Did you know that most cryptocurrencies will almost certainly never be as useful to the masses? The laymen who are looking to efficiently spend and earn their daily bread through a much more reliable form of currency and payment system, but have no choice because the existing cryptocurrencies are mostly focused on engaging with the technology and the price charts.


 <img
 src="/images/posts/are_stablecoins_ready_for_the_masses/1.png"
 alt="Are stablecoins ready for the masses?"
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And of course also due to the fact that they cannot have easy access to these cryptocurrencies, and more importantly the price volatility that comes with a relatively small market like bitcoin compared to fiat or gold.

The liquidity of cryptocurrencies have totally different meanings to the masses compared to the cypherpunks, crypto enthusiasts, investment funds and traders.

To the masses, liquidity simply means the level of familiarity and transfer-ability in their local community, so how easy is it to buy groceries with this, how easy is it to keep track of my spending habits (the blockchain is actually best at that than anything), how stable is this currency, why is it better that my local bank account and currency (the most important, shadows all the rest), how easy is it to exchange this for another currency, how large is the community that actually spends and accepts this as legal tender in my community and my favourite malls and souqs, how popular and accredited is it on the online services I trust, so what is the PPP (purchasing power parity).

These are the simple concerns of a layman about any currency, so basically how is this convincing enough to convert the layman into using, earning, spending and trading this currency?


 <img
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 alt="Are stablecoins ready for the masses?"
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The multiple answers that we’ve seen as a result of this speculation, is the birth of stablecoins, cryptocurrencies that are pegged to fiat currencies in price and as some of them are backed by fiat in the bank like Tether, some are backed by other cryptocurrencies like in the case of Maker DAO.

But there is an issue of centralisation with most if not all of the popular stablecoins out there. And issues have emerged concerning the legitimisation of their practises.


 <img
 src="/images/posts/are_stablecoins_ready_for_the_masses/3.png"
 alt="Are stablecoins ready for the masses?"
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Tether (USDT) for example, was known to be involved in a lot of scandal controversies, you can check Tether’s $850 million Controversy — Forbes, and Tether’s 20 Billion dollar scandal — Hackernoon, and here, and most importantly to the topic of centralisation and the human error involved in minting from a central trigger at one man’s finger tip — check here Tether ‘accidentally’ minted $5 billion worth of Tether tokens over the weekend, sending the price of Bitcoin down significantly — CoinRivet.

Setheum has uniquely thought of this and brought about a unique solution to make a difference. Setheum is decentralised and the network’s stability techniques are fully transparent for the public to see. For more details check the Setheum Stability Mechanism article here.

There is no man or a list of people held responsible for the stability of the Setheum Economy of stablecoins, it is absolutely decentralised and immune from central attack or human intervention in the stability mechanisms, no forging of coins by any central entity.

Setheum offers stablecoins to laymen of a lot more regions with derivatives they are most familiar with so they don’t have to learn a whole new currency and it’s language/charts. Setheum acknowledges economic & financial regionalisms and so it adopts pluralism in its network.

On top of that, Setheum Labs is also consolidating a community of Setheum related interests that will bring together some of the household names around the communities we plan to impact, bringing a galaxy of partnerships and services to the Setheum community that are ready to make life easy for the masses in their respective communities.

Setheum will be verily accessible to the masses and Setheum will provide the right and best answers to the questions and concerns of the layman. Setheum is set to impact the masses in a way that no cryptocurrency has addressed before. The stability, familiarity, liquidity, strong strategic PPP, all the amenities of fiat plus the luxuries of cryptocurrencies and the perks of the Setheum Network

For more details check the Setheum Stability Mechanism article here.

Setheum is leading the way for a unique approach to make a difference in its industry. Setters are people not just enthusiastic about the name “Setheum” but also deeply connected to the unique form of thought that is set to make a difference, a trait found in all Setters.

Did you know that most cryptocurrencies will almost certainly never be as useful to the masses?

Are stablecoins ready for the masses?

<img
 src="/images/posts/bitcoin_and_the_blockchain/1.png"
 alt="Bitcoin And The Blockchain - Simply Decoded"
 />


## Let's Get Started - The History

It all started in 1976, cryptographers Whitfield Diffie & Martin E. Hellman published their paper “New directions in cryptography”. 

David Chaum first proposed a protocol similar to Bitcoin in his thesis "Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.” in the year 1982.

Then S. Even, O. Goldreich, and Y. Yacobi published “Electronic wallet” later in 1983.

Furthermore, since then we’ve seen inventions in this field being introduced by some of the most brilliant minds around, this gradually builds up and leads to what we know today as the “Blockchain” In 1998 yet again, Nick Szabo introduced the design of a mechanism for a decentralised digital currency he called "Bit Gold".

Though Bit Gold was never implemented, it has however been dubbed "the direct precursor to the Bitcoin architecture.” In Nick Szabo’s Bit Gold, a participant would dedicate computing power to solve cryptographic challenges (like puzzles). In the Bit Gold network, solved cryptographic hashes would go through a BFT (Byzantine Fault-Tolerant) public registry and be assigned to the public key of the participant/solver. Each solution would become part of the next challenge, creating a growing chain of new challenges. This provided the Bit Gold network with a method to verify and time-stamp new Bit Golds, because unless a majority of the validation participants agree to accept new hash solutions, they couldn’t start on the next challenge.

When attempting to design a digital currency, challenges like the "double-spending" problem arise. Once data has been created, reproducing it would simply be a matter of copy and paste. Most digital currencies would solve the problem by advocating some control over to a central authority, which keeps track of the account balances. This was clearly an unacceptable solution for Nick Szabo, "I was trying to mimic as closely as possible in cyberspace the security and trust characteristics of gold, and chief among those is that it doesn’t depend on a trusted central authority,"said Szabo.

The phrase and concept of "smart contracts" was also developed by Nick Szabo, with the goal of bringing what he calls the "highly evolved" practices of contract law to the design of trustless e-commerce protocols on the Internet.

More papers were published to achieve fairly the same objective, a peer-to-peer trustless and secure electronic monetary equivalent. All these inventions were neglected and almost forgotten until when we needed them the most in the 2007-2008 financial crisis, what a crash, I had wish we saw the black swan coming earlier and took all preventive measures, but we just simply didn’t trust crypto, and now it’s proven us totally wrong, though it hurts to be wrong we have to admit we must transition to a better economic stability strategy.

On the 7th of April 2008, MICHAEL NÜSKEN published “WORKSHOP e€ (ELECTRONIC MONEY).” In the same catastrophic 2008, Blockchain was invented by a person under the alias of “Satoshi Nakamoto”, to serve as the public transaction ledger of the cryptocurrency “Bitcoin”.

The identity of Satoshi Nakamoto remains unknown till date. The invention of the blockchain for the bitcoin network, made it the first digital currency to solve the “double-spending” (where one could spend a unit of exchange more than once) problem without the need for a trusted centralised authority.

The bitcoin design has inspired many other applications and blockchains that are public, transparent. And today, we have a lot more than just Bitcoin.

## Understanding The Blockchain

The blockchain is a decentralised, electronic ledger made up of blocks used to record transactions across distributed nodes such that any recorded block cannot be altered retroactively, without the alteration of all the subsequent blocks. This enables the participants to verify and audit transactions independently. A blockchain’s database is managed autonomously using a peer-to-peer network and a distributed timestamping server. They are authenticated collectively by participants with similar self-interests. The blockchain does away with having to trust a central authority or server, making it trustless and it is transparent to support auditing and ensuring readability.

- 1st Generation - Bitcoin (Cryptocurrency)

The 1st generation of the blockchain aimed at Cryptocurrency is the first implementation of distributed ledger technology (DLT). This allows financial transactions based on blockchain technology or DLT (for the sake of simplicity often seen as synonyms) to be executed with Bitcoin being the most prominent example in this segment. It is being used as A STORE OF VALUE, a digital payment system and can be seen as the enabler of an “Internet of Money”.

