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Proof-of-Work vs Proof of Stake

As you know from our last article, blockchain technology relies on consensus mechanisms to validate transactions and maintain security. Two of the most prominent mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS). To simplify these concepts, we will be using another set of metaphors from the creative world. Ready? Let’s go!Proof-of-Work: The Artisan's CraftMetaphor: A Master Artisan Imagine a master artisan creating a unique piece of art. This artisan must source rare materials,...

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Consensus Mechanism Explained

In our article “Blockchain Explained,” we used the metaphor of a fashion show to describe the participants and mode of operation of blockchains. The blockchain was visualized as the runway, where the models (aka blocks) are initially lined up, and as they walk down the runway, they will be added to the end of the line, thus building a chain of models/blocks. The audience members represent the nodes (computers) in the blockchain network. They watch the models walk and have a written copy of th...

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Centralized vs. Decentralized Exchanges Explained

We are back with more; this time, let’s have a look at centralized vs. decentralized cryptocurrency exchanges, how each works, and how they are different. Imagine two bustling marketplaces in a city, each with its own unique character and offerings. One is a large, well-organized mall, with security guards at the entrance and a central management team overseeing everything. The other is an open-air market with a huge variety of stalls run by individual vendors, each responsible for their own ...

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Liquid Restaking Explained

Remember one of our past posts when we explained what "staking" is and how it differs from "liquid staking"? Now, DeFi is evolving, and there is “liquid re-staking”! Are you ready for the next step👀? Once again, think about the metaphor of the decentralized art gallery: When you lend your painting to the gallery and earn a share of the ticket sales, but your painting is locked up in the gallery for a set period, that`s like staking in DeFi. If you receive a special "Art Token" for lending yo...

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Blockchain Layers Explained

Last time, we discussed the different public blockchain networks available and the fact that there are other types of blockchains besides the public ones. This time, we will take a closer look at the different layers of Blockchain ecosystems such as Ethereum. The Ethereum Blockchain Ecosystem is pretty versatile, and one of the most developed ones out there, and it will make for a great example. To keep the information flow easy, we will avoid metaphors this time around as they introduce unne...

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Blockchain Networks Explained

Last week, we talked about Blockchain as a general concept; this week, it is time to dig a bit deeper. As mentioned in "Blockchain Explained" (Article Link), there is not one Blockchain but, in fact, many different ones. Not all of them follow the same rules, and not all of them are publicly accessible. This time, let’s use some art 🎨 metaphors to examine different types and properties of Blockchains. When it comes to the different kinds of Blockchains, we can differentiate between four main...

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Blockchain Explained

First of all, and to clarify, there is no such thing as ‘The Blockchain.’ There are actually hundreds of different blockchains. But to take it one step at a time, let’s look at the general concept of one blockchain, again utilizing a more relatable metaphor from the realms of fashion:Fashion Show = BlockchainImagine a fashion show where each model represents a block in the blockchain. As the models walk down the runway, they are wearing outfits that represent the data or transactions being re...

#blockchain#technology#crypto#digitalfashion
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DeFi "dumping" Explained

Crypto news of the past few days has been scrutinizing the German government for selling vast amounts (worth around $895 million) of Bitcoin in short intervals. Maybe you have been wondering why that is seen as problematic. Let's take a closer look together so you can take part in the discussion: Imagine an exclusive art gallery that only displays a limited number of paintings. This gallery is known for its unique and valuable pieces, and it attracts a specific group of art collectors wh...

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DeFi Staking & Liquid Staking Explained

Metaphors are useful tools for explaining novel concepts. In our last post, we explained Decentralized Finance (DeFi) through that method. Now, it is time to go one step further and learn what "staking" is and how it differs from "liquid staking." Are you ready 👀? Imagine a prestigious art gallery in a big city. This gallery has strict rules:Only certain people can buy or lend art.The gallery decides the prices and manages all transactions.If you lend your painting to the gallery, you can on...

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Decentralized Finance Explained

Do you know what DeFi is 👀? I bet you are curious, so let's get you up and running in an area of Web3 called Decentralized Finance! Let's try and look through the glasses of fashion 👗 and imagine a magical fashion world to represent the world of finance. Imagine a big, colorful fashion swap meet in a magical town where anyone can come to trade, lend, or borrow clothes and accessories. This is our metaphor for DeFi. In the regular 🏛️ part of town, there are big fashion stores (lik...