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Frequently used Web3 jargon explained. Now you can speak like a degen too (and understand them).

Glossary

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A

Airdrop - A marketing tactic in which crypto projects distribute their tokens to the wallets of their users in an effort to raise awareness and drive usage.

Alpha - Insider information or rumor on first mover advantages for a token or NFT transaction.

Altcoin - A relatively new cryptocurrency with a relatively moderate sized market cap.

Ape - The action of jumping in on a crypto or NFT purchase without much prior knowledge or research.

 

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B

Bagholder - The person left holding a worthless or significantly less valued position.

Bearish - Not having a positive outlook on an increase in price action.

Bitcoin - The first decentralized, peer-to-peer, digital money, launched in 2009 under the pseudonym 'Satoshi Nakamoto'.

Blockchain - A digital ledger that is publicly-accessible used to store and transfer information without the need for a central authority. The fundamental technology that underpins cryptocurrency protocols such as Ethereum and Bitcoin is blockchain technology.

Block Explorer - A tool for exploring information on a blockchain, such as transactions, wallet addresses, market capitalization, and hash rates.

Bridge - A protocol that facilitates communication across various blockchains and permits the exchange of data, coins, and other information between them.

Buidl - A frequent deliberate misspelling of "Build", following the example of the the term "HODL" in the cryptocurrency community.

Bullish - Synonymous with having a bull market mentality, which is the positive market outlook that an item or asset will appreciate in value. 

Burn - The act of taking tokens out of circulation in a cryptocurrency; typically, this is accomplished by transferring them to a wallet address that is unreachable. NFTs and other digital assets can be burned using the same procedure.
 

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C

CEX - Acronym for "Centralized Exchange".  Centralized Exchanges are regulated platforms facilitating digital asset trading through a centralized authority., Examples are Kraken, Gemini, and Coinbase

CeFi - Abbreviation for "Centralized Finance". Centralized Finance refers to companies or services  that are operated and controlled by centralized entities, typically a CEX.

Coin - Crypto-coins are native to its own blockchain. It functions as a store of value and medium of exchange within its ecosystem.

Collateral - Collaterals are assets or property that a borrower pledges to a lender as security for a loan.

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D

DAO - Acronym for "Decentralized Autonomous Organization". DAOs are blockchain-based organizations governed by smart contracts. They operate autonomously, transparently, and relies on token-based governance for decision-making

DApp - Abbreviation for "Decentralized Applications". DApps operate on a blockchain without a central server. It uses smart contracts and often tokens for secure, peer-to-peer interactions. Examples include decentralized finance platforms and blockchain-based games.

DeFi - Abbreviation for "Decentralized Finance". It utilizes blockchain technology and smart contracts to create open and decentralized financial systems. It includes lending, borrowing, decentralized exchanges (DEXs), and uses tokens for various purposes.

DEX - Acronym for "Decentralized Exchange. Decentralized Exchanges enable direct peer-to-peer cryptocurrency trading on blockchain networks without an intermediary. Users retain control of their private keys, trades occur through smart contracts, and DEXs are non-custodial

Diamond Hands - Refers to investors who hold onto their assets with unwavering conviction, resisting the urge to sell despite market fluctuations. The term signifies resilience and a long-term commitment to investments.

DYOR - Acronym for "Do Your Own Research".

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E

Ethereum - Ethereum is a decentralized, open-source blockchain platform that enables the creation and deployment of smart contracts and decentralized applications (DApps). It was proposed by Vitalik Buterin in late 2013 and went live on July 30, 2015.

EVM - Acronym for "Ethereum Virtual Machine". It is a decentralized runtime on the Ethereum blockchain for executing smart contracts. It ensures consistent, deterministic execution and uses "gas" as a unit for computational resource payment. Essential for Ethereum's decentralized smart contract functionality.

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F

Few - Abbreviation for "Few will understand". Refers to the perspective that those involved in cryptocurrencies are still in their infancy and will become extremely wealthy once widespread adoption occurs.

