A To Z Lingos And Their Meaning Used In The Web3 World

Learn all of the most important blockchain, Web3 and cryptocurrency terms before you enter the digital world.

Airdrop

In the realm of cryptocurrencies, an airdrop is the free transfer of tokens or coins from a business into the wallets of its customers or members.

Altcoins

Cryptocurrencies known as altcoins, or alts, are very new on the market and have low prices. The term “altcoin,” which combines the words “alternative” and “coin,” was initially used to describe any cryptocurrency that wasn’t Bitcoin.

Augumented reality (AR)

A method that blends aspects of physical reality (PR) and virtual reality (VR). In its current state, augmented reality (AR) can be enabled through eyewear, such as glasses or goggles, as well as by a smartphone or computer screen. One popular example of AR is Pokémon Go, which combines virtual information with the real world.

Avatar

An avatar is a computerized representation of a person or entity in virtual reality (VR), a video game, the internet, or another environment.

Bitcoin

As of this writing, Bitcoin is the most valued cryptocurrency on the planet. Additionally, it was the first cryptocurrency ever created, proposed in 2008 by “Satoshi Nakamoto” in the now-famous white paper titled “A Peer-to-Peer Electronic Cash System.”

Blockchain

Blockchain. A distributed digital ledger used to store transactions is known as a “blockchain.” Because it is an immutable database, data that has already been recorded cannot be changed or tampered with. A new, corrected entry must be made if there is an error in an earlier one, and both entries will appear in the ledger.

The blockchain is a dependable and trustworthy business resource for individuals and corporations due to its transparency and immutability. The name “blockchain” relates the fact that a blockchain stores data in “blocks,” which are standalone entities connected in a chain. A blockchain grows longer as more data is uploaded because new material is chronologically classified into blocks, which are then connected. Users may easily determine the precise time that a new information item was linked to the database because each new piece of information is likewise given a timestamp.

Block

A block is a standalone unit that stores data and is a key component of a blockchain.

Centralized method

This system is governed and structured using a strict hierarchical framework. For instance, corporations are centralized systems. In such a structure, a relatively small group of people at the top of the hierarchy hold the majority of the power and the ability to make decisions.

Cryptography

This is the practice of utilizing mathematics to encode and safeguard sensitive information from harmful actors. The word “encryption” is derived from the Greek “Kryptos,” which means “hidden.” Crypto winter is a period of a sharp drop in the cryptocurrency market, which causes some investors to lose enormous sums of money.

DAO

An organization run by its members and not under the jurisdiction of one particular person or body is referred to as a “decentralized autonomous organization,” or “DAO.” Unlike a regular business or government, they don’t have any hierarchical, top-down structures. Its code of conduct is documented on a blockchain to maintain transparency and decentralization. A digital token must typically be purchased to participate in a DAO.

Dapp

An application built on the blockchain is referred to as a “dapp,” or decentralized application. Dapps are mobile applications that, like other apps, have a user interface and are intended to be useful. Dapps operate independently by the terms of smart contracts.

A decentralized system is one in which each of its component pieces has an equal amount of control. Blockchains, the technology that underpins web3, are decentralized, which means that no one person, organization, or other entity has an excessive amount of control over how they are built and operated.

DeFi

Decentralized finance, or DeFi, is the term used to describe a financial system constructed on the blockchain that is completely dispersed and not controlled by any centralized authority, such as a bank, governmental body, or financial management company.

Electronic twin

This is a digital representation of an actual object. A digital twin is more than just a three-dimensional replica; they are intended to be as dynamic and environment-specific as the objects they are replicating. Let’s take the case of a group of engineers who are modifying a bridge’s structural integrity. They could create a small 3D model simulation of the bridge to study the overall construction and take some basic measurements. However, they wouldn’t be able to learn much from that simulation about how the wind, the traffic, or other more nuanced environmental conditions have affected the bridge’s structural integrity. They may scatter sensors throughout the bridge to build a digital counterpart to examine those operations. The team would then be able to produce a model that is significantly more revealing.

