Laisha Wadhwa | OpenToWork Profile picture
Aug 16, 2022 15 tweets 3 min read Read on X
Hola folks!👋🏻

It’s Day 20 of #web3glossary 🚀

A whooping $670 mn were identified in crypto losses in Q2 of 2022🤯🤯

Now that I have your attention, let’s get to some learning👀

T: Token, testnet, transaction, TPS, TVL
Token 🎟️

Token is a digital asset created on an existing blockchain & can be used to represent digital and physical assets or to interact with dapps. It allows the holder to use it for investment, to store value, or to make purchases.
Created through an ICO (initial coin offering), crypto tokens are often used to raise funds for crowd sales.
💡Crypto tokens ≠cryptocurrency & altcoins

A common question in the crypto space is, how many TPS can any blockchain handle?
What is TPS?
👉Transactions per second

It's the number of txns that a blockchain can handle per sec, & is used as a benchmark to measure its computational power.The number is purely theoritical
It's calculated by knowing the block time, the average txn size, and the block size.

Eg, a block size of 2 MB, an average txn size of 1 kb, and a block time of 30 seconds would equate to a theoretical TPS of 167 ((1000/2)/30=167).
👉Bitcoin is currently around 7 TPS, ethereum around 15, Solana at upto 65,000 Polygon upto 72,000 TPS

Why does it matter?👀

Because it indicates the network's current capacity to process txns & hence is used as a benchmark for blockchains. The faster the network is..
..the better it manages congestion. This gives it a higher payment efficiency and thus, a higher chance of adoption, institutional or individual


For some even a TPS of 15 would do and for some even 15k would be less 👀
Total Value Locked (TVL)

TVL is the total value of assets locked (i.e. being used) in a specific protocol. DeFi lending protocols like Compound Finance and decentralized exchanges like Uniswap use liquidity pools which lock assets in a vault, and therefore have a TVL.
📌Ethereum currently has highest TVL at $7.9 bn

TVL is an excellent indicator for the DeFi area of cryptocurrency & probably the most utilized to assess the health & growth of the market.
The cost of failure or mistakes on a mainnet is very high and at times irreversible so developers need an environment where they can comfortably work without these risks.

That's why we have testnets 🚀

Its the Minimum Viable Product (MVP) of a blockchain
Technically, its a software environment that mimics a mainnet blockchain, mainly used to test network upgrades and smart contracts before deploying them to the mainnet.

But why testnets though?
Because you can test & experiment with you smart contracts without risk to real funds or the main chain. Testnets also help you ensure that the smart contracts & dApps you deploy are functional and secure.

👉Testnets operate on a separate ledger.
This separation creates a low-risk environment where developers can test and experiment without the costs of deploying on the mainnet.💯💯
ex: Rinkeby and Kovan are Ethereum based testnets.

Looking for some hands on?

A guide on deploying smart contracts to Kovan testnet:…
Thats a wrap for Day 20!

I’ll be sharing information on the new vocabulary of the web for next 30 days.

It’s like a free crash course on the terms and methodolgies in Web3.

📌Follow me @laishawadhwa for more such web3 gyaan!

📌Retweet the first tweet for good karma!

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More from @laishawadhwa

Sep 22, 2022
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💯 Luxurious umbrella worth 375$
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.
Read 5 tweets
Aug 26, 2022
Gm web3 fam!

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

Read 14 tweets
Aug 23, 2022
Gm web3 fam!

Its Day 25 of #web3glossary

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
Read 13 tweets
Aug 21, 2022
Hola folks 👋

Its Day 24 of #web3glossary 🚀🚀

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

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
Read 17 tweets
Aug 20, 2022
Gm Gm Web3 fam!

Its Day 23 of #web3glossary

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.
👀👇 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👇
Read 15 tweets
Aug 18, 2022
Gm gm folks 🫡

Its day 22 of #web3glossary 🚀🚀

V: Validators

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
👇👇 Image
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.. 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👀👀
Read 15 tweets

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