WTF is web3

Here's I'll be posting and updating a guide to web3 for those exploring the idea.

WTF is web3

Some have simplified things to say the following:

web1: Read
web2: Read-Write
web3: Read-Write-Own

Though admittedly it is this last part that can be a bit confusing; as the ownership isn't ... well, it's more like recorded attribution to a digital entity you control; so long as you keep your pass phrase safe!

And truly things like this are important, also never give out your passphrase !!!

That's doubly important ... but let's keep on moving

Table of Contents

  • Coins vs Tokens
  • NFTs
  • Decentralized Finance
  • DAOs

These are the basic topics that we'll cover as an introduction; and I'll add links to additional information where applicable.


Coins vs Tokens

The difference is the between an original and a fork ...

"What is a fork?", you ask.

It is the realized power of open-source.

Someone has created a new technology and open-sources it ... another person studies this technology, and is able to build upon the new technology by copying, or forking, the code!

OMG, that's crazy, it's like stealing !?!

What's even crazier, is that when you fork something; let's say the original program had a but, and got updated.

You can just update your fork!

What are coins? Coins are the new technology, Bitcoin being the most well-known. Also Ethereum, Solana, and others, have become, or are becoming, popular as well.

A token is a forked copy of this technology.

Forks can come in the form of tokenized currency, such as $CABIN or $HVND; or in the form of non-fungible tokens, or NFTs. But more on those later.

You get the difference between a coin and a token?

A coin is the primary technology, tokenized ... tokens are just copies built off of these technologies.

NFTs

Non-fungible tokens ... what does non-fungible mean ?!?

It means that it is singular, individual and unique.

Why are these jpegs selling for millions of dollars ?!

Essentially an NFT is a JSON file, a JavaScript Object Notation file; with a few bit numbers that correlate it to a file "on-chain" in the coin server of it's creation.

Ethereum NFTs live on the Ethereum network, Solana NFTs on the Solana network, etc.

One of the key components of web3 is called composability, and this means for objects to be able to attach and detach from entities or organizations with ease.

NFTs. specifically the image ones, have become portal-cards, of a sort, that enable one entrance to exclusive digital, and irl, spaces ...

Though to recap, NFTs are JSON files attached to media files; that are then stored "on-chain".


HOLD UP ~ what is the massive underlying technology that makes blockchain SO mindblowing OMG ... Call Santa and tell him to halt the sleigh, we've got some new toys ?!?

Distributed Ledger Technology

Accounting is a very particular expertise ... often left to the bookish and detail-oriented, for a reason ... while accounting at banks ... ... well, they've got a good gig going on, because no one has any idea wtf they do ... until now ...

Areas such as Decentralized Finance (DeFi) using tools such as Automated Money-Markets (AMM) are bringing once cloistered practices into more public domains!

While underneath it all, instead of the ledgers being held in secret by banking cartels ... these ledgers are publicly available for anyone to view and explore!

Alright, let's get back to it, shall we ?!


Decentralized Finance (DeFi)

Honestly, Whiteboard Crypto has some of the best videos on all of this, so I'm going to defer to them on this topic for now:

DAOs

Decentralized Autonomous Organizations