Hundreds of content about blockchain are scattered all over the internet.
Smart individuals have done several videos and blog posts explaining this so a layperson can understand the blockchain concept.
The problem is that these contents need to be more organized. You may read a foundational post about blockchain today.
The following day you are reading the technical aspect of blockchain from a different source.
This can easily make new blockchain enthusiasts easily confused and overwhelmed by the technology, including unfamiliar terminologies.
I have compiled this content from fundamental concepts about blockchain to technical concepts.
After reading this article, you should be able to understand everything about blockchain technology, its future, and how you can make money from it.
What Is Blockchain in Simple Terms?
I recall researching how I could make money with this technology when I was new in this industry.
Every article I read was filled with jargon that newbies needed help understanding.
How can you explain a new concept to a newbie yet keep using terminologies he isn’t familiar with?
I found it interesting how Abhimanyu Bhargava explained what blockchain is.
If you want a visual explanation, this video explains what blockchain is.
History of blockchain: Who invented bitcoin and why?
Blockchain existed since 1991 before Satoshi Nakamoto published the Bitcoin Whitepaper.
Here is a video detailing the history of blockchain.
How Blockchain Works.
This video by Anders Brownworth gives a visual demo of how blockchain works.
Learn how to set up your crypto wallet in the most decentralized crypto wallet, Metamask.
Let’s start by understanding what the consensus mechanism in the blockchain is.
And why it is important for blockchain technology to function properly.
There are different types of consensus mechanisms.
The most famous two, POW(proof of work) and POS(proof of stake) have been covered in the video about the “consensus mechanism.”
Below are other types of consensus mechanisms and how they work.
- Proof of Authority(POA)
- Proof of History(POH)
- Proof of Activity(POA)
- Proof of Capacity(POC), aka Space and Time
- Proof of Burn(POB)
- Delegated Proof is Stake
- Proof of Weight(POW)
- Practical Byzantine Fault Tolerance
- Unique Node List
- Direct Acyclic Graph.
- Pure Proof of Stake(PPoS) Part 1 & Part 2
- Proof of Importance
- Federated Byzantine Agreement
Types of Blockchain
There are three different types of blockchains, which are
This is a comprehensive video explaining the different types of blockchains.
What is the difference between bitcoin and blockchain?
People often mistake bitcoin for a blockchain or use both as if they were the same.
Watch this video to get a clear understanding of their difference.
How different industries use blockchain
This video lists 19 industries that blockchain technology is disrupting.
How Many Blockchains Are There?
There are at least 1,000 blockchains, such as Ethereum, Bitcoin, Fantom, Solana, etc.
As the year goes by, we will continue to see new blockchains created to solve problems that the existing ones aren’t solving. Or these new blockchains will be solving problems created by existing blockchains.
One thing about blockchains is that they create an environment for crypto projects to build on them.
The Ethereum blockchain created a platform for building unique projects like AAVE, Compound, Uniswap, etc.
Creating the Solana blockchain has provided a platform for unique projects like Phantom, Audius, Raydium, etc., to be made.
Each blockchain stands as a pillar that cannot interact with other blockchains.
Ethereum blockchain can not interact with bitcoin blockchain just as Solana blockchain cannot interact with Avalanche blockchain.
This means projects built on the Avalanche blockchain cannot run on the Solana blockchain.
However, there are a few solutions already exist.
First is making all blockchains EVM compatible so that Ethereum blockchain applications can interact with Solana blockchain applications.
The second is making all blockchains exist as an ecosystem, just as Cosmos does.
Pros and Cons of Blockchain
Everything in life has pros and cons. The same applies to blockchain technology. It wouldn’t be a saint if it were a human.
How to Invest in Blockchain
- Spot trading
- Futures trading
- Build products
- Provide services like content writing, community building, etc.
Knowing that you can make money from the blockchain is one thing. And it is another thing to know how to invest wisely to have a profitable investment portfolio.
What is cryptocurrency?
Let’s dive into what cryptocurrency is.
I cannot be exempted from this flaw. I used to make the mistake of calling all cryptocurrency tokens and coins.
Difference Between a Token and a Coin
I have seen several people who have mistakenly called all cryptocurrencies a token or coins.
At some point, I made a similar mistake. I used to call all cryptocurrency tokens and coins.
Nevertheless, you must understand the difference between a token and a coin so that you use them where and when necessary.
Knowing the difference may be insignificant that you could lose a job interview or a client.
But, when you write or speak among enlightened crypto enthusiasts, how you use both can quickly identify if you’ve done your homework.
Token: a cryptocurrency requiring a platform to operate or exist on.
For instance, Uniswap, DYDX, AAVE, Compound, etc., are running on the Ethereum platform and categorized as tokens.
Coins: a cryptocurrency that operates on its platform independently.
For instance, Ethereum, Atom, Solana, Avalanche, etc., are running on their platform. Therefore they are categorized as coins.
Two types of tokens
Fungible tokens are digital assets that are interchangeable with each other and have the same value, properties, and characteristics.
These tokens are built on blockchain technology and are often used as a form of cryptocurrency, representing a unit of value or utility.
One of the most popular examples of fungible tokens is Ethereum, Solana, USDT, USDC, Avalanche, and Fantom, which are used for creating and exchanging different types of cryptocurrencies.
The key characteristic of fungible tokens is that they can be easily exchanged with other tokens of the same type without losing value or functionality. This makes them highly versatile and useful for various applications, such as peer-to-peer transactions, remittances, and decentralized finance (DeFi) applications.
Non-Fungible tokens (NFT)
What is NFT?
NFT means non-fungible token. For easy understanding, you can say, non-replaceable token.
The blockchain industry is a feature of Web3. The reason is that it makes it easier to people to use the internet anonymously and privately.
Anonymous and privacy are the major components of Web3.
Let’s take a look at what Web3 is.
Is Blockchain Secure?
What are the top 5 Blockchains?
- BNB Chain
How to create a blockchain
What are the key components of a blockchain system?
Listen to Ram Amancha’s explanation.
What are the four features of a blockchain?
It is easy to get overwhelmed by the noise of blockchain without fully understanding its features.
What is an example of blockchain?
- Sui Network
How does blockchain make you money?
As blockchain technology moves to serve as a decentralized technology, it needs the services of skilled people to create, maintain and market them.
There are many ways to make money on the blockchain.
- Here are eight ways to make money in the blockchain.
- Become a content writer for blockchain projects.
- Become a community manager.
Can Bitcoin exist without blockchain?
Bitcoin is a cryptocurrency. Cryptocurrencies cannot exist without a blockchain.
Who can verify transactions in blockchain?
In a proof of work(POW), miners verify transactions.
In a proof of stake(POS), validators verify transactions.
Can transactions on the blockchain be traced?
Yes, they can be traced. It is a public ledger, so everyone can see where a token was left or went.
What is the difference between a decentralized and distributed ledger?