web 3 glossary

Glossary

THIS is aN A-Z glossary of technology terms related to web 3, metaverse, artificial intelligence, augmentED reality, machine learning and Software as a service.

Airdrop
An airdrop when is when an NFT company or project sends or ‘drops’ an NFT into a crypto wallet such as metamask. NFT airdrops are used for marketing and brand awareness and often have some utility or function tied to the NFT.  

Alpha
In the crypto space alpha refers to someone having insider information on a project.

Alt Coins
Bitcoin, the first and most well-known cryptocurrency, was released in 2009. Since then, there have been thousands of altcoins, or alternative coins, created. While some alt coins are clones or forks of Bitcoin with minor changes to the code, others are completely unique and offer their own blockchain and features. The first major alt coin was Ethereum.  

Anon
Short for anonymous person or identity not revealed. Video has been a powerful conduit to revealing and verifying identity online, and blockchain technology will extend that further into virtual worlds.

Ape in
When an investor in the crypto space pours a of capital into a project without first doing enough research. The term is derived from the meme “apes together strong’.
 
Artificial Intelligence
Artificial intelligence (AI) is the theory and development of computer systems that can perform tasks that require human intelligence, comprehension and understanding. This can be done through natural language processing (NLP), machine learning and natural language understanding (NLU).

Augmented reality
Augmented reality is a technology that superimposes a computer-generated image on a user’s view of the actual world, providing a composite view that often includes perceptual information. This technology can be used with glasses, visors, goggles or smartphones.

Avatar
An avatar is a digital representation of a person, pet or character in internet games or forums, and in virtual reality. The fashion industry is using digital avatars to onboard new users to web 3.  

Bitcoin
Also known as BTC, refers to the first cryptocurrency which launched in 2009.

Blockchain
A blockchain is a digital ledger (or recording) of all cryptocurrency transactions. A block is a section in the chain where the data is stored and secured.  Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.

Bluechip
In the crypto space bluechip refers to projects which are seen as leaders with high value and investment potential. Sandbox and Decentraland are considered bluechip metaverse projects for NFT land acquisition.

Bot
Automated software for engineering different functions including trading cryptocurrencies, automating tasks and messages in platforms like discord and providing customized answers in support chats.

BTD
Short for buy the dip in cryptocurrency investments.

Buidl
The Buidl movement, a respelling of the word build, believes that instead of just accumulating or trading cryptocurrencies, people should start actively contributing to help adoption and improve the ecosystem.

Consensus Mechanism
The consensus mechanism is a methodology used to achieve agreement, trust and security in decentralized computer networks. In the context of NFTs, blockchains and cryptocurrencies, common consensus mechanisms are proof of work and proof of stake.
Creator Economy
A class of businesses that content creators, curators, and community builders can use to monetize their creations.

Cryptocurrency
A digital currency is one that is designed to work as a means of exchange, where transactions are verified and records kept by a decentralized computer network that uses cryptography, rather than going through a centralized, trusted authority. This type of currency allows for more secure and efficient transactions.

Crypto Artist
A creator who publishes their work first as an NFT, and then distributes, markets and sells it.  An NFT makes the creator a complete owner and allows them to contract via smart contracts who owns the work in addition to other programmable functionality.  

Cryptography
Secure communication involving the encoding and decoding of information using a computer. 

Crypto Wallet
A wallet is a digital device that stores the public and/or private keys for cryptocurrency transactions. This allows you to send, receive, buy, sell, or swap cryptocurrencies and NFTs. You can also use it to sign digital information. A private key is different than a wallet address and should never be shared.

Decentralization
The shift from a centralized, trusted authority to a distributed network for control and decision-making.  Power is distributed across many people (or machines) instead of through a single entity.

Decentralized Applications (dApps)
Dapps are computer programs that operate on a decentralized network, using smart contracts to facilitate transactions. They are often open source, meaning anyone can contribute to their development or create their own version of the dapp. Dapps can be used for a variety of purposes, from financial applications to games.

Decentralized Autonomous Organization (DAO)
A collective that is governed by its members and not by a central government or power — all governance is done as part of a group.

Decentralized Exchange (DEX)
In the crypto space alpha refers to someone having insider information on a project.

Decentralized Finance (DeFi): 
The use of smart contracts on a public blockchain enables peer-to-peer financial services without reliance on intermediaries such as brokerages, exchanges or banks. In DeFi banking transactions can be executed without fees or approvals. Decentralized Finance gives the ability to lend, trade and borrow cryptocurrency via publicly viewable code which automatically stores and verifies transactions.

Degen
Short for degenerate in the crypto space. A person who invests in the riskiest projects often without proper research.

Diamond Hands
Expression originally derived from diamonds being created under extreme pressure, diamond hands refers a person (or company) holding onto a risky NFT project or cryptocurrency project despite pressure to sell. A classic example is investors who purchased the Luna cryptocurrency and held onto it as it plummeted from over $100 to zero.

Digital Identity
A person, organization, application or device’s online or networked identity that is used by computer systems or applications to represent an external agent.

Digital Twin
A digital representation of a physical object or process that is identical to the real-time version.


Distributed Ledger
A ledger or database of replicated, shared and synchronized digital data that is decentralized and spread across multiple sites, countries or institutions without using a central administrator.

Distributed Ledger Technology (DLT)
Blockchain technology which enables simultaneous access, validation and record updating in an immutable manner across a geographically diverse network made up of multiple entities. This technological infrastructure provides a secure way to store data that can be accessed by anyone with permission.

Doxxed
When the real identity of the members of a team is a revealed to build credibility. Being doxxed is now considered a standard requirement for web 3 projects to receive investment capital. Projects which try to stay anonymous or hide behind avatars are no longer consider serious or real.

Drop
The initial launch or release of a new NFT project.

DYOR
Pronounced like Christian ‘Dior’ DYOR stands for Do Your Own Research. Often used as a loose disclaimer for investments in NFT projects.

Sandbox
A sandbox is the general definition for a virtual game that allows players to explore and interact with the environment in a nonlinear way. There are no set objectives or goals, and the sandbox virtual game world is open-ended. This type of game gives players a great deal of freedom, and they are able to experiment and create their own experiences. The sandbox genre has its roots in early text-based games such as Zork and Adventure, but it has since been popularized by modern titles such as Minecraft and Grand Theft Auto. While sandbox games can be found on all platforms, they are particularly well-suited to open-world exploration on PC and console. In recent years, the sandbox genre has seen a resurgence in popularity, due in part to the success of games like Fortnite and PlayerUnknown’s Battlegrounds.

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