Tutorials:Web3 Introduction: Difference between revisions
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Only the network nodes interact directly with the blockchain. Most users interact via Internet using special software called a Wallet. Giving the impression that it is the place where you keep your coins, but it isn´t. | Only the network nodes interact directly with the blockchain. Most users interact via Internet using special software called a Wallet. Giving the impression that it is the place where you keep your coins, but it isn´t. | ||
In crypto, the only thing you have is a private key, used to transfer the property of the coins from | In crypto, the only thing you have is a private key, used to transfer the property of the coins from the address associated to the private key, to another address. The coins live in the blockchain, and you can loose your phone or computer, and no coins will be lost. | ||
But if you loose your private keys there is no way to recover your coins. | But if you loose your private keys there is no way to recover your coins. | ||
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The number of possible 12 word combinations is very large. The probability of finding a Master private key this way is comparable to the probability of finding X | The number of possible 12 word combinations is very large. The probability of finding a Master private key this way is comparable to the probability of finding X | ||
Breaking a modern Bitcoin/Ethereum seed phrase by brute force is computationally hopeless because of the number of possible seeds is astronomically large. Even if an attacker had unrealistically massive hardware that could test trillions of seeds per second, the expected time to hit the right 12-word seed would still be around 10¹⁹ years, vastly longer than the age of the universe. | |||
In practice, successful “wallet hacks” almost never come from cracking the cryptography; they come from mistakes like weak passphrases, phishing, malware, leaked backups, or someone exposing their words. | |||
=The Most Important Safety Lesson In Crypto= | =The Most Important Safety Lesson In Crypto= | ||
Revision as of 00:10, 8 January 2026
The term Web 3 refers to using the Internet to interact with cryptocurrencies.
Crypto 101
A cryptocurrency involves 3 components:
- A computer network sharing a protocol for validating and updating a shared data structure called a Block-chain.
- The Block-Chain, that keeps track of all transactions of the base digital assets.
- And the digital assets themselves.Very special data structures that can be "owned" as physical objects do, often called coins, or tokens.
Although there are tens of thousands of cryptocurrencies, there are two basic design principles, exemplified by Bitcoin and Ethereum. Bitcoin was designed to be a decentralized peer to peer cash system, and Ethereum was designed as a decentralized virtual machine, expanding the idea of decentralization to computing itself.
Wallet
Only the network nodes interact directly with the blockchain. Most users interact via Internet using special software called a Wallet. Giving the impression that it is the place where you keep your coins, but it isn´t.
In crypto, the only thing you have is a private key, used to transfer the property of the coins from the address associated to the private key, to another address. The coins live in the blockchain, and you can loose your phone or computer, and no coins will be lost.
But if you loose your private keys there is no way to recover your coins.
The Wallet software does not hold or contain the coins, instead it contains a Master Private Key used to generate addresses (on Bitcoin) or accounts (on Ethereum), which are the places where you transfer the property to and from.
The Wallet Seed
The Master private key is characterized by a set of twelve words, called the seed, that are enough to recreate all your private keys. If you have your 12 words you can install a wallet software anywhere and load your private keys to access your coins.
The number of possible 12 word combinations is very large. The probability of finding a Master private key this way is comparable to the probability of finding X
Breaking a modern Bitcoin/Ethereum seed phrase by brute force is computationally hopeless because of the number of possible seeds is astronomically large. Even if an attacker had unrealistically massive hardware that could test trillions of seeds per second, the expected time to hit the right 12-word seed would still be around 10¹⁹ years, vastly longer than the age of the universe.
In practice, successful “wallet hacks” almost never come from cracking the cryptography; they come from mistakes like weak passphrases, phishing, malware, leaked backups, or someone exposing their words.
The Most Important Safety Lesson In Crypto
All you really have is your twelve words. If you loose them, you loose everything.
Permissions
The wallet software is used to interact with websites. It handles the permissions and authorizations granted to the website over your coins.
More on Safety
A direct attack by hackers to the blockchain is nearly impossible at this stage. There are public bitcoin addresses with thousands of Bitcoins that remain untouched for years. The weak point in security is keeping the private keys safe.
We will list some of the dangers you have to avoid
The most common and dangerous issue is loosing your wallet seed. Spyware finds your wallet password and funds are moved when you connect your wallet.
Seasonal Tokens Overview
We will use Seasonal Tokens as an example because its four smart contracts form a self-contained ecosystem that can be studied independently from external market conditions, by paying attention to the price of the tokens relative to each other, and not measured in Ether or USD.
It is an innovative experiment in cryptocurrency technology, where the four tokens apply the economic principles of Bitcoin’s design:
- Digital commodities produced by Proof of Work mining,
- Limited total supply.
- Decreasing rates of production
- Regular Halvings
- No governance, totally trust-less and decentralized
- No Initial Coin Offerings, pre mining or any advantage to developers.
However, instead of using four separate blockchains, they operate within the Ethereum Virtual Machine. This setup provides a fully closed ecosystem where users can gain hands-on experience in a relatively low-risk environment.
Four ERC-20 Token Smart Contracts:
- Spring, Summer, Autumn and Winter.
- Proof of Work mined on the Ethereum Network.
- Maximum Supply 37 million tokens of each type.
- Halving of Mining Supply every 3 years.
The four tokens smart contracts are independent, they do not interact with each other, and they are identical, except for 3 things:
- The name
- Initial rate of supply
- The Halving schedule, arranged in time so that every nine months the fastest token to produce becomes the slowest to produce.
Seasonal Tokens are mined on the Ethereum network. The cost of electricity, equipment and gas fees establish a connection with the real world economy giving the tokens a basic cost of production.
However, operating in the Ethereum network is expensive, for this reason the Polygon network is used for trading at a minimal cost.
To learn more: