Let's face it: If you can't talk the talk, it's hard to walk the walk in Web3.
In an effort to breakdown some of the barriers to entry when it comes to investing and participating in Web3 and crypto, BFF put together the definitive glossary for Web3 terminology. Check it out below and let us know what terms you want us to add next! We'll be updating this index as updates in Web3 happen more broadly.
Tokens are sent directly to an individual’s wallet with no associated cost to the receiver.
An algorithm is a list of step-by-step instructions that are used in the process of solving a problem or performing a computation by a computer.
A list of wallet addresses that have guaranteed access to mint an NFT within a specific window of time. Having allow list access can prevent the disappointment of missing out on minting within popular projects, allow you to mint at a time that is convenient for your time zone and avoid paying high gas fees by having the ability to wait for the gas price to lower.
Alpha within the NFT space is prized information often realized before most of the market is aware. This information is often found in alpha groups that share exclusive information and opportunities. Alpha with cryptocurrency assets is a financial tool indicating performance. It is the excess returns earned over the benchmark on an investment.
Altcoin was originally a term used to describe any cryptocurrency that wasn’t Bitcoin. It is a combination of the words ‘alternative’ and ‘coin’. It is now used to describe any cryptocurrencies that are relatively new to the market and have a small market cap or valuation.
Ape is a term that is used to describe rushing into purchasing cryptocurrencies or NFTs with excitement without due diligence and knowledge of what you are purchasing. It is often a reaction to FOMO when an asset has a fast rise in price or popularity.
AR is the combination of digital information and the user’s real environment. The digital information is laid over the user’s real-world environment creating a composite view.
The act of disguising an orchestrated campaign to post comments and appear as though they are spontaneous comments from genuine community members.
The highest price an asset has ever reached.
The lowest price an asset has ever reached.
An NFT Avatar is a digital image that is generated by an algorithm. It is often used as a profile picture and is also referred to as a PFP. Every avatar in a generated collection is unique and ownership is verified on the blockchain.
Crypto slang referring to an individual’s cryptocurrency holdings.
An individual who holds a specific coin or token, regardless of its performance.
A period of decline in a financial market when assets fall by 20% or more from recent highs.
A feeling when confidence is low, and investors hold a pessimistic view of the market. Individuals with this pessimistic view are often referred to as bears.
This is the pre-release stage where software is offered to a set number of users and testers to test performance in real-world settings.
Bitcoin was launched in 2009 by a mysterious creator known as Satoshi Nakamoto. It was the world’s first successful decentralized peer-to-peer cryptocurrency and payment system.
Laszlo Hanyecz paid 10k Bitcoin for two pizzas on May 22, 2010. This was the first recorded business transaction with the purchase of physical goods using Bitcoin. Bitcoin Pizza Day is celebrated annually on the 22nd of May to commemorate this event.
A fundamental part of the blockchain is the block. Blocks are where the transaction data is permanently recorded. They contain information on transactions during a certain period of time and are closed when all data contained within is validated.
A shared, immutable ledger of recorded data stored in blocks that are linked or ‘chained’ together. The blocks are chained together in chronological order and timestamped. The transparency and reliability of the blockchain make it a valuable resource. Blockchains are the core technology on which cryptocurrency protocols are built.
An application used to search and view details on the blockchain. Both historical and real-time data can be viewed. You can view data related to blocks, transactions, wallet addresses, and more. Etherscan is an example of a block explorer used for the Ethereum blockchain.
Software that is automated to carry out specific tasks such as trading cryptocurrencies. Some other use cases include minting, trading, and placing bids on NFTs as well as use on Discord for actions such as moderation, verification, security, activities, and more.
A blockchain bridge is a protocol that enables interactions between two blockchains that are economically and technologically separate. For example, Ethereum and Polygon.
Buying the dip follows the basic principle of “buy low, sell high”. It is often used when there is a fast decline in price with a strong inclination that the price will increase in value again.
