A brief guide on some words which are quite often used in the web3 space, do not get left out because you do not understand certain information – the ultimate Web 3 Glossary.
We will explain you common/often used words on crypto twitter or linkedin they are often used without context so its important to know what they mean.
A
- Airdrop
a marketing technique in which crypto projects send their native tokens directly to the wallets of their users in an effort to increase awareness and adoption, lately airdrops also happen based on usage of past competitor protocols.
- Alpha
valuable or insider information, usually regarding the value of digital assets like cryptocurrencies and NFTs; a measure of the return on investment over and above the return offered by the market or other benchmark.
- Altcoin
initially used to refer to any cryptocurrency that wasn’t Bitcoin, altcoin may now refer to any new cryptocurrency with a relatively small market cap.
- Alts
short for altcoins. - Ape
someone who invests heavily in a cryptocurrency or stock, or the act of doing so. This is sometimes a reaction to hype and FOMO, or done without much knowledge of the asset. It should be noted, though, that this is generally a self-assigned term and does not carry a negative connotation. Is it a Planet of the Apes reference? Maybe a reference to the sheer physical strength of apes? The origins are a bit blurry, but one thing is certain — apes together are strong. - ATH- All Time High
the highest price an asset has ever had.
- ATL- All Time Low
the lowest price an asset has ever had.
B
- Bear Market
a prolonged period of decline in a financial market.
- Bearish
similar to a bear market, this refers to holding a pessimistic view of a market or asset’s value. If you are bearish on a certain cryptocurrency, you believe its value will decrease over time. Those who are bearish may be referred to as bears, sometimes purposely misspelled as beras
- Bitcoin
the very first decentralized, peer-to-peer, digital currency, created by the pseudonymous Satoshi Nakamoto in 2009.
- Block
a batch of transactions written to the blockchain. Every block contains information about the previous block, thus, chaining them together.
- Blockchain
a publicly-accessible digital ledger used to store and transfer information without the need for a central authority. Blockchains are the core technology on which cryptocurrency protocols like Bitcoin and Ethereum are built. - A blockchain is a distributed database that allows for secure, transparent, and tamper-proof record-keeping. It is made up of a network of computers, called nodes, that each maintain a copy of the database. When a new transaction is made, it is verified by the nodes and added to the database as a “block.” These blocks are then linked together in a chain, creating a permanent and unchangeable record of all transactions.
- Blockchain technology is most commonly associated with cryptocurrencies, such as Bitcoin and Ethereum. It allows for secure, decentralized transactions without the need for a central authority, such as a bank. However, blockchain technology has many potential applications beyond just financial transactions, such as in supply chain management and voting systems.
- Blockchain Domains
- Blockchain domains are a type of decentralized, blockchain-based domain name system. In traditional domain name systems, domain names are managed by a central authority, such as a registry or registrar. However, in a blockchain domain system, the domain names are stored on a decentralized network, such as a blockchain, and can be bought and sold without the need for a central authority. Blockchain domains offer several advantages over traditional domain names. Because they are decentralized, they are not subject to the same regulations and restrictions as traditional domain names. They are also more secure, as they use cryptographic techniques to protect against hacking and tampering.
- Additionally, because they are stored on a blockchain, they are permanent and cannot be deleted or seized. Overall, blockchain domains are an important part of the growing decentralized web, or “Web3,” and offer a new way for individuals and organizations to own and control their online identity.
- Block Explorer
a tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates. - A block explorer is a tool that allows users to search and view information on a blockchain. It acts as a search engine for the blockchain, allowing users to view details on specific transactions, blocks, addresses, and other data on the blockchain.
- Block explorers are useful for a variety of purposes. They can be used to track and verify transactions on a blockchain, view the history and status of a specific address, and monitor the overall health and activity of a blockchain network.
- Many block explorers also provide additional information and features, such as real-time transaction data, market prices and charts, and network statistics. Some popular block explorers include Blockchain.com and Etherscan.io.
- Bridge
a protocol allowing separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
- Buidl
meaning “build,” a common intentional misspelling used in crypto circles in reference to the term HODL
- Bull Market
a period where market prices are rising. - A bull market is a financial market in which prices are generally rising or are expected to rise. It is characterized by investor optimism and confidence, as well as increased buying activity.
- In a bull market, investors are more likely to take on risk and invest in assets with the expectation of earning a profit. This can lead to increased demand for stocks, bonds, and other assets, driving up their prices.
- Bull markets are often contrasted with bear markets, which are characterized by falling prices and investor pessimism. A bull market can be seen as the opposite of a bear market, with investors having a positive outlook and being more willing to buy assets.
- Overall, a bull market is a favorable market environment for investors and can lead to increased economic growth and prosperity.
