Introduction Decentralized finance (DeFi) is gaining popularity among users on Ethereum and other smart contract platforms. Liquidity mining has become a popular method for token distribution, while tokenized Bitcoin on Ethereum continues to develop, and the volume of flash loans is on the rise. At the same time, automated market maker (AMM) protocols like Uniswap are demonstrating competitive trading volumes and high liquidity, with a growing number of users. What is an Automated Market Make...

Introduction Decentralized finance (DeFi) is gaining popularity among users on Ethereum and other smart contract platforms. Liquidity mining has become a popular method for token distribution, while tokenized Bitcoin on Ethereum continues to develop, and the volume of flash loans is on the rise. At the same time, automated market maker (AMM) protocols like Uniswap are demonstrating competitive trading volumes and high liquidity, with a growing number of users. What is an Automated Market Make...

Introduction In the early stages of Bitcoin's development, exchanges became vital platforms connecting buyers and sellers of cryptocurrencies. Without these platforms attracting users globally, the liquidity of trades would be far less than it is today, and a unified asset price would be impossible to establish. This field has traditionally been dominated by centralized platforms. However, with rapid technological advancements, various decentralized trading tools have emerged continuousl...

Introduction In the early stages of Bitcoin's development, exchanges became vital platforms connecting buyers and sellers of cryptocurrencies. Without these platforms attracting users globally, the liquidity of trades would be far less than it is today, and a unified asset price would be impossible to establish. This field has traditionally been dominated by centralized platforms. However, with rapid technological advancements, various decentralized trading tools have emerged continuousl...

Introduction The emergence of blockchain technology has given rise to new organizational structures, with Decentralized Autonomous Organizations (DAOs) being a prime example. DAOs can operate independently without the need for a central authority. The first DAO was launched in 2016, aiming to enable all members to participate in governance collectively. DAOs can serve various purposes, including pooling funds for venture capital and validating the integrity of off-chain data. What Is a DAO? A...

Introduction The emergence of blockchain technology has given rise to new organizational structures, with Decentralized Autonomous Organizations (DAOs) being a prime example. DAOs can operate independently without the need for a central authority. The first DAO was launched in 2016, aiming to enable all members to participate in governance collectively. DAOs can serve various purposes, including pooling funds for venture capital and validating the integrity of off-chain data. What Is a DAO? A...

Introduction Bitcoin is widely regarded as the "reserve asset" or store of value in the cryptocurrency realm. It has become the most circulated, liquid, and frequently traded cryptocurrency, consistently maintaining the highest market capitalization. In fact, some argue that aside from Bitcoin, other cryptocurrencies are largely unnecessary, asserting that all the functionalities claimed by altcoins can be achieved by Bitcoin alone. However, blockchain technology is being applied across vario...

Introduction Bitcoin is widely regarded as the "reserve asset" or store of value in the cryptocurrency realm. It has become the most circulated, liquid, and frequently traded cryptocurrency, consistently maintaining the highest market capitalization. In fact, some argue that aside from Bitcoin, other cryptocurrencies are largely unnecessary, asserting that all the functionalities claimed by altcoins can be achieved by Bitcoin alone. However, blockchain technology is being applied across vario...

Introduction Ethereum was created by Vitalik Buterin in 2014 as an open-source platform for launching decentralized applications (DApps). Buterin's primary motivation for developing this new blockchain was the lack of flexibility in the Bitcoin protocol. Since then, the Ethereum blockchain has attracted a large number of developers, businesses, and entrepreneurs, giving rise to an emerging industry centered around user-friendly smart contracts and distributed applications. In this articl...

Introduction Ethereum was created by Vitalik Buterin in 2014 as an open-source platform for launching decentralized applications (DApps). Buterin's primary motivation for developing this new blockchain was the lack of flexibility in the Bitcoin protocol. Since then, the Ethereum blockchain has attracted a large number of developers, businesses, and entrepreneurs, giving rise to an emerging industry centered around user-friendly smart contracts and distributed applications. In this articl...

Introduction Bitcoin widely employs the Elliptic Curve Digital Signature Algorithm (ECDSA) to verify ownership. Through this algorithm, users can derive a public key from a private key. Remarkably, while the public key can be easily obtained from the private key, the reverse operation is infeasible. The private key serves as a passport into the Bitcoin network, allowing users to generate addresses for receiving tokens and enabling them to spend those tokens later. In this article, we will exp...

Introduction Bitcoin widely employs the Elliptic Curve Digital Signature Algorithm (ECDSA) to verify ownership. Through this algorithm, users can derive a public key from a private key. Remarkably, while the public key can be easily obtained from the private key, the reverse operation is infeasible. The private key serves as a passport into the Bitcoin network, allowing users to generate addresses for receiving tokens and enabling them to spend those tokens later. In this article, we will exp...

