diff --git a/mkdocs.yml b/mkdocs.yml index 2830ad0..296a5cf 100644 --- a/mkdocs.yml +++ b/mkdocs.yml @@ -130,10 +130,27 @@ nav: - getting-started/in-review.md - getting-started/sharing-is-caring.md - - Books: - - reference/books/index.md - - The Book of the Way: reference/books/lao-tzu-the-book-of-the-way.md - - Getting Things Done (GTD): reference/books/gtd-getting-things-done.md - - New Local Economy: reference/books/new-local-economy.md - - The Amazing Power of Deliberate Intent: reference/books/the-amazing-power-of-deliberate-intent.md - - reference/books/digital-minimalism.md + - Blockchain 101: + - blockchain-101/index.md + - blockchain-101/how-to-stay-safe.md + - blockchain-101/common-blockchain-terms.md + - blockchain-101/what-is-a-fork.md + - blockchain-101/what-is-a-mainnet.md + - blockchain-101/what-is-a-protocol.md + - blockchain-101/what-is-a-sidechain.md + - blockchain-101/what-is-atomic.md + - blockchain-101/what-is-a-wallet.md + - blockchain-101/what-is-a-whitepaper.md + - blockchain-101/what-are-bips.md + - blockchain-101/what-is-consensus.md + - blockchain-101/what-is-decentralized.md + - blockchain-101/what-is-erc.md + - blockchain-101/what-is-fungible.md + - blockchain-101/what-is-public-key-infrastructure.md + - blockchain-101/what-is-supply.md + - blockchain-101/what-is-mining.md + + - blockchain-101/proof-of-proof.md + - blockchain-101/attacking-the-blockchain.md + - blockchain-101/mining-the-blockchain.md + diff --git a/src/blockchain-101/attacking-the-blockchain.md b/src/blockchain-101/attacking-the-blockchain.md new file mode 100644 index 0000000..d6204a4 --- /dev/null +++ b/src/blockchain-101/attacking-the-blockchain.md @@ -0,0 +1,103 @@ + + +## What is a 51% attack? + +A 51% attack is a potential security vulnerability in blockchain networks, particularly those that use a proof-of-work (PoW) consensus mechanism, where a single entity or group of entities controls more than 50% of the network's computing power or hash rate. This can allow the controlling entity to manipulate the blockchain network's transactions and potentially reverse or double-spend previously confirmed transactions. + +In a blockchain network, transactions are confirmed and added to the blockchain by miners who compete to solve complex mathematical problems. These miners are rewarded with newly created coins and transaction fees. If a single entity or group of entities controls more than 50% of the network's computing power, they can theoretically control the blockchain's mining process and determine which transactions get confirmed. + +With this control, the attacking entity can potentially reverse or modify previously confirmed transactions, block new transactions from being confirmed, and perform double-spending attacks where they spend the same cryptocurrency twice. This can result in significant financial losses for users and undermine the credibility and trust of the blockchain network. + +To prevent 51% attacks, some blockchain networks have implemented alternative consensus mechanisms, such as proof-of-stake (PoS), which reduce the amount of computing power required to mine blocks and limit the power of any single entity or group of entities. Additionally, some blockchain networks have implemented measures to detect and mitigate 51% attacks, such as increased confirmations for transactions, alerts for unusual activity, and temporary halts on transactions. + + +## What is a double spend attack? + +A double spend attack is a potential security vulnerability in cryptocurrency networks where an individual or group attempts to spend the same cryptocurrency twice. In a double spend attack, a malicious user sends a transaction to a recipient, but then creates another transaction spending the same cryptocurrency to another recipient or even to themselves. + +This type of attack is possible because cryptocurrency transactions are typically processed and confirmed by a decentralized network of nodes or miners. Once a transaction is confirmed, it is added to the blockchain and cannot be altered. However, until a transaction is confirmed, there is a window of time during which a double spend attack can occur. + +To carry out a double spend attack, the attacker needs to have control over enough computing power to manipulate the network's transaction confirmation process or gain control of a large portion of the network's mining power. The attacker can then use this power to create a new block that includes the double-spent transaction instead of the original transaction. + +Cryptocurrency networks use various techniques to prevent double spend attacks, such as requiring a certain number of confirmations before a transaction is considered final, maintaining a record of unspent transaction outputs, and implementing consensus mechanisms that require the validation of other network nodes before a transaction is confirmed. These measures help to ensure the integrity of the network and prevent double spend attacks. + + +## What is a dusting attack? + +A dusting attack is a type of cryptocurrency attack where an attacker sends a small amount of a cryptocurrency to a large number of cryptocurrency addresses. The purpose of this attack is to de-anonymize the owners of those addresses by linking them together. + +The term "dusting" comes from the fact that the small amount of cryptocurrency sent to each address is often referred to as "dust", as it is too small to be of practical use to the recipient. + +The attacker may also use this attack to track the activity of cryptocurrency addresses and identify which ones are active. Once an address is identified as being active, the attacker can then use other attack methods, such as phishing or social engineering, to attempt to gain access to the owner's funds or personal information. + +To protect against dusting attacks, cryptocurrency users can use privacy-focused wallets or mixers to help conceal their transactions and avoid being linked to other addresses. Additionally, users should be wary of unsolicited small amounts of cryptocurrency in their wallets and avoid clicking on any links or providing personal information to unknown sources. + + + +## What is a reorg attack? + +A reorg attack, short for "reorganization attack", is a type of attack that can occur on a blockchain network, particularly those that use a proof-of-work consensus algorithm, such as Bitcoin. In a reorg attack, an attacker gains control of enough mining power in the network to invalidate or "reorganize" previously confirmed transactions. + +Here's how a reorg attack could work: + + +- The attacker gains control of a significant portion of the network's mining power, allowing them to mine new blocks faster than the rest of the network combined. +- The attacker creates a new, longer blockchain that includes transactions that they have deliberately excluded from the previous blockchain. This is possible because the attacker has more computing power than the rest of the network combined. +- The attacker broadcasts their longer blockchain to the network, and nodes in the network switch to the longer chain as it appears to be the valid one. +- Transactions that were previously confirmed on the previous chain are now invalidated, as they are not included in the new chain. This can lead to double-spending, where the attacker spends the same cryptocurrency twice. + +Reorg attacks are difficult to execute, as they require a significant amount of computing power to overpower the network. However, they have occurred in the past on certain blockchain networks. To protect against reorg attacks, blockchain networks may implement measures such as checkpointing, which ensures that a certain number of blocks cannot be reorganized, or a higher confirmation requirement for transactions to ensure that they are less likely to be invalidated. + + +## What is a replay attack? + +A replay attack is a type of attack that can occur in certain types of cryptocurrency transactions, particularly when a blockchain network is forked. In a replay attack, an attacker records a legitimate transaction on one blockchain network and then uses that same transaction data to execute a fraudulent transaction on a separate blockchain network. + +Here's how a replay attack could work: + +- A blockchain network is forked, resulting in two separate networks with identical transaction data up to the point of the fork. +- A user sends a legitimate transaction on one of the networks, say Network A. +- An attacker intercepts the transaction data on Network A and then broadcasts the same data on the other network, Network B. +- The transaction is confirmed on both networks, resulting in double-spending or other fraudulent actions. + +To protect against replay attacks, developers may implement measures such as unique transaction identifiers or replay protection mechanisms. Unique transaction identifiers ensure that transactions on one network cannot be replayed on another network, while replay protection mechanisms prevent transactions from being confirmed on both networks. These measures help ensure the integrity and security of cryptocurrency transactions on forked networks. + + +## What is a Sybil attack? + +A Sybil attack is a type of attack that can occur in a distributed system, such as a blockchain network, where an attacker creates multiple fake identities, or "sybils", to gain control or influence over the system. The attack is named after the book "Sybil" which is about a woman with dissociative identity disorder who had multiple personalities. + +Sybil attacks can be difficult to prevent, as there may be no way to distinguish between legitimate participants and fake identities. However, blockchain networks and other distributed systems can implement measures to mitigate the risk of Sybil attacks, such as requiring proof of work or proof of stake to participate in the network, or requiring participants to be verified by trusted third parties. + + + +## What is a quantum attack? + +A quantum attack is a type of attack that exploits the principles of quantum mechanics to break cryptographic systems that are currently considered secure. Quantum computing is a field of computing that uses quantum-mechanical phenomena to perform operations on data, and it has the potential to greatly increase the speed and efficiency of certain computing tasks. + +One of the most significant applications of quantum computing is in the field of cryptography, where it can be used to break many of the encryption algorithms that are currently used to secure sensitive information. For example, a quantum computer could use Shor's algorithm to factor large numbers quickly, which would render RSA and other public-key cryptosystems vulnerable to attack. + +However, the development of large-scale, general-purpose quantum computers is still in its early stages, and it is not yet clear when such computers will be available or how powerful they will be. As a result, many researchers and companies are actively working on developing post-quantum cryptographic systems that would be resistant to quantum attacks. + +In the meantime, organizations that are concerned about the potential for quantum attacks on their data can take steps to prepare for the future, such as developing quantum-resistant encryption methods or implementing strategies for detecting and responding to quantum attacks. + + +## What is a flash loan attack? + +A flash loan attack is a type of attack in which an attacker exploits a feature of decentralized finance (DeFi) platforms that allow users to take out loans without collateral. These loans, known as flash loans, enable users to borrow a large amount of cryptocurrency for a short period of time, typically less than a second. + +In a flash loan attack, an attacker takes out a flash loan, uses the borrowed funds to manipulate the price of a cryptocurrency, and then repays the loan before it can be detected. This can be done by using the borrowed funds to buy or sell a large amount of cryptocurrency, causing the price to fluctuate, and then profiting from the price movements. + +For example, an attacker could borrow a large amount of a cryptocurrency using a flash loan, use the borrowed funds to buy a large amount of a different cryptocurrency, causing the price to increase, and then sell the purchased cryptocurrency for a profit. This would cause the price of the original cryptocurrency to drop, potentially causing losses for other traders. + +Flash loan attacks are a concern in DeFi platforms because they allow attackers to manipulate the price of cryptocurrencies and profit at the expense of other users. To prevent flash loan attacks, developers can implement measures such as limiting the size of flash loans, adding transaction fees to flash loans, and implementing circuit breakers to halt trading during periods of high volatility. + + +## What is a cryptojacking attack? + +Cryptojacking is a type of cyber attack where an attacker hijacks a victim's computing resources, such as their computer or smartphone, to mine cryptocurrencies without their knowledge or consent. In a cryptojacking attack, the attacker typically infects a victim's system with malware that runs in the background, using the victim's processing power and electricity to mine cryptocurrencies for the attacker. + +Cryptojacking attacks can be carried out through various means, including malicious software downloads, phishing scams, or by exploiting vulnerabilities in web browsers or plugins. The victim may not even be aware that their computer or smartphone is being used for mining, as the malware is designed to run in the background without causing noticeable performance issues. + +Cryptojacking attacks can result in decreased system performance, increased electricity costs, and can even damage hardware if left unchecked. Additionally, the attacker may be able to steal personal information or gain access to sensitive data stored on the victim's system. To prevent cryptojacking attacks, it is important to keep software up-to-date, use anti-malware software, and to be cautious of suspicious downloads or emails. + diff --git a/src/blockchain-101/bulk.md b/src/blockchain-101/bulk.md new file mode 100644 index 0000000..0de3518 --- /dev/null +++ b/src/blockchain-101/bulk.md @@ -0,0 +1,361 @@ +bulk list +What is a cryptocurrency exchange? +What is a centralized exchange (CEX)? +What is a white-label cryptocurrency exchange? +What is a cryptocurrency exchange hack? + +How does a smart contract work? +What is an oracle in blockchain technology? +What is cold storage? +What is hot storage? +What is an airdrop? +What is liquidity? +What is slippage? +What is an order book? +What is arbitrage? +What is margin trading? +What is an Atomic Swap? +What is an NFT? +What is Bitcoin? +What is Ethereum? +What is Ripple? +What is Litecoin? +What is Bitcoin Cash? +What is Tether? +What is Dogecoin? +What is Cardano? +What is Binance Coin? +What is Polkadot? +What is Solana? + +What is a security token offering (STO)? +What is a utility token offering (UTO)? +What is a token public sale (ICO/IEO/STO)? +What is a token? +What is a token sale? +What is a leveraged token? +What is a token standard? +What is a gas token? +What is a token swap? +What is a token burn? +What is a token freeze? +What is a token lockup? +What is a token unlock? +What is a token distribution mechanism? +What is a governance token? +What is a utility token? +What is a security token? +What is a token standard? +What is a token swap? +What is a token burn? +What is a token freeze? +What is a token lockup? +What is a token unlock? +What is a token distribution mechanism? +What is a governance token? +What is a utility token? +What is a hard cap in a token sale? +What is a soft cap in a token sale? +What is a token economics model? +What is a token contract? +What is a token swap platform? +What is a governance token? +What is a governance token? +What is a token burn? +What is a token swap? +What is a token airdrop? +What is a token sale? +What is a token standard? +What is a gas token? +What is a utility token? +What is a security token? +What is a token burn rate? +What is a governance token? +What is a wrapped token? +What is a token swap? +What is a token migration? +What is a token burn event? +What is a token staking program? +What is a token launchpad? +What is a token price discovery? +What is a token vesting schedule? +What is a token distribution mechanism? +What is a tokenomic model? +What is a token standard? +What is a token bridge? +What is a social token? +What is a governance token? +What is a wrapped token? +What is a protocol token? + +What is an ICO (Initial Coin Offering)? +What is an initial coin offering (ICO)? +What is an Automated Market Maker (AMM)? +What is an initial DEX offering (IDO)? +What is a DAO (Decentralized Autonomous Organization)? +What is a distributed ledger technology (DLT)? +What is a directed acyclic graph (DAG)? +What is a segregated witness (SegWit)? +What is a multi-party computation (MPC)? +What is a blockchain as a service (BaaS)? +What is a hardware security module (HSM)? +What is a peer-to-peer (P2P) network? +What is a cryptocurrency mining? +What is a smart contract? +What is a roadmap? +What is a masternode? +What is a node? +What is a peer-to-peer network? +What is a gas fee? +What is a stablecoin? +What is a smart contract platform? +What is a hard cap in an ICO? +What is a soft cap in an ICO? +What is a smart contract audit? +What is a trading pair? +What is a limit order? +What is a market order? +What is a stop-loss order? +What is a take-profit order? +What is a stablecoin swap? +What is a yield farming? +What is a liquidity pool? +What is a flash loan? +What is a smart contract platform? +What is a gas limit? +What is a gas price? +What is a burn address? +What is a distributed ledger? +What is a cross-chain bridge? +What is a layer 2 scaling solution? +What is a rollup? +What is a sharding? +What is a virtual machine? +What is a gas fee market? +What is a stable asset? +What is a price oracle? +What is a cross-chain swap? +What is a transaction malleability? +What is a UTXO model? +What is a account-based model? +What is a multi-signature transaction? +What is a green cryptocurrency? +What is a wrapping? +What is a bridge currency? +What is a private sale? +What is a public sale? +What is a venture capital investment in cryptocurrency? +What is a stablecoin basket? +What is a hard cap in an ICO? +What is a soft cap in an ICO? +What is a smart contract? +What is a trading pair? +What is a limit order? +What is a market order? +What is a stop loss order? +What is a take profit order? +What is a trading fee? +What is a node? +What is a gas fee? + + +What is a centralized oracle? +What is a node incentive? +What is a smart contract platform? +What is a validator? +What is a governance process? +What is a gas limit? +What is a gas price? +What is a nonce? +What is a replay protection? +What is a chain reorganization? +What is a vulnerability? +What is a zero-day exploit? +What is a smart contract vulnerability? +What is a peer-to-peer network? +What is a coin mixer? +What is a liquidity pool? +What is a flash loan? +What is a price impact? +What is a slippage? +What is a yield farm? +What is a staking pool? +What is a yield aggregator? +What is a yield optimization strategy? +What is a cross-chain bridge? +What is a wrapped asset? +What is a yield farming pool? +What is a flash swap? +What is a node operator? +What is a timestamping service? +What is a timestamped document? +What is a content-addressed storage system? +What is a cryptocurrency futures contract? +What is a perpetual swap? +What is a margin trade? +What is a short sell? +What is a long position? +What is a bear market? +What is a bull market? +What is a whale? +What is a market maker? +What is a liquidity provider? +What is a yield farming strategy? +What is a stablecoin? +What is a privacy coin? +What