Meta Hollywood Dictionary: All The Web3 Terminology You Should Know
The world of Web3 has seen so much innovation over the past 12 years. It’s no surprise that there’s a world of Web3 slang out there that can be confusing for those just coming into the space. It’s time to talk all things apes, blocks, blockchain, coins, and DAOs! Here’s all the Web3 terminology you should know if you want to navigate this topic from a more informed angle.
Airdrop
An airdrop is a free distribution of cryptocurrency to several wallet addresses. These usually happen when a new cryptocurrency project launches or when a cryptocurrency exchange lists that coin. This helps the exchange or project to create awareness and attract their first batch of early adopters.
Altcoin
If there’s any word that should be in any Web3 glossary, it’s altcoins. These are usually any cryptocurrencies other than Bitcoin or Ethereum. The word is short for “alternative coin” and usually covers coins with relatively small market caps. Some examples of altcoins are Ripple, Decentraland, Bitcoin SV, and Litecoin.
Ape
You might have heard the term “ape” around cryptoland before. It refers to someone who jumps headfirst into a cryptocurrency investment without much research. They might be swayed by hype or herd mentality, leading them to take on a lot of risk without much due diligence. Don’t be an ape!
Bitcoin
This is the OG of cryptocurrency, created in 2009 by the mysterious Satoshi Nakamoto. Today, one Bitcoin can cost around $50,000!
Blockchain
A blockchain is a digital ledger that stores and transfers information in a decentralized way. Cryptocurrencies like Bitcoin and Ethereum are built on top of blockchain technology.
Blocks
Blocks are batches of transactions that are recorded on the blockchain. They’re chained together, with each block containing information about the previous block. (Don’t confuse it with the payment processing company, Square, which recently rebranded to Block.)
Coins
These are individual cryptocurrencies that are built on their own native blockchain. They can be used to store value and make payments. Some examples include Bitcoin, Dogecoin, and Ethereum.
Cold Wallets
Cold wallets are physical devices or sheets of paper that store cryptocurrencies offline. They’re generally considered safer than hot wallets because they’re not connected to the internet.
Consensus
This is important for verifying cryptocurrency transactions and adding new blocks to the blockchain. It refers to the state of agreement among the participants on the blockchain.
DAOs
DAOs are decentralized autonomous organizations that operate based on open-source code and are governed by their users. Instead of relying on traditional hierarchical systems, DAOs have guidelines written on the blockchain. They usually focus on a specific project or mission.
Diamond Hands
Imagine holding onto a cryptocurrency or stock despite a 40% drop in its value in a single day. That’s the kind of conviction that someone with diamond hands possesses! They’re so optimistic about a particular asset that they refuse to let go, no matter how volatile the market may get. This term is often used within Reddit and Twitter communities. The opposite of Diamond Hands is Paper Hands.
Ethereum
If you’re building a metaverse glossary, Ethereum should definitely make the cut. This is more than just a public blockchain. It’s a revolutionary platform that serves as the foundation for decentralized applications. With its own programming language, Solidity, users can write and deploy smart contracts that are as complex as they need to be. And as the foundation of other coins like Shiba Inu and Decentraland, Ethereum is an essential component of the entire crypto ecosystem.
Fiat
Fiat currencies are those that are accepted as legal tender and are often backed and regulated by a government. In the United States, for example, the US dollar is the fiat currency. It’s what we use to buy goods and services, pay taxes, and conduct all sorts of financial transactions.
Fork
A fork is an upgrade to the blockchain system that powers a cryptocurrency network. When the changes are minor, this results in a soft fork. But when the changes are more significant, this may result in a hard fork, leading to separate chains split from the original blockchain with different rules.
Fractionalization
Imagine owning a piece of a rare artwork or other digital asset. That’s the power of fractionalization. By locking an NFT into a smart contract and dividing it into smaller parts, several people can split the cost of an asset and own a transferable piece of it.
FUD (Fear, Uncertainty, and Doubt)
FUD is the bane of every investor’s existence. It’s news that seems negative, but often turns out to be false or blown out of proportion. This can cause all sorts of market volatility and uncertainty, leading to panic selling and other irrational behavior.
Fungible/Non-Fungible
Fungible means interchangeable or exchangeable with something else of the same kind. When it comes to crypto, this refers to tokens that can be exchanged for other tokens on a one-to-one basis. It’s the opposite of non-fungible tokens (NFTs), which are unique and cannot be exchanged for anything else.
Gas
No, we’re not talking about the gas you put in your car! In the world of Ethereum, gas is the fee paid by a user to conduct a transaction or execute a smart contract on the blockchain. This fee depends on how congested the network is and how complex the transaction is. And just like the price of the fuel you put in your car, gas costs on the Ethereum network can be high.
GMI
Short for “gonna make it,” this term is often used on Twitter to voice support for a project or person. It’s a rallying cry for those who believe that the Web3 space will create a lot of successful outcomes.
Tokens
Tokens are cryptocurrencies that don’t have their own blockchains. Instead, they’re built on a shared blockchain. Some examples include Shiba Inu and Tether (USDT).
Featured image by Traxer on Unsplash
