Introduction to web3

1. Intro To Web3
@harpaljadeja11

2. Agenda
Characterisitcs of Web3
What is Blockchain?
How to get started?
Sectors (DeFi, NFTs, DAOs)
Some Noteworthy DApps.
Web3 Tech Stack
Next Frontier
@harpaljadeja11

3. Characteristics of Web3
De-centralization
Trust-less
Permission-less
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4. Decentralization
Decentralization is not same as Distributed.
Network of Participants working towards providing service.
Network is operated by Consensys algorithm (PoW, PoS).
Extreme Fault tolerance.
Availibility of the network increases as Participants increase.
@harpaljadeja11

5. Trust-less
"Humans are not trust-worthy"
We may not trust the engineers but we can trust their code.
Code and the transactions on the blockchain are immutable and
irreversible.
Assuming you know how code works and there is no security vulnerability your funds won't be
compromised.
@harpaljadeja11

6. Permissionless
Neither the participants nor the users of the network need
permissions from any central authority or organization.
Anyone can deploy any amount of DApps on any blockchain (except
Bitcoin).
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7. What is Blockchain?

8. What is Blockchain?
A chain of blocks. In technical terms, public distributed ledger.
Blocks contains transactions which are mined by miners in case of
PoW.
Blocks are produced by a randomly selected validator and the other
participants attest it in PoS.
Proof - of - Work (PoW)
Proof - of - Stake (PoS)

9. Why was Bitcoin created?
Remove third-party intermediaries involved in digital monetary
transfers.
The cost incurred can be significant and can be a reason to restrict
transaction below a certain size.
Created right after the financial crisis of 2008.
Often considered as Hedge towards Inflation.
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10. Why was Ethereum created?
Ethereum is a Programmable blockchain.
Making it possible to build apps that leverage blockchain
technology.
Transactions on ethereum are not just value transfer (like bitcoin)
but can also be code execution.
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11. How to get started?
Wallet Fund it
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12. Sectors
DeFi NFT DAOs
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14. Uniswap
Uniswap was one of the early DeFi Protocols.
Uniswap is an AMM (Automated Market Maker).
Unlike traditional exchanges with order books.
Uniswap uses pools which holds both tokens of the pair.
Instead of order matching it simply lets you swap tokens and
depending on the ratio of token reserve in the pool the price of the
assets fluctuate.
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15. Uniswap
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16. Uniswap
Anybody can create pools for any token pair.
Contracts are non-upgradable and forever persistent (until ethereum
exists).
Users can also provide liquidity to the pools in exchange to earn
fees for the trades in that particular pair.
v1 only lets you have ERC20-ETH pairs, v2 allowed ERC20-ERC20
pairs.
@harpaljadeja11

17. Uniswap
Uniswap v3 lets one provide liquidity in a price
range, so you only get fees when trades are
made in that price range.
Uniswap now operates as a DAO and hence the
governance token holders get to vote and
propose new changes.
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18. @harpaljadeja11

19. Compound
Compound is a lending and borrowing protocol.
You can lend / lock your assets with Compound and earn interest on
it. (just like savings account)
You can also borrow assets against your lended assets. However,
compound has collateralization ratios which decide how much you
can borrow against your assets.
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20. Compound
If the deposit value reaches the borrowed value then liquidation
takes place.
Compound rewards cTokens to its
users every 15 seconds.
This rewards is proportional to the
interest you are earning / paying.
Credit:- Gemini
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21. Compound
Compound's cToken is the governance token.
User holding the cToken have a say in the governance of the
protocol.
Compound governance works on 3-day voting period. So the users
get 2 days to close any open positions before the change is
implemented.
All this is on-chain and decentralized.
@harpaljadeja11

