Choose Your Subject (Ethereum, NFTs, DAOs, DeFi, Wallets, Ecosystem, Terms, Guides)
-- on subject choice, subsection infromation appears -- info for each section follows and should be pressented as Question Answer where Questions allways show with either a p[lus or minus next to them. When the plus is clicked the Answer is shown, when the minus is clicked the answer unhides: Each subject should be shown with an icon and full text name.
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ETHEREUM ESSENTIALS
• What is Ethereum? Ethereum is an online public ledger. Using the new technology of the blockchain, Ethereum allows users to create smart contracts allowing for decentralised applications (Dapps) to be created. Ethereum improves on the restrictive code of Bitcoin which grants developers much more freedom in creating new applications and protocols.
• Why is it important? Decentralization is important. So too is being in charge of your finances. The peer-to-peer finance system of the blockchain is one of the significant milestones in mankind. It allows a person to be in charge of their own finance on the chain. Ethereum allows the introduction of Dapps which are improvements to every application within web2 (such as facebook and Instagram) where those applications are owned by big corporations no one single entity will own Ethereum. That combined with the open-source nature means no one is trying to steal your data.
• What are Smart Contracts? The simple way to understand smart contracts is they are code that acts as binding contract that is embedded into the application. Smart contracts are used within Dapps for purchasing agreements without the need for a third party.
• What are Decentralized Apps (Dapps)? Applications that are decentralized and created for the blockchain. Dapps are created as open-source applications where the code can be found and improved on by anyone in the world.
• What is Ether. Ether is the native token of Ethereum. When you buy Ethereum on an exchange you will receive its native token of Ether.
• What are Gas Fees? Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. "Gas limit" refers to the maximum amount of gas (or energy) that you're willing to spend on a particular transaction.
• What is Layer-1? A layer-1 (L1) network is the name ofr the base blockchain. Ethereum (ETH) and Bitcoin (BTC) are layer-1 protocols. They are both considered the main networks in their respective ecosystem.
• What is Layer 2? A layer-2 (L2) network is a term to provide Ethereum scaling solutions. A layer 2 is a separate blockchain that extends Ethereum while keeping the security guarantees. For more information on Ethereum layer-1 and Layer-2 please visit the Ethereum foundation webpage https://ethereum.org/en/layer-2/
• What is the Ethereum merge? The merge represents the joining of the Ethereum Mainnet (what we use at present) with its proof-of-stake Beacon Chain. This changes the consensus of Proof-of-work to a Proof-of-Stake model that scales, is more secure and provides far greater sustainability. For more information on the Ethereum merge please visit the Ethereum Foundation webpage https://ethereum.org/en/upgrades/merge/
NON-FUNGIBLE TOKENS (NFTS)
• What is a Non-Fungible Token (NFT)? A NFT is the authenticity ownership of a digital product. The blockchain allows users to own a digital asset that is searchable by a public ledger. This means if someone owns a NFT you can look up on the internet who owns it.
• Why is digital ownership important? The introduction of the Blockchain has allowed digital products to be owned as NFTs on-chain. Never before has it been possible to own a digital asset as a store of value or financial return on profit. As NFTs technology matures there will be endless use cases besides artwork in the form of ticketing, vouchers, medical data and more.
• What are digital NFT collectables? Just like physical collectables, NFTs can also be a way for consumers to purchase digital, intangible products such as artwork and media on the blockchain. Some examples include generative art of Crypto Punks and the Bored Ape Yacht Club (BAYC). The Ethereum Name Service (ENS) and Media such as Books, music and films that have are enclosed within the NFT.
• What makes NFTs valuable? NFTs provide digital scarcity on the blockchain that is secure. NFTs cannot be copied on chain, ownership is tied to the existing account and can be looked up like a public ledger at any time.
• Who buys NFTs? In time NFT adoption will lead to the technology being used in ticketing, vouchers, gaming, films, music and books. At present, Crypto native customers with a love of the blockchain are experimenting, creating some great projects (and some out right scams). Its the wild wild west or digital gold rush.
• What are the Statistics on NFTs? NFT sales in 2021 skyrocketed to XXX with it being projected to hit XXX in 2022. Opensea the largest marketplace for digital assets is a billion-dollar company.
