Web 3 Glossary
1/1- one-of-one
A unique piece of art. In traditional art, Salvador Dali's "The Elephants" is a 1/1.
2FA- Two Factor Authentication
This is an added security step, in addition to the username and password, used to log in.
10k PFP- 10,000 Profile Picture
Used to Describe a collection of NFTs designed for profile pictures on social media. Collections of 10,000 or 8,888 are popular. Cryptopunks was original 10k PFP.
A
ABI- Application Binary Interface
ABI is an acronym for Application Binary Interface, an interface between two binary program modules at the level of machine code, not source code.
Access Token
Grants access to premium features on a platform or to a community. Access tokens can be a tradable membership for exclusive experiences.
Address
A unique string of numbers or text appointing a wallet's location on a blockchain.
AFAICT
As Far As I Can Tell.
AFAIK
As Far As I Know.
Airdrop
Crypto projects use this marketing technique to send their tokens (e.g. coins and NFTs) directly to wallets to raise awareness.
All in
Just like in poker, meaning all your eggs in one basket, all your money, tokens, and or coins are fully invested. All in on one coin, all in on a vertical, or just all in all around.
Alpha
Valuable advice, recommendations, or info given by someone in a position of knowledge.
Alpha Leak
When Alpha advice is obtained directly from the source.
Altcoin
Refers to cryptocurrency that is not Bitcoin such as newer projects with a smaller market cap. Alts is short for Altcoins.
Alts
Short for altcoins.
Altseason
The period of a bull market right after Bitcoin pumps when the masses believe that the Bitcoin profits will start to turn to altcoins, that will pump and shoot to the moon.
AMA
Ask Me Anything.
AMM
Automated Market Maker is used instead of an order book matching buyers and sellers managed centrally like Binance or Coinbase. AMM is used to trade in an automated and permissionless way. Liquidity pools are used to ensure there is always a counterparty to the trade.
Anon
Short for anonymous.
Ape
Someone who invests heavily, sometimes all-in, in cryptocurrency as a reaction to hype or FOMO. It is not meant negatively towards someone but rather as a self-assigned term. E.g. I am apeing into Ethereum.
API
Application Programming Interface. An interface between computers or programs that allows information to pass between them.
Archival Nodes
An archival node is a full node in the blockchain that keeps a complete history of transactions and addresses state changes since the genesis block.
Assets
Things" that are worth money.
ATH
All Time High. The highest price an asset has ever had.
ATL
All Time Low. The lowest price an asset has ever had.
B
Bag Holder
Someone who is holding an amount of crypto and has had it from ATH to ATL. They find it hard to sell because there is usually tremendous financial loss and emotional pain.
Base Fee
A base fee is an algorithmically determined fee that users on the Ethereum blockchain must pay to complete a transaction. They are designed to help smooth transaction fees and prevent sudden spikes by targeting 50% full blocks. Depending on how full the new block is, the Base Fee is automatically increased (the block is more than 50% full) or decreased (the block is less than 50% full).
Bear Market
A prolonged period of decline in a financial market.
Bear Trap
A time in the market when it looks like the market will go down and bears start to short, instead the market goes up, and bears with short positions are liquidated. Not good for da bears.
Bearish
Similar to a bear market, Bearish is referring to holding a pessimistic view of the market or asset's value. Bearish people believe a crypto or asset will decrease over time.
Bitcoin
Perhaps the most famous decentralized, peer-to-peer digital currency.
Block
A batch of transactions written to the blockchain. Each block contains information about the previous block, in turn, chaining them together.
Block Explorer
A tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates.
Blockchain
A publicly accessible digital ledger is used to store and transfer information without the need for a central authority. They are the core technology that cryptocurrency protocols are built on.
Bounty
Same as when a reward is offered for catching criminals, except the reward is for finding bugs in code.
Bridge
A protocol that allows separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
Buidl
meaning “build,” a common intentional misspelling used in crypto circles in reference to the term HODL.
Burn
The process of removing tokens from a cryptocurrency’s circulating supply, by sending them to an inaccessible wallet address. Other digital assets, such as NFTs, can also be burned via the same process.
C
Cancel Transactions
The type of replacement transaction where a user submits an identical transaction with a higher gas limit so it is mined before the previous transaction. Once the new replacement transaction is confirmed, the original transaction will get dropped.