A period of time when prices are rising and investor sentiment is positive.
This can refer to an optimistic sentiment of a rise in price movement or confidence in something or someone. For example, belief in a company, project, brand, or team to deliver over time.
Reducing the supply of a token by purposely removing it from circulation.
Investors sell their holdings as fast as possible due to a loss of belief that the asset will increase in price. Assets are often sold at a loss and there is a continuing decline in price until a bottom is reached.
An organizational structure that has a single leader or a small number of people who make the decisions and have control of the network.
A private company or entity that facilitates the trading of cryptocurrencies. They act as an intermediary between a seller and a buyer. For example, Coinbase, Binance, Gemini.
The term CeFi relates to traditional financial services and has an organizational structure that is centralized. CeFi platforms often provide a link between traditional monetary systems and digital asset markets.
The total number of tokens or coins that are publicly available in the market to buy or sell.
A client in reference to blockchain technology is software that connects to other clients in a peer-to-peer manner. It facilitates private key generation and security, transactions on behalf of a private key, and information about the state of the network and transactions. A common application and example of a client is a software wallet.
A coin is a form of currency that exists digitally or virtually on its own independent blockchain. It acts like a native currency within a specific financial ecosystem and is used as a store of value or as a medium of exchange within a digital economic network. It can also refer to a single unit of a particular cryptocurrency. For example, ETH.
Cold storage is holding cryptocurrency tokens offline.
A crypto wallet that is not connected to the internet provides greater security and prevention from exploits and hackers. The most common example is a non-custodial hardware wallet such as a Ledger hardware wallet. This wallet should not be used to connect to websites or perform transactions that can be completed with another wallet and then transferred to a cold wallet. For example, buying, selling or minting NFTs.
A cryptocurrency transaction that has been included in a block. This is permanent and cannot be disputed or reversed.
Every additional transaction block that is included after the first provides additional confirmations. The more confirmations there are, the more secure the transaction is. Multiple confirmations are often required to complete a transaction.
A blockchain procedure in which peers (nodes) of the network reach an agreement on the order and content of the blocks in the blockchain.
Consensus mechanisms are an essential operating feature of all cryptocurrencies. They are also known as consensus algorithms or consensus protocols. They are the underlying technology used to maintain security and verify transactions on the blockchain. Two of the most used consensus mechanisms are proof of work (PoW) and proof of stake (PoS).
For More: WTF Is... The ETH Merge
Contracts are binding agreements that lay out the terms and agreements between the parties. In cryptocurrencies, smart contracts execute these functions as code on the blockchain.
A correction will usually be shown by a gradual decline of an asset’s price of more than 10% over several days. This can be an indication that bullish traders are exhausted and there are no new buyers to support upward price movement. A correction allows for consolidation and recovery.
Cross-chains allow two or more relatively independent blockchains to communicate with each other without intermediaries. This cross-chain technology enables the transfer of data between blockchains that share similar networks.
A period of time when prices of major coins fall significantly from all-time highs without recovery and the overall cryptocurrency market is performing poorly. This can also be referred to as a bear market.
A form of digital or virtual currency that uses cryptography to secure transactions. They do not have a centralized authority but use a decentralized system to verify transactions and records.
Criminals change fiat to digital currency and transfer the assets to obscure their origin. They do this in an attempt to be able to use the funds and keep the authorities from being alerted.
Also known as trading pairs allow two tokens to be traded for each other without using fiat money on an exchange. For example, Bitcoin/Ethereum (BTC/ETH).
Custodial cryptocurrency businesses hold their clients’ funds. They manage the private keys required to access the funds and provide a login account.
A DAO is a fully autonomous and transparent decentralized organization. It has no central authority and is governed by its members. Smart contracts on the blockchain lay the foundational rules. These smart contracts execute the voted and agreed-upon decisions.