is a transaction mixer? +What is a liquidity mining program? +What is a yield farming aggregator? +What is a permissioned blockchain? +What is a permissionless blockchain? +What is a private blockchain? +What is a public blockchain? +What is a hybrid blockchain? +What is a federated blockchain? +What is a consortium blockchain? +What is a tangle? +What is a hashgraph? +What is a sharding? +What is a cross-chain interoperability? +What is a rootstock? +What is a Polkadot parachain? +What is a plasma chain? +What is a state channel? +What is a Bitcoin Lightning Network? +What is a Layer 2 scaling solution? +What is a Chainlink oracle? +What is a smart contract? +What is a gas fee? +What is a gas limit? +What is a gas price? +What is a miner? +What is a block reward? +What is a halving event? +What is a Merkle tree? +What is a colored coin? +What is a Bitcoin full node? +What is a homomorphic encryption? +What is a ring signature? +What is a nonce in Bitcoin mining? +What is a Bitcoin transaction confirmation? +What is a Bitcoin mempool? +What is a Lightning Network channel? +What is a dust limit? +What is a premine? +What is a Bitcoin vanity address? +What is a SegWit address? +What is a multi-signature address? +What is a Bitcoin white label solution? +What is a Bitcoin ATM? +What is a Bitcoin debit card? +What is a Bitcoin futures market? +What is a Bitcoin options contract? +What is a Bitcoin ETF? +What is a Bitcoin IRA? +What is a Bitcoin mining difficulty? +What is a Bitcoin mining hash rate? +What is a Bitcoin mining hardware? +What is a Bitcoin mining software? +What is a Bitcoin mining profitability calculator? +What is a masternode? +What is a staking pool? +What is a validator? +What is a validator node? +What is a validator set? +What is a slashing condition? +What is a chain reorganization? +What is a transaction malleability? +What is a hash function? +What is a Merkle root? +What is a block height? +What is a block size limit? +What is a soft cap? +What is a hard cap? +What is a pre-sale? +What is a white paper? +What is a roadmap? +What is a smart contract audit? +What is a replay protection? +What is a chain split? +What is a replay protection mechanism? +What is a checkpoint? +What is a fee market? +What is a transaction fee? +What is a dust transaction? +What is a batched transaction? +What is a transaction accelerator? +What is a change address? +What is a transaction output? +What is a script? +What is a block explorer? +What is a Bitcoin full node software? +What is a node? +What is a UTXO? +What is a liquidity pool? +What is a market order? +What is a limit order? +What is a stop loss order? +What is a margin order? +What is a long position? +What is a short position? +What is a trading pair? +What is a stablecoin? +What is a pegged cryptocurrency? +What is a smart contract platform? +What is a digital identity? +What is a privacy coin? +What is a traceability feature? +What is a fungibility? +What is a liquidity mining program? +What is a yield farming program? +What is a network upgrade? +What is a crypto influencer? +What is a crypto portfolio tracker? +What is a price oracle? +What is a node operator? +What is a full-time miner? +What is a liquidity provider? +What is a yield aggregator? +What is a crypto lending platform? +What is a crypto derivatives platform? +What is a cross-chain bridge? +What is a cross-chain swap? +What is a layer 2 scaling solution? +What is a blockchain interoperability protocol? +What is a crypto tax software? +What is a cross-chain communication protocol? +What is a chain split? +What is a private sale? +What is a public sale? +What is a market correction? +What is a bull market? +What is a bear market? +What is a whale? +What is a stablecoin peg? +What is a crypto payment gateway? +What is a smart contract? +What is a limit order? +What is a market order? +What is a stop-loss order? +What is a take-profit order? +What is a margin trading platform? +What is a cryptocurrency index fund? +What is a cryptocurrency ETF? +What is a privacy coin? +What is a coin burn? +What is a whitepaper? +What is a roadmap? +What is a rebranding event? +What is a web 3.0 browser? +What is a cross-border payment network? +What is a hash rate? +What is a liquidity pool? +What is a yield farming program? +What is a flash loan? +What is a crypto price oracle? +What is a cross-chain bridge? +What is a crypto-backed loan? +What is a stablecoin collateralization ratio? +What is a cryptocurrency tax haven? +What is a crypto debit card? +What is a crypto lending platform? diff --git a/src/blockchain-101/common-blockchain-terms.md b/src/blockchain-101/common-blockchain-terms.md new file mode 100644 index 0000000..86d392e --- /dev/null +++ b/src/blockchain-101/common-blockchain-terms.md @@ -0,0 +1,78 @@ +# Common blockchain things + + +## What is a passphrase / recovery seed phrase? + +A passphrase is a sequence of words or other text that is used to generate a cryptographic key or password. Passphrases are often used to create more secure and memorable passwords, as they are typically longer and more complex than traditional passwords. Passphrases are also used in some cryptographic systems as a means of authentication, encryption, or digital signing. In the context of cryptocurrency, a passphrase may be used to encrypt a private key or seed phrase, providing an additional layer of security for the associated funds. + +## What is a meme coin? + +A meme coin is a cryptocurrency that is created based on a popular internet meme or cultural phenomenon. These coins are often created as a joke or satire, and do not have any serious technological or financial backing. Some of the most popular meme coins include Dogecoin, which features the Shiba Inu dog from a popular internet meme, and Garlicoin, which was created as a parody of Bitcoin. While meme coins can be fun and entertaining, they are often highly volatile and not considered a serious investment by many in the cryptocurrency community. + + +## What is a hash rate? + +In the context of blockchain and cryptocurrency, hash rate refers to the computational power being used to mine and validate blocks on a network. It represents the speed at which a miner can solve a mathematical puzzle to add a new block to the blockchain. The higher the hash rate, the faster a miner can find the solution and add a new block to the blockchain, which increases their chances of earning a block reward. Hash rate is usually measured in hashes per second (H/s), kilohashes per second (KH/s), megahashes per second (MH/s), gigahashes per second (GH/s), or terahashes per second (TH/s), depending on the scale of the mining operation. + + +## What is a marketcap? + +Market capitalization, or market cap, is a metric used to measure the total value of a publicly traded company or cryptocurrency. It is calculated by multiplying the total number of outstanding shares or tokens by the current market price per share or token. Market cap provides a rough estimate of the size and value of a company or cryptocurrency and is used by investors to compare different assets and assess their relative worth. + + +## What is a block reward? + +A block reward is the amount of cryptocurrency that is given to the miner or validator of a new block in a blockchain network. Block rewards serve as incentives for miners to validate transactions and maintain the network. + +In the case of Bitcoin, for example, the block reward is currently 6.25 BTC, and it is halved every 210,000 blocks or approximately every four years. This is to ensure that the total supply of Bitcoin remains limited to 21 million, as per the protocol. Other cryptocurrencies may have different block reward systems and mechanisms for adjusting them. + + +## What is a merkle tree? + +A Merkle tree, also known as a hash tree, is a data structure used in cryptography and computer science to efficiently verify the integrity of large data sets. It is named after its inventor, Ralph Merkle. + +A Merkle tree is constructed by recursively hashing pairs of nodes, until only a single hash value, known as the root hash or Merkle root, remains. Each non-leaf node in the tree represents the hash of its two child nodes, and the Merkle root represents the hash of the entire tree. + +Merkle trees are commonly used in blockchain technology, where they are used to represent the transaction history of a particular block, allowing for efficient and secure verification of the block's contents. In this context, each transaction is represented as a leaf node in the Merkle tree, and the root hash is included in the block header. By comparing the root hash in the block header to the computed root hash of the transactions, nodes can quickly verify the integrity of the block's contents without having to verify each individual transaction. + + +## What is a block height? + +In blockchain technology, a block height refers to the number of blocks that have been added to the blockchain since the genesis block, which is the first block of the chain. Each block contains a reference to the previous block in the chain, so by counting the number of blocks between a given block and the genesis block, the block height of that block can be determined. + +Block height is an important metric in blockchain networks as it allows nodes to synchronize with the network and ensures that all participants have a consistent view of the blockchain. It is also used to calculate the difficulty level of the mining process and the block reward, both of which can change as the block height increases. + + + +## What is a block confirmation? + +In blockchain, block confirmation refers to the process by which a transaction or a block is verified and added to the blockchain. Once a block is added to the blockchain, it is considered "confirmed." The more confirmations a block has, the more secure and permanent the transaction is considered to be. + +Each block in a blockchain contains a unique cryptographic hash that is generated from the block's data, including the transactions that are included in the block. When a new block is added to the chain, it includes a reference to the previous block's hash, which creates a chain of blocks that cannot be altered without also changing all subsequent blocks in the chain. + +The confirmation process involves a network of nodes or miners working to validate the transactions in a block and add it to the blockchain. The process of validating transactions and adding them to the blockchain can take some time, especially if the network is congested, and the number of confirmations required to consider a transaction or a block as final varies depending on the cryptocurrency. + + +## What is a transaction hash? + +A transaction hash is a unique identifier for a specific transaction on a blockchain network. It is a string of alphanumeric characters that serves as a digital fingerprint for the transaction. The hash is generated using a cryptographic hash function, which takes the transaction data and produces a fixed-length output that uniquely identifies the transaction. This hash is used to track and verify the status of a transaction on the blockchain network. It can be used to look up details of the transaction on a blockchain explorer, including the amount of cryptocurrency transferred, the sender and receiver addresses, and the timestamp of the transaction. + + +## What is a block hash? + +A block hash is a unique identifier for a block in a blockchain. It is a fixed-length string of letters and numbers that is generated using a cryptographic hash function, such as SHA-256, and is used to uniquely identify and verify the contents of a block. The block hash is generated by taking the hash of the block header, which includes the block's version, timestamp, previous block hash, Merkle root hash, nonce, and difficulty level. The block hash must meet certain criteria, such as being below a certain target difficulty level, in order for the block to be considered valid and added to the blockchain. Once a block has been added to the blockchain, its block hash becomes part of the input for the next block's hash, creating a chain of blocks that are linked together by their hashes. + + +## What is a hash function? + +A hash function is a mathematical function that takes in input data of arbitrary size and produces a fixed-size output known as a hash value, hash code, or message digest. Hash functions are designed to be one-way functions, meaning it is easy to compute the hash value from the input data, but extremely difficult (if not impossible) to compute the original input data from the hash value. + +Hash functions are widely used in computer science and cryptography for a variety of purposes, such as data integrity checks, digital signatures, password storage, and blockchain technology. In blockchain technology, hash functions are used to create the cryptographic links between blocks in the chain, which ensures that the data in the blocks cannot be tampered with without being detected. + + +## What is a block reward halving? + +A block reward halving is an event that occurs in some cryptocurrency protocols, where the amount of rewards given to miners or validators for successfully adding a new block to the blockchain is reduced by half. This is typically a pre-programmed and predictable event that occurs after a certain number of blocks have been added to the blockchain. + +For example, in the Bitcoin protocol, the block reward is halved approximately every four years, or every 210,000 blocks. The initial block reward for Bitcoin was 50 BTC, but it was halved to 25 BTC in 2012, halved again to 12.5 BTC in 2016, and then halved to 6.25 BTC in 2020. This reduction in block rewards is intended to maintain the scarcity of the cryptocurrency and prevent inflation. + diff --git a/src/blockchain-101/how-do-i.md b/src/blockchain-101/how-do-i.md new file mode 100644 index 0000000..527c4c7 --- /dev/null +++ b/src/blockchain-101/how-do-i.md @@ -0,0 +1,77 @@ +# How do I... ? + + +## How do I buy cryptocurrency? + +To buy cryptocurrency, you can follow these general steps: + +Choose a cryptocurrency exchange or broker: There are many reputable cryptocurrency exchanges and brokers, such as Coinbase, Binance, Kraken, and Gemini, among others. Choose one that is available in your region and has good reviews. + +Create an account: Once you have chosen an exchange or broker, you will need to create an account by providing your personal information, including your name, email, and address, and in some cases, your government-issued ID. + +Fund your account: To buy cryptocurrency, you need to fund your account using a bank transfer, credit card, or debit card. Some exchanges may also support other payment methods such as PayPal or wire transfer. + +Choose the cryptocurrency you want to buy: Once your account is funded, you can choose the cryptocurrency you want to buy. Most exchanges offer a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. + +Place an order: To buy cryptocurrency, you need to place an order on the exchange or broker. You can choose to buy at the current market price or set a limit order at a specific price. Once the order is executed, the cryptocurrency will be credited to your account. + +Transfer your cryptocurrency to a wallet: It is recommended to transfer your purchased cryptocurrency to a wallet that you control. This could be a hardware wallet, software wallet, or paper wallet. By doing this, you have full control over your private keys and can ensure the security of your cryptocurrency. + +Remember to always do your own research, read reviews, and take extra precautions to protect your personal and financial information when buying cryptocurrency. + +## How do I sell cryptocurrency? + +To sell cryptocurrency, you can follow these general steps: + +Choose a cryptocurrency exchange or broker: You can use the same exchange or broker where you bought your cryptocurrency or choose a different one that supports the cryptocurrency you want to sell. + +Log in to your account: Once you have chosen an exchange or broker, log in to your account using your email and password. + +Choose the cryptocurrency you want to sell: If you have multiple cryptocurrencies in your account, choose the one you want to sell. + +Place a sell order: You can sell your cryptocurrency at the current market price or set a limit order at a specific price. Once the order is executed, the cryptocurrency will be sold and the proceeds will be credited to your account. + +Withdraw the funds: Once you have sold your cryptocurrency, you can withdraw the funds to your bank account, credit card, or debit card, depending on the payment methods supported by the exchange or broker. + +Transfer your remaining cryptocurrency to a wallet: If you have any remaining cryptocurrency in your account, it is recommended to transfer it to a wallet that you control. This could be a hardware wallet, software wallet, or paper wallet. By doing this, you have full control over your private keys and can ensure the security of your remaining cryptocurrency. + +Remember to always do your own research, read reviews, and take extra precautions to protect your personal and financial information when selling cryptocurrency. + + +## How do I trade cryptocurrency? + +To trade cryptocurrency, you can follow these general steps: + +Choose a cryptocurrency exchange or trading platform: There are many cryptocurrency exchanges and trading platforms available, each with different features, fees, and supported cryptocurrencies. Do your research and choose a reputable platform that meets your needs. + +Create an account: Once you have chosen a platform, create an account by providing your personal information, such as your name, email, and phone number. You may also need to verify your identity and provide additional documentation. + +Fund your account: To start trading, you will need to fund your account with cryptocurrency or fiat currency, depending on the trading pairs offered by the platform. Most exchanges accept bank transfers, credit cards, and other payment methods. + +Choose a trading pair: Cryptocurrency trading pairs are pairs of cryptocurrencies that can be traded against each other, such as BTC/USD or ETH/BTC. Choose the trading pair you want to trade based on your investment strategy and market analysis. + +Place a buy or sell order: You can place a buy order at the current market price or set a limit order at a specific price. Similarly, you can place a sell order at the current market price or set a limit order at a specific price. Once the order is executed, the cryptocurrency will be bought or sold and the proceeds will be credited to your account. + +Monitor your trades: Keep an eye on your trades and the market conditions to make informed decisions. You may want to set stop-loss orders to limit your losses or take-profit orders to lock in your gains. + +Remember to always do your own research, understand the risks involved, and follow a disciplined investment strategy when trading cryptocurrency. It's also important to take extra precautions to protect your personal and financial information when using a cryptocurrency trading platform. + + +## How do I mine cryptocurrency? + +Mining cryptocurrency involves using specialized computer hardware and software to solve complex mathematical equations and verify transactions on a blockchain network. Here are the general steps to mine cryptocurrency: + +Choose a cryptocurrency to mine: There are many different cryptocurrencies to mine, each with different requirements and rewards. Research and choose a cryptocurrency that is profitable and fits your mining setup. + +Set up a mining rig: You will need a computer with specialized hardware, such as an ASIC miner or GPU, to mine cryptocurrency. You will also need mining software to manage your hardware and connect to the blockchain network. + +Join a mining pool: Mining pools are groups