How many of you have heard of terms like Bitcoin ethereum crypto cryptography blockchain dial decentralization nft web 3 all coin smart contract the list goes on and on and on in this lesson we’re going to go in simple terms with each one of these keywords mean so that you
Know exactly what’s going on my name is Eric Lee Usher and I’m the founder of profix AD our vision is to unite members and supporters of the divine nine organizations at profi we built a self-sustaining Revenue model that puts money back into the divine nine ecosystem allowing us to support
Education financial literacy and Community Development it’s important that you get active today download Pro fights right now profits.com before we get started are you ready for mission number one I’m gonna read this sentence and at the end of the video I want you to challenge yourself to see
How many keywords you can remember from this video tutorial all right do you accept the challenge Bitcoin or BTC is a decentralized digital currency that can be transferred on a peer-to-peer Bitcoin Network Bitcoin transactions are verified by Network nodes through cryptography and recorded in a public distributed Ledger called a blockchain
The cryptocurrency was invented in 2008 by an individual or a group of people using the name Satoshi Nakamoto now let’s talk about the keywords that are important in the cryptocurrency space I’m going to do my best to try to make it as relatable and understandable as possible now in the other lessons
Some of these keywords we’re going to break down in more detail but in this tutorial just going over the terms I’m going to give you the basic understanding web 3 also known as web 3.0 is the new iteration to the World Wide Web hands down the best explanation
I got about web3 came from one of our profiles nft owners meta aka1 Lucy so the way she broke it down was web one is when you can actually read what’s online web 2 is when you can actually build what’s online and web three is where you
Can actually own what’s online so in simple terms of how you can actually apply that to your real life so remember when the internet came out well I don’t know if you’re watching this you may not remember but when the internet came out we were only able to read whatever the
Developers put out there play the games what have you we were only able to actually interact with the worldwide web then later down the years we were able to actually build what’s on there think Facebook think Myspace Myspace is probably the best example so on MySpace
We were actually able to curate our own profile build it add music to it all this different customizations to it that’s Web Two web three is when we’ll be able to actually own our MySpace account so think about when you had a MySpace account if you had a MySpace
Account or think about your Instagram your Facebook page your Tick Tock what every platform that you have your LinkedIn imagine if you actually own the information on that so all the images that you posted all the music that you posted if anybody else was to post it or
Use it you would actually get paid from that because you’re the owner of that content That’s The Power of web 3. in order to do that web3 incorporates Concepts such as decentralization blockchain technology and token based economics so let’s talk about decentralization so to Simply understand decentralization imagine a chapter
Meeting where majority vote had to be counted in order for anything to be approved and centralization is when the chapter President says hey this is the new law and then everybody has to abide by it majority of blockchains operate as a decentralized structure because it requires majority approval for anything
To get accomplished so to Simply understand decentralization when you think about decentralization think group approval and we think about centralization think individual approval this is why the blockchain technology is so important because it utilizes decentralization in order to get things approved so that nothing can be manipulated and not one person can
Change anything so how can all this be done on web3 one word cryptography now remember the word crypto is short for cryptography which is the art of keeping things secret and safe by transforming it to a secret text or symbol that’s only used for a specific use in other
Words it’s just the technical process of converting plain text into letters symbols and numbers cryptography so once it’s converted to this secret text letter as a symbol who keeps track of all this secret information that’s called the blockchain so the blockchain a blockchain is a decentralized ledger which records all
Transactions on a network similar to a public Excel sheet of all transactions recorded on two or more computers that are connected and shared the exact same resources called peer-to-peer Network which means every Network shares the exact same information so imagine if every chapter in our organization had a public Ledger and all
Shared the exact same information if one chapter decided they wanted to change or add something to this Ledger because of the blockchain technology they would immediately be rejected because remember in order for anything to change majority of the chapters have to approve the same information so each
Chapter can then be updated with the same data That’s The Power of a blockchain using this technology we can confirm transactions without the need of a centralized Authority blockchains can be used to transfer funds settle trades voting and many other applications total transparency so this is why a lot of
