# Fundamentals
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### Economic Concepts
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An ancient unit of trust lying at the foundation of our society. Typically fungible.
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{% tab title="Trust" %}
The measure of confidence given to the value of money or standard of character.
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{% tab title="Asset" %}
Something that can be owned in the digital or physical world. Money, stocks, property, and natural resources are all assets.
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{% tab title="Ownership" %}
A description of the way an individual holds or controls an asset.
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{% tab title="Economy" %}
The system of individual actors influencing each other to behave via trust, money, and incentives.
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{% tab title="Fiat" %}
Currency issued by a bank.
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{% tab title="Digital Currecy" %}
A server-based digital form of currency issued by a bank (note: does not use a blockchain for accounting and is thus distinct from cryptocurrency).
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{% tab title="Token Economics" %}
The emergent field of design associated with analyzing and understanding how to effectively use cryptocurrency.
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### Internet Concepts
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{% tab title="Server" %}
A computer bank in which data is stored and processed for the Internet.
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{% tab title="The Internet" %}
A system that connects computers throughout the world.
The Internet first began January 1, 1983 when the ARPANET adopted TCP/IP protocol.
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{% tab title="Software Development" %}
The obscure art of building applications for devices and screens connected to the Internet.
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{% tab title="Remote Work" %}
A new working style where teams communicate and accomplish tasks via communication and planning applications.
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{% tab title="OSS" %}
Open Source Software comes from the dawn of the Internet. The idea behind OSS is that sharing information should benefit the broader population. This is in contrast to the idea of a patent.
Most open source software uses GitHub, an open repository. The largest companies in the world today rely on these repositories along with their proprietary systems to create internet applications.
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### Blockchain Concepts
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{% tab title="Blockchain" %}
A data management system that leverages a consensus protocol to process and save information across a distributed network.
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{% tab title="Consensus" %}
The protocol by which nodes in a blockchain participate and agree on the latest block state. Common protocols include Proof of Work and Proof of Stake.
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{% tab title="Bitcoin" %}
The first and most popular form of peer to peer (P2P) money created by an anonymous personality Satoshi Nakamoto in 2009. Bitcoin uses Proof of Work to define the latest state of transactions and ownership on the network.
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{% tab title="Ethereum" %}
Described as the world computer, Ethereum distinguished itself from Bitcoin by creating smart contracts enabling more complex accounting than simple peer to peer transactions.
This turing complete system supports the development of decentralized applications.
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{% tab title="Immutable" %}
Immutability refers to an inability to change. Blockchain immutability refers to the way no single party can modify the state of the network, which eliminates data censorship and manipulation.
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{% tab title="Layer 2" %}
"Layer 2" describes a transaction system that sits on top of a primary protocol (ie. Bitcoin or Ethereum). This second layer of transacting is created to enable cheap, high frequency transactions for users of a specific application.
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### Tokenonomic Concepts
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{% tab title="Cryptocurrency" %}
A blockchain-based currency used to engage and reward participants of a certain network. The advantage of cryptocurrency comes from its programatic control, that is independent of any central authority.
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{% tab title="Fungible" %}
Fungible tokens represent a fractional share of the broader cryptocurrency network. These include protocols like Bitcoin (BTC) and Ethereum (ETH). These economies most commonly use the Ethereum ERC20 s
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{% tab title="Non-Fungible" %}
Non-fungible tokens (NFTs) define a type of token that can only be owned by one address at a time (ie. no fractionalization). These tokens act like limited edition items (think: baseball cards, art, street wear, etc.) and are typically purchased on auction platforms, or used in blockchain games.
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{% tab title="Liquidity Providers" %}
People or entities that provide liquidity to support a market (most commonly found in relation to decentralized exchanges and lending protocols).
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{% tab title="Liquidity Mining" %}
Liquidity mining describes a program offered by token networks to incentivize liquidity providers to add assets to their marketplace (typically a DEX).
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{% tab title="DEX" %}
Decentralized exchanges introduce a way for anyone to create a market between 2 or more token assets. They leverage an [AMM](https://mvpworkshop.co/blog/order-book-vs-amm-which-one-will-win/) to list and algorithmically trade assets. [**Learn more here**](https://square1-hello.gitbook.io/square-1/decentralized-finance/defi-products/exchanges)**!**
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{% tab title="Cryptocurrency" %}
A blockchain-based currency used to engage and reward participants of a certain network. The advantage of cryptocurrency comes from its programatic control, that is independent of any central authority.
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### Smart Contract Concepts
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{% tab title="Dapp" %}
A decentralized application (Dapp) is an application that uses a blockchain network to store and process data. Nearly all Dapps today use smart contracts built on Ethereum and most of them are built for Defi (decentralized finance).
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{% tab title="Defi" %}
Decentralized Finance (Defi) describes new forms of capital formation, market making, debt and credit systems being created via cryptocurrency networks.
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{% tab title="DAO" %}
A Decentralized Autonomous Organizations (DAO) is a concept stemming from the possibilities of utilizing crypto to coordinate individual agents in a unified way. Varieties of DAOs range from open token economies like Bitcoin and Ethereum to tight-knit decentralized organizations using democratic smart contract frameworks for decision-making.
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### Governance Concepts
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{% tab title="Centralization" %}
System management led by a single or concentrated minority.
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{% tab title="Decentralization" %}
System management led by a wide population of individual agents. A sufficiently decentralized network has no bus factor.
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{% tab title="Cryptoanarchy" %}
The concept that cryptocurrency allows for creation of digital nation-states that prioritize individual freedom and open access to information.
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{% tab title="Bus Factor" %}
A metric used to define the degree of centralization or anti-fragility. If a system has a single bus factor, the entire thing will collapse if one person or entity dies.
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### Cultural Concepts
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{% tab title="Social Media" %}
Social media transformed human connectivity, starting with early email lists, blogs and forums that became possible due to the personal computer.
Today, 58% of the world population and 80% of the US population use social media apps. The rise of the Passion Economy continues to accelerate as content creation becomes easier.
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{% tab title="Memes" %}
Memes define the most efficient form of information spreading across society, often via content on social media.
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{% tab title="Crypto Twitter" %}
This is the place that the majority of cryptocurrency investors, builders, and influencers communicate publicly.
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{% tab title="HODL" %}
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