of miners who combine their computing power to increase their chances of solving blocks and earning rewards. Joining a mining pool can be more profitable than mining solo. + +Configure your mining software: Set up your mining software to connect to the mining pool and start mining. You will need to enter your wallet address and other information to receive your mining rewards. + +Monitor your mining: Keep an eye on your mining activity and profitability. You may need to adjust your mining software or hardware settings to optimize your mining performance. + +Manage your mining rewards: When you successfully mine a block, you will receive a reward in the form of cryptocurrency. You can either hold on to the cryptocurrency or sell it on a cryptocurrency exchange. + +It's important to note that mining cryptocurrency can be complex, expensive, and time-consuming. You will also need to consider factors such as electricity costs, cooling, and maintenance. Before getting into mining, be sure to do your research and calculate the potential costs and profits involved. + diff --git a/src/blockchain-101/how-to-stay-safe.md b/src/blockchain-101/how-to-stay-safe.md new file mode 100644 index 0000000..dc18c1e --- /dev/null +++ b/src/blockchain-101/how-to-stay-safe.md @@ -0,0 +1,14 @@ +## How can I stay safe while using cryptocurrency? + +Here are some tips to help you stay safe while using cryptocurrency: + +- Keep your private keys secure: Your private keys are what allow you to access your cryptocurrency. Keep them safe and do not share them with anyone. +- Use a hardware wallet: A hardware wallet is a physical device that stores your private keys offline, making them more secure than online wallets. +- Use two-factor authentication: Two-factor authentication (2FA) adds an extra layer of security to your accounts by requiring a code in addition to your password. +- Use strong passwords: Use a unique, complex password for each of your cryptocurrency accounts, and never reuse passwords across multiple accounts. +- Verify the authenticity of websites and apps: Always make sure you are visiting legitimate websites and downloading apps from trusted sources. +- Beware of phishing scams: Phishing scams are common in the cryptocurrency space. Be wary of any unsolicited emails, messages, or links asking for your personal information. +- Keep your software up to date: Make sure your cryptocurrency wallets, software, and operating systems are up to date with the latest security patches. +- Research before investing: Always do your research before investing in any cryptocurrency. Be cautious of promises of high returns or quick profits. +- Use reputable exchanges: Use reputable cryptocurrency exchanges that have a strong reputation and a history of secure operations. +- Be cautious of public Wi-Fi: Public Wi-Fi networks are not secure and can be compromised by hackers. Avoid logging into your cryptocurrency accounts or making transactions while connected to public Wi-Fi networks. \ No newline at end of file diff --git a/src/blockchain-101/index.md b/src/blockchain-101/index.md new file mode 100644 index 0000000..d5008bf --- /dev/null +++ b/src/blockchain-101/index.md @@ -0,0 +1,9 @@ +# Blockchain 101 + +A blockchain is a digital ledger or database that is distributed across a network of computers or nodes. It is used to store a record of transactions, which are verified and validated by the network of nodes. Each block in the chain contains a timestamp and a link to the previous block, creating a secure and tamper-proof chain of data. + +Blockchains were first introduced in 2008 as part of the Bitcoin cryptocurrency, but have since been adopted for use in a variety of industries and applications beyond cryptocurrency. The key feature of a blockchain is its decentralized nature, which means that no single entity or organization has control over the network. Instead, the network is maintained and secured by a large number of independent nodes that work together to validate and record transactions. + +Blockchains use complex algorithms and cryptography to ensure the security and integrity of the data stored on the network. Transactions are verified by nodes using a consensus mechanism, which is typically a form of proof-of-work or proof-of-stake. Once a transaction is verified, it is added to the blockchain and cannot be altered or deleted. + +Because of their decentralized and secure nature, blockchains have the potential to revolutionize a wide range of industries, from finance and banking to supply chain management and voting systems. \ No newline at end of file diff --git a/src/blockchain-101/mining-the-blockchain.md b/src/blockchain-101/mining-the-blockchain.md new file mode 100644 index 0000000..261918a --- /dev/null +++ b/src/blockchain-101/mining-the-blockchain.md @@ -0,0 +1,9 @@ +## What is a mixer? + +A mixer, also known as a cryptocurrency mixer, tumbler, or shuffler, is a privacy tool used to increase the anonymity of cryptocurrency transactions. A mixer works by pooling together multiple transactions from different users and then sending the mixed cryptocurrency to new addresses. + +When a user sends cryptocurrency through a mixer, their coins are mixed with coins from other users, making it difficult to trace the original source and destination of the transaction. This process can make it more difficult for third parties to track the movement of cryptocurrency and link transactions to specific individuals. + +Mixer services can vary in terms of their features and how they operate. Some mixers charge a fee for their services, while others may offer their services for free. Some mixers may also offer additional features such as delaying the time between the input and output transactions, or the ability to choose specific addresses for the output transactions. + +However, it is important to note that while mixers can increase the anonymity of cryptocurrency transactions, they are not foolproof and can potentially be compromised. As such, it is still recommended to exercise caution and take other privacy measures such as using a VPN and strong passwords, and avoiding sharing personal information online. \ No newline at end of file diff --git a/src/blockchain-101/proof-of-proof.md b/src/blockchain-101/proof-of-proof.md new file mode 100644 index 0000000..d4a0723 --- /dev/null +++ b/src/blockchain-101/proof-of-proof.md @@ -0,0 +1,62 @@ +## What is a proof-of-work (PoW) consensus? + +Proof-of-work (PoW) is a consensus mechanism used in some blockchain networks to validate transactions and create new blocks in the chain. It is a process that involves solving complex mathematical equations or puzzles, which requires a significant amount of computational power. + +In a PoW consensus, nodes on the network compete to solve the puzzle, and the first node to solve it is rewarded with a block of newly minted cryptocurrency. This process is known as mining, and it is used to maintain the security and integrity of the network. + +The difficulty of the puzzle is adjusted regularly to maintain a steady rate of block creation, and the network is designed to require a certain amount of computational power to prevent spam or attacks. The energy consumption associated with PoW mining has led to concerns about the environmental impact of some blockchain networks. + +PoW was the original consensus mechanism used in Bitcoin and is still used in several other blockchain networks, but it has been criticized for its energy consumption and scalability issues. Some networks have since moved to other consensus mechanisms, such as proof-of-stake, which requires less energy and computational power. + + +## What is a proof-of-stake (PoS) consensus algorithm? + +Proof-of-stake (PoS) is a consensus algorithm used in some blockchain networks as an alternative to proof-of-work (PoW). In PoS, validators, also known as stakers, are chosen to validate new blocks and earn rewards based on the amount of cryptocurrency they have staked or locked up in the network. + +Validators are chosen based on a combination of factors, including the amount of cryptocurrency they have staked and the length of time they have been active on the network. This process is known as forging or minting, and it requires significantly less computational power than PoW. + +PoS networks typically have a fixed supply of cryptocurrency, and new coins are created through a process known as coin minting or coin generation. Validators earn a portion of the newly minted coins as a reward for validating blocks, and this reward is typically proportional to the amount of cryptocurrency they have staked. + +One advantage of PoS over PoW is that it requires significantly less energy and computational power, making it more environmentally friendly and cost-effective. However, PoS networks can still be vulnerable to certain types of attacks, such as a "nothing-at-stake" attack, where validators attempt to validate multiple versions of the blockchain to double-spend their cryptocurrency. To prevent this, most PoS networks implement penalties or slashing mechanisms for validators who behave maliciously or attempt to cheat the system. + + +## What is a delegated proof-of-stake (DPoS) consensus algorithm? + +Delegated proof-of-stake (DPoS) is a consensus algorithm used in some blockchain networks as an alternative to proof-of-work (PoW) and proof-of-stake (PoS). In DPoS, token holders in the network vote to elect a group of delegates or witnesses who are responsible for validating transactions and creating new blocks. + +Delegates in DPoS are typically chosen based on the number of votes they receive from token holders, and they are responsible for maintaining the integrity and security of the network. Unlike in PoW or PoS, where any participant can validate transactions and create blocks, DPoS delegates are chosen through a democratic voting process. + +One advantage of DPoS over other consensus algorithms is that it allows for faster transaction times and lower fees, since a smaller group of trusted validators are responsible for validating transactions and creating blocks. However, DPoS networks can be more centralized than other consensus algorithms, since a small group of delegates are responsible for maintaining the network. + +To prevent malicious behavior or collusion among delegates, most DPoS networks implement a system of penalties or slashing mechanisms for delegates who behave maliciously or attempt to cheat the system. Additionally, token holders in the network can vote to replace delegates who are not performing their duties effectively. + + +## What is a proof of activity (PoA) consensus algorithm? + +Proof of Activity (PoA) is a hybrid consensus algorithm that combines Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. In PoA, the miners first need to solve a PoW puzzle to mine a block, then a PoS system takes over to determine who will validate the block. The validators are selected based on their stake, and they are responsible for verifying the correctness of the block. + +The PoA algorithm aims to combine the security of PoW with the efficiency and scalability of PoS. Since PoW only needs to be performed to mine a block and not to validate it, it reduces the energy consumption associated with traditional PoW-based cryptocurrencies. On the other hand, PoS ensures that validators have a stake in the network and are incentivized to act honestly. + +PoA was first introduced in 2014 by a cryptocurrency called Peercoin, and it has since been adopted by other cryptocurrencies such as Komodo and VeriCoin. + + +## What is a proof of authority (PoA) consensus mechanism? + +Proof of Authority (PoA) is a consensus mechanism that is often used in private or consortium blockchains. In PoA, the nodes that validate transactions and create new blocks are authorized by the network itself, instead of using computational power or stake to determine who can mine blocks. + +In a PoA system, a set of pre-approved nodes, known as validators or authorities, are given the power to create new blocks and validate transactions. These validators are typically trusted members of the network or have been vetted by a central authority. Validators are incentivized to act honestly as they can be penalized or removed from their position if they behave maliciously. + +PoA is known for its speed and low energy consumption compared to other consensus mechanisms, but it sacrifices some degree of decentralization and security as the validators are not chosen through a decentralized process. + +PoA has been used in various private and consortium blockchain projects such as Microsoft's Azure Blockchain Service and Ethereum's Kovan testnet. + + +## What is a zero-knowledge proof (ZKP)? + +A zero-knowledge proof (ZKP) is a cryptographic technique that allows one party (the prover) to prove to another party (the verifier) that a given statement is true, without revealing any additional information beyond the statement's validity. In other words, a ZKP allows a person to prove they know a secret without revealing the secret itself. + +This can be useful in a variety of scenarios, such as verifying an identity without revealing any personal information, or proving that a computation was performed correctly without revealing any of the inputs or outputs. + +ZKPs are based on complex mathematical algorithms and typically involve a process of interactive communication between the prover and verifier. The prover constructs a proof, and the verifier checks the proof's validity without learning anything else about the proof or the underlying statement. + +ZKPs have gained attention in the blockchain and cryptocurrency space as a means of preserving privacy and enabling secure transactions. For example, ZKPs can be used to prove ownership of a certain amount of cryptocurrency without revealing the amount or any additional transaction history. This can help protect users' privacy while still ensuring the validity of transactions on the blockchain. diff --git a/src/blockchain-101/unsorted.md b/src/blockchain-101/unsorted.md new file mode 100644 index 0000000..8b82bed --- /dev/null +++ b/src/blockchain-101/unsorted.md @@ -0,0 +1,132 @@ +## What is a rug pull? + +A rug pull is a type of exit scam that occurs in the cryptocurrency world where a project or a token issuer suddenly abandons or pulls out of a project without any warning, taking all the funds invested in the project with them. This often leads to a sudden and sharp drop in the value of the token or coin, leaving investors with substantial losses. The term "rug pull" comes from the image of someone suddenly pulling a rug out from under someone else's feet, causing them to lose their balance and fall. Rug pulls are a significant risk in the largely unregulated world of cryptocurrency investing and trading, particularly in the decentralized finance (DeFi) space. + + + +## What is a cryptocurrency mining pool? + +Cryptocurrency mining pools are groups of miners who combine their computing power to increase their chances of finding a block and earning block rewards. When a block is successfully mined, the reward is split among the miners based on their contributed hash rate. + +Mining pools are beneficial for individual miners who may not have the necessary computing power to mine cryptocurrency on their own. By joining a pool, they can combine their resources with others to increase their chances of earning rewards. + +Mining pools can also help to improve the overall security and decentralization of a cryptocurrency network. By having a larger pool of miners working together, it becomes more difficult for any one entity to control a significant portion of the network's computing power and potentially manipulate the network. + +Mining pools typically charge a fee for their services, which can range from 0% to 5% of the rewards earned by the pool. The fee is used to cover the costs of maintaining the mining pool and providing support to the miners. Some mining pools also offer additional features such as automatic payouts, monitoring tools, and mining software. + + +## What is a pre-mine? + +A pre-mine is a term used to describe a situation where a portion of the total supply of a cryptocurrency is generated and allocated to a specific group of individuals or entities prior to the public launch of the network. The pre-mined coins are usually held by the developers, investors, or other stakeholders in the project. + +Pre-mining can be controversial, as it can be seen as giving an unfair advantage to the pre-mine holders, particularly if they have significant control over the network. However, pre-mining can also provide a way to fund development and bootstrap a network's initial adoption. + +It is important for investors to research the pre-mine structure of a cryptocurrency before investing, as it can have a significant impact on the supply and distribution of the coins. + + +## What is fair-release? + +Fair-release refers to the distribution model of a cryptocurrency or token where the initial supply is distributed fairly and transparently to participants rather than being pre-mined or distributed to a small group of individuals or organizations. The goal of a fair-release model is to provide a more equitable and decentralized distribution of the cryptocurrency or token, which can help to promote community involvement and trust. In a fair-release model, the distribution of tokens may be achieved through methods such as airdrops, mining, staking, or initial coin offerings (ICOs) with specific rules and conditions to ensure a wide and diverse distribution. + + +## What is a difficulty level? + +n cryptocurrency mining, the difficulty level is a measure of how difficult it is to find a new block on the blockchain network. It is an essential component of the Proof-of-Work (PoW) consensus algorithm and is designed to adjust automatically every few blocks to maintain a stable block time. + +The difficulty level is set by the network protocol and is proportional to the amount of computing power or hash rate that is being used to mine the cryptocurrency. When there is a higher hash rate, the difficulty level increases, making it more challenging to find new blocks. Conversely, when there is a lower hash rate, the difficulty level decreases, making it easier to find new blocks. + +The goal of the difficulty level adjustment is to maintain a stable block time, which is the time it takes to create a new block. In Bitcoin, for example, the target block time is 10 minutes, so the difficulty level is adjusted every 2016 blocks to ensure that the average block time remains close to 10 minutes. + + +## What is a halving? + +A halving is a programmed event in some cryptocurrencies, particularly in Bitcoin, where the block reward that miners receive for mining a new block is cut in half. This means that the rate at which new coins are created decreases, which can have an impact on the supply and price of the cryptocurrency. + +In Bitcoin, for example, the block reward started at 50 BTC per block and has been halved twice so far, resulting in the current block reward of 6.25 BTC. The halving occurs every 210,000 blocks, or roughly every four years, and will continue until the maximum supply of 21 million BTC is reached. The next halving is expected to occur in 2024. + +Halvings are designed to gradually reduce the issuance of new coins and increase scarcity over time, which can potentially contribute to long-term value appreciation of the cryptocurrency. + + +## What is a miner? + +A miner is a participant in a blockchain network who performs the process of mining, which involves solving complex mathematical problems to validate transactions and create new blocks on the blockchain. Miners use powerful computer hardware and specialized software to perform this task, and they are rewarded with cryptocurrency for their work. The process of mining is essential to the security