- Bullish
similar to a bull market, this refers to holding an optimistic view that a market or asset will rise in price. If you are bullish on Bitcoin, you believe that its value will continue to rise over time.
- Burn
the process of removing tokens from a cryptocurrency’s circulating supply, usually done by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process.
C
- Centralized
a hierarchical structure in which authority and control are concentrated within a small group of decision-makers.
- CEX- Centralized Exchange
a cryptocurrency exchange managed by a centralized business or entity.
i.e. Coinbase, Gemini, Kraken
- CeFi- Centralized Finance
centralized businesses that participate in crypto.
I.e. BlockFi, DCG, Grayscale
- Coin
a cryptocurrency built on its own native blockchain, intended to be used as a store of value and medium of exchange within that ecosystem.
i.e. BTC, ETH
- Collateral
any asset accepted as security for a loan, such as a physical asset like real estate, or a digital asset like an NFT.
- Cold Wallet
an offline device used to store cryptocurrencies. Cold wallets can be hardware devices or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.
See also: hot wallet (antonym)
- Consensus
the state of agreement amongst the nodes on a blockchain. Reaching consensus is necessary for new transactions to be verified and new blocks to be added to the blockchain.
- Consensus Mechanism
a process through which nodes on a blockchain come into agreement on a transaction or state of the network.
See: Proof of Work, Proof of Stake
- Cryptocurrency
a digital asset designed to be used as a medium of exchange. Cryptocurrencies are borderless, secure, and maintained by blockchains as opposed to centralized banks or governments.
D
- DAO- Decentralized Autonomous Organization
an organization based on open-source code and governed by its users. DAOs typically focus on a specific project or mission and trade the traditional hierarchical systems of legacy corporations for guidelines written on the blockchain.
- Dapp- Decentralized Application
an application built on open-source code that lives on the blockchain. Dapps exist independent of centralized groups or figures and often incentivize users to maintain them through rewarded tokens.
- Data
in the context of the internet, data refers to a user’s personal information, such as name, age, location, interests, browsing history, device usage, purchasing habits, etc. Web3 aims to protect this personal data and give ownership of it back to the user.
- DD- Due Diligence
the process of conducting your own research on a cryptocurrency, stock, or other asset before investing. Doing your own DD is essential, as opposed to making an investment based on what someone else says or does.
“This is just based on my own research, so do your DD before investing yourself.”
- Decentralized
a system that operates without the control of a central figure or authority, and replaces it with a distributed peer-to-peer network.
- Degen
initially short for “degenerate gambler.” While this still refers to individuals involved with risky bets, degen may also refer more broadly to anyone involved in crypto and financial spaces. Like with “ape,” this is generally a self-assigned term and does not carry a negative connotation. Degens are proud people who enjoy ridiculous call options on GME, buying the dip before paying their rent, and occasionally aping into shitcoins.
“Which one of you degens just bought $50K of XRP at its ATH?!”
- DeFi- Decentralized Finance
the ecosystem of borderless, trustless, peer-to-peer financial tools being built on public blockchains without the use of banks. Defi apps are built to be open and interconnected, allowing them to be used in conjunction with one another.
- DEX- Decentralized Exchange
a peer-to-peer cryptocurrency exchange built on the blockchain. A DEX is run by its users and smart contracts instead of an intermediary figure or centralized institution.
i.e. Uniswap, 1inch, Sushiswap
- Diamond Hands
a term implying that you are extremely bullish on a certain asset, and have no plans to sell regardless of market volatility, FUD, or extreme drops in price. Someone who holds onto a cryptocurrency or stock as it drops 40% in a day is said to have diamond hands.
See also: paper hands (antonym)
- Difficulty
the level of computing power needed to verify transactions and mine blocks on a proof-of-work blockchain.
- Difficulty Bomb
the process of increasing the difficulty of a proof-of-work blockchain in order to motivate the transition to another consensus algorithm (such as proof-of-stake in the case of Ethereum).
- DYOR- Do Your Own Research
similar to DD, this phrase is used to remind people to conduct their own investigation into an asset before investing in it.
“I’m very bullish on this, but obviously DYOR.” - DYOR stands for “Do Your Own Research.” It is a common phrase used in the world of investing, particularly in the cryptocurrency and blockchain space.
- The idea behind DYOR is that individuals should take responsibility for their own investment decisions and not blindly trust the advice of others. This means conducting thorough research and due diligence on any investment opportunities, examining the risks and potential rewards, and consulting with financial professionals if necessary.
- DYOR is important because the world of investing can be complex and risky, and it is essential for individuals to make informed decisions based on their own research and analysis. By taking the time to DYOR, individuals can avoid making costly mistakes and increase their chances of success.