Caretaker
Someone who "sweeps the floor" for an NFT project.
CeFi
Centralized Finance. Centralized businesses participating in crypto. (E.g. BlockFi)
Centralized
In a centralized network, there is a central authority that governs and handles the network.
CEX
Centralized Exchange. An exchange handling cryptocurrency is managed by a centralized business. (E.g. Coinbase)
Code Grind
A relentless grind of coding over an extended period of time.
Coin
A cryptocurrency that is built on its own native blockchain, with the purpose to store value and serves as an medium of exchange within that specific ecosystem. (E.g. ETH, BTC)
Cold Wallet
A hardware device to store cryptocurrency. They usually are hard drives or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.
Collateral
Any asset accepted as security for a loan, such as a physical asset like real estate, or a digital asset like an NFT.
Collection
A series of NFTs minted from the same contract.
Confirmed Transactions
A transaction that has been included in a block and permanently added to the blockchain.
Consensus
A collective judgment in which data processors, called nodes, come to an agreement to verify new transactions and blocks to be added to the blockchain. This process is used by consensus mechanisms such as proof of work and proof of stake.
Consensus Mechanism
The process through which nodes on a blockchain come into agreement on a transaction or state of the network.
Conviction
A strong positive feeling about a project's ability to deliver on what it says and provide real value.
Cope
Unsuccessfully dealing with missing out on an opportunity.
Copycat
Crypto or NFT that copies an existing project.
Copypasta
When someone posts the wrong thing or bad fact, and the community copies and pastes the quote, forever immortalizing and embarrassing the originator.
Cozomo de Medici
An anonymous NFT collector. The name is taken from a 15th-century banking family who became patrons in the arts and invested the equivalent of millions of dollars on art and culture. Snoop Dog claims to be Comzomo de Medici, but so does Paris Hilton..."
Crab Market
Often occurs after a bull run and crash. It signals retuning to bull, only to stop after a 5% increase, flatline, then drops 5%, rise, and repeat.
Cryptocurrency
A digital currency designed for use as money within a digital ecosystem. It is a medium of exchange, storing value, etc. They are maintained by blockchains.
Cryptopunks
The original 10k PFP project. generally recognized as the first generative collection of NFTs.
Cypherpunk
Someone who believes in the use of cryptography to affect social and political change through privacy by cryptography. (E.g. Satoshi Nakamoto, anonymous founder of Bitcoin.)
CZ
Changpeng Zhao is the founder of the crypto exchange, Binance.
D
DAO
Decentralized Autonomous Organization. An organization is governed by its users or token holders through voting. DAO’s are open-source and often focus on a specific project or goal."
Dapp
A Dapp is an application built on open-source code that lives on the blockchain. Dapps exist independent of centralized groups or figures and often incentivize users to maintain them through rewarded tokens.
Data
In the context of the internet, data refers to a user’s personal information, such as name, age, location, interests, browsing history, device usage, purchasing habits, etc. Web3 aims to protect this personal data and give ownership of it back to the user.
DD- Due diligence
The process of conducting your own research on cryptocurrency, stock, or other assets before investing. Doing your own DD is essential, as opposed to making an investment based on what someone else says or does.\
Decentralized
A system that operates without the control of a central figure or authority, and replaces it with a distributed peer-to-peer network.
Decentralized Application
A software application that runs on a distributed network. It’s not hosted on a centralized server, but instead on a peer-to-peer decentralized network.
Decentralized Finance
A term used for financial services on public blockchains such as Ethereum. It serves peer-to-peer, is open to all, and supports functions such as earning interest, borrowing, trade, and more.
DeFi
A term used for financial services on public blockchains such as Ethereum. It serves peer-to-peer, is open to all, and supports functions such as earning interest, borrowing, trade, and more. The ecosystem of borderless, trustless, peer-to-peer financial tools is being built on public blockchains without the use of banks. DeFi apps are built to be open and interconnected, allowing them to be used in conjunction with one another.
Degen
Deriving from the degenerate or degenerative gambler. Calling someone a Degen is a badge of honor without harmful ideals.
Delist
Cancel your NFT listing on a marketplace and remove it from the sale. An exchange can delist a token for copywrite issues or bad press.
DEX
A peer-to-peer cryptocurrency exchange built on the blockchain. It is run on smart contracts and by its users. (E.g. Uniswap)
Diamond Hands
You have diamond hands when you are bullish on a certain asset and are not planning to sell it. Antonym of paper hands.
