Web1: read

Web2: read / write

Web3: read / write / own

What is a blockchain?

A blockchain is an immutable digital ledger shared across a distributed network of computers that collectively have the ability to make commitments (i.e record transactions and track assets). “Block” refers to a group of data and respective states stored together. “Chain” refers to the fact each block cryptographically references the previous parent block.

Blockchains are designed such that data in any given block cannot be changed without changing all the previous blocks, which would require the consensus of the entire network. This incentivizes individuals to help build the blockchain rather than hack it.

What does blockchain enable?

The blockchain allows for digital information to be recorded and distributed, but not edited, in a permissionless and trustless manner, decreasing the necessity for centralized entities.

What is a smart contract?

Smart contracts are programmable digital contracts built on the blockchain. “If, then” statements are used to build logic, allowing for the agreement to be automatically executed when the terms are met. Smart contracts enable a number of advantages compared to real-world agreements including trustlessness, predictable outcomes, public record, privacy protection, and visible terms of agreement. Smart contracts are the fundamental component of blockchain applications and have already been used for a variety of use cases, from stablecoins to gaming to insurance policy to DeSci!

What is a token?

In the world of web3, “tokens” are just another word for cryptocurrency or crypto assets, and are often used to describe cryptocurrencies outside of Ether and Bitcoin. Tokens provide the holder proof of ownership, which gives individuals certain rights or utilities. While interacting in the DeSci space, you may encounter three broad categories of tokens: DeFi tokens, governance tokens, and non-fungible tokens (NFTs).

What are DeFi tokens?

DeFi tokens are cryptocurrencies native to decentralized finance protocols, and aim to mimic functions of the traditional finance such as lending or trading in a distributed, permissionless manner.