E
- EIP- Ethereum Improvement Proposal
a standard format for presenting a new feature or process to the Ethereum community.
- ERC- Ethereum Request for Comments
the standard smart contract outline on which Ethereum-based smart contracts are built.
- ERC-20
the Ethereum token standard, providing a standardized smart contract structure for fungible tokens. - ERC 20 is a technical standard used for smart contracts on the Ethereum blockchain. It defines a set of rules that must be followed by Ethereum tokens in order to be deemed “ERC 20 compliant.”
- ERC 20 was developed to ensure compatibility and interoperability between different Ethereum tokens. It specifies a common set of rules, such as how tokens are transferred and how information about them is displayed. This allows different tokens to be easily exchanged and used within the Ethereum ecosystem.
- Most initial coin offerings (ICOs) on the Ethereum platform use the ERC 20 standard, as it allows investors to easily purchase and trade the tokens. ERC 20 has become the de facto standard for Ethereum tokens, and most wallet providers and exchanges support ERC 20 compliant tokens.
- ERC-721
an Ethereum token standard that allows for the formation of unique tokens, otherwise known as NFTs, or non-fungible tokens. Unlike the ERC-20 standard, ERC-721 tokens have specific properties that allow each to be uniquely identified and valued independently of one another.
- ERC-1155
an Ethereum token standard that allows for fungible, non-fungible, and semi-fungible tokens to be managed by a single smart contract simultaneously. These are commonly used in gaming and collectible trading to reduce the number of necessary transactions.
- Ethereum
a public blockchain serving as the foundation for decentralized applications. Ethereum is a turing complete language, allowing for users to write and deploy complex, self-executing smart contracts which live on the blockchain.
F
- Few
short for “Few understand”. A rallying cry that crypto folks are still early in this space and will make a lot of money when mass adoption comes.
- Fiat
a currency established as legal tender often backed and regulated by a government, such as the US Dollar or the Euro. - Fiat is a term used to refer to government-issued currency, such as the US dollar or the Euro. It is called “fiat” currency because it is issued and backed by the government, rather than being tied to a physical commodity such as gold.
- Fiat currency has been used as a medium of exchange for centuries and is still the most common form of currency in use today. It is issued and regulated by central banks and is accepted as a means of payment in most countries.
- One of the main advantages of fiat currency is that it is relatively stable and can be easily exchanged for goods and services. However, because it is not tied to a physical commodity, its value can also be subject to inflation and other economic forces.
- In recent years, the rise of cryptocurrencies has challenged the dominance of fiat currencies. Cryptocurrencies, such as Bitcoin and Ethereum, are decentralized digital currencies that use blockchain technology for security and are not issued by any central authority. They have gained popularity as an alternative to fiat currencies, although their use is still relatively limited.
- Flippening
a reference to the possible event of Ethereum becoming more valuable than Bitcoin, in terms of market cap. DISCLAIMER: Please do not mention the flippening to Bitcoin maxis. They will not think it is funny, and they will proceed to explain why Ethereum is a shitcoin.
- FOMO- Fear Of Missing Out
a feeling of anxiety, stemming from missing out on an opportunity. In investing, this usually coincides with investors buying an asset after it has already seen a considerable increase in price, hoping to get in and out before a pullback occurs. This is known as “FOMOing in” or “aping in.”
- Fork
a change to a blockchain’s protocol. When these changes are minor, this results in a soft fork. When the changes are more fundamental, this may result in a hard fork, leading to the formation of a separate chain with different rules.
See also: hard-fork, soft-fork
- Fractionalize
the process of locking an NFT into a smart contract, and then dividing it into smaller parts which are issued as fungible tokens. This lowers the price of ownership and allows artwork and other digital assets to be owned by a community.
- FUD- Fear, Uncertainty, and Doubt
news around an asset that seems negative, but turns out to be false or blown out of proportion.
- Full Node
a blockchain node that stores the blockchain’s complete history, as well as verifies and relays transactions.
See also: node, light node, master node - A full node is a computer or device that maintains a full copy of the blockchain and participates in the operation of a decentralized network, such as a blockchain.
- In a blockchain network, full nodes are responsible for verifying and validating transactions, as well as adding new blocks to the blockchain. They do this by using their computing power to solve complex mathematical puzzles and compete with other nodes to be the first to add a new block to the chain.
- Full nodes are an essential part of a blockchain network, as they help ensure the security and integrity of the network. They play a critical role in maintaining the decentralization of the network, as they are not controlled by any central authority.
- To run a full node, individuals need to download and install the full blockchain on their computer or device. This can require a significant amount of storage space and computing power. However, running a full node allows individuals to have full control over their own transactions and help support the network.