Difficulty
The level of computing power needed to verify transactions and mine blocks on a proof-of-work blockchain.
Difficulty Bomb
The process of increasing the difficulty of a proof-of-work blockchain in order to motivate the transition to another consensus algorithm (such as proof-of-stake in the case of Ethereum).
Digital Collectibles
Assets that are part of a series that is collectible. Examples can be 10k PFPs or NBA Topshots.
Dildo
When there is an extremely large candle on the trading charts of assets. Dildos can be green or red.
Dip
A temporary decrease in the price of an asset.
Discord
A community messaging tool. Originally used by gamers to chat while playing.
Doge
THE dog coin. Started as a joke, and was abandoned by its creator, now look at it. It's a fork of Bitcoin si it is basically identical except it is inflationary and uses a weaker form of cryptographic security.
Dolphin
A trader that is not as big as a whale or as small as a fish.
Dox
Revealing your or someone else's identity online. Originates from publicly sharing documents(doc) online.
Drop
A new NFT release.
Due Diligence
The process of conducting your own research on cryptocurrency, stock, or other assets before investing. Doing your own DD is essential, as opposed to making an investment based on what someone else says or does.
Dutch Auction
An auction that starts high and gradually gets lower until the market determines a "fair price". An example is an NFT listing at 5 ETH and every 15 minutes dropping 0.5 ETH.
DYOR
Do Your Own Research. Don't get lost in the sauce. Don't just follow the hype. Everything has already been done.
E
EIP- Ethereum Improvement Proposal
The standard format for presenting a new feature or process to the Ethereum community.
ERC- Ethereum Request for Comments
The standard smart contract outline on which Ethereum-based smart contracts are built.
ERC-223
Ethereum token standards allow certain structures of data. For example, ERC-1155 is often used in gaming and collectibles to reduce the number of transactions as they can be managed simultaneously by a single smart contract.
ERC-721 "The most widely used token standard for NFTs.
Ethereum token standards allow certain structures of data. For example, ERC-1155 is often used in gaming and collectibles to reduce the number of transactions as they can be managed simultaneously by a single smart contract.
Ethereum token standard that allows for the formation of unique tokens, otherwise known as NFTs, or non-fungible tokens. Unlike the ERC-20 standard, ERC-721 tokens have specific properties that allow each to be uniquely identified and valued independently of one another.
ERC-1155
Ethereum token standards allow certain structures of data. For example, ERC-1155 is often used in gaming and collectibles to reduce the number of transactions as they can be managed simultaneously by a single smart contract.
Ethereum token standard allows for fungible, non-fungible, and semi-fungible tokens to be managed by a single smart contract simultaneously. These are commonly used in gaming and collectible trading to reduce the number of necessary transactions.
ETH
Ether. The second largest digital currency by market cap besides Bitcoin. A public blockchain with the purpose to build and deploy decentralized applications. It has its own programming language called Solidity. It's common for noobs to confuse Ethereum and ETH. ETH is the native token for the Ethereum blockchain.
Ethereum
A public blockchain with the purpose to build and deploy decentralized applications. It has its own programming language called Solidity. Serves as the foundation for decentralized applications. Ethereum is a turing complete language, allowing for users to write and deploy complex, self-executing smart contracts which live on the blockchain.
Ethereum Improvement Proposal
Standard format for presenting a new feature or process to the Ethereum community.
Ethereum Request for Comments
The standard smart contract outline on which Ethereum-based smart contracts are built.
Exit Liquidity
When a whale wants to cash out a massive amount of coins, they don't want to dump all the coins on the market at once and crash the price. They create all kinds of hype and get new buyers into the market. So, when the whale starts to dump their portion, there are a lot of new buyers willing to buy at the existing price and the price shouldn't drop too much. Most often the hype dies and the price does drop. Depending on the whales' strategy they usually are sitting pretty in the end.
F
Fan Token
A cryptocurrency created by someone or a group with an audience, usually a sports team. A Fan token can allow holders participation in the group governing activities while gaining exclusive gifts and buys.
Fanboy
Someone blindly devoted to a token or project. Fanboys are usually the greatest Hodlers and are the backbone of successful projects.
Fangirl
Someone blindly devoted to a token or project. Fan Girls are usually the greatest Hodlers and are the backbone of successful projects.