- 2nd Generation - Ethereum (Smart Contracts)

Ethereum blockchain aims to execute ‘Smart Contracts’ to reduce the cost of verification, execution and fraud prevention. They are independent computer programs that automatically execute predefined conditions. A DApp can have frontend code and user interfaces written in any language that can make calls to its backend, like a traditional App. But a Dapp can have its frontend hosted on decentralised storages such as Ethereums Swarm. [DApp = frontend + contracts (running i.e. on Ethereum)]

- 3rd Generation and Web3.0 (leapfrog)

The first generation of the Blockchain aims at solving the issue of double-spending and providing a decentralised and secure monetary system on the internet, and this is where Bitcoin lands as the first successful implementation of decentralised finance. The Second generation focuses on the programmability of the blockchain layer, to support a diverse range of application development on the blockchain, and that is when Ethereum was introduced that supports an EVM (Ethereum Virtual Machine) which is a programmable layer on the blockchain that allows the deployment of smart-contracts that can interact with each other on top of the blockchain.

The 3rd generation blockchain revolves around the idea of interoperability and the 3 Ss namely sustainability, scalability, and security. This is where we see Proof of Stake implementations that are environmentally friendly and an alternative to the legacy “Proof of Work” for long-term environmental sustainability with works like Polkadot and Setheum. Here we see decentralised storage like Filecoin, IPFS, and Chia that use Storage Consensus mechanisms. Here we see state upgradability without forking like in Polkadot and Setheum, we see on-chain built-in DeFi systems like in the case of Setheum. We also see layer 0 solutions like Polkadot and layer 2 solutions alongside many innovations in the blockchain and crypto space.


I hope this helps you grasp the fundamental concepts and terminology of Crypto and Blockchain Technology. Stay tuned for more exciting insights in the world of tech, finance, Blockchain, Web3, AI etc. in the next edition of Decoded.

Remember, knowledge is power when shared. So if you find these insights valuable, I encourage you to share this newsletter with your colleagues, friends, family, and anyone else who might be interested in these topics. Let's work together to decode the most complex technical concepts and unlock their potential for real-world applications, and see you next time.

Best and Peace Be Upon You All,

Khalifa MBA (Muhammad-Jibril B.A.)

What is bitcoin, and how did it come about. What is ther relationship between bitcoin and the blockchain. This is  what we'll talk about.

Bitcoin And The Blockchain - Simply Decoded

The way many people see mobile money is so distinct from what it actually is. I live in China where e-payment is pretty much the most familiar form of transaction in the country. The Chinese often ask me, do you have payment options like WeChat and Alipay, or questions like digital payments or cash which are more prevalent in your country? And believe me, China is way ahead of pretty much any other country in digitization. And they did in such a short time and adopted it nationwide.

There is a misconception that Mobile money functions just like Alipay or WeChat but using phone numbers as accounts and calling credit/broadband as credit/money something like WhatsApp for payment for instance. This belief is wrong, not even close.

Mobile money and payment apps work verily distinct in both their mechanisms and policies. But this article will focus on the comparison between mobile money and cryptocurrency.

Is mobile money more secure, is it more efficient, is it faster, is it cheaper, all these questions lead to a big NO! It’s a crystal clear answer and here is why.

First of all, when comparing these two, there are factors to consider which we will categorically determine to know which system has the upper hand.


 <img
 src="/images/posts/cryptocurrency_vs_mobile_money/2.gif"
 alt="Cryptocurrency vs Mobile money"
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## Factors to consider:

1. Fee Structure
2. Usability
3. Accessibility
4. Reliability

### Fee Structure

The fee structure of a monetary system is the #1 factor to consider when choosing a payment system. The fee structure can make or break a payment system, it can also make or break the users and the community of the system.

Cryptocurrencies have transaction fees anywhere from $0.000001 to $2.5. Some cryptocurrencies like in Setheum charge transaction fees in weights (bytes) providing onem of the cheapest fee structure around while others like ethereum offer more expensive fees of up to hundreds of dollars (not the ideal fee structure here — I know but still better than percentages in mobile money, so Setheum is better used here). It’s common to transact cryptocurrency of more than $1 million with a very low transaction fee of $1 for instance, contrary to the percentage fee structure in banks, mobile money, swift, or any other form of remittance.

With mobile money, the fee structure is chaotic, the transaction fees range anywhere from 1% up to 15%. And the more money you send the cheaper the fees, which invites inequality.

Unlike cryptocurrency, mobile money charges you more when you send less, cryptocurrency charges you less when you send less, especially in the case of Setheum and Polkadot where fees are based on weight/bytes that they occupy in a transaction.

Regressive pricing structures often mean that those with lower incomes, who are more likely to make small transactions, end up paying higher fees on a percentage basis. Digital financial services, such as mobile money, have the potential to provide the poor with affordable access to formal financial tools, but regressive price structures might limit the potential benefits for this segment of the population. So unfair and inefficient.

Cryptocurrency clearly won this category with a 7 star rating, while mobile money is completely rekt.

### Usability

Usability is a measure of how well a specific user in a specific context can use a product to achieve a defined goal effectively, efficiently and satisfactorily.

So, how usable is mobile money? I would say as far as I know not that usable but pretty much does the job right? Wrong. The job is to transact seamlessly, securely, efficiently, affordable with the best experience possible. Cryptocurrency offers al the usability factors except one in some cases, just and only just in some cases cryptocurrency might not be a great experience in places where the convenient experiences are not offered, for example Nigeria, I remember the first time I bought cryptocurrency back in 2017 in Nigeria it was a horrible experience, but it got a lot better now. Today in most 3rd world countries that need remittance systems like that of Setheum’s transactions, it is hard to get the convenient experience that props usability and adoption.

There are good payment systems out there that offer nice experiences that rival that of banking experience, but they are mostly offered in 1st world countries like the USA, UK, Germany, Switzerland, et al. We need to make this experience a global phenomena that pros usability, adoption and accessibility. And we at Setheum Labs are tackling it head to head with the best solutions that offer the best experience that props usability, adoption.

### Accessibility

For cryptocurrency to do what everyone is so excited about it’s doing — decentralising currency and creating an international currency system — we need to make it global and accessible.

In a [WIRED interview](https://www.wired.com/story/for-women-in-cryptocurrency-a-new-effort-to-grow-their-ranks/), Jalak Jobanputra, managing partner and founder of Future\Perfect Ventures, said that for this democratisation to occur, the cryptocurrency industry must promote more widespread inclusion of all groups of people. “We need to make sure this phase of technology doesn’t go the way of the Internet, with everything happening in one place, one demographic deciding how this stuff gets built out and how we use it,” said Jobanputra.

In every one of the many changes to global economic systems throughout history, it has generally been wealthy white men who have reaped the most benefits. Despite its promise to decentralise and democratise, the cryptocurrency market is on track to repeat this pattern — unless we make it more accessible. Doing this is primarily a design challenge. If we can create intuitive user experiences for cryptocurrency, the industry will be able to access a mainstream audience and reach the ambitious goal of a globalised, globalised currency. There are three primary areas of focus we can start working on right now, and Setheum is taking them head to head with payment solutions unlike any other to make a difference.

1. Easier onboarding
2. More everyday transactions
3. Organised storage
4. Reliability

Today, cryptocurrency is becoming so accessible everywhere, you can buy any cryptocurrency with your Visa or MasterCard today wherever you are whatever the time is.

Unlike cryptocurrency, mobile money is not as accessible as it seems to be, you have to deposit cash if you don’t have a bank account, whereas you can even get a cryptocurrency debit card for almost free without having to own a bank account in many places.

Mobile money though is more available OTC than cryptocurrency in many countries especially in developing countries like Nigeria where I’m from. During this pandemic though, the best solution is definitely not holding cash and to an extent not mobile money. Cash was quarantined here in China in the early days of the coronavirus, because it was reported to be an active agent for the spread of the epidemic which became a pandemic. And OTCs are not the best options for sure. Setheum Labs is working on that head to head with the development of the Setheum Blockchain that provides the best cryptocurrency system and payment system yet.

Cryptocurrency again won this category while mobile money fell behind.

### Reliability

I haven’t used any mobile money provider yet, but I’ve interviewed a couple of mobile money users from various countries in Africa and what I found out was surprising. As an average East African layman, mobile money does not give you the ability to transact between your family and friends or to even use it as a payment gateway for your storefront, your customer can’t buy something from you and send you the money directly. So basically mobile money is not a reliable replacement for cash nor is it a reliable remittance system.

