If you’ve just stepped into the Web3 space, you may get overwhelmed just by the extent of tech jargon that is used in typical web3 forums, meetups, discussions, or everywhere around this space.

While we never encourage using jargon just to look smart, we understand how Founders, Marketers, or Content Creators can face challenges if they’re not aware of them.

So here’s the extensive Web3 glossary for you to take a quick look at when you need to refer to certain terminology.

Do bookmark this page! (we'll be keeping it updated)

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A

Airdrop

Airdrop is a marketing technique used by crypto platforms to increase their adoption in the market. In this, the users directly receive native tokens from that particular crypto platform in their wallets.

Alpha

Alpha is the information about the actual ROI (Return on Investment) of your digital assets over their market value. It is like insider information of the value of your web3 assets like Cryptocurrency, NFTs, etc.

AltCoin

Previously, any new coin that arrived in the crypto world besides Bitcoin was referred to as AltCoin. But today, only the coins with a smaller market cap or user base are labeled as AltCoins.

Alts

Alts is the short form of AltCoins.

Augmented Reality (AR)

AR is a technology where a user puts on the glasses, or a visor or uses a screen to view computer-generated imagery superimposed on the real-world view. The composited imagery can be regarding real-time data, status, or information of the objects in that particular periphery.

Artificial Intelligence (AI)

When Natural Language Processing (NLP), Machine Learning (ML) & Natural Language Understanding (NLU) is used to build a task-performing computer system, without the need for active human intervention, is what we say AI. In short, AI automates tasks based on the ‘If This - Then That’ philosophy.

Ape

Ape in web3 is a person who puts a lot of money in cryptocurrencies or NFTs without any research of that particular asset. This act of heavy investment when happens as a result of hype or panic buying is also referred to as Ape.

Avatar

A digital icon or a character that represents a real-life person is called an Avatar. It can be used in video games, online forums, chatrooms, virtual reality, etc.

All-Time High (ATH)

The all-time highest price of a particular web3 asset.

All Time Low (ATL)

The all-time lowest price of a particular web3 asset.

Application Binary Interface (ABI)

ABI is the interface between two binary program modules at the level of machine code where one of the modules is an operating system facility while the other is the user ran program. It’s a term used in computer software & programming.

Application Programming Interface (API)

API connects 2 different software or programs and allows them to interact with each other. Once the API Key is connected, sharing or pushing the data from one application to another becomes possible.

Archival Nodes

Archival Nodes are the full nodes in the blockchain. They keep the complete history of transactions that happened since the first block of the particular blockchain.

Alchemy Web3

Alchemy Web3 is the drop-in replacement for web3.js. It is built to work flawlessly with Alchemy and provide multiple advantages.

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B

Bear Market

Similar to the stock exchange, the bear market in the crypto world occurs when the financial market is declining.

Bull Market

Similar to the stock exchange, the bull market in the crypto world occurs when the market is rising.

Bearish

Bearish is when the value of cryptocurrency decreases over time.

Bullish

Bearish is when the value of cryptocurrency increases over time.

Bitcoin

Bitcoin is the first decentralized digital or a cryptocurrency built on a peer-to-peer network using blockchain technology in 2009. It was created by a pseudonymous Satoshi Nakamoto.

Block

Block is a single unit from the entire blockchain containing data or information about a particular transaction. It is linked to the previous & the further block, thus forming a chain.

Blockchain

Blockchain is the technology where transactional data is stored in the form of chunks (blocks) across the nodes of a computer network. As each block is linked to the previous and the next one, it forms a chain - thus, a blockchain. It stores the information in the form of a distributed database. Data stored in a blockchain is irreversible, irreplaceable, and non-modifiable.

Blockchain Domains

Domain names minted on the blockchain are called blockchain domains.

Block Explorer

Block explorer is a tool that helps users to browse information regarding blockchain. The information can be of transactions, market cap, wallet addresses, etc.

Bridge

How to make 2 separate blockchains interact with each other? It’s with the bridge! This allows the transfer of data or tokens between two completely different systems.

Buidl

Buidl is an intentional misspelling of ‘build’ done amongst web3 communities to use in reference with HODL.

Burn

Burn is when someone removes the crypto tokens from the circulating supply and moves them to the inaccessible wallet address.

Base Fee

The base fee is the fee that users must pay on the Ethereum network to get their transactions done. The amount of fee is algorithmically determined based on how much the new block is filled, ie. whether is filled more than 50% (fee is increased) or less than 50% (fee is decreased).

Block Gas Estimator Feed

Block Gas Estimator Feed calculates the gas prices one may need to pay for the next block. The calculation or the estimate is based upon the in-flight transactions that are in the mempool (pre-chain stage).

