We have IPO's in traditional web2 companies, what about web3?
Let’s talk about crowdfunding models in this space!
In web3, we have ICO - Initial Coin Offering. A company seeking to raise capital to create a new coin, app, or service uses an ICO (selling tokens to the public) to raise funds.
Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company.
What value will you get out of it?🤔👇
This token can have some utility related to the product or service the company is offering , but doesn't gaurantee any equity in the company‼️
2017 was the year of Initial Coin Offering, where project were funded on the basis of white papers.
ICOs are (almost) completely unregulated, so DYOR before investing in them‼️
Back then ICO was a hassle-free mode of fundraising & hence gained popularity. The spike in adoption of ICOs came as a quick money-making opportunity for not only startups and investors but also spammers
Hackers continued robbing investors in the name of lucrative investments until 2019, that's when
IEO's came into picture.
IEO = selling tokens to raise capital with increased regulation.
Its similar to ICO, but unlike an ICO, an IEO is managed by an existing cryptocurrency exchange.
IEO's take care of the entire launch and promotion of the funding process.
IEO’s come with many advantages: more trust, exchange takes care of the whole KYC and AML process and ofc legal protection
Do you think IEO is the concrete future of Blockchain based Crowdfunding economy?
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There are other blockchain funding models like DAICOs and ETOs out there.
If you’d like to know more on this, let me know in the comments. Will share a thread covering these models and their impact on your business!
Thats a wrap for Day 9!
I post a thread covering the new vocabulary of the web - web 3.0, for next 30 days.
It’s like a free crash course on the terms and methodolgies in Web3
Whether its a brand fight b/w Pepsi & Coca Cola or Nike launching a new shoe collection, brands spend millions of $$ on marketing to win the battle. For brands to hold a prominent position in the eyes of their targeted audience, strategising is vital
Let me ask you question👇👇
How much does an Umbrella cost?
10$ - 12$ maybe
What's the function of an umbrella?
📌To Keep you dry when its raining
There’s a brand called Pasotti, whos’ umbrellas cost anywhere between 250$ - 800$
Obviously a more sturdy, luxurious umbrella, even opening it sounds good💯
But, why would someone pay 500$ for an umbrella when the function is the same?🤔
When people are buying quality, they’re expecting something different. They take better care of it, and since they take better care of it, it lasts longer.
Its finally day 26 of #web3glossary🚀
And with this, series has come to an end
Z: zk Rollups
By learning you'll teach and by teaching you’ll learn. Sharing on web3 terms & jargons for the last 1 month was a great learning experience for me and I hope for you too
Let's get to the thread now?
Having to spend $20 or more in gas fees for a single txn is not ideal if you want to complete a DeFi trade
If you've been hearing zk or zero knowledge, you're not alone. It's the next big thing in web3
With an increase in the number of Dapps, ...
there’s a need for faster processing speeds & cheaper txns.
That’s when layer 2 solutions came in.
Zk rollups are also a layer 2 scaling solution that increases throughput on Ethereum Mainnet by moving computation & state-storage off-chain
Decentralized networks can only provide 2 out of 3 benefits at any given time in terms of decentralization, security, & scalability Blockchain Trilemma
Let’s look at modular blockchains which aim at solving for scalability & flexibility
We’ll be comparing different modular blockchains today, but first
What’s modular blockchain?🧐
In monolithic blockchains such as bitcoin,Ethereum all the nodes & validators of the network are required to execute the same txns & do consensus on the chain
Modular blockchain..
..focuses on handling a select few duties (consensus, execution, Data availability & settlement) & outsourcing the rest to one or more separate layers
It’s just like separating a system into distinct components that can be combined in various ways to achieve specific objectives
Consensus mechanisms ensure that all the txns on the network are genuine & all participants agree on a consensus on the status of the ledger. PoS and PoW are the most commonly known.
Today we look at PoA, PoB, PoC and PoH
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Need some background on consensus algos? Check out this thread on PoS vs PoW
Both PoS and PoW have their fair share of pros and cons, let's look at how other cosensus algos differ
PoA: Proof of Activity (not authority)
To verify participants blocks, it combines its tokens to allow both mining and staking. The blocks themselves do not contain transactions
W: WWW,Wrapped token,wei
Do you remember the first time you heard about Blockchain? Maybe you took it as a new technology that would change everything. Maybe you just wondered if you should start investing in crypto.
Maybe...
👀👇
..you were just getting your head around the concept of a decentralized web
The truth is web3 is indeed the decentralized internet of the future🚀
#web3glossary was started as a series of twitter threads to help people understand this space better and clear the air around...
.. the terms & jargons we hear around. We are almost at the end of the series and I would like to hear from you what value you gained from it and what more would you like to see😃
Until then, let’s get to today’s thread
Let’s go back to where it all started- the world wide web👇
Validators of blockchain technology aren't only its sower but its rewards reaper too. Let's get to the depth of it🧐
But first, here's some humor to start with
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What are crypto validators and how do they work?
Crypto validators = Payment processors of the decentralized networks.
Technically, a crypto validator is a participant in a blockchain responsible for verifying txns.
After verifying the legitimacy of the txn, the validator adds..
..it to the distributed ledger.
Seems like the job of a blockchain validator is not that difficult!
You receive some data, check its accuracy, and validate it or not.
However, on a distributed ledger, it's easier said than done👀👀