Ethereum:
DeFi (Decentralized Finance)
NFTs & Collectibles
Decentralized Autonomous Organizations (DAOs)
Thank you!
If you enjoyed it you can check some other Threads too.
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