FOMO - Acronym for "Fear of missing out". Refers to the fear of missing potential profits, prompting individuals to make hasty decisions, such as purchasing assets at higher prices, due to the worry that prices will continue to rise, and they will miss out on potential gains.

 

Fractionalize - Refers to the process of locking an NFT into a smart contract, and then breaking it into smaller portions which are issued as fungible tokens. As a result, ownership costs are reduced and a community is able to own artwork and other digital assets.

Front Running - The act of placing a transaction ahead of others with the express purpose of profiting from the subsequent orders. As it creates more profitable arbitrage possibilities than would have been possible otherwise, front-running is very popular.

FUD - Acronym for " Fear, Uncertainty and Doubt". Refers to the dissemination of negative or misleading information to create fear and doubt, particularly in financial markets or technology communities. The goal is often to influence behavior or manipulate

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G

Gas - The cost paid by a user to conduct a transaction or execute a smart contract on the Ethereum blockchain. The complexity of the transaction and the network's current demand will determine this cost.

GM - Acronym for "Good Morning". Common greetings within the various crypto communities
 

GMI - Acronym for "Gonna Make It". Popular phrase used on X.com to show support for a cause or a person.

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H

HODL - A deliberate misspelling for 'Hold,' nowadays commonly taken to mean 'Hold on for dear life,' originated on the defunct Bitcointalk.org forum. User GameKyuuby mentioned that he was 'HODLING' his bitcoins as the price decreased. This typo quickly gained popularity.

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I

ICO - Acronym for " Initial Coin Offering". An Initial Coin Offering is the process of raising money for a cryptocurrency project by selling tokens to the general public. Crowdfunding methods like initial public offerings (IPOs) are comparable to ICOs.

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J

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K

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L

Lambo - Abbreviation for "Lamborghini". Owning a Lamborghini is often seen as a symbol of success. Hence, a popular phrase in degens and crypto circles is 'wen lambo?'—commonly used to ask about the anticipated timeline for achieving financial success.

Liquidity - A measurement of an asset's ease of purchase, sale, or trading on an exchange or in a particular market.

Liquidity Pool - Refers the total funds contributed by users, this term pertains to the amount secured by a smart contract to facilitate trading on a DeFi platform. In decentralized exchanges and lending protocols, where there is no central bank or other entity to provide liquidity, users are responsible for supplying it themselves.

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M

Mainnet - This refers to the primary and operational Layer 1 blockchain network, sometimes known as the "main network," as opposed to a Testnet or Layer 2 solution.

Market Cap - The entire worth of an asset determined by its market value at the time. The market capitalization of a cryptocurrency is calculated by multiplying its circulating supply by the price of a single coin.

Metaverse - It is a virtual reality space where users engage in immersive three-dimensional environments, interact through avatars, and connect across various virtual worlds. It includes persistent universes, cross-platform connectivity, and the potential for economic activities.

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N

NFT - Acronym for "Non-fungible Token". Refers to a digital certificate of authenticity that is used to identify and confirm who owns a specific digital or tangible item. NFTs cannot be exchanged for one another, in contrast to fungible tokens.

NGMI - Acronym for "Not gonna make it." This phrase is used to suggest that there is little prospect of value developing for a particular project or item. It can also be aimed against a specific person, usually one who has made a bad investment or deal.

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O

Oracle - A service designed to furnish smart contracts with external data. Due to their inability to access off-chain data directly, smart contracts rely on oracles to retrieve, validate, and deliver external information.

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P

Paper hands - An individual who typically sold stocks or cryptocurrencies, often at a loss, while their prices were declining. The term implies that someone with paper hands is considered frail and unable to endure market turbulence.

PFP - Acronym for "Profile Picture".

PoS - Acronym for "Proof of Stake". It is a consensus algorithm in blockchain where validators create new blocks and validate transactions based on the cryptocurrency they hold as collateral. It's an energy-efficient alternative to Proof of Work (PoW)

PoW - Acronym for "Proof of Work". It is a blockchain consensus algorithm where miners compete to solve puzzles to add new blocks. It's resource-intensive and rewards the first successful miner with cryptocurrency. Bitcoin uses PoW for security.
 

