Learning something new is always exciting. That initial burst of curiosity creates an environment for consuming everything and anything related to what you’re learning.
How we learn depends on the individual but if there is one thing that we can agree upon it’s that one of the best ways to learn something is to get your feet wet. Meaning instead of reading and researching you take action and dive right in. There is no current industry where I see the benefits of “getting your feet wet” more than in crypto. The scale of information grows everyday and the best way to learn is to take part. Rather than apply this to the entire crypto industry I want to focus on what has been coined web3.
Web 3 is an industry buzzword used to describe a potential new version of the internet. There was web 1.0 - Read only. Then web 2.0 - Read and write, the current internet as we know it. Now with the advent of blockchain technology we have web 3.0 - An internet with an added layer of ownership. For more on web 3.0 - Web 3.0 > Web 2.0?
With new technology there are always pioneers, the ones who took the chance on a misunderstood idea. As a new technology Web3 needs pioneers, people willing to dabble, test, break and figure things out. The scope of Web3 makes it simple for people to get involved by taking applications that we already know and use such as online shopping, banking, social media and giving the power of that data back to the users.
Before getting your feet wet and to get a better understanding of how web3 works here is a breakdown of its key components.
Digital Assets
Digital assets are native to the web3 space. They can be any form of digital content such as mp3s, documents, images as well as representations of currencies such as Bitcoin and Ethereum.
Wallet
As the word implies a wallet is where you store your valuables. In web3 it is a digital equivalent. You store digital assets in a wallet to which only you have access. This comes in many forms such as desktop applications, mobile apps, browser extensions and hardware devices.
Address
Each wallet will have an address known as a key. A specific pointer that leads to your wallet. With an address you are able to send and receive digital assets. Keys come in pairs known as public and private. Your public key is for everyone to see in order to send and receive assets but your private key must remain secret, if someone has access to your private key they have access to your wallet. Private keys come in the form of mnemonic phrases, 256 digit code and QR code. Other than when you are creating or retrieving a wallet there is no reason to display this key. Keep it private!
Transactions
Web3 uses blockchain technology to allow transfers of digital assets between parties. No middleman, no permission. Transfers are done in a transparent and verifiable manner where both receiver and sender are able to confirm transactions on a public database known as a ledger.
Dapps
Dapps, dApps, DAPPs. However you want to spell it are the culmination of all the previous components. Dapps are the applications that communicate to the blockchain on your behalf by creating a user-interface to transact.
Dapps have their infrastructure code running on a decentralized network that once written cannot be altered. Anyone can use dapps free of permission and censorship while remaining anonymous. With virtually no downtime dapps run forever as long as the network remains viable.
Looking to get your feet wet now? Great! Here are a few tools and resources to help you get started.
RabbitHole - rabbithole.gg
- Complete web3 related tasks, learn new skills and earn digital credentials
- Teaches you how to navigate the world of web3 by walking you through common tasks like staking, lending and buying NFTs.
OdysseyDAO - odysseydao.com
- A great selection of “How to” articles on everything web3 related
Useweb3 - useweb3.xyz
- Explore, Learn, Build
- Extensive list of guides from beginner to master. Whether you just want to learn the basics or become a web3 developer the resources are here.
More Resources
As a first time user I would follow some of the guides above and get an idea of how the ecosystem works. After that I would try it on my own. A sample “get your feet wet” guide can teach you the basics of web3 fairly quickly.
Note as with anything you don’t fully understand never put in more than you’re willing to lose. That said web3 runs on tokens/coins and many have monetary value in order to prevent spamming and to keep the networks functioning. With new technologies come bugs, bugs that can potentially cost you your digital assets and IRL money. Never share your passphrase or credentials without verifying the source.
Sample guide:
- Download browser extension MetaMask
- Create an account and follow instructions
- Purchase Ethereum through any of their methods
- You now have digital assets in a wallet that only you have access to.
- From here you could use an exchange like Uniswap to swap your Ethereum for another token or purchase an NFT through a platform such as OpenSea.
Innovative technologies have a way of driving adoption through usability and when it comes to web3 and crypto there is still a lot to be learned. This lack of understanding is holding back a majority of people from participating but as pioneers like yourself continue to dabble in the space, developers and businesses will continue to create more user friendly experiences to the point where I believe you won’t even notice you are using web3 or blockchain technology. Web3 needs dabblers now more than ever. How will you participate?
Of course none of this is financial advice and I am just giving my humble opinion of what I have learned. Do with this advice what you will.
If you got something out of this and want to learn more about cryptocurrency, web3 & finance:
Follow me @jamiesventures for more articles like this. Thanks for reading!