Mobile money has a lot of reliability issues, one example is that operators / third party providers are involved, and they can increase or decrease fees as they wish, they can refuse to attend to a certain customer/user. They can bury transactions. They can go out of business anytime and they can leave certain areas / locations for others. It’s not done this way in cryptocurrencies and public blockchains like Setheum, Polkadot, Bitcoin, Ethereum et al. The blockchain is decentralized and it is very unlikely and almost impossible to go out of business. The blockchain fee structure is not controlled by a person or a few persons, it is governed by a global community.

Human errors are very unlikely especially in fully decentralised cryptocurrencies like Bitcoin and Setheum where the monetary policy implementation is fully algorithmic and on-chain, and all holders of Setheum coins have a say in the governance of the blockchain where you can propose a referendum and all coin holders can vote to pass it or not. Mobile money or anything else including banks come nowhere close to the reliability and community benefits of cryptocurrency. Check Setheum’s Monetary Mechanism for more on how the algorithmic and decentralized Setheum financial system works to eliminate the above reliability issues uniquely to make a difference.

Cryptocurrency again won this category while mobile money falls mega far behind.

Is mobile money more secure, is it more efficient, is it faster, is it cheaper, all these questions lead to a big NO! It’s a crystal clear answer and here is why.

Cryptocurrency vs Mobile money

In this newsletter, we will explore and break down complex technical concepts into simple, digestible terms, so everyone can understand and appreciate the world of technology. Our goal is to bridge the gap between technical jargon and everyday language, making it easier for everyone to understand the fundamental principles of these technologies.


 <img
 src="/images/posts/demystifying_ai/1.png"
 alt="Demystifying AI"
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We live in an age where technology is evolving at a rapid pace, and it can be challenging to keep up with the latest trends and developments. That’s why it’s essential to have a solid understanding of the fundamental principles that underlie these technologies. With a solid foundation in place, we can better understand and appreciate the innovations that are driving our world forward.

In each edition of “Decoded with Khalifa MBA,” we will explore a different topic, ranging from the basics of blockchain to the intricacies of AI and beyond. We will provide clear explanations of the underlying principles and how they apply in the real world. Along the way, we’ll also take a look at the latest developments and innovations in these fields, so you can stay up-to-date on the latest trends and emerging technologies.

I am excited to embark on this journey with you, and I hope that you find this newsletter both informative and enjoyable. I encourage you to share your thoughts and feedback with me, and feel free to suggest topics that you would like to see covered in future editions.

Artificial intelligence is an ever-growing field that has seen a tremendous increase in popularity and usage in recent years. It is a technology that enables machines to learn, reason, and perform tasks that would usually require human intervention. At its core, AI mimics the decision-making process of the human brain by analysing and processing data in a way that allows the system to recognise patterns, make predictions, and adapt to changing circumstances.

One of the most significant aspects of AI is machine learning, which involves training an algorithm to identify patterns within a dataset, using statistical models that enable the machine to learn and improve over time. There are two main types of machine learning: supervised and unsupervised learning.

Supervised learning involves providing labeled data to the algorithm, enabling it to make predictions based on a set of inputs. For instance, imagine you wanted to teach an algorithm to recognise the difference between pictures of cats and dogs. You would provide the system with a labeled dataset of images of cats and dogs, which it would then use to learn how to distinguish between the two.

On the other hand, unsupervised learning is where an algorithm is given an unlabelled dataset and tasked with finding patterns and relationships within the data. In this type of machine learning, the system is not provided with any prior knowledge of the data or what it represents, and instead, it must find similarities and patterns through statistical analysis.

Another essential concept in the field of AI is neural networks, which are computing systems modelled after the human brain’s structure and function. Neural networks consist of layers of artificial neurons that process input data and provide output based on a set of rules or functions. These layers can be connected in various ways, enabling the network to learn and adapt to new data inputs over time.

Deep learning is a subset of neural networks that involves training a neural network with multiple layers, allowing it to analyse and process complex data inputs. The multiple layers enable the network to recognise complex patterns and relationships within the data, providing highly accurate predictions and analysis.

Natural language processing (NLP) is another vital aspect of AI, which involves teaching machines to understand and interpret human language. NLP enables machines to process and analyse large amounts of text data, such as emails, social media posts, and news articles, to identify patterns, sentiments, and trends.

One of the most exciting and rapidly developing areas of AI is reinforcement learning, which involves training machines to make decisions based on the feedback they receive from the environment. In this type of learning, the machine is provided with a set of rules and goals and then rewarded or penalised based on its actions and decisions.

After deep diving into the technical concepts and principles of AI, it is clear that this field has the potential to revolutionise the world as we know it. From healthcare to finance, transportation to entertainment, AI is already making significant impacts in various industries.

However, with great power comes great responsibility. As we continue to develop and implement AI technologies, it is crucial that we prioritise ethics and consider the potential consequences of our actions. We must ensure that AI is being used to benefit humanity as a whole, rather than just a select few.

The journey to unlocking the full potential of AI is ongoing and there is still much to learn and discover. But with responsible development and usage, we can harness the power of AI to create a better future for all.

Thank you for joining me on this adventure, and I look forward to exploring the world of technology together.

Remember, knowledge is power when shared. So if you find these insights valuable, I encourage you to share this newsletter with your colleagues, friends, family, and anyone else who might be interested in these topics. Let’s work together to decode the most complex technical concepts and unlock their potential for real-world applications, and see you next time.

Best,

Khalifa MBA (Muhammad-Jibril B.A.)

We will explore and break down complex technical concepts into simple, digestible terms, so everyone can understand and appreciate the world of technology.

Demystifying AI

<img
 src="/images/posts/gamefi_trends_and_opportunities/1.png"
 alt="GameFi Trends and Opportunities"
 />


GameFi, derived from two very popular words, namely “gaming” and “finance”. It is a combination of Decentralised Finance (DeFi), which serves the financialization of the Games, and NFTs, which serve as collectibles embedded into the games, therefore DeFi and NFTs serving as both backend and frontend alongside the game engine. GameFi is financializing and democratizing fun and ownership in the metaverse.

GameFi makes it possible for gamers to earn while having fun in the games they play as well as owning their in-game digital assets such as avatars, costumes, land, and more. It also allows gamers and artists as well as developers to monetize their in-game creation as NFTs on the blockchain.


 <img
 src="/images/posts/gamefi_trends_and_opportunities/2.png"
 alt="GameFi Trends and Opportunities"
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As per August data (2022), GameFi as an industry, accounts for over half of the blockchain industry usage month-over-month(MoM). The data from a DappRadar survey based on the Unique Active Wallets(UAW) in the industry shows that there is around $698 million in transactions related to around 847,230 GameFi-related UAW. Despite the reduction in usage month-over-month(MoM) compared to July, the GameFi sector is still seeing enormous usage as well as enormous investments, we will get to that in a bit.

GameFi gamifies DeFi, financializes gaming, and commodifies NFTs in-game. CryptoKitties, Uniswap, Roblox, few would have thought that these 3 would be intertwined in one and even more fun. These together with a slightly different approach, advanced developer tools and great ideas, have evolved into what we now know as the GameFi industry. The now more complex NFT Games enable more than just creating, owning, and trading collectibles.

