$BTC 3️⃣ Blockchain Technologies: The foundation upon which everything is built

These are the technical pillars that support the crypto and web 3 world:

🔹Term L1 (Layer 1): It is the core blockchain network itself, such as Bitcoin or Ethereum. It is responsible for recording and securing transactions.

🔹Term L2 (Layer 2): It consists of protocols or networks built on top of Layer 1 to improve its performance, such as increasing transaction speed and reducing fees. Example: Arbitrum as a Layer 2 for Ethereum.

Their importance: Layer 2 solutions are essential for scaling blockchain networks to accommodate millions of users and applications, making them faster and cheaper.

🔹Term PoW – Proof of Work:

It is a consensus mechanism used by some blockchain networks (most famously Bitcoin) to secure the network, validate transactions, and create new coins. It requires participants (miners) to solve complex mathematical problems.

Its importance: It provides a high level of security and decentralization, but consumes large amounts of energy.

🔹Term PoS – Proof of Stake:

It is an alternative consensus mechanism to proof of work. Instead of mining, participants 'stake' a portion of their coins as collateral to participate in the transaction validation process and secure the network. Ethereum transitioned to this system (Ethereum 2.0).

Its importance: It is considered more energy-efficient compared to proof of work, and provides opportunities for users to earn returns by staking their coins.

🔹Term DAO – Decentralized Autonomous Organization:

They are entities or projects governed by their community through rules written in smart contracts on the blockchain. Decisions are made by voting from holders of the organization's governance tokens.

Its importance: Represents a new model of governance that enhances transparency and community participation in managing decentralized projects and applications.

🔹Term dApp – Decentralized Application:

It refers to software applications running on decentralized networks such as blockchain or peer-to-peer (P2P) networks, instead of traditional centralized servers.

Its importance: Provides greater transparency, resistance to censorship, and empowers users to better control their data and assets. It can be used in various fields such as finance, gaming, and social media.

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