Newcomer Science | Web3 Glossary, a must-have for beginners! (Part I)

Source: "Popular Science | Web3 Glossary, a must-have for beginners!

Compilation: Firefire

**The current development of the Web is in full swing, and now individuals, enterprises, institutions, and countries are entering the game one by one, striving to find a place in the Web3 Age of Discovery. **

Especially at present, the growth of the Web2 Internet has slowed down and the involution is serious, so that traditional Internet companies such as Alibaba, Tencent, Amazon, and Google are actively seeking Web3 opportunities.

Ordinary people may not necessarily be “All In Web3”, but it is still necessary to learn about Web3. In order to help you better enter the Web3 field, Vernacular Blockchain brings you an article about Web3-related vocabulary and concepts. **

The following is the main text:

Since many of the new terms in the Web3 space can be intimidating for beginners, people interested in getting started with Web3 may not even get started. The whole point of this article is to help you understand Web3 terms.

1.Cryptocurrency

Digital assets serve as a medium of exchange for blockchain technology, and their transactions and records are verified and maintained by a decentralized network that uses cryptography.

2. Crypto Coins

Crypto assets are the native assets of the blockchain, such as Bitcoin has BTC and Ethereum has ETH.

3.Stable Coin

It is a crypto asset designed to provide a stable price, and the functionality of a stablecoin can be pegged to another stable asset. For example, the price of the stablecoin is $1.

4. Shitcoin

Shitcoin refers to crypto assets that have no value. It usually refers to an altcoin, whose depreciation reflects the disinterest of investors.

5. Crypto Tokens Crypto Tokens

Crypto Tokens are built on top of applications based on existing blockchains and can create many tokens on top of existing blockchain technology. You can find different kinds of tokens in the app or in the game, which can be exchanged for coins up to a certain amount.

6. Airdrop Airdrops

This is a marketing strategy for the new project, which can be obtained by issuing free tokens to community users to complete a small task, such as reposting the company’s posts.

7.Fungible TokenFungible Token

It is a token with interchangeable properties because it is not unique, and fungible tokens can also be crypto assets.

8. Block

Data is stored and encrypted within blockchain blocks.

9. Genesis Block

On January 3, 2009, Genesis Block was the first recorded block on its blockchain, such as Bitcoin, and was rewarded with 50 BTC.

10.Blockchain

An immutable digital ledger that tracks, records, and maintains transactions in a peer-to-peer network.

11.Bitcoin

A decentralized crypto asset that does not depend on any central bank but is based on a consensus mechanism called Proof-of-Work (PoW) and runs on blockchain technology.

12.Altcoins

It is short for alternative coins and refers to all crypto assets other than Bitcoin.

13.Creator Economy

A group of creators, curators, and community builders who are able to monetize their content.

14. Ethereum

It is a decentralized, open-source blockchain that leverages smart contract functionality and is powered by blockchain technology.

15. Ethereum (ETH)

The native crypto assets of the Ethereum ecosystem that can be bought, sold, or exchanged on crypto asset exchanges.

16.CUT Slashing

Slashing refers to the penalty mechanism in the blockchain. For example, in the Ethereum blockchain, validators are slashed if they become inactive and perform any malicious activity.

Ethereum Request for Comment (ERC)

It is a technical document used by smart contract developers to set Token rules in the Ethereum ecosystem.

18.ERC-20

It is a technical standard for fungible tokens created on the Ethereum blockchain, which means that all fungible tokens have the same properties.

ERC-721

It is a free and open standard that describes how non-fungible tokens (NFTs) can be built on the Ethereum blockchain.

ERC-1155

It is a multi-token standard, which means that it has the features of both ERC-20 and ERC-721, correcting their errors and improving functionality.

19.Consensus Mechanism

A consensus mechanism is a complete set of protocols, ideas, and incentives that enable a set of nodes for the state of a blockchain.

20.L1/Tier 1

Layer 1 is called the underlying blockchain or on-chain network. Layer 1 acts as an ecosystem for the blockchain network, which means they can process and complete transactions on their blockchain ecosystem. Some examples are Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

21.L2/Layer 2

Layer 2 is also known as an off-chain network built on top of an existing blockchain to improve its efficiency and scalability. Some of the transaction load was shifted to Layer 2 to adjust the architecture of the existing blockchain. Some examples are Polygon on Ethereum (ETH) and the Lightning Network on Bitcoin (BTC) working as Layer 2.