GameFi enables users to:
- Generate passive income from staking;
- Impact the state and development of the game by building virtual worlds and other in-game collectibles;
- Participate in the Governance of the Project;
- Develop/Import NFTs for in-game usage, i.e. weapons, tactical gears, costumes et al.;
- Participate in Complex Financial Operations in a fun environment and earn yield;

## Current GameFi Trends

In GameFi, games can evolve into their own ecosystems/mini-economies with vast in-game micro-economies. Axie Infinity has become its own mini-economy, generating around $2.3 billion revenue. In fact, Axie Infinity’s NFT marketplace is second only to OpenSea, at over $3.9 billion total trading volume. The factors that made this industry so successful and growing are many, but amongst them are the current trends that I mention below, here are the trends in the NFT Gaming industry (GameFi);

- GameFi Aggregators: Gamers on GameFi Aggregators can explore existing and upcoming games across multiple blockchains. Aggregators also allow users to manage their in-game NFTs, track earnings, and also demo mini-games. GameFi Aggregators are a one-stop shop for all tokens, promotions, game releases, and more. This is a huge investment opportunity, and aggregators will have the chance to further expand beyond gaming into other NFT realms such as music royalties, art collections, rentables, and more.
- GameFi player Guilds for new users: As the GameFi community pushes to include new gamers, one of the challenges is the upfront investment needed to get started. As Games become more costly to get started, there is a need to lower the entry barrier. For example, Axie Infinity costs over hundreds of dollars to purchase. That cost is pretty unaffordable for a lot of players. This is something game designers need to solve in the long run through the internal economics of their games. Until then, funding pools have formed Gaming Guilds to help beginners finance their initial expenses through “scholarships” in exchange for a revenue-sharing agreement.
- IGO (Initial Game Offering) Launchpads Kickstarting new Games: Like we’ve seen DeFi LaunchPads offering IEOs, ICOs, IDOs et al, there are also GameFi Launchpads that offer IGO, helping GameFi projects raise funds to build and launch their Games and provide it to the public. IGO investors fund a game’s development in return for discounts or access to special features before a game launches.
- NFT & Gaming Blockchains: Since CryptoKitties, the industry has realized that GameFi transactions can get pretty congested on a blockchain like Ethereum, taking more than 20% of all traffic on the Ethereum network back in 2017. Blockchains that are specifically catering to NFTs and gaming are growing as GameFi is growing too. These application specific blockchains are customized to handle GameFi operations.
- Traditional games starting to explore GameFi: Some of the major companies in the traditional gaming industry, such as Electronic Arts, Gameloft and others have recently got more interested in the GameFi industry and are focusing their attention on this lucrative industry. It would be amazing to have blockchains support the playing of their games.
- Traditional gamers switching to GameFi: Although traditional video games often encourage players to buy in-game items, the value of these assets is rarely allowed to be actively traded for freal-world currency. On the other hand, the NFT in-game assets in GameFi are recorded on the blockchain, meaning that these assets can be traded, transferred, and exchanged for fungible currency.

## Future Investment Opportunities in GameFi

GameFi is a rapid growing sector, and as it grows, there are some interesting future investments opportunities that will have investors knocking on the doors of the projects catering to the needs of this fast growing and lucrative industry with tonnes of funding, where do we see there projects with high potential that are placed for huge investment opportunities, here we go.

- Highly Scalable Projects:
Scalability is still a headache for many blockchains as it is a thirst waiting to be quenched for the GameFi sector. As Web3 gaming becomes more and more popular, more and more people become daily active users and perform a lot of transactions, current blockchain networks do not possess the ability to accommodate the large influx of GameFi users, therefore, scalability is a very attractive opportunity, definitely the most important of all categories as this opens new doors to possibilities that even further enhance all the industry as a whole making it easier, and cheaper for all GameFi business to operate on such a blockchain.

Any blockchain that solves this issue with efficiency and maintains a decent balance in the Trilemma Triangle will gain massive traction and the projects or games related to such blockchain could even be a challenge for traditional centralized games if it were to be highly scalable and on par with traditional systems. There are a lot of teams working tirelessly on bringing such solutions to the table for GameFi, some good examples are Setheum and Integritee.

- GameFi Aggregators:
GameFi spans across many different blockchains, with a plethora of projects scattered around these chains, bringing order to all this chaos are GameFi Aggregators, they unify GameFi projects and portfolios and control into one user interface, they allow multi-chain GameFi features to be unified and aggregated.

- Cross-Chain Metaverse Projects:
Cross-Chain is incredibly difficult to build and secure, with all the bridge hacks going on, the projects to win this category with efficient cross-chain GameFi solutions will win really big, so this is a huge future investment opportunity, and with tons of projects working to solve this problem, this won’t be waiting all that long.

- NFTs:
Non-Fungible-Tokens(NFTs) are the backbone of GameFi, as this industry grows and demand keeps momentum, NFTs and NFT projects especially Gaming NFTs will be a good investment opportunity. In-Game NFTs are trending and in-game spendings world-wide are at ATH(All-Time-High) and are expected to surpass $74 Billion USD by 2025.

- NFT Decentralized Storage:
NFTs need to be stored somewhere, decentralized storage projects like IPFS and Filecoin continue to grow due to the rapid growth of this industry, projects in this category will be a good investment opportunity as long as NFTs are in use , which no doubt they are and they are in high demand.

- Optimized Free-to-Play (F2P) GameFi Games:
The P2E (Play to Earn) model in GameFi is just a stepping stone for more advanced and optimized hybrid models, the most ideal strategy is to build with hybrid F2P-P2E-P2W(Free-to-Play, Play-to-Earn & Pay-to-Win) models in GameFi.

F2P-P2W(Free-to-Play & Play-to-Win) is a monetization model that has been used by a countless number of popular and well respected titles, such as Roblox, League of Legends, Pokemon Go, Candy Crush, PubG, Subway Surfers, Fortnite, and many more in the traditional gaming industry.

Some of the most popular and most successful games in this category have proven that the Free-to-Play(F2P) games can be highly lucrative in a Pay-to-Win(P2W) and F2P hybrid model, without having to adopt paywalls for users.

F2P games let users play with a low barrier of entry, which allows players to play for free and use the PEW model to let users pay for in-game perks, gears and performance advantages such as in-game characters, energy boosters, health kits, weapons, weapon-enhancers, costumes et al.

These P2W purchases are typically low-cost, but in scale, these small purchases aggregate to massive compounded profits for the game. It works for all participants — small players get to play for free without having to start with an expensive in-game NFT entry barriers, big players get to pay their way to enhancements and the game itself gets to generate enough revenue to improve the game, burn project tokens to benefit the token holders, hire more researchers, developers and designers, and pretty much do whatever they want.

Since most GameFi projects require an upfront investment, some very interesting investment opportunities in GameFi would be the games that have implemented or will implement some form of this hybrid model.

Some Free-to-Play(F2P) GameFi games are “gods Unchained”, “The Sandbox, “Guild of Guardians”, “Chainmonsters”, “Splinterlands”, “Coin Hunt World”, “Axie Infinity Scholarship”, “Town Star”, “Galaxy Fight Club”, “Mirandus”, “Town Crush”, “Spider Tanks”.

## Conclusion

Overall, the GameFi sector is an amazing place to have fun and make money, it has seen growth and massive investments over the years and will continue to see more growth and even more investments, this might just be the beginning of a new era, for gaming it is.

GameFi makes it possible for gamers to earn while having fun in the games they play as well as owning their in-game digital assets such as avatars, costumes, land, and more.

GameFi Trends and Opportunities

Fundamentals, Glossary, and Future of DeFi - All You Need To Know.

Introduction to DeFi

<img
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 alt="The Evolution Of The Blockchain — History and Generations"
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## Brief History

It all started in 1976, cryptographers Whitfield Diffie & Martin E. Hellman published their paper “New directions in cryptography”. David Chaum first proposed a protocol similar to Bitcoin in his thesis “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.” in the year 1982. Then S. Even, O. Goldreich, and Y. Yacobi published “Electronic wallet” later in 1983. Furthermore, since then we’ve seen inventions in this field being introduced by some of the most brilliant minds around, this gradually builds up and leads to what we know today as the “Blockchain” In 1998 yet again, Nick Szabo introduced the design of a mechanism for a decentralised digital currency he called “Bit Gold”. Though Bit Gold was never implemented, it has however been dubbed “the direct precursor to the Bitcoin architecture.” In Nick Szabo’s Bit Gold, a participant would dedicate computing power to solve cryptographic challenges (like puzzles). In the Bit Gold network, solved cryptographic hashes would go through a BFT (Byzantine Fault-Tolerant) public registry and be assigned to the public key of the participant/solver.

Each solution would become part of the next challenge, creating a growing chain of new challenges. This provided the Bit Gold network with a method to verify and time-stamp new Bit Golds, because unless a majority of the validation participants agree to accept new hash solutions, they couldn’t start on the next challenge. When attempting to design a digital currency, challenges like the “double-spending” problem arise. Once data has been created, reproducing it would simply be a matter of copy and paste. Most digital currencies would solve the problem by advocating some control over to a central authority, which keeps track of the account balances.