Farm
Crypto Farms are banks of computers that mine, or create crypto tokens.
Fat Fingered
A devastating action to NFTers. When someone accidentally lists an NFT for 0.35ETh instead of 3.5ETH.
Few
Short for ‘Few Understand’. Meaning you are still early in the industry and will make a lot of money when mass adoption arrives.
Fiat
A currency that is backed and regulated by a government.
Fish
A little investor. Someone with a small portfolio.
Flex
Show off in a pretentious manner.
Flip
Buy 'em low, sell 'em high.
Flippening
The possible event of Ethereum becoming more valuable than Bitcoin, in terms of market cap.
Floor is lava
When a project is being bought out quickly and the lowest price is rising fast.
Floor Price
The lowest price of a project that's available.
Floor Sweeping
When whales come into a project and buys up all the least expensive assets in bulk. This is great news if you are already a project holder.
FML
Fuck My Life.
FOMO
Fear Of Missing Out
Fork
Change to a blockchain protocol. When these changes are minor, this results in a soft fork. When the changes are more fundamental, this may result in a hard fork, leading to the formation of a separate chain with different rules.
FR
For Real. Perfect way to show shock in crypto or NFT land. FR FR = big total surprise.
Fractionalize
Locking an NFT into a smart contract, and then dividing it into smaller parts which are issued as fungible tokens. This lowers the price of ownership and allows artwork and other digital assets to be owned by a community. Dividing up ownership of an asset into smaller fractions. As an owner, it can help make illiquid jpegs liquid. As a buyer, it can be a great way to access a community or alpha group.
Fren
Short for a friend in Web3 circles.
FUD
Fear Uncertainty and Doubt. Fake negative news around an asset.
Fudder
A spreader of fear uncertainty, and doubt.
Fudding your bags
Cardinal sin of web3. When someone starts talking smack about their own assets.
Full Node
Blockchain node which stores the blockchain’s complete history, as well as verifies and relays transactions.
Fungible
Interchangeable. Can change for something else.
G
Gangster. A term of endearment.
Gains
The Profits or value increase made on a project.
Gas
The fee paid by a user is required to run a transaction or execute a smart contract on a blockchain. This fee is dependent upon the transaction’s complexity as well as the current demand on the network.
Generative Art
Code that is randomly generated, created, and stored on a blockchain.
Genesis Block
The first block recorded on a blockchain. Unlike other blocks, it must be hardcoded into the software, since there are no previous blocks for the genesis block to reference.
Genesis Drop
The first NFT released by a creator. Generally the rarest and most expensive of a collection. Genesis drop holders are considered OG.
GG
Good Game.
GM
Good Morning.
GMI
Going to Make It.
GN
Good Night.
GOAT
Greatest Of All Time.
Going to dust
The assets' value is dropping and will probably be worthless.
Grind
Just like doing chores. Doing the hard boring work to meet your goals.
GTD
Going to dust. The assets' value is dropping and will probably be worthless.
GTFO
Get The F*#k Out.
Gwei
A value of ETH used as a unit of measurement to calculate the Ethereum gas price.
H
Hard Fork
A permanent new version of a blockchain that required a change to the previous protocol.
Hash Power
Also referred to as hash rate, this is the rate at which a computer can generate guesses to a cryptographic puzzle. Hash rate can also refer to the overall power being used by the entire network on a proof of work blockchain.
Hash Rate Also referred to as hash power, this is the rate at which a computer can generate guesses to a cryptographic puzzle. Hash rate can also refer to the overall power being used by the entire network on a proof of work blockchain.
Hashing
Taking any kind of input of any size and reducing it to a unique identifier code. This allows data to be stored securely and recalled. This is a fundamental principle of blockchain technology.
HFSP
Have Fun Staying Poor.
HODL
Hold On for Dear Life. A misspelling of ‘hold’ that was popularized and frequently used in crypto communities. It means to hold your assets and not sell them.
Holding the bag
When an asset you own quickly drops and are left with an unfortunately low-valued asset, but are not selling.
Honey pot
A smart contract that looks to exploit users who discover it, look to exploit it, but be exploited themselves, instead of stealing the honey(assets) they lose their own(assets).
Hopium
Hope with the addictiveness of opium.
Hot Wallet
A crypto wallet that is connected to the internet with private keys is also accessible on the internet. This method of storage can leave one susceptible to a hack.