For More: WTF Is... A DAO
A type of decentralized application that avoids a single point of failure by existing and running on a blockchain or peer-to-peer (P2P) network of computers.
For More: WTF Is... A DApp
Conduct your own research to investigate, audit, or review facts.
Decentralization in blockchain refers to a system where control is distributed between a peer-to-peer network and does not rely on a central authority, organization, or individual.
DeFi is an umbrella term for emerging financial peer-to-peer technology using public blockchains in place of traditional, centralized financial systems.
For More: WTF Is... DeFi
A subculture of individuals often associated with risky bets, pump-and-dump schemes, meme coins, and other unruly behavior. Degen stems from the term Degenerate Gambler but is not always used with a negative connotation. It is often used as a badge of honor or can describe anyone involved in the cryptocurrency space.
A type of cryptocurrency software wallet that stores a user’s private keys on a computer hard drive. They provide users with a convenient option to perform transactions locally from their computers.
A peer-to-peer marketplace where cryptocurrency buyers and sellers perform transactions. This is a non-custodial platform and the user retains control of their personal keys. Smart contracts are used to facilitate and record transactions on the blockchain.
The term Diamond Hands refers to someone who holds on to their investment regardless of highs or lows and resists the pressure to sell to either take a profit or to prevent a loss.
Discord is a web-based communication tool originally developed for gamers to chat with one another. It is often chosen for cryptocurrency and NFT projects as the primary place for the community to gather. Discord is a place to gather information, connect with community members, ask questions, and exchange ideas.
A very popular term in cryptocurrency and NFTs that has a similar meaning to due diligence. Shilling, creating hype, and scams are common and DYOR encourages individual thinking and research to verify before trusting what is read. DYOR is also used as a disclaimer when personal views are shared.
An Ethereum-based token standard that enables fungible, semi-fungible, and non-fungible tokens to be transferred in a single transaction. They are managed by a single, gas-efficient, smart contract.
A fungible token standard used for creating and issuing smart contracts solely on the Ethereum blockchain.
An Ethereum non-fungible token (NFT) standard. Each ERC-721 token is unique with differentiating metadata that can be identified and valued independently.
ETH is the main token on the Ethereum blockchain. It is a digital currency used to pay for transactions, trade and store NFTs, as a store of value, and more.
A decentralized, peer-to-peer network powered by blockchain technology that enables the creation of smart contracts and DApps.
For More: WTF Is... Wrapped ETH
An online platform where users can buy, sell, and exchange cryptocurrencies. Exchanges convert fiat to cryptocurrencies and vice versa.
A currency that is typically issued and supported by government regulation as legal tender.
An individual who has a small portfolio of cryptocurrencies or NFT holdings.
One of the most used valuation metrics in NFT collections. It is the lowest ‘Buy Now’ price within an NFT collection. The floor price is set by the owners of NFTs when they list them for sale.
FOMO is a feeling of anxiety resulting from the fear of missing an opportunity. In cryptocurrency, this feeling can lead to making hasty decisions based on emotion and an individual may not perform due diligence before buying, trading, or clicking on links for “too good to be true” opportunities leading to a potential scam.
A fork is a change in the blockchain’s protocol or set of rules that decide whether a transaction is valid or not. A soft fork is a backward-compatible change and can be likened to a software update. Older nodes (computers connected to the blockchain) continue to recognize new transactions as being valid. A hard fork is not backward compatible with earlier blocks and splits the blockchain into two. Nodes will need to update to the new valid chain to be able to confirm transactions.
An NFT is divided into smaller fractions that enable several people the opportunity to own a single NFT. This is done through a smart contract where the NFT is split into equal smaller parts and issued as fungible tokens.
FUD is a very broad term with a typical meaning of spreading information that is negative, misleading, or false. It is often used to strategically influence others’ perceptions or to voice displeasure.
A cryptocurrency asset is considered fungible when it has an agreed-upon value and is interchangeable with another token of the same kind. Fungible assets can be split into smaller parts and sold in fractions.
