One year ago, when my friend first introduced me to Web3, I had a lot of questions. Terms like decentralized finance, blockchain technology, web3, and smart contracts sounded so strange to me.
My friend sent me videos and articles to help me understand, and I spent days researching, trying to grasp the idea of decentralization.
Eventually, I began to understand and things became clearer.
I understood the fact that Decentralization is all about the absence of a middleman.
The idea forms the backbone of Decentralized finance (DeFi) which means taking control of my financial holdings.
Instead of keeping my money in a bank, where I was subject to unnecessary fees, account freezes, withdrawal limits, and constant monitoring, I could keep all my funds in a secure wallet, accessible whenever I needed.
This discovery was mind-blowing, and I loved it.
However, I still faced some challenges.
Challenges I faced as a newbie⬇️
•Setting Up My Wallet
After downloading a wallet, I realized I had to copy and keep my seed phrase in a safe place. If I lost my seed phrase, I would lose my assets, and there would be no way to recover them.
•Using Web3 Applications
Navigating web3 apps was extremely difficult. I had to sign multiple transactions just to transfer my assets to another wallet, connect my wallet to every application I used, and bridge my assets every time I wanted to use a blockchain different from Ethereum.
The challenges were endless!
Fast forward to today, things are way easier for me because I have spent my time learning and using applications.
As a newbie here are some things you need to know about web3 and Ethereum⬇️
•What is Web3?
Web3 refers to the next generation of the internet, where users have control over their data, identity, and online interactions. Unlike previous versions (Web1 and Web2), where central authorities controlled user data and services, Web3 uses blockchain technology to create decentralized applications and services that aren’t owned or controlled by a single entity.
This concept is what we refer to as decentralized finance (DeFi).
•What is a Blockchain?
A blockchain is a software program that stores information in a decentralized way. To achieve this, a blockchain distributes information across a network of computers.
The blockchain is designed to be secure, transparent (open to everyone), and immutable (meaning no information stored on the blockchain can be changed or manipulated).
A Brief History of Ethereum
In 2008, an anonymous person or group called Satoshi Nakamoto created Bitcoin, the first cryptocurrency. Bitcoin was created as a peer-to-peer electronic cash system, meaning it was used as a means of exchange.
In 2013, Vitalik Buterin decided to create Ethereum. Ethereum was created because Bitcoin had limitations. While Bitcoin was a great digital currency, Vitalik had other plans for blockchain technology.
He wanted to create something that could do more than just peer-to-peer transactions, so he added smart contracts to Ethereum.
Smart contracts, in simple terms, are self-executing agreements that run on the blockchain. These agreements are written in code and are only executed when the conditions for the agreements are met.
Ethereum opened the door to the many uses we have today in DeFi, like the creation of decentralized applications for lending, borrowing, staking, trading, and more.
Currently, there are many blockchains, each operating based on its principles and rules.
•Getting Started on Ethereum
For anyone new to Ethereum here is a simplified guide to getting started⬇️
1. Download a Wallet
The first thing you need is a wallet. Wallets are where you keep your cryptocurrencies. For the Ethereum blockchain, you should download a MetaMask wallet.
2. Create Your Wallet
When you create a new wallet, you will receive 12 words called your seed phrase. Your 12-word seed phrase is very important. Make sure to copy it and save it somewhere safe. If you lose your seed phrase, you will lose your funds, and if someone gets access to your seed phrase, they can access your wallet.
3. Fund Your Wallet
After creating your wallet, you will get something called a wallet address,
which looks like this: 0xDc9aD8a4cBD206bCD287334370DC93942376D5Dc.
Your wallet address is like your account number; you can use it to receive Ethereum.
The next step is to buy Ethereum or ask your friend to send you some. You can buy Ethereum from MetaMask or an exchange like Binance.
4. Start Using Ethereum Applications
Now that you have Ethereum (ETH) in your wallet, you can start using apps that are built on the Ethereum blockchain.
The best part is that you can earn money by engaging with the Ethereum blockchain.
•Useful Resources⬇️
As you start your journey make sure to explore other resources that can help learn you about Ethereum and blockchain technology, join communities that talk about Ethereum, watch videos on YouTube, and listen to podcasts
Here are some resources that helped me⬇️
How to DeFi for beginners - A book by CoinGecko
For a more detailed overview of what Ethereum is check out this article
For your research, you can go on Google and use the search bar to find other resources
Google prompt - what is Ethereum blockchain for beginners,
The more you learn and engage, the easier it is to get the most out of the opportunities the Ethereum blockchain offers
•Final words
While Web3 and blockchain technology offer incredible opportunities, the challenge of onboarding new users remains.
Reflecting on my experience, there are a few aspects that could be improved⬇️
•Simplified Wallet Setup: Imagine being able to download a wallet like MetaMask and sign up using a Gmail or social account like Facebook. This would make the process much more accessible for new users.
•Easier Recovery Options: Instead of relying solely on a seed phrase for security, having multiple recovery options would provide peace of mind and ease the fear of losing access to one’s wallet.
•Seamless Blockchain Interactions: Think about sending an email. You don’t have to worry about what platform the recipient is using, whether it’s Gmail, Yahoo, or Outlook, the email reaches them without a hitch.
In Web3, imagine if sending tokens worked the same way, with no need to consider which blockchain you’re on. This would prevent the kind of mistakes that can lead to lost assets.
•Reduced Need for Bridging: In Web2, you can share a link from YouTube on Facebook, and it works seamlessly. In Web3, having the ability to move assets across different blockchains with the same ease, without the need for complex bridging processes would make the user experience far more user-friendly and enjoyable.
Using decentralized applications (Dapps) for the first time felt weird and different from using regular Web2 applications.
I think this is one of the reasons why Web2 users find it difficult to onboard to Web3. Ideally, there shouldn’t be a significant difference between using a regular Web2 app and a Web3 app. The only difference should be that one is decentralized and the other is not.
Fortunately, the Ethereum community is already working toward this with innovations like chain abstraction and account abstraction, which aim to improve the user experience.
By focusing on making the onboarding process as easy as possible, we can help newcomers embrace the benefits of decentralization without being overwhelmed by the complexities.
The future of Ethereum and Web3 holds incredible potential, and the more we can simplify the experience, the more people will be able to participate in and benefit from this exciting technology.