and integrity of the blockchain, as it ensures that transactions are verified and recorded in a tamper-proof manner. + + +## What is a mining fee / transaction fee? + +A transaction fee is a fee that users have to pay to the network to have their transactions processed and confirmed by the network's validators or miners. When a user sends a cryptocurrency transaction, they can choose to include a transaction fee that will be added to the transaction and paid to the miner or validator that successfully includes the transaction in the next block. + +Transaction fees serve as an incentive for miners or validators to prioritize transactions with higher fees over those with lower fees. When the network is congested and there are more transactions than can be included in the next block, users who include higher fees have a better chance of having their transactions processed quickly. + +Transaction fees can vary depending on the network and the current demand for block space. Some networks may also have a minimum fee requirement to prevent spam and ensure that all transactions have a certain level of value. + + +## What is a blockchain explorer? + +A blockchain explorer is a web tool that allows users to view and navigate through the blockchain of a specific cryptocurrency. It provides a user interface for users to browse and search through transaction histories and data stored on the blockchain, such as blocks, transactions, addresses, and other metadata. + +A blockchain explorer can be used to look up the status of a transaction, verify whether a block has been added to the blockchain, view the current state of the blockchain network, and analyze network activity. It can also be used to monitor and track specific addresses, view their transaction history and balance, and investigate suspicious activity. + +Most blockchain explorers are open source, meaning that anyone can access and use the code for free. They can be run locally or accessed online through a web browser, and there are many different blockchain explorers available for different cryptocurrencies. + + +## What is a bug bounty program? + +A bug bounty program is a reward program offered by many software and technology companies that encourage and incentivize independent security researchers to report vulnerabilities and weaknesses in their software or products. The goal of these programs is to identify and address security issues before they can be exploited by attackers. + +Bug bounty programs typically have a set of rules and guidelines that dictate what types of vulnerabilities are eligible for rewards, the amount of the reward, and how to report them. The rewards can vary significantly, depending on the severity of the vulnerability and the policies of the company running the program. Some programs offer cash rewards, while others offer merchandise, recognition, or other perks. The aim of these programs is to create a mutually beneficial relationship between the company and the security community, which can help improve the security of products and services. + + +## What is a Web3 application? + +A Web3 application is a type of decentralized application (dApp) that is built using Web3 technologies, which enable interaction with blockchain networks such as Ethereum. Unlike traditional centralized applications, Web3 applications are decentralized, meaning that they are not controlled by a single entity or authority, but rather are distributed across a network of computers. + +Web3 applications are typically built using smart contracts, which are self-executing programs that run on the blockchain. These smart contracts are immutable, meaning that they cannot be modified once they are deployed, and they enable developers to create complex applications that can perform a variety of functions. + +Web3 applications can be used for a wide range of purposes, from financial transactions and voting systems to gaming and social media platforms. They offer users greater security and control over their data and assets, as well as the ability to interact directly with other users without the need for intermediaries. + + +## What is Liquid Governance? + +Liquid Governance refers to the decentralized decision-making process used to manage the Liquid Network, which is a federated sidechain of the Bitcoin blockchain designed for fast and confidential transactions. + +The Liquid Network's governance model is based on a multi-party federation composed of exchanges and other businesses that have a vested interest in the network. Each member of the federation has a say in the governance process through the use of Liquid Network Improvement Proposals (LNIPs). + +LNIPs are similar to Bitcoin Improvement Proposals (BIPs) and are used to propose changes to the Liquid Network's protocol or rules. Members of the federation can then discuss and vote on the proposal, and if a majority approves it, the changes are implemented on the network. + +Overall, Liquid Governance is designed to ensure that the Liquid Network remains a secure, stable, and reliable platform for conducting confidential and fast transactions, while also allowing the network to evolve and adapt to meet the changing needs of its users. + + +## What is AtomicDEX + +AtomicDEX is a decentralized exchange that allows users to trade cryptocurrencies without having to rely on a centralized exchange. It is developed by Komodo, a blockchain platform that offers various solutions for businesses and developers. AtomicDEX is designed to provide a secure and private way to exchange cryptocurrencies, using atomic swaps technology that enables peer-to-peer trading between different blockchain assets. + +AtomicDEX is available for desktop and mobile devices, and it supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many others. It also allows users to create their own custom trading pairs, making it a versatile platform for trading different types of assets. + +One of the main advantages of AtomicDEX is that it provides users with full control over their funds. This means that users do not need to deposit their assets into a centralized exchange, which can be subject to hacks and thefts. Instead, users can keep their assets in their own wallets and trade them directly with other users, using atomic swaps technology. + +In addition to its decentralized trading capabilities, AtomicDEX also offers a range of other features, including a built-in wallet, support for hardware wallets, and a decentralized order book. Overall, AtomicDEX is a powerful tool for anyone looking to trade cryptocurrencies in a secure, private, and decentralized way. + +## What is SALTPACK? + +SALTPACK is an open-source encryption format and software suite used for secure and private communication. It was developed by the team behind the encrypted email service ProtonMail, and is designed to be easy to use, compatible with a wide range of software and platforms, and resistant to attacks from quantum computers. + +SALTPACK uses modern cryptography techniques, including authenticated encryption and public key cryptography, to provide strong security guarantees while also being easy to use. It is designed to be compatible with popular email and messaging software, as well as other types of software that handle encrypted data. + +One of the key features of SALTPACK is its ability to handle large files, such as photos and videos, in a secure and efficient manner. It also supports features such as message signing and verification, key exchange, and anonymous messaging. Overall, SALTPACK is a useful tool for anyone who values privacy and security in their digital communications. + +## What is an airdrop? + +An airdrop is a distribution of free tokens or coins to a large number of cryptocurrency wallets or addresses. It is a marketing strategy often used by blockchain projects to gain visibility, reward users, or encourage participation in their ecosystem. Airdrops typically involve creating a snapshot of the blockchain at a particular block height, and then distributing a certain number of tokens to the addresses holding a particular cryptocurrency at that snapshot. The airdropped tokens can then be traded or used within the project's ecosystem. Airdrops can also be selective, where tokens are distributed to a specific audience, such as holders of a particular cryptocurrency or members of a certain community. + + + +## What is a token pre-sale / private-sale? + +A token pre-sale, also known as a private sale, is a fundraising method in which a project offers early access to its tokens to a selected group of investors before the public sale or initial coin offering (ICO). The purpose of a pre-sale is to raise funds to support the development of the project, and it is typically offered to high net worth individuals, venture capital firms, and institutional investors. + +During a pre-sale, the tokens are sold at a discounted price compared to the public sale price, which incentivizes investors to buy in early. Additionally, pre-sale investors may receive additional benefits such as bonus tokens, lower minimum purchase requirements, or priority access to future offerings. + +Token pre-sales are commonly used by blockchain startups as a way to secure funding and generate interest in their project before the public sale. However, it's important to note that pre-sales are typically only available to accredited investors and may be subject to regulations depending on the jurisdiction. + + diff --git a/src/blockchain-101/what-are-bips.md b/src/blockchain-101/what-are-bips.md new file mode 100644 index 0000000..8d9434a --- /dev/null +++ b/src/blockchain-101/what-are-bips.md @@ -0,0 +1,42 @@ +# What is BIP? + +A Bitcoin Improvement Proposal (BIP) is a formal document used to propose changes to the Bitcoin protocol, network, or related processes. The BIPs are used to initiate discussions and to build consensus around proposed changes to the Bitcoin network. They are similar in concept to Internet Engineering Task Force (IETF) RFCs (Request for Comments) and are intended to provide a standard format for communicating ideas, improvements, and technical specifications for the Bitcoin network. + +The BIP process was introduced in 2011 and has since become an integral part of the Bitcoin development process. BIPs are categorized into three types, including Standards Track BIPs, Informational BIPs, and Process BIPs. Standards Track BIPs are used to propose new features or changes to the Bitcoin protocol, while Informational BIPs are used to document design issues or general guidelines. Process BIPs, on the other hand, are used to propose changes to the BIP process itself. + +BIPs are reviewed and discussed by the Bitcoin community, and once a BIP is accepted, it can be implemented by Bitcoin developers. The BIPs are important for maintaining the decentralized and open nature of the Bitcoin network by ensuring that proposed changes are well thought-out, thoroughly tested, and agreed upon by the community before being implemented. + +There are currently over 300 Bitcoin Improvement Proposals (BIPs), with some of the most notable ones being: + +- BIP 1: BIP Purpose and Guidelines +- BIP 2: Hierarchy for Deterministic Wallets +- BIP 8: Version Bits with Lock-In by Deployment +- BIP 9: Version Bits with Threshold Signaling +- BIP 11: M-of-N Standard Transactions +- BIP 13: Address Format for Pay-to-Script-Hash +- BIP 14: Protocol Version and User Agent for P2P Data Exchange +- BIP 16: Pay to Script Hash +- BIP 17: OP_CHECKHASHVERIFY +- BIP 21: URI Scheme +- BIP 22: getblocktemplate Fundamentals +- BIP 23: getblocktemplate Updates for Segregated Witness +- BIP 32: Hierarchical Deterministic Wallets +- BIP 34: Block v2, Height in Coinbase +- BIP 39: Mnemonic code for generating deterministic keys +- BIP 44: Multi-Account Hierarchy for Deterministic Wallets +- BIP 49: Derivation scheme for P2WPKH-nested-in-P2SH based accounts +- BIP 65: OP_CHECKLOCKTIMEVERIFY +- BIP 68: Relative lock-time using consensus-enforced sequence numbers +- BIP 70: Payment Protocol +- BIP 78: Payment Protocol MIME Types +- BIP 141: Segregated Witness (Consensus layer) +- BIP 143: Transaction Signature Verification for Version 0 Witness Program +- BIP 144: Segregated Witness (Peer Services) +- BIP 174: Partially Signed Bitcoin Transactions (PSBT) +- BIP 340: Schnorr Signatures for secp256k1 +- BIP 341: Taproot: SegWit Version 1 output spending rules +- BIP 342: Validation of Taproot Scripts by Miners +- BIP 343: The Taproot Softfork +- BIP 345: Legacy Address Format for SegWit Addresses + +Note that this list may not be exhaustive and there may be more BIPs that have been proposed or accepted since the time of writing. diff --git a/src/blockchain-101/what-is-a-fork.md b/src/blockchain-101/what-is-a-fork.md new file mode 100644 index 0000000..49da834 --- /dev/null +++ b/src/blockchain-101/what-is-a-fork.md @@ -0,0 +1,37 @@ +# What is a fork? + +In the context of blockchain technology, a fork refers to a situation where a blockchain network splits into two or more separate chains, each following a different set of rules. This can occur intentionally or unintentionally and can result in two versions of the blockchain existing simultaneously. + +Forks can occur for various reasons, including disagreements among the community or developers on the direction of the project, security vulnerabilities, or upgrades to the network's protocol. A fork can have significant implications for the affected blockchain and its users, including the creation of a new cryptocurrency and changes to the value of existing cryptocurrencies. + + +## What is a hard fork? + +A hard fork is a significant and permanent divergence from the previous version of a blockchain protocol, resulting in the creation of a completely new blockchain. This means that any nodes or miners that continue to use the previous version of the protocol will be unable to validate transactions on the new blockchain, and vice versa. + +Hard forks can occur due to a variety of reasons, such as changes in consensus rules, changes in the block size limit, or disagreements among the community regarding the direction of the project. Once a hard fork occurs, the new blockchain will have a separate history from the old blockchain, and any transactions or balances on the old blockchain will not be recognized on the new one. + +Examples of notable hard forks in the cryptocurrency world include the Bitcoin Cash hard fork in 2017, which was created as a result of disagreements over the block size limit, and the Ethereum hard fork in 2016, which was created to address the aftermath of the DAO hack. + + +## What is a soft fork? + +A soft fork is a change to a blockchain protocol that is backward-compatible with previous versions. In a soft fork, the new rules are more restrictive than the old rules, so nodes that haven't been updated can still accept transactions and blocks produced by nodes running the new software. This means that there is no need for a complete network upgrade or a change in the underlying consensus rules. + +An example of a soft fork is the implementation of Segregated Witness (SegWit) in the Bitcoin network. SegWit introduced a new transaction format that separated signature data from transaction data, allowing for more transactions to be stored in each block. This change was backward-compatible with previous versions of the Bitcoin software, so nodes that didn't upgrade to the new version could still participate in the network. + + +## What is a fork activation mechanism? + +A fork activation mechanism is a process used to activate a fork, which is a significant change to a blockchain protocol. Fork activation mechanisms are used to coordinate network upgrades, ensure that all nodes on the network are running the same software, and prevent network splits. + +There are several types of fork activation mechanisms, including: + +- User-Activated Soft Fork (UASF): In a UASF, users of the network signal their support for the fork by running new software that enforces the new rules. If enough users signal their support, the new rules become the consensus rules of the network. +- Miner-Activated Soft Fork (MASF): In a MASF, miners signal their support for the fork by including a special flag in the blocks they mine. If enough miners signal their support, the new rules become the consensus rules of the network. +- Community-Activated Hard Fork (CAHF): In a CAHF, the community agrees on a certain block height at which the hard fork will be activated. Once that block height is reached, the new rules are enforced, and the network splits into two separate blockchains. +- Miner-Activated Hard Fork (MAHF): In a MAHF, miners signal their support for the fork by including a special flag in the blocks they mine. Once a certain threshold of miners has signaled their support, the new rules are enforced, and the network splits into two separate blockchains. +- Flag Day Activation: In a Flag Day Activation, the new rules are activated on a predetermined date, regardless of whether a certain threshold of support is reached. + +Each activation mechanism has its advantages and disadvantages, and the choice of mechanism can impact the success of the fork. + diff --git a/src/blockchain-101/what-is-a-hacker.md b/src/blockchain-101/what-is-a-hacker.md new file mode 100644 index 0000000..30c8ff2 --- /dev/null +++ b/src/blockchain-101/what-is-a-hacker.md @@ -0,0 +1,16 @@ +# What is a hacker? + + +## What is a white hat hacker? + +A white hat hacker is a computer security expert who uses their skills to identify and fix security vulnerabilities and weaknesses in computer systems, networks, and applications. White hat hackers work to improve security and protect against cyber threats, often by working with organizations to test and improve their security measures. Unlike black hat hackers who use their skills for malicious purposes, white hat hackers are ethical and follow a code of conduct to ensure they operate within legal and ethical boundaries. Some white hat hackers may work as independent consultants, while others may be employed by companies to help protect their networks and systems from cyber attacks. + + +## What is a black hat hacker? + +A black hat hacker is a person who uses their computer skills to gain unauthorized access to computer systems and networks for malicious purposes, such as stealing data, disrupting systems, or causing harm to individuals or organizations. Black hat hackers often operate with the intent to commit cyber crimes, including identity theft, fraud, and extortion. They may use a variety of techniques and tools to exploit vulnerabilities in computer systems and networks, and they may work alone or as part of a criminal organization. Unlike ethical hackers (white hat hackers), black hat hackers are motivated by personal gain or malicious intent and operate outside the bounds of the law and ethical standards. It is important to note that engaging in black hat hacking is illegal and can lead to serious consequences, including imprisonment and fines. + + +## what is a red team? + +A red team is a group of skilled security professionals who simulate attacks on computer systems, networks, and applications to identify vulnerabilities and weaknesses in the security infrastructure. The primary goal of a red team is to test the effectiveness of an organization's security measures by attempting to breach their defenses through a variety of methods. Red teams may use a variety of techniques to simulate real-world attacks, including social engineering, phishing, and vulnerability scanning. The results of their testing help organizations identify and address weaknesses in their security posture and improve their overall security defenses. In contrast to a blue team, which is responsible for defending against attacks, the red team's role is to identify vulnerabilities and provide recommendations for remediation. The use of red teams is