WTF is Web 3.0? The 2nd thread of the series

Now that we know what Blockchain is, how can we trust it?

How do we guarantee that every "block" in the "chain" is valid?

Blockchain 101: Solving trusting issues 🧵👇


If you know what Blockchain is, then feel free to keep reading.

If not, then please start here 👇

0. The foundation

Trust plays a big role in the Blockchain.

But how do we build trust?

We build trust by having an agreed set of consistent behaviors.

Eg.: if I say "I love my girlfriend", she expects a certain behavior from me.

To be faithful, avoid lying, be friendly...⬇️

1. Building consensus

These behaviors act as a consensus.

My girlfriend starts to trust me when I say "I love you".
Other people start to trust me when I say "I love her".

So, a "consensus" is a set of behaviors/mechanisms/norms people agree on to build trust.

wait, but...⬇️

2. Consensus + Blockchain = ❤️

...but what does consensus have to do with Blockchain? Everything

IF consensus is what lies between two people agreeing on something
Blockchain validates those agreements

We need consensus to trust in Blockchain's validations.

How? ..⬇️

3. Consensus mechanisms

Like in a relationship, we need to set the behaviors/norms/mechanisms of how "trust" is built.

In the Blockchain we mostly use 2 norms/mechanisms to build trust:

• Proof of Work and
• Proof of stake

"Nice, I've heard that before, what's that?"...⬇️

4. Proof of Work

Imagine the following: in high school, we get grades right?

Studying is the "work" and by putting in the work- studying - we get a grade.

"Proof of Work" stands for the same here.

We put in the work and we get a result.

That result proofs our work....⬇️

5. Miners and "work"

Who puts in the "work" and what type of "work" is that? Miners.

Miners = people who use computing power to "work".
"Work" = solving maths puzzles.

The 1st miner to solve the puzzle gets rewarded.

How? With Bitcoins.

Thereby "mining bitcoin" ..⬇️

6. Proof of Stake

So, at the end of our high school, we get a certificate, right?

That certificate serves as "proof" of our work.

And why do we need a certificate?

To serve as "proof" for what we've put in "stake".

And what was that?

Our money, time, and studying hours ..⬇️

7. Validators: "proofing" the "stake"

We believe in certificates cause they're validated.

And who validates them? Teachers right?

Validators = people who validate blocks in the "chain"

The 1st validator to validate a block gets rewarded.

How? Eth (Ethereum.'s coin)..⬇️

8. Validators vs Miners

"But, what are the differences between Miners and Validators?"

1. Miners spend tons of energy on computing power - multiple people competing to solve the same puzzle. Validators don't.

2. Miners only exist in Bitcoin.

Wrap up ..⬇️

9. Wrapping up

As mentioned before, the Blockchain is a "chain" of registered transactions saved in "blocks".

These "blocks" have to be validated for us to trust them. Only then they're added to the "chain".

These validations occur based on consensus mechanisms ...⬇️

These mechanisms are:
• Proof of Work
• Proof of stake

The ones behind the validations are:
• Miners solve puzzles
• Validators valid blocks.

And they are rewarded:
• Miners get Bitcoins
• Validators get Eth

"Bitcoins? Eth?"

And that's the topic for our next thread...

If you're here -- Thanks for reading

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0. The foundation
1. Building consensus
2. Consensus + Blockchain = ❤️
3. Consensus mechanisms
4. Proof of Work
5. Miners and "work"
6. Proof of Stake
7. Validators: "proofing" the "stake"
8. Validators vs Miners
9. Wrap up