- Fungible
interchangeable; exchangeable with something else of the same kind. - Fungible is a term used to describe assets or goods that are interchangeable and can be easily substituted for each other. For example, a dollar bill is considered fungible because any dollar bill has the same value as any other dollar bill and can be easily exchanged for other goods or services.
- In the context of cryptocurrencies, fungibility refers to the ability of a cryptocurrency to be easily exchanged for another cryptocurrency or for fiat currency without any loss of value. This is important because it allows individuals to easily and securely transact with each other without worrying about the specific origins or history of the coins.
- For example, Bitcoin is considered a fungible cryptocurrency because one Bitcoin is worth the same as any other Bitcoin and can be easily exchanged for other currencies. However, some cryptocurrencies, such as Bitcoin Cash, are not fully fungible because they have different transaction histories and may not be accepted by all exchanges and merchants.
- Overall, fungibility is an important characteristic of a successful currency, as it allows for easy and efficient transactions.
G
- Gas
a fee paid by a user to conduct a transaction or execute a smart contract on the Ethereum blockchain. This fee is dependent upon the transaction’s complexity as well as the current demand on the network.
See also: gwei - Gas fees, also known as transaction fees, are the fees that users must pay to use the Ethereum network. Every time a user wants to execute a transaction on the Ethereum network, they must include a certain amount of gas, which is paid in Ether, the native cryptocurrency of Ethereum.
- The amount of gas required for a transaction is determined by the complexity of the transaction and the amount of computational resources it requires. More complex or resource-intensive transactions will require more gas and therefore cost more in fees.
- Users can choose how much gas to include with their transactions, with higher amounts leading to faster processing times. However, they must also consider the cost of the gas, as the fees are deducted from their Ether balance.
- Gas fees are an important part of the Ethereum network, as they help to incentivize miners to process transactions and ensure the security and integrity of the network. They also help to limit spam and malicious transactions on the network.
- Genesis Block
the very first block of a blockchain network.
- gm
simply meaning “good morning,” gm is a common greeting used in crypto circles
- GMI
short for “gonna make it.” This term is frequently thrown around on Twitter to voice support for a project or person.
See also: NGMI (antonym)
- Gwei
a denomination of ether used as the unit of measure for Ethereum gas prices. 10^9 gwei = 1 ether.
See also: gas, wei
H
- Hard Fork
a fundamental change to a blockchain that is not compatible with the existing protocol, requiring the formation of a new chain.
i.e. Bitcoin vs. Bitcoin Cash, Ethereum vs. Ethereum Classic - A hard fork is a permanent divergence in the blockchain of a cryptocurrency, resulting in two separate versions of the blockchain. It occurs when a significant portion of the network, such as the users or miners, disagree on the rules governing the network and create a new version of the blockchain that is incompatible with the old version.
- A hard fork can happen for a variety of reasons, such as a disagreement over the direction of the project, the need to fix a security vulnerability, or the introduction of new features or functionality. It is a significant event in the life of a cryptocurrency and can have far-reaching consequences for the network and its users.
- When a hard fork occurs, the users and miners of the cryptocurrency must choose which version of the blockchain they want to support. This can lead to confusion and uncertainty, as well as potential disputes and conflicts. It can also result in the creation of new cryptocurrencies, as was the case with the Bitcoin Cash hard fork in 2017.
- Overall, hard forks are a natural part of the evolution of a cryptocurrency and can lead to important changes and improvements to the network. However, they can also be contentious and create challenges for users and the broader community.
- Hashing
the process of taking an input of any size and producing a corresponding fingerprint of a fixed-length. Hashing allows a set of data to be secured, stored, and recalled using a unique identifier code. This is the backbone of blockchain technology, allowing data and transactions to be verified and stored in a secure manner.
See also: SHA-256, txn hash
- Hash Rate
also referred to as hash power, this is the rate at which a computer can generate guesses to a cryptographic puzzle. Hash rate can also refer to the overall power being used by the entire network on a proof of work blockchain. - Hash rate, or hash power, is a measure of the processing power of a cryptocurrency mining rig or network. It is defined as the number of hashes, or calculations, that can be performed by a mining rig or network per second.
- The hash rate is an important metric for the performance and security of a cryptocurrency network. Higher hash rates indicate that the network is more secure, as it is more difficult for attackers to perform a 51% attack, in which they gain control of the majority of the network’s computing power.
- The hash rate is also a key factor in the profitability of mining. In general, the higher the hash rate, the more rewards a miner is likely to earn for successfully adding new blocks to the blockchain. However, the hash rate is also influenced by other factors, such as the price of the cryptocurrency and the cost of electricity.
- Overall, the hash rate is an important metric for evaluating the health and performance of a cryptocurrency network.