becoming increasingly popular in industries such as finance, healthcare, and technology, as companies seek to improve their security posture and protect against cyber threats. diff --git a/src/blockchain-101/what-is-a-mainnet.md b/src/blockchain-101/what-is-a-mainnet.md new file mode 100644 index 0000000..5d99d97 --- /dev/null +++ b/src/blockchain-101/what-is-a-mainnet.md @@ -0,0 +1,14 @@ + + +## What is a mainnet? + +In the context of blockchain technology, a mainnet refers to the live or official version of a blockchain network where real transactions can take place. A mainnet is launched after the completion of development and testing on a testnet or a series of testnets. The mainnet is considered the "production" version of the blockchain network and is the one that users interact with to conduct transactions and participate in the network. + +Once a mainnet is launched, it becomes the permanent and immutable version of the blockchain network, which means that any transactions or changes made on the mainnet are permanent and cannot be altered or reversed. + + +## What is a testnet? + +A testnet is a testing network that allows developers to test new features and functionalities of a blockchain without risking any actual assets. Testnets are designed to mimic the main blockchain network, but with a few key differences. One of the most significant differences is that the testnet tokens used for testing have no actual value and are not traded on exchanges. + +Testnets can be public or private, and they typically use a different cryptocurrency or token than the mainnet. They are used to test the functionality and security of new blockchain protocols before they are deployed on the mainnet. By running tests and simulations on a testnet, developers can identify and fix bugs and vulnerabilities in the code without putting the mainnet or its users at risk. diff --git a/src/blockchain-101/what-is-a-protocol.md b/src/blockchain-101/what-is-a-protocol.md new file mode 100644 index 0000000..fa34d6e --- /dev/null +++ b/src/blockchain-101/what-is-a-protocol.md @@ -0,0 +1,64 @@ +# What is a protocol? + +In computing and networking, a protocol is a set of rules and procedures that dictate how data is transmitted and received between devices on a network. A protocol defines the format and sequence of messages exchanged between devices, as well as the actions that should be taken in response to those messages. + +Protocols are used in a variety of contexts, from the Internet Protocol (IP) that governs the transmission of data over the internet, to application-level protocols such as the Hypertext Transfer Protocol (HTTP) used for web browsing, or the Simple Mail Transfer Protocol (SMTP) used for email communication. + +Protocols are important because they enable different devices and systems to communicate with each other in a standardized and interoperable manner. By adhering to a common protocol, devices and systems can exchange data and information with each other seamlessly, without the need for specialized hardware or software. + +In the context of blockchain technology, protocols are used to govern the rules and procedures that dictate how the blockchain operates, including how new blocks are added to the chain, how transactions are validated and processed, and how consensus is achieved among network participants. Blockchain protocols, such as the Bitcoin protocol or the Ethereum protocol, are critical components of the blockchain ecosystem, as they ensure the security, reliability, and interoperability of the network. + + +## What is a decentralized identity protocol? + +A decentralized identity protocol is a set of rules and procedures that govern how identity data is stored, managed, and verified on a decentralized network, such as a blockchain. Decentralized identity protocols are designed to provide a secure, reliable, and interoperable way for individuals to manage their digital identities, without the need for a central authority or intermediary. + +Decentralized identity protocols typically involve the use of decentralized identifiers (DIDs) and verifiable credentials, which are stored on the blockchain and can be accessed and verified by network participants. DIDs are unique identifiers that are assigned to individuals or entities, and are used to reference their identity data on the blockchain. Verifiable credentials are digital documents that contain identity information, such as a driver's license or a passport, and are cryptographically signed and verified by the issuer. + +Decentralized identity protocols can offer several benefits over traditional identity systems, such as increased privacy, security, and user control. By using a decentralized network, individuals can retain control over their identity data, and choose which entities can access and use that data. Decentralized identity protocols can also reduce the risk of identity theft and fraud, as all identity transactions are recorded on the blockchain and can be publicly audited. + +There are several decentralized identity protocols currently being developed, including the Decentralized Identity Foundation (DIF) and the World Wide Web Consortium (W3C) Verifiable Credentials standard. These protocols are designed to enable greater interoperability between different identity systems, and to promote the adoption of decentralized identity technologies in various industries and applications. + + +## What is a decentralized social network protocol? + +A decentralized social network protocol is a set of rules and procedures that govern how social network data is stored, managed, and shared on a decentralized network, such as a blockchain. Decentralized social network protocols are designed to provide a secure, private, and censorship-resistant alternative to centralized social media platforms. + +Decentralized social network protocols typically involve the use of peer-to-peer networks, where users can directly communicate and share data with each other, without the need for intermediaries or centralized servers. These protocols often use encryption and other privacy-enhancing technologies to ensure that user data remains secure and confidential. + +One of the key features of decentralized social network protocols is that they are censorship-resistant, meaning that content cannot be easily removed or deleted by a central authority or platform. This can be particularly important for users who want to share content that is sensitive, controversial, or unpopular. + +There are several decentralized social network protocols currently in development, such as the ActivityPub protocol, which is used by platforms like Mastodon and PeerTube, and the Secure Scuttlebutt protocol, which is used by platforms like Patchwork and Manyverse. These protocols are designed to enable greater user control over social media data, and to provide a more open and decentralized alternative to centralized social media platforms. + + +## What is a decentralized exchange protocol? + +A decentralized exchange protocol is a set of rules and procedures that govern how trades are executed on a decentralized exchange (DEX) on a blockchain. Decentralized exchange protocols are designed to enable peer-to-peer trading of cryptocurrencies and other digital assets, without the need for intermediaries or centralized platforms. + +Decentralized exchange protocols typically involve the use of smart contracts, which are self-executing contracts with the terms of the agreement between buyers and sellers directly written into code. These smart contracts enable trades to be executed automatically on the blockchain, without the need for a central authority or intermediary to facilitate the trade. + +One of the key benefits of decentralized exchange protocols is that they provide a high degree of security and transparency. Since trades are executed on the blockchain, all transaction data is publicly visible and cannot be easily altered or manipulated. This can help to prevent fraud and ensure that trades are executed fairly and transparently. + +There are several decentralized exchange protocols currently in use, such as the 0x protocol, which is used by several DEX platforms, including Radar Relay and DDEX. These protocols are designed to enable greater interoperability between different DEX platforms, and to provide a more open and decentralized alternative to centralized cryptocurrency exchanges. + + +## What is a decentralized file storage protocol? + +A decentralized file storage protocol is a set of rules and procedures that govern how files are stored, managed, and retrieved on a decentralized network, such as a blockchain. Decentralized file storage protocols are designed to provide a secure, reliable, and censorship-resistant alternative to centralized file storage services, such as cloud storage providers. + +Decentralized file storage protocols typically involve the use of peer-to-peer networks, where files are stored and distributed across multiple nodes on the network. This distributed approach helps to ensure that files are available and accessible even if some nodes on the network go offline or are blocked. + +One of the key benefits of decentralized file storage protocols is that they provide a high degree of privacy and security. Since files are encrypted and stored across multiple nodes on the network, they are much more difficult to access or tamper with than files stored on centralized servers. Decentralized file storage protocols also provide a high degree of censorship resistance, as files cannot be easily removed or blocked by a central authority or platform. + +There are several decentralized file storage protocols currently in use, such as the InterPlanetary File System (IPFS) and the Filecoin protocol. These protocols are designed to enable greater user control over file data, and to provide a more open and decentralized alternative to centralized file storage services. + + +## What is a decentralized messaging protocol? + +A decentralized messaging protocol is a set of rules and procedures that govern how messages are transmitted, stored, and retrieved on a decentralized network, such as a blockchain. Decentralized messaging protocols are designed to provide a secure, private, and censorship-resistant alternative to centralized messaging services, such as instant messaging and email. + +Decentralized messaging protocols typically involve the use of peer-to-peer networks, where messages are transmitted directly between users, without the need for intermediaries or centralized servers. These protocols often use encryption and other privacy-enhancing technologies to ensure that message data remains secure and confidential. + +One of the key features of decentralized messaging protocols is that they are censorship-resistant, meaning that messages cannot be easily removed or deleted by a central authority or platform. This can be particularly important for users who want to communicate without fear of surveillance or censorship. + +There are several decentralized messaging protocols currently in development, such as the Matrix protocol and the Briar protocol. These protocols are designed to enable greater user control over messaging data, and to provide a more open and decentralized alternative to centralized messaging services. diff --git a/src/blockchain-101/what-is-a-sidechain.md b/src/blockchain-101/what-is-a-sidechain.md new file mode 100644 index 0000000..15e799f --- /dev/null +++ b/src/blockchain-101/what-is-a-sidechain.md @@ -0,0 +1,23 @@ +# What is a side chain? + +A sidechain is a separate blockchain that is connected to a main blockchain through a two-way peg. This two-way peg allows assets to be transferred from the main blockchain to the sidechain and back again, allowing for increased flexibility and interoperability between different blockchains. + +Sidechains are often used to address scalability and functionality limitations of main blockchains, as they can be designed to handle specific types of transactions or applications without requiring changes to the main blockchain itself. For example, a sidechain may be designed to handle microtransactions or privacy-focused transactions, while the main blockchain remains optimized for security and decentralization. + +Sidechains can also be used to enable the creation of new assets or tokens that can be traded independently of the main blockchain, providing greater flexibility for developers and users. Some popular sidechain projects include Liquid, RSK, and Plasma. + + +## drivechain + +[drivechain.info](https://www.drivechain.info/) + +The Drivechain project is a proposed sidechain solution for Bitcoin. The Drivechain project aims to enable the creation of custom sidechains that are interoperable with the Bitcoin blockchain, allowing for increased scalability, privacy, and functionality. It is designed to allow users to move their Bitcoin funds to the sidechain and back again, without the need for trusted third parties or custodians. + +The project was initially proposed by Bitcoin developer Paul Sztorc in 2015 and has since seen contributions from several other developers. The idea is to allow Bitcoin users to utilize new features or experimental technologies that might not be available on the main Bitcoin blockchain. + +The project proposes to create a "drivechain" as a sidechain, which can operate independently while still being anchored to the Bitcoin blockchain. Drivechain transactions would be secured by the same mining power as Bitcoin and would enable Bitcoin users to transfer their Bitcoins to the sidechain, where they could be used to perform various activities, such as smart contracts or other decentralized applications. + +One of the main advantages of Drivechain is that it allows for experimentation and innovation without the need for a hard fork, which can be a slow and contentious process. With Drivechain, the sidechain can operate as an opt-in feature for Bitcoin users, providing a seamless and user-friendly experience. + +The Drivechain project is still in development and is being actively worked on by a community of developers. The project aims to provide a practical solution for scaling and innovation on the Bitcoin blockchain, while still maintaining the security and stability of the Bitcoin network. + diff --git a/src/blockchain-101/what-is-a-wallet.md b/src/blockchain-101/what-is-a-wallet.md new file mode 100644 index 0000000..2b75127 --- /dev/null +++ b/src/blockchain-101/what-is-a-wallet.md @@ -0,0 +1,175 @@ +# Wallets + +## What is a cryptocurrency wallet? + +A cryptocurrency wallet is a software program or hardware device that allows you to store, manage, and transfer your digital assets, such as Bitcoin, Ethereum, or any other cryptocurrency. + +A cryptocurrency wallet is not a physical wallet, and it doesn't store your coins or tokens. Instead, it stores your private keys, which are used to sign and verify transactions on the blockchain network. + +There are different types of cryptocurrency wallets, such as desktop wallets, mobile wallets, hardware wallets, and paper wallets. Each type has its own advantages and disadvantages, and the choice of wallet depends on your specific needs and preferences. + +It's important to keep your private keys safe, as anyone who has access to your private keys can control your digital assets. Therefore, it's recommended to use a reliable and secure cryptocurrency wallet and to follow best practices for security, such as enabling two-factor authentication and keeping your recovery seed phrase in a safe place. + + +## What is a multi-signature or multi-sig wallet? + +A multi-signature or multi-sig wallet is a type of cryptocurrency wallet that requires multiple signatures or approvals before a transaction can be authorized and completed. + +In a multi-sig wallet, a user can create a transaction, but it cannot be executed until a certain number of predefined users (or signers) approve and sign the transaction. The number of required signatures can be customized based on the user's preferences and needs. + +For example, if a multi-sig wallet requires three signatures to authorize a transaction, the transaction cannot be executed unless three authorized signers approve and sign the transaction. This helps to increase the security and prevent unauthorized transactions, as it requires multiple parties to sign off on a transaction before it is executed. + +Multi-sig wallets are commonly used by businesses, organizations, and individuals who manage large amounts of cryptocurrency and want to ensure greater security and control over their funds. They can also be used to share control and access to cryptocurrency funds among multiple individuals or parties, such as in the case of joint accounts or partnerships. + + + +## What is a hardware wallet? + +A hardware wallet is a type of cryptocurrency wallet that stores a user's private keys in a secure hardware device. It is considered one of the most secure ways to store digital assets. + +Hardware wallets are designed to be "cold storage" solutions, which means they are disconnected from the internet and provide an additional layer of security against hacking and online attacks. + +When using a hardware wallet, a user typically connects the device to their computer or mobile device and enters a PIN code or other authentication mechanism to access their funds. The private keys are stored securely on the hardware device, and transactions are signed and verified on the device itself. + +One of the main advantages of a hardware wallet is that it provides complete control over the private keys, which means the user is the only one who can access their funds. This helps to prevent theft, fraud, and other security issues that can arise with other types of wallets. + +Hardware wallets are available from a variety of manufacturers, and they come in different shapes, sizes, and designs. Some of the most popular hardware wallets on the market today include Ledger, Trezor, and KeepKey. + + + + +## What is a paper wallet? + + +A paper wallet is a type of cryptocurrency wallet that involves printing out a physical copy of the user's private keys and public address on a piece of paper. + +To create a paper wallet, a user generates a new wallet address and private key using a software application or website. They then print out the private key and public address on a piece of paper, which can be stored in a secure location, such as a safe or vault. + +One of the main advantages of a paper wallet is that it provides an additional layer of security against hacking and online attacks, as the private keys are not stored online or on a computer. However, it's important to keep the paper wallet in a secure location and protect it from theft or damage. + +Paper wallets are considered a "cold storage" solution, as they are offline and do not require an internet connection to access. This makes them ideal for long-term storage of cryptocurrencies that are not frequently used for transactions. + +However, paper wallets can also be cumbersome to use, as they require manually entering the private key to access the funds, which can be time-consuming and error-prone. In addition, paper can be damaged or lost over time, which can result in a loss of funds if the private key is no longer accessible. + +It's important to note that both hardware wallets and paper wallets have their own unique advantages and disadvantages, and the choice ultimately depends on the user's specific needs and preferences. For example, a paper wallet may be more suitable for long-term storage of large amounts of cryptocurrency that are not frequently accessed, while a hardware wallet may be more convenient for users who need to make regular transactions. + + + +## What is a software wallet? + + +A software wallet is a type of cryptocurrency wallet that is installed as a software application on a user's computer or mobile device. + +Unlike hardware