As someone passionate about technology and its transformative potential, I’m always curious to explore innovations shaping our future. Blockchain, Web3, and cryptocurrencies are among the most talked-about developments, but their complexity can feel overwhelming. To cut through the jargon, I sat down with blockchain expert Ksenija Korolova to break down these concepts into simple, actionable insights. Whether you’re curious about investing or just want to learn how this technology is transforming our world, this blockchain for beginners guide has you covered. Let’s dive in!
Meet Our Guest: Ksenija Korolova, Web3 Wizard and Crypto Enthusiast
Hi! I am Ksenija. I am an international lawyer turned into a blockchain product manager and entrepreneur. I have lived in 6 different countries before I settled in Zurich, Switzerland, where I’ve been working in crypto for the past 5+ years.
Now I am also expanding to AI product management, and I’m eternally curious about all things technology, innovation, history and philosophy of life. These are the driving factors behind my 2 current businesses: a web3 lifestyle course where I explain how to use blockchain in everyday life for privacy, efficiency and more, and a brand of female shirts with cufflinks, underpinned with supply chain on blockchain and digital twins to use in the Metaverse, among other things.
Explain what "blockchain" is, as if I was 7 years old.
I don’t have much experience with children, but here is a comparison I could have in mind. Imagine you have a notebook where you write down everything you buy (like toys or candy) and how much they cost. Now, imagine that instead of just you having the notebook, everyone in your class has the exact same notebook with the same information written in it. When you buy a candy, you write it down in the notebook, and everyone else writes it down too. Also, everyone can see how much you have in your pocket or a fluffy pink little bag. That way, everyone knows what happened, and nobody can change the numbers without everyone else noticing. This is what blockchain technology is like!
Blockchain is like a big digital notebook, but instead of one person keeping track of things, everyone keeps track of it at the same time. This makes it super hard to cheat or change anything because everyone has the same record.
Are cryptocurrencies a pyramid scheme?
I really like this question, especially considering the impact that crypto has on society. Some cryptocurrencies are indeed a pyramid scheme, and some are not ⎯ that depends largely on the mechanisms they are created around. Whenever you are trying to assess a cryptocurrency, to see if it is a legitimate project or a scam, there is a couple of questions to ask yourself:
- What is this crypto useful for? Is it for payments? Is it needed to build some app or tool? Is it art and using blockchain represents its uniqueness?
- What is the emissions mechanism? In other words, why and how is more crypto of this kind created? Is it fully in the hands of a small group of people or is it based on software that is difficult to corrupt?
- Why is blockchain technology needed in this particular use case? Is it just a buzz word for hype or blockchain exactly fits into the company mission?
To summarise: investigate their usability, mechanics, and purpose. I know, these questions are not easy to answer unless you are willing to invest time and effort into digging, but that is the conscious (and the best) approach to avoid scams.
Many people make fortunes on cryptocurrencies that are clear pyramid schemes, and it’s entirely possible for anyone to do so, but it’s a risk level which not many people can take financially and psychologically. I would not recommend it to anyone unless they want to gamble. Nowadays, some cryptocurrency creators share from the get-go that the only purpose of their crypto is to grow on “hype” and people still buy it. But once these “hype cryptos” go to zero, they rarely resurrect back to having any monetary value. This is how society currently sees crypto: many people are curious about the opportunity to earn fast and easy money, and still very few people are curious about the potential for decentralisation. But beyond the hype and financial gains, blockchain technology and cryptocurrencies bring extraordinary opportunities to redesign our financial systems. This technology means that, instead of huge corporations or governments keeping charge of our data and money, we could take back control of our resources. Crypto could democratise access to financial systems, create new avenues for innovation, and provide greater transparency. That’s why I made the web3 lifestyle course: to help people lead a more private, efficient and wealthy life.
How are cryptocurrencies different from traditional currencies?
Cryptocurrencies differ from traditional currencies in three main ways:
- Control: Traditional currencies are controlled by the governments and central banks, and crypto is controlled by either the group of people who created them, or by the group of people who owns the majority crypto.
- Supply: Traditional currencies do not have a maximum supply and it’s always possible to print more money, since nowadays the government-issued money is not backed by gold, as it used to be before the 1970s. With crypto, the supply is either determined by the code (for example, 21 million Bitcoins), or by the crypto founders. This helps control inflation, among other benefits.
- Transfer: Crypto is peer-to-peer, borderless and 24/7 (for most public blockchains), while traditional currency transfers rely on the banking system where the banks take time to review the transactions, if they get filtered as suspicious, and if the banks for some reason don’t like the transfer, they can prevent you from using this money.
In sum, traditional currencies are controlled by governments and banks with unlimited supply and regulated transfers, while cryptocurrencies are decentralised with fixed supply and enable peer-to-peer, borderless, 24/7 transactions.
What are NFTs and can they be useful besides memes?
