Web3 is growing rapidly.
Every developer wants to start or switch to web3 because of it's huge market demand.
Even if you're not a web3 developer you must know some of the common & basic web3 terminologies.
In this post we'll have a quick glance of 20 most common & important web3 terms:
1. Address, Crypto Address, Public Key:
- Alphanumeric character string used to send and receive crypto in blockchain network
- In Ethereum, the address begins with 0x
2. Block:
A node in a chain
Blockchain network is comprised of millions of such blocks
A block is virtually impossible to hack
It possesses parts or all of the records of the transactions that preceded it
3. Blockchain
Blockchains store data in blocks that are then chained together
Different types of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions
It is Immutable, which means data entered is irreversible
Transactions are permanently recorded & viewable to anyone
4. ENS
Ethereum Name Service
Human-readable and easy-to-remember addresses to Ethereum addresses
Something like yourname.eth
5. ERC-20
A set of specifications for tokens to follow in order to function optimally on the Ethereum blockchain
Using it developers and entrepreneurs can build new tokens
It is one of the foundational pillars of the blockchain ecosystem
6. DAO
Decentralized Autonomous Organization
Blockchain-based system that enables people to coordinate & self-govern
It has self-executing rules deployed on a public blockchain
Ex:
DASH - cryptocurency managed by its users
MakerDAO - A softwre that maintains stablecoin
7. DApp
Decentralized Application
- Web app that is built on top of open, decentralized, peer-to-peer infrastructure services
Example:
Decentralized storage and.or a message protocol and platform
8. DeFi
Decentralized Finance
Financial app developed on top of blockchain systems
Removes the control banks & institutions have on money, financial products, & financial services
Derivatives, Asset Management, Insurance
Eg:
Augur - a popular DeFi betting platform
9. Airdrop
Distribution of a cryptocurrency token or coin
Usually for free
Done to gain attention, new followers and popularise a token
10. Alt Coin, Altcoin
Any cryptocurrency that is not Bitcoin
An alternative digital currency
Created after BTC
11. Smart Contract:
Programs stored on a blockchain that run when predetermined conditions are met
Usually an automated agreement between 2 parties
Code controls the execution, and transactions are trackable and irreversible
12. Gas
Fee that is charged for any crypto transaction. Like as sending crypto & minting NFT
Incurred to conduct the transaction or execute a contract on their blockchain platform
Etherum gas prices are denoted in gwei
1 gewi = 0.000000001 ETH
13. Minting:
A process by which digital art becomes a part of the Ethereum blockchain
That is unchangeable & tamper-proof
Similar to the way that metal coins are minted and added into circulation
14. Learn-to-earn:
Mechanism that rewards users when they can prove they've learned something
Often receive cryptocurrencies when they send proof of their new knowledge.
15. ATH, all time high
- highest price (or market cap) that an asset has reached since its listing or inception
16. Testnet
A blockchain instance that is used for testing and experimentation without risk to real funds or the main chain
Usually used for a newer version of the underlying software for testing
17. Hodl
hold on for dear life
used among cryptocurrency enthusiasts when encouraging traders to resist the urge to sell one's holdings in response to market fluctuations
18. Seed Phrase:
A series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet
Think of it as a master password to your wallet
You shouldn't share it with others
19. Consensus Mechanism:
A fault-tolerant mechanism that is used in blockchain systems to achieve the necessary agreement on a single data value among distributed processes or multi-agent systems
The consensus mechanism is known as Proof-of-Work (PoW)
20. Some frequent acronyms:
gg = Good Game
gmi = Gonna Make it
lfg = Lets Fucking Go
ngmi = Not Gonna make it
FOMO = Fear Of Missing Out
WAGMI = We're All Gonna Make It
fren = metaverse term for 'friend'
Ser = Sir (respectfully introduce oneself)
Congratuations, now you've learned most common web3 terms 😎
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