Article directory
1. Web3.0 Era - Blockchain Technology
What is Web3.0
- Web3.0 refers to the next generation of Internet technology, which will further deepen the connection and interaction between people and people, people and things, and things and things on the basis of existing Web2.0 technology, so as to achieve more efficient, safer, A more decentralized and open Internet ecosystem.
- Web3.0 is driven by blockchain technology and decentralized applications (DApps). Through decentralization, it realizes the free flow of information and the decentralized circulation of value . Web3.0 also emphasizes the protection of user data privacy, enabling users to control their own data and identity more autonomously.
- The application scenarios of Web3.0 include decentralized social networks, decentralized markets, decentralized identity verification systems, decentralized electronic voting systems, and decentralized smart contract platforms. These applications will enable people to control their own information and value more autonomously, and realize a more fair, transparent and credible Internet ecosystem.
Core features of the web3.0 era
- Decentralization:
Application systems and services in the Web3.0 era will be more decentralized, without relying on centralized institutions or platforms , thus realizing the free flow and sharing of data and value . This also makes Web3.0 more credible and secure, and is not easy to be tampered with or attacked. - Protection of user data and privacy :
Web3.0 emphasizes the security and privacy of user data , allowing users to control their own data and identity more autonomously . Through decentralized identity authentication and encryption technology, users can store and share their own data more securely without worrying about being stolen or leaked. - Smart contract : The smart contract
of Web3.0 is an automatically executed computer program that can implement various transactions and agreements without the intervention of a third party. Smart contracts can not only increase the automation and efficiency of the system, but also eliminate intermediaries and reduce costs . - Decentralized application scenarios :
Web3.0 application scenarios include decentralized social networks, decentralized markets, decentralized identity verification systems , decentralized electronic voting systems, and decentralized smart contract platforms wait. These applications will enable people to control their own information and value more autonomously , and realize a more fair, transparent and credible Internet ecosystem. - Digital assets :
The digital assets of Web3.0 realize ownership, transaction and circulation through blockchain technology, and have the characteristics of decentralization, security, and credibility. Digital assets include digital currency, encrypted artwork, virtual land, game props, etc., and will become an important asset form in the Web3.0 era.
Technical basis of Web3.0
- The basis of Web3.0 is blockchain technology , which is a decentralized distributed ledger system that records all information about transactions and data . Through the distributed network and consensus mechanism , the blockchain technology realizes the characteristics of data non-tampering, decentralization, security and credibility , and provides a solid foundation for Web3.0.
- In addition to blockchain technology, Web3.0 also involves other related technologies, such as cryptography, smart contracts, decentralized storage, peer-to-peer communication , etc. The comprehensive application of these technologies enables Web3.0 to achieve more decentralization, security, privacy, and transparency.
- On the basis of Web3.0, some consensus mechanisms, governance mechanisms and standards are needed to ensure the sustainability and scalability of the system . For example, Ethereum adopts the PoW (Proof of Work) consensus mechanism, but in the future it may adopt a more efficient consensus mechanism , such as PoS (Proof of Stake) or DPoS (Proof of Share Authorization). At the same time, Web3.0 also requires standardized protocols and interfaces to facilitate interoperability and interaction between various systems.
2. Industry Track: Decentralized Finance and Digital Assets
Decentralized Finance (DeFi):
- The financial system based on blockchain technology realizes peer-to-peer value exchange and circulation, including decentralized exchanges, decentralized lending, stable coins, etc.
- It is a financial system based on blockchain technology, which can realize decentralized financial transactions, financial products and financial services. Compared with the traditional financial system, DeFi is more characterized by decentralization, high transparency, strong openness, and high degree of freedom.
Digital assets:
- Including digital currency, encrypted artwork, virtual land, game props, etc., ownership, transaction and circulation are realized through blockchain technology.
- Assets issued, traded and stored using blockchain technology. Digital assets can be divided into two types: Token and Cryptocurrency. Tokens are usually digital assets built on a certain blockchain and can represent some kind of physical asset or service, such as stocks, real estate, points, etc. Cryptocurrency is a digital asset with features such as decentralization, anonymity and security.
Some common DeFi applications and digital assets:
- Uniswap: It is a decentralized trading protocol that enables automated exchange of cryptocurrencies. Uniswap's token is UNI.
- MakerDAO: It is a decentralized stablecoin protocol that allows users to stake Ethereum collateral to obtain stablecoin DAI. MakerDAO's token is MKR.