wallets, software wallets are connected to the internet and therefore carry a greater risk of hacking and online attacks. However, they are generally more convenient to use and offer greater flexibility in terms of accessibility and compatibility. + +There are different types of software wallets, including desktop wallets, mobile wallets, and web wallets. Desktop wallets are installed on a user's computer and can be used to store and manage cryptocurrencies. Mobile wallets are similar, but they are designed for use on a smartphone or tablet. Web wallets are hosted on a website and can be accessed from any device with an internet connection. + +Software wallets can also be further categorized as either hot wallets or cold wallets. Hot wallets are connected to the internet and allow for easy access to digital assets, but they are less secure than cold wallets. Cold wallets, on the other hand, are offline and provide greater security, but they are less convenient to use. + +It's important to choose a reputable and secure software wallet, as the security of your digital assets depends on the quality of the wallet you choose. It's also recommended to follow best practices for security, such as using two-factor authentication, keeping your private keys safe, and avoiding public Wi-Fi networks when accessing your wallet. + + + + +## What is a multi-chain wallet? + + +A multi-chain wallet is a type of cryptocurrency wallet that allows users to store, manage, and transact with multiple types of cryptocurrencies across different blockchain networks. + +Most cryptocurrency wallets are designed to support a single type of cryptocurrency or blockchain network, such as Bitcoin or Ethereum. However, with the increasing popularity of cryptocurrencies, many users hold and trade multiple types of digital assets across different blockchain networks, which can be challenging to manage with multiple wallets. + +A multi-chain wallet provides a solution to this problem by allowing users to manage multiple cryptocurrencies and blockchain networks in a single application. This means that users can store and manage their Bitcoin, Ethereum, and other cryptocurrencies in a single wallet, without needing to switch between multiple wallets or applications. + +Multi-chain wallets typically provide a range of features and functionalities, such as support for different cryptocurrencies, integration with decentralized exchanges, and easy-to-use interfaces for managing multiple assets. Some multi-chain wallets also offer advanced security features, such as multi-signature support and hardware wallet integration, to ensure the safe storage and management of users' digital assets. + + + +## What is a multi-currency wallet? + + +a multi-chain wallet is the same as a multi-currency wallet. Both terms refer to a cryptocurrency wallet that supports multiple types of digital assets or cryptocurrencies. The term "multi-chain wallet" specifically refers to a wallet that can manage multiple cryptocurrencies across different blockchain networks, while "multi-currency wallet" is a more general term that encompasses wallets that support multiple types of digital assets, regardless of the blockchain network they are built on. + +## What is a non-custodial wallet? + +A non-custodial wallet, also known as a self-custody wallet, is a type of cryptocurrency wallet that allows users to have complete control over their private keys and digital assets. In other words, the user is the only one who has access to their cryptocurrency holdings and is solely responsible for managing them. + +Unlike custodial wallets, which are managed by third-party service providers who hold the user's private keys on their behalf, non-custodial wallets do not rely on any intermediaries or third-party services to manage the user's digital assets. Instead, the user's private keys are stored locally on their device, typically in the form of a seed phrase or private key file, and the user is responsible for safeguarding and securing their private keys. + +Non-custodial wallets are generally considered to be more secure and trustworthy than custodial wallets, as the user is in full control of their digital assets and is not reliant on any third-party service provider to manage or protect their assets. However, non-custodial wallets also require the user to take on greater responsibility for the security and management of their digital assets, which can be challenging for novice users or those with limited technical knowledge. + + + +## What is a custodial wallet? + +A custodial wallet is a type of cryptocurrency wallet that is managed by a third-party service provider or custodian. In a custodial wallet, the service provider holds the user's private keys on their behalf, and the user is not in direct control of their digital assets. + +Custodial wallets are often used by beginner cryptocurrency users or those who do not want to take on the responsibility of managing their own private keys. They may also be used by institutional investors who need to store large amounts of digital assets and prefer to rely on a trusted third-party service provider to manage their holdings. + +However, custodial wallets are generally considered to be less secure than non-custodial wallets, as the user is not in control of their private keys and is reliant on the service provider to protect their assets. There have been cases of custodial wallets being hacked or compromised, resulting in the loss of users' digital assets. + +It's important to note that not all custodial wallets are created equal, and some may offer higher levels of security and protection than others. When choosing a custodial wallet, it's important to do your research and choose a reputable service provider with a strong track record of security and reliability. + + + +## What is a cold storage wallet? + +A cold storage wallet is a type of cryptocurrency wallet that stores the user's private keys offline, typically on a hardware device or a paper wallet. Because the private keys are not connected to the internet, cold storage wallets are considered to be one of the most secure ways to store digital assets. + +Cold storage wallets are often used by long-term investors or hodlers who do not need to access their digital assets frequently and are willing to sacrifice convenience for greater security. By storing their private keys offline, users can protect their digital assets from online threats such as hacking or phishing attacks, which are common in the cryptocurrency space. + +There are several types of cold storage wallets, including hardware wallets and paper wallets. Hardware wallets are physical devices that store the user's private keys and can be connected to a computer or mobile device to initiate transactions. Paper wallets, on the other hand, involve printing out the user's private keys on a piece of paper and storing it in a safe place. + +While cold storage wallets are generally considered to be more secure than hot wallets, which are connected to the internet, they also require the user to take greater responsibility for the security and management of their private keys. If the user loses or damages their hardware device or paper wallet, they may lose access to their digital assets permanently. + +## What is a hot storage wallet? + +A hot storage wallet is a type of cryptocurrency wallet that is connected to the internet and accessible via a web browser, mobile app, or desktop application. Unlike cold storage wallets, which store the user's private keys offline, hot wallets are designed for frequent use and convenience. + +Hot wallets are often used for day-to-day transactions and are popular among traders and individuals who need to access their digital assets quickly and easily. However, because they are connected to the internet, hot wallets are considered to be less secure than cold storage wallets and are more vulnerable to hacking, phishing, and other cyber threats. + +There are several types of hot storage wallets, including software wallets and online wallets. Software wallets are installed on a computer or mobile device and are accessed via a local application. Online wallets, on the other hand, are hosted on a web server and accessed via a web browser. + +While hot storage wallets may be more convenient than cold storage wallets, they are generally not recommended for long-term storage of large amounts of digital assets. Users should take extra precautions to protect their private keys and use strong passwords and two-factor authentication to minimize the risk of theft or loss. + + + +## What is a Simple Payment Verification (SPV) wallet? + + +A Simple Payment Verification (SPV) wallet is a type of cryptocurrency wallet that enables users to quickly and easily verify transactions on a blockchain network without downloading the entire blockchain. + +SPV wallets are designed for mobile devices and are ideal for users who want to make quick transactions on the go. These wallets work by connecting to a full node on the blockchain network and requesting only the necessary information to verify a particular transaction. This allows SPV wallets to operate with minimal data usage and without having to download the entire blockchain. + +SPV wallets are popular among users who want to maintain control over their private keys and avoid relying on third-party services to process their transactions. They are particularly useful for Bitcoin and other cryptocurrencies with large blockchains that can take up significant amounts of storage space on a mobile device. + +However, because SPV wallets rely on a full node to verify transactions, they may not be as secure as full node wallets, which store the entire blockchain and can independently validate transactions without relying on a third party. As with any type of cryptocurrency wallet, users should take steps to protect their private keys and use strong passwords and two-factor authentication to minimize the risk of theft or loss. + +## What is a mnemonic phrase? + +A mnemonic phrase, also known as a seed phrase or recovery phrase, is a sequence of words that are used to back up and recover a cryptocurrency wallet. It typically consists of 12 or 24 words that are generated randomly by a cryptocurrency wallet software, and it serves as a backup of the private keys associated with a user's cryptocurrency funds. + +In the event that a user loses their private keys or their device, the mnemonic phrase can be used to recover access to the cryptocurrency funds. The mnemonic phrase is designed to be easy for humans to remember, but difficult for computers to guess or brute force. Therefore, it is important to keep the phrase private and secure, and to only share it with authorized individuals in case of emergency. + +The length of a seed phrase is directly related to its entropy or randomness, which is a measure of how difficult it is to guess or crack the phrase. In general, the longer the seed phrase, the more difficult it is to hack. + +A 12-word seed phrase provides approximately 128 bits of entropy, which is considered to be sufficiently secure against brute-force attacks. However, a 24-word seed phrase provides approximately 256 bits of entropy, which is exponentially more secure than a 12-word seed phrase. + +To put this in perspective, the number of possible combinations for a 12-word seed phrase is roughly 2^128, which is an astronomically large number (approximately 3.4 x 10^38). However, a 24-word seed phrase provides twice the number of possible combinations, which is 2^256, an even more enormous number (approximately 1.16 x 10^77). + +Therefore, while a 12-word seed phrase is considered to be secure, a 24-word seed phrase is significantly more secure, and it would be much more challenging to hack. + + +## What are the implications of a disagreement in a cryptocurrency community? + +A disagreement in a cryptocurrency community can have several implications, depending on the nature and severity of the disagreement. Here are a few examples: + +Forking: In some cases, a disagreement can lead to a "hard fork" in the cryptocurrency, where the community splits into two groups with different visions for the future of the project. Each group then creates their own separate cryptocurrency with its own blockchain, network, and potentially different rules or features. This can cause confusion for users and investors, as they need to decide which version of the cryptocurrency to support. + +Loss of trust: Disagreements can cause a loss of trust among community members and investors, as they may feel that the project's leadership is divided or ineffective. This can lead to a decline in the cryptocurrency's value and adoption. + +Delays and setbacks: If a disagreement causes a delay in decision-making or progress on the project, this can lead to setbacks in development, marketing, or adoption. This can also cause frustration among community members who may feel that the project is not moving forward quickly enough. + +Security risks: If a disagreement causes a split in the community or a loss of trust among developers or other key players, this can increase the risk of security vulnerabilities or attacks on the cryptocurrency's network. This is especially true if the disagreement leads to a loss of confidence in the project's security protocols or development practices. + +Overall, a disagreement in a cryptocurrency community can have serious implications for the project's future, including its value, adoption, and security. It is important for community members and leaders to work together to find solutions and maintain a cohesive vision for the project. + diff --git a/src/blockchain-101/what-is-a-whitepaper.md b/src/blockchain-101/what-is-a-whitepaper.md new file mode 100644 index 0000000..424587b --- /dev/null +++ b/src/blockchain-101/what-is-a-whitepaper.md @@ -0,0 +1,15 @@ + +## What is a whitepaper? + +In the context of cryptocurrency and blockchain technology, a whitepaper is a document that outlines the concept, design, and technical details of a specific project. It serves as a blueprint for the project and is usually published by the team or individuals behind the project to provide transparency and credibility to potential investors and users. + +A whitepaper typically includes information about the problem the project aims to solve, the proposed solution, the technology that will be used, the team behind the project, the roadmap and timeline, the token economics, and other relevant information. Whitepapers are often used as a tool to attract funding for the project through initial coin offerings (ICOs) or other crowdfunding mechanisms. + +The term "whitepaper" has its origins in traditional business and government circles, where it refers to a document that lays out a particular issue, policy, or proposal in a clear and concise manner, often in the form of a report or analysis. In the cryptocurrency and blockchain space, the term has come to refer specifically to a document that describes a new project or technology in detail. + +## What is a roadmap? + +A roadmap is a document that outlines the high-level goals, plans, and milestones for a project or organization. It provides a visual representation of how the project or organization plans to achieve its objectives over a certain period of time, often spanning months or years. + +In the context of cryptocurrency and blockchain projects, a roadmap may include items such as the development of new features, integration with other systems or networks, community outreach, partnerships, and other initiatives. It can be a helpful tool for stakeholders, investors, and users to understand the trajectory of a project and assess its potential for success. + diff --git a/src/blockchain-101/what-is-atomic.md b/src/blockchain-101/what-is-atomic.md new file mode 100644 index 0000000..4e9878c --- /dev/null +++ b/src/blockchain-101/what-is-atomic.md @@ -0,0 +1,12 @@ +# What is Atomic? + +"Atomic" have different meanings depending on the context, but in the context of blockchain and cryptocurrencies, it generally refers to an operation or transaction that is indivisible or all-or-nothing. + +## What is an atomic swap? + +An atomic swap is a decentralized peer-to-peer exchange of cryptocurrencies or digital assets between two parties, where each party transfers their assets directly to the other party without the need for a centralized exchange. Atomic swaps use smart contracts to execute the exchange and ensure that both parties fulfill their part of the deal simultaneously, ensuring that neither party is cheated. The swap is called atomic because it either succeeds in its entirety or fails completely, without any partial executions or rollbacks. Atomic swaps offer a high level of security and privacy, and they eliminate the need for intermediaries and their associated fees. + + +## What is an atomic transactions? + +In the context of blockchain, an atomic transaction is a transaction that involves multiple assets or tokens and is executed atomically, meaning that either all of the transactions are executed or none of them are executed. This is achieved through the use of smart contracts that hold the assets until all the conditions of the transaction are met, and then execute the transaction atomically. This is commonly used in the context of atomic swaps, where two parties exchange different cryptocurrencies without the need for an intermediary. diff --git a/src/blockchain-101/what-is-consensus.md b/src/blockchain-101/what-is-consensus.md new file mode 100644 index 0000000..89ccb00 --- /dev/null +++ b/src/blockchain-101/what-is-consensus.md @@ -0,0 +1,48 @@ +# What is consensus? + +In the context of blockchain technology, consensus refers to the process of achieving agreement among nodes in a decentralized network on the state of the network, including transactions, account balances, and other data. This agreement is necessary to ensure the integrity and security of the network, prevent double-spending and other fraudulent activities, and ensure that all participants have a consistent view of the network's state. + +## What is a consensus algorithm? + +A consensus algorithm is a mechanism that enables nodes in a decentralized network to agree on a single version of the truth or a single state of the network. It ensures that all nodes in the network reach a consensus or agreement on the validity of transactions, blocks, or other data that is being added to the network. Consensus algorithms are critical in the operation of blockchain networks and other decentralized systems, as they enable these networks to operate in a trustless and decentralized manner, without the need for a centralized authority or intermediary to manage and validate transactions. There are several types of consensus algorithms used in blockchain networks, including Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS), among others. + + +## What is a hybrid consensus algorithm? + +A hybrid consensus algorithm is a combination of two or more consensus algorithms that work together to achieve consensus in a blockchain network. Hybrid consensus algorithms aim to leverage the strengths of each consensus algorithm while minimizing their weaknesses. + +For example, a blockchain network can use a combination of Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus algorithms. PoW can be used to secure the network in the early stages and distribute the initial coins, while PoS can be used for block validation and to prevent centralization over time. + +Another example is a combination of a BFT consensus algorithm and a PoW consensus algorithm. The BFT consensus algorithm can provide fast and final confirmation of transactions, while the PoW consensus algorithm can provide security against double-spending attacks. + +Hybrid consensus algorithms are still a relatively new area of research, and their effectiveness and security are still being