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C

Centralized

A system structure where the authority, power of control & decision making is given to a small group of people.

Centralized Exchange (CEX)

A cryptocurrency exchange platform that is owned and managed by a centralized organization, business, or company.

Centralized Finance (CeFi)

Centralized business functioning in crypto.

Coin

A coin is a native currency built on the blockchain for a particular platform. It is specifically built to store value and transact in that ecosystem.

Collateral

Collateral is an asset accepted as a security against a loan. In the physical world, it can be a real estate property. In the web3 world, it can be an NFT.

Consensus

Consensus is an agreement between nodes on a blockchain. It is necessary for verifying new transactions and adding new blocks to a blockchain.

Consensus Mechanism

The process of consensus for a transaction ie. an agreement between nodes to carry the transaction on the blockchain is called the consensus mechanism.

Computational Infeasibility

Computational infeasibility is a process that may take impractically a long time (eg. a million years) for anyone who is interested in it to get executed.

Cryptocurrency

Cryptocurrency is a decentralized digital currency whose transactions are verified and recorded on a network of nodes (computers) using cryptography. Unlike fiat currency, it doesn't need a bank or a trusted centralized authority to function.

Cryptography

The practice of encoding and decoding the information/data in the form of computerized codes is called cryptography.

Cold Wallet

Piece of hardware or any offline device that is used to store the cryptocurrencies and private keys. It is not connected to the internet so is safer than a regular wallet.

Confirmed Transaction

When a transaction is done, recorded and the information is stored in the block, thus getting permanently added to the blockchain is when it is called a confirmed transaction.

Canceled Transaction

When the user re-submits the transaction identical to the previous one but with a higher gas limit, it is mined before the previous transaction. When this replacement transaction is confirmed, the previous one gets canceled. It is then called the canceled transaction.

Chainlink

Chainlink is a cryptocurrency that incentivizes the global network of computers to provide authentic data to the smart contracts running on the blockchain.

Creator Economy

It is the software-facilitated economy made up of the content creators, curators, and community builders where the content producers are able to monetize their creations.

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D

Decentralized

A system structure where the authority, power of control & decision-making is not given to a central figure or people. It is distributed across a peer-to-peer network.

DAO (Decentralized Autonomous Organization)

DAOs are organizations that focus on a very specific project or a mission and are governed by their users. They are based on open-source code and function as per the guidelines written on the blockchain.

dApp

dApp is a short form of Decentralized App. It is similar to the regular application but is built with a decentralized blockchain network using smart contracts and web3.js libraries.

Degen

Degen stands for - degenerated gambler. It is used to refer to an individual who takes risky bets in the crypto space. It is somewhat similar to ‘Ape’ but can be called to almost anyone who transacts in crypto or DeFi. It is not a negative term though. 

Digital Twin

An identical digital version of a real-life object.

Digital Identity

The online identity of a person or an organization that is used by computer applications as a representative agent.

Data

In terms of the web world, data is the personal information of the user that consists of his/her name, contact information, demography, browsing history, location track records, etc.

Due Diligence (DD)

Due Diligence is the process of conducting research about crypto, stocks, or any value-based assets before investing in them.

DeFi - Decentralized Finance

Decentralized Finance is finance that enables transactions through the peer-to-peer network without needing to have an intermediary like a bank in between to authorize the transactions. It uses smart contracts on the public blockchain.

Decentralized Exchange (DEX)

DEX or Decentralized Exchange is a crypto exchange platform that works on the basis of peer-to-peer network transactions and is devoid of any intermediary.

Double Spend

Double spend in Web3 happens when someone alters a blockchain network to insert a falsified block that allows them to reacquire the spent crypto coins. It is nothing but an intentionally done fork.

Dropped Transaction

Dropped transactions are the transactions that were added to the transaction queue in the mempool, but were not mined or confirmed on the blockchain. The common cause for a dropped transaction is having insufficient gas.

Diamond Hands

A person is said to have diamond hands when he/she holds a cryptocurrency or any crypto investment with a bullish mindset, irrespective of their market volatility. If the instrument value drops to 40% in a day, the person holding it who has no intention to sell it is said to have diamond hands.

Difficulty

Certain time & computing power is required to verify the transactions and do the mining for the blockchain. This time & power is defined on the basis of the level also called difficulty.

Difficulty Bomb

A difficulty bomb is the process of a sudden increase in the difficulty of a proof-of-work blockchain, in order to encourage the transition to proof-of-stake. This applies in the case of Ethereum.

