Blockchain Fundamentals

What is Blockchain?

Blockchain is a database of transaction history. This transaction history is stored inside a block, these blocks contain information regarding the previous block thus linking them together to create a chain of blocks, otherwise known as a Blockchain.
Blockchain is widely used due to two main reasons:
  • blockchains are decentralized - this means there are no 3rd parties involved in approving your transactions on the chain, this also means blockchain is immutable (Tamper Proof) as they rely on all parties in the network agreeing on the blockchain (This is known as consensus).
  • Blockchain is highly secured due to its use of cryptographic keys and signatures - this prevents fraud such as other users pretending to be you as they would not be able to replicate your private keys.

What is Crypto Wallet?

If you're interested in participating in the CRUZO marketplace, you will need to understand what a wallet is. Wallets are used to send, receive, and store digital assets like Ether. You will need an account with a wallet provider. This account will assign you a public address and private key. What is a public address? Public addresses come in the form of a string of numbers and letters that are used to identify wallets and to send and receive crypto. You can think of it as a username or an email address. What is a private key? Private keys act like complex passwords which give access to wallets and their protected assets and allow users to send tokens from their public address. It is important to keep your private keys as safe and as possible. What are the types of wallets? Wallets come in many forms. They are either built into your browser, an extension added to your browser, a piece of hardware plugged into your computer or even an app on your phone.
  • Desktop/Mobile: Software that connects to the Internet as a solution to processing blockchain interactions. This is the most common type of wallet and may come in the form of a browser extension or mobile application. Ex: Metamask, Torus, MyEtherWallet, Coinbase, WalletConnect, MyEtherWallet, Fortmatic
  • Hardware: A piece of hardware that is built to keep your crypto secure via a physical medium. These will usually come in the form of a USB device. They can stay offline and be kept somewhere their user feels it is safe, while still being able to go online when the user would like to engage with the blockchain to store assets or manage funds. This usually involves plugging the device into a PC. Ex: Ledger, Trezor
How do I keep my wallet secure?
  • Never share your private key or wallet password.
  • Store your private keys somewhere safe that you will not forget. Losing access to your private keys means losing access to any digital assets protected by the associated wallet.
  • Pay attention to where you are signing transactions and connecting your wallet. A malicious website that you connect your wallet to can clean out the entirety of your assets.

Standard ERC-20

What is NFT?

NFT stands for Non-Fungible Token, which is a unique digital asset that represents ownership of a specific item or piece of content, such as a piece of artwork, music, video, or even a tweet.
With the help Cruzo.Cards platform you can create and gift your own NFT greeting cards using blockchain technology, as well as buy NFTs created by other creators or users.
Unlike traditional cryptocurrencies like Bitcoin or Ethereum, which are interchangeable with one another, NFTs are one-of-a-kind and cannot be replaced or exchanged for something else. Each NFT is unique and carries a distinct set of attributes that make it different from any other NFT.
NFTs are created using blockchain technology, which is a decentralized digital ledger that records transactions in a secure and transparent way. This means that ownership of an NFT can be easily verified and transferred without the need for a centralized authority.
NFTs have become popular in the art world, where they are used to sell and buy digital art and collectibles. They have also been used in the music industry to sell exclusive rights to songs or albums.
Overall, NFTs offer a new way to create, own, and sell unique digital assets that can't be replicated or duplicated.

What is Gas?

  • A gas unit is the smallest type of work that is processed on the Ethereum network.
  • Validating and confirming transactions on the Ethereum blockchain requires a certain amount of gas, depending on the size and type of each transaction.
  • Gas measures the amount of work miners need to do in order to include transactions in a block.

How does gas affect transaction confirmation?

  • Miners are paid for their work validating transactions and adding blocks to the Ethereum blockchain in fractions of ether (ETH). These fractional units are called gwei, and comprise the gas price for the transaction.
  • If a transaction needs to be confirmed urgently or as soon as possible, a higher gas price should be included with the transaction.
  • It is important to communicate to the miners how much work needs to be done in order to process a transaction. This is done with the gas limit, which the Wallet calculates automatically to ensure that transactions go through successfully. The limit also prevents overspending on mining fees.
  • If the gas limit is set too low, a transaction can fail, or get rejected, which would result in losing the gas paid for the transaction. If a transaction is processed before the limit is reached, the rest of the gas will be returned to the sending wallet.
Last modified 23d ago