Gains are value appreciation in an asset. Gains are realized when an asset is sold at a higher price than it was originally acquired for, and profit is made on the sale.
Gas is the fee required when conducting a transaction, executing smart contracts, or launching DApps on the Ethereum network. This fee will vary depending on the complexity and computational effort required as well as the network demand at that given time. Gas is paid in ETH and denoted in gwei.
The price the user is willing to pay for a transaction on the Ethereum network.
For More: WTF Is... Gas
The first ever recorded block in a blockchain. It forms the foundation of the blockchain and is unique as it is the only block that does not reference the previous block and is generally hardcoded into the software.
A greeting commonly used in cryptocurrency and NFT communities. It extends beyond only meaning good morning and is used at any time of the day to say hello, promote positivity, and build a sense of global community.
Used to say good night and typically signals a user is logging off or leaving the chat.
Individuals or organizations with decision-making powers.
Governance tokens are a way to conduct decentralized governance typically used in DAOs and DeFi. They work on the model that distributing the tokens to the community offers a more decentralized, transparent, and equitable governance method. Tokens are used to vote on decisions, they can help to strengthen communities and promote the healthy development of the project.
In NFTs grinding refers to the requirement of a project to reach certain activity levels on Discord to gain access to benefits such as a presale list or other opportunities of the project’s choosing. Grinding often includes spending hours typing in chat, inviting a specific number of people to the discord, and sharing posts on social media to name a few examples. This behavior can create a false sense of community and a distorted level of engagement.
Gwei is a denomination of ETH and is used as a unit of measurement for gas prices. Each gwei is equal to 0.000000001 ETH (10-9 ETH). The word 'gwei' itself means 'giga-wei', and it is equal to 1,000,000,000 wei.
Unauthorized access to data in a computer or computer system. Crypto hacking is often accomplished through phishing schemes where malware (malicious spyware) or viruses are downloaded unsuspectingly by a user and reveals their private wallet keys.
*See fork
A physical device that is widely considered to be the most secure option to store a user’s private keys offline.
A term used in reply to non-cryptocurrency believers or toward those who don’t believe in a particular asset.
An acronym that is a misspelling of the word “hold”. HODL is a popular term often used as a buy-and-hold investment strategy when coping with price fluctuations and market volatility.
A term used when an individual, referred to as a “bag holder”, continues to hold onto assets regardless of their declining performance until they are worthless.
*See software wallet
A type of crowdfunding used to raise early-stage capital for a crypto-based project by selling tokens.
Something that cannot be modified after creation and is unchanging over time. This is a core feature of blockchain technology with data that cannot be falsified, replaced or manipulated.
A type of crowdfunding used to raise early-stage capital for a crypto-based project by selling a set of non-fungible tokens. This differs from ICO by the fact that NFTs are unique and are not interchangeable with other tokens of the same kind.
Insider trading in crypto happens when traders use private information to sell or buy tokens. An example of this would be purchasing crypto coins before exchange listing announcements, in turn profiting from the surge in price following the announcement.
In blockchains, interoperability refers to the capacity to freely exchange and leverage data and move types of digital assets across different blockchain networks without restrictions.
A term that refers to the legal protection of unique content safeguarding it from being copied or sold. “Intellectual” refers to intangible creations that live in the thoughts of their creators before having a physical existence. It can include things like films, music, software, business processes, design, books, and other concepts of the mind.
A peer-to-peer decentralized storage network that relies on a blockchain-like structure and is interoperable with smart contracts and blockchain data. It allows you to store files, share information, and track versions over time. IPFS searches for information based on content rather than location.
A programming language used mostly for web development, web applications, and game development that is dynamic and lightweight. CyptoJS is an expanding collection of standard and secure cryptographic algorithms implemented in JavaScript.
A descriptive term for taking a break to enjoy personal time without experiencing the anxious feeling of missing out.
