Entering the Web3 era with confidence with this updated Web3 Glossary. Knowing what each term means can save the day when you need a simple explanation for many of the most commonly-used web3 words.
Now is the right time to adopt a test-and-learn mindset for anything related to the Metaverse. Taste the waters, be open to running some experiments in the metaverse, and move on quickly from the things you don’t know to the new skills you are going to know, as long as you set your mind on that.
Save this Web3 Glossary and use all the must-know terms like a tech insider!
Table of Content: Web3 Glossary
What is Web3?
Web3 is the term for the new stage of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. As a matter of fact, is the next generation of the web and the technologies behind it.
- About Web1 & Web2: Web 2.0 describes the current state of the internet, which has more user-generated content and usability for end-users compared to its earlier stage of Web 1.0. In general, Web 2.0 refers to the 21st-century Internet applications that have transformed the digital era in the aftermath of the dot-com sphere.
- What is Web3 used for? Web3 is used to manage data and also can redistribute ownership inside the internet ecosystem. The whole point of web3 is getting ownership and decision-making away from a small group of people, into the hands of the community.
- Is Web3 a metaverse? No, it is not. Web3 is not a Metaverse. Web3 is the third stage of development of the World Wide Web. The Metaverse refers only to a virtual reality-based parallel internet world where users can interact with each other and digital objects in a 3D space.
Web3 has become a catch-all term for the vision of a new internet. At its core, Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership. A 2020 post on Twitter said it best: Web1 was read-only, Web2 is read-write, and Web3 will be read-write-own.
What is Crypto?
Crypto is the short form of cryptocurrency. It is an encrypted data string that denotes a unit of currency. It is monitored and organized by a peer-to-peer network called a blockchain, which also serves as a secure ledger of transactions, e.g., buying, selling, and transferring.
ArtBlocks, the most well-known platform for art, has three collections: “Curated” (ABC), “Playground” and “Factory.”
A string of characters that represents a crypto wallet available to send and receive cryptocurrency.
In the crypto world, an airdrop is a free distribution of tokens or coins from a company directly into its users’ or members’ digital wallets. An airdrop, in the cryptocurrency business, is a marketing stunt that involves sending coins or tokens to wallet addresses in order to promote awareness of a new virtual currency.
Altcoins, or alts, are cryptocurrencies that are relatively new to the market and have relatively low valuations. A conjoining of the words ‘alternative’ and ‘coin,’ the term ‘altcoin’ initially was used to refer to any cryptocurrency that wasn’t Bitcoin.
- What are the best altcoins in Crypto? Until this day, Ethereum seems to be the most promising altcoin. It has the highest chance of growing its ecosystem and token prices exponentially over the next decade. Other top picks would include Solana, Cardano, Binance Coin, Uniswap, and Aave.
- How many crypto altcoins are there? As of July 2022, there are 20,268 cryptocurrencies, according to the price-tracking website CoinMarketCap. Read more about the top cryptocurrencies in this article.
- APE in: To invest all of your available money in a cryptocurrency. Most of the time is related to going all in on an NFT project.
Alpha is an overloaded term in capital markets that typically refers to the ability of an investment strategy to outperform the market. Also is a term representing an asset manager’s skill vs market performance. As opposed to beta (market performance), it means the outstanding performance produced through the skills of asset managers. Although the term alpha is also used in the general crypto world, it is used more frequently in the world of NFTs. This frequent usage suggests that information asymmetry is a major feature of the NFT market.
- What does dropping alpha mean in crypto? An alpha of 1% means the investment’s return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market.
- What does alpha mean in DeFi? Alpha Finance Lab is an ecosystem of DeFi products that enables interoperability within a cross-chain structure to connect users with platforms such as Ethereum (ETH) and Binance Smart Chain (BSC).
Derived from the Crypto Twitter-sphere, means rushing into a project with full passion and excitement. Apes have a strong NFT history, beginning with the famous 24 rare ape-looking Crypto Punks and then subsequently the Bored Ape Yacht Club.
- Bored Ape Yacht Club, often colloquially called Bored Apes or Bored Ape, is a non-fungible token collection built on the Ethereum blockchain. The collection features profile pictures of cartoon apes that are procedurally generated by an algorithm. The parent company of Bored Ape Yacht Club is Yuga Labs.
Is a term used to describe the activity of buying into an NFT project, perhaps without due diligence. In other words, apeing is when a person buys an NFT or token soon after launch without much research.
Augmented Reality (AR)
A technology that combines elements of virtual reality (VR) with physical reality. AR is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory, and olfactory. In its current form, AR can be facilitated by devices worn over the eyes – such as glasses or goggles – or by a smartphone or computer screen.
Augmented Reality (AR) & Virtual Reality (VR) Differences
VR creates an immersive virtual environment, while AR augments a real-world scene. Virtual Reality and Augmented Reality accomplish two very different things in two very different ways, despite their devices’ similar designs. Main differences:
- VR is 75 percent virtual, while AR is only 25 percent virtual.
- VR requires a headset device, while AR does not.
- VR users move in a completely fictional world, while AR users are in contact with the real world.
What is AR Software? AR software works in conjunction with devices such as tablets, phones, headsets, and more. These integrating devices contain sensors, digital projectors, and the appropriate software that enables these computer-generated objects to be projected into the real world. Once a model has been superimposed in the real world, users can interact with it and manipulate the model.
These solutions have additional uses aside from placing a 3D model in the real world. AR is commonly used for entertainment purposes—specifically gaming. This software can also be used to display contextual information. Users can point the hardware’s camera display at an object to display valuable data. Explore some of the top Augmented Reality Software in this article.
What software is used for virtual reality? Oculus, the well-known provider of VR platforms, like Oculus Rift S, Oculus Quest, and Oculus Go also offers powerful VR development software, named Medium. It’s a comprehensive tool, which allows you to create 3D assets. You can sculpt, model, and paint the VR assets you create: 10 Great Tools for VR Development.
Augmented reality (AR), virtual reality (VR) and mixed reality (MR) are not only empty buzzwords in medicine but also valid solutions in education, vein or surgical visualisation, relaxing patients, curing PTSD, speeding up recovery in physical therapy – or even supporting medical presentations
A digital avatar can be a representation of your identity in the digital world. In addition, an avatar is a digital rendering of any entity in VR, a video game, the internet or another virtual space. Avatars in Web3verse are digital art collectibles.
How to create an avatar? There are plenty of sites where you can create your own avatar using your photos:
- SP- Studio
- Avatar Generator
- Voila AI Artist
An avatar project is essentially a collection of a few thousand NFT avatars’ including Bored Ape Yacht Club, CryptoPunks, Cool Cats, etc. Avatar NFTs took the crypto world by storm in 2021, and the uptrend continues in 2022. Since the launch of CryptoPunks, avatar NFTs have become a status symbol, with some projects even crossing billions of dollars in sales. Following the trend, every crypto enthusiast wants to own valuable generative NFT avatars, while the developers can’t wait to launch their project. So, here is how you can identify legit projects and the 11 best generative avatar projects.
