Web3 Glossary
A
Airdrop
Free distribution of tokens to wallet addresses as a reward or promotion.
Altcoin
Any cryptocurrency that is not Bitcoin.
AMM (Automated Market Maker)
Decentralized protocol that uses algorithms to provide liquidity.
B
Blockchain
A decentralized, distributed ledger technology that records transactions.
Bridge
Allows tokens to move between different blockchain networks.
Burn
The act of permanently removing tokens from circulation.
C
Coin
A digital asset that runs on its own blockchain.
Consensus
Mechanism by which blockchain nodes agree on a single version of truth.
Crypto Wallet
Software or hardware used to store private and public keys for crypto transactions.
D
DAO
Decentralized Autonomous Organization governed by smart contracts and token holders.
DApp
Decentralized application that runs on a blockchain network.
DEX
Decentralized Exchange for peer-to-peer cryptocurrency trading.
E
ERC-20
A standard for fungible tokens on the Ethereum blockchain.
Ethereum
A decentralized platform that enables smart contracts and DApps.
Explorer
A tool to view blockchain transactions and addresses.
F
Fiat
Traditional government-issued currency like USD, EUR, PKR.
Fork
Change to a blockchain’s protocol causing a split in the chain.
FOMO
Fear Of Missing Out; often seen in rapid crypto market movements.
G
Gas
Fee required to perform transactions or run smart contracts on Ethereum.
Governance Token
Token that gives holders voting rights in a DAO or DeFi project.
Genesis Block
The first block of a blockchain.
H
Hash
Cryptographic function that converts input data into fixed-length output.
HODL
Slang for holding onto cryptocurrency rather than selling it.
Hard Wallet
Offline physical device used to store cryptocurrency securely.
I
ICO
Initial Coin Offering; a way for startups to raise capital by issuing tokens.
Immutable
Once data is recorded on the blockchain, it cannot be changed.
Interoperability
The ability for blockchains to work together and share information.
K
KYC
Know Your Customer – identity verification process for compliance.
Key Pair
A set of public and private keys used in crypto wallets.
Keystore File
Encrypted file used to store a private key securely.
L
Layer 1
The base blockchain network like Ethereum or Bitcoin.
Liquidity
The ease with which a digital asset can be bought or sold.
Lightning Network
Layer 2 solution for faster Bitcoin transactions.
M
Metaverse
Virtual world powered by blockchain, VR, and AR.
Mining
The process of validating transactions and adding them to a blockchain.
Multisig
Wallets that require multiple signatures to authorize transactions.
N
Node
A computer connected to a blockchain network that helps maintain it.
Nonce
A number used once for cryptographic purposes in transactions.
NFT
Non-Fungible Token; a unique digital asset representing ownership of digital or physical items.
O
On-chain
Transactions or data that are recorded on the blockchain.
Oracle
Service that connects real-world data to the blockchain.
Off-chain
Data or actions that occur outside of the blockchain environment.
P
Private Key
Secret key used to sign transactions and prove ownership of crypto.
Public Key
Used to receive crypto and verify digital signatures.
PoS (Proof of Stake)
Consensus mechanism where validators are chosen based on token holdings.