Job Interview
Do You Want to Work in Web3?
In this article, we will review the basic concepts you must know before attending an interview for a position in Web3. Whether you have a technical or commercial profile, this guide will help you understand the fundamental terms and technologies of Web3, preparing you to stand out in the selection process.
Basics
What is Web1?
Web1 was the first phase of the Internet, where most participants were content consumers. It was about serving static content instead of dynamic HTML.
What is Web2?
Web2 is the interactive and social web, where users not only consume content but also create and share it.
What is Web3?
Web3 is the decentralized Internet. It provides natively integrated payments and self-governance, eliminating the need for centralized intermediaries.
What is consensus?
Consensus is the agreement on what (usually transactions) has happened and what has not. It is fundamental to maintaining the integrity of a decentralized network.
What is decentralization?
Decentralization is the opposite of centralization. It means that power, control, or trust is not concentrated in a few people but is distributed among many or all.
What is a decentralized ledger?
It is a database that is kept by a group of people and updated at regular time intervals. This ensures transparency and immutability of the records.
What is a DAO?
DAO is an acronym for Decentralized Autonomous Organization. It is an organization governed by code instead of leaders. In its simplest form, it can be described as a chat group with a shared bank account.
What is the difference between an NFT and a fungible token?
NFTs are unique digital assets, like artworks and collectibles, and are not interchangeable. Fungible tokens, like ether or Bitcoin, are divisible and replaceable.
What is the difference between a coin and a token?
A digital coin is a native asset of its own blockchain (BTC, ETH). Tokens are created on existing blockchains (all ERC-20 tokens).
What is the difference between layer 1 and layer 2 networks?
A layer 1 network describes the primary underlying blockchain responsible for transaction settlement. Layer 2 networks expand the functionality of their layer 1 counterpart by improving transaction speed or reducing costs. A layer 2 solution is not itself a blockchain (e.g., Arbitrum for Ethereum).
What is a sidechain?
A sidechain is a blockchain linked to another main blockchain (e.g., Liquid Network for Bitcoin, Polygon for Ethereum).
What is DeFi?
DeFi is an acronym for decentralized finance. It is a general term for peer-to-peer financial services like earning interest, borrowing, and lending cryptocurrencies.
What is a crypto wallet?
Crypto wallets store your private key and allow you to send and receive cryptocurrencies using a user-friendly interface. Technically, crypto wallets do not store your cryptocurrencies; if you lose your private keys, you lose access to your money.
Organize the terms "decentralization", "bitcoin", "cryptocurrency", "consensus" and "blockchain" from general to specific.
Consensus -> decentralization -> blockchain -> cryptocurrency -> bitcoin
What are dApps?
Decentralized applications (dApps) are digital applications whose backend code (smart contracts) runs on a decentralized network instead of a centralized server.
### Blockchain and Alternatives to Blockchain
What is a blockchain?
A blockchain is a digital file consisting of records. The number of records grows in regular time blocks. All records are linked together using cryptography. For a blockchain to be decentralized, it must be distributed to a group of people.
Why are blockchains resistant to data modification?
Because once recorded, the data in any block cannot be altered retroactively without altering all subsequent blocks.
What are the three factors of the blockchain trilemma?
Security, decentralization, and scalability. You can only choose two.
What problem does a blockchain solve?
It allows digital information to be stored immutably without a centralized authority.
Explain an alternative to blockchain.
In a Directed Acyclic Graph (DAG), transactions are directly linked to each other instead of being grouped and processed in blocks. This makes DAGs more scalable in theory.
Can a transaction be "hidden" on a blockchain?
Transactions cannot be hidden. All transactions are public.
Where are transactions stored on a blockchain?
In a blockchain, a transaction is stored in a "block". These blocks are kept on nodes that are part of the network.
What is a miner?
Miners are nodes that receive rewards for verifying transactions and maintaining the integrity of the network.
What is a hard fork?
Hard forks are protocol changes that are not compatible with the previous version of the cryptocurrency. The chain splits into two and participants can choose to operate on either version. Immediately after a fork, the two resulting chains share the same transaction history.
What is a soft fork?
Unlike a hard fork, soft forks are backward compatible. They do not significantly impact protocol change and participants can operate within the network without updating their software.
How does Proof of Work work?
The core principle behind PoW consensus is solving a complex mathematical problem. The first miner to find the correct solution publishes it across the network and receives a cryptocurrency reward provided by the protocol. The downside is that it requires a lot of computational power.
How does Proof of Stake work?
It is a cryptocurrency consensus mechanism. PoS tries to deal with the main disadvantage of PoW. The core principle behind PoS is that cryptocurrency owners can stake their crypto assets. From these so-called "validators," one is randomly selected to "mint" a new block. The more coins a person stakes, the higher the probability of being selected.
What is a proof of work nonce?
A nonce plays a crucial role in the mining process with PoW. The nonce is the missing piece of the puzzle needed to discover the next block.
What does "nonce" mean?
"Nonce" means "Number Used Only Once".
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To be continued...
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