This series of articles focuses on getting ordinary beginners started with Web3 finance quickly. If you’re interested in the underlying technology of blockchain, I recommend reading Web3 in Depth
Web3 Transfers
Traditional transfer: you → bank records it → the other party Blockchain transfer: you → all nodes record it together → the other party (no middleman)
What “Blocks” and “Chains” Are
Block Every so often, all the transactions from that period are packed into a block, like a page in a ledger
Chain Each new block contains information about the previous block; joined head to tail, they form a chain
[Block 1] → [Block 2] → [Block 3] → [Block 4]...If you want to tamper with one block, you have to tamper with every block after it at the same time, which requires controlling 51% of the network’s computing power. Nearly impossible — this is where “immutability” comes from
What Decentralization Means
Traditional centralization: User → bank server (single point of control)
The bank can freeze your account, go bankrupt, or be attacked
Decentralization:
User → thousands of nodes worldwide (each holding a complete ledger)
No single point of control; no one can shut it down
Who Keeps the Books
The blockchain has no central server, so who packs the blocks and does the bookkeeping?
PoW — Proof of Work (mining)
- Example: Bitcoin
- Miners compete for the right to record blocks with computing power
- Power-hungry but extremely secure
- A successful record earns a Bitcoin reward
PoS — Proof of Stake (staking)
- Example: Ethereum (after 2022)
- Staking coins earns the right to record blocks
- Energy-saving and more environmentally friendly
- A successful record earns an ETH reward
This is why “mining” can earn you coins — put bluntly, it’s payment
Comparison of Major Public Chains
| Public chain | Positioning | Fees | Speed | Native token |
|---|---|---|---|---|
| Bitcoin BTC | Digital gold, store of value | Relatively high | Slow (10 min/block) | BTC |
| Ethereum ETH | The originator of smart contracts, the most mainstream ecosystem | High (extremely high when congested) | Medium | ETH |
| BNB Chain | Binance-affiliated, an Ethereum alternative | Low | Fast | BNB |
| Tron | Dedicated to USDT transfers | Extremely low | Fast | TRX |
| Solana | High performance, extremely low fees | Extremely low | Extremely fast | SOL |
| Polygon | Ethereum L2, low fees | Low | Fast | MATIC |
Smart Contracts
Programs that execute automatically on the blockchain, requiring no human intervention
For example:
- You deposit 100 USDT
- The contract automatically calculates the interest
- At maturity it is automatically returned to you
No one can stop it from executing, and no one can change the rules (once deployed)
DeFi, NFT and DEX are all built on smart contracts
Token Types
Native coin The currency of the public chain itself, used to pay Gas fees → ETH, BNB, TRX, SOL
Token Assets issued on top of a public chain, such as USDT → USDT is essentially a smart contract on Ethereum/Tron
Stablecoin A token pegged to the price of fiat currency → USDT (Tether), USDC (Circle)
Block Explorers
The blockchain is public; every transaction can be looked up
| Public chain | Website |
|---|---|
| Ethereum | etherscan.io |
| BNB Chain | bscscan.com |
| Tron | tronscan.org |
| Bitcoin | mempool.space |
After a transfer, paste the transaction hash (TxHash) into an explorer and you can see the transfer status, amount and time — a permanent public record
Next time we’ll cover Web3 wallets and asset security