This was clearly an unacceptable solution for Nick Szabo, “I was trying to mimic as closely as possible in cyberspace the security and trust characteristics of gold, and chief among those is that it doesn’t depend on a trusted central authority,”said Szabo. The phrase and concept of “smart contracts” was also developed by Nick Szabo, with the goal of bringing what he calls the “highly evolved” practices of contract law to the design of trustless e-commerce protocols on the Internet. More papers were published to achieve fairly the same objective, a peer-to-peer trustless and secure electronic monetary equivalent. All these inventions were neglected and almost forgotten until when we needed them the most in the 2007–2008 financial crisis, what a crash, I had wish we saw the black swan coming earlier and took all preventive measures, but we just simply didn’t trust crypto, and now it’s proven us totally wrong, though it hurts to be wrong we have to admit we must transition to a better economic stability strategy.

On the 7th of April 2008, MICHAEL NÜSKEN published “WORKSHOP e€ (ELECTRONIC MONEY).” In the same catastrophic 2008, Blockchain was invented by a person under the alias of “Satoshi Nakamoto”, to serve as the public transaction ledger of the cryptocurrency “Bitcoin”. The identity of Satoshi Nakamoto remains unknown till date. The invention of the blockchain for the bitcoin network, made it the first digital currency to solve the “double-spending” (where one could spend a unit of exchange more than once) problem without the need for a trusted centralised authority. The bitcoin design has inspired many other applications and blockchains that are public, transparent. The blockchain is considered as a type of payment rail.

## Understanding The Blockchain

The blockchain is a decentralised, electronic ledger made up of blocks used to record transactions across distributed nodes such that any recorded block cannot be altered retroactively, without the alteration of all the subsequent blocks. This enables the participants to verify and audit transactions independently. A blockchain’s database is managed autonomously using a peer-to-peer network and a distributed timestamping server. They are authenticated collectively by participants with similar self-interests. The blockchain does away with having to trust a central authority or server, making it trustless and it is transparent to support auditing and ensuring readability.

## Blockchain Generations

- 1st Generation — Bitcoin (Cryptocurrency)
The 1st generation of the blockchain aimed at Cryptocurrency is the first implementation of distributed ledger technology (DLT). This allows financial transactions based on blockchain technology or DLT (for the sake of simplicity often seen as synonyms) to be executed with Bitcoin being the most prominent example in this segment. It is being used as A STORE OF VALUE, a digital payment system and can be seen as the enabler of an “Internet of Money”.

- 2nd Generation — Ethereum (Smart Contracts)
Ethereum blockchain aims to execute ‘Smart Contracts’ to reduce the cost of verification, execution and fraud prevention. They are independent computer programs that automatically execute predefined conditions. A DApp can have frontend code and user interfaces written in any language that can make calls to its backend, like a traditional App. But a Dapp can have its frontend hosted on decentralised storages such as Ethereums Swarm. [DApp = frontend + contracts (running i.e. on Ethereum)]

- 3rd Generation and Web3.0 (leapfrog)
The first generation of the Blockchain aims at solving the issue of double-spending and providing a decentralised and secure monetary system on the internet, and this is where Bitcoin lands as the first successful implementation of decentralised finance. The Second generation focuses on the programmability of the blockchain layer, to support a diverse range of application development on the blockchain, and that is when Ethereum was introduced that supports an EVM (Ethereum Virtual Machine) which is a programmable layer on the blockchain that allows the deployment of smart-contracts that can interact with each other on top of the blockchain.

The 3rd generation blockchain revolves around the idea of interoperability and the 3 Ss namely sustainability, scalability, and security. This is where we see Proof of Stake implementations that are environmentally friendly and an alternative to the legacy “Proof of Work” for long-term environmental sustainability with works like Polkadot and Setheum. Here we see decentralised storage like Filecoin, IPFS, and Chia that use Storage Consensus mechanisms. Here we see state upgradability without forking like in Polkadot and Setheum, we see on-chain built-in DeFi systems like in the case of Setheum. We also see layer 0 solutions like Polkadot and layer 2 solutions alongside many innovations in the blockchain and crypto space.

Remember, knowledge is power when shared. So if you find these insights valuable, I encourage you to share this newsletter with your colleagues, friends, family, and anyone else who might be interested in these topics. Let’s work together to decode the most complex technical concepts and unlock their potential for real-world applications, and see you next time.

Best,

Khalifa MBA (Muhammad-Jibril B.A.)

How it all started and where we are now in the evolution of the blockchain technology.

The Evolution Of The Blockchain — History and Generations

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 src="/images/posts/top_50_basic_ai_terms_you_should_know/1.png"
 alt="Top 50 Basic AI Terms You Should Know"
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Enjoy this piece, this one is about the top 50 AI Terminologies you should know. In this article, we will delve into 50 essential AI terms that will help you navigate the realm of intelligent machines and understand their inner workings.

1. Artificial Intelligence (AI): The simulation of human intelligence in machines, enabling them to perform tasks that typically require human intelligence.

2. Machine Learning (ML): A subset of AI that enables machines to learn from data and improve their performance without being explicitly programmed.

3. Deep Learning: A subfield of ML that focuses on training artificial neural networks with multiple layers to process complex patterns and make accurate predictions.

4. Neural Network: A computational model inspired by the human brain's interconnected neurones, used in deep learning to process and analyse data.

5. Natural Language Processing (NLP): The ability of machines to understand, interpret, and generate human language, enabling interactions between humans and computers through speech or text.

6. Computer Vision: The field of AI that enables computers to understand and interpret visual information from images or videos.

7. Robotics: The branch of technology that deals with the design, development, and operation of robots, often incorporating AI capabilities.

8. Algorithm: A step-by-step procedure or set of rules used to solve a specific problem or perform a particular task.

9. Data Mining: The process of extracting patterns and knowledge from large datasets using AI techniques.

10. Big Data: Extremely large and complex datasets that are challenging to process using traditional methods, often requiring AI tools for analysis.

11. Predictive Analytics: The use of historical data and statistical algorithms to make predictions about future events or outcomes.

12. Reinforcement Learning: A type of ML where an agent learns by interacting with an environment, receiving feedback or rewards for its actions.

13. Supervised Learning: A form of ML where a model learns from labeled data, with input-output pairs provided during the training process.

14. Unsupervised Learning: A type of ML where a model learns from unlabelled data, identifying patterns and structures on its own.

15. Transfer Learning: The practice of applying knowledge gained from one task to improve performance on another related task.

16. Overfitting: When an ML model performs well on the training data but fails to generalise well to new, unseen data.

17. Underfitting: When a ML model fails to capture the underlying patterns in the training data and performs poorly on both training and test data.

18. Bias: In AI, refers to the systematic errors or prejudices in data or algorithms that can lead to unfair or discriminatory outcomes.

19. Explainable AI: AI systems designed to provide transparent explanations for their decisions and actions, enhancing trust and accountability.

20. Chatbot: An AI-powered computer program that can simulate conversation with human users, often used for customer support or information retrieval.

21. Virtual Reality (VR): A computer-generated simulation of a three-dimensional environment, providing an immersive experience to users.

22. Augmented Reality (AR): Technology that overlays digital information or virtual objects onto the real-world environment, enhancing users' perception and interaction.

23. Singularity: A hypothetical point in the future when AI surpasses human intelligence and leads to exponential technological growth.

24. AGI (Artificial General Intelligence): AI systems that possess human-level intelligence and can understand, learn, and apply knowledge across different domains.

25. GPT (Generative Pre-trained Transformer): A state-of-the-art language model that uses transformers to generate human-like text.

26. Convolutional Neural Network (CNN): A type of neural network specifically designed for processing and analysing visual data, widely used in computer vision tasks such as image classification and object detection.

27. Recurrent Neural Network (RNN): A type of neural network that can handle sequential data by preserving information through time, making it suitable for tasks such as speech recognition and language translation.