Countries are adopting this technology within their ecosystem and they’re doing that with cryptocurrency so if you take the word crypto which is short for cryptography and currency which is the medium of exchange for gooder services and you put those two together and you marry it you have cryptocurrency
That’s all cryptocurrency is it’s taking cryptography and currency and merging the two so cryptocurrency is a currency that is both digital and decentralized and secured by cryptography which is nearly impossible to double spend or counterfeit because of the blockchain technology so now that we understand what cryptocurrency is how do you
Actually use this digital decentralized currency right a wallet but a digital wallet like the one you have in your phone or your computer now this digital wallet is what stores all your crypto and your nft and it keeps it safe within the blockchain now there are two different type of wallets there’s the
Hot wallet which is online that’s normally software based and then is the code wallet which is offline that’s normally on a device similar to this so what is the difference between a cold wallet and a hot wallet a hot wallet is a wallet that is always connected to the
Internet they allow you to store send and receive tokens hot wallets are linked with public and private keys that help facilitate transactions and act as security measures while more convenient for quickly accessing your crypto these wallets are a bit more susceptible to hacking and cyber security attacks than
Offline wallets just as files stored in the cloud may be more easily hacked than those locked in a safe in your home cold wallet and cold storage a secure method of storing your cryptocurrency completely offline many cold wallets also called Hardware wallets are physical devices that look
Similar to a USB drive this kind of wallet can help protect your crypto from hacking and theft though it also comes with its own risks like losing it along to crypto this is the most secure way to store your crypto but you better not lose it or you lose your crypto
Okay so those are the two forms of storing your crypto now with a cold storage you want to make sure you study the company that is telling you this USB that is telling you this device because there are a lot of devices out there that is really not as secure as you
Think they are and we’re probably going to go into those devices in a later video down the line but just kind of give you a basis that don’t just buy any oh oh offline or wallet don’t don’t do that and now the most popular one that everybody is discussing is the hot
Wallet which is what we know which is the coinbase is the crypto.com the metamask the binance is the FTX research those individually because each company has their pros and cons so you want to make sure it matches something that’s comfortable for you now we utilizes metamask because that just
Allows you to just open a wallet whenever you want and that’s the thing with the little fox I’ll probably put a logo right there but metamask pretty much is a hot wallet that’s also decentralized because it doesn’t ask for any of your private information but it’s stored through your public key and your
Private key so let’s dive into what a public key and private key is photography can be broken down into three different types secret or private key cryptography public key cryptography or hash functions these keys are how the wallets communicate on the blockchain remember not your key not your crypto private key
The encrypted code that allows direct access to your cryptocurrency like your bank account password you should never share your private key public key your wallet’s address which is similar to your bank account number you can share your public wallet key with people or institutions so they can send you
Money or take money from your account when you authorize it hash a unique string of numbers and letters that identify blocks and are tied to crypto buyers and sellers the record of the transaction all right so remember I’m gonna repeat this again never share your private key with anyone as a matter
Of fact write it down in three different places store it in places that only you know so you don’t lose it because if you lose it you lose all your crypto assets all right okay so then we have coins and tokens so simply put a token represents
What you own a coin represents what you’re capable of owning while crypto coins mimic traditional currency crypto tokens are more like assets or deeds so remember a coin is what you spend a token is what you own then you have altcoin all all coins are all alternative coins which is pretty much
Alternative to bitcoin so everything that’s not Bitcoin is an altcoin because it’s an alternative coin that’s it it’s just an alternative token so we all have an altcoin I have altcoin that means you have a coin that’s alternative to bitcoin then you have non-fungible tokens which are nfts and nfts are
Digital authentication of ownership whether it’s music image video MP3 file jpeg GIF what have you it’s a digital authentication of ownership now remember non-fungible means it can’t be exchanged for the same value as something that’s fungible like a dollar bill a dollar bill is fungible because it could be in
