These are some key terms used in the Web3 space that you should know.
TABLE OF CONTENTS
- NFTs (or non-fungible tokens)
- Cryptocurrency wallet
- Gas fees’
Web3 is a decentralized online ecosystem based on the blockchain. Web3 Platforms and applications aren’t owned or operated by one central gatekeeper. They are maintained by the network of users who choose to participate in the system. Over time, these users earn ownership stakes by helping to develop and maintain these services.
Blockchain is the foundation of Web3. It is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. Each block in the chain contains a number of transactions, and every new transaction occurring on the blockchain will be recorded to every participant’s ledger.
NFTs (or non-fungible tokens)
NFTs (or non-fungible tokens) also called "Digital Collectibles", use blockchain technology, which acts as a digital record of all transactions related to the NFT - an unique and irreplaceable asset - on a vast network of computers. NFTs can represent almost anything like art, graphics, music, videos, images, etc.
(noun, verb): Not what you’re used to doing over Bluetooth on your phone! This marketing technique is used by crypto projects to send their digital merch, like tokens and NTFs, directly to the wallets of their users. This increases awareness and adoption, making the project more widely known and used.
(verb): The process of removing tokens from a cryptocurrency’s circulating supply, usually done by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process.
(noun): Remember when you used to have loose change in your pockets? Coins are a cryptocurrency built on a native blockchain. Just as a one-dollar coin is different in the USA and Canada, each cryptocurrency has its own kind of coin on its blockchain, with a value and exchange that are unique to that system.
A cryptocurrency wallet is like a bank account. In fact, it is a software program that contains public and private keys that are unique to access the owner of the particular wallet. The wallets allow you to interact with blockchains, enabling you to not only make purchases and transactions but also monitor the balance. A crypto wallet is a digital wallet that allows you to hold digital assets like cryptocurrencies and NFTs
(noun): A digital asset that uses cryptography. The “mystery” built into the original design means cryptocurrency is used as a medium of exchange that is borderless, secure, and maintained by blockchains. This is different from centralized banks, governments, and traditional currencies.
Gas fees are transaction fees. It is a charge that the user must pay to compensate the computing energy used by the blockchain network to process an individual transaction. This fee is used to pay miners for solving complex mathematical puzzles as a reward.
(noun): A public blockchain known for its cryptocurrency, called ether, or ETH, or simply Ethereum. The Ethereum blockchain platform serves as the foundation for a variety of decentralized applications, using a Turing-complete language, allowing for users to write and deploy complex, self-executing smart contracts which live on the blockchain.
(verb): Turning your digital file into a crypto collectible or digital asset on a blockchain. The process includes validating information, such as domain ownership, and registering that onto the blockchain.
(noun): Tokens are digital assets with unique metadata, created on an existing blockchain. Tokens can be used to represent digital and physical assets, or used to interact with dapps. Unlike coins, which are equal in value to other coins on the same blockchain, tokens have a unique value and cannot be exchanged or traded with each other for equivalency. i.e. LINK, UNI, AAVE