28. Long Short-Term Memory (LSTM): A type of RNN architecture that addresses the vanishing gradient problem and can capture long-range dependencies in sequential data.

29. Generative Adversarial Networks (GANs): A framework consisting of two neural networks, a generator and a discriminator, competing against each other to generate realistic synthetic data.

30. Hyperparameters: Parameters that are set before the learning process begins and affect the model's behaviour, such as learning rate and batch size.

31. Feature Extraction: The process of automatically extracting relevant features or patterns from raw data, often used as a preprocessing step in ML tasks.

32. Ensemble Learning: A technique that combines multiple models to make more accurate predictions or classifications by leveraging the wisdom of the crowd.

33. Cluster Analysis: A method that groups similar data points together based on their characteristics, often used for data exploration or customer segmentation.

34. Natural Language Generation (NLG): The process of generating human-like language or text using AI techniques, often employed in chatbots or automated content generation.

35. Augmented Intelligence: The use of AI technologies to enhance human capabilities, combining the strengths of AI with human intelligence for better decision-making.

36. Edge Computing: Processing and analysing data near the source, reducing latency and dependency on centralised systems or the cloud.

37. Transformer: A powerful deep learning architecture that revolutionised natural language processing (NLP) tasks. Transformers employ a self-attention mechanism that allows them to capture long-range dependencies in sequences, making them highly effective in tasks such as machine translation, text generation, and sentiment analysis. Transformers have significantly advanced the field of NLP and have been widely adopted in various applications such as Chat-GPT due to their ability to handle large-scale sequential data efficiently.

38. Active Learning: A process where a model actively selects the most informative instances from a pool of unlabelled data for labelling, optimising the learning process.

39. Data Augmentation: The technique of artificially expanding a dataset by applying transformations or introducing variations, improving the model's robustness and generalisation.

40. Model Deployment: The process of deploying a trained AI model into a production environment, allowing it to make real-time predictions or provide services.

41. Interpretability: The ability to understand and explain how an AI model makes decisions or predictions, ensuring transparency and trust in its outputs.

42. Bias-Variance Tradeoff: The balance between the model's ability to fit the training data accurately (low bias) and its ability to generalise to new, unseen data (low variance).

43. Data Preprocessing: The steps taken to clean, transform, and prepare data before feeding it into an AI model for training.

44. Object Detection: A computer vision task that involves identifying and localising objects within an image or video.

45. Natural Language Understanding (NLU): The ability of AI systems to comprehend and interpret human language, enabling deeper understanding of user inputs.

46. Active Perception: The ability of an AI system to actively gather information from its environment to improve its perception and decision-making processes.

47. Model Optimisation: The process of fine-tuning and improving an AI model's performance by adjusting its parameters or architecture.

48. Federated Learning: A decentralised approach to ML where multiple devices or systems collaboratively train a shared model while keeping their data locally.

49. Autoencoder: A type of neural network used for unsupervised learning that learns to encode and decode data, often used for dimensionality reduction or anomaly detection.

50. Meta-learning: The study of algorithms or models that can learn to learn, acquiring knowledge and adapting to new tasks or environments more efficiently.

**Bonus**: Just a bit more for those staying all along.

1. Fine-tuning: A technique in machine learning and deep learning where a pre-trained model, often a large language model like GPT or BERT, is further trained on a specific task or domain to improve its performance. Fine-tuning involves updating the weights of the pre-trained model using task-specific data, allowing the model to adapt and specialise for the target task. This approach leverages the knowledge and generalisation capabilities already learned by the pre-trained model, resulting in improved performance and faster convergence on the specific task at hand. Fine-tuning is commonly used in transfer learning scenarios, where a pre-trained model is applied to a new task with limited available data.

2. Weights: In the context of artificial neural networks, weights refer to the parameters that determine the strength and influence of connections between neurones. Each connection in a neural network is assigned a weight, which represents the importance of that connection in the overall computation. During the training process, the weights are adjusted iteratively to minimise the difference between the predicted output and the actual output, allowing the network to learn and make accurate predictions. The values of the weights influence the behaviour of the neural network, determining how input data is processed and transformed as it propagates through the network's layers. The process of updating and optimising the weights is a crucial aspect of training neural networks and is typically done using optimisation algorithms such as gradient descent. Proper initialisation and adjustment of weights play a vital role in the performance and effectiveness of neural network models.

3. LLM (Large Language Model): Advanced AI models, such as GPT-3, trained on vast amounts of text data to generate human-like text and perform various language-related tasks like translation and understanding.

4. Quantisation: A technique in AI and machine learning that reduces the memory and computational requirements of neural networks by representing numerical values with lower bit precision, improving efficiency and enabling deployment on resource-constrained devices.

I hope this helps you grasp the fundamental concepts and terminology of Artificial Intelligence. Stay tuned for more exciting insights in the world of tech, AI etc. in the next edition of Decoded.

Remember, knowledge is power when shared. So if you find these insights valuable, I encourage you to share this newsletter with your colleagues, friends, family, and anyone else who might be interested in these topics. Let's work together to decode the most complex technical concepts and unlock their potential for real-world applications, and see you next time.

Best and Peace Be Upon You All,

Khalifa MBA (Muhammad-Jibril B.A.)

In this article, we will delve into 50 essential AI terms that will help you navigate the realm of intelligent machines and understand their inner workings.

Top 50 Basic AI Terms You Should Know

<img
 src="/images/posts/top_50_basic_ai_terms_you_should_know/1.png"
 alt="Top 50 Basic AI Terms You Should Know"
 />

In this article, we will explore 50 essential terminologies that will help you navigate the exciting realm of decentralised technologies and digital assets.