I
ICO- Initial Coin Offering.
An ICO is a popular crowd fundraising tactic for startup cryptocurrency projects, in which a percentage of the initial token supply is sold to early supporters.
IDEK
I Don't Even Know.
IDK
I Don't Know.
IEO "Initial Exchange Offering
To raise capital but regulated by a trusted exchange. A way to make ICOs more secure."
Illiquid
"An asset that will not easily make you cash. Few participants and low volume of activity."
Imma
I'm going to
Immuteable
"Something can't be modified, changed, or altered after creation. When an asset is on a blockchain, its properties, serial number, traits, or collection size can not be altered. It is verifiable and can be tracked for-ev-errr"
Initial Coin Offering
An ICO is a popular crowd fundraising tactic for startup cryptocurrency projects, in which a percentage of the initial token supply is sold to early supporters.
Initial Exchange Offering
To raise capital but regulated by a trusted exchange.
IPFS
Interplanetary File System. The InterPlanetary File System is a protocol and peer-to-peer network for storing and sharing data in a distributed file system. IPFS uses content-addressing to uniquely identify each file in a global namespace connecting all computing devices.
IYKYK
If You Know You Know
J
Janitor
A way to make ICOs more secure.
JOMO
Joy Of Missing Out
JPEG
Joint Photographic Experts Group. JPEG has been the most widely used image compression standard in the world, and the most widely used digital image format, with several billion JPEG images produced every day as of 2015.
K
Key
Consists of public and private key that refers to your wallet address. A public key is similar to a bank account number, a private key is often revered as a way to access your funds. Only to be known by its owner.
KOL
Key Opinion Leader. An Influencer.
L
L1-layer 1
The L1-layer 1 is the base layer of the blockchain platform. Also refers to mainnet or mainchain (E.g. Solana, Cardano, Ethereum, Polkadot.)
L2-Layer 2
The L2-layer 2 refers to protocols, or solutions, built on top of the L1 layer. (E.g. Lightning network),
Lambo
Lamborghini. Some set the goal of being able to afford a Lamborghini as a goal for success.
LARP
Live Action Role Play. When someone is trying to be someone they are not. A fraudster.
Light Node
Blockchain node that downloads just enough data from the blockchain in order to process and verify transactions. Unlike full or master nodes, light nodes do not store a blockchain’s complete history.
Liquidity
A measure of how easily an asset can be bought, sold, or traded in a given market or on an exchange.
Liquidity Pool
Pool of tokens locked in the smart contract. By offering liquidity, they guarantee trade and are used widely by some decentralized exchanges. A collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform. On decentralized exchanges and lending protocols, liquidity must be provided by the users, as there is no central bank or figure to do so.
LMFAO
Laugh My F*#king A22 Off
Long Position
A Long Position means you have purchased an asset and are hoping for it to increase in value.
Lurk
When someone is inactive but always seems online, might even post a reaction every once and a blue moon.
M
Magic Internet Money
Cryptocurrency. Originally posted on Reddit as part of a Bitcoin advertisement. Created in MS Paint, it's an awesome image of a wizard with a staff. ""Come join us"""
Mainnet
Short for main network or main layer of a blockchain. The main layer 1 blockchain, as opposed to a testnet or layer 2 solution. Layer 1 of a blockchain where actual transactions occur, rather than other associated test networks such as signet and testnet. Mainnet coins such as ETH and BTC have monetary value and can be traded on the blockchain.
Market Cap
The total value of all the coins that have been mined. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin.
Master Node
A blockchain node that verifies and relays transactions, stores the blockchain’s complete history and may participate in voting, governance of the blockchain, and other special operations. Master nodes generally operate on a collateral-based system, similar to a Proof-of-Stake protocol.
Mempool
Memory pool. A small database of pending transactions on a blockchain. It can create a very long wait. One interesting result of the mempool is MEV - Miner Extracted Value, where network miners can re-order transactions in the mempool for their own profit.
Metaverse
A theoretical or emergent networked online space with digitally persistent environments that people inhabit, as avatars, for synchronous interactions and experiences, accessing the shared virtual space through virtual reality, augmented reality, game consoles, mobile devices, or conventional computers.
MEV Miner Extracted Value
Ethereum miners lurk in the mempool looking for large trades and re-order transactions in the mempool for their own profit.