DYOR

DYOR is an abbreviation for Do Your Own Research. It is used to remind the investors in the Web3 world to conduct their own research about the instruments and market before investing in them.

Distributed Ledger

When digital data is replicated, shared, and synchronized, its database or a ledger is maintained in a decentralized form. This allows the ledger to be spread across multiple sites, institutions, or even countries without the need for a central administrator. This ledger is called the distributed ledger.

Distributed Ledger Technology (DLT)

DLT is a technology that enables access, validation, and record updating tasks in blockchain in an unchangeable manner across diverse networks.

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E

Ethereum

Ethereum is the blockchain platform that is open souced & decentralized. It allows the users to write & deploy self-executing smart contracts that live on the blockchain and enable dApps to run by themself.

Ethereum 2.0

When Ethereum was migrated from the Proof-of-Work consensus mechanism to the Proof-of-Stake consensus mechanism, the new consensus layer was then termed Ethereum 2.0.

Ether (ETH)

Ether or ETH is the native cryptocurrency of the Ethereum network. It is bought, sold or exchanged through various cryptocurrency exchanges.

Ethereum Improvement Proposal (EIP)

A standardized format that is used in the Ethereum Community to present a new process or a feature is referred to as EIP.

Ethereum Request for Comment (ERC)

Smart contract developers need technical documents to define the protocol required to implement tokens in the Ethereum ecosystem. These technical documents are called Ethereum Requests for Comment or ERC.

ERC-20

ERC-20 is the token standard that provides the smart contract structure for the fungible tokens.

ERC-721

Unlike ERC-20, ERC-721 provides the standardized smart contract structure for creating unique tokens or non-fungible tokens (NFTs). The ERC-721 tokens have specifically identifiable property per token that makes them non-fungible.

ERC-1155

The ERC-115 standard allows a single smart contract to manage fungible, non-fungible, and semi-fungible tokens simultaneously.

EIP-1559

EIP-1559 was one of the five Ethereum Improvement Proposals that stressed on increasing the mining speed of Ether and incentivizing the miners in return.

EOA Transaction

When a transaction happens between one or more externally owned accounts that are controlled by private keys, it is called the EOA transaction. EOA stands for Externally Owned Account.

Ethereum Virtual Machine (EVM)

Blockchain developers use the EVM software application to deploy dApps on the Ethereum blockchain. The EVM then interacts with Ethereum’s accounts, smart contracts & distributed ledger.

Extended Reality (XR)

An immersive technology that creates an experience combining the virtual world with the real world using Augmented Reality (AR). It can also be sometimes referred to as Mixed Reality (MR).

Encryption

In the context of Web3, encryption is the process of encoding the data where original information known as ‘plaintext’ is altered in a form of ‘ciphertext’. Only a user who has the key or an authority to access the data can convert the ciphertext back to plaintext to read the original data.

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F

Few

Few is a short version for ‘Few Understand’. It’s a term that expresses a cry of crypto early adopters who think they are too early now but they’ll make huge money when the crypto scene takes off in the future.

Fiat

A currency that is regulated by the government. It’s the only one that is established as a legal tender in a particular country. Rupees, Dollars, Pounds, etc. are all fiat currencies.

Flippening

The possibility of Ethereum surpassing the value - based on the market cap of Bitcoin, will be called ‘flippening’ amongst crypto folks. It’s just a possibility as of now.

FOMO - Fear of Missing Out

In the context of the crypto world, FOMO happens to those enthusiasts who haven’t invested anything in a particular asset yet, but the rise in the value of that asset makes them anxious and regret the decision of not investing earlier. This makes them step into the game, though late.

Failed Transaction

A failed transaction is an unsuccessful transaction on the Ethereum blockchain that cannot be reversed, canceled, or refunded.

Full Nodes

A full node is a hardware ie. a computer device or a server that downloads an entire blockchain and validates the blocks. Miners are one of the most common examples of servers running full nodes on Ethereum.

Fork

When a change is done in a blockchain protocol, it’s called a fork. If the changes are minor, it’s called a soft fork, whereas if the changes are done on the fundamental level, it’s called a hard fork. A hard fork often leads to the formation of an entirely new chain with a new set of rules.

Fractionalize

Fractionalization is done in the non-fungible token to allow a community to become an owner of a single asset. For this to happen, NFT is locked into a smart contract and then divided into fungible tokens.

FUD - Fear, Uncertainty & Doubt

A false exaggerated negative news that surrounds a particular asset/investment instrument.

Fungible

Something that is replaceable.

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G

Gas

Gas is a unit that is used to measure the computational power required to perform a certain transaction on the blockchain.

Gas Fee

The gas fee is an amount of crypto that a person needs to pay to get done a transaction or execute a smart contract on Ethereum. The more complex the transaction, the higher the fee.

Gas Limit

Only a certain amount of gas is authorized to get consumed by the miners. This maximum amount is called the gas limit.

Gas Price

The amount of Ether (ETH) a user is ready to pay per unit of gas for a particular transaction is called a gas price. The gas price is denominated in Gwei.

GameFi

GameFi is the term formed by combining Gaming & Decentralized Finance (DeFI). Games that are P-2-E ie. are played to earn, are classified as GameFi.

Genesis Block

The first block in a blockchain network is called a genesis block.

Geth

Geth is an implementation of an Ethereum Protocol written in Go. Geth stands for Go Ethereum.

Gorli

It is a community-based proof-of-authority (PoA) Ethereum testnet. It allows Web3 developers to test smart contracts in a sandbox.

Gwei

Gwei is the smallest fraction or the denomination of Ether (ETH).

GMI

To support and motivate a certain person or a project, the crypto folks use the term GMI meaning ‘Gonna Make It’.

GM

Just as we say gm as ‘good morning’ on our regular chat, the crypto circle too popularly says it in the community.

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H

Hard Fork

A major change done in the protocol in a blockchain at the fundamental level is called a hard fork. If this happens, an entirely new chain needs to be formed. 

Hashing

Hashing is done to allow the data to be verified and stored in a secured manner. It is the process in which information is taken irrespective of its size which is then turned into a fix-sized corresponding fingerprint.

Hash Function

Hash Function is a cryptographic algorithm. It helps in mapping an input of random size to a unique output of fixed length bits.

Hash Rate

Hash rate is the time taken by a computer to guess the solution of crypto puzzles. It is also known as the Hash Power.

Have Fun Staying Poor (HFSP)

The Crypto community uses the term HFSP for those who have neither invested in cryptocurrency nor do they believe in its power.

HODL

Once a user GameKyuuby posted on a forum called BitcoiTalk that he was ‘hodling’ his bitcoin even though the market fell. He wanted to say holding but did a typo as ‘hodling’. This misspelling later became popular amongst web3 folks and is used as it is to date. Some even made HODL an acronym for ‘Hold On for Dear Life.’

Holding the Bag

When an asset you hold in the crypto world drops in its value, but you still keep it holding - is called holding the bag. This is an unfortunate position to be in.

HD Wallet

HD in HD Wallet stands for Hierarchical Deterministic. This kind of wallet uses hierarchical deterministic key creation & transfer protocol (BIP-32).

HD Wallet Seed

HD Wallet Seed is a value in form of words that is used to generate a master private key and the master chain code.

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I

ICO - Initial Coin Offering

As traditional companies go IPO for raising funds from the public in exchange for shares, ICO is a type of offering done by crypto-based project owners that offer tokens to the public in order to raise funds. It’s a type of crowdfunding.

IEO - Initial Exchange Offering

IEO is somewhat similar to ICO. But in IEO, crypto-based project owner doesn’t directly sell new tokens to the public. Instead, an existing currency exchange manages its coin distribution and regulates it to an extent.

Internal Transaction

When a transaction happens between one smart contract and another smart contract, it is known as an internal transaction.

IRL

IRL stands for - In Real Life. Whenever a program, meetup, event, or merely the discussed topic is to happen physically, it’s referred to as IRL amongst the Web3 community.

IVL

IVL stands for - In Virtual Life. Whenever a program, meetup, event, or discussion is to happen online, it’s referred to as IVL amongst the Web3 community.

Immersive Social

Immersive social uses technology like virtual reality to create a computer-generated environment where users can interact with each other, thus stimulating a real-world social scenario.

Inter Planetary File System (IPFS)

IPFS is a peer-to-peer network that is used to share and store data through a distributed file system.

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K

Key

Key is an alphanumeric code that is used to gain access to digital assets. In the web3 world, one has 2 keys, ie. the public key which is an address to the wallet, and the private key, which allows the user to access the assets he/she owns.

Kovan

Kovan is an Ethereum testnet. It is a form of proof-of-authority and publicly available testnet.

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L

L1 - Layer One

The main blockchain in the multi-layer blockchain network is called L1 or Layer One. Eg. Ethereum, and Bitcoin are both Layer One blockchains.

L2 - Layer Two

Layer Two or L2 is a framework or a protocol that sits on top of the Layer One blockchain in a multi-layer blockchain network. It is also known as the ‘secondary layer’ of that particular blockchain.

Light Nodes

A light node is a computer that can be used as a gateway to the blockchain. It is connected to the full nodes. This computer neither validates a block nor maintains the entire blockchain.

