27 Web 3.0 Terms You Should Know
If you’ve just heard about web3 and are still trying to wrap your head around this phenomenon, you will come across a lot of terms you’ve likey never heard before. As an avid education and web3 enthusiast, I had to break down the most common web3 terms for you so that you can dive into the world of web3 with purpose and curiosity rather than fear and confusion.
What is web3?
Web3 is a decentralized web built on public blockchains. One of the biggest advantages of web3 is its revolutionary way of handling user authentication and online payments. Web3 also stands for ownership of data with users owning non-fungibe (unique) online assets that cannot be copied or replicated. Hold on, would that mean my online courses would no longer be pirated? 😱 I guess, that’s part of the reason why I’m so excited about building a web3 product.
Another reason why I’m such a big fan of web3 is the community aspect. It’s been 5 years since I started building a community for tech specialists who learn English and soft skills for career growth and I’ve loved every part of the process. Web3 is also about bringing users together and empowering them to share informationa and support one another.
So, here it is — my pocket dictionary that I put together from learning about web3 as an edupreneur and member of several web3 communities in Miami.
Web 1.0 (pronounced as “web one point o”) — the first iteration of the web that came into existence in the early 90s. This was the Internet of static read-only websites resembling newspaper listings with minimum user interaction.
Web 2.0 (pronounced as “web two point o”) — Interactive Internet that emerged in the first half of the 2000s that exists to this day. This is the Intenet of social media platforms and e-commerce stores.
Web3 (also known as Web 3.0) — third-generation online services merging AI, AR/VR and decentralized blockchain technologies to create a transparent and accessible Internet experience where the user has more privacy and control over their data.
- Block — a block of encrypted transactions that make up a blockchain. Every block contains information about the previous block, thus creating a chain.
2. Blockchain — a digital ledger where information can be stored and shared. Blockchains also allow to carry out financial transactions without a centralzed intermediary (such as a bank or big tech companies like Amazon, Facebook, etc.)
3. Token — a digital asset that holds a certain value (such as an NFT), which can be bought and sold. Tokens are at the heart of web3 marketplaces, that’s why the web3 economy is often referred to as “token-based”.
4. Coin — slang for a cryptocurrency built on a blockchain (for example, Ether — a cryptocurrency built on the Etherium blockchain)
5. Altcoin — originally, the name for all cryptocurrencies other than Bitcoin. However, you can now use this term to describe any newly emerged cryptocurrency with a relatively low market cap. This term can be shortned to just “Alts”.
6. Shitcoin — the name says it all 🥴. A “weak” low value cryptocurrency.
7. Stablecoin — a stable cryptocurrency usually pegged to a fiat currency (for example, the US dollar), valuables such as precious metals or even other stable cryptocurrencies such as Bitcoin.
8. Fungible — a synonym of “interchangeable”. In the web3 context, cryptocurrencies are considered “fungible” tokens since one coin can be exchanged for a similar coin of the same value.
9. NFT (Non-fungible token) — a certificate proving unique ownership of a digital or physical asset. Most people associate NFTs with the famous jpg of a monkey smoking a cigarette, however, NFTs can also come in the form of audio files, video files, animations, gifs, and even tweets.
10. Crypto wallet — a program or device containing your public and/or private key for crypto traansactions. For example, if you want to buy an NFT, you would need to connect your crypto wallet to a marketplace such as OpenSea.
11. Metamask — a popular crypto wallet which gives its user access to the Etherium blockchain on that user’s phone or browser.
12. Wallet Address — a synonym of “public key” (see below 👇).
13. Private Key / Public Key — an alphanumeric code needed for authorizing crypto transactions and accessing crypto wallets / a cryptographic code which can be seen by all participants on the blockchain (similar to your bank account number). Knowing your public key, other web3 participants can send you digital assets, however, you alone will have access to the content of your crypto wallet via your private key.
14. Smart Contract — web3 backend code which acts as an alternative to regular servers and data bases.
15. DAO- Decentralized Autonomous Organization — an open-source organization controlled and managed by its users. The defining feature of such organizations is transparency meaning that its participants can see and make changes to code which is stored on a blockchain.
16. DeFi- (pronounced dee-fai) Decentralized Finance. An ecosystem of peer-to-peer financial tools built on a blockchain without the involvement of traditional banks. DeFi apps are transparent and interconnected.
17. Fiat currency — physical (paper) currency managed by the government (such as the US dollar).
18. Metaverse — a virtual online space where people can participate as virtual avatars, interact with one another, buy and sell in real time.
19. Minting — the process of validating information, such as domain ownership, and registering that onto the blockchain.
20. Go to the moon! — a phrase that is used to say that the price of a particular coin is going to go up in value by leaps and bounds. For example: “This coin is going to the moon!”
21. Dapp (Decentralized Application) — an application that works on a blockchain with the help of “smart contracts”. All apps on web3 are dapps by default.
22. Node — any device connected to a blockchain.
23. Protocol — in web3, a protocol can be either the blockchain itself or apps that are built on it. For example, Bitcoin, Ethereum, Uniswap — are all protocols.
24. Pump and dump — a fraud scheme where the value of a certain cryptocurrency is artificially inflated. Once enough people purchase that coin and its value is maxed out, the creators of that hype sell their shares at the inflated price leaving the other shareholders to suffer financial loss after the value of the coin had plummeted.
25. Testnet — an instance of a blockchain used for testing updates before rolling them out to the main chain without risk to real funds.
26. Transaction — data that is added to a blockchain. New transactions need to be confirmed by nodes (participants of that chain). For a transaction to be carried out successfully, it needs to be confirmed by a certain number of nodes. Successful transactions are then added to a new block.
27. DYOR (Do Your Own Research) — in other words, “look before you leap”. This phrase is what people usually say to remind web3 enthusiasts to do research into what they’re planning to invest their money in to avoid significant financial loss and disappointment.
We at English For IT have already done our own research which resulted in the creation of our first NFT series which we rolled out for our team exclusively.
I am beyond excited and grateful that at English For IT we have this amazing opportunity to not only tell our students about cutting-edge technology, but actually use cutting-edge tech to make our company and products more awesome. Our next step is launching our NFTs across the entire English For IT community. I am so excited! Will you join us on this trip?