Blockchain: A distributed and decentralised digital ledger that records transactions across multiple computers, providing transparency, security, and immutability.
Cryptocurrency: A digital or virtual form of currency that uses cryptography for secure financial transactions, independent of central banks or governments.
Bitcoin (BTC): The first and most well-known cryptocurrency, introduced by an anonymous person or group of people using the pseudonym Satoshi Nakamoto.
Ethereum (ETH): A decentralised blockchain platform that enables the creation and execution of smart contracts and decentralised applications (DApps).
Smart Contracts: Self-executing contracts with predefined rules and conditions encoded on the blockchain, automating the enforcement and execution of agreements.
Decentralisation: The distribution of power, control, and decision-making across a network of participants, eliminating the need for a central authority.
Distributed Ledger Technology (DLT): A broader term that encompasses blockchain and other distributed ledger systems, highlighting their decentralised and transparent nature.
Consensus Mechanism: The method by which participants in a blockchain network agree on the validity of transactions and achieve consensus without a central authority.
Proof of Work (PoW): A consensus mechanism where participants solve complex mathematical problems to validate and add blocks to the blockchain.
Proof of Stake (PoS): A consensus mechanism where participants can validate and add blocks to the blockchain based on the number of coins they hold and "stake" in the network.
Cryptography: The practice of using mathematical algorithms and techniques to secure and protect data, transactions, and communications.
Wallet: A digital application or device used to store, manage, and interact with cryptocurrencies, enabling users to send, receive, and monitor their digital assets.
Public Key/Private Key: A pair of cryptographic keys used in asymmetric encryption systems. The public key is shared publicly for encryption, while the private key is kept secret for decryption and digital signature generation.
Private Key: A unique and confidential string of characters generated by a cryptocurrency wallet that serves as the owner's digital signature and grants access to their funds. It should be securely stored and kept secret to prevent unauthorised access.
Public Key: A cryptographic key that is derived from the private key and used for encryption and verification purposes. It is openly shared with others to receive encrypted messages or verify digital signatures. The public key is essential for securely interacting with others in the blockchain network.
Token: A digital representation of an asset or utility on a blockchain, often used for fundraising in Initial Coin Offerings (ICOs) or as a means of accessing services within a decentralised ecosystem.
Altcoin: Any cryptocurrency other than Bitcoin, including popular ones like Ethereum, Ripple, Litecoin, and many others.
ICO (Initial Coin Offering): A fundraising method in which new cryptocurrency tokens are offered to investors in exchange for established cryptocurrencies like Bitcoin or Ethereum.
ICO Whitelisting: A process in which participants register their interest or identity before an ICO launch, often to ensure fairness, security, and compliance with regulations.
Initial Exchange Offering (IEO): A fundraising method where a cryptocurrency exchange facilitates the sale of tokens on behalf of a project, often providing an additional layer of credibility and security.
Fork: A split or divergence in the blockchain network, resulting in two separate chains with different rules and protocols. Forks can be hard forks (irreversible split) or soft forks (backward-compatible split).
Mining: The process of validating and adding new transactions to the blockchain by solving complex mathematical problems, often associated with the PoW consensus mechanism.
Hash Function: A mathematical algorithm that takes input data and produces a fixed-size string of characters, commonly used for data integrity and security in blockchain networks.
Block Explorer: An online tool or platform that allows users to explore and track transactions, addresses, and blocks on a blockchain network.
Peer-to-Peer (P2P): A decentralised network architecture where participants can directly interact and transact with each other without intermediaries.
Immutable: In the context of blockchain, it refers to the inability to modify or alter data or transactions once they have been recorded on the blockchain, ensuring data integrity and transparency.
Forking: The process of creating a new blockchain protocol or software version from an existing one, often resulting in a separate and independent network with different features or rules.
DApp (Decentralised Application): An application built on a blockchain platform that operates without a central authority, leveraging smart contracts and blockchain technology for functionality and security.
Gas: In Ethereum, gas refers to the unit of measurement for computational work required to perform transactions or execute smart contracts on the network.
Private Blockchain: A blockchain network restricted to a specific group or organisation, often used for internal processes, consortiums, or private applications.
Public Blockchain: A blockchain network that is open and accessible to anyone, allowing anyone to participate, validate transactions, and contribute to the network's security.
Permissionless: Describes a blockchain or cryptocurrency network that allows anyone to participate, transact, and validate transactions without requiring permission from a central authority.
Permissioned: Refers to a blockchain network where participation, transaction validation, or access to certain functionalities is restricted and requires permission from a central authority.
Hard Wallet: A physical hardware device, such as a USB-like device, designed to securely store private keys and facilitate secure cryptocurrency transactions.
Soft Wallet: A software-based digital wallet application that runs on computers, smartphones, or other electronic devices, allowing users to manage their cryptocurrencies.
Merkle Tree: A tree-like data structure used in blockchain networks to efficiently verify the integrity and authenticity of large sets of data, improving performance and security.
51% Attack: A situation where a single entity or group of participants controls a majority (51% or more) of the computational power in a blockchain network, potentially allowing them to manipulate transactions or double-spend coins.
Stablecoin: A type of cryptocurrency designed to minimise price volatility by pegging its value to an external reference, such as a fiat currency or commodity, or by other innovative technologies such as PID Controllers and algorithms in the case of unpegged stablecoins.
Decentralised Exchange (DEX): A cryptocurrency exchange that operates on a decentralised network, allowing users to trade digital assets directly with each other without the need for a centralised intermediary.
Cold Storage: The practice of storing cryptocurrencies offline, typically on hardware devices or paper wallets, to enhance security and protect against hacking or online threats.
Airdrop: The distribution of free tokens or cryptocurrencies to a specific group of users as a promotional or marketing strategy.
Hashrate: A measure of the computational power or processing capacity dedicated to mining in a blockchain network, often used to gauge network security and mining efficiency.
Scalability: The ability of a blockchain network to handle an increasing number of transactions or users without sacrificing performance or efficiency.
Tokenisation: The process of representing real-world assets or rights as digital tokens on a blockchain, enabling fractional ownership and increased liquidity.
Whitepaper: A document that outlines the technical details, features, and objectives of a blockchain project or cryptocurrency, often used to provide information to potential investors or stakeholders.
Sharding: A technique aimed at improving blockchain scalability by partitioning the network into smaller, more manageable subsets called shards, each capable of processing transactions independently.
Governance: The decision-making process and mechanisms for managing and updating the rules, protocols, and parameters of a blockchain network, often involving consensus among network participants.
Cryptocurrency Exchange: An online platform where users can buy, sell, and trade cryptocurrencies for other digital assets or traditional fiat currencies.
Block Reward: The incentive provided to miners in the form of newly created cryptocurrency tokens for successfully mining and adding a new block to the blockchain.
Cryptocurrency Wallet Address: A unique identifier associated with a cryptocurrency wallet, used to receive or send digital assets within the blockchain network.

**Bonus**: Just a bit more for those staying all along.

1. Oracles: In blockchain, oracles are trusted sources of external data or events that provide off-chain information to smart contracts. They enable blockchain networks to interact with real-world data, such as weather conditions, stock prices, or sports scores, facilitating the execution of smart contracts based on real-time information.

2. Hard Fork: A type of fork in a blockchain network where a change in the protocol or rules results in a permanent divergence from the previous version. Hard forks require all participants to upgrade their software to the new version to continue participating in the network.

3. Gas Limit: In Ethereum, gas limit refers to the maximum amount of computational work or operations that can be included in a block. Miners can adjust the gas limit to control the block size and prevent abuse of the network's computational resources.

4. Fiat Currency: Traditional government-issued currencies such as the US Dollar, Euro, or British Pound, which are not backed by a physical commodity but are widely accepted as a medium of exchange. Fiat currencies are often used as a reference point for the value of cryptocurrencies in trading and conversions.

5. DDoS (Distributed Denial of Service): An attack where multiple compromised devices are used to flood a network or server with an overwhelming amount of traffic, disrupting its normal functioning.

6. Whale: A term used to describe an individual or entity that holds a significant amount of cryptocurrency, capable of influencing market prices due to their large holdings.

I hope this helps you grasp the fundamental concepts and terminology of Artificial Intelligence. Stay tuned for more exciting insights in the world of tech, AI etc. in the next edition of Decoded.

Remember, knowledge is power when shared. So if you find these insights valuable, I encourage you to share this newsletter with your colleagues, friends, family, and anyone else who might be interested in these topics. Let's work together to decode the most complex technical concepts and unlock their potential for real-world applications, and see you next time.

Best and Peace Be Upon You All,

Khalifa MBA (Muhammad-Jibril B.A.)

In this article, we will explore 50 essential terminologies that will help you navigate the exciting realm of decentralised technologies and digital assets.

50 Essential Crypto and Web3 Terminologies You Should Know

<img
 src="/images/posts/web3_explained/1.png"
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## The Web — A Brief History Of The Internet

The way we communicate and access information has been completely transformed by the internet. The internet’s history is sometimes forgotten, despite the fact that it has become an essential part of our daily lives.
The United States Department of Defense created a system named ARPANET in the 1960s to facilitate information exchange between academic institutions, and this is where the internet had its start.

Researchers could share data and work together on projects thanks to this network, which was made up of a number of interconnected computers.
In the decades that followed, the internet quickly developed. The first emails were sent and the first online message boards were set up in the 1970s. Domain Name Ssystems were created in the 1980s, enabling people to visit websites with the help of user-friendly URLs.

While employed at CERN in 1989, British scientist Tim Berners-Lee created the World Wide Web (WWW). To satisfy the need for automated information-sharing amongst scientists in universities and institutes around the world, the Web was initially designed and developed. It eventually developed into a massive network of interconnected computers and gadgets that allowed users to communicate, work together, and access information from anywhere in the world.

The dissemination of information was the main objective of the Web1 generation of the internet. Users were passive consumers of content who did not actively contribute to its development or distribution in this static, one-way communication system.

We now utilise the internet very differently as a result of Web2, the second generation of the internet. It brought social media, online markets, and other interactive platforms that let people connect with one another, produce and share content, and conduct online business. Users can now navigate the internet using a graphical user interface instead of difficult command lines thanks to the development of web browsers.

The internet has expanded and changed ever since. E-commerce platforms have revolutionised the way we shop and do business, while social media platforms have made it simpler than ever to interact with others and exchange information. The internet has altered the world in innumerable ways and has become a necessary instrument for communication, education, and business. The internet will continue to develop and change our lives in ways we can’t even begin to anticipate as time goes on.

