# 1/8 Exploring blockchain world.

By [mewszk.eth🦊](https://paragraph.com/@mewszk-eth) · 2024-10-30

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gm, Before we step in, I would like to thank you to [@celo](https://x.com/celo) and [@Shefi](https://x.com/shefiorg) for the scholarship supporting my first move into Web3 to become a Blockchain Baddie and my role model, [@maggielove](https://x.com/maggielove_) I feel so grateful to be part of the SheFi community.

![https://x.com/mewszk/status/1836790893829095732?s=46](https://storage.googleapis.com/papyrus_images/b7f4c33d3b78a8bc2bf3380d8a8efc7c19c065f930f36f0599713766753fa04d.png)

https://x.com/mewszk/status/1836790893829095732?s=46

_SheFi_ encourages interdependence, collective research (Do Your Own Research Together), and long-term, risk-aware investment.

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The first week is a mix of history and Web3 dictionary.

### **Why does Blockchain Matter?**

**1)** **Decentralization in Finance:** After the 2008 financial crash, people became skeptical of centralized financial institutions. Blockchain offers an alternative system where trust is placed in code rather than in intermediaries.

**2)** **Eliminating Middlemen:** Decentralized systems reduce or eliminate the need for third parties, which lowers costs and increases efficiency.

**3)** **Ownership:** In Web3, users can truly own their digital assets, unlike in Web2 where platforms retain control over data and content.

### So, what is blockchain?

It’s a **distributed ledger technology** (DLT) that records transactions across multiple computers (nodes) in a decentralized way. Blockchain doesn't rely on a single authority like traditional ledgers; instead, a network of users maintains it. This ensures transparency, security, and immutability.

    Ledger: A system for recording information.
    
    Distributed Ledger: Multiple copies of this ledger exist across various nodes, making it hard to tamper with.
    
    Nodes: These are computers that keep the blockchain running. Every node has a copy of the entire blockchain, ensuring redundancy.
    

Blockchain is an evolution from highly centralized systems (like traditional banking) to decentralized systems, relying on **code** instead of entities for **trust**.     

![](https://storage.googleapis.com/papyrus_images/d5cbf1720e159938fc10f4db7d18bf8c6643261e0978e0b637e7427453d8ad44.png)

### **Web3 & Evolution of the Internet**

Web3 is considered the next phase of the internet, where users not only read and write but also **own** digital assets and participate in decentralized applications.

*   **Web1 (1980s-2000s):** Mostly static websites, read-only content.
    
*   **Web2 (2000s-present):** Interactive, social web dominated by platforms like Facebook and Google. Users can read and write but don’t own the content they create.
    
*   **Web3 (now):** Based on blockchain technology, Web3 allows users to own their data, assets, and participation in decentralized networks, aligning them through crypto incentives.
    

### **Have you ever heard of consensus mechanisms, and what is it?**

**Consensus mechanism** is the process through which a blockchain network agrees on the validity of transactions. The goal is to ensure the blockchain’s integrity without a central authority.

*   **Proof of Work (PoW):** Used by Bitcoin. In PoW, miners solve complex mathematical problems (requiring significant computational power) to validate transactions and secure the network. This mechanism is secure but energy-intensive.
    
*   _Best Practice:_ Suitable for networks that need maximum security.
    
*   **Proof of Stake (PoS):** Used by Ethereum 2.0. In PoS, validators are chosen to confirm transactions based on the number of tokens they hold (stake) in the network. It’s more energy-efficient than PoW but may concentrate power among wealthy participants.
    
*   _Best Practice:_ Ideal for scalable and energy-efficient blockchains.
    
*   **Proof of Liquidity (PoL):** In PoL, liquidity providers stake tokens into liquidity pools, which helps maintain the token economy and allows them to earn rewards.
    
*   _Example:_ Projects like [Uniswap](https://x.com/uniswap) or other DeFi protocols that incentivize liquidity provision.
    

### **What are capital resources in blockchain?**

It refers to the economic value invested in the network (tokens, assets, time, and computational power).

_For example:_  
     **Miners in PoW:** Invest in expensive hardware and electricity.  
     **Stakers in PoS:** Lock up their tokens as collateral.  
     **Liquidity providers in DeFi:** Provide tokens to liquidity pools in exchange for rewards.

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If you want to deep dive into blockchain ecosystems, here are some popular ones:

*   [**Bitcoin**](https://x.com/bitcoin)**:** The first decentralized digital currency, known for its security and simplicity (PoW).
    
*   [**Ethereum**](https://x.com/ethereum)**:** Expands the blockchain’s use case beyond currency, enabling decentralized applications (dApps) and smart contracts (PoS).
    
*   [**Solana**](https://x.com/solana)**,** [**Avalanche**](https://x.com/avalanche)**,** [**Polkadot**](https://x.com/polkadot)**,** [**BNB**](https://x.com/bnbchain)**,** [**Cardano**](https://x.com/cardano)**,** [**NEAR**](https://x.com/nearprotocol)**:** Each of these blockchains offers unique features, such as faster transaction speeds, lower costs, or enhanced scalability.
    

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What are your thoughts?  
_Subscribe & Share your experience in the comments!_

Until next week!  
Foxy🦊

_+Connect with Mews_🦊!  
[LinkedIn](https://linkedin.com/in/panuts)     [X](https://x.com/mewszk)     [Warpcast](https://warpcast.com/emilyfoxy)

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*Originally published on [mewszk.eth🦊](https://paragraph.com/@mewszk-eth/1-8-exploring-blockchain-world)*