Blockchain for Beginners

What is blockchain?

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.

A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Check out this video on YouTube for a really great visual explanation.

What is cryptocurrency?

Cryptocurrency is decentralized digital money designed to be used over the internet on a blockchain. Bitcoin, which launched in 2008, was the first cryptocurrency, and it remains by far the biggest, most influential, and best-known. Bitcoin and other cryptocurrencies like Ethereum have grown as digital alternatives to money issued by governments. In fact, Bitcoin is now legal tender in El Salvador!

Watch this video for an introduction to cryptocurrency.

What is Web3?

Web3 is a term that refers to the blockchain ecosystem that exists on the World Wide Web. Web3 is decentralised internet - transactions are peer to peer and do not require a central intermediary.

This video is a helpful introduction to Web3.

What is an NFT?

NFT stands for non-fungible token. A NFT is a unit of data that is stored on the blockchain - the type of data could be a photo, a video, an audio file, or even a piece of data like a mortgage contract! Each NFT is uniquely identifiable which sets is apart from cryptocurrency.

NFTs therefore provide publicly verifiable proof of ownership and certificate of authenticity. NFTs can be stored or traded.

To find out more, have a look at this video.

What is a dApp?

Decentralised Applications for dApps are similar to traditional software applications, but they run on a blockchain network instead of on a traditional server.

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