GM web3 fam!
Bringing you the daily digest of web3 with letters K and L today.
They say good things take time, and that’s why the newsletter is a little late today!🙃
Here’s what I’ve got for y’all
K: Keys
L: L1,L2 Liquidity, light node 👇👇
If you’ve dipped your hands in the world of cryptocurrency, you’ve probably come across the concept of crypto wallets, and may have heard of private or public keys.
But what exactly are they?
Lets’s start with crypto wallets👇
They help you send, receive, and spend cryptocurrency. It also holds your keys and provides secure access to your wallet.
We have a few types of wallets
📌Hardware wallets: Where your keys are stored offline
📌Custodial wallets: a platform looks after your private key. Third party has full control over your funds while you only have to give permission to send or receive payments.
📌Non-custodial wallets: you control your private keys with no third-party involvement at all.
Essentially, all wallets need private keys to secure it. But, what are private keys?
👉Private keys are like your house keys🔑. And your house address is like your pubic key. People need your address to reach your house, but can only enter with your house keys.
Private keys represent final control and ownership of cryptocurrency - like a password. They’re also used to sign transactions and prove ownership of a blockchain address. In case of Bitcoin its a 256 bit alphanumeric string
Public key is designed to be disclosed so that you can receive cryptocurrrency. It’s linked to your private key which is needed to unlock the public key.
Public key is created from the private key through a mathematical algorithm, while the reverse isn't computationally feasible
Public key is designed to be disclosed so that you can receive cryptocurrency. It’s linked to your private key, which is needed to unlock the public key.
If you’re unable to access private key for some reason, you’ll likely be unable to access your coins. Keep it safely and never share it publicly.
When it comes to your private keys:
It’s time to understand some fundamental issues and improvements in the blockchain infra!
You’ve heard L1 and L2 quite commonly in the web3 space(or maybe not), but not sure what does it refer to?
Honestly, all the mathematics and jargons can be too technical to understand the core infra of blockchain, that’s why you should read web3 bits n bytes :)
Let’s dig in👀👇
L1: Layer 1
L2: Layer 2
L1 is the basis of the blockchain architecture - base layer or mainnet. Ethereum , FantomFDN & Bitcoin blockchain are all L1 blockchains.
Layer-2 is a network that is built on top of the underlying L1 blockchain.
While thousands of DApps are running on main chains like Ethereum, its blockchain often struggles with congestion issues, leading to high gas fees and slow speeds🤯
That where L2 and sidechains come in👇👇
L2 protocols are used to improve scalability, privacy, and add cross-chain communication in the existing networks. And also to provide for better TPS speeds and lower transaction fees.
While Sidechains are a separate blockchain network that runs in parallel to the main chain, both L2 & sidechain help in scaling L1 networks
❗️Unlike sidechains, which rely on their own consensus mechanisms, layer 2 solutions inherit the security of their underlying mainchain❗️
Polygon provides both L2 & sidechains solutions through Polygon Proof of Stake & zk-Rollups. (More on this coming soon)
Now that we have optimized the network, let’s take a look at nodes.
Nodes are present in a network to ensure that the data which is held on the node is valid, secure & accessible to the authorized parties.
Today's star is 👉 "Light node"
Its a computer that connects to a full node to further validate the information that is stored on the blockchain. Light nodes do not maintain the entire blockchain & address state and are hence smaller in size💯
They store only header chain information and receive additional information upon request. They’re able to verify the validity of data but do not fully participate in block validation.🤩
Light nodes comes with benefits👇👇
👉It enable users to participate in the network without powerful hardware or high bandwidth required to run full nodes.
Who knows, one day light nodes might run on mobile phones or even embedded devices.🚀🚀
That’s a wrap for today!
Stay tuned for more on the new vocabulary of the web for next 30 days.💯
It’s like a free crash course on the jargons and terminologies in Web3.
As ever, thank you for subscribing and reading. It matters. It’s a big deal to me.
And, remember, half-true compliments and feedbacks are always welcome at:
laisha.wadh [at] gmail [dot] com
WAGMI 🚀🚀