Web3 refers to the next generation of the internet that aims to create a decentralized,
user-centric web where individuals have more control over their data, digital identity,
and interactions online. It utilizes blockchain technology and decentralized networks to
offer enhanced security, privacy, and transparency.
Cryptocurrencies are digital or virtual currencies secured by cryptography and built
on blockchain technology. They enable secure peer-to-peer transactions without the need
for intermediaries like banks. Bitcoin, Ethereum, and Litecoin are examples of
cryptocurrencies.
Blockchain is a distributed ledger technology that records transactions across multiple
computers in a decentralized network. Each block in the chain contains a cryptographic
hash of the previous block, creating a secure and immutable record of transactions.
A decentralized application (dApp) is an application that runs on a decentralized
network, typically a blockchain. Unlike traditional apps, dApps operate on a
peer-to-peer network without a central authority, enabling trustless interactions,
data transparency, and immutability.
Cryptocurrencies are securely stored in digital wallets. Hardware wallets, software
wallets (desktop, mobile), and paper wallets are common types. Hardware wallets,
considered the most secure, store private keys offline, while software wallets are
convenient but potentially more vulnerable.
Yes, mining is the process of validating transactions and adding them to a
blockchain. Miners solve complex mathematical puzzles using computational power to
verify transactions. They are rewarded with newly created cryptocurrencies as an
incentive for maintaining the network's security.
Blockchain technology utilizes a decentralized ledger where transactions are recorded
and verified by a network of nodes. Each transaction is cryptographically linked
and stored in blocks, forming an immutable chain. This transparency enables anyone
to view transaction history, promoting trust and accountability.
Initial Coin Offerings (ICOs) are fundraising events for new cryptocurrencies or
projects. To participate, individuals typically need to send contributions in
established cryptocurrencies (such as Bitcoin or Ethereum) to the project's
address during the ICO's specified period.
Smart contracts are self-executing contracts with predefined conditions written in
code on a blockchain. They automatically execute and enforce the terms of an
agreement when predefined conditions are met, eliminating the need for intermediaries
and enhancing security and efficiency in various applications.
