25+ Terms to help you understand WEB3.0

25+ Terms to help you understand WEB3.0

Web3, Blockchain, NFTs, Cryptos, dApp, and DeFi can be confusing. But not anymore!

25+ terms that can help YOU understand them


1. Blockchain

Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. It is a digitally distributed, decentralized, public ledger that exists across a network.

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2. Cryptocurrency

Cryptocurrency, or crypto, is a type of digital currency that can be used as a medium of exchange. It employs encryption to safeguard and authenticate transactions, as well as to regulate the generation of new digital currency units.

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3. dApp - decentralized application

A decentralized app (dApp) is a digital application or a program that resides and executes on a blockchain or peer-to-peer network of computers rather than a single computer and is independent of anyone's authority's control.

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4. NFT - non-fungible token

NFTs are blockchain-based tokens that each represent a unique asset such as a work of art, digital property, or media. It can be anything from music to a website domain.

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5. ICOs - initial coin offering

Initial Coin Offerings (ICOs) are a popular financing tool for firms that want to sell products and services in the cryptocurrency and blockchain arena.

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6. Crypto Wallet

A crypto wallet is a program or software that allows users to engage and interact with blockchain networks directly. Some popular are Coin base, Meta mask, and Wallet connect.

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7. Gas Fees

The transaction costs that users pay to miners on a blockchain protocol to get their transaction included in the block are referred to as "gas fees."

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8. DeFi - Decentralized finance

DeFi is a term for peer-to-peer financial services on public blockchains such as Ethereum, Solana and etc.

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9. Tokens

A crypto token is virtual money. It is a tradable asset or utility that exists on its own blockchain and can be used for investment. Tokens are typically used to describe all crypto assets.

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10. Smart Contract

A smart contract is a decentralized program that responds to events by executing business logic.

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11. Wallet address

Your wallet address is a unique string of numbers and letters (also called a public key) that people can use to send you cryptocurrency.

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12. Airdrop

When a corporation distributes crypto or an NFT directly into your wallet, it is known as an airdrop. Instead of an initial public offering, blockchain services will issue a token and distribute it to people who have previously utilized the service.

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13. Buy the dip

This is when you acquire more of an asset after its value has dropped. If the price of Ethereum falls by $2,000, for example, a Ethereum holder might "buy the dip."

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14. To the moon

The term "mooning" or "moon" refers to a sharp price increase. The term "to the moon" is well-known.

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15. Opensea

It is the world's largest NFT exchange, specializing in ethereum-based NFTs.

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16. Cross-chain & Multichain

Data, coins, or assets can be sent from one blockchain to another. Multichain services, on the other hand, are designed to work over many blockchains.

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17. Cryptography

A type of data encryption in which data can only be decrypted with the use of a key.

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18. DYOR - Do Your Own Research

DYOR stands for Do Your Own Research and is a common phrase used by cryptocurrency enthusiasts.

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19. Governance token

Governance tokens are cryptocurrencies that give the owner voting rights over the given project.

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20. Seed phrase

You'll be given a 12-word seed phrase when you create a cryptocurrency wallet. You'll need to enter your seed phrase every time you log into your wallet on a new device. Never tell anyone your seed phrase.

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21. HODL

HODL is a cryptocurrency technique in which traders are "hodling on for dear life," as the name implies. This means that a trader must refrain from selling the cryptocurrency token, even at periods when its value is extremely volatile.

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22. Staking

DeFi staking frequently refers to locking up tokens within a protocol to achieve a certain aim or effect, rather than securing block creation.

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23. Bridge

A blockchain bridge is a connection that allows the transfer of tokens and/or arbitrary data from one chain to another.

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24. DAO - Decentralized Autonomous Organization

A DAO is a community-run organization with no central authority. It is completely self-contained and transparent: smart contracts establish the ground rules, carry out the agreed-upon decisions.

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25. BUIDL

In the same way that "HODL" is a warping of the word "build," BUIDL is a warping of the word "build." Instead of passively retaining, BUIDL is a call to arms for growing and contributing to the blockchain and cryptocurrency ecosystem.

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BONUS TERMS:

1. Stablecoin

Cryptocurrencies that are tied to the US dollar are known as stablecoins. Tether and USDC are two examples.

2. Whitelist

A cryptocurrency and non-fungible token presale list. Whitelisted investors have the opportunity to purchase the item before it is released to the general public, often at a discount.

3. Consensus

A consensus mechanism is any of the methods for achieving agreement, trust, and security across a decentralized computer network.

4. Etherscan

Etherscan is a program that allows you to see information about any Ethereum blockchain transactions that are either pending or confirmed.

5. Allocation

Allocation is the allotment of equity or tokens that may be earned, bought, or reserved for a specific team, group, investor, institution, or another similar entity.

6. Apeing

Apeing is when a cryptocurrency trader buys a token shortly after the token project launch without conducting thorough research.


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