Toucan Documentation
  • 🌱Introduction
    • Welcome to Toucan
    • Legal Disclaimer
  • 🌏Toucan
    • Bridging
      • Puro Carbon Bridge
        • Tokenization
        • Detokenization
    • Carbon Pools
      • How a Carbon Pool Works
      • Benefits of Pools
      • CHAR Carbon Pool
      • How to Buy CHAR
      • Deposits and Redemptions
    • Carbon Retirements
  • 🌿RESOURCES
    • Web3 concepts
    • Carbon markets
      • Carbon credits
    • Frequently asked questions
      • How do I use the Carbon Bridge?
      • How can one carbon pool token, like CHAR, represent one tonne of carbon?
      • Can I retire carbon pool tokens, like CHAR, to offset my emissions?
      • Where can I find the addresses of CHAR or other contracts?
      • How long does it take to bridge carbon credits?
      • What happens to a pool token if it is bridged to another network?
      • FAQ for transition to Open Source
    • Archives
      • Verra Bridge [Deprecated]
      • Pool Acceptance Criteria: NCT, BCT
      • NCT Pool Report
    • Audits
  • 💻Developers
    • Toucan for developers
    • Smart contracts
      • Carbon pool contracts
      • TCO2 contracts
      • Retirement certificates
      • OffsetHelper
    • Subgraphs
    • Toucan SDK
      • Quickstart
      • Contract interactions
      • Subgraph interactions
    • Tools + examples
      • Integration examples
      • Testnet faucets
      • Dune dashboard
    • Developer support
      • Error codes
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On this page
  • Account
  • Wallet
  • Security
  • Blockchain
  • Smart Contract
  • Token
  • Oracle
  • DeFi (Decentralized Finance)
  • Automated Market Maker
  • Web3

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  1. RESOURCES

Web3 concepts

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Last updated 6 months ago

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Account

One key difference between Web2 and Web3 is how identity works. In Web3, users control their own accounts and identity, and authenticate themselves using .

Learn more about

Wallet

Wallets are software applications that help you interact with blockchain networks and sign in to Web3 applications. Wallets store private keys and digitally sign transactions. With a wallet, you can manage digital assets and use smart contracts. Some wallets require a hardware device for extra security.

Learn more about

Security

Web3 builders prioritize security, and rely on a combination of cryptography, computer science and game theory to build systems that are resilient to shocks and extremely difficult to attack. In addition, Web3 systems place a lot of responsibility on the user — actions are often irreversible, and accounts cannot be recovered.

Learn about which secure blockchain networks

Learn about which supports private messaging and identity systems on the Internet

Blockchain

A blockchain is a ledger that is maintained and updated by a decentralized network of computers, called a consensus network. It's the foundational technology behind cryptocurrencies and many Web3 applications.

Learn more about

Smart Contract

Smart contracts are small computer programs stored and executed on a blockchain network. Smart contracts can hold tokens — decentralized finance (DeFi) applications, including Toucan, are built with the technology.

Token

Digital assets or units of value issued on a blockchain. They can represent assets, access rights, or even participation in a network. Token systems are managed by smart contracts.

Tokens can be created to represent anything, and often do not have any intrinsic value or backing. The tokens used in Toucan Protocol are backed by real world assets — carbon credits certified by reputable standards bodies, like Puro.

Oracle

Oracles are services that provide external data to smart contracts on the blockchain. This data can trigger smart contract executions or inform decision-making processes.

DeFi (Decentralized Finance)

DeFi leverages blockchains and smart contracts to recreate and improve financial services like lending, borrowing, and trading, but in a decentralized, transparent, and permissionless way.

Automated Market Maker

An automated market maker (AMM) is a type of decentralized exchange protocol enabled by smart contracts that relies on a mathematical formula to price assets.

Instead of using an order book like a traditional exchange, an AMM uses liquidity pools that traders can trade against. These pools are funded by liquidity providers who deposit their assets into the pool and earn fees based on trading activity. The AMM algorithm automatically adjusts prices based on the supply and demand of assets in the pool. This allows for continuous trading without the need for traditional market makers or buyers and sellers to create liquidity.

Web3

"Web3" refers to a movement to rebuilt the Internet so it serves its users. A wide range of technologies and products are emerging from the movement, including blockchains and smart contracts, decentralized data systems, peer-to-peer communication apps and privacy-preserving technologies.

General Web3 Resources

Learn more about

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Read a balanced take on the

Read more about AMMs in the Constant Function Market Maker section of

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digital signatures
accounts ->
wallets ->
consensus mechanisms->
cryptography->
blockchains and how they work ->
smart contracts ->
tokens ->
oracles ->
DeFi ->
risks and potential benefits of DeFi ->
this paper from the Federal Reserve Bank of St Louis ->
Toucan — Key terms in the digital voluntary carbon market explained
Chris Dixon — The Potential Nof Blockchain Technology
Matt Levine — The Only Crypto Story You Need
Linda Xie — Composability is Innovation
Coinbase Blog — Understanding Web3: A User Controlled Internet
Consensys — Blockchain in Digital Identity
Andreas Antonopoulos — Mastering Ethereum