Crypto and Web3 for Beginners

Last week, we hosted an introductory workshop on crypto and web3 moderated by Cheryl Campos (@modelvc). Although these topics seem super complicated, they aren’t. However, they require some research and getting comfortable with the unknown. Below we outline some of the basic terms that can get you started on your journey.

The future that crypto and web3 brings us is a new age of the web, where the internet is shared online and governed by the collective “we” rather than owned by centralized entities.

What is Blockchain?

Blockchain is a distributed database that is shaped among the nodes of a computer network. As a database, blockchain stores information, like transactions, electronically in digital format.

Benefits of the Blockchain

Blockchain’s data is immutable/tamper-proof. Data cannot be modified once it is time stamped to the ledger (a record-keeping system/database), thus securing the blockchain from fraud and/or other malicious activity.

Anyone can view the transactions present on public blockchain networks–this means you can determine any asset’s entire history. Blockchain relies on a decentralized network of users to validate and record transactions instead of a central authority (this is called consensus).

Bitcoin vs bitcoin

Blockchain technology was resurfaced in 2009 by Satoshi Nakamoto- the pseudonym used by the mysterious person (or group) who invented bitcoin.

Bitcoin is a peer-to-peer version of electronic cash that allows online payments to be sent directly from one party to another without going through a financial institution. You might have heard it referred to as “The Blockchain” because it was the first major application of blockchain technology.

On the other hand, bitcoin, a digital currency that uses peer-to-peer technology to facilitate instant payments on the Bitcoin network, also known as the OG of cryptocurrencies.

Why is bitcoin a currency?

Currency has six characteristics that make it a useful currency. These characteristics allow a currency to find widespread use in an economy, limit monetary inflation and make them secure and safe to use. As a currency, bitcoin checks all of these boxes.

Why is bitcoin so volatile?

Price of bitcoin has been affected by macroeconomic factors and mass adoption - in Nov 9,2021 bitcoin was valued at $69K and a few weeks ago (Jan 24) bitcoin was at $35,126K.

There is so much potential in the market, but there is also a lot of volatility–similar to the stock market. Our tip, do your research.

Buying crypto

You can buy crypto a number of ways. You can use a centralized exchange there’s a middleman who conducts oversees trades and handles asset i.e. Coinbase. Or you can use a decentralized exchange you hold your assets instead of entrusting them to a third party like a bank and exchange them with others i.e. Uniswap - you will need a crypto wallet.

There are over 4,000+ cryptocurrencies. Below is a list of the top ten crypto market cap.

Crypto Wallets

Crypto wallets keep your private keys – the passwords that give you access to your cryptocurrencies – safe and accessible, allowing you to send and receive cryptocurrencies like Bitcoin and Ethereum. They come in many forms, from hardware wallets like Ledger (which looks like a USB stick) to mobile apps.

NFTs

Stands for non-fungible tokens, and are pieces of digital content linked to the blockchain. Types of NFT’s include art, music royalties, game objects, and more!

Join our community of like-minded women who are on their way towards learning more about crypto, finance, and more!