- HFSP- Have Fun Staying Poor
a phrase commonly aimed at individuals who do not own any cryptocurrencies, or don’t believe in the value of a certain asset.
“Did you buy some ETH yet?”
“No, crypto is a ponzi-scheme that will crash any day now.”
“LOL okay HFSP.”
- HODL
an expression meaning “hold” and frequently taken to be an acronym for Hold On for Dear Life. This term actually began its life as a typo on an old forum, Bitcointalk.org, where user GameKyuuby explained that he was “HODLING” his bitcoin as the price dropped. The misspelling quickly caught on and is still used today.
- Holding the bag
this is the unfortunate position you find yourself in when an asset you own quickly drops in value but you do not sell. You are thus left holding a bag of worthless coins or stocks. Those who end up in this position are referred to, unsurprisingly, as bagholders.
“I’m not holding the bag. I’m HODLING. The bull market isn’t over.”
I
- ICO- Initial Coin Offering
the selling of tokens to the public in order to raise capital for a crypto-based project . ICOs are a crowdfunding approach, similar to a traditional company’s IPO.
- IEO- Initial Exchange Offering
similar to an initial coin offering, or ICO, an initial exchange offering is a method of selling tokens to raise capital, but with increased regulation. Unlike an ICO, which sells new tokens directly to the public, an IEO is managed by an existing cryptocurrency exchange. By working with a known and trusted exchange, IEOs seek to make the ICO process more secure.
K
- Key
See public key, private key
L
- L1- Layer 1
this is the blockchain platform itself, also referred to as the base layer, mainchain, or mainnet.
i.e. Bitcoin, Ethereum, Cardano, Litecoin, Solana, Polkadot
- L2- Layer 2
protocols, also referred to as solutions, built on top of a layer 1 blockchain and commonly used to improve scalability, and privacy, and add cross-chain communication. Unlike sidechains, which use their own consensus mechanisms, layer 2 solutions are secured by their underlying mainchain.
i.e. Lightning Network, Optimism, Arbitrum
- Lambo
short for Lamborghini. The ability to purchase Lambo is a goalpost for success, used in a myriad of phrases in the crypto and degen spaces. For instance “wen Lambo?” roughly translates to “I just purchased $43 worth of Dogecoin. When will the value of said investment increase enough to enable the purchase of a Lamborghini?”
- Light Node
a blockchain node that downloads just enough data from the blockchain in order to process and verify transactions. Unlike full or master nodes, light nodes do not store a blockchain’s complete history.
- Liquidity
In the context of cryptocurrencies, liquidity refers to the ease with which a cryptocurrency can be bought or sold on the market. A cryptocurrency with high liquidity is one that can be easily bought or sold, with a large number of buyers and sellers and minimal price impact. - Liquidity is an important factor for investors and traders, as it allows them to quickly and easily enter and exit positions in a cryptocurrency. High liquidity can also help to reduce volatility and stabilize prices, making a cryptocurrency more attractive to investors.
- There are several factors that can affect the liquidity of a cryptocurrency. These include the size and activity of the market, the popularity and acceptance of the cryptocurrency, and the presence of liquidity providers, such as exchanges and market makers.
- Overall, liquidity is an important consideration for individuals and organizations looking to invest in or use cryptocurrencies. It can impact the ease and cost of transactions, as well as the overall stability and attractiveness of the cryptocurrency.
- Liquidity Pool
a collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform. On decentralized exchanges and lending protocols liquidity must be provided by the users, as there is no central bank or figure to do so.
M
- Mainnet
short for main network, this is a main layer 1 blockchain, as opposed to a testnet or layer 2 solution.
See also: L1, testnet (antonym)
- Market Cap
the total value of an asset based on its current market price. A cryptocurrency’s market cap is found by multiplying the price of a single coin by its circulating supply. - Market cap, short for market capitalization, is a metric used to measure the size and value of a cryptocurrency. It is calculated by multiplying the current price of the cryptocurrency by the total number of coins or tokens in circulation.
- The market cap is an important metric for evaluating the relative size and value of a cryptocurrency. It is often used to compare different cryptocurrencies and assess their relative popularity and value.
- A high market cap indicates that a cryptocurrency has a large number of coins or tokens in circulation and a high value per coin. This can make it more attractive to investors and users, as it suggests that the cryptocurrency is widely accepted and has a high level of liquidity.
- However, the market cap should be considered alongside other metrics, such as the daily trading volume and the number of active users, to provide a more complete picture of the health and value of a cryptocurrency.
- Master Node
a blockchain node that verifies and relays transactions, stores the blockchain’s complete history, and may participate in voting, governance of the blockchain, and other special operations. Master nodes generally operate on a collateral based system, similar to a Proof-of-Stake protocol.
