08_Web3

Question 1

Web3 vs Web2
State of Data, Focus, Features, Technologies

Answer 1

Web3
- entities have ownership over the date and its sharing and use
- focus is on empowering individual users
- smart, web-based applications and functionalities
- the better blend of web3 technology and knowledge representation
- AI, Machine Learning, Decentralized Protocols

Web2
- the network owns the data
- focus is primarily on community decelopment
- improved interaction
- introduction of web applications
- Ajax, JacaScript, HTML5, CSS3

Question 2

Core ideas of Web3

Answer 2

- decentralized:no one can control it
- permissionless:anyone can use it
- censorship resistant: no one can stop it
- secure: anyone can verify execution

Question 3

Risks of Web3

Answer 3

- security vulnerability:
- scams and fraudulent projects
- privacy concerns:challenging to delete or modify information once it’s once the blockchain,
- user error and irreversible transactions

Question 4

Financial Services within Ecosystem of DeFi

Answer 4

• Infrastructure: running blockchain services e.g. participation in consensus algorith as validator (staking)
  - Derivatives
  - Decentral Exchanges (DEX): direct settlement between buyer and seller without intermediary
  - Credit: Overcollaterized automated lending & borrowing
  - Stablecoins
  - Walles & Asset Management: Automated execution of investment strategies at near-zero fees
  - Compliance & Idenity: Decentral unique identity managed by smart contracts or wallets
  - Payments: Event-driven payment triggering similar to the trustee for various use cases
  - Decentralized insurance: Insurance against DeFi risks such as technical risks, liquidity risks and loss of keys
  -** Tokenization:** Securitization of digital and real-world assets on blockchains

Question 5

dApps

Answer 5

decentralized applications

Question 6

What is DeFi

Answer 6

• DeFi is not single product but set of products and services providing alternative to banking, insurance and capital markets often without need of intermediary
• these services are delivered through dApps most of which are based on Ethereum
• DeFi dApps enable users to combine services to access financial services they previously did not have access to

Question 7

how are DeFi dApps measured?

Answer 7

• by TVL (Total value locked) a
• ie. value of assets that DeFi applications are deposited with