22. Proof of Stake (PoS)

Proof-of-stake (PoS) is a consensus mechanism that selects participants known as validators. Validators need to stake crypto assets before validators have the opportunity to validate blocks and earn rewards.

23. Proof of Work (PoW)

In order to validate blocks on the blockchain, complex computational mathematical equations need to be solved, which requires high computing power through the use of physical devices such as computers.

24.Mining

Mining is the process of generating new tokens and validating transactions such as Bitcoin. Mining requires computers to solve the computational problem of securing the blockchain and rewarding coins.

25. Hash Hashing

Hashing/hashing is a generic term for blockchain technology. It refers to the conversion of input data of any length to a fixed size. It is a one-way password feature that prevents fraud, double-spending, and storing passwords.

26.Hash Rate

Hash rate refers to the combined computing power required to mine and process transactions under the proof-of-work (PoW) consensus mechanism such as Bitcoin.

27. Node

Nodes run on a blockchain application to verify transactions and store the complete transaction on the network.

28.Light Node

Light nodes are sometimes referred to as nodes or regular nodes. Light nodes are the primary computing devices that underpin a blockchain network, just as miners are nodes in a proof-of-work (PoW) consensus mechanism.

29.Full Node

A full node can perform activities done by a light node, and it holds a copy of the blockchain ledger, just like blockchain transactions. In addition, it verifies and downloads all transaction data, which improves network security.

30.Master Node

Masternodes only validate blocks and do not add them to the blockchain. Depending on the blockchain protocol, it has different roles like management, regulation, and governance. The first protocol is Dash, which was added to masternodes in March 2014.

31.Crypto Wallet

An application installed on a computer or smartphone that stores public or private keys for crypto asset transactions, NFTs, and digital signature information.

32.Private Key**

The private key contains a string of letters and numbers and should be kept safe, as it can be used as a password to unlock the crypto wallet.

33.Public Key

The public key is the address of the crypto asset wallet. With an address, crypto assets can only be sent to that person. No one can withdraw or log in to the person’s account.

34.Burning Crypto

Burning Crypto is used when a company permanently removes a large number of tokens from circulation. In addition, tokens are transferred to wallet addresses to burn tokens, meaning they can never be retrieved.

35.HOT WALLET

It is a form of digital storage that can be accessed through a computer or mobile phone. Hot wallets are usually free, but they are vulnerable to hacking.

36.Cold Wallet

It is a form of cold storage similar to a physical device, primarily a USB drive, that allows crypto assets to be completely offline.

37. Seed phrase

A seed phrase is a random word generated by your crypto wallet when you first sign up. The seed phrase is the master key of a crypto wallet and must be recorded offline to protect it from hackers.

38.Wallet Address

A wallet address refers to a random string of characters that is connected to a crypto wallet. Wallet owners can receive crypto asset transactions with the help of a wallet address.

39.Decentralization

The transfer of power, such as decision-making and control, from a central authority such as an individual, organization, or government to a distributed network.

40. Decentralized Applications (DApps)

An application that will run autonomously on blockchain technology using smart contracts.

41.Decentralized Autonomous Organization (DAO)**

Groups controlled by the members they represent are not under the control of any central government.

42.Decentralized Finance (DeFi)

By using smart contracts on a public blockchain, it enables peer-to-peer financial services without relying on intermediaries such as exchanges or banks.

43. Total Value Locked (TVL)

Total Value Locked (TVL) measures the total assets locked in a decentralized finance (DeFi) protocol, including all tokens, and includes features such as borrowing, staking, and liquidity pools.

44.Distributed Ledger

The digital data shared and synchronized by the ledger is maintained in a decentralized form, distributed across multiple countries, institutions, or websites, without any central authority.

45. Distributed Ledger Technology (DLT)

It is a digital system that verifies transactions with the help of nodes, and these transaction details are recorded in many places without any support from the central authorities.

46.Metaverse

The Metaverse is a part of Web3, an evolving 3D virtual reality concept where people can interact with anyone and anything in the form of Avatar, where they can get a feel for the virtual world.

47. Digital Twin

A 3D virtual image similar to the real world.

48. Incarnate Avatar

Avatar is a user’s virtual identity in Games, Virtual Reality, or the Metaverse.

49.MetaMask Wallet

A crypto-asset wallet that can be used as a mobile app and chrome extension that further interacts with the Ethereum blockchain by providing features such as secure logins, token wallets, key vaults, and token exchanges.

50.Machine Learning**

A set of algorithms that can improve themselves through data and experience without human intervention.

Due to space limitations, I will dedicate the first 50 to you today, and see you next time in the second half.