Web3 ExplainedWeb3 is a new type of internet that is decentralized and open. It allows people complete control over the content they create and the platforms they design and build. Web3 is a financial transaction platform that runs on blockchain technology where users can log in to applications using cryptocurrency-based digital wallets. With Web3, developers are working to decentralize the internet once more, allowing the content and platforms that people generate to no longer be under the control of Big Tech/tech giants and major corporations. Web3 also intends to address the security and privacy concerns that plague the internet. Not only do developers, content creators, and other users retain control over the way Web3 platforms and DApps are built and maintained, but they can also enter any Web3 app without authorization from a company or government agency. Users acquire ownership shares based on their contributions to the development and maintenance of Web3 platforms, which gives them equal power and influence over online goods and services.
Block-by-blockThe blockchain is effectively a list of records. In DeFi, it is often a record of transactions, and it would be common for these transactions to be cryptocurrency-related. Each record is given a ‘block’ and each block is chained to the previous one. While blockchain has proven to be a secure technology, it is the smart contracts and decentralized applications (DApps) that are prone to security vulnerabilities and misconfigurations. The technology is only as secure as the code built onto it. Over the years, Cyrex has worked on a wide range of blockchain-based applications such as marketplaces, galleries, wallets, staking platforms, NFTs in gaming, and smart contract audits.
Smart ContractsSmart contracts are effectively miniature programs. They are small and custom-coded programs or protocols which are implemented to execute and monitor specific commands. For games, they can do anything, such as monitor transactions for an in-game marketplace. For fintech, they could be checking and verifying the proper transfer of funds between parties. Due to the nature of smart contracts, and their frequent use with blockchain, they must be secured. They are custom-coded and like any piece of written code, they can contain mistakes. Once their parameters are met, they will execute their command. In the event that an unsecured smart contract is uploaded, it would be a dangerous hole in your defences. Should it be uploaded onto a blockchain system, it acts as a permanent vulnerability which likely cannot be removed.
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