As a Web3 world approaches and brands' marketing strategies become optimized for it, understanding how to speak the language of this new territory is a necessary (albeit sometimes overwhelming) first step. Our team is sharing an ongoing list of terms and lingo to keep you updated as Web3 evolves. Browse our glossary here:
AR: an interactive experience of a real-world environment. Objects and scenarios that exist in the real world are recreated to experience through technology.
Bitcoin: a decentralized, digital currency that can be transferred peer to peer.
Blockchain: a secure, digital recording of transactions that is captured in a way that is very difficult to change or hack.
Burn: the process by which cryptocurrency is taken out of circulation and placed in a private, inaccessible location.
Centralized exchange: a type of crypto exchange where organizations coordinate trading on a large scale (in a similar model as stock exchanges).
Cold wallet: a crypto wallet that cannot be compromised because it is not connected to the internet.
Consensus mechanism: the systems used by cryptocurrencies to validate the authenticity and security of transactions on the blockchain.
Cryptocurrency: a digital currency designed for transactions through a computer network that is not reliant on any central authority (like a government or a bank).
Crypto wallet: a mobile application that allows users to store and retrieve their digital assets (not needed for transactions, but a useful tool to keep your assets in one place).
Dapp (Decentralized application): digital applications that are built on a decentralized blockchain system,rather than on a single computer.
Decentralized exchange: a type of crypto exchange that allows direct peer-to-peer exchanges to take place online.
Decentralized autonomous organization (DAO): member-owned communities without centralized leadership. Decisions are made through consensus via smart contracts.
Discord: a community-based communications and instant messaging platform popularly used by gamers and crypto enthusiasts.
Drop: a release of limited edition items or collections used by brands to generate consumer enthusiasm. For example in the context of Web3, a brand may use an exclusive NFT drop as a marketing tactic.
Ethereum: A decentralized, open-source blockchain platform. The network is known for its original cryptocurrency, Ether (ETH), and for being a place where dapps can be built and maintained.
Fiat (Currency): currency that is declared as legal tender by a government.
Fractionalized NFTs: when the ownership of an NFT is divided into smaller portions, so the price is lower and ownership is collective rather than individual.
Full Node: a computer or server that stores the entire blockchain.
Fungible: interchangeable; able to be replaced by an identical or equivalent item.
Gas fees: user payments to cover the computing energy required to process and validate transactions on the Ethereum blockchain.
Genesis block: the name given to the first block a cryptocurrency ever mines.
Interoperability: the ability of computer systems to collaborate with each other, exchanging and making use of information.
Metaverse: a network of 3D, virtual simulations and worlds. Its current main purpose is socialization, as users can interact with each other virtually and explore digital spaces. The Metaverse is related to Web3 and could be considered part of it, but they are not interchangeable terms.
Minting: the process of creating and recording digital assets on the blockchain.
NFT - Non-Fungible Token: a cryptographic digital asset that is non-interchangeable and has unique identification codes and metadata.
Node: the digital container that stores blocks of data on a blockchain in a similar functional manner as a server.
Public key: a large numerical value used to encrypt data that is made accessible to everyone through a public directory. Transactions on the Blockchain are sent to public keys
Private key: a key, or numerical value, only accessible to authorized parties that can be used to encrypt or decrypt data. Private keys are used to sign Blockchain transactions and are therefore should be vigilantly secured.
Play to earn: the concept of in-platform gaming in which a player can earn crypto or other digital assets by playing.
Sidechain: a separate, parallel blockchain connected to the main chain by a two-way link that allows for data and asset transfer.
Smart Contract: a program stored on a blockchain that runs 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.
Testnet: an alternative blockchain used exclusively for testing. Testnet coins do not have monetary value, allowing developers to experiment and test without having to use actual money.
Token: a piece of digital currency or valuable asset that can be traded on the blockchain.
VR (Virtual Reality): an immersive, 3D, computer-generated simulation that people can interact with through VR headsets, gloves, and other electronic devices. see: Metaverse
Wallet: a software application or hardware device that stores a user's private keys. Wallets do not store the digital assets themselves, only the keys that allow users access to the assets on the blockchain.
Web3: a new iteration of the internet built on blockchain technology with digital ownership being the hallmark feature.