- Compound: It is a decentralized lending protocol. Users can obtain loans by mortgaging digital assets, and can also provide digital assets to earn interest. Compound's token is COMP.
- Ethereum: It is a blockchain-based digital asset platform that supports the development of various tokens and smart contracts. The token of Ethereum is ETH.
- Bitcoin: It is a decentralized digital currency and the first successful cryptocurrency. Bitcoin's token is BTC.
digital collection
- Refers to digital artworks, music, game props and other virtual assets based on blockchain technology, whose value is usually determined by the following factors:
- Scarcity: The circulation of digital collections is usually limited, which makes some digital collections scarce, thereby increasing their value.
- Uniqueness: Digital collections are usually designed and produced by artists or designers, so each digital collection has its own unique design and characteristics, which also provides the possibility of increasing its value.
- Historical value: Some digital collections may be designed and produced by famous artists or designers, or are related to important events and people in history, so these digital collections have certain historical value.
- Social recognition: The value of digital collections is also affected by the recognition and acceptance of the market. If a digital collection is widely recognized and accepted by the society, its value will increase accordingly.
- It should be noted that the digital collection market is still in its infancy, and its value may be affected by various factors, including technological development, market changes, regulatory policies, etc. Therefore, investors should carefully assess risks and choose a reputable digital collection platform.
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introduction of some nouns
- Web3 wallets are digital wallets that users can use to store and manage their cryptocurrencies.
Similar to bank accounts in the traditional financial system , Web3 wallets can also be used to receive and send cryptocurrencies, but unlike traditional bank accounts, they do not require a centralized institution to manage and control assets. - Trading mode refers to the way cryptocurrencies are traded. Generally speaking, the transaction mode includes two ways.
1. Peer-to-peer transactions refer to transactions conducted directly on the blockchain. Since there is no centralized exchange, this transaction method is usually more private and secure.
2. Centralized exchanges refer to platforms like Binance, Coinbase, Kraken, etc., on which users can trade cryptocurrencies. - Funding account and trading account are two important concepts in cryptocurrency trading.
Funding accounts are accounts where users store cryptocurrencies, similar to bank accounts in the traditional financial system .
A trading account is an account used by users to conduct cryptocurrency transactions , and usually needs to be verified through real-name authentication and other methods. - The difference between the exchange's fund account, trading account, and personal web3 wallet
- The personal Web3 wallet is the wallet of the encrypted currency held by the user personally. Users can transfer, receive, and store cryptocurrencies through their personal Web3 wallets without relying on exchanges. When trading on an exchange, users need to deposit funds into the exchange's fund account before they can trade.
- Personal Web3 wallets are more secure. Since the personal Web3 wallet stores the user's own private key, only the user has the right to control it, so it is relatively safer. However, there are certain security risks in the capital account and trading account of the exchange. If the security measures of the exchange are insufficient, the user's funds may face the risk of being stolen.
- Personal Web3 wallets have more degrees of freedom. Users can choose their favorite Web3 wallet, or freely choose an exchange for trading, which is relatively more flexible. However, the capital account and trading account of the exchange are restricted by the exchange , and users need to abide by the regulations and procedures of the exchange when using it.
- Funding accounts on exchanges are similar to bank accounts in the traditional financial system , and are accounts that users use to store fiat or cryptocurrency . When trading on an exchange, users need to deposit funds into the exchange's fund account before they can trade. After the transaction is completed, users can withdraw funds from the exchange to their own wallets.
- The trading account of the exchange is the account for the user to trade. It can be understood as the account inside the exchange , and it is the account for the exchange to record the user's transaction. When users trade on the exchange, they are actually transferring funds between the trading accounts of the exchange, not the real transaction on the blockchain . The exchange's trading account records the user's transaction history, order information, positions, etc.
Introduction to some terms
Exchange (Exchange): A platform for cryptocurrency transactions, including centralized exchanges and decentralized exchanges.
Consensus mechanism: It is used in the blockchain network to determine the method and reward mechanism for verifying transactions, such as PoW, PoS, DPoS, etc.
Feixiaohao (CoinMarketCap): It is a cryptocurrency market analysis and price tracking platform that provides real-time market data and information.
ICO (Initial Coin Offering): Initial coin offering, similar to an initial public offering (IPO) in the stock market.
White Paper: A document that introduces the detailed technical solution, business model, team background, etc. of the blockchain project.
HODL: Refers to cryptocurrency holders holding their cryptocurrency holdings for a long period of time, a misspelling of "hold".