*See private key, public key
KYC is a mandatory regulation for major cryptocurrency exchanges. KYC is used to perform identity and background checks before the use of the platform is granted. It is also used to highlight suspicious behavior and curb illegal activities.
A slang term used for accomplishing financial success from cryptocurrency trading. It refers to the excitement of getting rich enough to afford to purchase a Lamborghini.
It began as a viral Twitter meme that was used by individuals who support Bitcoin to push the price to new all-time highs. It has since been adopted by the wider crypto community to represent a bullish outlook on cryptocurrency.
The framework running beneath the blockchain that allows the various networks to function. It is the foundation of the blockchain ecosystem and provides the infrastructure to create chains and allow cross-chain interoperability.
Often referred to as the implementation layer or the base layer, it is a collection of solutions that improve layer 0. Scalability is a limitation on Layer 1 blockchains. Examples of Layer 1 blockchains are Bitcoin, Ethereum, Solana, and Cardano.
Layer 2 works with third-party integration and inherits the security of the underlying blockchain it is built on. These protocols provide a supplementary framework designed to overcome scalability difficulties, cross-chain communication, improved security, and transaction speed.
Layer 3 is for interoperability and is also known as the application layer. It consists of the protocols that allow DApps to run on the blockchain as well as hosting the DApps themselves.
The ease with which an asset can be converted to cash or another digital asset without impacting the overall price.
Liquidity mining is the process of lending cryptocurrency assets into liquidity pools in exchange for rewards.
A crowdsourced collection of digital assets that are locked in a smart contract to provide liquidity on decentralized exchanges. Liquidity pools are used to facilitate decentralized trading, lending, yield generation, and more.
A fully developed and deployed blockchain protocol running on its own network with its own technology.
A decentralized marketplace built on blockchain technology that provides a place for users to trade directly, eliminating the need for a middleman. They are most typically used to trade NFTs. Transactions are executed through smart contracts making them transparent, immutable, and instant. Examples of marketplaces include OpenSea, LooksRare, Gem, and Foundation.
Originating from the Greek word mimeme, which means imitated thing. A meme is a cultural item in the form of an image, video, phrase, etc., that is spread via the internet.
A popular cryptocurrency software wallet that is available on both desktop and mobile devices. It allows users to store assets and interact with DApps.
A metaverse is a digital version of the real world built on blockchain infrastructure creating a virtual universe where users can have interactions and experiences in real-time. These immersive virtual worlds have both social and economic value.
For More: The Biggest Misconceptions About The Metaverse
A process where specialized computers, also referred to as nodes, adds blocks to the blockchain, verify transactions and organize them into blocks using the proof-of-work (PoW) method. Miners receive a mining reward for their computational effort which in turn creates new coins.
Crypto minting is the generation of new coins using the proof-of-stake (PoS) consensus algorithm and adding the new assets into circulation. NFT minting is when a digital file is published into a unique digital asset through a smart contract enabling it to be bought, sold, and traded.
A term used to express that an asset or cryptocurrency is experiencing a strong upward movement in price. Often posed as a question in communities “When (wen) moon?”.
A blockchain concept that incentivizes users to be physically active whilst using an app. Users are rewarded in cryptocurrency.
A cryptocurrency wallet that requires two or more private keys (users) to approve and perform transactions. Multi-sig wallets have many applications when it comes to enhancing security. They may be used for decision-making, escrow transactions, or a safeguard against the loss of a private key.
The peer-to-peer system of nodes (devices/users) that are working together to validate transactions on the blockchain at any given moment in time.
Blockchain tokens that are unique and are not interchangeable with one another. These cryptographic assets are used to verify ownership and provide a digital certificate of authenticity of either physical or digital assets.
For More: WTF Is... An NFT
For More: WTF Is... NFT IP
NGMI implies that a poor choice regarding an investment has been made. The crypto community will also use this as a way to make fun of others with negative opinions.