23. Aave
Aave is also a lending and borrowing protocol.
Borrowing against Aave token has discounts.
Aave was the first protocol to introduce "Flash Loans".
Flash loans lets you borrow assets without Collateral.
Flash loans take advantage of the nature of transactions.
Flash loans are borrowed and settled in the same transaction along
with 0.09% fee.
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24. Aave
The flash loans can be used for arbitrage purposes.
Aave has pool-to-peer lending borrowing which means are assets
are accumulated in a pool.
Lenders get respective aTokens for lending (aUSDT for USDT etc...)
These tokens represent your position, however you can also use those
tokens for are other DeFi purposes.
Hence, not only you are earning interest but you also have liquidity.
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26. Alchemix
Alchemix gives you self-repaying loans 🤯.
Alchemix lets you take 50% loan on your collateral.
Borrowing from yourselves.
Alchemix rather than charging interest on your loan uses your
collateral to earn interest and pay back your loan using that
interest.
@harpaljadeja11

27. Alchemix
Alchemix takes your collateral and uses Yearn Finance vaults to earn
interest on your collateral and pay back your loan.
At the time of making this slide Alchemix has $673.1M locked.
https://every.to/almanack/alchemix-self-paying-loans
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29. 1Inch
1inch is a DEX aggregator that picks and chooses the cheapest crypto
prices across decentralized exchanges.
1inch tries to get you the tokens for the best rate.
It was one of the first to offer limit orders on-chain.
Supports 5 networks and has 81 liquidity sources.
@harpaljadeja11

30. Noteworthy Mentions
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31. NFTs

33. Opensea
OpenSea is a decentralized non-fungible token (NFT) marketplace
for buying, selling, and trading NFTs.
Some big-name players like Mark Cuban, Gary Vaynerchuk, and
Chamath Palihapitiya have recently expressed interest in the space.
Opensea is also the google for NFTs.
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34. Opensea
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35. Opensea
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36. Opensea
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38. Ethereum Name Service
Ethereum Name service lets you have human-readable names as
wallet addresses.
17.254.0.91 apple.com
142.250.185.174 google.com
Similarly,
0xd8dA6...aA96045 vitalik.eth
@harpaljadeja11

39. Ethereum Name Service
Operated as a DAO. Resides as an NFT in your wallet.
ENS domains do get expired just like normal domains.

40. Ethereum Name Service

41. Web3 Tech Stack
How to build your own DApps?

42. Web3 Tech Stack
Decide your blockchain.
Solidity, Vyper Rust
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43. Web3 Tech Stack
Storage
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44. Web3 Tech Stack
RPC Providers and Indexing
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45. Web3 Tech Stack
Frontend
ethers.js web3.js
web3modal
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46. Web3 Tech Stack
Developer Tools (Testing & Deployment)
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47. Web3 Tech Stack
Off-Chain Computation & Data
@harpaljadeja11
Chainlink VRF, Chainlink Keepers, Chainlink External Adapters, and
Chainlink CCIP.

48. Next Frontier
What's Next?

49. Centrifuge is working on bringing real world assets into DeFi.
Assets like Invoices, Real Estate and royalties.
Investors invest to get stable returns and Asset originators get to
finance their assets.
Fractionalized Real Estate by Labs Group lets anyone invest as little
as $100 in any property listed on their platform.
Real World DeFi
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50. Decentraland and Sandbox are the major players.
Opportunity for VR Developers, Game developers, and 3d Modellers.
Facebook changed their company name to Meta.
Social interactions, Education, Research, Entertainment and Events
pretty much everything will happen in the Metaverse.
Metaverse
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51. Metaverse
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52. Metaverse

53. zk (Zero-Knowledge Proofs)
Current implementations of blockchain are not private in any sense.
A zero-knowledge proof or zero-knowledge protocol is a method by
which one party (the prover) can prove to another party (the verifier)
that a given statement is true while the prover avoids conveying any
additional information apart from the fact that the statement is
indeed true.
@harpaljadeja11

54. zk (Zero-Knowledge Proofs)
Proving someone that you have the information without revealing
the information.
Interactive zK

55. ING bank uses zK that allows its users to prove that their secret
number (salary) lies within in a known range using which a user can
prove its eligibility for a loan.
zK can be used for Login.
ZCash is a zk-SNARK based blockchain.
Researchers and Machine learning engineers can convince others the
results of their models without revealing the underlying work.
zk (Zero-Knowledge Proofs)
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56. Questions?
@harpaljadeja11 - twitter

57. Thank You!