FOMO: refers to "fear of missing opportunities", which refers to the behavior of investors chasing ups and downs because they are afraid of missing opportunities when they see prices rising rapidly.
FUD: Refers to "Fear, Uncertainty, Doubt" (Fear, Uncertainty, Doubt). It is a means of spreading negative information and is often used to control the market.
Common transaction methods mainly include the following:
- Currency transaction: that is, the transaction between digital currency and digital currency , such as the transaction of Bitcoin to Ethereum.
- Leverage trading: Traders can borrow funds from the exchange for trading, so as to increase the leverage effect of the transaction, so as to obtain higher profits or losses.
- Futures trading: Traders can conduct digital currency transactions through futures contracts , and the contracts will be settled at the price specified in the contract when they expire.
- Option trading: Traders can conduct digital currency transactions through option contracts . The contract stipulates whether the trader has the right to buy or sell a certain digital currency at a specific price when it expires.
- Arbitrage trading: By buying and selling on different exchanges or markets at the same time , using the price difference to earn the difference.
It should be noted that currency trading is more risky than traditional financial transactions . Investors should pay attention to risk control and choose reputable exchanges.
Financial investment fields:
- Stock: A proof of ownership in a company. Buying shares means that you become a shareholder in the company, enjoying the potential benefits of dividends and capital appreciation that the company may pay.
- Dividend: A portion of earnings that a company pays to shareholders. Usually calculated as an amount per share, paid one to four times a year.
- Capital appreciation: Refers to an increase in the price of a stock, thereby increasing the capital gains for the stockholders. If you buy a stock at a low price and then sell it at a high price, you can achieve capital appreciation.
- Market capitalization: Refers to the value obtained by multiplying all the shares of a company by the current share price.
- Price-earnings Ratio (PE): Refers to the ratio of a stock's current price to the company's earnings per share . A higher price-earnings ratio usually indicates that the market has higher expectations for the company's future performance, and vice versa.
- Price-to-Book Ratio (PB): Refers to the ratio between a company's market capitalization and its net assets , usually used to assess the investment value of stocks.
- Index Fund: An investment vehicle that takes a collection of stocks or other assets and tries to perform well across the market as a whole. Index funds are designed to track a specific index, such as the S&P 500, rather than focusing on individual companies.
- Asset allocation: Refers to the allocation of funds by investors into different types of assets, such as stocks, bonds, real estate, etc., in order to reduce the risk of the investment portfolio and achieve better returns.
3. Industrial track: decentralized application and storage
Decentralized application definition (DApp):
- Through decentralization, application scenarios such as social networks, e-commerce, games, identity authentication, and smart contracts have been realized.
- Applications running on the blockchain , they do not rely on centralized servers or service providers, but are executed on the blockchain through smart contracts . Compared with traditional centralized applications, decentralized applications have higher security, decentralization and credibility, and can better protect user privacy and data security.
Examples of decentralized applications:
- Ethereum: Ethereum
is an open blockchain platform that supports the development of smart contracts and decentralized applications . Many DApps are developed based on the Ethereum platform, such as the decentralized exchange Uniswap, the cryptocurrency wallet MetaMask, etc. - Filecoin: Filecoin is a decentralized storage protocol
based on blockchain technology , aiming to establish a secure and efficient distributed storage network. Filecoin supports file storage, retrieval and transactions between nodes, and can be used to store various types of data. - Brave Browser:
Brave is a decentralized browser that blocks ads and trackers, offers faster page loads , and supports cryptocurrency payments and incentives. Brave users can earn BAT (Basic Attention Token) tokens by watching ads and using the browser.
Definition of decentralized storage:
- Through decentralization, the safe storage and sharing of data is realized, including IPFS, Filecoin, etc.
- The distributed storage system implemented by blockchain technology disperses and stores data on multiple nodes in the network to achieve redundant backup and high availability of data . Compared with traditional cloud storage, decentralized storage has higher reliability and security, because the data is not stored centrally on the server of a centralized organization, but distributed on multiple nodes in the network, and at the same time It can also better protect user privacy and data security.
Examples of decentralized storage:
- IPFS:
IPFS (InterPlanetary File System) is a decentralized distributed file system designed to establish a more secure, efficient and reliable file transfer and storage protocol. IPFS uses content addressing and peer-to-peer network technology to realize file storage and transmission. - Sia:
Sia is a decentralized cloud storage platform that uses blockchain technology and smart contracts to store and retrieve data. Users of Sia can rent storage space from other users, while also becoming storage providers and earning tokens . - Storj:
Storj is a decentralized cloud storage platform that uses a distributed network and encryption technology to ensure data security and reliability . Users of Storj can upload files to any node on the network and they can be retrieved when needed.