Vitalik Buterin created the decentralized Ethereum blockchain network in 2015. The open-source network is where its native cryptocurrency, Ethereum, which is often referred to as Ether or ETH (there is some controversy over whether it is pronounced “eth” or “eeth”), resides. After Bitcoin, ETH is the cryptocurrency with the second-highest market value as of March. In addition, the Ethereum platform gives rise to smart contracts, a topic we’ll explore in more detail next week.

Prolonged reality Extended reality, sometimes known as “XR,” is a group of several technologies, such as virtual reality (VR), augmented reality (AR), and mixed reality (MR), which, in various ways, combine virtual worlds with actual reality.

Fiat currency

Fiat money, which should not be confused with the automobile brand, is any form of money recognized as legal tender by a government agency. (The pronouncement is frequently referred to as fiat.) There is no fundamentally valuable item, such as gold or silver, to support fiat money. Instead, shifts in supply and demand dictate how much fiat money is worth. Fiat money includes paper notes like the US dollar.

Because fiat money is subject to the economic phenomenon known as “variable supply,” the governing body that issued it has the power to manipulate its value by adjusting several levers, including interest rates. Cryptocurrency is frequently presented as the antithesis of fiat money because any centralized body does not govern it.

Fungibility

Fungibility is a phrase used in economics to describe a good that can be exchanged for other goods of the same kind that are the same in value. For instance, a $1 bill is interchangeable with any other $1 bill because they both have the same value and are practically equal.

Gas

Gas is a term used in web3 to describe the cost needed to execute a smart contract or transaction on the Ethereum blockchain. Node operators, also known as miners, are compensated with gas, frequently expressed in a small fraction of an ETH called a WEI.

Gwei

Gwei is the name of the smallest unit of the cryptocurrency ETH. 1 ETH equals 1 billion Gwei.

HODL

A prominent abbreviation in the cryptocurrency industry is HODL, which stands for “hold on for dear life.” When the crypto market is experiencing significant changes, and investors feel uneasy, this phrase is frequently used, as in the phrase, “Don’t sell just yet, the markets will recover and your investments will bounce back if you just HODL.“

IRL

In web3-speak, interoperability refers to the capacity of several blockchains to collaborate and exchange data, allowing virtual assets (such non-fungible tokens [NFTs]), avatars, and other pieces of code to flow effortlessly from one platform to another. IRL. abbreviation for “in real life,” IRL is an acronym that is frequently used in the web3 environment to refer to something real-world rather than virtual.

Layer1

Multi-level blockchain frameworks are built on Layer 1 (L1) blockchains. All layer 1 blockchains, including Bitcoin and Ethereum, provide access to their networks via their native cryptocurrency. They don’t need assistance from other blockchain networks to facilitate transactions.

Layer2

The performance and accessibility of layer 1 blockchains are frequently improved by layer 2 (L2) blockchains, which are built on top of them. For instance, Polygon is a well-known layer 2 blockchain that enables users to profit from the Ethereum network without having to deal with its expensive fees and somewhat poor transaction speed.

Liquidity

In economics, “liquidity” defines how easily one asset may be changed into another, whether cash or another item. A fully built and made accessible to the general public blockchain is known as the main network or mainnet.

Also Read: The limitations of upcoming Blockchain revolution

Metaspace

Metaspace refers to real reality, the material opposite of the metaverse’s virtual universe. Although it may not be the most elegant of expressions, it has gained popularity in tech circles.

Meta

Many people are under the impression that Meta owns the metaverse technology. With a focus on the metaverse, Facebook Inc. changed its name to Meta (formally Meta Platforms Inc.). Software designed for the Ethereum network, MetaMask serves as a cryptocurrency wallet.

Metaverse

Web3 and “the metaverse” are not the same thing. The former refers to the virtual environment that can be accessed through VR technology. In contrast, the latter is a word that is frequently used to define the next stage of internet evolution. The term “Web3” encompasses emerging technologies, including the metaverse, blockchain, and cryptocurrencies.

