Recorded by TechSoup on September 13, 2023.
https://events.techsoup.org/e/mbuuw2/
Blockchain, Decentralization, Cryptocurrencies, and DApps. We hear these terms every day, but what do they really mean? And, more importantly, how can they be used in Civil Society?
In this first in a series of webinars, Gloria Kimbwala will take you through the fundamentals and answer questions like:
What is the Decentralized Web and why is it important for Makers?
What are blockchains?
How does blockchain technology enable decentralization?
How do you buy/sell/store/send cryptocurrencies?
What are protocols and DApps?
How can you create ethical DApps that factor in all groups within society?
The session will cover the answers to these questions and more.
2. This series of guides is intended to help you take the information presented in the webinar
and translate that into practical knowledge.
Guide #1 will take you through the foundations of decentralized web and how itʼs
fundamentals apply to the makers of Civil Society.
Once completed, youʼll be well on your way to understanding how decentralized web
technology can benefit yourself and your organization.
We encourage you to take the lessons learned and explore further. It is not intended to be
financial advice.
INTRODUCTION
3. Been working in decentralized web since 2017.
40+ hackathons a year since 2020
Formerly of Gitcoin and Buildbox
Always be building!
Bio
5. What are
blockchains?
Blockchains are distributed and decentralized digital ledger technologies that are designed to record
transactions and data in a secure and immutable manner. They serve as the foundational technology
behind cryptocurrencies like Bitcoin, but their applications extend far beyond digital currencies. Here are
some key characteristics and concepts associated with blockchains:
Decentralization
Immutable and Transparent
Security
Consensus Mechanisms
Smart Contracts
Public vs. Private Blockchains
Use Cases
Tokens and Cryptocurrencies
7. How do they work?
Blockchains operate by harnessing a blend of cryptographic methods, distributed networks, and
consensus mechanisms. They establish an impervious, decentralized, and openly accessible ledger for
recording transactions or data. These ledgers rely on consensus mechanisms to confirm and incorporate
fresh information into the blockchain, and once integrated, the data becomes unchangeable. This
transformative technology holds the capacity to reshape numerous industries by fostering trust and
diminishing the necessity for intermediaries in both transaction processing and data administration
9. What are the
different type of
chains
The choice of which type of blockchain to use depends on the specific use case and requirements. Public
blockchains offer decentralization and security but may have scalability and privacy limitations. Private
and consortium blockchains offer more control and privacy but sacrifice some decentralization. The type
of blockchain selected will depend on factors such as the need for trust, transparency, scalability, and the
intended user base.
Public Blockchains
Private Blockchains
Consortium Blockchains
Permissioned Blockchains
Hybrid Blockchains
Sidechains
Federated Blockchains
Multi-Chain Systems
Non-Blockchain Distributed Ledgers
10. What are smart
contracts?
Smart contracts are self-executing contracts with predefined rules and conditions that automatically
execute and enforce the terms of an agreement when certain predefined conditions are met. They are a
key feature of blockchain technology, particularly on platforms like Ethereum, which was designed with
the explicit purpose of supporting smart contracts.
Here are some key characteristics and concepts related to smart contracts:
Code-Based
Decentralized Execution
Automation
Transparency
Trust
12. How does blockchain
enable
decentralization?
Blockchain technology shifts control and trust away from centralized authorities and intermediaries,
distributing it across a network of nodes. This decentralization model offers greater security,
transparency, and autonomy, making it particularly suitable for applications where trust, censorship
resistance, and transparency are critical, such as cryptocurrencies, smart contracts, and decentralized
finance (DeFi).
13. How does blockchain
enable
decentralization?
Distributed Ledger:
Peer-to-Peer Network:
Consensus Mechanisms:
Immutable Records:
Public Verification:
Decentralized Governance:
No Single Point of Failure:
Permissionless Access:
Trustless Transactions:
Global Accessibility
14. What are the broader
impacts of
decentralization in
civil society?
Decentralization can have significant and far-reaching impacts on civil society and various aspects of
society as a whole. Here are some of the broader impacts of decentralization:
Empowerment of Individuals and Communities
Enhanced Civic Engagement
Reduced Corruption and Accountability
Tailored Solutions
Faster Response to Local Issues
Promotion of Diversity and Inclusivity
Innovation and Experimentation
Conflict Resolution
Resilience and Sustainability
17. What are
cryptocurrencies and
how do they work?
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on a
technology called blockchain, which is a distributed and decentralized ledger that records all transactions
across a network of computers.
19. What functions do
they serve in
societies?
Cryptocurrencies serve various functions in societies, ranging from financial transactions to enabling new
technological innovations. Here are some of the key functions that cryptocurrencies fulfill:
Digital Cash
Store of Value
Remittances
Financial Inclusion
Micropayments
Fundraising and Crowdfunding
Smart Contracts
Privacy and Security
Digital Identity
Supply Chain Management
Voting Systems
Ownership and Provenance
Cross-Border Trade
Innovation and Research
Decentralized Finance (DeFi)
20.
21. How do you buy
crypto?
1. Choose a Cryptocurrency
2. Select a Cryptocurrency Exchange or
Platform
3. Create an Account
4. Secure Your Account
5. Deposit Funds
6. Place an Order
7. Review and Confirm
8. Secure a Wallet
9. Withdraw to a Wallet (Optional)
10. Track Your Investment
11. Secure Your Investments
12. Stay Informed
22. How do you sell
crypto?