This is typically used in reference to the private keys of your wallet. In a non-custodial wallet, the user holds the keys and has complete control over the assets held in that wallet.
For More: WTF Is... A Crypto Wallet
A node is a device (computer) that is part of a larger blockchain network. Each node follows rules, shares information, validates and stores transactions, and together creates the blockchain infrastructure.
Something that is unique, irreplaceable, and non-interchangeable.
A slang term for someone who is new to cryptocurrency trading, NFTs, digital currencies, or the crypto space altogether and lacks experience.
Transactions that are processed off a given blockchain network with increased speed and lower costs. These transactions can be batched together and integrated back into a blockchain.
The act of storing a user’s private keys in a system or device that is not connected to the internet. This is also referred to as cold storage.
A cryptocurrency transaction that exists on the blockchain and has been verified by miners or validators. These transactions have been recorded and are reflected in the public ledger.
A system for managing and implementing changes to a blockchain. Changes are proposed through code updates and each node votes whether to reject or accept the proposed changes. The rules for implementing any changes are encoded into the blockchain protocol. DAOs are an example of on-chain asset governance.
OpenSea is a marketplace where you can discover, buy, sell and view your NFTs. You can see the trading history and analytics for specific NFTs and whole collections. You can also create NFTs on Opensea and list them for sale.
An OS is a software program that acts as the interface between the computer hardware and the user. It manages all the other application programs on a computer.
P2P is at the core of blockchain technology. It is when two or more computers in a distributed network perform interactions without the use of a centralized server. P2P crypto exchanges allow users to trade directly with another user without the involvement of a central authority.
A popular term in crypto culture that refers to someone who sells too soon and sometimes at a loss, as the price was falling. It is suggesting that the person is weak and unable to handle the volatility of the crypto market.
Permissionless blockchains, also known as public blockchains, are open to the public and allow anyone to take part and access information. It is a decentralized ledger without an entity regulating who can use it, and how it can be used. Examples of permissionless blockchains include Bitcoin, Ethereum, and Cardano.
PFP is short for profile picture. It is a type of NFT that is displayed as your avatar on platforms such as Twitter, Instagram, and Discord. They are often used to show support for a project, an image that the user relates to, or as a flex. PFPs can also be utility driven; some allow IP rights over the image.
A type of social engineering where a scammer will fraudulently attempt to acquire sensitive information through a website or email that appears to come from a reputable source.
A POAP is a digital badge collected as proof of attendance or participation in a virtual or physical event. They are ERC-721 tokens that are minted by the POAP smart contract on the Gnosis Chain (previously xDai), which is an Ethereum-based sidechain. The POAP token may potentially hold future utility for collectors.
A consensus mechanism that requires individuals called validators (nodes) to stake cryptocurrency to verify transactions. This serves as an economic incentive to perform in the best interest of the network. If a fraudulent transaction is approved, a portion of that validator's stake will be reduced.
An algorithm used to confirm and track transactions and produce new blocks by completing complicated mathematical puzzles. By completing the puzzle miners gain access to the next block and receive a reward.
For More: WTF Is... The ETH Merge
A string of alphanumeric characters with hundreds of digits. The private key grants ownership and uses an algorithm to encrypt and decrypt data allowing access to crypto funds. You may never see your private key as many blockchain wallets automatically encode your key and use a seed phrase to unlock your wallet. Your private key will be hidden inside this software to make it more user-friendly.
Blockchain protocols are used to govern the blockchain network. They are a foundational layer of code that form the basic set of rules that allow data to be shared automatically, reliably, and securely on the internet.
A public address is a hashed (compressed and shortened) version of the public key. This is like a bank account number and leads directly to your wallet. It is safe to share and does not allow others to log into your wallet or withdraw assets.
A cryptographic code made up of a randomly generated set of numbers and letters that allows users to receive cryptocurrency in their wallet, similar to a bank account number.