Registering a digital asset on the blockchain and converting it into a tradeable NFT is “minting.” Due to the nature of the blockchain, an NFT that has already been coined cannot be changed. Many have criticized the blockchain and its proponents because it consumes significant energy to mint NFTs on the blockchain.

Mixed reality (MR)

Mixed reality (MR) technology combines virtual and real-world elements similar to augmented reality. However, unlike AR, MR enables users to interact with virtual objects like in the real world. You might see a virtual potted plant resting on your real, physical dining room table, for instance, when looking through an MR headset. You might pick it up and place it down the same way you would with a real, tangible houseplant.

NFT

A non-fungible token, or NFT, is a group of data kept on a blockchain that is non-interchangeable; in other words, it cannot be duplicated into many copies of equal value and swapped with one another like, for example, US quarters can. (See the previous definition of “fungible”).

In the NFT industry, the abbreviation NGMI, which stands for “not going to make it,” is frequently used to describe a token or campaign that is not expected to achieve significant value. We’re going to make it, or its reverse, WGMI, is also frequently used.

Off Chain

Off-chain transactions do not occur on a blockchain network, although they can be added to a blockchain in the future. (Note: The term “off-chain” can also apply to information that predates the blockchain.) off-chain transactions require the approval of all parties before a third party may be used to validate the transaction.

On Chain

On-chain transactions are carried out, validated, and recorded on a blockchain network. Following completion, the transaction history is visible to all users of the connected blockchain network. (Note: Data stored on the blockchain can also be referred to as being “on-chain.”)

P2P

A network of individual computers exchanging information with one another without the supervision of a central server is known as a peer-to-peer (P2P) network. A P2P network’s component computers share network management.

PAOP

A Proof of Attendance Protocol, or POAP, is a digital token that proves – often known as a “badge” – that a person attended a specific event, either online or in person. In the language of cryptography, a private key is an alphanumeric code that a user must enter to access their wallet or to approve the transfer of assets or money based on blockchains.

PoS

A technique for approving transactions and adding new blocks to the blockchain is called Proof of Stake, or PoS. It is a consensus-based method, and each validator’s contribution depends directly on how much of the cryptocurrency is involved in their transaction.

PoW

Another mechanism for reaching consensus and adding new blocks to the blockchain is known as Proof of Work, or PoW. Each participant in a cryptographic process must provide evidence that they have put out a particular level of contributed computing work according to a PoW algorithm.

Public Key

An alphanumeric code known as a public key is associated with a certain wallet. A public key is a code other users would use to transmit assets straight into your wallet, similar to a bank account number.

A circumstance in which someone’s worldview or perspective on a particular issue has changed dramatically and suddenly is referred to as being red-pilled. The expression alludes to the infamous red pill from the Matrix movie series, which represents the choice to swallow a difficult and unsettling truth about oneself or the nature of reality.

Smart Contracts

Smart contracts are computer programs built on the blockchain intended to take effect automatically as soon as each party to the contract has met its requirements. The necessity for any facilitating third party is eliminated after they have been coded and their terms have been agreed upon. Transactions made through smart contracts can be closely monitored by the parties involved but cannot be changed after the fact because they are based on the blockchain.

Tokenomics

Before enabling new protocols on a mainnet, developers can verify the functioning of those protocols on a blockchain’s test network or testnet. The term “tokenomics,” which combines the words “token” and “economics,” refers to all of the different characteristics of a virtual currency that might influence its market value to change.

TradeFi

When referring to “traditional finance,” or the pre-DeFi paradigm of centralized financial power, in which governments, banks, and other institutions control and regulate currency, some cryptocurrency community members use the sarcastic abbreviation “TradFi.”

VR

A three-dimensional, immersive digital environment can be created using virtual reality (VR) technology, allowing users to interact with real people and their digital avatars. Although it is still in its infancy, VR technology has developed quickly. Meta’s Oculus Quest headset is a piece of hardware that can transfer the user to VR worlds. Wallet. The keys to blockchain-based assets and accounts are stored and protected by an application known as a cryptocurrency wallet. (Private key and public key definitions are found above.)