• Why are NFTs being labelled as Ponzi schemes? The sad reality of the Crypto space and due to its volatile nature of quick gains means many attempts to scam new entrants into the marketplace. It’s unfortunate as while some NFT use Ponzinomics its not a definition of all projects within the space.
• What is exit liquidity? When a project is hyped, new entrants buy into the token or NFT. The founders then use the sustainable hype to sell their assets thus exiting their liquidity on new customers.
• What is Minting? Minting is the process of being the first person to purchase an NFT from a smart contract listed on the Blockchain. Hence a person has been the first to “Mint” an NFT.
• Where are the NFT marketplaces? The most common NFT marketplace is Opensea . Opensea has a great easy to use interface and also provides custom made smart contracts for artists. Other Market places include SuperRare, Rarable, LooksRare, Gem and Immutable X.
• What are secondary sales? After a NFT has been minted out, as in a collection has been exhausted. The only way consumers can purchase the NFT is on secondary marketplaces. The current most commondly used marketplace is Opensea.
• Can I make an NFT? There are two ways to make a NFT. The first is by smart contract deployment on a website. This generally requires a website creation and a smart contract to be created for the project. Nova can provide newcomers with developers by emailing/contact via XXX.
The second way to create a NFT is to go through the custom contract on NFT marketplaces. Opensea has an easy to follow guide, process for creating new artworks as NFTs.
Decentralized Autonomous Organisations (DAO)
• What are DAOs? A decentralised Autonomous organisation (DAO) is an organisation where the rules are encoded as a computer program that is controlled by organisation members which are not centralized by governess. This means there is no top-down hierarchy, no CEO to make decisions. A core team exists to guide the project but the governess is made by holders who have voting rights on the treasury.
• What makes DAOs unique? A DAO is unique as it is not controlled by a centralized hierarchy system. DAOs are entirely decentralized from modern companies and instead the power is in the holders who have governing rights over the funds of the organisation, on the decision making decisions and proposals put forward are entirely made by holders of the DAO.
• How can DAOs operate? DAOs are new ecosystems that are rapidly evolving entities. DAOs put forward proposals that are generally made by a core team. Members of the DAO then vote on these proposals which can range from where to place digital assets, to buy new assets for the treasury or where to put funds, allocate and invest in.
• How can I create a DAO? A DAO can be created with four easy steps
Configure settings, vote duration and percentage support for DAO launch
Create social media for the virtual community with Discord (and Twitter)
• What are the benefits of DAOs? DAOs provide a number of benefits in the form of decentralized governance, membership, share-based membership and reputation-based memberships. For more information on DAOs please visit the Ethereum foundation website on DAOs. https://ethereum.org/en/dao/
Decentralized Finance (DeFi)
• What is Defi? Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.
• How can DeFi assist me? It eliminates the fees that banks and other financial companies charge for using their services. You hold your money in a secure digital wallet instead of keeping it in a bank. Anyone with an internet connection can use it without needing approval. You can transfer funds in seconds and minutes
• What are some Defi protocols I can look into?
• Other sources. The Ethereum foundation has a great insight into Defi with DAPPS and documents on understanding decentralised finance -https://ethereum.org/en/developers/docs/dapps/
DIGITAL WALLETS
• What is a digital wallet? A digital wallet is an application that is made possible by the Blockchain and one that keeps a user’s funds (tokens and NFT assets) in an encrypted wallet (such as coin spot or metamask) wallet.
• Coinspot Wallet: A coin spot wallet can easily be made via their website. Coinspot is the most easy-to-access digital wallet that is centralized.
• Metamask Wallet: Metamask is the Ethereum native wallet that is decentralized. Please refer to the guide on how to set up a metamask wallet. This is also known as a hot wallet that is always connected to the internet and cryptocurrency network.
• Hardware Wallet (Ledger Nano X): The hardware wallet is linked to a USB Dongle as further security as funds are placed on the USB device. This is also known as a cold wallet as its not connected to the internet.
• Seed Phase: The seed phase is a 16 word security code that enables users to encrypt their funds without another person having access to it. If a person loses their 16 word security code then there is no way to access the funds.
ECOSYSTEM TERMS
• Airdrops: An airdrop is a claimable token or NFT that is awarded to existing holders that sign the TX. The holder pays nothing for the airdrop and it will appear in the chosen digital wallet.
• Github: A provider of Internet hosting for software development and version control using Git. An open source website with information as a database. Each project can upload its GitHub URL for code which can be used by anyone all over the world. Acting as a hub for developers to seek grants, create new products and meet new associates.
