I'm very excited🥳to write about the first session of #BRBBootcamp! Recently, I became part of an amazing web3 bootcamp, known as BRB Bootcamp.

Want to know more about this boot camp? Check out this⤵️

The first session is about understanding web3 fundamentals. After the smooth onboarding and introductory details by the amazing moderator Pranshu Rastogi (Head of Ecosystem & Integration, Push Protocol), the session was taken by Aman Gupta.

The session covered most of the crucial basic concepts of web3. I have prepared some separate entries explaining some important concepts such as:

Introduction to Web3:

Basics of Blockchain Technology:

Consensus Mechanism:

Tokenomics Basics:

👉 Let’s Explore some web3 applications:

📍 DApps (Decentralized Applications):

A dapp or decentralized application has its backend code running on a decentralized peer-to-peer network. This contrasts with a traditional app, where the backend code is running on centralized servers. Dapps offers increased security, transparency, and resistance to censorship.

📍 DAOs (Decentralized Autonomous Organizations):

Definition: A DAO is a collectively-owned organization operating without a centralized leadership, governed entirely by its members.

• 🟠 Key Features:

  • No Central Authority: No CEO or CFO.

  • Operations and Funds: Managed through pre-defined rules on a blockchain.

  • Built-in Treasuries: Accessible only via group approval.

Need for DAOs:

• Trust Issues in Traditional Collaborations: Challenges of trusting people in internet-based collaborations.

• Code-based Trust: Operations are transparent and verifiable.

• Governance: Voting and proposals mechanisms for decision-making.

📍 DeFi (Decentralized Finance):

Decentralized Finance, commonly known as DeFi, refers to a new financial system built on blockchain technology that aims to disrupt traditional financial systems. It leverages smart contracts and decentralized applications (DApps) to provide financial services without intermediaries such as banks, brokers, or exchanges. DeFi platforms are primarily built on Ethereum, the leading blockchain for smart contracts, but are also expanding to other blockchains like Binance Smart Chain, Solana, and Polkadot.

🟦 Key components of DeFi include:

• 🟠 Smart Contracts: Self-executing contracts with the terms of the agreement directly written into code.

• 🟠 Decentralized Applications (DApps): Applications that run on a blockchain network instead of centralized servers.

• 🟠 Stablecoins: Cryptocurrencies designed to minimize price volatility by pegging their value to a stable asset, like the US dollar.

• 🟠 Decentralized Exchanges (DEXs): Platforms that facilitate peer-to-peer trading of cryptocurrencies without a central authority.

• 🟠 Yield Farming and Staking: Methods of earning rewards through providing liquidity or holding tokens in a network.

🟦 Importance of DeFi:

DeFi is revolutionizing the financial sector by providing a range of benefits over traditional financial systems:

1. Financial Inclusion:

   • Accessibility: DeFi services are accessible to anyone with an internet connection, regardless of their geographical location or socio-economic status.

   • Unbanked Populations: DeFi can provide financial services to billions of people worldwide who are unbanked or underbanked, offering them opportunities for saving, borrowing, and investing.

2. Transparency and Trust:

   • Open Source: DeFi protocols are typically open source, meaning their code is publicly accessible, allowing anyone to inspect, verify, and audit it.

   • Immutable Ledgers: Transactions on a blockchain are immutable and transparent, reducing the risk of fraud and ensuring accountability.

3. Control and Ownership:

   • Self-Custody: Users retain control of their assets without relying on intermediaries, reducing the risk of losing funds to a failing institution or mismanagement.

   • Permissionless: DeFi platforms operate without the need for authorization from central authorities, allowing for greater freedom in financial activities.

4. Innovation and Efficiency:

   • Interoperability: DeFi protocols can interact with each other seamlessly, creating a composable and interconnected financial ecosystem.

   • Programmability: Smart contracts enable the creation of complex financial instruments and automated processes, reducing the need for manual intervention and increasing efficiency.

5. Cost-Effectiveness:

   • Lower Fees: DeFi eliminates many intermediaries, reducing the fees associated with financial transactions and services.

   • Faster Transactions: Blockchain technology enables near-instantaneous transactions, compared to the lengthy processing times in traditional banking.

6. Investment Opportunities:

   • High Yields: DeFi offers various ways to earn returns, such as yield farming, staking, and lending, often providing higher yields than traditional savings accounts.

   • Diverse Products: Users can access a wide range of financial products, including synthetic assets, prediction markets, and decentralized insurance.

DeFi represents a transformative shift in the financial landscape, offering increased accessibility, transparency, and efficiency. However, users need to understand the associated risks and stay informed as the space continues to evolve.

🔏Note: I’m going to share my entire #BRBBootcamp learning journey through mirror. Subscribe🔔 to read it first!