For More... WTF Is A Crypto Wallet
A quick response (QR) code is a type of barcode that can be read by a digital device. It stores information encoded into a series of pixels in a black-and-white square-shaped grid.
A recovery phrase can also be referred to as a secret recovery phrase or seed phrase. It is the human-readable form of your wallet’s private key. It is typically a series of twelve words but may consist of up to twenty-four. This phrase provides access to your wallet and should be kept secure and always stored offline. Never share this phrase with anyone! It is your master key and anyone who has your recovery phrase can access and take control of your wallet. If you lose your recovery phrase, you will also lose access to your wallet.
An internet slang term for wrecked. In the world of blockchain and cryptocurrency, it’s used to describe a huge loss from a recent price crash.
A summary of the vision and direction of a project or business. A roadmap outlines the short and long-term goals and how this plan will be implemented.
ROI is a ratio or percentage used to reflect the efficiency of a certain investment or trade. It is the ratio between the cost of investing and net profit.
In cryptocurrency, a rug pull is a malicious maneuver from the development team or founders by removing liquidity and taking the funds, suddenly abandoning the project. This results in a rapid decline of the value with the price going to, or near zero.
For More: WTF Is... A Rug Pull
Scalability determines the network’s capacity, the number of transactions the network can process, and the speed the transactions can be processed. The primary objective of scalability is to increase the volume and speed of transactions without sacrificing decentralization or security as the network grows.
Individuals who deceive their victims through a malicious scheme to gain access to information to steal assets. It’s unlikely you will be able to recover any assets lost to a cryptocurrency scam. Cryptocurrency scams can take many forms. It is important to protect your wallet and take your time, if it seems too good to be true it most probably is, and DYOR.
*See marketplace
*See recovery phrase
A shill is a person who promotes something. In cryptocurrency, shilling is the heavy promotion of a coin or token to create excitement and raise the price often without the individual disclaiming their personal stake.
A separate blockchain that is linked to the mainchain via a two-way peg. Sidechains are used to improve scalability or add functionality. Sidechains have their own consensus protocols and rely on their own security.
A smart contract is a self-executing code that establishes the terms of an agreement. This code runs on the blockchain when predetermined conditions are met allowing decentralized transactions without the need for third parties.
In cryptocurrency, a snapshot is an act of recording the state of the blockchain at any given point in time (block height).
A manipulation technique used to gain unauthorized access to assets or private information. This deception takes advantage of human error and often leads victims to give away their information with techniques including phishing, clicking on malicious links, and downloading malware. *See also Scammer.
*See fork
A cryptocurrency wallet that is always connected to the internet. It can be a browser extension, desktop app, or mobile app and is best suited for quick transactions.
An object-oriented, high-level programming language for creating and implementing smart contracts. Blockchains that use Solidity include Ethereum, Binance Smart Chain, and Polkadot.
A stablecoin is a type of cryptocurrency that is pegged to the price of another asset. In practice, 1 unit of one cryptocurrency should be equivalent to 1 unit of another asset; for example, 1 USDC is equivalent to 1 USD.
For More: WTF Is... A Stablecoin
The act of “locking up” a selected portion of digital assets for a set period of time. Staking helps support the operation of the blockchain network and rewards are earned.
Users can combine their resources in staking pools to increase their staking power and chance of earning rewards.
For More: WTF Is... Staking
The term sweeping the floor can be applied to both buyers and project owners. When many sales happen at floor price in a short period of time it is often referred to as the floor has been swept. When project owners buy an amount of NFTs from their own collection at floor price it is called sweeping the floor and can also be considered a form of price manipulation by many.
An alternative blockchain used by developers to test network upgrades, tools, products, and smart contracts before releasing on the mainnet.
A longer-term investment strategy.
A token is a digital asset that blockchain-based projects or organizations develop on top of an existing blockchain network. They can be designed with utility in mind, to represent physical or digital assets, to interact with DApps, or to be traded.
