frdysk
@frdysk
so normie friends asked again, wtf is crypto, how is value created out of thin air, i almost had a meltdown explaining, i realized idk how to articulate it as well as i'd like to think the questions asked are really basic: what is a token? what is a smart contract? what's the difference between bitcoin and ethereum smart contracts? why are there so many type of blockchains? do blockchains use the same type of tech? why do some institutions favor one over others? if we can create our own tokens, why is not everyone doing it? 🤪
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agusti
@bleu.eth
a token is a smart contract that handles the name or ticker, supply, and holders of such token. when you hold a token on your wallet, you’re actually only holding a private key to a wallet that is linked to the ownershi of such token in their smart contract, which has the value you hold, when you sign another contract or transfer these tokens, you use your private key to tell the smart contract of the token you authorize the transfer.
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agusti
@bleu.eth
a smart contract is a program that lives in the ethereum virtual machine, instead of your computer or a server, the EVM is a network of all the nodes who participate in it, which collectively execute the programs in the smart contracts,as the users interact with them using the network, to verifiy the validity of its results collectively and safely. A transaction is only final in thw network once a majority of nodes have validated it (excuted the program, returned the result)
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agusti
@bleu.eth
there are not so many types of networks/blockchains, most are either PoW or PoS. most arent truly decentralized and only nodes run by its crestors. forking an l2 is free
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frdysk
@frdysk
your explanation is good, but still alot of web3 jargons, trying to explain the mechanics behind PoW was quite bewildering to them
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