## What Is Web3?

Web3 is a decentralised architecture that utilises a range of technologies to create a more user-centric and open internet. While blockchain technology is a critical component of Web3, it also incorporates other decentralised technologies such as peer-to-peer networks, decentralised storage systems, and cryptographic protocols. By offering a framework for the development of decentralised applications (DApps) and smart contracts, Web3 intends to give people more control over their data and digital identities. Web3 has the potential to revolutionise the way we communicate with digital services and one another by getting rid of middlemen and building a more open and democratic internet.

### Types Of Web3 Systems

Web3 systems come in a variety of forms, each with unique characteristics and features. Some of the most popular ones include:

- **Decentralised Finance (DeFi)**: A form of financial system based on blockchain technology that enables users to carry out a variety of financial activities — including lending, borrowing, and trading — without the aid of middlemen like banks or other financial organisations.

- **NFTs (Non-Fungible Tokens)**: A class of digital asset that signify ownership of a special good or asset, like a work of art, a piece of music, or a collectible. NFTs are built on blockchain technology, which makes them verifiable and immutable.

- **Social Media Platforms**: Web3 social media platforms want to give users more privacy and data control. Instead of having their data owned and controlled by centralised social media firms, they are based on decentralised networks that enable consumers to own and control their data.

- **Decentralised Autonomous Organisations (DAOs)**: A DAO is a form of organisation that runs on a decentralised network and is controlled by smart contracts. It makes it possible for decision-making to be transparent and decentralised, providing stakeholders more influence than a centralised authority.

- **Web3 Marketplaces**: Web3 marketplaces are decentralised systems that let buyers and sellers conduct business directly with one another. Blockchain technology is utilised by these marketplaces to offer transaction security, transparency, and trust.

These are only a few of the several varieties of Web3 systems that are being created. We expect to see more ground-breaking and disruptive uses for Web3 as it develops.

### Benefits Of Web3

Web3 has several benefits that make it a promising technology for the future of the internet. Some of these benefits include:

1. **Enhanced Security**: Web3 technologies are based on decentralised networks that employ cryptography and disperse data among a number of nodes, resulting in enhanced security. Because of this, it is very challenging for hackers to infiltrate the network and steal or corrupt data.

2. **Improved Transparency And Accountability**: With Web3, all transactions are recorded on a public blockchain that anyone can access. This implies that all parties to a transaction may confirm its authenticity and guarantee that it was correctly carried out. Users may trace and confirm transactions, which promotes accountability and transparency.

3. **Reduced Middlemen**: Peer-to-peer transactions are made possible on Web3, which eliminates the need for intermediaries like banks and payment processors. This leads to faster and cheaper transactions.

4. **Decentralisation**: It is built on decentralised technologies such as blockchain, which means that no single entity controls the network. This makes it more resilient and less prone to censorship.

5. **Ease of Monetisation**: It allows creators to monetise their content directly, without the need for intermediaries. This means that artists, writers, musicians and other content creators can earn a fairer share of the revenue generated by their work.

6. **Content and Data Ownership**: It lets users own and control their data, content and digital identities, which promotes greater privacy and security. This means that they can decide who has access to their data and how it is used. This is in contrast to the current centralised internet, where data is often collected and used without users’ consent.

Web3 offers a range of benefits over the current centralised internet. Its decentralised systems, enhanced security, improved transparency, and reduced reliance on intermediaries make it a promising technology for the future. Additionally, its ease of monetisation and content and data ownership features provide greater control and autonomy for users.

### Challenges Of Web3

While Web3 has many benefits, it also faces several challenges that must be addressed. Some of these challenges include:

- **Technical Complexity**: Because Web3 technologies are still in their infancy, they might be challenging to utilise for both users and developers.

- **Lack Of Scalability**: Web3 systems are currently not capable of handling high numbers of transactions due to their limited level scalability.

- **Regulatory Uncertainty**: For some sectors of Web3’, the regulatory environment is still unclear, which could be concerning to users and developers.

### Criticisms Regarding Web3:

Web3 offers an intriguing vision of a decentralised internet, but it is not without its criticisms. The following are some of the criticisms of Web3, along with my counterarguments:

- **Lack Of User-Friendliness**: The fact that Web3 can be challenging for the average person to use is one of its critiques. Decentralised applications (DApps)’ user interfaces might be challenging because the technology is still in its infancy.
Although Web3 is still in its infancy and can be difficult to use, efforts are being made to make it more usable for the average person. For instance, many Web3 initiatives are spending money to make their user interfaces easier to use. Additionally, it’s likely that user-friendliness will receive more attention as Web3 gains popularity.

- **Scalability Issues**: Web3 is also criticised for its present scalability issues. The low transaction throughput of many blockchain-based systems can cause lengthy transaction delays and expensive transaction fees.
Scalability is a legitimate concern, however there are a number of ways being developed to deal with it. For instance, layer-two scaling techniques like sidechains and state channels can speed up transactions without compromising security. Additionally, the development of consensus algorithms that use less energy can lessen the environmental impact of Web3 technologies.

- **Lack Of Interoperability**: Some critics argue that it is challenging to develop truly decentralised applications due to the lack of interoperability between various Web3 systems.
To solve this issue, though, there are currently initiatives in place. For instance, the creation of universal smart contract languages like Solidity and Move can aid in standardising the creation of smart contracts on many platforms. To facilitate smooth communication between various blockchains, cross-chain interoperability solutions like Setheum, Polkadot and Cosmos are also being created.

- **Increased Inequality**: Web3 has been heavily criticised for its potential to increase inequality, as early adopters may benefit more than others who join the game later. Early adopters, according to critics, are likely to have greater access to resources and technological knowledge, giving them an advantage in the emerging decentralised economy.
It’s crucial to keep in mind that while this might be the case in the near future, Web3 could eventually level the playing field. Decentralised networks enable more democratic engagement, enabling everyone to take part in the new economy and support its expansion.

- **Risk Of Centralisation**: Web3 is also criticised for not being genuinely decentralised because many projects are still in charge of a small number of developers or organisations with substantial control over the network. The present centralised internet may have similar problems as a result of this.
Decentralisation, according to Web3 proponents, is a spectrum, and even a partially decentralised system can provide significant advantages over a fully centralised one. In addition, the open-source nature of many Web3 initiatives enables increased community participation and monitoring, aiding in the reduction of power concentration.

Although Web3 has its difficulties, there are a lot of reasons to be optimistic about its future. Many of the current Web3 criticisms are likely to be addressed in the future with continued development and investment.

### Some Popular Web3 Projects:

Despite these concerns, there are already several popular Web3 projects that are gaining traction. Here are a few examples:

- **Ethereum**: A blockchain platform that allows developers to create and deploy decentralised applications (dApps) and smart contracts.

- **Filecoin**: A decentralised storage network that enables users to securely and effectively store, retrieve, and exchange files.

- **Setheum**: A Secure And Interoperable Decentralised Network for universal interoperable Smart Contracts. It aims to improve upon Web3 and solve the blockchain trilemma by using a mixture of approaches to improve scalability, security, mass adoption, diversity, and ethics while preserving decentralisation and democratisation.

- **Polkadot**: A platform that enables data sharing and communication between several blockchain networks.

- **Brave**: A web browser that prioritises privacy and lets users receive cryptocurrency rewards for watching adverts.

- **IPFS**: A protocol for decentralised file storage and sharing.
Uniswap: A decentralised exchange for trading cryptocurrencies and providing liquidity.

- **OpenSea**: A web3 marketplace for finding, buying, and trading NFTs.

### Conclusion:

Web3 is a quickly developing technology that has the ability to completely change how we communicate online and with one another. Web3, which is still in its early phases, has the potential to alleviate many of the problems that the present centralised internet is experiencing, including worries about data privacy and security and an uneven distribution of power and resources.

But there are also issues and criticisms that need to be addressed, just like with any new technology. For Web3 to be created in a way that maximises its advantages and minimises its possible downsides, developers, entrepreneurs, and policymakers must collaborate. Web3 has the potential to bring in a new era of a decentralised, democratic, and equitable internet with the correct strategy.

Recognising the technology’s potential to revolutionise the internet as we know it is crucial, as is approaching it with an open mind. Web3 has the ability to develop more democratic and transparent government structures, as well as more egalitarian and transparent economic systems, while simultaneously giving users more privacy and security.

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