Bitcoin is an innovative payment network and a new kind of money. Find all you need to know and get started with Bitcoin on bitcoin.org. It was also the world’s very first cryptocurrency, postulated by ‘Satoshi Nakamoto’ (which is typically presumed to be a pseudonym) in a now-famous white paper called ‘A Peer-to-Peer Electronic Cash System’ in 2008. At the time of writing, it is the most valuable cryptocurrency in the world.
- How long does it take to mine 1 Bitcoin? The average time for generating one Bitcoin is about 10 minutes, but this applies only to powerful machines. The speed of mining depends on the type of Bitcoin mining hardware you are using.
- How can you get 1 Bitcoin for free? As long as you are familiar with the technology these are some of the methods to earn free bitcoins:
- Pionex – Using Crypto Trading Bots.
- Bitstamp – Using Staking Rewards.
- Tipping Bots And Platforms.
- Playing Online and Offline Games.
- Mining Browsers And Free Mining Software.
- Earning Free Bitcoins Through Bounties.
- Earn From Crypto Airdrops.
- See more ways in this article.
- How to get Bitcoins for free daily? By playing games with bitcoin rewards, and airdrops. You can check Reddit, Telegram, Twitter, and other social channels to catch up with airdrops, or Initial Coin Offering platforms where capital raises for projects are held.
- Is Bitcoin a blockchain or cryptocurrency? Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented. A cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
- Can Bitcoin be converted to cash? You can use a crypto exchange like Coinbase, Binance, Gemini or Kraken to turn Bitcoin into cash. This may be an easy method if you already use a centralized exchange and your crypto exists in a custodial wallet. Choose the coin and amount you’d like to sell, agree to the rates and your cash will be available to you. Cashing out Bitcoin is best done via a third-party broker, over-the-counter trading, or on a third-party trading platform. You can also trade it peer-to-peer. Cashing out a massive amount of Bitcoin comes with limited restrictions on daily withdrawals.
- Is having Bitcoin illegal? Whereas the majority of countries don’t make using Bitcoin itself illegal, its status as a means of payment or as a commodity varies with differing regulatory implications. Some countries have placed limitations on the way Bitcoin can be used, with banks banning their customers from making cryptocurrency transactions. Read more about this issue here: These are the countries where crypto is restricted or illegal.
Blockchain is a decentralized, distributed, and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network. It is basically a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
- Who owns the Blockchain technology? No one computer or organization can own the chain. Instead, it is a distributed ledger via the nodes connected to the chain. Blockchain nodes can be any kind of electronic device that maintains copies of the chain and keeps the network functioning.
- How do Blockchains make money? Blockchain companies make money by signing contract agreements with other companies. They make contracts with other companies to provide blockchain infrastructure by designing and developing blockchain applications. They also host the service for a certain period by signing a contract.
- Top 5 Enterprise Blockchain Platforms: Ethereum, Hyperledger Fabric, R3 Corda, Ripple, and Quorum.
Currently, there are at least 1,000 blockchains with at least four types of blockchain networks. While the idea of blockchain is a singular data transfer type, there are multiple platforms provided in this industry.
- Why is it called the blockchain? In the 2008 Bitcoin paper block and chain are used separately; the concept is referred to as “chain of hash-based proof-of-work” or “chain of digital signatures”. Each new piece of information is also assigned a timestamp, which makes it easy for users to find out exactly when it was linked to the database. The transparency and immutability of the blockchain make it a very reliable and trustworthy business resource both for individuals and companies.
- Block is the constituent element of a blockchain and an individual unit in which data is stored.
The term stands for the words Buy the f***ing dip. When people are running around and selling because of a crypto price drop.
The BUIDL modification comes from “IVAN ON TECH” Utube cryptocurrency tech guru, and it basically means “Build Useful Stuff” and refers to Blockchain technology and cryptocurrency space.
Burning NFTs, which are tokens stored on a blockchain, is the process of permanently removing a token from circulation. This can be done to eliminate unsold or problematic inventory from an NFT drop, or it can be used to engage collectors and fans through “upgrades” that replace an original NFT with something else.
- How is crypto burned? Burning is done by transferring the desired amount of burner tokens into an inactive, unlocatable crypto wallet, causing the tokens to be purposefully lost. Unable to be accessed, these tokens have essentially been destroyed, hence the term burned.
- Do you lose money when burning crypto? The reason for this is pretty simple: burning coins decreases the circulating supply. A lower supply means an increased scarcity, resulting in higher demand and an increase in value. For this to affect the price, a large amount of a crypto needs to be burned, not just a handful of coins.
Buying On Secondary
Secondary markets are primarily exchanges that exist alongside OTC trading. Depending on their technical structure, exchanges can be differentiated into centralized and decentralized ones. In centralized exchanges, users deposit cryptocurrency with the exchange.
Suppose a transaction fails to mint. In that case, you have to buy on any platform where you can mint NFTs and trade them daily – thus not primary from the source but secondary trading.
It is a system controlled and organized according to a hierarchical structure. This means that the power and decision-making authority is concentrated in the hands of a relatively small number of individuals at the top of the hierarchy. Corporations, for example, are centralized systems. A typical centralized blockchain system is the private blockchain since it is governed/managed by a single group or organization. While, obviously, a public blockchain is decentralized on the other hand.
- Centralized VS Decentralized System: Centralization is the process of concentrating power and authority in the hands of senior management. On the other hand, decentralization refers to the top-down delegation of power and authority to functional-level management.
- How does blockchain differ from a centralized system? Blockchain is designed to work in a decentralized manner, whereas the databases are always centralized. This unique feature of blockchain gives it the leverage it needs to become the next generation of technology. A blockchain can be either centralized or decentralized. It is important, however, that decentralized not be confused with distributed. While a blockchain is inherently distributed (meaning that many parties hold copies of the ledger), it is not inherently decentralized.
- What is distributed network in blockchain? Blockchain is a new technology that securely synchronizes the same information across a distributed network of partners, such that all parties see the same thing. This avoids the need for relying on a central intermediary to validate and synchronize information and enables more information symmetry across parties.
- Centralized vs Decentralized vs Distributed Systems: refer to both individuals and organizations. It affects almost everyone who uses the web. It’s at the core of the development and evolution of networks, financial systems, companies, apps, web services, and more. In a centralized system, control is exerted by just one entity (a person or an enterprise, for example). In a decentralized system, there is no single controlling entity. Instead, control is shared among several independent entities. Distribution refers to differences of location.
For example, if a blockchain is distributed, it can be decentralised. The traditional financial system is highly centralized, but cryptocurrencies are changing that by bringing in decentralization. Bitcoin is the perfect example of a decentralised and distributed blockchain. It has a peer-to-peer network. Bitcoin is regarded as the first decentralized cryptocurrency using blockchain technology to facilitate payments and digital transactions.
- What is a centralised cryptocurrency? A centralized crypto exchange is one that’s created and run by a company. These exchanges are considered centralized because one company oversees all the transactions and sets the exchange’s rules and fees. For example, Coinbase, Crypto.com and FTX create and run popular CEXes for a profit.
- What is the main difference between centralized and decentralized exchange? In short, decentralized exchanges offer lower transaction fees, allow the user to hold their own assets, and avoid a few regulatory burdens. On the other hand, centralized exchanges offer faster transactions, ease of use, high liquidity, and more.
- Which blockchain is the most decentralized? Many consider Bitcoin to be the most decentralized cryptocurrency. According to “bitnodes.io“, the Bitcoin network has 15,092 active nodes. This is higher than the current number of nodes on the second-largest blockchain network, Ethereum, which stands at 5,873, according to “ethernodes.org“.
The term is used to state that you are overcoming the fact that you missed out on something. It is the opposite of FOMO (Fear of Missing Out).
Cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.
Cryptocurrency can be converted to cash with Cash-Out Methods. There are two main avenues to convert bitcoin to cash and ultimately move it to a bank account. Firstly, you can use a third-party exchange broker. These third parties (which include bitcoin ATMs and debit cards) will exchange your bitcoins for cash at a given rate.
The word comes from Greek kryptós, meaning “hidden” or “secret,” and graphein, meaning “to write.” In computer science, cryptography refers to secure information and communication techniques derived from mathematical concepts and a set of rule-based calculations called algorithms, to transform messages in ways that are hard to decipher. Actually, this is the process of using mathematics to encode and protect sensitive information from malicious actors.
Cryptography vs Encryption: Cryptography defines securing a message using the encryption and decryption methods. Encryption is the application of cryptography. Encryption is the method by which information is converted into secret code that hides the information’s true meaning. There are two types of encryptions such as symmetric or asymmetric (popularly known as public key cryptography). The science of encrypting and decrypting information is called cryptography. In computing, unencrypted data is also known as plaintext, and encrypted data is called ciphertext.
Decentralized Autonomous Organization – DAO
DAO: A Decentralized Autonomous Organization is an organization that is controlled by its members and not subject to the authority of any single individual or entity. A decentralized autonomous organization, sometimes called a decentralized autonomous corporation, is an organization constructed by rules encoded as a computer program that is often transparent, controlled by the organization’s members, and not influenced by a central government.
The Decentralized Autonomous Organization (DAO) is a web3 idea that allows communities, corporations, or any type of collective organization to be administered and governed without centralized leadership, thanks to the ability of blockchain. Unlike a traditional corporation or government, they are completely free of hierarchical, top-down structure. Participation in a DAO is usually accessed through the acquisition of a digital token.
- What Is the Purpose of a DAO? A Decentralized Autonomous Organization DAO is intended to improve the traditional management structure of many companies. Instead of relying on a single individual or small collection of individuals to guide the direction of the entity, a DAO intends to give every member a voice, vote, and opportunity to propose initiatives. A DAO also strives to have strict governance that is dictated by code on a blockchain.
- What is a DAO in Crypto? Is a type of bottom-up entity structure with no central authority. Members of a DAO own tokens of the DAO, and members can vote on initiatives for the entity. Smart contracts are implemented for the DAO, and the code governing the DAO’s operations are publicly disclosed.
- What is the most successful DAO? Uniswap is one of the biggest and most popular DAOs and operates as a cryptocurrency exchange built on the Ethereum blockchain. Anyone can become a member by holding the UNI token, which gives voting rights on the way the organization is run and administered.
- How many DAOs exist today? There are already thousands of different DAOs and nearly 2 million people already hold DAO tokens.
- How much does it cost to start a DAO? At the moment, the initial filing fee is $100. An annual report is due every year thereafter; the fee for which is a minimum of $60.
- How to Join a DAO: You need to first buy its cryptocurrency. Holding the asset then generally gives users the power to vote on proposals and updates, proportional to the amount they hold. If you’re interested in joining a DAO, here are some tips to get you started: A beginner’s guide to joining a DAO.
- Do you need to be a crypto expert or a developer to join a DAO? No, you don’t need to be a crypto expert or a dev. DAOs need people with just about every skill set and knowledge base. For example, many DAOs have writers, graphic designers, marketers, software developers, translators, artists, videographers, community leads, and more.
Most DAOs operate through Discord, so be sure to do your research through Twitter to find out how to join. Additionally, some DAOs have websites or repositories of information that are accessible to the public. Have a look at this list of different types of DAOs.
DApps or dApps, also known as Decentralized applications are digital applications that run on a blockchain network of computers instead of relying on a single computer. Because dApps are decentralized, they are free from the control and interference of a single authority.
- Where can I find DApps? You can explore dapps by tapping Dapp browser tab at the bottom of your screen in an Android environment. If you wish to use a DApp that you do not see in the gallery, you can also manually enter the address or url for any DApp.
- The Difference Between a Centralized and Decentralized App:
- A centralized app is owned and controlled by a single company. Users will need to downlood a copy of the app and then keep sending and receiving data back and forth from the company’s server.
- A decentralized app (also known as a DApp or dapp) operates on a blockchain or peer-to-peer network of computers. Users of a dApp will have to pay the developer an amount of cryptocurrency to download and use the program’s source code. The source code is known as a smart contract, which allows users to complete transactions without revealing personal information.
Decentralized finance, or DeFi, refers to a financial system built upon the blockchain, and therefore fully distributed and not subject to any centralized authority, such as a bank, government agency or financial management firm. Mainly it is an umbrella term for peer-to-peer financial services on public blockchains.
DeFI is making its way into a wide variety of simple and complex financial transactions. It’s powered by decentralized apps called “dapps,” or other programs called “protocols.” Dapps and protocols handle transactions in the two main cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).
DeFi can address many of the flaws in the existing financial systems, including giving the unbanked access to the financial system. In the coming years, DeFi can offer improved transparency, and more robust security while replacing many of outdated processes.
A digital twin is a virtual representation of physical objects or systems. They are updated from real-time data and use simulation, machine learning, and reasoning to help decision-making. Although they are a virtual rendering of physical objects, they are designed, ideally, to be as dynamic and environment-dependent as the objects they’re imitating.
Even though Digital Twin technology has gained massive popularity in the past couple of years, the concept is not entirely new. Its concept came into being in relation to Product Lifecycle Management (PLM) in 2002 at the University of Michigan by Michael Grieves.
The digital twin market is projected to rapidly grow within the next few years. The market was valued at $3.1 billion in 2020 but is expected to reach $48.2 billion by 2026.
- Is digital twin a 3D model? A digital twin is a digital copy of a real-world place or object. Artificial intelligence and machine learning technologies enable the creation of digital twins, which are dimensionally accurate 3D digital models that can be updated quickly to reflect changes in their physical counterparts.
- Who uses digital twin? At the moment we see it in Urban planning. Civil engineers and others involved in urban planning activities are aided significantly by the use of digital twins, which can show 3D and 4D spatial data in real-time and also incorporate augmented reality systems into built environments. These digital assets can be created even before an asset is built physically.
- Another DT example is Google Maps: Google’s Immersive View is an approximation of a visual digital twin of the world, an evolution of the 3D view of larger cities or well-known landmarks familiar from Google Earth VR
- How digital twin is different from virtual reality? Augmented Reality is much older than Virtual Twin, however, the idea of augmentation is fairly limited. It only involves incorporating the virtual world with reality whereas Digital Twin is fully based on a virtual simulation that gathers data from the real world and adjusts itself based on the changes.
Do Your Own Research, or investigation into an asset before investing in it. However, the acronym is not a piece of advice exclusive to the cryptocurrency ecosystem. It is commonly used throughout the internet due to how fast and easily misinformation can spread.
Ethereum is a decentralized blockchain network built by Vitalik Buterin in 2015. The open-source network is home to its native cryptocurrency, also called Ethereum but more commonly known simply as Ether or ETH. The Ethereum platform also gave rise to smart contracts. As of March, ETH is the second most-valuable cryptocurrency in the world, after Bitcoin.
- How long does it take to mine 1 Ethereum? It takes around 7-8 days to mine Ethereum as of September 13, 2021, at the hash rate or hashing power of 500 mh/s with an NVIDIA GTX 3090 that hashes at around 500MH/s.
- How many Ethereum are left to mine? Currently, there are infinitely many Ethereum left to mine. If Ethereum remains inflationary or becomes deflationary is still uncertain. Let’s look at the numbers. By 2022, according to the figures, a total of 9M+ ETH had been staked.
- How do I get free Ethereum? Through Ethereum Faucet. An Ethereum faucet gives free Ethereum the same way a Bitcoin faucet gives free bitcoin. It is a reward system in which users will be required to perform specific tasks, and as rewards for completing the tasks, they get very small fractions of free ETH.
- How To Mine Ethereum: To mine Ethereum, computers spread around the world compete to solve cryptographic puzzles at the cost of processing power (labor) and energy. Any miner who successfully solves the puzzle first gets to add the next block to the blockchain. For their work, a miner is rewarded with ether (ETH). These rewards compensate miners for securing the network, verifying transactions, and adding blocks to the blockchain. Read more about Ethereum Mining.
- Is Ethereum 2.0 A New Coin? Ethereum 2.0 is not a new coin, and will not change the amount of ETH you hold. In terms of Ethereum vs Ethereum 2.0, Eth2 is simply an upgrade that will improve the Ethereum blockchain.
- Will Ethereum 2.0 replace Ethereum? The Ethereum 2.0 upgrade is not technically a replacement for Ethereum. Instead, it is best described as a merger. In the Ethereum.org FAQs for Eth2, the site also states it is “not accurate to think of Eth2 as a separate blockchain.”
- What happens to old ETH tokens when Ethereum 2 is launched? Your existing ETH tokens will be transferable to the Ethereum 2 chain. The legacy proof-of-work Ethereum chain will continue alongside the new Ethereum 2 chain initially.
- Should I stake my ETH for Eth2? It is a good idea to stake Ethereum because it is easier to run a node if you stake it. It doesn’t necessitate significant investments in hardware or energy, and you can join staking pools if you don’t have enough ETH to stake. Staking takes place in a more decentralized manner.
- Why do I need 32 Ethereum? To become a full validator on Ethereum 2.0, ETH holders must stake 32 ETH by depositing the funds into the official deposit contract that has been developed by the Ethereum Foundation. ETH holders who wish to stake do not need to stake during Phase 0: they can join the network as a validator whenever they wish.
Extended reality (XR) is a term referring to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables. E.g. It includes representative forms such as augmented reality (AR), mixed reality (MR), and virtual reality (VR) and the areas interpolated among them.
An Extended Reality System, or XRS, helps organizations get the most out of their virtual reality and augmented reality training by giving learning and development professionals the power to manage their content and users.
Extended reality even has applications in the medical and education field. For example, doctors can now offer patients the chance to view their surgery plan via virtual reality to see how things are set to play out. This can give a patient a little more confidence in the procedure, or can simply educate them on how things work.
The augmented and virtual reality market size was valued at USD 14.84 billion in 2020 and is projected to reach USD 454.73 billion by 2030, registering a Compound Annual Growth Rate (CAGR) of 40.7%.
- What is an extended reality system? Extended reality systems (XRSs) are immersive technologies used in virtual reality, augmented reality, and mixed reality. XRSs enable learning and development professionals to more efficiently manage, deliver and measure their experiential, immersive learning content and impact.
- Who invented Extended Reality? In 1962, a cinematographer named Morton Heilig patented Sensorama, in which a person sat in a semi-enclosed cabinet and experienced a stereoscopic 3-D display, augmented by a fan that spread aromas and a vibrating chair to simulate movement.
Fiat money is a type of currency that is not backed by any commodity such as gold or silver. It is typically declared by a decree from the government to be legal tender. Throughout history, fiat money was sometimes issued by local banks and other institutions. Not to be confused with the car brand.
In contrast to commodity-based money like gold coins or paper bills redeemable for precious metals, fiat money is backed entirely by the full faith and trust in the government that issued it. Cryptocurrency, which is not subject to the authority of any centralized authority, is often positioned as the opposite of fiat money.
Fungibility is a term used in economics and refers to the property of a good or a commodity whose individual units are essentially interchangeable and each of whose parts is indistinguishable from another part. Fungible tokens are the ones that can be exchanged or replaced; for example, a $100 note can easily be exchanged for five $20 bills.
- What is fungibility in Crypto? Fungibility is a property of goods whose units are interchangeable. Fungibility is critical to preserving Bitcoin’s censorship resistance and privacy. Goods that are not fungible or divisible serve as poor monetary goods. Bitcoin has infinite divisibility and strong fungibility.
FOMO stands for Fear Of Missing Out, and coincides with investors buying an asset after it has already seen a considerable increase in price. As crypto trading is still very much driven by emotions rather than valuation, FOMO is a huge factor to consider when swing trading in crypto.
FUD stands for Fear, Uncertainty and Doubt. It is used when people share negative information about cryptocurrencies online. The person sharing may be accused of spreading “FUD” or that people selling an asset are doing it out of FUD.
This term describes the cheapest price to acquire an NFT in a collection.
When speaking about Web3, gas refers to a fee that’s required in order to execute a smart contract or transaction on the Ethereum blockchain. Gas, which is often denominated in a very tiny fraction of an ETH called a WEI, is paid to node operators, AKA miners. Since smart contract programs can run forever, gas has become the practical way in Ethereum to manage the impact of a blockchain program.
- What does gas mean in NFTs? An NFT is created with exclusive ownership rights. NFTs can have only one owner at a time. Consider gas fee like a ‘processing fee’ you pay to your bank for every transaction you make online. It is the computing medium that you use to pay for.
- Why is NFT gas so expensive? Gas fees are used to compensate miners for the computing energy and resources spent to validate transactions and include them in a blockchain. NFT Gas fees are usually high as the complexity of the transaction and the traffic on the network is more energy-consuming.
- Gwei is the smallest denomination of the cryptocurrency Ethereum. 1 ETH is worth 1bn Gwei.
- How to Calculate Gas Costs? For any given program, the total gas used is calculated as the sum of the gas for each operation executed by the Ethereum Virtual Machine. For example, adding two numbers in a smart contract costs 3 gas, whereas sending a transaction costs 21,000 gas. Read more in this guide for smart contracts.
HODL is a common acronym used in the crypto space, and stands for ‘hold on for dear life.’ It’s usually used at times when the crypto market is under pressure. HODL is a term derived from a misspelling of “hold,” in the context of buying and holding Bitcoin and other cryptocurrencies.
In general, HODL is an investing strategy in which individuals purchase cryptocurrencies and hold them for a long period of time. This allows investors to take advantage of an increase in the value of the asset.
IRL stands for “in real life” commonly used in the web3 space to describe a person, place, thing or event in physical – as opposed to virtual – reality.
Liquidity is a term used in economics to describe the degree to which an asset can be converted into either cash or some other asset. Liquidity is a fundamental part of both the crypto and financial markets. It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings. If an asset is illiquid, it takes a long time before it is converted to cash.
- Why does liquidity matter in crypto? In terms of cryptocurrencies, liquidity is the ability of a coin to be easily converted into cash or other coins. Liquidity is important for all tradable assets including cryptocurrencies. Low liquidity levels mean that market volatility is present, causing spikes in cryptocurrency prices.
- What is a good liquidity ratio? A good liquidity ratio is anything greater than 1. It indicates that the company is in good financial health and is less likely to face financial hardships. The higher ratio, the higher is the safety margin that the business possesses to meet its current liabilities.
- High liquidity is associated with lower risk. A liquid stock is more likely to keep its value when being traded. The market is busy and it’s easy to find a buyer or seller on the other side. This means it’s less likely a trader would have to buy it for more or sell it for less than the market price.
- How much liquidity should crypto have? Liquidity is the first thing that investors check for and anything which stands out might make them uncomfortable. Ideally, you should lock all your liquidity, and at a minimum of 80%.
Cryptocurrency with low liquidity refers to an asset that you cannot easily buy and sell or that would result in significant impacts on the cryptocurrency’s price.
- What does removing liquidity mean in crypto? Removing Liquidity: Taking shares off the bid and ask (I.e. Buying the offer, selling into the bid). Removing liquidity comes with additional charges of ECN fees.
- Adding Liquidity: Putting orders out there on Level 2 away from where the current price and bid/offer are.
- Level II: is essentially the order book for Nasdaq stocks.
- ECN fees: Electronic Communication Networks. In addition to your trading commission, you may be charged an Electronic Communication Networks (ECNs) or Alternative Trading Systems (ATSs) fee. ECNs and ATSs are intermediaries that connect brokers to the market. ECNs and ATSs can charge a fee based on trading activity on their exchange.
A Mainnet (also known as main network) is the end product of a blockchain project which is accessible by the public to use. However, just like a Testnet, a Mainnet can be altered whenever projects or open-source groups determine that the product requires updates and/or revisions.
Mainnet (main network) and testnet (test network) are terms used in the blockchain ecosystem to describe blockchain networks with critical functionalities. The mainnet is responsible for executing actual transactions within the network and storing them on the blockchain for public use.
Meatspace refers to the physical world, as opposed to cyberspace or a virtual environment. This noun began being used in the early to mid-1990s, and is thought to be patterned after the earlier cyberspace (“the online world of computer networks and especially the Internet”), which dates to the early 1980s.
- Cyberspace: A global domain within the information environment consisting of the interdependent network of information systems infrastructures including the Internet, telecommunications networks, computer systems, and embedded processors and controllers.
Facebook, Inc changed its name to Meta (officially Meta Platforms, Inc) as part of the company’s pivot toward the metaverse. Meta builds technologies that help people connect, find communities, and grow businesses. Read more: The Facebook company is now Meta.
There are many who mistakenly believe that the metaverse is a technology owned by Meta. Meta aims to play a major role in the metaverse new virtual world.
- Meta is the company previously known as Facebook.
- Metaverse is a virtual reality environment that embodies the internet in three dimensions.
The metaverse is a virtual reality environment. It embodies the internet in three dimensions. Therefore it is safe to state that Metaverse is building alternative economies and online ecosystems. Simply said, the metaverse is a shared virtual environment where anything is possible and doable. It combines the physical and digital elements of our world and creates a new virtual version of the world.
The Metaverse has the potential to change the world, as we know it. It will allow people to go to places and experience things they would never be able to go and do.
- How does Metaverse actually work? It is still a developing concept and for now, we already know that users (avatars) can go shopping, study, socialize, attend concerts and galleries, do business, and do a variety of activities. The metaverse virtual worlds are constructed on a blockchain, therefore cryptocurrency is used to run its economy. We see that decentralization is a crucial feature of the metaverse.
Anything can be sold making metaverse a fully commercial medium. People through their avatars can create digital art, games, land, objects, services, and properties and then sell, rent or exchange them for a selected cryptocurrency in this blockchain-based virtual ecosystem.
Mixed Reality (MR)
Mixed reality is sometimes also referred to as hybrid reality or extended reality (XR).
Mixed reality, also known as MR, is a technology based on the merging of real and virtual worlds to produce new environments and visualizations, where physical and digital objects co-exist and interact in real-time.
Mixed Reality uses a series of cameras, sensors, and often AI-enhanced technology to process data about a space and use that information to create digitally-enhanced experiences. Although mixed reality is still in the early stages, it is already being used in many industries for educational purposes.
On one side, we have virtual reality, which completely replaces our existing environment with a new, computerized space. On the other side, there’s augmented reality, which overlays digital content into a real environment. Mixed reality blends elements of both AR and VR, to give a unique experience.
Mixed reality has been used in applications across fields including design, education, entertainment, military training, healthcare, product content management, and human-in-the-loop operation of robots. The use of mixed reality technology in medical applications can help transform the healthcare sector completely. By making use of VR headsets, with the incorporation of AR technology, surgeons could easily operate on their patients in a much more effective way than usual.
The term “mixed reality” was introduced in a 1994 paper by Paul Milgram and Fumio Kishino, “A Taxonomy of Mixed Reality Visual Displays.” Their paper explored the concept of a virtuality continuum and the taxonomy of visual displays.
- What is mixed reality development? Mixed reality provides the possibility of training new employees about complex systems, equipment, etc. more safely and efficiently, and within the actual environment, they will use the given information. Paired with digital twin technology, objects within MR environments can even incorporate real-time data.
- Examples of mixed reality: Snapchat filters, virtual makeup, and furniture fitting are good examples of mixed reality usage. In contrast, VR puts you in a completely virtual environment but requires specific equipment: a VR headset and controllers. VR is widely used in sports training and flight simulation, to say nothing of games, of course.
