Rick and Morty, Aave's decentralized social media, and the 3-S's of crypto!
Today, we’ll ELI5 you the 3-S's of crypto...
But first, an exciting update:
We’re hosting a series of Twitter spaces events with various DeFi personalities this month.
Our guest this week is @rektfoodfarmer — who has been a crypto trader and investor since early 2017. He was also recently mentioned on our Top Emerging DeFi Voices in 2022 list!
Catch him on @brew_defi talking about his journey from being a Crypto Trader to becoming a DeFi Degen on 22nd May, 10 AM CST!
(Don’t forget to turn on the reminder!🚀)
Want to do a Twitter Spaces event with us? Just ping us on our Twitter Handle.
Now, to business.
101 today:
A topic we explain —
The 3-S’s of Crypto.
Major happenings in the ecosystem —
Rick & Morty and the last social media handle we’re being asked to create.
A Goldmine of a Twitter thread that sums it all up —
56 pages long '2022 State of Crypto Report' released by a16z summarised in 10 tweets.
Earn up to 10% APY on blue-chip DeFi protocols with Brew Money.
Join the waitlist now.
Questions? Email us.
One Topic: The 3-S’s of Crypto
Today, we’ll ELI5 you the 3-S’s of crypto.
Staking, Sharding, and Scaling.
Let’s go.
STAKING:
Simply put, staking is a way for blockchains to validate their transactions while simultaneously incentivizing their users and validators to earn interest on their cryptocurrencies. It is how new transactions are added on a blockchain.
Users can earn staking rewards by becoming a validator or a delegator.
A validator is someone who is assigned the duty to verify whether or not transactions are legal and accurate. Forcing validators to purchase and lock away a certain amount of their tokens makes it unappealing for them to act dishonestly in the network. If the blockchain gets corrupted through malicious activity, the native token associated with it would likely plummet in price, and the perpetrator(s) would stand to lose money.
A delegator is someone who chooses to place their stake in a validator's staking pool and earn rewards or interest via that.
💡One can become a validator on Ethereum if they pledge 32 ETH to the protocol.
Recommendations:
SHARDING:
Blockchain Trilemma, as hypothesized by Vitalik Buterin, means that developers have to make trade-offs between decentralization, scalability, and security – without being able to deliver all three at the same time.
For example, the current Ethereum network can only support around 30 transactions per second, and this causes delays and congestion. Ethereum 2.0's second upgrade, the merge, promises up to 100,000 transactions per second.
To solve its scaling issues, Ethereum proposed Sharding. Sharding is commonly used in databases to split data into chunks to spread it and load. In Ethereum, its goal will be to improve scalability, reduce congestion on the network, and allow more transactions per second to be executed.
This method is needed to scale Ethereum in a decentralized manner, as an alternative would be to increase the size of the already existing chain, resulting in even more powerful computers being needed to process the network.
More resources to understand Sharding in Blockchain:
SCALING:
We all understand the term ‘scalability’ on some levels. In layman's terms, scalability refers to the ability of software to maintain its performance if the quantity of users suddenly increases.
But what does scalability mean in Crypto?
Scalability in crypto is the ability of a blockchain to cope with the influx of a large number of transactions at a time. For example, Bitcoin operates smoothly at seven transactions per second. If there are more than seven transfers per second, then all transactions wait in a queue. This means bitcoin is not scalable in terms of TPS.
Read more about it here.
📰 In other news:
🎉 We have our Very First Blockchain Animated Series!
Rick and Morty's director Dan Harmon is working on a new animated comedy series called Krapopolis, which will be curated entirely on a blockchain. Fox has announced debuting a new NFT company called Blockchain Creative Labs for this venture. In addition, Fox will also launch a dedicated marketplace for Krapopolis "that will curate and sell digital goods, ranging from NFTs of one-of-a-kind character and background art and GIFs, as well as tokens that provide exclusive social experiences to engage and reward superfans."
It may be a sight to behold, watching an animated series hosted on a blockchain!
🎉Aave just launched a web3 version of social media - LENS
Aave, a leading lending protocol, just released Lens - a decentralized social graph that allows developers to build web3 social media platforms all run on the Polygon network. Using Lens, users can mint a profile, follow others, and create and collect posts all on-chain.
Lens is currently offering $250,000 in grants to developers to build new apps on Lens; potential ideas range from a curation app to a gaming app. Read more about it here.
One Tweet:
56 pages long '2022 State of Crypto Report' released by a16z summarised in 10 tweets:
A bonus one just for laughs:
That’s it for today, folks. 🪄
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