Cryptographic knowledge pyramid, to find out what level you are on

2022-05-29 0 By

Pastry, The Bakery’s perspective on personal social media platform is summarized in this article by BlockBeats:Blockchain and the crypto world are made up of a complex knowledge system, which I have divided into five layers of knowledge to uncover the crypto iceberg.1. Blockchain A distributed, decentralized public ledger that exists on a network.Ledger An immutable database used to store network blocks.The first digital currency created by Satoshi Nakamoto.4. Ethereum is a universal platform that aims to go beyond digital currencies through the use of smart contracts and Dapps.5. The public chain adopts an alternative approach to solve the scalability triple dilemma of the one-layer blockchain.6. Meme Coins are derived from Internet memes or cryptographic tokens with other humorous features, such as Dogecoin, Shiba Inu, etc.Level 2: Themes familiar to most crypto natives 1. Smart contract A program that runs when specified conditions are met and is used to automate the execution of an agreement.2. DApps Provides applications that have similar functions to normal applications, but run on a peer-to-peer network.On public chains such as Ethereum, Gas is a measure of the computing power required to perform a particular operation on a network.4. Gas Limit The maximum amount of Gas a user is willing to spend on a particular transaction.5. CEX, as a trusted intermediary exchange for buying and selling cryptographic tokens, is an escrow institution.6. DEX is a decentralized on-chain exchange, which allows users to conduct peer-to-peer transactions directly on the chain and is unmanaged.Consensus mechanism A fault-tolerant mechanism used to force agreement among distributed nodes on a single state of a network.The consensus mechanism ensures that all nodes synchronize with each other and agree on transactions, which are then added to the blockchain.8.PoWProof of work is a type of consensus mechanism that requires network members called “miners” to expend energy solving arbitrary mathematical puzzles to validate transactions and add them to the blockchain.PoSProof of Stake is another consensus mechanism that requires users to pledge tokens in order to become verifiers in the network, who are responsible for the same work as miners in proof-of-work.A data structure in a blockchain that permanently records and stores transaction data on the chain.11. Miners are responsible for adding new transactions or verifying computers or computer sets on blocks produced by other miners.DeFiDecentralized Finance uses smart contract technology on blockchain to provide financial instruments that do not rely on intermediaries such as brokers, exchanges or banks.2. Nftnon-fungible tokens are non-interchangeable units of data stored on the blockchain that can be sold or traded.The types of NFT data units can involve digital file forms such as photos, video, and audio.Metaverse is a complex, large-scale, interoperable network of real-time rendering 3D virtual worlds that allows an unlimited number of users to experience them simultaneously and continuously.The blockchain scalability trilemma proposed by Ethereum founder Vitalik Buterin states that trade-offs between the three attributes of decentralization, security, and scalability are inevitable, and that you can take care of one or two attributes, but not all three.Block difficulty is one of the most important aspects of proof-of-work mining. It is derived from the network hash rate and is used to determine how fast miners can verify blocks.Bitcoin undergoes a “halving” event every four years, which reduces the number of coins entering circulation by halving miners’ rewards, aiming to tighten supply until all 21 million BTCS have been mined.Layer 2 refers to ancillary frameworks or protocols built on top of existing blockchain systems whose primary goal is to address transaction speed and scalability issues faced by the underlying network.Yield FarmingYield Farming is like earning an annual interest rate by keeping money in the bank.In essence, Yield Farming is a process by which liquidity providers lock in their assets in liquidity pools and receive incentives in the form of transaction fees or governance Token emissions.9. AMMAutomated Market Maker is the underlying protocol behind DEX that allows assets to be traded without permission through the use of liquidity pools, rather than a traditional buyer-seller Market.10. Liquidity pools Liquidity pools are crowdfunded Token pools locked into smart contracts to support trading on decentralized exchanges.For example, users using a liquidity pool protocol such as Uniswap do not need buyers and sellers to match orders to complete the transaction.Crypto lending similar to the concept of traditional lending, crypto Token lenders are able to lend their idle assets to borrowers, who in turn pay the lender interest on the assets.12. Synthetic Assets Synthetic assets are essentially tokenized derivatives.In traditional finance, a derivative is a representation of a stock or bond that a trader does not own but wants to buy or sell, while crypto assets allow investors to trade any crypto asset on a blockchain.Crypto indices are ways of accessing a basket of different crypto assets, each of which is made up of a variety of different crypto assets.These indices allow investors to gain exposure to multiple tokens without having to buy them separately.Blockchain prognosticators are entities that connect blockchains to external systems, enabling smart contracts to execute specific code based on real-world inputs and outputs.15. Governance Governance structures upon which decentralized networks rely in the absence of central authority.Blockchain governance usually uses various mechanisms to determine the direction of projects and to make continuous updates to ensure efficient network operation.16. A crypto Token whose price is linked to a crypto Token, fiat currency, or exchange-traded commodity, in which an algorithmic stablesoin aims to achieve price stability and the circulating supply of assets.In other words, algorithmic staboins use algorithms that guarantee the issuance of more tokens when prices rise and the purchase of tokens from the market when prices fall, guaranteeing price stability once.Flash loans are a new type of low-mortgage loan that allows users to get instant encrypted loans without having to post collateral.Crypto arbitrage is a trading strategy in which investors take advantage of slight price differences in digital assets across