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications.
MetaMask is a popular cryptocurrency wallet known for its ease of use, availability on both desktops and mobile devices, the ability to buy, send, and receive cryptocurrency from within the wallet, and collect non-fungible tokens (NFTs) across two blockchains.
It is one of the most widely used crypto applications in the world. One of the key reasons MetaMask is so popular among new and existing crypto users is its interoperability with virtually all Ethereum-based platforms. MetaMask allows users to connect to more than 3,700 different decentralized applications and Web 3 services.
- Whats the difference between MetaMask and Coinbase? While MetaMask only features support for tokens and digital assets on the Ethereum ecosystem, the Coinbase Wallet hosts a wide variety of blockchain assets, including assets such as Bitcoin, Litecoin, Bitcoin Cash, Ethereum Classic, XRP, Stellar Lumens, Dogecoin, and Ethereum.
- How safe is MetaMask? There have not been any major hacking incidents on MetaMask, and it is backed by the hierarchical deterministic settings and a large community of users and developers who are constantly reviewing and updating their source code.
Aaron Davis is the Founder of MetaMask, a browser extension tool that acts as a bridge that allows you to run Ethereum dApps right in your browser without running a full Ethereum node. Prior to this, he was an employee at Apple Inc.
Minting is a term used to describe the process of registering a digital asset on the blockchain, thereby turning it into a purchasable non-fungible token (NFT). Creating new crypto coins using a proof-of-stake (PoS) consensus algorithm. In contrast, proof-of-work (PoW) cryptos come into existence by being “mined.”
The mining and minting terms were created from real-world coin making. Gold and silver are “mined” out of the ground and then “minted” into coins for circulation. Once an NFT has been minted – given the nature of the blockchain – it cannot be altered.
The origin of the word “mint” is ascribed to the manufacture of silver coin at Rome in 269 BC at the temple of Juno Moneta. This goddess became the personification of money, and her name was applied both to money and to its place of manufacture.
- What is minting a crypto coin? Minting crypto is the process of generating new coins by authenticating data, creating new blocks, and recording the information onto the blockchain through a “proof of stake” protocol.
- Is minting the same as mining? mining and how they intersect comes down to the fact that minting is part of mining. Once a coin is hashed, this triggers the minting process. This echoes the traditional financial process of mining gold and then minting coins for circulation.
- Does minting mean buying? How are these two concepts different? Minting an NFT means creating something completely new. You can mint from a digital online project or convert existing items such as art, memes, poems, or music into NFTs. On the contrary, buying an NFT requires an existing item that has been minted into an NFT.
- What is minting and staking? Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block’s validator. In most cases, the rewards are the same type of cryptocurrency that participants are staking. However, some blockchains use a different type of cryptocurrency for rewards.
- What does minting mean in NFT? Minting an NFT is, in more simple terms, uniquely publishing your token on the blockchain to make it purchasable. A simple step-by-step for starting this involves creating a digital wallet, specifically one that securely stores Cryptocurrency (well-known wallets include Coinbase, MetaMask, and Rainbow).
- How much does it cost to mint an NFT? Currently, the first fee you’ll pay as a first-time creator is used to initialize your account. As of April 2022, this fee typically costs $70 to $300. The second fee used to grant access to your account costs $10 to $30.
The term describes the event when a floor price rises rapidly, or that the value of an asset will go so high that it will “reach the moon”.
NFTs Non-Fungible Token
A non-fungible token (NFT) is a type of cryptographic token on a blockchain that represents a unique asset. These can either be entirely digital assets or tokenized versions of real-world assets. As NFTs aren’t interchangeable with each other, they may function as proof of authenticity and ownership within the digital realm.
- Fungibility means that an asset’s individual units are interchangeable and essentially indistinguishable from each other. For example, fiat currencies are fungible because each unit is interchangeable with any other equivalent individual unit. A ten-dollar bill is interchangeable with any other genuine ten-dollar bill. This is imperative for an asset that aims to act as a medium of exchange.
- Fungibility is a desirable property for currency because it enables free exchange, and theoretically, there is no way to know the history of each individual unit. However, that isn’t a beneficial trait for collectible items.
What if we could create digital assets similar to Bitcoin but instead add a unique identifier to each unit? This would make each of them different from all the other units (i.e., non-fungible). Essentially, this is what an NFT is.
- How to create your own NFT? In case you wish to create your own NFT then this detailed article by The Verge will show you the way. In the guide, you will discover all the steps on how to create an NFT using two of the most popular marketplaces.
- In addition, this article reveals the basics of NFTs and the decisions you may have to make before deciding to sell one.
The NFT world is perfect if you create limited edition digital artwork. Whether it’s paintings, photos, videos, or anything else the price is tied to the scarcity of the file and to the reputation of the artist.
Minting NFTs on Ethereum can be expensive. NFT minting gas fees fluctuate due to demand on the network and the current price of ETH. The gas fees peak during periods of high demand as users compete to get their transactions added to blocks.
- How does Minting a NFT work? Minting an NFT basically means converting a digital file into a blockchain-based NFT. Before minting an NFT, users are first required to set up a crypto wallet. Currently, MetaMask is one of the most popular crypto wallets, which is compatible with Ethereum Blockchain.
- Can you get hacked by minting NFT? Because NFTs are underpinned by blockchain, which utilizes sophisticated encryption technology, there is a common belief that these assets are “unhackable.” So, can an NFT be hacked? The simple answer is Yes. Any blockchain asset that is accessible online can be hacked.
- What happens after you mint a NFT? When you mint your NFT on OpenSea, the token is automatically transferred to your crypto wallet (the default wallet is Metamask) and you can sell your NFT on multiple platforms i.e. you can create an NFT on OpenSea NFT and sell it on any platform or NFT market powered by the Ethereum blockchain.
- Do you own an NFT If you mint it? Minting an NFT means creating something completely new. You can mint from a digital online project or convert existing items such as art, memes, poems, or music into NFTs. On the contrary, buying an NFT requires an existing item that has been minted into an NFT.
- What is the cost of minting an NFT? These minting prices aren’t fixed: they can be higher or lower depending on the function you seek to perform. The first fee you’ll pay as a first-time creator is used to initialize your account. As of April 2022, this fee typically costs $70 to $300. The second fee used to grant access to your account costs $10 to $30.
- Who buys NFTs? The type of people who buy NFTs are collectors, investors, flippers, fans, and folks all around the world. From celebrities such as Gary Vee, Jay-Z, and Mark Cuban—to your everyday working-class citizen. Research has shown that the 23% of Millennials, those who were born between 1981 and 1996, are leading in collecting NFTs. Baby Boomers have the lowest turnout towards NFTs as only about 2% of them admitted purchasing NFTs. On the other hand, Gen Xers and Gen Zers have 8% and 4% respectively.