For More: WTF Is... Tokenomics
The act of exchanging cryptocurrencies on a blockchain. All transactions are verified by nodes and recorded on the blockchain.
The cost of performing transactions on blockchain networks. They incentivize users (miners) to validate transactions and reduce the number of spam attacks by making them expensive to carry out.
In crypto trustless refers to a mechanism where there is no third party needed and users do not need to know or trust each other for the system to function. In decentralized trustless systems, the trust is distributed in a peer-to-peer structure without a single entity having authority over the system.
2FA is an additional layer of security making it harder for hackers to gain access to your online accounts. It is necessary to provide two different factors of authentication when logging in.
A transaction hash is a unique identifier made up of a string of letters and numbers. It is generated when a transaction is performed. The txn hash can be placed into a blockchain explorer to track the current status or find the details of completed transactions.
A token with a use case that allows holders to perform an action in a specific ecosystem. This may be used in a DApp, game or to access products or services.
An individual (node) participating on a PoS blockchain who is responsible for processing and validating transaction blocks for rewards.
Vaporware is a term used to describe a project that has been publicly announced and is never developed and brought into reality. It is also used at times to describe a project that has no clear use case.
Financing by investors to fund small and early-stage businesses that show high growth potential in exchange for an equity stake.
The speed and range of price movement. The more volatile an asset is, the more significant the price movement will be which provides greater risk. It has the potential to offer higher returns, but also higher losses over shorter periods of time than less volatile assets.
VR technology is used to create an immersive simulated environment that can be explored and interacted with in a way that can either mimic or transcend reality.
WAGMI, sometimes shortened to GMI, is a positive exclamation in cryptocurrency culture to express camaraderie and support to their fellow community or traders. It is used with an optimistic view of performance and can also be used to remind doubters not to lose hope.
A crypto wallet allows you to store, buy and sell your cryptocurrency assets. They come in multiple forms including a hardware wallet like Ledger, or a software wallet like Metamask. Wallets do not physically hold your assets as they exist on the blockchain, rather they hold your private keys and provide the interface that allows you to access your cryptocurrency and tokens.
*See public key
The first version of the internet called Web 1.0 was a one-way system where data and information could only be added to a page and not the other way around. It is commonly referred to as the read-only web. Only a few people knew how to operate and use the internet during the time of Web1 and computer experts were often needed to operate and implement its use. The amount of user-generated content or interaction was minimal to non-existent.
Web 2.0 is the internet we are currently using, also known as the read-write web. It is a two-way system where social interactions link users to each other. As the internet became more affordable and adoption rose, social platforms such as Twitter and Instagram became a pivotal sector of the internet encouraging more connections and interactions between individuals online.
Web 3.0 is the newest type of internet iteration and is known as the read-write-own web. Web3 utilizes blockchain technology allowing trustless, permissionless, and decentralized platforms. Web2 has relied heavily on the collection and sharing of data as well as algorithms to target what corporations want you to see. This has been widely criticized as an invasion of privacy and trust. Web3 and decentralized networks eliminate the involvement of third parties and open many opportunities and technological advancements for individuals and corporations on a global scale.
An individual or entity who holds a large amount of a specific type of cryptocurrency or NFTs in a collection. As a result of their large holdings, they may have the ability to manipulate the market or floor price.
A list of individuals or wallet addresses that have been identified and allowed to access a service, event, information, or mint NFTs from a smart contract.
*See also allow list
A document released by a crypto project or developer that provides prospective investors with information on the concept, purpose, technical information, growth plans, and success strategies.
In crypto culture, YOLO is used when an individual goes all in on a single cryptocurrency, or they are investing more than they can afford to lose with the hope that it will succeed.
This article and all the information in it does not constitute financial advice. If you don’t want to invest money or time in Web3, you don’t have to. As always: Do your own research.