Liquidity

The ability of an asset to get sold or converted into another asset is measured in terms of liquidity. The quicker or easier it is to sell, the more is its liquidity.

Liquidity Pool

In the web3 world, users must provide liquidity on the exchanges as no central authority exists to do so. Thus, when user-provided funds are locked into a smart contract to make them ready to be traded on the decentralized platforms, it’s called a liquidity pool.

Lambo

Lambo is a short form of Lamborghini. The term is used as a remark in a fun way about reaching a position where one has enough money to purchase a Lamborghini car. It’s seen as a milestone of success. In the web3 world, when a certain asset value is expected to grow at heights, th4 investor starts dreaming of owning a ‘Lambo’.

Light Client

The light client allows selectively downloading small parts of the blockchain without the need to spend huge bandwidth & storage on validating the entire blockchain. This is done to maintain the same level of security for the devices with lower power or smaller storage.

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M

Mainnet

The Layer One blockchain in a network is referred to as the mainnet. Mainnet stands for - Main Network.

Market Cap

In cryptocurrency, the market cap or market capital is the value of a single coin multiplied by its total supply. This shows the total value of that particular asset in the market.

Master Node

A master node is a node that verifies transactions and stores the complete history of a blockchain. It may also participate in the governance and special operations in the blockchain network.

Meta

Meta is a renamed company that was popularly known as Facebook earlier. It is owned and led by Mark Zuckerberg whose intention in naming Facebook to Meta was to build it to utilize the full potential of Metaverse.

Metaverse

An online virtual space (still in the making) that is completely built using computer-generated imagery and serves as a 3D virtual social network is called a Metaverse. People can interact with each other in this virtual world using avatars ie. digital versions of themselves.

MetaMask

MetaMask is a software type of cryptocurrency wallet that is available in the form of a browser extension or a mobile app. You can store your private keys, do a secure login, can be used to exchange tokens, and perform various other functions using MetaMask. It mainly interacts with the Ethereum blockchain.

Mining

Mining is an activity in the crypto world where miners verify and validate the transactions, organize the data into the blocks and add those blocks to the blockchain.

Minting

Minting is an activity where a user validates the ownership of a digital asset and registers it to the blockchain.

Max Fee Per Gas

Max Fee Per Gas is the maximum amount of fee (in the denomination of gwei) a user is willing to pay for getting his/her transaction added to the blockchain.

Max Priority Fee

Max Priority Fee is an incentivized fee directly paid to the miners for adding your transaction to the block. It is an additional fee that is completely optional.

Mempool

Mempool is where all the pending transactions in an Ethereum blockchain network are stored before they get mined. It is also known as a transaction pool, transaction queue, or pre-chain. It is a data structure that is spread all across the Ethereum nodes.

MEV

MEV is the Miner/Maximal Extractable Value. It shows how much profit a miner can make by working on a particular transaction in a block.

Moon / To The Moon!

It’s an exclamatory term that is used to describe how high the value of a particular asset may go. The value will go so high that it will reach the moon! (not in a literal sense though)

Moonboy

Some experts or influencers are too positive about a certain digital asset and think that it will ‘go to the moon’, meaning its value will rise to the highest. Such experts or influencers are called Moonboys.

Mixed Reality (MR)

Mixed reality is an immersive technology where elements/environment of the real physical world is combined with the computer-generated virtual world. Augmented Reality (AR) is also a type of Mixed Reality as the computer-generated imagery is superimposed on the real-world view via screen or a visor.

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N

Non-Fungible Token (NFT)

NFTs or Non-Fungible Tokens are irreplaceable, non-transferable, and non-modifiable tokens that act as a digital certificate used for proving ownership of a particular asset, mostly in a digital world. Blockchain technology is used to assign the ownership of a particular NFT to a user.

How To Buy & Sell NFTs?

NFT Domains

Domain names that are minted on the public blockchain network are known as NFT domains. These domains give the users complete ownership of their stored data. One can also set their web3 username using this domain.

Nonce

Nonce in cryptography is a short form for - Number Used Once. It is a random number that is generated for very specific use in cryptographic communication. It is mainly used in Ethereum transactions.

Notify

Notify is nothing but a javascript library. Blockchain developers can use it to deliver real-time notifications for Ethereum and Polygon-based transactions.

NGMI

NGMI stands for ‘Not Gonna Make It’. It is used as an expressive term to say that a particular asset is not going to grow or increase in its value.

NoCoiner

A person who neither has any idea of what cryptocurrencies are nor does he/she invest in it is called a NoCoiner.

