It is pertinent to note that if you MUST make it in the Web3 space as a potential candidate for jobs, you MUST possess a good basic knowledge of what the whole space is all about.
YES, that's why we're getting started with these basics. Understanding these concepts will give you an hedge over other Job Candidates in the space.
Knowledge is POWER, to KNOW is to be FREE. Let's get this done 👇
What Is a Blockchain?
A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.
How Does a Blockchain Work?
The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed. This is why blockchains are also known as a distributed ledger technology (DLT).
What is cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.
What is Decentralized Finance?
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies.
In the U.S., the Federal Reserve and Securities and Exchange Commission (SEC) define the rules for centralized financial institutions like banks and brokerages, which consumers rely on to access capital and financial services directly. DeFi challenges this centralized financial system by empowering individuals with peer-to-peer digital exchanges.
DeFi eliminates the fees that banks and other financial companies charge for using their services. Individuals hold money in a secure digital wallet, can transfer funds in minutes, and anyone with an internet connection can use DeFi.
What are NFTs?
NFT means non-fungible tokens (NFTs), which are generally created using the same type of programming used for cryptocurrencies. In simple terms these cryptographic assets are based on blockchain technology.
They cannot be exchanged or traded equivalently like other cryptographic assets.
Like Bitcoin or Ethereum. The term NFT clearly represents it can neither be replaced nor interchanged because it has unique properties. Physical currency and cryptocurrency are fungible, which means that they can be traded or exchanged for one another.
NFT USE CASES
Real-world items such as artwork and real estate can be represented with NFTs. These real-world tangible goods can be "tokenized" to make them more efficient to buy, sell, and trade while also lowering the risk of fraud.
Web 3.0 represents the next iteration or phase of the evolution of the web/internet and potentially could be as disruptive and represent as big a paradigm shift as Web 2.0 did. Web 3.0 is built upon the core concepts of decentralization, openness, and greater user utility.
Because of its key decentralization feature, Web 3.0 lends itself to technologies such as blockchain, distributed ledger, and decentralized finance (DeFi).
Diverse Ways of Making Money through Cryptocurrency, NFTs, DeFi and Web3 👀
1. Spot Trading: It is simply buying cryptocurrency low and selling high.
2. Futures Trading: Futures trading is a way to speculate on, or hedge against, the future value of all kinds of assets, including stocks, bonds, and commodities. Trading futures can provide much more leverage than trading stocks, offering the possibility for very high returns but with very high levels of risk.
3. Arbitraging: Arbitrage is a trading strategy in which an asset is purchased in one market and sold immediately in another market at a higher price, exploiting the price difference to turn a profit.
4. Airdrops: A crypto airdrop is a marketing method employed by startups in the cryptocurrency space.
It involves delivering tokens to the wallets of current cryptocurrency traders, either for free or in exchange for a small promotional service.
5. Mining: Mining is the process that Bitcoin and several other cryptocurrencies use to generate new coins and verify new transactions. It involves vast, decentralized networks of computers around the world that verify and secure blockchains, the virtual ledgers that document cryptocurrency transactions. In return for contributing their processing power, computers on the network are rewarded with new coins. It’s a virtuous circle: the miners maintain and secure the blockchain, the blockchain awards the coins, the coins provide an incentive for the miners to maintain the blockchain.
6. Yield Farming: It is a method of earning rewards or interest by depositing your cryptocurrency into a pool with other users. The pooled funds are used to carry out smart contracts such as cryptocurrency lending that generates interest in return. It includes; staking, lending, borrowing, et cetera
7. DeFi/Web3 Jobs: You can also offer your value and skills for money 🤑. That's why we're here 😃
8. Other Emerging Innovations and Technologies on the Decentralized Finance space like play to earn games, Move to earn, Watch to earn, and the likes.
It's indeed a very profitable space. Don't Fade this space!👀
CRYPTO/DEFI TERMINOLOGIES
Take Your time and learn these terminologies and "SLANGS" 👇
1. HODL:Hold On for Dear Life. Refers to holding onto a cryptocurrency, even during market downturns.
2. FOMO: Fear Of Missing Out. The anxiety of missing out on potential profits from a rising cryptocurrency.
3. DCA: Dollar-Cost Averaging. Investing a fixed amount of money in a cryptocurrency at regular intervals, regardless of price.
4. ATH: All-Time High. The highest price a cryptocurrency has ever reached.
5. ATL: All-Time Low. The lowest price a cryptocurrency has ever reached.
6. Moon: A cryptocurrency's price is expected to skyrocket.
7. Rug Pull:A fraudulent scheme where developers abandon a project after raising funds.
8. Whales: Individuals or entities holding large amounts of a cryptocurrency.
9. Sharks: Individuals or entities with significant influence in the crypto market.
10. Pump and Dump: A manipulative scheme where individuals artificially inflate a cryptocurrency's price and then sell their holdings.
11. Bagholder: Someone who holds onto a losing investment, hoping for a price recovery.
12. Diamond Hands: Someone who holds onto a cryptocurrency through market volatility.
13. Paper Hands: Someone who sells a cryptocurrency at a loss during a market downturn.
14. DYOR: Do Your Own Research. Encourages individuals to research before investing.
15. NGMI: Not Gonna Make It. Used to express pessimism about a project or the market.
16. WAGMI: We're All Gonna Make It. Used to express optimism about the future of crypto.
17. BTFD: Buy The Dip. Buying a cryptocurrency when its price falls.
18. DeFi: Decentralized Finance. Financial services built on blockchain technology.
19. NFT: Non-Fungible Token. A unique digital asset representing ownership of something.
20. Gas Fee: The transaction fee on the Ethereum network.
Congratulations You've known them NOW!👏
