Web3 for every beginner

𝐖𝐞𝐛𝟑 𝐛𝐚𝐬𝐢𝐜𝐬 𝐞𝐯𝐞𝐫𝐲 𝐛𝐞𝐠𝐢𝐧𝐧𝐞𝐫 𝐬𝐡𝐨𝐮𝐥𝐝 𝐤𝐧𝐨𝐰
Are you new to web3? This thread is for you!
Before chasing alphas, airdrops or jobs, here are some basics you should know. Kindly repost, drop comments and tag your friends. Let’s learn together.🧡

𝟏. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐰𝐞𝐛𝟑?
Web 3 is a decentralized internet built on blockchain technology which shifts control from large companies to users. It uses cryptocurrency to enable users to own their data, identity and digital assets. Users basically own their digital footprints.

𝟐. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧?
This is the foundational and distributed ledger in web3 that records all data and transactions ensuring security and transparency e.g Ethereum, Solana, Polygon, Arbitrum.

𝟑. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐚𝐭𝐢𝐨𝐧?
This simply means information is stored across multiple servers or nodes. It means power, data, value are not controlled by a single entity. It eradicates single control.

𝟒. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲?
This is a digital currency that runs on blockchain technology. It is not controlled by any government or bank e.g Bitcoin, Sol, Ether (ETH).

𝟓. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐖𝐚𝐥𝐥𝐞𝐭?
This is a secure tool for users to send, receive and manage digital assets. It is used to manage private keys, access dApps and sign transactions e.g MetaMask, Phantom, Trust Wallet.

𝟔. 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐒𝐦𝐚𝐫𝐭 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬?
These are self executing code on the blockchain that automates agreements removing the need for intermediaries.

𝟕. 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐀𝐩𝐩𝐬 (𝐝𝐀𝐩𝐩𝐬)?
These are applications that run on decentralized networks that offer users owned alternatives to traditional apps. e.g OpenSea, Brave Browser, Marker DAO, Uniswap.

𝟖. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 (𝐃𝐞𝐅𝐢)?
This is the financial system on blockchain. It provides financial instruments and services through smart contracts on a blockchain. It revolves around dApps and it reduces the need for intermediaries such as exchanges, brokerages and banks. It runs through open source software that is built and maintained by developers.

𝟗. 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐃𝐞𝐜𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞𝐬 (𝐃𝐄𝐗𝐬)?
These are alternative payment ecosystems that use new protocols for financial transactions. It is a peer to peer crypto marketplace where users trade digital assets directly from their own wallet without needing a central company. It is non custodial and doesn’t require KYC e.g Automated Market Makers (Uniswap, SushiSwap) , DEX Aggregator (1inch).

𝟏𝟎. 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐂𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐞𝐝 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞𝐬 (𝐂𝐄𝐗)?
These are digital platforms run by a company that act as trusted middlemen for crypto trading, matching buyers and sellers and allowing easy fiat to crypto conversion e.g Binance, Coinbase. It is custodial and requires KYC.