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refactor: why is crypto important
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crypto reading list
Crypto Reading List
====================

_For a more friendly reading experience, we recommend navigating [here](https://jumpcrypto.github.io/crypto-reading-list)._
Expand All @@ -9,57 +9,65 @@ The content on the toplevel page contains what we consider essential reading.
Child pages contain deeper, topic-specific information to review afterward.

The lists here are a **work in progress**. We welcome any feedback or criticism!
Please open a PR/issue here or reach out to [[email protected]](mailto:[email protected])
with any suggestions, or to report any errors.
Please open a PR/issue with any suggestions or corrections.

_Nothing in this repo constitutes financial or legal advice._


Contents
=========
* [Why is crypto important?](#why-is-crypto-important)
* [Blockchain mechanics & innovations](#blockchain-mechanics--innovations)
* [DeFi primitives](#defi-primitives)
* [NFTs & digital identity](#nfts--digital-identity)
* [DAOs & Governance](#daos--governance)
* [Byzantine Fault Tolerance & Proof-of-Stake algos](#byzantine-fault-tolerance--proof-of-stake-algos)
* [L1s](#l1s)
* [L2s](#l2s)
* [Trading mechanics](#trading-mechanics)
* [Smart contract programming](#smart-contract-programming)
* [Economic design](#economic-design)
* [Tools & Analytics](#tools-&-analytics)
* [Exercises](#exercises)
* [Other references](#other-references)
- [Why is crypto important?](#why-is-crypto-important)
- [Blockchain mechanics \& innovations](#blockchain-mechanics--innovations)
- [DeFi primitives](#defi-primitives)
- [NFTs \& digital identity](#nfts--digital-identity)
- [DAOs \& Governance](#daos--governance)
- [Byzantine Fault Tolerance \& Proof-of-Stake algos](#byzantine-fault-tolerance--proof-of-stake-algos)
- [L1s](#l1s)
- [L2s](#l2s)
- [Trading mechanics](#trading-mechanics)
- [Smart contract programming](#smart-contract-programming)
- [Economic design](#economic-design)
- [Tools \& Analytics](#tools--analytics)
- [Exercises](#exercises)
- [Other references](#other-references)
- [Other lists/directories](#other-listsdirectories)
- [Original research](#original-research)
- [Online courses](#online-courses)


Why is crypto important?
===========================
We'd recommend starting your exploration by trying to understand what problems crypto is trying to solve.

In a few words, we'd say it is:
* enabling a decentralized ledger-based currency system
* decentralized means, extremely difficult for bad actors to forge transactions taking your holdings
* enabling a decentralized network of computation / decentralized state transition machine
* decentralized means, extremely difficult for bad actors for enact state changes not defined in sourcecode
* enabling an open network of APIs that can be leveraged to build increasingly advanced apps
* enabling an incentive model for these open networks to grow via crypto tokens

Here's the list:
* [Crypto tokens: a breakthrough in open design](https://cdixon.org/2017/05/27/crypto-tokens-a-breakthrough-in-open-network-design) (2017)
* tokens as an enabler for alignment between networks and their participants
* [Why decentralization matters](https://cdixon.org/2018/02/18/why-decentralization-matters) (2018)
* discusses the pattern of new technology progressing from innovation to extraction (from cooperation with their
ecosystem to eventual competition). For example consider Apple's transition from early days of encouraging
developers to build on iOS, to now charging 30% on all in-store purchases.
Discusses how crypto solves this by aligning the network with its participants.
* [The true power of DeFi composability](https://medium.com/coinmonks/the-true-power-of-defi-composability-14fe8355e0d0) (Apr 2021)
* [Why I have changed my mind on tokens](https://insights.deribit.com/market-research/why-i-have-changed-my-mind-on-tokens/) (Dec 2020)
* noted researcher Hasu weighs in on the merits of protocol tokens, during a time when many cynics questioned the need for each project to have its own token
* Optional: pieces discussing arguments for _Bitcoin_, generally as a decentralized store of value:
We've identified four central themes behind crypto's value proposition:

1. A decentralized ledger-based currency system.
* decentralized means distributed and unpermissioned. Anyone can participate in administering the currency.
* ledger-based: impossible for bad actors to forge transactions taking your holdings. Cryptography secures your money and forms a public, verifiable chain of trust.
2. A decentralized state machine and network of computation
* decentralized means extremely difficult for bad actors for enact state changes not defined in sourcecode
3. An open network of APIs for decentralized apps
4. An incentive model for these open networks to grow via crypto tokens

Here's the list of relevant reading:
* The currency proposition:
* [Bitcoin for the open-minded skeptic](https://www.matthuang.com/bitcoin_for_the_open_minded_skeptic) (2020)
* [7 things to read about bitcoin](https://www.paradigm.xyz/2020/05/7-things-to-read-about-bitcoin-for-institutional-investors/) (2020)

* The state machine proposition:
* https://ethereum.org/en/developers/docs/evm/

* The open API proposition:
* [Why decentralization matters](https://cdixon.org/2018/02/18/why-decentralization-matters) (2018)
* discusses the pattern of new technology progressing from innovation to extraction (from cooperation with their ecosystem to eventual competition).
* For example consider Apple's transition from early days of encouraging developers to build on iOS, to now charging 30% on all in-store purchases.
* Discusses how crypto solves this by aligning the network with its participants.

* The token proposition:
* [Crypto tokens: a breakthrough in open design](https://cdixon.org/2017/05/27/crypto-tokens-a-breakthrough-in-open-network-design) (2017)
* tokens as an enabler for alignment between networks and their participants
* [The true power of DeFi composability](https://medium.com/coinmonks/the-true-power-of-defi-composability-14fe8355e0d0) (Apr 2021)
* [Why I have changed my mind on tokens](https://insights.deribit.com/market-research/why-i-have-changed-my-mind-on-tokens/) (Dec 2020)
* noted researcher Hasu weighs in on the merits of protocol tokens, during a time when many cynics questioned the need for each project to have its own token

_More: see in-depth page: [Why](Why.md)_


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