Protocol - Refers to set of rules and standards that define how different components of a blockchain network interact with each other. It encompasses the rules for validating transactions, reaching consensus among network participants, and managing the overall operation of the blockchain.

Private Key - The alphanumeric code in question operates as a blockchain wallet address, akin to a bank account number, facilitating the routing of transactions to the designated wallet. When other users possess your public key, they can send digital assets to your wallet. However, exclusive access to the wallet's contents is reserved for the owner and the associated private key.

P2P - Acronym for "Peer-to-Peer". It refers to a distributed network of two or more computers interacting directly without the need for a central server or other entity.

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R

Rekt- Refers to an internet slang term derived from the word "wrecked". It is used to describe a situation where someone or something has suffered a significant loss or defeat.

Rug/ Rug pull - The deceptive act where project creators intentionally withdraw funds, causing a rapid decline in its value and significant losses for investors.

Rollup - Refers to a scaling solution that batches numerous transactions off-chain and submits them to the main chain as a single transaction in an effort to increase transaction throughput and reduce fees.

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S

Sats - An abbreviation for "Satoshis"; the smallest Bitcoin unit, named after Satoshi Nakamoto. Representing 0.00000001 bitcoin, it is used to express smaller amounts in transactions, showcasing Bitcoin's divisibility and honoring its creator.

Seed phrase - Refers to a sequence of 12 to 24 words used as a backup for a cryptocurrency wallet. It's crucial for restoring access to the wallet's private keys and is essential in case of loss or device change.

Ser - Deliberate misspelling of the word "Sir". Commonly used in crypto communities.

Shill - The act of aggressively promoting something, often with exaggeration, to influence others to buy or invest. A person doing this is called a "shill." It may involve deceptive tactics like false testimonials or reviews.
 

Slippage - Refers to the disparity between the expected and actual execution price of a trade. It occurs in dynamic markets or low-liquidity conditions, potentially impacting the trade's overall cost and outcome.

Smart Contract - A self-executing code on a blockchain that enforces terms when specific conditions are met, allowing automated transactions in decentralized applications without intermediaries

Stablecoin- Refers to any cryptocurrency that is pegged to a reserve, like fiat currency, to minimize price volatility. It aims to provide the benefits of cryptocurrencies with the stability of traditional currencies.

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T

Testnet - A dedicated blockchain network for developers to test and experiment with new features and applications without affecting the main blockchain.

Token - A digital asset created and issued on a blockchain. These tokens can represent various assets, including cryptocurrency, real-world assets, or access rights to a particular service or platform.

TP - Acronym for "Take Profit". Commonly used in trading to describe the practice of setting a predetermined price level at which a trader plans to sell an asset to secure gains.

TPS - Acronym for "Transactions Per Second". Refers to the metric used to measure the processing capacity of a blockchain. it represents the number of transactions a network or system can handle in one second.

TVL - Acronym for "Total Value Locked". It is a metric used in decentralized finance (DeFi) to quantify the total value of assets that users have deposited or "locked" in a particular protocol or platform. It is a measure of the overall capital invested in a DeFi ecosystem and is often expressed in terms of cryptocurrency or USD.

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U

Up only - This phrase is a play on words, suggesting that the value of a cryptocurrency or other asset can only rise. This can also be used in a satirical manner to express one's bullish position towards an asset.

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V

Vaporware - Products that are announced and heavily promoted but never materialize or face significant delays. The term suggests overhyped or unfulfilled promises, and the products may not be delivered as expected.

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W

WAGMI - Acronym for "We Are Gonna Make It". A popular phrase of encouragement used to express optimism and solidarity within the cryptocurrency and trading communities.

Wallet- A tool for securely storing and managing cryptocurrencies. It stores private keys, enabling users to send, receive, and monitor their digital assets on a blockchain.

Wallet Address - A unique alphanumeric string linked to a cryptocurrency wallet, used for receiving funds on the blockchain. It serves as a public identifier for others to send cryptocurrencies to the wallet.

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