Node

A device that is connected to a blockchain network and performs various functions like validating a transaction, storing historical data of a blockchain, etc. is a node. The hardware-based infrastructure created by various nodes spread across the globe is what makes peer-to-peer networks in blockchain possible.

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O

Off-Chain

A data or a transaction that is not present in the blockchain ie. present outside is known as off-chain.

On-Chain

A data or a transaction that is present on the blockchain and is visible to all the nodes in historical transactions is called on-chain.

On-Board

In order to onboard new users to dApps, web3 developers use an open-sourced javascript library known as on-board that allows them to streamline the wallet development process.

Oracle

Oracle supplies data to the smart contracts from the outside world, as the data present off-chain is not available to them otherwise.

Open Platform

A platform on which any developer can build an app taking benefit of its open standards.

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P

P2P - Peer to Peer

A network of computers that interact with each other without needing a central entity or a moderator.

Paper Hands

A person is said to have paper hands when he/she sells a crypto asset when the markets were falling. Such a person is seen as a weak-minded investor who bore a loss.

PFP

PFP is a short form of Profile Picture. In web3 it is used to refer to the profile picture of NFT.

Private Key

A private key is a type of password that is used to authorize digital transactions. It is also used in order to withdraw the digital assets from the wallet. One doesn’t share it with anyone, thus - the ‘private’ key.

Public Key

A public key is like your bank account number. It is an alphanumeric key that serves as an address for your wallet. As one needs to share it with the public unlike a private key, it is called a ‘public’ key.

Potentially Promising

Potentially promising was a term first said by Elon Musk. He used it to refer to the planned upgrades of Dogecoin. The term is sometimes used sarcastically, and other times seriously.

Proof of Stake (PoS)

Proof of Stake is a consensus mechanism built to verify transactions and mint blocks in the blockchain network. It required nodes (also known as validators) to stake a certain amount of cryptocurrency for validating the transaction. In case, the validator validates a fraud transaction, a part of their stake is slashed.

Proof of Work (PoW)

PoW too is a consensus mechanism that consists of a complex mathematical puzzle that a miner needs to solve to go ahead and mint blocks and complete transactions. Once a miner solves a puzzle, he is rewarded and gets access to a new block to be minted.

Protocol

A protocol is a form of software that serves as the main layer in a blockchain network. It sets the foundation for that particular blockchain. But now it has become common for both the Layer 1 blockchain and Layer 2 app built on the network to be referred to as a protocol. This is because they both sets rules of what happens in that blockchain.

Pending Pool

Transactions that are ready to get processed in a mempool are called pending pool transactions.

Pending Transaction

Pending transactions are the transactions in the mempool, that are in a pre-consensus state but are not yet confirmed and added to the blockchain.

Pre-Chain

Pre-chain is another term for transactions in the mempool that are in progress but not yet confirmed.

Pre-Consensus

Pre-consensus is another name for pre-chain or pending transactions. They are the transactions in progress in the mempool that are not yet confirmed or added to the blockchain.

Pending Simulation Transaction

It is like a tool to access the real-time information of pending transactions in a mempool.

Permissionless

It is a characteristic of the decentralized open blockchain networks which are available for everyone to participate in the data validation process but do not require a central entity like a bank or regulatory body to authorize it.

Public Key Cryptography

It is a technique used in cryptography where a sender’s public key is used to encrypt a message and the receiver’s private key is used to decrypt the same.

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Q

Queued Pool

Mempool consists of the pool of transactions that are not ready to get processed yet. This pool of out-of-order transactions is called queued pool.

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R

Rekt

It's a slang term used in a chat to express how wrecked or messed up one has become by suffering a huge loss in crypto.

Rug Pull

Rug pull happens in web3 when a scammer promotes the tokens for their web3 project, increases the value of the project, and then sells everything all at once dropping its value to zero. In other cases, if someone owns a large portion of a circulating supply, it makes the asset highly centralized. Now if they sell their portion all at once, a heavy drop in the value of the asset occurs. This too is called a rug pull in web3.

Rollup

Rollup is a method of scaling up in web3 where fees on transactions are reduced by clubbing multiple transactions off-chain and then submitting them as a single transaction on the main chain.

Replacement Transaction

A new transaction done to speed up or cancel a previous transaction is called a replacement transaction.

Rinkeby

Rinkeby is a Proof-of-Authority Ethereum testnet. It helps smart contract builders to test the code before deploying it to the Ethereum mainnet.

Ropsten

Ropsten is another Ethereum testnet that helps blockchain developers test their smart contract code without paying a fee or spending any money.

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S

Smart Contract

Smart Contract is a code written by developers that are used to build a decentralized application on a blockchain network. This code is nothing but a set of instructions that enables a dApp to function on its own in a permissionless manner. It allows the users to transact in a secured way.