Mining
The process of mining is generally used in reference to a type of distributed consensus mechanism called Proof of Work. Mining means verifying transactions, organizing them into blocks, and then adding blocks to the blockchain often in exchange for a reward. In a Proof of Work system, this is the process of verifying transactions, organizing them into blocks, and then adding blocks to the blockchain. "
Minting
Ethereum miners lurk in the mempool looking for large trades and re-order transactions in the mempool for their own profit.
Mods/ Moderator
Moderator of chat channels to ensure a safe place for genuine discussion.
Mooning
Refers to an asset rising so high in value it reaches the moon.
Multiple Signature Wallet
A crypto wallet that requires two or more signatures to make a transaction.
Multisig
Ideal for DAOS that requires multiple people to sign things before conducting a course of business.
N
NFA
Not Financial Advice.
NFT
Non-fungible token. Digital certificate of authenticity is used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.
NFT Domains
Domain names minted on the blockchain which allow people to govern their own data, set their Web3 username, take control of their digital worlds, and harness the power of the internet.
NGMI
Not Going to Make It.
Nick Szabo
One of the founding fathers and pioneers of cryptocurrency. He developed the concept of smart contracts and created the precursor to Bitcoin called BitGold.
Nocoiner
Someone who does not hold any cryptocurrencies.
Node
Any device connected to a blockchain network. Different nodes have varying levels of responsibility, and may help validate transactions, store the blockchain’s history, relay data, and perform other functions. Because blockchains are distributed peer-to-peer networks, nodes come together to create the network’s infrastructure. Each node supports the blockchain by validating transactions that are made. There is no monetary reward for running a node, it's considered a noble pursuit for any crypto enthusiast.
Non-fungible
Unique; not interchangeable. This can be due to its properties, production date or any number of unique aspects. A house, diamonds, trading cards, or artwork are examples of non-fungible assets. Currency IS fungible because $5 can be traded with $5 and no one is at a disadvantage.
Non-fungible token
Digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.
Nonce
Number only used once. All blocks within a blockchain feature an encrypted number only used once, or hashed. Blockchain miners use computers to solve the mathematical computations to determine this nonce, receiving a reward for uncovering the solution.
Noob
Newbie. Everyone is a newbie once.
O
Off chain
When digital data is stored off a blockchain, for example on a central server, it is considered off-chain. Some NFT projects store the data of their projects this way on decentralized servers like IFPS(Interplanetary File System), but it can incur large long-term costs and be at risk if the server goes down.
On chain
A transaction occurs when the blockchain is modified and verified on the public ledger. On chain data is data that is stored on the blockchain, as opposed to centrally or on IPSF(Interplanetary File System).
Open Edition
An NFT collection has no limits to the amount of NFTs that can be minted. Rather than utilizing the rarity that 1of1 NFTs or limited edition collections have, this could be a limited time offer or end after a goal is reached.
Opensea
The largest most decentralized NFT marketplace.
Oracle
A service supplying smart contracts with data from the outside world. Smart contracts are unable to access data that exists off-chain, so they rely on oracles to retrieve, verify, and provide external information. (E.g. Chainlink)
P
P2P
Peer to Peer. A distributed network of two or more computers that interact directly without a central server or entity.
Paper hands
An individual who sold an asset as its price was falling. One with paper hands is supposed as weak and not able to stomach the volatility of the market.
Peer-to-peer
A distributed network of two or more computers that interact directly without a central server or entity.
PFP
Profile Picture.
POAP NFT
Proof Of Attendance Protocol NFT. These can be given to attendees of an event, in the form of a virtual or physical POAP. Utility can be added to them as they are collected. Like a digital stamp on your Web3 passport.
PoS
Proof of Stake. Consensus mechanism that requires nodes, called validators, to stake a set amount of cryptocurrency on the blockchain in order to verify transactions and mint blocks. If a validator approves fraudulent transactions, then a portion of their stake will be slashed.
POW
Proof of Work. Consensus mechanism that requires miners to complete complex mathematical puzzles in order to verify transactions and mint blocks. When a miner correctly solves a puzzle, they gain access to mint the next block and receive the corresponding block reward and transaction fees.
Pre-mine
When crypto or blockchain based tokens are created ahead of a public launch. These can be used for early investors in a project or as a payment for the organization.
Price Discovery
When a coin or asset breaks it's all time high and enters the space known as Price Discovery.