See also: node, full node, light node
- Metaverse
a theoretical or emergent networked online space with digitally persistent environments that people inhabit, as avatars, for synchronous interactions and experiences, accessing the shared virtual space through virtual reality, augmented reality, game consoles, mobile devices, or conventional computers.
- The metaverse is a collective virtual shared space, created by the convergence of the physical and digital worlds. It is a term coined by sci-fi author Neal Stephenson in his 1992 novel Snow Crash, in which he describes a virtual reality world that is accessed and interacted with using virtual reality technology.
- In recent years, the rise of virtual and augmented reality technologies has made the concept of the metaverse more tangible. Today, the metaverse is often seen as a potential future reality in which people can interact with each other and with virtual objects and environments in real time, using advanced technologies such as virtual reality headsets, haptic suits, and voice and gesture controls.
- The metaverse has the potential to revolutionize many aspects of society, from entertainment and gaming to education and commerce. It could also create new opportunities for social interaction, collaboration, and creativity, as well as raise important questions about privacy, identity, and the nature of reality itself.
- Mining
in a Proof of Work system, this is the process of verifying transactions, organizing them into blocks, and then adding blocks to the blockchain. Participants who perform this process are called miners.
- Minting
the process of validating information, such as domain ownership, and registering that onto the blockchain.
- Moon / To the moon!
this phrase implies that the value of an asset will go so high that it will reach the literal moon. This is used by shills, bulls, and during a bull market, essentially everyone. Another form of this is “wen moon?” This is used to express one’s impatience with an asset which is not increasing in value as quickly as they had hoped.
See also: Lambo
- Moonboy
a term for social media “financial experts” and YouTubers who are overly optimistic and constantly explaining how a given asset is “about to go to the moon!”
See also: shill
N
- NFT- Non-fungible token
a digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.
See also: ERC-721, non-fungible - NFT, short for non-fungible token, is a type of digital asset that represents ownership of a unique, one-of-a-kind item or piece of content. It is built on a blockchain, such as Ethereum, and uses smart contract technology to enforce scarcity and ownership.
- NFTs are often used to represent digital art, collectibles, and other unique digital items. They allow creators and owners to prove ownership and authenticity of their digital creations, as well as to earn revenue from the sale and trading of their NFTs.
- NFTs have gained popularity in recent years, with the emergence of decentralized marketplaces such as OpenSea, Rarible, and SuperRare. They have also been used in a variety of creative and commercial applications, such as virtual real estate, digital art auctions, and gaming items.
- Overall, NFTs are an important innovation in the digital asset space, as they provide a new way for individuals and organizations to own and trade unique digital items. They are also a key part of the growing decentralized finance, or DeFi, ecosystem.
- NFT Domains
domain names minted on the blockchain which allow people to govern their own data, set their Web3 username, take control of their digital worlds, and harness the power of the internet.
- NGMI
short for “not gonna make it.” This is used to imply that a certain project or asset has a low chance of becoming valuable. This can also be directed at an individual, usually someone who had made a poor trade or investment.
“Everyone who sold their ETH during that dip ngmi.”
- Nocoiner
a term used to describe someone who does not hold any cryptocurrencies, or who is generally unfamiliar with crypto.
- Node
any device connected to a blockchain network. Different nodes have varying levels of responsibility, and may help validate transactions, store the blockchain’s history, relay data, and perform other functions. Because blockchains are distributed peer-to-peer networks, nodes come together to create the network’s infrastructure.
See also: full node, light node, master node
- Non-fungible
unique; not interchangeable.
See also: NFT
O
- Oracle
a service supplying smart contracts with data from the outside world. Smart contracts are unable to access data that exists off-chain, so they rely on oracles to retrieve, verify, and provide external information. - Oracles can provide a variety of data and information, such as prices, weather data, sports scores, and event outcomes. They are an essential part of the decentralized finance, or DeFi, ecosystem, as they enable the creation of complex financial instruments and applications that are powered by smart contracts.
- Overall, oracles are an important innovation in the world of cryptocurrencies and blockchain technology, as they enable the creation of new and powerful decentralized applications.
i.e. Chainlink, Band Protocol
P
- P2P- Peer-to-Peer
a distributed network of two or more computers which interact directly without a central server or entity.
- Paper Hands
a term used to describe someone who sold a cryptocurrency or stock as its price was falling, usually for a loss. Someone with paper hands is said to be weak and unable to stomach market volatility.
- PFP
profile picture for example on social media, usually referring to one of an NFT
- Pilled
see red pilled
- Private Key
an alphanumeric passcode required to withdraw assets from a blockchain wallet and authorize digital transactions. Because these private keys are long and difficult to memorize, wallets will generally associate them with a seed or recovery phrase that is easier to remember.
