This post “explains like I’m five” core crypto concepts: web 3, blockchain (wallets, consensus), tokens, bitcoin, ethereum, NFTs, and DAOs. Let's go down the rabbit hole together.
For Proof of Stake - "Other validators check if the block is valid. If it is, all participating validators earn a transaction fee. If it’s not, the validator that created the block might lose its stake."
Aren't validators in this scenario just another type of middle man? Banks are the middle man today and take a transaction fee, and validators are doing the same to process the transaction. I'm sure that's an inaccurate analogy, but i'm not sure how.. How do you think about validators and transaction fees in relation to processes we have today?
I guess it's because the validator is chosen at random and also he/she has to put up some form of stake (value in cryptocurrency) in order to verify the transactions. i.e. unlike a bank which only gains in a transaction the validator could essentially lose their holding in a wrong validation.
*** This is just my interpretation of the proof of stake mechanism and isn't 100 percent accurate by any means.
Hi Peter, lovely primer on everything web3, blockchain, and crypto! You might want to fix the hyperlink for Blockchain 101 video, part 2. It's the same as part 1!
this post was so educational and concise - ty!
For Proof of Stake - "Other validators check if the block is valid. If it is, all participating validators earn a transaction fee. If it’s not, the validator that created the block might lose its stake."
Aren't validators in this scenario just another type of middle man? Banks are the middle man today and take a transaction fee, and validators are doing the same to process the transaction. I'm sure that's an inaccurate analogy, but i'm not sure how.. How do you think about validators and transaction fees in relation to processes we have today?
I guess it's because the validator is chosen at random and also he/she has to put up some form of stake (value in cryptocurrency) in order to verify the transactions. i.e. unlike a bank which only gains in a transaction the validator could essentially lose their holding in a wrong validation.
*** This is just my interpretation of the proof of stake mechanism and isn't 100 percent accurate by any means.
Hi peter, I really appreciate that you posted helpful article to learn about blockchain.
Can I translate in Korean and post on my blog? Of course, I'm gonna refer your article.
Thank you!
Hi Peter, lovely primer on everything web3, blockchain, and crypto! You might want to fix the hyperlink for Blockchain 101 video, part 2. It's the same as part 1!
Thanks for letting me know!