Web3 is the term generally used for the next era of the internet, a decentralized version where people can control their own data, assets, and identity. With the rise of blockchain technology and non-fungible tokens (NFTs), the world of web3 is rapidly expanding.
In this post, we’ll provide you with a comprehensive glossary to the most important web3 terms that every creator and marketer should know.
Blockchain: A decentralized, distributed ledger that records transactions in a secure, transparent, and tamper-proof manner.
Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Non-Fungible Token (NFT): A unique digital asset that represents ownership of a specific item or piece of content, such as a digital art piece or collectible.
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Decentralized Autonomous Organization (DAO): A digital organization that operates independently without the need for central authority or intermediaries.
Smart Contract: A self-executing contract that automatically executes the terms of the agreement between buyer and seller.
Gas: A fee required to perform operations on the Ethereum blockchain, used to incentivize miners to process transactions.
Ether (ETH): The native cryptocurrency of the Ethereum blockchain, used to pay for gas and transact on the network.
Public Key: A unique code used to receive cryptocurrency or digital assets. Private Key: A secret code used to access and control a cryptocurrency or digital asset.
Digital Wallet: A secure software program that stores and manages cryptocurrencies, digital assets, and private keys.
Miner: An individual or group that processes transactions and validates blocks on a blockchain network, receiving rewards for their work.
Node: A computer connected to a blockchain network that stores a copy of the ledger and participates in its consensus mechanism.
Consensus Mechanism: A process by which nodes on a blockchain network agree on the validity of transactions and reach consensus on the current state of the ledger.
Tokenization: The process of converting physical assets into digital assets represented by tokens.
Stablecoin: A cryptocurrency designed to maintain a stable value, often backed by fiat currency or other assets.
DeFi (Decentralized Finance): A financial system built on blockchain technology that operates without intermediaries, offering users greater control and transparency over their financial transactions.
Yield Farming: An investment strategy that involves providing liquidity to DeFi protocols in exchange for rewards, often in the form of tokens or interest.
Liquidity Provider: An individual or entity that provides liquidity to a decentralized exchange or protocol, helping to ensure that assets can be easily traded.
DEX (Decentralized Exchange): A platform for trading cryptocurrencies and digital assets without the need for central intermediaries.
CEX (Centralized Exchange): A platform for trading cryptocurrencies and digital assets, typically operated by a single entity.
MetaMask: A browser extension and digital wallet that allows users to interact with decentralized applications (dApps) and store their digital assets.
dApp (Decentralized Application): An application built on blockchain technology that operates independently and without the need for central intermediaries.
Oracles: Third-party services that provide information and data to smart contracts, allowing them to execute hiker Continue automatically based on real-world events.
ERC-721: A standard for creating non-fungible tokens (NFTs) on the Ethereum blockchain, used to represent unique digital assets such as collectibles or artwork.
ERC-20: A standard for creating fungible tokens on the Ethereum blockchain, used to represent a fixed amount of an asset such as a cryptocurrency.
Solidity: The primary programming language used to write smart contracts on the Ethereum blockchain.
Web3: A decentralized, distributed internet that gives users control over their data, assets, and identity.
IPFS (InterPlanetary File System): A decentralized file storage system that allows for the storage and sharing of files in a secure, transparent, and tamper-proof manner.
HODL: An investment strategy that involves holding onto an asset, particularly a cryptocurrency, for an extended period of time, regardless of market fluctuations.
Whales: Major holders of a particular asset, such as a cryptocurrency, who can potentially influence the market with their large holdings.
With the rise of blockchain technology and NFTs, it’s important to understand these terms and how they can impact the creative and marketing industries. Stay ahead of the curve by learning about these terms and how they can be utilized in your work, and stay up-to-date by signing up for THE DEPT OF NEXT NEWSLETTER below.