Crucial Cryptocurrency & NFT Terms Defined
The Web3 movement is poised to revolutionize the way we use the internet. Discover the terminology you need to know as we move forward into a new era for the World Wide Web.
Also referred to as a blockchain or wallet address. This address is composed of alphanumeric characters and helps to identify a transaction’s location on the blockchain.
Altcoin refers to a form of cryptocurrency other than Bitcoin. One of the most popular altcoins is Ether, which is the token of the Ethereum network.
To “Ape In” to a new NFT or currency is to rush into purchasing enthusiastically, sometimes without conducting thorough research or study.
Just like the term’s use in reference to the stock market, this refers to a period of time when crypto market prices are falling.
Bitcoin was the world’s first widely-adopted cryptocurrency, sometimes abbreviated as BTC. The cryptocurrency Bitcoin runs on a blockchain of the same name, which records all Bitcoin transactions.
A batch of transactions written on the blockchain. Every block contains information referring to the previous block. This, a series of blocks form a chain.
A blockchain is an open-source software creating a digital ledger. These ledgers record transactions, storing and transferring this information in a way that is publicly accessible.
Just like the term’s use in reference to the stock market, this refers to a period where crypto market prices are rising.
Referring to the term bull market, to say you’re bullish on something means you’re optimistic that it will rise in price.
The process through which the devices connected to a blockchain network come to an agreement about a particular transaction of the state of the network. Examples include proof-of-work and proof-of-stake.
Cryptocurrency is a digital asset. It is a digital form of currency, much like a dollar or a Euro. This currency is borderless and secure, maintained by blockchain as opposed to a bank or government body.
In a decentralized blockchain decisions are made across many nodes, ensuring that no single node has complete system information. Bitcoin and Ethereum are both decentralized networks.
A decentralized application, or DApp, runs on a blockchain or peer-to-peer network of computers rather than a single computer. DApps, often built on Ethereum, can be used for many purposes, including gaming, finance, and social media.
A distributed system means that all parts of the system are in different physical locations with processing spread across multiple nodes. Not all distributed systems are decentralized, although some are.
The level of computing power needed to verify transactions on a proof-of-work blockchain.
Increasing the difficulty of a proof-of-work blockchain to encourage the move to another consensus mechanism.
Short for “Do Your Own Research,” this phrase is used to remind people to do their own investigation on something before investing in it.
The Ethereum network’s native cryptocurrency.
An open-source, distributed public blockchain that allows users to deploy smart contracts to the blockchain.
ERC is short for Ethereum Request for Comments and is the standard outline upon which Ethereum smart contracts are built.
If something is fungible it is interchangeable or exchangeable with something else like it. For example, 1 ETH is considered fungible because it can be exchanged for another 1 ETH as they are exactly the same. Likewise, a dollar bill would be fungible because you can exchange it for another dollar.
Transaction fees, also called gas fees, are fees that users pay blockchain miners to have their transactions included in a block.
GM and GN
Short for “Good Morning” and “Good Night.” GM and GN are common greetings and sign-offs in online crypto communities.
Short for “Gonna Make It,” this expression is used to show support for an individual or project. See also, WAGMI.
Also called a cold wallet, this is a hardware device that can securely store cryptocurrency. The user's private keys are stored in a protected area and cannot be extracted as plain text.
HODL, or hodling, means one has bought and is holding an asset. Initially inspired by a typo of the word “hold” in a Bitcoin forum, it is now seen as a shortened form of “hold on for dear life.”
A network of three-dimensional worlds and simulations that people can inhabit as avatars. Can be experienced by an unlimited number of users, providing a virtual space to connect with people who aren’t in the same physical space as you. Decentraland and The Sandbox are popular Metaverse platforms.
In a proof-of-work system, miners verify transactions and add them to a blockchain as part of a block.
Minting is the process of validating information and registering it on the blockchain. This could be an NFT, domain ownership, or other information.
A node is a computer connected to a cryptocurrency network that creates, receives, and sends information.
Non-Fungible means that something is unique and cannot be directly replaced with an identical asset. For example, diamonds are non-fungible because they have flaws and features that make them unique.
NFT is short for Non-Fungible Token. Each NFT is unique and unlike any other NFT, making it a non-fungible asset. NFTs live on a blockchain network, which keeps a record of the token to prove its individuality. Most NFTs live on the Ethereum network.
PFP is short for “Profile Picture,” and is used in many online crypto-communities. PFP usually refers to an NFT used as a profile picture.
PoS is short for Proof-of-Stake. Proof-of-Stake is a consensus mechanism that requires validator nodes to stake a set amount of cryptocurrency to mint blocks.
PoW is short for Proof-of-Work. PoW is a consensus mechanism requiring miners to complete complex puzzles in order to mint blocks.
A smart contract is a self-executing code on the blockchain that allows transactions to be made securely without the need for an intermediary.
A transaction is data verified by a node to be minted to a block, becoming part of the blockchain.
WAGMI stands for “We’re All Gonna Make It,” a common saying encouraging the crypto community. See also GMI.
A wallet is software or hardware used to store a user’s keys proving ownership of blockchain assets.
Your wallet address, also called a public key, gives the address for your blockchain wallet, allowing other users to send you assets.
Web1 refers to the first stage of the world wide web. Web1 lasted from 1991 to 2004 and is sometimes called the “read-only web” due to the nature of websites at the time as static content.
Web2 stretches from 2004 to now and can be thought of as the “read-write web” when features like social media and blogging allowed for user-generated content.
Web3 is the next phase in the internet revolution, aiming to create a more decentralized internet eliminating the need for big tech companies as middlemen.