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<!DOCTYPE html>
<html lang="en">
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<meta charset="UTF-8">
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<title>Document</title>
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<h1>Web3 FAQ</h1>
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<a class="button2" href="https://luciechevreuil.com">Lucie Chevreuil</a>
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<p>Web3 is a “decentralized internet”, using blockchains to store data instead of centralized databases owned by a few giant corporations. The tokenization of internet infrastructure would power the internet, allowing anyone to own a part of a blockchain, or earn voting power on the direction of the platform.</p>
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<p>Web2 refers to the evolution of the internet from static web pages (Web1) to internet sites where users can upload data and interact with the platforms. An example would be social media sites - Facebook, Instagram, TikTok.
In simpler terms - it is a read/write internet.</p>
<p>Web3 would be the next evolution of the internet, where data is stored on decentralized blockchains and is accessible to everyone. Instead of a company like Facebook owning the data and deciding how to use the data of its users without the users’ input, a Web3 Facebook could be owned by anyone willing to invest in the token powering the network, and vote on the direction of the platform.
In simpler terms - it is a read/write/own internet.</p>
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<p>These are two different ways to ensure the security of the network.</p>
<p>Proof of Work is validating transactions on the blockchain by using computer processing power to compete in solving a puzzle (the winner of which is compensated). This uses physical energy to power the computers that compete.</p>
<p>Proof of Stake does not require a competition as an algorithm will randomly select a winner who has invested in the blockchain’s currency and staked it (which is locking it up for a set period of time). The more tokens staked, the greater possibility of winning the bid. Since computer processing power is not needed to solve puzzles, Proof of Stake protocol does not require physical energy.</p>
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<p>Smart Contracts is a protocol that exists on the blockchain that will automatically execute based on the rules determined upon its creation. They are trustless (they don’t require a trusted centralized arbiter like a bank), autonomous (they execute automatically based on predetermined conditions) and transparent (anyone can view the history of transactions executed by the smart contract).</p>
<p>A common smart contract are those that exchange tokens (like <a href="https://etherscan.io/address/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2">this one</a>, which is exchanging WETH).</p>
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<p>Bitcoin is considered “Digital Gold”. It acts as a store of value and offers an alternative to the traditional monetary system. Batches multiple signatures and transactions together which allows for a degree of pseudonymity, and users can have multiple BTC addresses. Bitcoin uses the PoW system.</p>
<p>Ethereum, in contrast, is considered “Programmable Currency”. It acts as a Web3 platform for the next generation of smart contracts and dApps. The rise in popularity of ENS (Ethereum name service), and users having a single Ethereum address de-prioritizes privacy, as transactions are more easily traced. Ethereum uses the PoS system as of September 15, 2022.</p>
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<p>DAO - Decentralized Autonomous Organization - an organization of people with no central authority and no governing body. Members of a DAO share a common interest and token-holders can vote on DAO decisions.</p>
<p>Defi -Decentralized Finance - an alternative to the traditional monetary system where anonymous users can receive lines of credit, take out loans, and loan out funds in order to receive interest. There is no central authority needed to establish trust between users (such as a traditional bank).</p>
<p>Dex - Decentralized Exchange - a peer-to-peer marketplace where users can exchange cryptocurrencies without a central, governing authority. This is done through the use of smart contracts which are self-executing.</p>
<p>NFT - Non-Fungible Token - a unique token that cannot be copied or sub-divided. </p>
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<p>A dApp or decentralized application is an open-sourced application that runs peer-to-peer on a blockchain. It is different from a normal application because anyone can use the application as well as view the code base. dApps prioritize privacy since users can remain anonymous using the software. Uniswap is a popular dApp where users can anonymously exchange ERC-20 tokens.</p>
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<p>Ethereum Virtual Machine, or EVM, is software that sits on top of the Ethereum blockchain and recomputes the current state of the Ethereum blockchain. It also compiles smart contracts into Bytecode. Every Ethereum node runs on the EVM to maintain consensus across the blockchain (the current state of the network is shared across the computers powering the network).</p>
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<p>Storage - values are stored permanently on the Blockchain network.</p>
<p>Memory - a temporary modifiable storage that can be accessed only during contract execution. Once the execution is finished, its data is lost.</p>
<p>Stack - a temporary and non-modifiable storage.</p>
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<p>There are three options to connect to a node:</p>
<ol type="1">
<li>Connect to a cloud provider for a node</li>
<li>Purchase dedicated hardware and follow installation instructions to connect to a node</li>
<li>Download software (such as GETH for Ethereum) to your personal device and connect to a node</li>
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<p>Public key encrypts the information and can be shared among multiple users.
Private key decrypts the information and should be only accessed by the recipient of the encrypted information. The data sent by the public key can only be decrypted by the corresponding private key.</p>
<p>My <a href="https://github.com/sasszz/self-custody-wallet-react-app/tree/master/src/wallet">‘Not Coinbase Wallet’</a> makes use of a JS library that encrypts and decrypts cryptocurrency wallet private/public keys.</p>
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<p>Over my career as a customer service representative in the blockchain space, I have worked with many different Blockchain protocols. For example, at Coinbase, I was often researching transactions on block explorers for Ethereum, Bitcoin, Solana, Tezos, Avalanche, Binance Chain, Cardano and Ripple.</p>
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<p>My journey into cryptocurrency began during my professional career as a customer service representative for Robinhood, then ZenLedger (a cryptocurrency tax software start-up), and then Coinbase. I also joined a group that meets in Venice Beach called CryptoMondays, where blockchain enthusiasts meet weekly to discuss current events in the space.</p>
<p>I became passionate about blockchains when I learned of Coinbase’s mission to increase economic freedom in the world. I believe that blockchains return power back to the people by removing centralized governing authorities and allowing for greater peer-to-peer processes to be possible. It also gives people more control over their data, by making it public and accessible and removing it from the internal databases of corporations. Blockchains also allow for a degree of pseudonymity because built into the system is a desire and prioritization of privacy (although true privacy cannot be guaranteed).</p>
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<p>My favorite blockchain project is POAP - or Proof of Attendance Protocol. It is a special NFT that can be minted by users in a certain geographic region and/or at a certain time. I love this project because I believe it is the best use case found so far for NFT’s - a digital collectible that is connected to a real-world event, where a person had to be part of a specific organization or at a specific event in order to receive the NFT. </p>
<p>I have received POAP's for attendance to certain events, as well as distributed my own POAP.</p>
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