4. Blockchain: infrastructure and blockchain security and privacy
Examples for Understanding Blockchain Technology
- The blockchain can be understood in this way: it is likened to a public ledger , and everyone can view the contents of the ledger, but every transaction on the ledger needs to be verified and confirmed by others before it can be added to the ledger .
- Suppose there is a class of students who want to record the class's test scores , they can create a blockchain to save these scores. Each student can create an account on the blockchain, which records the student's name, student number and test scores.
- When a student wants to add his grades , he will send this information to other students (that is, nodes), and the nodes will first verify the authenticity of this information, and then add this information to the blockchain. Each node has a complete ledger. If there is an error in one of the ledgers, other nodes will automatically delete the wrong ledger to ensure the consistency of the entire ledger.
- The blockchain is very secure because each score record needs to be confirmed by other nodes before it can be added to the blockchain . At the same time, because everyone can view the contents of the ledger, the blockchain is also very transparent. The grade records of students in this class are a simple example. In fact, blockchain can be applied in many fields such as finance, Internet of Things, supply chain, etc., providing a more secure, efficient and transparent data exchange and storage method.
Main Features of Blockchain
- Decentralization : Blockchain technology does not require a centralized organization to manage the books, but maintains the books through all nodes in the network . This makes blockchain technology more decentralized and democratized, avoiding the risk of single point of failure and data tampering.
- Consensus mechanism : Blockchain technology uses a consensus mechanism to determine which transactions are recorded on the blockchain, avoiding the problems of double payment and tampering . The consensus mechanism adopted by Bitcoin is Proof of Work (PoW) , and other blockchain projects such as Ethereum have adopted other consensus mechanisms, such as Proof of Stake (PoS) .
- Immutable : Each block on the blockchain contains the hash value of the previous block, forming an immutable chain . Once a block is added to the blockchain, the transaction information in it cannot be changed, thus ensuring the security and credibility of the data.
- Programmability : Blockchain technology is programmable and can implement smart contracts and decentralized applications (DApps), making the exchange of data and value more automated, efficient and secure.
- Blockchain technology has a wide range of applications in finance, supply chain, Internet of Things, identity verification and other fields, and can achieve more efficient, secure and transparent business processes . At the same time, blockchain technology also faces some challenges, such as scalability, performance, privacy and other issues , which require continuous technological innovation and improvement.
The concept of blockchain infrastructure:
- Including public chain, alliance chain, side chain, cross-chain and other technologies, providing underlying technical support and solutions .
- Blockchain infrastructure refers to the technical platforms and tools that support the development, operation and management of blockchain applications . Here are some common blockchain infrastructures:
- Blockchain Nodes:
Blockchain nodes are computers running on a blockchain network that process transactions, validate blocks, and maintain network state. Blockchain nodes can be divided into different types such as full nodes, light nodes and miner nodes. - Blockchain browser :
The blockchain browser is a tool for viewing and querying blockchain data . Users can view data such as transaction records, block information, and address balances through the blockchain browser. - Blockchain smart contract:
A smart contract is a self-executing contract based on blockchain technology , which can realize the execution and fulfillment of the contract without the need for an intermediary agency. Smart contracts are often written in programming languages such as Solidity, Vyper, and Rust.
The concept of blockchain security and privacy:
- Including cryptography technology, privacy protection, smart contract auditing and other technologies, it improves the security and privacy of the blockchain system. Here are some common blockchain security and privacy concerns:
- 51% attack :
51% attack means that a malicious node or organization controls more than half of the computing power in the blockchain network, thereby being able to tamper with transaction records, double spend, etc. - Smart contract vulnerabilities:
Smart contract vulnerabilities refer to security vulnerabilities in smart contracts, such as reentrancy attacks, overflow attacks, and blocking attacks . - Privacy protection:
Blockchain technology is open and transparent in nature, but some applications need to protect user privacy , such as privacy coins such as Zcash and Monero. - For example, DeFi (decentralized finance) applications that have emerged in recent years have received a lot of attention. DeFi applications are built based on smart contracts and blockchain technology, which can realize functions such as decentralized lending, trading, and liquidity provision.
However, due to the security issues of smart contracts, DeFi applications also face many risks. In addition, due to the open and transparent nature of blockchain technology, DeFi applications need to maintain decentralization while protecting user privacy . Therefore, privacy protection technology has also become one of the important directions of DeFi application development.