See also: public key, seed phrase
- Potentially Promising
first used by Elon Musk to refer to planned upgrades to Dogecoin. Referring to something as being potentially promising quickly caught on, being used both sarcastically and in a serious manner, albeit tongue-in-cheek.
- PoS- Proof of Stake
a consensus mechanism that requires nodes, called validators, to stake a set amount of cryptocurrency on the blockchain in order to verify transactions and mint blocks. If a validator approves fraudulent transactions, then a portion of their stake will be slashed.
See also: slash
- PoW- Proof of Work
a consensus mechanism that requires miners to complete complex mathematical puzzles in order to verify transactions and mint blocks. When a miner correctly solves a puzzle, they gain access to mint the next block and receive the corresponding block reward and transaction fees.
See also: miners
- Protocol
the foundational software layer of a program. Protocol has become a general term used to refer to both layer 1 blockchain networks and the layer 2 applications built on top of them — Bitcoin, Ethereum, Uniswap, and Lightning Network can all be considered protocols.
- Public Key
uses to point to your wallet address, this is an alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send digital assets to your wallet via your public key, but only you can access your wallet’s contents by using the corresponding private key.
See also: wallet address, private key
- Pump and dump
a scheme where a cryptocurrency or other asset is hyped up, leading many to buy into it, raising its price. Those who did the hyping then sell their holdings of the asset as the price rises for a short period of time. This then leads to a sharp selloff where anyone who did not sell suffers a loss.
See also: holding the bag, rekt, rug pull
R
- Rekt
as in “wrecked,” used to express that one has suffered a huge loss.
- Rug pull
a scam maneuver where a crypto project takes the funds that have been invested into its protocol and runs. An inside job pump-and-dump, if you will. A rug pull can also occur in assets with highly centralized ownership. If someone is able to sell a large portion of the circulating supply at once, this rapidly increases the supply, which can cause the price of the asset to plummet. - A rug pull, also known as a rug sweep, is a scam in which the creators of a cryptocurrency or decentralized finance (DeFi) project suddenly withdraw the majority of the funds from the project, leaving investors with worthless tokens.
- Rug pulls are a common tactic among scammers who create fake or fraudulent projects in order to raise money from unsuspecting investors. They often use marketing tactics and hype to generate interest in their project and persuade investors to buy their tokens.
- Once the creators of the project have raised enough funds, they can perform a rug pull by withdrawing the majority of the funds from the project’s smart contract and cashing out. This leaves the investors with worthless tokens and no way to recover their funds.
- Rug pulls are a serious problem in the world of cryptocurrencies and DeFi, as they can cause significant losses for investors and damage the reputation of the broader industry. Investors should be cautious and do their own research before investing in any cryptocurrency or DeFi project.
- Rollup
a scaling solution that aims to improve transaction throughput and decrease fees by batching multiple transactions off-chain and then submitting them to the main chain as a single transaction.
i.e. Optimism, ZK, Arbitrum
S
- Satoshis/Sats
the smallest denomination of BTC, equal to 0.00000001 bitcoin. Satoshis are named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
- Scalability
a protocol’s capacity to handle higher demand and increase transaction throughput as the network grows.
- Seed Phrase
a string of words used as a master password to access a crypto wallet. Because a single wallet can contain multiple accounts, all with their own private keys, a seed phrase makes it easy to access them all with the same password.
- Ser
meaning “sir,” a common intentional misspelling used in crypto circles
“GM ser”
- SHA-256
SHA stands for Secure Hashing Algorithm, a set of cryptographic hashing functions designed by the NSA. Essentially, SHA-256 takes an input of data and generates a long sequence of letters and numbers, called a hash. This hash is then used as a secure placeholder for the data it represents.
See also: hashing
- Sharding
a method of separating a network’s nodes out into smaller groups (shards) in an attempt to increase scalability. These shards are then able to reach consensus on behalf of the entire network, removing the need for every node to process every transaction.
- Shill
the act of heavily promoting a cryptocurrency, stock, or other asset in an effort to increase adoption and, in turn, raise its price. This is usually done via spamming on social media, and generally carries a negative connotation. A person who performs the act of shilling may also be referred to as a shill.
“I’ve been shilling this new dog coin on Twitter all month, wen Lambo?!”
- Shitcoin
a cryptocurrency with weak fundamentals and little to no use case. Or lately a coin with a small markt cap.
- Sidechain
a parallel blockchain used to offload transactions from the main chain in order to increase scalability or add other functionality. Sidechains are connected to their main chain, or parent chain, via a two-way link which allows data and assets to be seamlessly transferred.
i.e. Matic, Dai
- Slashing
the process of burning or redistributing a validator’s staked cryptocurrency as punishment for approving fraudulent charges or otherwise endangering the network.