Smart Asset

A virtual token represents ownership of a physical or a digital asset. It can be traded as defined by its smart contract.

Satoshis / Sats

Satoshi is the smallest denomination of Bitcoin. 1 Satoshi equals 0.00000001 of a BTC. Sats is a short form for Satoshis. It is named after an unknown person Satoshi Nakamoto that is said to be the initiator of Bitcoin.

Scalability

The capacity of a protocol to increase transactions and fulfill rising demand as the network grows is called scalability in the blockchain ecosystem. 

Seed Phrase

A single wallet in crypto can have multiple accounts. Each account can have multiple private keys. Setting different passwords to all of them may be confusing to the users. So a single phrase or word is used as a common term in all the passwords and then combined with individual variations. This common phrase in a password is called a Seed Phrase.

Ser

Ser is a misspelling of ‘Sir’. It’s another intentional misspelling used amongst web3 folks.

Serialization

In the Ethereum network, a process is done to convert a data structure into sequential bytes. This process is called serialization.

SHA-256

It is a set of hashing functions in cryptography designed by the National Security Agency (NSA). SHA stands for Secure Hashing Algorithm. SHA-256 generates a sequence of letters and numbers out of the data. This sequence is called a hash. This hash represents data that is used as its secure placeholder.

Sharding

In order to achieve scalability in the crypto, nodes of blockchain networks are separated into groups. This method is known as sharding while the groups of nodes are called shards. Sharding takes away the necessity of every single node to process each and every transaction. They are able to reach a consensus on behalf of the entire network.

Shilling

A person is said to be shilling when he/she heavily promotes a particular asset with the hope of encouraging its adoption and increasing its value. It's a negative act where a person promotes the asset by spamming on social media or in groups and forums.

Sidechain

A sidechain is a parallel blockchain that is connected to the main chain via two way link. It is built to allow seamless data transmission between the two, either to add functionality to the blockchain or empower it to scale.

Slashing

When a validator approves a fraud transaction that may endanger the blockchain, he/she is punished by burning or redistributing his/her staked coins. This act is known as slashing.

Slippage

The price of cryptocurrency is volatile and changes every second. Thus, when a person places an order, there may be a difference between the price at which the order was placed and the price at which the order was executed. The difference between these prices is what is called slippage.

Shitcoin

A crypto coin that is baseless and has no value, potential, or use-cases is funnily called shitcoin.

SDK

SDK is a Software Development Kit that is a collection of software tools that developers can use to deploy decentralized applications in a developmental environment. It is also called a devkit.

Searcher

People who are constantly on the lookout to find opportunities for extracting value for miners are called searchers.

Speed Up Transactions

When a new transaction is done as a replacement to overwrite the current pending transaction, sometimes done by traders to exploit the arbitrage opportunities, it is called a speed-up transaction.

Stuck Transactions

Transactions that cannot be mined due to issues like nonce gaps in Ethereum are called stuck transactions.

Soft Fork

When minor changes are done to a blockchain protocol, it is called a soft fork. It does not require the creation of an entirely new chain like in the case of a hard fork.

Solidity

Solidity is a programming language that is used to write the smart contracts for the Ethereum network.

Stablecoin

Crypto tokens whose values are backed either by fiat currency like INR, USD, etc., or by physical assets like precious metals.

Solana

Solana is a public blockchain platform on which decentralized applications can be built due to its smart contract functionality. It is said to have faster transaction times and lower fees than networks like Ethereum. While Ethereum can handle 15 to 20 transactions per second, Solana can handle as many as 50,000 transactions per second.

State

A situation of a blockchain system at a particular moment in time is known as ‘state’ in the web3 world. The state includes multiple aspects of a blockchain such as order per transaction, amount per transaction, and account balances.

Stale

When a new block is created in presence of the block with a similar parent, the new block is of no use. This is called a stale & such block generally gets discarded.

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T

Testnet

A short form for Test Network. It creates an environment of a mainnet and is used to test smart contracts or network upgrades before deploying them to the mainnet.

Top-Level Domain (TLD)

Similar to web2 domains (dot com, dot in, etc.), TLD in web3 is the extension used after (dot) of the domain name. Eg. .nft, .crypto, .x, etc.

Token

A token in the blockchain is like a virtual certificate that represents ownership of a physical or a digital asset. Tokens can also be used to interact within a decentralized application.

Tip

A tip is a fee that one can pay to a miner as an incentive to get their transaction included in the blockchain. It is completely optional.