- What is the purpose of owning an NFT? An NFT, or non-fungible token, essentially allows its buyer to say they own the original copy of a digital file in the same way you might own the original copy of a piece of physical art.
- Can paintings be sold as NFTs? NFTs (non-fungible tokens) are one-of-a-kind digital assets. Given they’re digital in nature, can physical works of art be turned into NFTs? The short answer is that yes, physical artworks can be minted and sold online as NFTs.
- Do all NFTs go up in value? Owing to speculation and rarity, NFTs have the potential to rise in value. As a result, if an NFT holder resells the asset, the resale value may be much greater than the initial purchase, depending on where buyers believe the asset’s worth is. Think of it as standard, physical artwork.
- Who decides the price of an NFT? The mint price for an NFT is determined by the creator or creators of the NFT. Creators have the ability to set the minting price at whatever they choose. As a general statement, minting prices are often below . 1 ETH for most projects so a wider number of purchasers can afford to buy.
- How much do NFT artists make? The average NFT royalty typically ranges from 5-10%. In most NFT marketplaces, the creator can choose their royalty percentage and the payments are automatic upon each subsequent sale in the secondary market.
- Do you make money every time your NFT is sold? Since you have already precoded a 10% royalty into the NFT, you will receive 20 ETH from this sale. Again the new owner might sell it at an even higher price and you get a 10% out of the new sale price again. Thus you will receive a recurring income from your creations.
- Can you get sued for Screenshotting an NFT? The most common consequence of screenshotting an NFT, claiming it is yours, and reselling it, is facing criminal and civil charges. The original creator of an NFT could sue someone for screenshotting their work and selling it without their knowledge. Charges can range from copyright infringement to fraud and theft.
- Can you print an NFT you bought? Collectors wanting to bring their NFT artwork into the physical world turn to fine art printing services such as Beyond Print to print NFT art. Each NFT artwork should have a corresponding image file that can be transformed from digital art into a framed masterpiece in a few clicks.
- Can an NFT be stolen? Technically, the most common way that NFTs are stolen is due to user error. An NFT can’t be stolen unless the hacker can gain access to your wallet or you willingly send your NFT to a hacker.
- How many NFTs are sold per day? The most current reports show that 3,200 NFTs are sold per day. That said, the potential for fluctuations is high in this type of market. For those concerned with the power consumption of NFTs through the Ethereum blockchain, NFTs may not be something they want to invest in until this is resolved.
- Can you destroy an NFT? There are a few ways to destroy an NFT, but the most common is simply to delete the file from the computer. This will remove the asset from the blockchain, and it will be gone forever. Another way to destroy an NFT is to “burn” it. This means that the asset is permanently destroyed and can never be used again.
You need a smart contract to sell NFT. In other words, you need to have a smart contract that has predefined conditions which need to be met for you to be able to sell your NFT, and you can write data onto it that can give you cryptocurrency each time it is re-sold as well, as that would be a part of the agreement of that NFT.
- Is NFT a smart contract? NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFT’s. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards, such as ERC-721. This information is added to the blockchain where the NFT is being managed.
- ERC721 is a standard for representing ownership of non-fungible tokens, that is, where each token is unique. ERC721 is a more complex standard than ERC20, with multiple optional extensions, and is split across a number of contracts.
- What are NFT standards and how to choose one? Non-fungible tokens (NFTs) are digital tokens with unique IDs that allow them to associate themselves with particular on-chain addresses. They also have comprehensive metadata that makes them an ideal instrument for confirming ownership of assets.
- What are token standards? A token standard is an interface, and a set of rules, that a smart contract must respect to be compatible with the common standards. Typically, token standards define how tokens can be transferred and how to keep a consistent record of those transfers on the Tezos network
NGMI is a popular slang acronym in the NFT space and it stands for not going to make it. Usually is used to stress the point that a crypto investor could miss a significant profit or incur major losses by not owning Bitcoin or speculating on altcoins, or participating in risky tactics like leverage trading. The opposite, WAGMI is commonly used for stating we’re all going to make it.
- NGMI= Not Going to Make It
- GMI= Going Make It
- WAGMI= We’re All Gonna Make It Stock and
Crypto traders use these terms to refer to people who are doing good trades or get it (GMI) and those who will not (NGMI).
P2P stands for peer-to-peer, and is used to describe a network of individual computers exchanging information with one another without the oversight of a central server. Management of a P2P network is distributed among its constituent computers.
PAOP is used to describe the term A Proof of Attendance Protocol. It is a virtual token that serves as evidence (most people also call it a badge) that a person has attended an event (virtual or physical).
A private key, also known as a secret key, is a variable in cryptography that is used with an algorithm to encrypt and decrypt data. Secret keys should only be shared with the key’s generator or parties authorized to decrypt the data.
A private key is an integral aspect of bitcoin and altcoins, and its security makeup helps to protect a user from theft and unauthorized access to funds. A cryptocurrency wallet consists of a set of public addresses and private keys. Anyone can deposit cryptocurrency in a public address, but funds cannot be removed from an address without the corresponding private key.
- How Do Private Keys Work? A private key is an extremely large number that is used in cryptography, similar to a password. Private keys are used to create digital signatures that can easily be verified, without revealing the private key. Private keys are also used in cryptocurrency transactions in order to show ownership of a blockchain address.
- What Is the Best Way to Store Private Keys? Private keys can be stored on computers or mobile phones, USB drives, a specialized hardware wallet, or even a piece of paper. The ideal form of storage will depend on how often you plan to use your cryptocurrency. A password-protected mobile phone or computer is the most convenient way to store cryptocurrency for everyday use.
Public and private keys are an integral part of Bitcoin and other cryptocurrencies. They allow you to send and receive cryptocurrency without requiring a third party to verify the transactions. These keys are a part of the public-key cryptography (PKC) framework. You can use these keys to send your cryptocurrency to anyone, anywhere, at any time. The public and private keys fit together as a key pair.
Public key is an alphanumeric code that’s connected with a particular wallet. Public-key cryptography, or asymmetric cryptography, is a cryptographic system that uses pairs of keys. Each pair consists of a public key and a private key. The generation of such key pairs depends on cryptographic algorithms which are based on mathematical problems termed one-way functions.
Proof of Stake (PoS)
Proof of Stake, or PoS, is a system for validating transactions and establishing new blocks in the blockchain. Ιτ work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work schemes.
Proof of stake implements randomly chosen validators to make sure the transaction is reliable, compensating them in return with crypto. Proof of work is a competition between miners to solve cryptographic puzzles and validate transactions in order to earn block rewards.
- There are two major consensus mechanisms used by most cryptocurrencies today. Proof of work is the older of the two, used by Bitcoin, Ethereum 1.0, and many others. The newer consensus mechanism is called proof of stake, and it powers Ethereum 2.0, Cardano, Tezos and other (generally newer) cryptocurrencies. Ethereum has moved to Proof of Stake completely since December 2021, which means ETH proof of work mining has become obsolete.