• Web2: The internet as we know it. Controlled by a centralised company such as Facebook, Instagram and Youtube. There is no ownership of digital assets within web2
• Web3: The new internet. Decentralised and open source allows for anyone to build a new application. Digital ownership is enabled by the Blockchain.
NFT FAQ
• I am an Artist, how do I create my own project? The best place to start that is easy to use is Opensea with their instant custom contracts. For more detailed developer-made websites and smart contracts please contact the Nova team.
• Is this all a fad? Ethereum enables peer-to-peer transactions without the need for a third party. This means you are entirely in charge of your own currency. In addition, NFTs are the first time in history a person can own a digital product. The Blockchain acts as a public ledger that is always online and searchable.
• How can I avoid scams? The reality is scams are getting really good. Here are some quick tips. Never under no circumstances ever give out your seed phrase to anyone that asks. On discord be careful of direct messages, downloads and links that can hide malicious threats that can hack and drain your wallets.
• I think my NFT was stolen what can I do? At this stage it’s the wild west or digital gold rush. If your funds or NFTs are stolen the only way is to track who stole it via the blockchain. However this may be much harder to achieve as scammers are able to cover their tracks. Talking directly to NFT communities in discords can be beneficial as people may work together to track down the person responsible.
• Where do I go to view my NFT? Once you connect your wallet to Opensea webpage you can view your profile of NFTs.
ACRONYMS
• NFT – Non Fungible Token
• ETH- Ether
• DAPP – Decentralized Application
• DAO – Decentralized Autonomous Organisation
• FOMO – Fear of missing out
• FUD – Fear, uncertainty, and Doubt
• DYOR – Do your own homework
• WAGMI – We are going to make it
• GMI – Going to make it
Main sections:
Choose Your Subject (Ethereum, NFTs, DAOs, DeFi, Wallets, Ecosystem, Terms, Guides) -- on subject choice, subsection infromation appears -- info for each section follows and should be pressented as Question Answer where Questions allways show with either a p[lus or minus next to them. When the plus is clicked the Answer is shown, when the minus is clicked the answer unhides: Each subject should be shown with an icon and full text name.
info for subsection:
ETHEREUM ESSENTIALS • What is Ethereum? Ethereum is an online public ledger. Using the new technology of the blockchain, Ethereum allows users to create smart contracts allowing for decentralised applications (Dapps) to be created. Ethereum improves on the restrictive code of Bitcoin which grants developers much more freedom in creating new applications and protocols.
• Why is it important? Decentralization is important. So too is being in charge of your finances. The peer-to-peer finance system of the blockchain is one of the significant milestones in mankind. It allows a person to be in charge of their own finance on the chain. Ethereum allows the introduction of Dapps which are improvements to every application within web2 (such as facebook and Instagram) where those applications are owned by big corporations no one single entity will own Ethereum. That combined with the open-source nature means no one is trying to steal your data.
• What are Smart Contracts? The simple way to understand smart contracts is they are code that acts as binding contract that is embedded into the application. Smart contracts are used within Dapps for purchasing agreements without the need for a third party.
• What are Decentralized Apps (Dapps)? Applications that are decentralized and created for the blockchain. Dapps are created as open-source applications where the code can be found and improved on by anyone in the world.
• What is Ether. Ether is the native token of Ethereum. When you buy Ethereum on an exchange you will receive its native token of Ether.
• What are Gas Fees? Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. "Gas limit" refers to the maximum amount of gas (or energy) that you're willing to spend on a particular transaction.
• What is Layer-1? A layer-1 (L1) network is the name ofr the base blockchain. Ethereum (ETH) and Bitcoin (BTC) are layer-1 protocols. They are both considered the main networks in their respective ecosystem.
• What is Layer 2? A layer-2 (L2) network is a term to provide Ethereum scaling solutions. A layer 2 is a separate blockchain that extends Ethereum while keeping the security guarantees. For more information on Ethereum layer-1 and Layer-2 please visit the Ethereum foundation webpage https://ethereum.org/en/layer-2/
• What is the Ethereum merge? The merge represents the joining of the Ethereum Mainnet (what we use at present) with its proof-of-stake Beacon Chain. This changes the consensus of Proof-of-work to a Proof-of-Stake model that scales, is more secure and provides far greater sustainability. For more information on the Ethereum merge please visit the Ethereum Foundation webpage https://ethereum.org/en/upgrades/merge/
NON-FUNGIBLE TOKENS (NFTS) • What is a Non-Fungible Token (NFT)? A NFT is the authenticity ownership of a digital product. The blockchain allows users to own a digital asset that is searchable by a public ledger. This means if someone owns a NFT you can look up on the internet who owns it.
