Lesson 4 dc88702f7c2b4ecd8ad8aab42fab3155
Lesson 4
Metholodogy: flipped classroom: 1 hour self study material + 1 hour class discussion with the teacher + 1 hour Q&A or practical activities with the team if needed
- Ethereum and Smart Contracts
- All the applications that can be built on Smart Contracts
- Different types of tokens
- The evolution of web: Web1, Web2, Web3
- Challenges of Web3 (pros and cons)
Lesson plan
Ethereum and Smart Contracts
- What is Ethereum: a decentralized platform that allows for the creation and execution of Smart Contracts (decentralized computing power)
- What are are Smart Contracts: self-executing contracts with the terms of the agreement written into code
- Examples of smart contracts:
- Simple contracts to buy and sell goods or services
- Decentralized Voting: Smart contracts can be used to create a decentralized voting system that is transparent and tamper-proof, reducing the risk of fraud and corruption.
- Supply Chain Management: Smart contracts can be used to track the movement of goods through a supply chain, from the manufacturer to the retailer, ensuring that each party is held accountable and the process is transparent.
- Insurance: Smart contracts can be used to automate the process of paying out insurance claims, using predefined criteria to trigger payments automatically and ensuring that the process is fair and transparent.
- Real Estate Transactions: Smart contracts can be used to automate the process of buying and selling real estate, reducing the need for intermediaries and streamlining the process for all parties involved.
- Gaming: Smart contracts can be used to create decentralized games that run on the blockchain, with rules and outcomes that are enforced automatically, ensuring that the game is fair and transparent.
- Identity Verification: Smart contracts can be used to verify the identity of users on a platform, reducing the risk of fraud and identity theft.
- Crowdfunding: Smart contracts can be used to automate the process of crowdfunding, ensuring that funds are released only when certain conditions are met, such as reaching a certain funding threshold or completing a project.
- Benefits of smart contracts: transparency, security, and efficiency
- Dapp: (short for decentralized application) is a software application that is built on a blockchain platform, such as Ethereum, and is designed to be decentralized, meaning that it is not controlled by a single entity or organization (they typically use smart contracts). Comprehension check: what are smart contracts?.
Some common features of dapps include immutability, meaning that data stored on the blockchain cannot be altered or deleted, and transparency, meaning that all transactions and activities are visible to anyone on the network.
- Comprehension check questions: what are the differences between Ethereum and Bitcoin?
- Examples of some popular dApps (decentralized applications) built on the Ethereum network, (CryptoKitties, Uniswap)
Different types of tokens
- Differences between a Token and a Coin
- Introduce ERC tokens and explain that they are a type of cryptocurrency token that are built on the Ethereum blockchain.
- Explain that there are different types of ERC tokens, each with their own unique characteristics and use cases.
ERC-20
- Explain that ERC-20 tokens are the most common type of ERC token and are used for a variety of purposes, such as fundraising, voting, and loyalty programs.
- Examples of ERC-20 tokens functions:
- Currency: ERC-20 tokens can be used as a medium of exchange, similar to traditional fiat currency. For example, the USDC token is an ERC-20 token that is pegged to the US dollar, and can be used for transactions on the Ethereum blockchain.
- Utility: ERC-20 tokens can be used to access specific services or features within a decentralized application (dApp). For example, the Golem Network Token (GNT) is an ERC-20 token that is used to pay for computing resources on the Golem network.
- Governance: ERC-20 tokens can be used to give holders voting rights on decisions related to the project or dApp. For example, the Augur token (REP) is an ERC-20 token that is used for decentralized prediction markets, and token holders can vote on proposed changes to the platform.
ERC-721
- Explain that ERC-721 tokens are non-fungible tokens (NFTs) that are used to represent unique assets, such as digital art, collectibles, and game items.
- Examples of popular ERC-721 tokens, such as Boread Apes, Metaverse lands, Gaming NFTs, NBA Top Shots, POAPs
ERC- 1155
- Explain that ERC-1155 tokens are a newer type of token that can represent both fungible and non-fungible assets.
