Basics of Blockchain, Cryptocurrency, Defi, NFT, CBDC (Part 1) with Gary Melnyk

Find Gary here https://www.linkedin.com/in/gary-melnyk-aa79502/

Gary and I discuss the basic of Basics of Blockchain, Cryptocurrency, Defi, NFT, and CBDC. Well, it's basic for him, not for me. We cover some of the following in this first part of many of these topics:

Blockchain

• Distributed ledger technology
• Trust, proof of ownership, elimination of trusted third parties, i.e., land registry office, banks, securities clearing houses
• Transfer value as quickly as transferring data
• Databases with No centralized point of data storage, decentralization.
• Ledgers are maintained by all miners/validators on the network
• Every transaction is confirmed by miners/validators either via POW or POS (there are other validation methods)
• Once validated, the transactions are placed in a block, and the block is closed. Validation is done via cryptography, hash, nonces,
• Very difficult (impossible) to change a transaction once validated as all subsequent blocks would need to change as well)
• Solves the double spend problem (easy to copy/duplicate data)
• The next evolution of the internet web3(read/write/own/execute) vs web2(read/write)
• It can be public (bitcoin, Ethereum, Ripple) or private (Hyperledger), or private on top of a public chain (Ethereum enterprise)
• Public blockchains are permissionless. This means that anyone is free to join and participate in the core activities of the network. All users have equal rights to view and verify the ongoing activities of the Blockchain. This is what provides a public blockchain with its self-governed nature.
• Private blockchains These are like public blockchains, only they are managed by one central authority. This authority decides who is allowed to participate in the network, verify transactions and maintain the shared ledger. Therefore, these networks are only partially decentralized as public access to these blockchains is restricted.
• Supply chain management is an excellent example of a private blockchain.
• For example, in the metals industry, Blockchain can be used at every step, from exploration to mining, extraction of the minerals, transport, smelting, fabrication, to delivery to the end customer. And all required inputs from ancillary services, such as transport and brokering. Clearing customs and all the necessary payments.
• Smart contracts
• Immediate settlement

Cryptocurrency

• It's the fuel that runs the Blockchain; validators are paid in cryptocurrency, and transactions are charged fees to transact on the chain.
• There are approximately 10,000 cryptocurrencies.
• Different chains do other things, solve real-world problems such as cross-border payments, and provide a platform to build applications on, such as Defi, NFT issuance, and potentially CBDC.
• Bitcoin is a store of the value proposition; it's not a smart contract chain; its worth is what someone else is willing to pay. Settled 13 trillion in a transaction in the last year, more than visa
• Ethereum is a smart contract chain that allows the construction of issuance of new tokens, DAO, Defi, and NFTs, settled 6 trillion in transactions. Eth's price is 12.5 times less than Bitcoin's. Other chains include Cardano, Solana,
• XRP, developed by Ripple Corp, aims to replace the swift banking system for international money transfers and trade finance solutions, allowing FIs to repatriate capital tied up in

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