Glossary

The world of Web3 is filled with unique terminologies that can be complex and often overwhelming for newcomers. Our Glossary section is designed to demystify these terms, providing clear and concise definitions to enhance your understanding of Web3 technologies.

Whether you're a beginner or looking to refine your knowledge, this glossary serves as a handy reference tool.

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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A

Altcoin Any cryptocurrency other than Bitcoin.

B

Blockchain A digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

C

Cryptocurrency A type of digital or virtual currency that uses cryptography for security and operates independently of a central bank.

D

Decentralized Applications (dApps) Applications that run on a blockchain or peer-to-peer network of computers instead of a single computer, enhancing their resistance to control and censorship.

E

Ethereum A decentralized, open-source blockchain system that features smart contract functionality.

F

Fiat Government-issued currency that is not backed by a commodity such as gold.

G

Gas A unit that measures the amount of computational effort required to execute operations like transactions or smart contracts on the Ethereum network.

H

Hash A function that converts an input (or 'message') into a fixed-size string of bytes. The output is typically a 'digest' that uniquely represents the input.

I

ICO (Initial Coin Offering) A fundraising method that involves selling new cryptocurrency tokens in exchange for Bitcoin or Ether.

J

Java Script Object Notation (JSON) A lightweight data-interchange format that is easy for humans to read and write, and easy for machines to parse and generate.

K

Key (Cryptography) A piece of information that determines the functional output of a cryptographic algorithm or cipher.

L

Ledger A record-keeping system for tracking transactions or contracts, where the data may be decentralized across multiple locations.

M

Mining The process of using computer hardware to perform complex calculations on blocks of data which maintain the Bitcoin network, among others, securing and verifying transactions.

N

Node A computer connected to the blockchain network, which supports the network by maintaining a copy of the blockchain and, in some cases, processing transactions.

O

Oracle A service that sends and verifies real-world occurrences and submits this information to blockchain networks to be used by smart contracts.

P

Proof of Stake (PoS) A type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus.

Q

Quantum Resistance The ability of a cryptocurrency's underlying cryptography to be secure against an attack by a quantum computer.

R

Ripple A technology that is both a cryptocurrency and a digital payment network for financial transactions.

S

Smart-Contract Self-executing contracts with the terms of the agreement directly written into lines of code, stored and replicated on the blockchain.

T

Token A digital unit designed with utility in mind, providing access and use of a larger crypto economic system.

U

Utility Token A type of token that is not designed as an investment but is instead intended to provide access to a network, product, or service.

V

Validator A participant in the Proof of Stake (PoS) consensus mechanism who is responsible for verifying transactions and creating new blocks in the blockchain.

W

Wallet A digital wallet that allows users to store and manage their cryptocurrencies and tokens.

X

XRP The cryptocurrency used by the Ripple network, designed to facilitate faster cross-border transactions.

Y

Yield Farming The practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.

Z

Zero Knowledge Proof A method by which one party can prove to another party that they know a value x, without conveying any information apart from the fact that they know the value x.

This glossary will be continually updated as new terms and technologies emerge in the Web3 space, ensuring it remains a current and valuable resource for everyone navigating this exciting field.