Introduction When discussing cryptocurrencies, many people immediately think of blockchain or "distributed ledger technology." Since the inception of Bitcoin, hundreds of cryptocurrencies have emerged in the market. Although most have similar network architectures, users can still transfer value or interact with decentralized applications (DApps) through these data structures. In a blockchain, new blocks are added regularly to an ever-expanding chain, with each block linked to the previous on...

Introduction When discussing cryptocurrencies, many people immediately think of blockchain or "distributed ledger technology." Since the inception of Bitcoin, hundreds of cryptocurrencies have emerged in the market. Although most have similar network architectures, users can still transfer value or interact with decentralized applications (DApps) through these data structures. In a blockchain, new blocks are added regularly to an ever-expanding chain, with each block linked to the previous on...

What Is a Merkle Tree? The concept of a Merkle tree was introduced by computer scientist Ralph Merkle in the early 1980s. This structure effectively verifies the integrity of datasets, making it especially suitable for peer-to-peer networks where participants need to share and independently verify information. Hash functions are at the core of Merkle trees, so it is advisable to familiarize yourself with the basics of hashing before diving deeper into Merkle trees. How Does a Merkle Tree Work...

What Is a Merkle Tree? The concept of a Merkle tree was introduced by computer scientist Ralph Merkle in the early 1980s. This structure effectively verifies the integrity of datasets, making it especially suitable for peer-to-peer networks where participants need to share and independently verify information. Hash functions are at the core of Merkle trees, so it is advisable to familiarize yourself with the basics of hashing before diving deeper into Merkle trees. How Does a Merkle Tree Work...

Introduction In the realm of digital currencies, many are eager to reshape the traditional financial system. However, some skeptics in the blockchain space may hold differing views. Nevertheless, there are indeed some compelling infrastructures being gradually established. The primary goal of decentralized finance (DeFi) is to create a permissionless, decentralized, and transparent financial ecosystem. Digital currencies have proven that this goal is achievable. Every day, systems like Bitcoi...

Introduction In the realm of digital currencies, many are eager to reshape the traditional financial system. However, some skeptics in the blockchain space may hold differing views. Nevertheless, there are indeed some compelling infrastructures being gradually established. The primary goal of decentralized finance (DeFi) is to create a permissionless, decentralized, and transparent financial ecosystem. Digital currencies have proven that this goal is achievable. Every day, systems like Bitcoi...

Introduction Bitcoin is sometimes referred to as programmable money. Due to its digital nature, users enjoy significant flexibility in determining how to use their funds. When discussing Bitcoin, we often mention wallets and tokens, but we can also think of wallets as keys, tokens as checks, and the blockchain as rows of locked safes. Each safe has a small slot that allows anyone to deposit checks or view their value, but only the key holder can unlock the safe. When the key holder wants to t...

Introduction Bitcoin is sometimes referred to as programmable money. Due to its digital nature, users enjoy significant flexibility in determining how to use their funds. When discussing Bitcoin, we often mention wallets and tokens, but we can also think of wallets as keys, tokens as checks, and the blockchain as rows of locked safes. Each safe has a small slot that allows anyone to deposit checks or view their value, but only the key holder can unlock the safe. When the key holder wants to t...

Understanding Bitcoin's Incentive Mechanism Bitcoin's incentive mechanism is viewed as a fair game. Ensuring that participants receive relatively equitable rewards in a decentralized ecosystem is key to the long-term stability of the network. Financial incentives drive nodes to maintain network security—honest nodes are rewarded, while dishonest ones lose out. This mechanism is especially evident in cryptocurrency mining. Various parties invest heavily in hardware and electricity, h...

Understanding Bitcoin's Incentive Mechanism Bitcoin's incentive mechanism is viewed as a fair game. Ensuring that participants receive relatively equitable rewards in a decentralized ecosystem is key to the long-term stability of the network. Financial incentives drive nodes to maintain network security—honest nodes are rewarded, while dishonest ones lose out. This mechanism is especially evident in cryptocurrency mining. Various parties invest heavily in hardware and electricity, h...

Introduction Mining is a crucial component of the security of proof-of-work blockchains. By having participants calculate hashes of specific properties, cryptocurrency networks can be secured without the need for a central authority. When Bitcoin was first introduced in 2009, anyone could compete with other miners using a regular computer to calculate the hash of the next valid block. At that time, mining difficulty was low, and the overall network hash rate was not high, allowing users to ad...

Introduction Mining is a crucial component of the security of proof-of-work blockchains. By having participants calculate hashes of specific properties, cryptocurrency networks can be secured without the need for a central authority. When Bitcoin was first introduced in 2009, anyone could compete with other miners using a regular computer to calculate the hash of the next valid block. At that time, mining difficulty was low, and the overall network hash rate was not high, allowing users to ad...