Evolution of Web
Web 1
- Explain that Web1, also known as the "static web," refers to the early days of the internet, when websites were primarily made up of simple HTML pages that displayed static information.
- Examples of the first websites, online directories, and static news websites to illustrate the characteristics of Web1.
- Discussion: the limitations of Web1, such as the lack of interactivity and user engagement.
Web2
- Explain that Web2, also known as the "social web," refers to the current state of the internet, where websites are more dynamic and interactive, and users can actively participate in creating and sharing content.
- Examples: social media platforms, e-commerce sites, and online gaming communities to illustrate the characteristics of Web2.
- Discussion:
- Benefits of Web2: increased user engagement and participation
- Challenges: concerns about data privacy and centralization.
Web3
- Explain that Web3, also known as the "decentralized web," refers to the next phase of the internet, where data and applications are stored and processed on a decentralized network of computers, rather than on centralized servers owned by tech companies.
- Examples: ask students (they should know)
- Discussion:
- Potential benefits of Web3: increased privacy, security, and ownership of data
Challenges of web3
- Scalability: Web3 technologies, such as blockchain, can be slower and more expensive to use than Web2 technologies. This could limit their adoption and usability for mainstream applications.
- Interoperability: There are many different Web3 protocols and networks, which can make it difficult for them to work seamlessly with each other. This could limit their potential to create a truly decentralized and interconnected web.
- User experience: Web3 technologies can be complex and confusing for average users who are not familiar with the technical aspects of blockchain and decentralized systems. Improving the user experience will be crucial for the adoption of Web3 applications.
- Regulation: The decentralized and open nature of Web3 can create challenges for regulatory compliance, especially in areas such as identity verification and financial transactions. The lack of clear legal frameworks and standards could limit the growth of Web3.
- Environmental impact: Some Web3 technologies, such as proof-of-work consensus algorithms used in some blockchains, consume a large amount of energy and contribute to climate change. Finding more sustainable solutions will be important for the long-term viability of Web3.
- Security: Web3 technologies rely on complex cryptographic systems and smart contracts, which can be vulnerable to hacks and other security breaches. Improving security will be essential to build trust and confidence in Web3 applications.
- Governance: Decentralized systems require a different approach to governance compared to centralized systems. Developing effective governance models that ensure transparency, accountability, and fairness will be important for the success of Web3.
- Education and awareness: Web3 technologies and concepts are still relatively new and complex for many people. Raising awareness and educating users about the benefits and potential of Web3 will be important for its adoption and growth.
- Network effects: The success of Web3 depends on network effects, which means that the value of the network increases as more users and applications join. However, it can be challenging to create these network effects and overcome the inertia of existing centralized systems.
- Privacy: While Web3 promises greater privacy and security for users, it can also create new privacy concerns, such as the potential for surveillance and tracking. Addressing these concerns will be important to ensure that users have control over their data and online identities.
- Legal and regulatory challenges: The legal and regulatory environment for Web3 is still developing, and there are many questions about how existing laws and regulations apply to decentralized systems. Developing new legal frameworks that enable innovation while protecting users will be important for the growth of Web3.
- Adoption: Finally, the adoption of Web3 technologies will depend on a wide range of factors, including user needs, infrastructure, incentives, and more. Ensuring that Web3 applications are user-friendly, secure, and provide real value to users will be essential for their adoption and success.