- What are the risks of proof of stake? Proof of stake is faster, lower cost, and more energy-efficient than the more popular proof of work method. Proof of stake has a security risk when a small number of owners control a large portion of the network’s currency value, but this is unlikely to occur with large, widely held currencies.
Proof of Work (PoW)
Proof of Work, or PoW, is another system for establishing consensus and building new blocks in the blockchain. A PoW mechanism requires each participant in a cryptographic process to submit proof that they have expended a certain amount of contributory computational effort.
Proof of work (PoW) is a form of cryptographic proof in which one party (the prover) proves to others (the verifiers) that a certain amount of a specific computational effort has been expended. Verifiers can subsequently confirm this expenditure with minimal effort on their part.
While proof of work is the most well-known blockchain consensus model, alternative consensus models like proof of stake might be more efficient since they can increase security, reduce energy use, and allow networks to more effectively scale.
- Why proof-of-work is losing ground? Because proof-of-work mining requires so much computing power, it tends to consolidate miners down to the few people who can afford the equipment. It also tends to pull computing resources into locations where electricity is cheap.
- Proof-of-work has mathematical limits on scalability that are substantially lower than hardware limits. Specifically, the combination of block frequency and block size must be bounded to maintain security. This bounds throughput to low hundreds of TPS (transaction process system), far below requirements for many practical applications.
Redpilled is a slang term used to describe a situation in which someone’s worldview – or their perspective on a specific issue – has undergone a sudden and dramatic shift. Is used both inside and outside of the political communities it refers to. Those who disagree with the ideology often use it in a derisive way, and those who agree tend to use it as a marker of belonging.
The phrase refers to the famous red pill from The Matrix film franchise, which basically symbolizes the decision to swallow a hard and uncomfortable truth about oneself or about the nature of reality.
- Bluepilled: As in the film, to be blue-pilled is to accept the mainstream narrative and choose to live in ignorance of the truths of the world. Red Pillers see themselves as intellectually superior to “blue-pilled normies.”
- Blackpilled: Communicating information or opinions that lowers the morale of people who share a common cause with you. The Blackpill is basically the ultimative and hardest to swallow Redpill.
Smart contracts are blockchain-based computer programs that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. Because they’re built upon the blockchain, transactions made via smart contracts can be closely monitored by the parties involved.
Smart contracts were first proposed in the early 1990s by Nick Szabo, who coined the term, using it to refer to “a set of promises, specified in digital form, including protocols within which the parties perform on these promises”.
- Who writes smart contracts? Anyone can write a smart contract and deploy it to the network. You just need to learn how to code in a smart contract language, and have enough ETH to deploy your contract.
- Ethereum was the first best smart contract platform, in the list of smart contract platforms. It still ranks as one of the top smart contract platforms 2022 choice among developers today.
In general, smart contracts are enforceable as long as they follow the basic rules of contractual agreements. These include the following. As with any agreement, there must be an offer, an acceptance of that offer and consideration. Put simply, these are defined thusly.
In blockchain technology, a testnet is an instance of a blockchain powered by the same or a newer version of the underlying software, to be used for testing and experimentation without risk to real funds or the main chain.
- Mainnet vs Testnet? Mainnet is the term used to describe when a blockchain protocol is fully developed and deployed, meaning that cryptocurrency. In contrast to mainnet networks, the term testnet describes when a blockchain protocol or network is not yet up and running on its full capacity.
A testnet network is an almost identical copy of the blockchain of a cryptocurrency that has two main objectives: Test changes to the protocol of the cryptocurrency Risk free. That external developers can integrate the cryptocurrency / protocol into their application, being able to do tests at no cost.
- What is a test network in Crypto? The blockchain test network — or testnet — represents nodes that have agreed to work collaboratively, independently of the main network or mainnet. For example, Ethereum has five testnets, each with unique purposes and programming parameters — Kovan, Rinkeby, Sokol, Görli, and Ropsten.
Tokenomics, this term is a blending of the words ‘token’ and economics. Is a catch-all for the elements that make a particular cryptocurrency valuable and interesting to investors. That includes everything from a token’s supply and how it’s issued to things like what utility it has. So, tokenomics is basically token economics or crypto economics.
Tokenomics is a kind of business plan for a cryptocurrency (token). This is a balanced economic model of a token that takes into account the interests of all participants (investors, users, coin founders, developers, and so on). The term is related with with characteristics of a cryptocurrency token such as issuance, attributes, distribution, supply, demand, among others.
TradFi stands for TRADitional FInance. It refers to centralized institutions such as banks and stock brokers. The TradFi term evolved in order to contrast regular banking transactions with crypto transactions (see DeFi and CeFi).
In decentralized finance, a public blockchain acts as the trust source, governing all operations in the financial sector. In contrast, public governance, which entails laws and licensed financial institutions, acts as the trust source, governing all operations in the traditional finance. DeFi is by definition more open and transparent than traditional financial systems, lowering barriers to entry and potentially increasing trust between users and lenders.
Virtual reality (VR)
Virtual Reality (VR) is a computer-generated environment with scenes and objects that appear to be real, making the user feel they are immersed in their surroundings. This environment is perceived through a device known as a Virtual Reality headset or helmet. Meta’s Oculus Quest headset is an example of a piece of hardware that can transport the wearer to VR worlds.
Wallet – Crypto Wallet
A crypto wallet is a software program or physical device that allows you to store your crypto and allow for the sending and receiving of crypto transactions. A crypto wallet consists of two key pairs: private keys and public keys.
A key is a long string of random, unpredictable characters. While a public key is like your bank account number and can be shared widely, your private key is like your bank account password or PIN and should be kept secret. In public-key cryptography, every public key is paired with one corresponding private key. Together, they are used to encrypt and decrypt data.
Cryptocurrency wallets store users’ public and private keys while providing an easy-to-use interface to manage crypto balances. They also support cryptocurrency transfers through the blockchain. Some wallets even allow users to perform certain actions with their crypto assets such as buying and selling or interacting with decentralised applications (dapps).
If you want to invest in cryptocurrency, you should invest in a wallet. Services such as PayPal and Robinhood allow you to buy a coin or fractions of a coin and store it on their servers. These are custodial wallets, however, where you don’t hold the private key.
- How do I start a crypto wallet? There are five basic steps to go through when using a cryptocurrency wallet for the first time. Determine what kind of wallet you want to use (Hardware, desktop, or mobile). Then buy or download your wallet. Install the software. Set up your account and security features. Deposit your cryptocurrency.
- COLD WALLET: a place to store cryptocurrencies offline, securing them from hackers. Can be hardware devices or written forms of users’ private keys.
- HOT WALLET: a place to store digital assets of digital storage that are easily accessible and portable, but also more susceptible to hackers.
Hot wallets are connected to the Internet, while cold wallets are kept offline. Read more about crypto wallets.
- NFT Wallets: An NFT wallet is a secure place that stores non-fungible tokens (NFTs). When choosing an NFT wallet, you have two main choices: hardware wallets or software-based wallets.