Tokenomics

The word tokenomics is formed by clubbing the words Token and Economics. It’s the study of the elements that makes a particular cryptocurrency a valuable asset for its investors. The study covers all the aspects of a particular cryptocurrency like its supply, vesting, and utility.

Read more about Tokenomics.

Total Value Locked (TVL)

It's the amount of total value that assets locked in the smart contract hold. The value is generally measured in USD.

Transaction

An instance of buying, selling or any exchange activity that results in the writing of data on a blockchain is called a transaction. The transaction in web3 is successful only when enough nodes have validated it and the block is added to the blockchain.

Transaction Event Stream

It's the live streaming of all the transaction events happening in the mempool.

Transaction Settlement

A transaction is settled only when the entire block consisting of the transaction data is accepted or hashed by the miner. This act is called the transaction settlement.

Transaction  Status

Transaction status indicates at what stage the transaction currently is. It includes - Confirmed, Failed, Dropped, and Stuck.

Transactions Per Second (TPS)

TPS is a measure of how many transactions a blockchain is able to handle per second. It is then used to identify the computational power to set a benchmark.

Txn Hash

Txn Hash is a short form for Transaction Hash. It is a unique identification alphanumeric code given to a particular transaction. It can also be called a transaction ID. You can use it to find the details of a particular transaction.

Trustless

Trustlessness is an element of blockchain where there is no relying on a third-party entity like a bank or a government authority for verifying trustability. It is a way how cryptographic and smart contract transactions function. Here trustless doesn’t mean being untrustworthy, but something that doesn’t require trust to function.

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U

UX (User Experience)

UX is a design principle where an application, interface, system, or product is crafted and optimized in such a way that the interaction with it is easier, effective, and memorable for the user.

Ultrasound Money

The term Ultrasound Money is used as refute where the belief of Bitcoin being a ‘sound money’ or a hard currency is proved wrong. In this case, they believe that Ethereum will be more ‘sound money’ after the merge of post-EIP 1559 and post-ETH2.

Up Only

It’s more of a sarcastic saying where one refers to the value of cryptocurrency or any digital asset as ever-increasing. This is usually said by investors who are taking a bullish stance on a particular asset.

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V

Vaporware

In some cases, a product is announced & even marketed, but the product itself doesn’t exist and never gets made. Such a product or a project is known as vaporware.

Virtual Currency

A currency that is present only in the electronic or digital form and has no physical representation is called virtual currency. Cryptocurrencies are virtual currencies that can be traded from cryptocurrency exchanges & have no physical world existence.

Virtual Economy

A virtual economy is an economy that functions on the basis of digital asset transactions where exchanges are made using cryptocurrencies.

Virtual Reality (VR)

VR is a bit different than AR. Here, VR glasses or goggles are used to create an immersive experience in the virtual world. The person does not see any live view but recorded or computer-generated imagery with real-time stimulated vision.

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W

WAGMI

WAGMI stands for “We’re All Gonna Make It!”. It’s the motivational affirmation used amongst the crypto trading communities to create a positive outlook.

Wallet

A wallet is a software app or a hardware device on which the private keys of blockchain assets can be stored. It does not store actual coins or tokens in it, but only the private keys that are proof of ownership of that asset & make it accessible.

Wallet Address

A wallet address is a publicly available code or a public key of your blockchain wallet. It is like a bank account number if compared to the fiat world.

Wei

Wei is the same as Gwei. It is the smallest denomination of the Ether (ETH). It was named after crypto pioneer Wei Dai.

Web 1.0

Web 1.0 or Web1 is generally referred to as the earliest form of the internet where platforms were simply used to publish information and were owned by single entities. Users were merely able to read the information without any scope of interaction.

Web 2.0

Web 2.0 or Web2 is referred to the internet where social media made its emergence. It is an internet where the platforms are owned by a single entity, but users can participate and contribute to the content.

Web 3.0

Web 3.0 or Web3 is the evolved version of the internet based on blockchain technology where the ecosystem is decentralized. No single entity has the authority over the platforms and the system functions as per the agreed set of rules or the protocols. The user in Web3 is the consumer, contributor as well as owner.

What Is Web3 & Why Does It Matter?

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X

xDai Chain

xDai chain is a Proof-of-Stake Ethereum sidechain. It offers quicker and cheaper transactions than Ethereum.

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Y

YOLO

YOLO is an abbreviation for You Only Live Once. It is said when a person invests too much in a single asset making it a risky bet.

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Z

Zero Address

A destination address of a contact creation transaction in Ethereum that is composed entirely of zeroes.

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51% Attack

When an individual or a single organization gains control over half of the mining power or nodes, they try to manipulate things & do malicious activities. This attack in the crypto world is called the 51% Attack.