Comprehension check quiz
- What is Ethereum? A. A type of smart contract B. A decentralized platform that allows for a creation and execution of Smart Contracts C. A digital currency
- What are Smart Contracts? A. Self-executing contracts with the terms of the agreement written into code B. Contracts that are executed by smart lawyers C. Contracts that are executed by banks
- Which of the following is NOT an example of a Smart Contract use case? A. Simple contracts to buy and sell goods or services B. Decentralized voting C. A written agreement to purchase a house
- What are the benefits of using Smart Contracts? A. Transparency, security, and efficiency B. Anonymity, privacy, and decentralization C. Speed, low transaction fees, and scalability
- What is a Dapp? A. A type of cryptocurrency B. A type of smart contract C. A decentralized application built on a blockchain platform
- What are some common features of dapps? A. Immutability and transparency B. Anonymity and privacy C. Low transaction fees and speed
- What are the differences between Ethereum and Bitcoin? A. Ethereum is a platform for creating and executing smart contracts, while Bitcoin is a digital currency. B. Ethereum is a digital currency, while Bitcoin is a platform for creating and executing smart contracts. C. Ethereum and Bitcoin are essentially the same thing.
- What are ERC tokens? A. A type of cryptocurrency token that is built on the Bitcoin blockchain. B. A type of cryptocurrency token that is built on the Ethereum blockchain. C. A type of smart contract.
- What is the main purpose of ERC-20 tokens? A. To create unique digital art pieces B. To create a new type of social media platform C. To serve as a standard for creating and managing tokens on the Ethereum blockchain.
- What are ERC-721 tokens? A. Non-fungible tokens (NFTs) that are used to represent unique assets, such as digital art, collectibles, and game items. B. Fungible tokens that are used to represent digital currencies, such as Bitcoin and Ethereum. C. Smart contracts that are used for crowdfunding.
- What is Web1? A. The current state of the internet, where websites are more dynamic and interactive. B. The early days of the internet, when websites were primarily made up of simple HTML pages that displayed static information. C. The next phase of the internet, where data and applications are stored and processed on a decentralized network of computers.
- What is Web2? A. The early days of the internet, when websites were primarily made up of simple HTML pages that displayed static information. B. The current state of the internet, where websites are more dynamic and interactive. C. The next phase of the internet, where data and applications are stored and processed on a decentralized network of computers.
- What is Web3? A. The early days of the internet, when websites were primarily made up of simple HTML pages that displayed static information. B. The current state of the internet, where websites are more dynamic and interactive. C. The next phase of the internet, where data and applications are stored and processed on a decentralized network of computers.
- What is one of the main challenges facing the adoption of web3 technologies?
A. Lack of user-friendly interface
B. Limited availability of hardware wallets C. Lack of funding for blockchain startups
Classroom activity
Activity Title: "Smart Contract Showcase"
Objective: To introduce the concept of Smart Contracts and their potential applications.
Materials:
- Access to a web browser
- Internet connection
Instructions:
Step 1: Introduction (5 minutes)
- Start the activity by providing a brief overview of what Smart Contracts are and their significance in the field of blockchain technology.
- Explain that Smart Contracts are self-executing contracts with the terms of the agreement directly written into code, stored on a blockchain, and automatically executed when certain conditions are met.
- Discuss some potential applications of Smart Contracts, such as digital currencies, supply chain management, and decentralized applications (dApps).
Step 2: Online Research (10 minutes)
- Instruct students to use their web browsers to research and find examples of real-world Smart Contracts in action.
- Encourage them to explore various industries and use cases where Smart Contracts are being used, such as cryptocurrency transactions, digital identity verification, and decentralized finance (DeFi) protocols.
- Students should take notes on the Smart Contracts they find and their applications.
Step 3: Showcase (15 minutes)
- Ask students to share their findings with the class by presenting the Smart Contracts they researched.
- Each student should provide a brief overview of the Smart Contract they found, including its purpose, the blockchain platform it runs on (e.g., Ethereum), and its potential benefits and limitations.
- As a class, discuss the applications and implications of the showcased Smart Contracts, and encourage students to ask questions and share their thoughts.
Step 4: Reflection (5 minutes)
- Wrap up the activity by having students reflect on what they learned about Smart Contracts.
- Ask them to share one key takeaway or insight they gained from the activity, and how they envision Smart Contracts shaping the future of technology and business.
Step 5: Follow-up (optional)
- As an optional follow-up, you could assign a short writing task where students summarize one of the showcased Smart Contracts and describe how it could benefit a specific industry or use case.