- Slippage
the price of a cryptocurrency may change between the time an order is placed and the time that order is ultimately filled. Slippage is the difference between a cryptocurrency’s quoted price and the price that a trade actually executes at.
- Smart Contract
self-executing code deployed on a blockchain. Smart contracts allow transactions to be made without an intermediary figure and without the parties involved having to trust one another.
- Soft Fork
a backwards compatible update to a blockchain. Unlike a hard fork, these changes do not require the creation of a separate chain.
See also: fork, hard fork
- Solidity
the native programming language of Ethereum, mainly used to write smart contracts.
- Stablecoin
a token with its value pegged to another asset. Stablecoins are usually backed by a fiat currency, like the US dollar, but can also be pegged to physical assets like precious metals, or even other cryptocurrencies like Bitcoin.
i.e. USDT, Dai, USDC
T
- Testnet
a software environment that mimics a mainnet blockchain, used to test network upgrades and smart contracts before deploying them to the mainnet.
- TLD- Top Level Domain
the last segment of a domain name, or the part that follows immediately after the “dot” symbol.
i.e. .crypto, .nft, .x
- Token
unlike a coin, a token is a digital asset created on an existing blockchain. Tokens can be used to represent digital and physical assets, or used to interact with dapps.
i.e. LINK, UNI, AAVE
- TPS- Transactions per second
the number of transactions that a blockchain can handle per second, used as a benchmark to measure its computational power.
- Transaction
data written to a blockchain. New transactions are verified by nodes on the network and then broadcasted to other nodes. Once enough nodes have verified the transaction, it is considered valid and added to a block.
- TVL- Total Value Locked
a measure of the assets locked into an dapp’s smart contract, usually expressed in USD.
- Txn Hash
short for transaction hash, or transaction ID. This is a unique identifier used to represent a specific transaction, written as a long string of letters and numbers. By pasting a txn hash into a block explorer like Etherscan, you can find the details of the transaction it represents.
See also: hashing, SHA-256
U
- Ultrasound Money
- a rebuttal against the argument that Bitcoin is “sound money” or the “hardest form of currency” by saying that Ethereum post-EIP 1559 and post-ETH2 merge will be more sound than Bitcoin. So calling Ethereum Ultrasounds Money
- Up Only
- a tongue-in-cheek saying, implying that a cryptocurrency or other asset can only increase in value. This is used to voice one’s bullish stance on an asset, although it may also be used sarcastically.
V
- Vaporware
a product or project that is announced and marketed but never actually materializes.
W
- WAGMI
“We’re All Gonna Make It,” a common saying in crypto and trading circles signaling camaraderie and a positive outlook.
See also: GMI, NGMI
- Wallet
a software application or hardware device used to store the private keys to blockchain assets and accounts. Unlike a traditional wallet, a blockchain wallet does not actually store the coins or tokens themselves. Instead, they store the private key that proves ownership of a given digital asset.
i.e. Metamask, Coinbase Wallet, Ledger, Trezor
- Wallet Address
also known as a public key, this is an alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send digital assets to your wallet via your public key, but only you can access your wallet’s contents by using the corresponding private key.
- Web1
the first iteration of the web, commonly referred to as the “read-only web.” Web1 was characterized by static websites that displayed information. There was little to no user interaction or user-generated content.
- Web2
starting in the 90s, the “read-write web” is characterized by user-generated content and improved user interfaces. This led to the creation of blogs and social media platforms, as well as sites like Wikipedia and YouTube. Web2 placed more emphasis on user experience and interoperability between different applications and websites, giving us the vast network of connected websites and resources that we are familiar with today.
- Web3
the next iteration of the web being ushered in as we speak, which leverages blockchain technology, open-source applications, and the decentralization of data and information. Web3 aims to remove control of the web from monopolistic tech companies, and return ownership of data and content to its users. Also referred to as the “read-write-trust web.”
- Wei
the smallest denomination of ether, named after cypherpunk and cryptocurrency pioneer, Wei Dai. 10^18 gwei = 1 ether.
Y
- YOLO- You Only Live Once
investing too much money into a single asset; making a generally risky bet.
#
- 51% Attack
an attack in which a single entity or organization gains control of over half of the nodes or mining power on a network. This then allows the entity to disrupt the network by excluding certain transactions, double spending cryptocuhwarrrency, and performing other malicious acts.
We hope you now do not feel left out in coversation and can understand some web3 degen terms.
Moritz Pindorek (Moritzpindorek.com)
Social Media, Marketing & Blockchain
Crypto/Web 3 Advisor, Top 10 Crypto Influencer 2022(Forbes Monaco) & Top 10 Entrepreneur 2022 (Forbes Monaco)
Owner and writer for Cryptouserguide.com
