In the previous episode, we explained the world surrounding crypto and how it has existed and advanced to become web3.

Now, we would discuss the direct link between crypto and web3.

Web3 as we stated earlier, is the new kind of internet service built on a decentralised system. Two significant web3 features are freedom (every user can own their data) and decentralisation (no major source).

Virtual exchange of data, which is peer-to-peer (no middleman needed), makes it impossible for the system to crash or get hacked.

For instance, Instagram is a web2 tool, it serves as the middleman between users. inarguably, Instagram has once crashed and the server can crash again at any time, therefore when this happens, there will be no user access to the software and relevant data could be lost.

Unlike web2, web3 does not operate on this system, instead, it is built on a decentralised or peer-peer blockchain.

Moreover, this is the perfect description of Cryptocurrency, it is decentralised, free and universal

What is cryptocurrency?

Cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.

First, cryptocurrency is a digital currency. With crypto, transactions can only be made over the internet.

Next is the digital exchange, you can make transactions directly without any bank influence or government bodies. Remember, crypto is built on the blockchain structure.

Transactions can be made with anyone, to anyone, anywhere!

To speak in the language of crypto, you should know these words:

1. Blockchain: A blockchain is a digital record of transactions that is duplicated and distributed across the entire network of computer systems. Crypto is built on the blockchain structure.

Blockchains are decentralised, fixed and open.

For anyone to transact on the blockchain system, you have to own a crypto wallet. Crypto wallets is an application that permits cryptocurrency users to store and redeem their digital assets through two significant keys: a public and a private key

Public key; a link that lets you make transactions by sending and receiving tokens.

In the literal sense, this can be your bank account number

Private key; your identity that proves that you own your assets. A 12-24 seed phrase that shouldn't be shared with anyone.

In the literal sense, this can mean your BVN or perhaps, your password

1. Tokens: the digital record of ownership of an asset. In other words, tokens are digital assets. Tokens can be fungible or non-fungible. A fungible token can be exchangeable, divisible, and a payment method just like cryptocurrency (Bitcoin: BTC). Non-fungible tokens are unique, indivisible, irreplaceable, non-replicable and intellectual property, just like LEONARDO DA VINCI’S special drawing of MONALISA. This is an NFT because it can’t be divided, it's unique and cannot be copied.

2. Bitcoin: BTC is a peer-peer electronic cash system. It is arguably the most secure and decentralised of all cryptocurrencies.

More information on BTC will be shared in the next post.