Opensea- https://opensea.io/ SuperRare- https://superrare.com/ LooksRare- https://looksrare.org/ Gem (NFT agrigator)- https://www.gem.xyz/ Immutable X- https://www.immutable.com/
The second way to create a NFT is to go through the custom contract on NFT marketplaces. Opensea has an easy to follow guide, process for creating new artworks as NFTs. Decentralized Autonomous Organisations (DAO) • What are DAOs? A decentralised Autonomous organisation (DAO) is an organisation where the rules are encoded as a computer program that is controlled by organisation members which are not centralized by governess. This means there is no top-down hierarchy, no CEO to make decisions. A core team exists to guide the project but the governess is made by holders who have voting rights on the treasury.
Create social media for the virtual community with Discord (and Twitter)
• What are the benefits of DAOs? DAOs provide a number of benefits in the form of decentralized governance, membership, share-based membership and reputation-based memberships. For more information on DAOs please visit the Ethereum foundation website on DAOs. https://ethereum.org/en/dao/ Decentralized Finance (DeFi) • What is Defi? Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. The system removes the control banks and institutions have on money, financial products, and financial services.
• How can DeFi assist me? It eliminates the fees that banks and other financial companies charge for using their services. You hold your money in a secure digital wallet instead of keeping it in a bank. Anyone with an internet connection can use it without needing approval. You can transfer funds in seconds and minutes • What are some Defi protocols I can look into?
• Other sources. The Ethereum foundation has a great insight into Defi with DAPPS and documents on understanding decentralised finance -https://ethereum.org/en/developers/docs/dapps/ DIGITAL WALLETS • What is a digital wallet? A digital wallet is an application that is made possible by the Blockchain and one that keeps a user’s funds (tokens and NFT assets) in an encrypted wallet (such as coin spot or metamask) wallet.
• Coinspot Wallet: A coin spot wallet can easily be made via their website. Coinspot is the most easy-to-access digital wallet that is centralized.
• Metamask Wallet: Metamask is the Ethereum native wallet that is decentralized. Please refer to the guide on how to set up a metamask wallet. This is also known as a hot wallet that is always connected to the internet and cryptocurrency network.
• Hardware Wallet (Ledger Nano X): The hardware wallet is linked to a USB Dongle as further security as funds are placed on the USB device. This is also known as a cold wallet as its not connected to the internet.
• Seed Phase: The seed phase is a 16 word security code that enables users to encrypt their funds without another person having access to it. If a person loses their 16 word security code then there is no way to access the funds.
ECOSYSTEM TERMS • Airdrops: An airdrop is a claimable token or NFT that is awarded to existing holders that sign the TX. The holder pays nothing for the airdrop and it will appear in the chosen digital wallet.
GUIDES • How to set up a coinspot account https://www.youtube.com/watch?v=QNu4U2GQZLc&ab_channel=CryptoCoaching • How to set up a Metamask account https://www.youtube.com/watch?v=Af_lQ1zUnoM&ab_channel=MoneyZG • How to set up a Ledger Nano X account (Hardware wallet) https://www.youtube.com/watch?v=GPpZxOjvU10&ab_channel=Boxmining • How to use Opensea https://www.youtube.com/watch?v=2tBPp8MLS9E&ab_channel=DataSlayer • How to use uniswap https://www.youtube.com/watch?v=dcZ7kVC2-6g&ab_channel=EveryBitHelps
NFT FAQ • I am an Artist, how do I create my own project? The best place to start that is easy to use is Opensea with their instant custom contracts. For more detailed developer-made websites and smart contracts please contact the Nova team.
ACRONYMS • NFT – Non Fungible Token • ETH- Ether • DAPP – Decentralized Application • DAO – Decentralized Autonomous Organisation • FOMO – Fear of missing out • FUD – Fear, uncertainty, and Doubt • DYOR – Do your own homework • WAGMI – We are going to make it • GMI – Going to make it