Exchange if I give you a dollar you’re gonna give me four quarters back that’s fungible if I give you an nft that perceived value is based off of the value that you give it and the value that I give it which makes it non-fungible what makes this cool is it
Utilizes the same technology as cryptocurrency which makes it hard to duplicate and hard to counterfeit which is why nfts are so popular and a lot of companies are starting to adopt it because they’re starting to realize that they can use this technology to protect their IP then we have ethereum so I’m
Only talking about ethereum because ethereum is the second largest cryptocurrency outside of Bitcoin which is the first and eth and a lot of companies are utilizing their blockchain because they’re kind of one of the first ones to really Master the smart contract technology which allows you to have some
Parameters in place and the blockchain and the blockchains will automatically execute that what makes ethereum so cool is it’s a decentralized open source blockchain with smart contract functionality which means anybody can participate within the ethereum ecosystem because it’s open source they established a peer-to-peer Network that securely execute and verifies
Application code which is called the smart contract so what makes a smart contract so cool it’s a self-executing contract with the terms of the agreement between the buyer and the seller already built into the code the code in the agreement exists across a decentralized and distributed blockchain so imagine if
There was a step shelf right and the prize money for the step show was a thousand dollars for the fraternities a thousand dollars for the sororities right so prior to the step Show starting we built in to a Smart contract that whoever has majority vote receives the
Money so then we would go ahead and write that line of code saying all right whichever organization has a majority of the vote would instantly get the money regardless of what transpired with the step show right so that you execute that smart contract you put it on the
Blockchain you attach the wallet and immediately after the blockchain I mean after the step show immediately after the step show based off who won that step show that money will automatically be sent to the winner because the smart contract executed the contract on your behalf so it doesn’t you don’t you don’t
Need a recount you don’t need a revote you don’t need any of that stuff because the smart contract executed it for you which eliminates human emotion and human era then you have the Dow d-a-o decentralized autonomous organization don’t worry we have another video that goes over how the dial structure works
In the next lesson so continue to watch these videos but adopt is a community-led entity with no Central Authority is fully autonomous and transparent utilizing the smart contract functionality to execute everything on its behalf so in other words it’s a foundation that has a set of rules and
Guidelines that you have to abide by that’s already written into the smart contract that no one person can change it requires majority vote of approval in order for anything to change within a dial structure the best part about it is it’s all public and it can be publicly audited which means everything that
Happened within a dial structure everything you do within that dial is track so that’s kind of what’s cool about what we’re doing with the profiles nft so everybody that purchases a profiles nft will be inputted into the Dow the decentralized autonomous organization and they’ll be given one
Vote to determine where all the grant money that we’re pulling goes to for our profiles app members so in the net in the other video we’re going to really highlight the power of a out so I’m really important that you pay attention to it because after watching that video
You may want to purchase one of those programs nfts really fast because remember we only have a thousand available per organization and every year we’re only releasing a hundred every year now when you see gas all gas is similar to like the gas you put in
Your car it’s pretty much the fuel you need in order to keep going the way Gas Works on the blockchain system is when you have different miners which is people that are validating your nodes and validating your transactions they’re using their computer power they’re using electricity they’re using energy so
Because they’re using that energy that’s a cost that they have to pay they pass that cost over to you and gas fees which helps pay for what they’re doing so that’s all gas fees are so don’t get you know all emotional about gas fees understand when you’re paying a gas fee you’re paying
Somebody to validate the transaction that you want to happen on the blockchain so that it could be shared with all of the blockchains and we share with all of the nodes all the computers so that was a lot of terms to cover I hope it was digestible I hope you were
Able to actually understand these terms we were able to break it down on simple terms the next video we’re going to highlight what the blockchain technology really is like it’s gonna be a full video just on the blockchain technology and one of my profiles nft owners are
Actually going to explain it to you so that you can have a different face I hope this was enjoyable I hope this was informative so please share this information share this video with every D9 member you know y’all let’s get connected and remember stay active and download profits app today thank you
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