Web3 101: 20 most important web3 terms you should know (many won't)
Tags: web3, webdev, blockchain, codenewbie
Published: 2022-07-21 18:02:36

**Web3 is growing rapidly.** 

Every developer wants to start or switch to web3 because of it's huge market demand.

Even if you're not a web3 developer you must know some of the common & basic web3 terminologies.

_In this post we'll have a  quick glance of 20 most common & important web3 terms:_

### 1. Address, Crypto Address, Public Key:

- Alphanumeric character string used to send and receive crypto in blockchain network
- In Ethereum, the address begins with 0x

### 2. Block:

- A node in a chain

- Blockchain network is comprised of millions of such blocks

- A block is virtually impossible to hack

- It possesses parts or all of the records of the transactions that preceded it

### 3. Blockchain

- Blockchains store data in blocks that are then chained together

- Different types of information can be stored on a blockchain but the most common use so far has been as a ledger for transactions
- It is Immutable, which means data entered is irreversible

- Transactions are permanently recorded & viewable to anyone

### 4. ENS

Ethereum Name Service

- Human-readable and easy-to-remember addresses to Ethereum addresses

- Something like yourname.eth

### 5. ERC-20

- A set of specifications for tokens to follow in order to function optimally on the Ethereum blockchain

- Using it developers and entrepreneurs can build new tokens

- It is one of the foundational pillars of the blockchain ecosystem

### 6. DAO

Decentralized Autonomous Organization

- Blockchain-based system that enables people to coordinate & self-govern

- It has self-executing rules deployed on a public blockchain

Ex:
DASH - cryptocurency managed by its users
MakerDAO - A softwre that maintains stablecoin


### 7. DApp

Decentralized Application

- Web app that is built on top of open, decentralized, peer-to-peer infrastructure services

Example: 
Decentralized storage and.or a message protocol and platform

### 8. DeFi

Decentralized Finance

- Financial app developed on top of blockchain systems

- Removes the control banks & institutions have on money, financial products, & financial services

- Derivatives, Asset Management, Insurance

Eg:
Augur - a popular DeFi betting platform

### 9. Airdrop

- Distribution of a cryptocurrency token or coin

-  Usually for free

-  Done to gain attention, new followers and popularise a token

### 10. Alt Coin, Altcoin

- Any cryptocurrency that is not Bitcoin

- An alternative digital currency

-  Created after BTC

### 11. Smart Contract:

- Programs stored on a blockchain that run when predetermined conditions are met

- Usually an automated agreement between 2 parties 

- Code controls the execution, and transactions are trackable and irreversible

### 12. Gas

- Fee that is charged for any crypto transaction. Like as sending crypto & minting NFT

- Incurred to conduct the transaction or execute a contract on their blockchain platform

- Etherum gas prices are denoted in gwei

1 gewi = 0.000000001 ETH

### 13. Minting:

- A process by which digital art becomes a part of the Ethereum blockchain

- That is unchangeable & tamper-proof

- Similar to the way that metal coins are minted and added into circulation

### 14. Learn-to-earn:

- Mechanism that rewards users when they can prove they've learned something

- Often receive cryptocurrencies when they send proof of their new knowledge.

### 15. ATH, all time high

-  highest price (or market cap) that an asset has reached since its listing or inception

### 16. Testnet

A blockchain instance that is used for testing and experimentation without risk to real funds or the main chain

Usually used for a newer version of the underlying software for testing

### 17. Hodl 

-  hold on for dear life

-  used among cryptocurrency enthusiasts when encouraging traders to resist the urge to sell one's holdings in response to market fluctuations

### 18. Seed Phrase:

-  A series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet

-  Think of it as a master password to your wallet

-  You shouldn't share it with others

### 19. Consensus Mechanism:

-  A fault-tolerant mechanism that is used in blockchain systems to achieve the necessary agreement on a single data value among distributed processes or multi-agent systems

-  The consensus mechanism is known as Proof-of-Work (PoW)

### 20. Some frequent acronyms:

gg = Good Game

gmi = Gonna Make it

lfg = Lets Fucking Go

ngmi = Not Gonna make it

FOMO = Fear Of Missing Out

WAGMI = We're All Gonna Make It

fren = metaverse term for 'friend'

Ser = Sir (respectfully introduce oneself)

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Congratuations, now you've learned most common web3 terms 😎

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