evaluated. + + +## What is a federated consensus mechanism? + +A federated consensus mechanism is a type of consensus algorithm that is used in a federated blockchain network. In a federated blockchain network, there are multiple independent entities or organizations, known as nodes or members, that participate in maintaining and validating the network. Each member has its own set of rules and protocols that govern its behavior within the network. + +In a federated consensus mechanism, the validation of transactions and the creation of new blocks are controlled by a subset of the nodes, called the federation. The federation is usually made up of a smaller group of nodes that have been pre-selected by the network participants, based on specific criteria, such as reputation or stake. The federation nodes are responsible for reaching consensus on the state of the network and verifying transactions. + +Federated consensus mechanisms offer several advantages over other consensus mechanisms, such as faster transaction processing times and greater scalability. However, they are also more centralized than other consensus mechanisms, as control over the validation process is limited to a smaller group of nodes. + + +## What is a Byzantine fault tolerance (BFT) consensus algorithm? + +Byzantine fault tolerance (BFT) is a type of consensus algorithm used in distributed systems to ensure that nodes in a network can reach agreement even in the presence of malicious or faulty nodes. The name "Byzantine" comes from the "Byzantine Generals' Problem," which is a classic problem in computer science that deals with coordinating actions between multiple nodes in a distributed system that may be unreliable or malicious. + +BFT consensus algorithms are designed to be resilient against attacks by a certain number of malicious or faulty nodes, often referred to as the "Byzantine fault tolerance threshold." The threshold is determined by the number of nodes in the network, and the algorithm is designed to work even if up to a certain percentage of nodes are compromised. + +There are several different types of BFT consensus algorithms, including Practical Byzantine Fault Tolerance (PBFT), Federated Byzantine Agreement (FBA), and Tendermint. These algorithms typically use a process called "voting" to reach consensus, where nodes in the network communicate with each other to agree on the state of the system. + +BFT consensus algorithms are commonly used in blockchain networks to ensure that transactions are verified and added to the blockchain in a secure and reliable way. + + +## What is a directed acyclic graph (DAG) consensus mechanism? + +A directed acyclic graph (DAG) consensus mechanism is an alternative to the traditional blockchain consensus mechanisms like proof of work (PoW) or proof of stake (PoS). In a DAG, transactions are represented as vertices in a directed graph, and they are linked to each other through directed edges. Unlike blockchains, which store transactions in blocks that are added to a linear chain, DAGs store transactions in a graph structure that allows for more parallelism and scalability. + +In a DAG consensus mechanism, nodes validate transactions by verifying their parents in the graph. When a node validates a transaction, it adds it to the graph as a new vertex, and creates new edges to link it to its parent transactions. This allows for a more efficient validation process, as nodes only need to validate a subset of the transactions in the network rather than the entire blockchain. + +One example of a DAG consensus mechanism is the IOTA Tangle, which uses a data structure called a Directed Acyclic Graph (DAG) to store transactions. In the IOTA Tangle, each new transaction confirms two previous transactions, and this confirmation process forms a web-like structure that grows and expands over time. Since transactions are validated by their predecessors, rather than through computational work or staking, IOTA claims that the Tangle is more energy-efficient than blockchain-based consensus mechanisms. + diff --git a/src/blockchain-101/what-is-decentralized.md b/src/blockchain-101/what-is-decentralized.md new file mode 100644 index 0000000..5a1d4b5 --- /dev/null +++ b/src/blockchain-101/what-is-decentralized.md @@ -0,0 +1,156 @@ +# What is decentralized? + +## What does decentralized mean? + +Decentralized refers to a system or network that operates without a central authority or control. In a decentralized system, decision-making and power are distributed among a network of participants, rather than being controlled by a single entity. + +Decentralization is often associated with blockchain technology, where a decentralized network of nodes collaboratively maintain and verify the integrity of the blockchain. In this case, no single entity or organization has control over the network, and any changes or updates must be agreed upon by the network as a whole. + +Decentralization can provide several benefits, such as increased transparency, security, and resilience, as there is no single point of failure or attack. It can also promote innovation and participation, as anyone can participate in the network and contribute to its growth and development. + +Overall, decentralization represents a shift away from traditional hierarchical structures and centralized control, towards a more democratic and collaborative approach to decision-making and power distribution. + + + +## What is a decentralized exchange (DEX)? + +A decentralized exchange (DEX) is a type of cryptocurrency exchange that operates on a decentralized network of nodes, rather than being controlled by a centralized entity. In a DEX, users can trade cryptocurrencies directly with each other, without the need for a central intermediary to facilitate the trade. + +DEXs operate on a peer-to-peer (P2P) network, where trades are executed using smart contracts that are stored on the blockchain. These smart contracts ensure that the terms of the trade are automatically enforced, and that the assets being traded are transferred directly between the buyers and sellers. + +One of the key advantages of DEXs is that they are often more secure and transparent than centralized exchanges, as there is no single point of failure or control. DEXs also typically have lower fees than centralized exchanges, as there is no need for intermediaries to facilitate the trades. + +However, DEXs can also have some disadvantages, such as lower liquidity, fewer trading pairs, and potentially slower transaction speeds. Additionally, some DEXs may require users to have a certain level of technical knowledge in order to use the platform effectively. + +Overall, DEXs represent an alternative approach to cryptocurrency trading, with a focus on decentralization and peer-to-peer transactions. + + + +## What is a decentralized identity (DID)? + +A decentralized identity (DID) is a digital identity management system that operates on a decentralized network, such as a blockchain. Unlike traditional identity management systems, which are often centralized and controlled by a single authority, DIDs are designed to be self-owned and controlled by the individual user. + +A DID typically consists of a unique identifier, such as a public key, that is associated with a set of verifiable credentials or attributes, such as name, age, or address. These credentials are stored and managed by the user, and can be selectively shared with others as needed, without the need for a central intermediary to manage the identity. + +One of the key benefits of DIDs is increased privacy and security, as users have greater control over their personal data and who has access to it. DIDs can also be used to facilitate secure and trusted transactions between parties, as the identity of each party can be verified and authenticated using the decentralized network. + +DIDs have potential applications in a variety of industries, such as finance, healthcare, and government, where secure and trusted identity management is critical. They represent a shift away from traditional centralized identity management systems, towards a more decentralized and user-centric approach to identity. + + +## What is a decentralized autonomous organization (DAO)? + +A decentralized autonomous organization (DAO) is a type of organization that operates on a decentralized network, such as a blockchain, and is managed through a set of rules encoded in smart contracts. Unlike traditional organizations, which are often controlled by a central authority, DAOs are designed to be self-governing and transparent, with decision-making and control distributed among its members. + +A DAO typically has a set of rules or protocols that govern its operations, including how decisions are made, how funds are managed, and how members are added or removed from the organization. These rules are encoded in smart contracts on the blockchain, and are executed automatically based on pre-determined conditions. + +One of the key benefits of DAOs is their ability to operate in a trustless and decentralized manner, without the need for a central intermediary or authority. This can increase transparency and reduce the risk of fraud or corruption, as all transactions and decisions are recorded on the blockchain and can be publicly audited. + +DAOs have potential applications in a variety of industries, such as finance, governance, and social impact, where collective decision-making and transparency are important. They represent a new and innovative approach to organizational management, with the potential to increase participation, reduce costs, and promote collaboration among its members. + + +## What is a decentralized oracle? + +A decentralized oracle is a software program or network that connects a decentralized blockchain to external data sources or systems. Oracles act as a bridge between the blockchain and the real world, allowing smart contracts and other decentralized applications (dApps) to access and use off-chain data. + +Decentralized oracles are designed to operate on a decentralized network, such as a blockchain, and are often managed by a network of nodes that work together to collect, verify, and deliver data to the blockchain. This ensures that the data provided by the oracle is accurate, trustworthy, and tamper-proof. + +Decentralized oracles have a wide range of applications, such as providing price feeds for financial applications, weather data for insurance contracts, and supply chain information for logistics applications. By enabling dApps to access off-chain data, decentralized oracles can increase the functionality and flexibility of decentralized systems, allowing them to interact with the real world in a seamless and secure manner. + +Overall, decentralized oracles represent an important component of the blockchain ecosystem, enabling greater interoperability between decentralized systems and the real world. + + + +## What is a decentralized storage network? + +A decentralized storage network is a network of computers that collectively store and distribute data in a decentralized, peer-to-peer (P2P) fashion, without relying on a centralized server or storage provider. In a decentralized storage network, data is broken up into small pieces and distributed across multiple nodes on the network. These nodes can be owned and operated by a variety of individuals and organizations, creating a more resilient and fault-tolerant system. + +Decentralized storage networks are designed to provide a more secure, private, and reliable alternative to traditional centralized storage solutions. Since data is distributed across multiple nodes on the network, it is less vulnerable to attacks or failures at any one location. Additionally, decentralization can help to prevent censorship or data loss by ensuring that files remain accessible even if certain nodes or network participants are blocked or removed. + +Decentralized storage networks are increasingly being used as a tool for building decentralized applications (dApps) and platforms that require secure and reliable storage solutions. They are often used in conjunction with other decentralized technologies, such as blockchain networks and peer-to-peer (P2P) protocols like IPFS, to create more resilient and decentralized systems for storing and accessing digital data. Examples of decentralized storage networks include Filecoin, Swarm, and Storj. + + +## What is a decentralized naming system? + +A decentralized naming system (DNS) is a system for associating human-readable domain names with IP addresses or other network resources in a decentralized, peer-to-peer (P2P) manner. Traditional DNS systems rely on a centralized authority to manage and resolve domain names to IP addresses, which can make them vulnerable to censorship, surveillance, and other forms of centralized control. + +Decentralized naming systems use blockchain technology and other decentralized protocols to create a more secure and decentralized alternative to traditional DNS systems. They enable users to register domain names on a decentralized network and associate them with IP addresses or other network resources. These domain names can be resolved and accessed by any user on the network without relying on a centralized authority. + +Decentralized naming systems can provide a range of benefits, including greater security, privacy, and censorship resistance. They are increasingly being used as a tool for building decentralized applications (dApps) and platforms that require secure and reliable naming systems. Examples of decentralized naming systems include Namecoin, Handshake, and Unstoppable Domains. + + +## Storage + +Decentralized file storage is a system of storing digital files across a distributed network of computers, rather than relying on centralized servers or cloud storage services. In a decentralized file storage system, files are broken up into smaller pieces and distributed across multiple nodes on the network, which can be owned and operated by a variety of individuals and organizations. + +Decentralized file storage systems are designed to be more secure, private, and resilient than traditional centralized storage systems. Since files are distributed across multiple nodes on the network, they are less vulnerable to attacks or failures at any one location. Additionally, decentralization can help to prevent censorship or data loss by ensuring that files remain accessible even if certain nodes or network participants are blocked or removed. + +Decentralized file storage is increasingly being used as a tool for building decentralized applications (dApps) and platforms that require secure and reliable storage solutions. It is often used in conjunction with other decentralized technologies, such as blockchain networks and peer-to-peer (P2P) protocols like IPFS, to create more resilient and decentralized systems for storing and accessing digital files. + + +### InterPlanetary File System (IPFS)? + +The InterPlanetary File System (IPFS) is a decentralized, peer-to-peer file storage and distribution protocol designed to create a more permanent and decentralized web. IPFS enables users to store and access files across a distributed network of computers, rather than relying on centralized servers and cloud storage services. + +IPFS uses a unique content-addressed system that identifies files based on their content, rather than their location on the network. This means that files can be accessed and distributed more efficiently, as copies of the same file can be shared across multiple nodes on the network. + +IPFS also supports versioning, enabling users to access previous versions of files, and allows for easy integration with other decentralized technologies, such as blockchain networks. + +One of the key benefits of IPFS is that it provides a more decentralized and resilient alternative to traditional web hosting and cloud storage services. Since files are distributed across multiple nodes on the network, they are much more resistant to censorship, data loss, and other forms of interference. + +IPFS is an open-source project and has gained significant attention and adoption within the blockchain and decentralized technology communities. It is used by several decentralized applications (dApps) and is increasingly being used as a tool for building decentralized web applications. + + + +### Filecoin protocol + +The Filecoin protocol is a decentralized storage network and cryptocurrency designed to create a more efficient and decentralized data storage system. The protocol enables users to rent out unused storage space on their computers to other users in exchange for Filecoin tokens (FIL), which can be used to pay for storage on the network or traded on cryptocurrency exchanges. + +The Filecoin protocol uses a combination of blockchain technology and cryptographic proofs to create a secure, decentralized, and efficient storage system. Files are encrypted and stored across a distributed network of nodes, with each node storing only a small portion of the total file data. This approach helps to ensure that files are available and accessible even if some nodes on the network go offline or are blocked. + +One of the key features of the Filecoin protocol is its incentive system, which encourages users to contribute storage space to the network and to ensure that stored files remain accessible and secure. The protocol uses a complex system of economic incentives and penalties to encourage users to provide high-quality storage services and to discourage bad actors from disrupting the network. + +The Filecoin protocol is an open-source project and is increasingly being used as a tool for building decentralized applications (dApps) and platforms that require decentralized storage solutions. + + + +## What is a decentralized application (dApp)? + +A decentralized application (dApp) is a software application that runs on a distributed, decentralized network such as a blockchain. Unlike traditional centralized applications that are controlled by a single entity or organization, dApps are governed by the consensus of the network participants, with no single point of control. + +dApps typically use smart contracts, which are self-executing programs that run on the blockchain and are used to automate processes, enforce rules, and manage the flow of data and assets within the application. This enables dApps to operate transparently and securely, without the need for intermediaries or trusted third parties. + +dApps can be used for a wide range of applications, including financial services, gaming, social media, and supply chain management. They offer several benefits over centralized applications, such as increased transparency, security, and privacy, as well as reduced costs and the ability to operate without the risk of censorship or interference from third parties. + + + +### How does it work? + +A decentralized application (dApp) works on a decentralized network such as a blockchain, where data is stored and verified across a network of nodes instead of a central server. + +Here are the main steps involved in the functioning of a dApp: + +- Smart Contract: dApps are powered by smart contracts, which are self-executing code that runs on a blockchain. Smart contracts act as the rules and logic for the dApp, automatically enforcing the code and removing the need for intermediaries. +- Distributed Network: dApps operate on a decentralized network of nodes, which are computers or servers that communicate with each other and verify transactions. This network ensures that the dApp is secure and resistant to censorship, with no single point of failure. +- User Interaction: Users can interact with the dApp through a user interface (UI), which can be a web application or a mobile app. The UI communicates with the dApp backend, which processes transactions and interacts with the smart contracts on the blockchain. +- Transactions: When a user initiates