HubCityDAO: Web3 Fundamentals

Editor's Notes

• #5: A single owner for all the nodes Multiple databases on each node Each node can store unique information Information can be replicated if needed
• #6: The information stored on each server is the same Servers are always in sync The system can resist nodes going offline or rogue For the network to be secure at least 50% of nodes need to be “honest” Bitcoin has ~15k nodes (200 EH/s = 200x10^18 h/s) Ethereum has ~5k nodes (1 PH/s = 1x10^15 h/s) Bitcoin has 200.000 times the hash power of ETH
• #7: Single purpose blockchains only allows the sending of its native coin to another user Multi purpose blockchains are programmable through smart contracts NFTs, DAOs and Multisig wallet can only be created on smart contract blockchains Ethereum is the most secure but it’s too expensive to use Solana was a rising star but has had technical problems and not enough developers Polygon is a solid alternative as it’s EVM compatible but cheaper
• #9: Fungible - People take $1 coin from their pocket and put it on a table - Someone shuffles all the coins - People get to pick and keep one coin - No one cares if they are picking up someone else’s coin Non Fungible - Same experiment but with people’s phone - People will pick back their own phone even if same model and color
• #11: A naive way to create an NFT is by setting up a database of owners Bob has full control over the database (read, write, delete) Bob as the creator of the NFTs is its first owner
• #12: The smart contract doesn’t know if the transfer was a gift or a sale The current price of an NFT is not stored in the smart contract You can track all the previous owners of an NFT on chain You have to pay for “write” transactions Reading data is free
• #13: You can “steal” an NFT by downloading its image to your computer The NFT is worth $140,000 while the copy of the image is worth $0 Both images look the same but an “expert” can tell apart the original from the copy If an expensive painting in a museum gets replace by a fake, would you notice it? Probably not An expert can tell apart the original from the fake even if they look the same for anyone else The original might be worth millions of dollars while the fake is worthless The story of the “Odalisque in Red Pants” by Henry Matisse
• #25: Sotheby’s $PEOPLE token did not grant governance right 1 $PEOPLE = $0.02 (2 cents) 5 billion $PEOPLE in circulation Market Cap: $120 millions
• #28: A Juicebox project is stored as an NFT Whoever owns the NFT has the right to change the project config Ideally this should be a multisig wallet controlled by on-chain governance Gnosis safe has an app for interacting with Juicebox Only when redeeming funds to the authorized wallets is when the 5% is withdrawn to JBX and governance tokens are given in exchange The current version of Juicebox is 1.1 but they are working on version 2 Version 2 is being audited On each funding cycle the project can use the overflow as part of their new funding target “No more than the funding cycle target can be distributed by the project in a single funding cycle” As funds arrive they can be withdrawn to the project’s wallet. No need to wait until the cycle ends The distribution of the funding cycle and the distribution of the reserve tokens can be independently defined and can be completely different wallets
• #34: An example from a game I like: GTA V If I want to get a car I need to either spend a lot of time earning in-game currency or pay real money for it I can’t gift one of my cars to a friend or sell it to another player