Welcome, digital explorer! The vast realm of Web 3 and the crypto universe is not just changing the tech landscape; it’s creating a language of its own. Whether you’re an enthused cryptocurrency investor or a curious CEO looking to understand the fabric of the decentralized future, knowing Web 3 lingo will be as vital as understanding ‘SEO’ in the early 2000s.
In this article, we’ll take you through a linguistic adventure into terms that are currently shaping and defining the Web 3 space. Here’s a first-class ticket to the lexicon of the future!
Learn the Lingo
Before you can dance the tango, you need to learn the steps. Similarly, immersing yourself in the digital-jargon du jour is the first step in understanding the cryptoverse.
The Types of Web 3 Jargon
Web 3 lingo can be broadly categorized into colloquial and technical terms, with traders’ jargon forming the sharp edge of the vocabulary sword.
Colloquial – More Than Just Slang
Colloquial terms arise from the community and often serve as cultural identifiers. One such colloquialism, ‘AMA’ (Ask Me Anything), is now a standard event format where community members can directly ask questions to project founders or influential figures in the space. But AMA isn’t just polite request; it’s a key part of community engagement, a marketing tactic, and sometimes a lightning-rod of controversy.
Technical – The Nuts and Bolts
The heart of Web 3 jargon lies in the technical terms. In this section, we’re going to perform a ‘TA’ (Technical Analysis) on a few key terms that are the Fibonacci sequences of the blockchain world. One such sequence brings us to the question, “What’s a Fibonacci?” That brings us to the first term:
Fibonacci: A series of numbers in which each number (Fibonacci number) is the sum of the two preceding numbers. These ratios are often used in technical analysis to predict upward or downward price movements in financial markets.
Traders Wanta Bes Terms
The ‘Wanta-Bes’ are the fresh faces in the trading community, eager to absorb as much information as possible. For those just starting, here are a few terms that will be NFA (Not Financial Advice) and urge you to ‘DYOR’ (Do Your Own Research).
NFA – Not Financial Advice
NFA is a quick disclaimer usually found at the bottom of tweets, blogs, and even casual conversations. It’s a thin line that professionals walk to share their thoughts without assuming responsibility for any financial losses incurred from following their musings.
DYOR – The Crucible of Trust
DYOR is the mantra of the trading world. Don’t take what you hear, even from the most trusted source, as gospel truth. Verify it! That means wading through white papers, scrutinizing reddit threads, and understanding the why behind a trade as profoundly as the how.
Trading Vehicles – Driving Profits
It’s one thing to understand the risks and strategies; it’s another to know what tools to use. And in Web 3, just like with any investment vehicle, you have to know how to store, trade, and assess your digital assets.
Cold Storage: A method of storing cryptocurrencies that does not rely on any internet connection, making it less susceptible to hacking. An example would be a wallet stored on an offline computer known as an air-gapped computer.
Hot Storage/Exchanges: On the flip side, hot storage refers to any cryptocurrency wallet that is connected to the internet. It might be more convenient for trading, but it exposes your assets to online vulnerabilities.
On-Ramp/Off-Ramp: These are crucial entry and exit points to the cryptocurrency ecosystem. These can be the gateways to purchase a cryptocurrency with traditional fiat currency (on-ramp) and the reverse process (off-ramp).
Stablecoins: Digital assets that are pegged to less volatile assets, like fiat currency or commodities, to give stability to traders and investors. These don’t have the wild fluctuations of Bitcoin or Ethereum.
Terms Straight from the Blockchain
The blockchain isn’t just the currency; it is a chain of digital data that runs public ledgers of every transaction in a decentralized manner. Understanding these terms is akin to tracing your steps back to the roots of Web 3.
DAO – Decentralized Autonomous Organization
A DAO refers to an organization that is run through rules encoded as a computer program without any human intervention under the control of the organization’s members. These are the corporate structures of the future, allowing for decentralized decision-making.
Proof of Authority (PoA), Proof of Stake (PoS), Proof of Work (PoW)
These are different consensus algorithms used within blockchain networks to validate and authenticate transactions.
- PoA: A consensus mechanism that works on the basis of explained authority to validate a transaction.
- PoS: This algorithm assigns those with a significant stake in the underlying asset the responsibility of validating transactions and creating new blocks.
- PoW: The original consensus algorithm in a public blockchain and remains one of the most robust and secure ways to ensure trust in the financial system without relying on a centralized entity.
Nodes – The Life-Blood of Blockchain
The devices that communicate and store information on the blockchain are your nodes. These can be individuals, businesses, or banks, and are integral to keeping the blockchain network running.
A Cryptopedia at Your Fingertips
To truly absorb the language of Web 3, you have to keep a Cryptopedia nearby. And if you’re ready to build your own, start with these sources for more comprehensive glossaries and terminologies:
- CryptoCompare
- Investopedia’s Crypto Terms
- CoinMarketCap’s Glossary
In Summary
Learning the lingo might seem daunting, but it’s a crucial step in the exploration of this new, digital world. The jargon of Web 3 defines the interactions and transactions within it, making it an essential part of understanding the ecosystem. And with the BTC ETF, the rocket ship of interest has been spurred; it’s time to buckle up and learn the language of the cosmos as we inch closer to mainstream Web 3 adoption.
- CoinMarketCap’s Glossary
- Investopedia’s Crypto Terms