1. Choose a Cryptocurrency Exchange
2. Log In to Your Account
3. Navigate to the Trading Section
4. Select the Cryptocurrency to Sell
5. Choose the Trading Pair
6. Select the Order Type
7. Enter Transaction Details
8. Review and Confirm
9. Verify Your Identity
10. Complete the Sale
11. Receive Funds
12. Withdraw to Your Bank Account or Wallet
13. Secure Your Remaining Holdings
14. Keep Records
23. How do you store?
Storing cryptocurrencies securely is crucial to protect your digital assets from theft or loss.
A cryptocurrency wallet to store your digital assets.
24. Secure Your Private Keys:
Your private keys are the most critical piece of
information when it comes to cryptocurrency
security. Keep them secret and secure:
a. Never Share Your Private Keys
b. Use Strong Passwords
c. Enable Two-Factor Authentication (2FA):
25. How do you send
crypto?
Sending cryptocurrencies involves a straightforward process, but it requires precision and adherence to
specific steps to ensure a successful and secure transaction.
Enter the Recipient's Address
Specify the Amount
Set the Transaction Fee (if applicable)
Include a Memo or Note (if necessary)
Review the Transaction Details
Confirm and Send
27. What are protocols?
Protocols and dApps (decentralized applications) are two fundamental components of blockchain and
decentralized technology ecosystems. They work together to enable various functionalities and use cases
in the world of blockchain and cryptocurrencies.
Protocols are the foundational rules, standards, and sets of instructions that govern how a blockchain
network operates.
Well-known blockchain protocols include Bitcoin (BTC) for peer-to-peer digital cash transactions,
Ethereum (ETH) for smart contracts and decentralized applications, and various others like Cardano
(ADA), Polkadot (DOT), and Solana (SOL).
28. What are dApps?
Decentralized applications (dApps) are software applications that run on blockchain networks.
dApps have a wide range of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs),
gaming, supply chain management, identity verification, and more. Some well-known dApps include
Uniswap (a decentralized exchange), CryptoKitties (a collectible NFT game), and Aave (a DeFi lending
platform).
29. Benefits
Decentralized applications (dApps) offer several benefits compared to traditional centralized applications
Decentralization:
Trustless Transactions:
Transparency:
Ownership of Data:
Global Accessibility:
Innovation and Customization:
Tokenization:
Reduced Costs:
Immutable History:
Global Collaboration:
Community Governance:
Resilience:
30. Challenges
Decentralized applications (dApps) have several challenges and limitations that can impact their adoption
and effectiveness.
Scalability:
User-Friendliness:
Low Adoption:
Interoperability:
Regulatory Uncertainty
32. What programming
languages are being
used?
Solidity:
● Platform: Ethereum
● Use Case: Smart contract development
● Description: Solidity is Ethereum's primary smart contract programming language. It is specifically designed
for creating decentralized applications and self-executing contracts. It has gained significant popularity in the
Ethereum ecosystem.
Rust:
● Platform: Polkadot, Solana
● Use Case: Blockchain development, smart contract development
● Description: Rust is a systems programming language known for its strong memory safety guarantees. It is
used in the development of various blockchain platforms and smart contracts, including Polkadot parachains
and Solana.
C/C++:
● Platform: Bitcoin, Ethereum (client development)
● Use Case: Blockchain development, client implementations
● Description: C and C++ are used for implementing the core clients of blockchain networks like Bitcoin and
Ethereum. They provide low-level control and are suitable for performance-critical components.
33. What programming
languages are being
used?
JavaScript/TypeScript:
● Platform: Ethereum (dApps), Web3.js, Truffle
● Use Case: Decentralized application development, front-end development, tooling
● Description: JavaScript and TypeScript are commonly used for building user interfaces and web-based
applications that interact with Ethereum and other blockchain networks. Web3.js is a JavaScript library for
Ethereum interaction, and Truffle is a development framework.
Go (Golang):
● Platform: Ethereum (Go-Ethereum client), Hyperledger Fabric
● Use Case: Blockchain development, client implementations
● Description: Go is used for implementing Ethereum's official Go-Ethereum client and is also used in
Hyperledger Fabric, a permissioned blockchain platform.
Python:
● Platform: Various blockchain platforms (for scripting and tooling)
● Use Case: Blockchain scripting, tooling, data analysis
● Description: Python is used for various tasks in blockchain development, such as scripting, building tools, and
performing data analysis. Libraries like Web3.py facilitate interaction with Ethereum.
34. What programming
languages are being
used?
Java:
● Platform: Hyperledger Fabric, Corda
● Use Case: Enterprise blockchain development
● Description: Java is used in enterprise blockchain platforms like Hyperledger Fabric and Corda for building
smart contracts and applications.
LLL (Low-Level Lisp-like Language):
● Platform: Ethereum
● Use Case: Smart contract development (low-level)
● Description: LLL is a low-level language for Ethereum smart contract development. It is less commonly used
than Solidity and Vyper but offers more control over contract execution.
Simplicity:
● Platform: Bitcoin, Tezos
● Use Case: Smart contract development (Tezos)
● Description: Simplicity is a high-level programming language designed for secure and reliable smart contract
development. It is used in the Tezos blockchain.