NFT stands for Non-Fungible Tokens. NFTs are unique digital assets stored on a blockchain. The term non-fungible means they cannot be exchanged on a 1:1 basis like traditional currencies or cryptocurrencies (e.g. Bitcoin), because they have some unique features making them valuable, which is very useful to purchase and trade art, music, tickets, ownership rights, etc.
NFTs are often associated with digital art or memes (like famous GIFs being sold as NFTs), but that’s just the tip of the iceberg. For example, I mentioned that my shirts have digital passports on blockchain, which means that each shirt gets its own NFT so that the owner can easily get all the manufacturing information about their shirts: when was it made, by whom, where, etc. Digital passports are actually going to be mandatory for any clothes or electronics sold in the EU.
Besides that, with NFTs, we can buy ownership rights for parts of assets ⎯ think of buying a part of a Picasso painting, a real estate property, a Lamborghini, or even collectible whiskey. You can even buy a favourite song with NFTs and collect royalties alongside the artist or music band.
In conclusion, NFTs are a great instrument to prove your ownership of something (in parts or in full), in a digital way, be it:
- an investment (e.g. a house, a collectible),
- a certificate (e.g. my Master degree is an NFT),
- an art piece (digital art shall not be underestimated: it’s now on Sotheby’s and in major museums).
I am listing these few main use cases, but there are many more!
What is "web3" and why is it revolutionary?
To answer this, let’s look at the history of the Internet. First, in the 90s there was web1 or the Static Web, which was read-only: Users could consume information, but there was little interactivity. Then, there was the web2 era of the Social Web, starting in the 2000s, where users could already “Read and Write”. Think of platforms like Facebook, YouTube, and Instagram that allowed users to create and share content. The problem with web2 is that centralised companies control and monetise user data while offering “free” services.
And here comes web3, the Decentralised Web, which now allows users to read, write, and own digital content. Users can own their digital data, assets, and identities without relying on intermediaries. It is powered by blockchains, smart contracts, and decentralized applications (dApps), and that is the revolutionary component of it!
Smart contracts are programmes stored on a blockchain that automatically execute actions when predetermined conditions are met, like digital agreements. Most of the apps and tools operating on blockchain use smart contracts in one way or another.
Who is web3 for?
How do you start a crypto project?
I think it all starts with an idea ⎯ what do you want to do? Then, if you are new to crypto, I would ask as many people who have been active in the crypto industry for a while for their feedback, and of course not all feedback is equally useful, but it could change and shape the concept. Then, I would ask an expert in technology and a legal expert if this project could fly from tech and legal perspectives.
Then, when these points are covered, try to find a team that would be on the same page with you, but would cover the areas which you cannot cover (e.g. a web designer, a software developer). Perhaps, if you followed the first steps, you formed a team along the journey.
How do you start investing in cryptocurrencies and crypto projects?
Most of the TOP100 cryptocurrencies are available in big digital currency exchanges like Binance or Kraken. If you want to buy more exotic crypto, you would have to check which exchanges support it, and this information you can usually find it on the website of this cryptocurrency. The option I like is to buy directly from a ledger, which is a hardware to store crypto securely by yourself, and not on an exchange.
If you want to invest in a crypto project, you can either buy their native cryptocurrency or token. This is often the case for decentralised finance (DeFi) projects or centralised exchanges. You could also contact the team directly to ask if you can buy shares of the company, if they are open to this. There are also crowdfunding platforms that are allowing people to invest in crypto projects, for example Tecra Space. In some countries, like Switzerland, the shares of any company can be issued on blockchain (aktionariat.com).
What are some of the best and worst aspects of blockchain technology?
I guess that the characteristics of blockchain technology and cryptocurrencies can be good and bad at the same time, depending on how they’re used. Blockchain offers the promise of independence from institutions and decentralisation, but also the opportunity for scams and digital theft. It has potential for innovating every aspect of life but can also be misused or mistargeted.
For instance, while cryptocurrencies can empower individuals in regions with unstable banking systems, they can also facilitate illicit activities due to their anonymity. Similarly, smart contracts and NFTs could revolutionize industries like real estate and art but might also fuel speculation and fraud. The key lies in striking a balance: leveraging blockchain’s potential for transparency and innovation while addressing its risks and ethical challenges.
Thanks so much Ksenija!
How can people get in touch with you to learn more?
I’ve got a website: https://www.web3lifestyle.xyz/
I’ve got a Telegram: ksenija.korolova
I’ve got Instagram: https://www.instagram.com/web3lifestyle.xyz
Blockchain for Beginners Course
Interview led and written by Sophie L. Vériter
Global Society
With the advances of technology, we become more aware of how connected we are, as individuals, states, and continents, but also as a transplanetary community. This impacts how we imagine solutions to political, economical, and social challenges.
As an expert in international security and global affairs, I research how to create systems for a safer future. My articles delve into debates surrounding democracy, technology, and security.
I am currently working on more elaborate pieces that look into global information networks and how we can optimise them for public good.