multiple markets or exchanges to buy the asset on one exchange and immediately sell it on the one where the price is higher.Creator Token allows creators, social influencers, athletes, musicians, and others to launch their own cryptographic tokens to monetize their communities and expand their audiences.The Protocol Owned Liquidity is a new method to provide Liquidity pioneered by Olympus DAO. This Protocol does not rely on providing incentives to Liquidity providers, but sells discounted tokens to buyers in exchange for tokens used as collateral.Form part of the Treasury of the agreement.21. Liquidity Pledge Liquidity pledge allows Token holders to pledge their assets and obtain liquid derivatives that can be used in various DApps.Using a liquidity pledge, ETH 2.0 pledgers can simultaneously pledge their Ethereum while remaining liquid.22. DAO Decentralized Autonomous Organization is an Organization represented by rules encoded by computer programs, which are transparent and controlled by Organization members, not affected by central authority.Interoperability blockchain interoperability refers to the ability to exchange and leverage data between different blockchain networks to move unique types of digital assets between the networks’ respective blockchains.24. The IPFS InterPlanetary File System is a peer-to-peer networking protocol for storing and sharing data in distributed File systems.IPFS uses content addressing to individually identify each file in the global namespace that connects all computing devices.ENS The Ethereum Name Service is a domain Name lookup Service built on Ethereum that allows encrypted users to convert their machine-readable addresses into readable ones. You can think of it as a nickname generator for public Ethereum addresses.1. The EVMEthereum Virtual Machine is a software platform that developers can use to create DApps on Ethereum. It is where all Ethereum accounts, smart contracts, and ethereum’s entire state history are located.In blockchain terminology, a Mempool is the waiting area for transactions that have not yet been added to a block and are not yet confirmed.Frontrunners are robots on Ethereum that constantly scan pools of memory in search of lucrative transactions.The frontrunner participates in a preferred gas auction (PGA) with other robots to get priority on their transactions in a block.In blockchain, Byzantine fault tolerance, derived from the Byzantine General problem, refers to the network’s fault tolerance in the event of failure and inconsistent operation of verified nodes.Sybil attacks are attacks on computers in which an attacker compromises a server’s credibility system by creating a large number of pseudonyms and using them to gain a disproportionate amount of online influence.6. Sha-265sha-256 indicates the 256-bit secure hash algorithm to improve encryption security.Cryptographic hashing algorithms produce irreversible and unique hashes, and the greater the number of possible hashes, the less chance that two values will create the same hash.7. Full nodes Full nodes are the nodes that download and check if every transaction in the blockchain is valid. This requires a lot of resources and hundreds of GB of disk space, but they are the most secure nodes because they cannot be easily fooled by invalid transaction blocks.8. Light client If the computer does not have enough resources to run the full node, it can run light client.Light clients do not download or validate any transactions, they only validate block headers and assume that the block contains only valid transaction records.Metcalfe’s Law states that the value of a network is proportional to the square of the number of nodes in it.If a network has 10 nodes, its value is: 10×10=100.10. Lindy Effect The Lindy effect is a theoretical phenomenon whereby the future life expectancy of something that is not easily broken (such as technology or age) is proportional to its current age.A side chain is a separate blockchain that is connected to its parent chain using a two-way hook.Bidirectional hooks enable asset swaps between parent and side chains at a predetermined rate.12. PlasmaPlasma is the Ethereum Layer 2 extensibility solution, a framework that allows the creation of “child” blockchains using the Ethereum main network as a trust and arbitration Layer.13. Optimistic RollupsOptimistic Rollups uses smart contracts to relay transaction data from the Ethereum main network to the Layer 2 network, where a collator can bundle multiple transaction records into a batch and then submit that batch back to the main network chain through a single transaction.In cryptography, zero-knowledge proof allows one party to prove to another that a given statement is true without the prover conveying any information other than the fact that the statement is indeed true.15. ZK RollupsZero-knowledge Rollups is another Ethereum capacity expansion solution that takes transaction records out of the Main Ethereum network.ZK Rollups generates encrypted proof of transaction validity. Each batch of transaction records contains its own proof of validity and submits it to the main network.16.KeepersKeepers are accounts owned outside of a class of protocol and are motivated to perform specific actions within the DeFi protocol.Keepers are rewarded in the form of a fixed fee or a fixed percentage of incentives, such as charging a fee to settle a mortgage debt.Beacon Chain is an upgraded version of Ethereum that will eventually replace the traditional Ethereum blockchain currently in use.The purpose is to introduce the new PoS consensus mechanism and coordinate the expanded sharding and pledger network.Merge merge is what happens when the Ethereum main network running on PoW is integrated with the Beacon chain as a PoS chain.1. Maximal Extractable Value is the miners’ ability to earn profits by including, excluding or reordering any transaction they want in the blocks they produce.Sharding refers to dividing the entire Ethereum network into multiple parts, so it is called sharding.Each shard will contain its own independent state, greatly reducing network congestion and increasing Ethereum’s transaction throughput.The Data Availability Proofs, which allow users to check with a very high probability that all the Data in the block has been published, are available by downloading only a small part of the block.A Merkle tree is a fundamental part of blockchain technology. It is a mathematical data structure consisting of hashes of different blocks of data that act as a summary of all transactions within a block.The original link