Web 3 has given rise to a slew of new buzzwords in tech. It might be difficult to keep up with everything if you are a newbie. Here's a list of a few such terms to get you started.
Web 3.0
Let's start with the obvious.
Web 3 is the new generation of web that we are transitioning into. Currently, most of the development and deployment happens in web 2.
Web 3 leverages blockchain and open source technologies.
Blockchain
Blockchain is the foundational technology upon which cryptocurrency systems such as Bitcoin and Ethereum are based.
It is a publicly accessible digital ledger that is used to store and transfer information without any centralized authority.
Airdrop
A technique in which crypto projects transfer their native tokens straight to their users' wallets in order to raise awareness and acceptance.
Consensus Mechanism
A method through which nodes on a blockchain reach an agreement on a transaction or network state.
Example: Proof of State, Proof of Work
DAO
Decentralized Autonomous Organization
These organizations are usually formed on blockchain and are open source. That means the power of these organizations doesn't particularly lie with a centralized unit instead it is governed by its users.
Dapp
Decentralized Application
They are open-source applications built on blockchain and maintained by the users and contributors in exchange for token rewards.
Bitcoin
The first decentralized, peer-to-peer digital currency was established in 2009 under the pseudonym Satoshi Nakamoto.
ETH
Ethereum aka eth is an open-source blockchain-based platform and has a wide range of applications. It is also one of the famous cryptocurrencies currently in the market.
Proof of Work (PoW)
In simple words, it is a mechanism in which miners must solve challenging mathematical computations in order to validate transactions and mint blocks. When a miner solves a problem properly, they acquire permission to mint the next block and collect the matching block reward and transaction fees.
Proof of State (PoS)
It is a mechanism that makes validators, or nodes, stake/deposit a certain amount of cryptocurrency on the blockchain in order to validate transactions and mint blocks. If a validator confirms fraudulent transactions, their stake will be reduced.
Minting
The validation process of any ownership or registries into the blockchain.
Mining
This is the process of confirming transactions, arranging them into blocks, and then adding blocks to the blockchain in a Proof of Work system.
NFT
Non Fungible Tokens
These are non-transferable or non-interchangeable certificates given to assets(digital or physical) after they are minted successfully.
Smart Contract
A smart contract is computer software that sets and enforces a set of blockchain rules. Once a smart contract is launched, its conditions are virtually impossible to amend or delete, making it irreversible.
WAGMI
"We're All Gonna Make It," a popular phrase among Web 3 and cryptocurrency peers, denotes a hopeful perspective.
That's it for now! These are some key phrases to understand if you want to break into the Web 3.0 space. It's okay if you didn't totally comprehend everything; as you go further and deeper into this area, you'll gain familiarity. WAGMI 🚀