Private key
An alphanumeric passcode to access funds and authorize transactions. Because they are hard to memorize wallets provide a seed phrase or recovery key that is easier to remember. There is never a valid reason to share your private key or seed phrase with anyone.
Proof of Attendance Protocol NFT
These can be given to attendees of an event, in the form of a virtual or physical POAP. Utility can be added to them as they are collected. Like a digital stamp on your Web3 passport.
Proof of Stake
Consensus mechanism that requires nodes, called validators, to stake a set amount of cryptocurrency on the blockchain in order to verify transactions and mint blocks. If a validator approves fraudulent transactions, then a portion of their stake will be slashed.
Proof of Work
Consensus mechanism that requires miners to complete complex mathematical puzzles in order to verify transactions and mint blocks. When a miner correctly solves a puzzle, they gain access to mint the next block and receive the corresponding block reward and transaction fees.
Protocol
The foundational software layer of a program. Protocol has become a general term used to refer to both layer 1 blockchain networks and the layer 2 applications built on top of them — Bitcoin, Ethereum, Uniswap, and Lightning Network can all be considered protocols.
Public key
A public key is similar to a bank account number. A public key is used to point to your wallet address, this is an alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send digital assets to your wallet via your public key, but only you can access your wallet’s contents by using the corresponding private key.
Pump and dump
Manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. This is often done so assets can be sold at a high value for the orchestrators of the scam.
R
Raids
When Web3 enthusiasts all jump onto a social to tag an influencer or boost a post or posts to pump views on a project. The influx in posts and comments can really get a community engaged and believing in the project. To heavily promote a cryptocurrency or NFT collection in an effort to raise its price and adoption. Usually done by spamming on socials or chat groups.
Rarity
The value of an NFT is often judged on it's rarity.
Recovery Phrase
AKA Seed Phrase or Secret Recovery Phrase. A set of words that represents your private keys and they authenticate and encrypt your crypto wallet. They are 12-24 english words that all of your assets are connected to. There is never a reason to share your recovery phrase with anyone.
Rekt
Wrecked. When someone has a big loss.
Rollup
A Rollup takes tens, hundreds, or thousands of transactions off the blockchain, and rolls them up into one single transaction to be placed back on the blockchain. It is a scaling solution and because it is more efficient, it results in fast and or less expensive transactions/ decreased gas fees.
Rug pull
A scam where a crypto project takes the funds that have been invested and runs. Happens when someone is able to sell a large portion of the circulating supply at once.
Rugged
A victim of a rug pull.
S
Seed Phrase
AKA Secret recovery phrase or Recovery phrase. A master password to access a crypto wallet. A set of words that is used to represent your private keys and they authenticate and encrypt your crypto wallet. In the form of 12-24 random english words. All of you assets are connected to this. Never share your seed phrase with anyone.
Shill
To heavily promote a cryptocurrency or NFT collection in an effort to raise its price and adoption. Usually done by spamming on socials or chat groups.
Shitcoin
A cryptocurrency with bad fundamentals and no good use cases.
Short Position
A Short Position means that the trader believes a price will drop and sells their assets.
Slippage
The price of a cryptocurrency may change between the time an order is placed and the time that order is ultimately filled. Slippage is the difference between a cryptocurrency’s quoted price and the price that a trade actually executes at.
Smart Contract
Self-executing code deployed on a blockchain, designed to autonomously execute agreements independently of third parties. Smart contract code typically acts according to conditional statements (“if/then”), executing a predetermined action when a predetermined source asserts that the contract’s antecedent condition(s) obtains.
Stablecoin
A type of cryptocurrency designed to have low volatility, and so maintain a stable market price. Mechanisms for maintaining a stable price vary.
T
Testnet
An environment that mimics a mainnet Blockchain. Used to test network upgrades and smart contracts before deploying them on the mainnet.
Token
Unlike a coin, a token is a digital asset created on an existing blockchain. Tokens can be used to represent digital and physical assets, or used to interact with dapps. (E.g. Link, UNI, AAVE)
Txn Hash
Short for transaction hash, or transaction ID. This is a unique identifier used to represent a specific transaction.
V
Vaporware
A project that is announced and marketed but never actually materializes.
W
Wei
The smallest denomination of ether, named after cypherpunk and cryptocurrency pioneer, Wei Dai.