a transaction, it is broadcasted to the network and verified by multiple nodes through a consensus mechanism. Once the transaction is verified, it is added to the blockchain and becomes immutable, meaning it cannot be changed or tampered with. +- Incentives: dApps typically use cryptocurrency or tokens as an incentive mechanism to encourage users to participate in the network and contribute to its security and governance. For example, users may receive tokens for validating transactions or contributing computing power to the network. + +Overall, dApps offer a decentralized and secure way of building and deploying applications, with no single point of control or censorship. + + +### What is a dApp platform? + +A dApp platform is a software platform that enables the creation, deployment, and management of decentralized applications (dApps) on a blockchain network. These platforms provide developers with the tools and infrastructure needed to build and deploy dApps, without having to manage the underlying blockchain technology themselves. + +Some examples of popular dApp platforms include Ethereum, EOS, TRON, and Binance Smart Chain. Each platform has its own set of features, programming languages, and consensus mechanisms, which determine how the network operates and how dApps are built and deployed. + +Here are some common features that dApp platforms may offer: + +- Smart Contract Development: dApp platforms typically provide tools and frameworks for developing smart contracts, which are the building blocks of decentralized applications. +- Consensus Mechanisms: dApp platforms may use different consensus mechanisms to validate transactions and maintain the integrity of the network. For example, Ethereum uses proof-of-work, while EOS uses delegated proof-of-stake. +- Token Creation: dApp platforms often enable the creation of new tokens or cryptocurrencies, which can be used as a means of exchange or to incentivize network participants. +- Interoperability: Some dApp platforms are designed to be interoperable, allowing dApps to communicate and share data across different blockchains. + +Overall, dApp platforms provide a way for developers to build and deploy decentralized applications, without having to manage the underlying blockchain technology themselves. By abstracting away the complexity of the blockchain, dApp platforms make it easier for developers to focus on building innovative and useful applications. + + diff --git a/src/blockchain-101/what-is-erc.md b/src/blockchain-101/what-is-erc.md new file mode 100644 index 0000000..15ee8c8 --- /dev/null +++ b/src/blockchain-101/what-is-erc.md @@ -0,0 +1,42 @@ +# What is ERC + +ERC stands for "Ethereum Request for Comments". It is a technical standard used for smart contracts on the Ethereum blockchain. ERC standards are designed to improve interoperability between different applications built on the Ethereum blockchain by ensuring that they all follow a set of rules and guidelines. + +ERC standards define the rules for creating, deploying, and interacting with smart contracts. For example, the ERC-20 standard defines the basic set of functions that an Ethereum token must implement to be considered an ERC-20 token. This ensures that ERC-20 tokens are compatible with each other and can be traded on decentralized exchanges and other platforms that support the standard. + +There are many ERC standards, each with its own set of rules and guidelines. Some of the most popular ERC standards include ERC-20, ERC-721 (for non-fungible tokens), ERC-1155 (for multi-token contracts), and ERC-777 (for improved token transfer functionality). + + +## What is ERC-20? + +ERC-20 is a technical standard for tokens on the Ethereum blockchain. It is a set of rules and guidelines that define how new tokens can be created on the Ethereum network and how those tokens can be transferred between accounts. ERC-20 tokens are fungible, meaning that each token is interchangeable with every other token of the same type and value. This makes them useful for creating digital assets such as utility tokens, security tokens, and other types of tokens. ERC-20 tokens have become the most common type of token on the Ethereum network and are used by a wide range of projects, including many popular cryptocurrencies and decentralized applications (dApps). + + +## What is ERC-721? + +ERC-721 is a non-fungible token (NFT) standard on the Ethereum blockchain. Unlike ERC-20 tokens, which are interchangeable and represent units of value, each ERC-721 token is unique and has its own distinct value. This makes ERC-721 tokens well-suited for representing assets such as collectibles, real estate, and other unique items. + +ERC-721 tokens are managed by smart contracts on the Ethereum blockchain, which define the ownership and transfer rules for each token. This allows developers to create decentralized applications (dApps) that utilize unique, verifiable assets with their own provenance and history. + +The ERC-721 standard was proposed by William Entriken, Dieter Shirley, Jacob Evans, and Nastassia Sachs in 2018, and has since been widely adopted by NFT projects on the Ethereum blockchain. + + +## What is ERC-777? + +ERC-777 is a newer token standard for Ethereum that aims to improve upon the widely used ERC-20 token standard. One of the main differences between ERC-777 and ERC-20 is that ERC-777 tokens can support advanced features such as token hooks and operator overloading. + +Token hooks allow smart contracts to be triggered when certain events occur, such as a token transfer, which can help enable more complex token functionalities. Operator overloading, on the other hand, allows for more flexible authorization and delegation of token transactions. + +Overall, ERC-777 is designed to be more efficient and versatile than ERC-20, while still maintaining compatibility with existing ERC-20 applications and infrastructure. + + +## What is ERC-1155? + +ERC-1155 is a token standard on the Ethereum blockchain that allows for the creation of fungible and non-fungible tokens within the same smart contract. It was proposed in 2018 as a more efficient and flexible alternative to the existing ERC-20 and ERC-721 token standards. + +ERC-1155 tokens are unique because they can represent both fungible (identical and interchangeable) and non-fungible (unique and distinct) assets within a single contract, which makes them highly versatile. This is achieved through the use of a new type of data structure called a "semi-fungible" token, which combines elements of both fungible and non-fungible tokens. + +Semi-fungible tokens have a unique ID that distinguishes them from each other, but also allow for multiple instances of the same ID to be created. This makes them ideal for representing assets such as in-game items or collectibles, where there may be multiple identical copies of an item but each one has its own unique attributes and value. + +In addition to their flexibility, ERC-1155 tokens are also more gas-efficient than their predecessors, meaning that they require less computational power to execute transactions on the Ethereum network. This makes them an attractive option for developers who want to create complex token ecosystems while minimizing costs and optimizing performance. + diff --git a/src/blockchain-101/what-is-fungible.md b/src/blockchain-101/what-is-fungible.md new file mode 100644 index 0000000..f2f2fac --- /dev/null +++ b/src/blockchain-101/what-is-fungible.md @@ -0,0 +1,36 @@ +# What is fungible? + + +## What is a fungible token? + +A fungible token is a type of digital asset that is interchangeable with another identical token, in terms of value and function. In other words, each token is indistinguishable from any other token of the same type, and can be used interchangeably without affecting its value or function. + +Fungible tokens are commonly used in cryptocurrency and blockchain applications. For example, popular cryptocurrencies such as Bitcoin and Ethereum are fungible tokens, where each unit of the currency has the same value and can be used interchangeably. + +Fungible tokens are often contrasted with non-fungible tokens (NFTs), which are unique and cannot be exchanged or replicated. For example, an NFT representing a digital artwork or collectible is unique and cannot be exchanged for another identical NFT. + +Overall, fungible tokens are useful for creating a standardized unit of value that can be easily exchanged and traded, without the need for individual verification or identification. + + +## What is a non-fungible token (NFT)? + +A non-fungible token (NFT) is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, such as digital art, collectibles, or in-game items. Unlike fungible tokens, each NFT is unique and cannot be exchanged or replicated, making it one-of-a-kind. + +NFTs are created using blockchain technology, where they are stored and verified across a decentralized network of nodes. This makes NFTs highly secure and resistant to fraud or tampering, ensuring that the ownership and authenticity of the digital asset can be traced and verified. + +NFTs can be bought and sold on various online marketplaces, and their value is determined by factors such as the rarity, popularity, and uniqueness of the underlying digital asset. The transaction history of NFTs is publicly visible on the blockchain, enabling transparency and authenticity of ownership. + +NFTs have gained popularity in recent years, particularly in the world of art and collectibles. They provide a way for creators and collectors to monetize and showcase their digital assets, while also providing a way to authenticate and verify the ownership of unique digital content. + + + +## What is a non-fungible token (NFT) marketplace? + +A non-fungible token (NFT) marketplace is an online platform that facilitates the buying, selling, and trading of NFTs. These marketplaces provide a marketplace for creators to showcase and monetize their unique digital assets, and for buyers to browse and purchase these assets. + +NFT marketplaces typically operate on blockchain networks, where NFTs are stored and verified across a decentralized network of nodes. This ensures the authenticity and ownership of each NFT, and provides transparency in terms of transaction history and ownership. + +Some popular NFT marketplaces include OpenSea, SuperRare, Nifty Gateway, and Rarible, each with their own set of features and offerings. These marketplaces allow creators to mint their own NFTs, set their own prices, and receive royalties on subsequent sales. Buyers can browse and purchase NFTs using various cryptocurrencies or fiat currencies, depending on the platform. + +NFT marketplaces have gained popularity in recent years, particularly in the world of art and collectibles. They provide a way for creators and collectors to participate in a new and innovative market, and for buyers to own and showcase unique digital assets. + diff --git a/src/blockchain-101/what-is-mining.md b/src/blockchain-101/what-is-mining.md new file mode 100644 index 0000000..e97fd1d --- /dev/null +++ b/src/blockchain-101/what-is-mining.md @@ -0,0 +1,16 @@ + +## What is mining? + +Mining is the process of adding new transactions to a blockchain and verifying them through complex cryptographic calculations. Miners compete to solve mathematical problems, which require substantial computational power, and the first miner to solve the problem is rewarded with a new block of cryptocurrency. This process also serves to secure the network, as each block is linked to the previous block, forming an immutable chain. By providing security and confirming transactions, miners play a crucial role in the functioning of most blockchain networks. + + +## What is a mining alogorithm? + +A mining algorithm is a set of rules and computational procedures that allow miners to solve complex mathematical problems to validate transactions on a blockchain network and earn block rewards. Different cryptocurrencies use different mining algorithms, and each algorithm has its own characteristics, such as efficiency, security, and resistance to ASIC mining. Some of the most common mining algorithms include SHA-256, Scrypt, Ethash, Equihash, CryptoNight, and X11. The choice of algorithm is an important aspect of designing a blockchain, as it can affect the decentralization, security, and scalability of the network. + + +## What is merged mining? + +Merged mining, also known as Auxiliary Proof-of-Work (AuxPoW), is a consensus mechanism that allows multiple cryptocurrencies to be mined at the same time without the need for additional computing power. This process enables miners to work on two blockchains simultaneously, which means that the work done on one blockchain is also accepted on the other, creating a synergy between the two blockchains. + +In merged mining, miners can work on the parent chain and the auxiliary chain at the same time, with the work done on the parent chain also being used to satisfy the proof-of-work requirements on the auxiliary chain. This can help smaller cryptocurrencies to increase their security by sharing mining resources with larger cryptocurrencies. The most well-known example of merged mining is the relationship between Litecoin and Dogecoin, where Dogecoin is merged mined with Litecoin. \ No newline at end of file diff --git a/src/blockchain-101/what-is-public-key-infrastructure.md b/src/blockchain-101/what-is-public-key-infrastructure.md new file mode 100644 index 0000000..2bacf46 --- /dev/null +++ b/src/blockchain-101/what-is-public-key-infrastructure.md @@ -0,0 +1,21 @@ +# What is a public key infrastructure (PKI)? + +A Public Key Infrastructure (PKI) is a set of protocols, policies, and procedures used to manage digital certificates and public-key encryption. It provides a framework for managing the entire lifecycle of digital certificates, including their issuance, distribution, validation, and revocation. + +In a PKI system, a trusted third party, known as a Certificate Authority (CA), is responsible for issuing and managing digital certificates. Digital certificates are electronic documents that are used to verify the identity of individuals, organizations, and devices in a secure and trusted manner. + +PKI is used in a variety of applications, including secure email, web browsing, e-commerce, and virtual private networks (VPNs). It is also used to secure communication between devices in the Internet of Things (IoT) and other applications that require secure communication and authentication. + + +## What is a private key? + +A private key is a secret number used in public key cryptography to decrypt or sign messages. In a public key cryptography system, two keys are used: a public key that is shared with others, and a private key that is kept secret by its owner. The private key is used to decrypt messages encrypted with the public key, or to sign messages to prove they came from the owner of the private key. It is important to keep the private key secure, as anyone who has access to the private key can impersonate the owner and decrypt or sign messages on their behalf. + + +## What is a public key? + +A public key is a cryptographic key that is used to encrypt data and verify digital signatures. In public key cryptography, a pair of keys is used: a public key and a private key. The public key is used to encrypt data, while the private key is used to decrypt data. + +The public key can also be used to verify digital signatures created with the corresponding private key. When someone wants to send a message to a recipient, they use the recipient's public key to encrypt the message. Once the message is encrypted, it can only be decrypted by the recipient, who holds the corresponding private key. + +Public keys are typically shared publicly, hence the name, while private keys are kept secret. In blockchain technology, public keys are often used as addresses to send and receive cryptocurrency. diff --git a/src/blockchain-101/what-is-supply.md b/src/blockchain-101/what-is-supply.md new file mode 100644 index 0000000..4318067 --- /dev/null +++ b/src/blockchain-101/what-is-supply.md @@ -0,0 +1,32 @@ +# What is supply? + +In finance and economics, supply refers to the total amount of a particular good or service that is available in the market. It refers to the quantity of a product that producers are willing to sell at a certain price over a certain period of time. The supply of a product can be influenced by various factors such as production costs, technological advancements, availability of raw materials, and government policies. The relationship between supply and demand determines the price of a product in a free market economy. When the supply of a product increases relative to demand, the price tends to decrease, and vice versa. + +## How is the supply of cryptocurrency determined? + +The supply of a cryptocurrency is determined by the rules of its protocol. In most cases, the supply is limited and predetermined at the launch of the cryptocurrency. For example, Bitcoin has a fixed maximum supply of 21 million coins, and this number will never change. Other cryptocurrencies may have different supply mechanisms, such as a fixed annual inflation rate or a dynamically adjusting supply based on certain parameters. + +The supply of a cryptocurrency can also be affected by factors such as token burns or token minting. A token burn involves destroying a certain number of tokens, reducing the overall supply of the cryptocurrency. Token minting, on the other hand, involves creating new tokens and adding them to the overall supply. + +In summary, the supply of a cryptocurrency is determined by the rules set forth in its protocol and can be affected by various factors such as token burns and minting. + + +## What is a circulating supply? + +Circulating supply refers to the total number of coins or tokens of a particular cryptocurrency that is available for trading in the market. It is the amount of a cryptocurrency that is currently in circulation and available to the public. Circulating supply does not include coins or tokens that are locked or reserved for use by the project team, developers, or other stakeholders. The circulating supply of a cryptocurrency is important because it affects its market capitalization and price, as the price of a cryptocurrency is often calculated based on its circulating supply. + + +## What is a total supply? + +In the context of cryptocurrency, the total supply refers to the maximum number of tokens or coins that can exist within a particular blockchain protocol. This number is typically established at the time of creation and is often programmed into the underlying code of the protocol, making it unalterable without a hard fork. + +The total supply can be thought of as the upper limit on the number of tokens that can ever be created. This number is important because it can influence the perceived scarcity of a cryptocurrency, which in turn can affect its value on the market. For example, a cryptocurrency with a very high total supply may be perceived as less valuable than one with a lower total supply, all other things being equal. + +It's important to note that the total supply is not necessarily the same as the circulating supply or the current supply of a cryptocurrency. The circulating supply is the number of tokens that are actually in circulation and available for trading on the open market, while the current supply refers to the total supply minus any tokens that have been burned or destroyed. + + +## What is a locked supply? + +A locked supply refers to the portion of a cryptocurrency's total supply that is not available for trading or transfer. This can include tokens that are locked up in smart contracts or held in reserve for specific purposes, such as funding development or rewarding stakeholders. A locked supply can affect the circulating supply of a cryptocurrency and therefore impact its market value. + +