The blockchain space has grown so big that wrapping your head around it will take effort and time. So to make you understand some of the terms you will encounter while diving deep into the techy world, we have created a glossary of terms and what they mean. We will keep updating the list as a new word always comes up from the space. The blockchain space has grown so big that wrapping your head around it will take effort and time. To make you understand some of the terms you will encounter while diving deep into the techy world, we have created a glossary of terms and what they mean. We will keep updating the list as a new word always comes up from the space.
1. HODL
First on the list is HODL because it’s one of the earliest to come out of cryptocurrency early adopters. Back in the day on the BitcoinTalk Forum, a particular trader believed to have been drunk at the time of posting wanted to encourage other traders to HOLD on to their Bitcoin but misspelled it to HODL. It has stuck with the community to date.
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2. FUD
Several times you will bump into someone mentioning FUD in a project. FUD stands for “Fear, Uncertainty and Doubt” concerning any news. Spreading FUD is a sin if you have yet to research a project and understand the whole picture thoroughly. Many communities work hard to counter FUD since it dramatically impacts a project’s reputation.
Web 3.0, also known as the Semantic Web or the Decentralized Web, is the next generation of the internet that aims to provide a more intelligent, decentralized, and interconnected web experience. Unlike the current web, which is largely focused on presenting information in a static, human-readable format, Web 3.0 is designed to facilitate machine-to-machine communication and enable the automation of tasks by using artificial intelligence and other advanced technologies.
4. WAGMI
Another word that always flies around the Blockchain space is WAGMI which stands for “We’re All Going to Make It.” This is a way to motivate others to be resilient through tough times. The opposite is, however, NGMI which stands for “Not Going to Make It,” which is usually mentioned after a failed investment or choice.
5. DYOR
With a lot of projects in the Blockchain space, there are bound to be a lot of project hypes that praise a project to get attention. In that regard, “Do Your Own Research.”
6. DeFi
DeFi stands for Decentralized Finance. It refers to a system of financial applications and services built on top of blockchain networks, such as Ethereum, that operate in a decentralized, transparent, and trustless manner. These applications and services aim to provide financial services such as lending, borrowing, trading, and investing without the need for traditional financial intermediaries like banks or brokerages. DeFi allows anyone with an internet connection and a cryptocurrency wallet to access these financial services, regardless of their location or financial status.
7. NFT
Non-Fungible Tokens. These are unique digital assets that are verified on a blockchain network, such as artwork, music, or collectibles. They are often used to represent artwork, music, collectibles, or other digital creations, and the blockchain guarantees their authenticity. NFTs have gained popularity recently, with some selling for millions of dollars at auction.
8. Smart Contracts
Smart contracts are self-executing programs that operate on a blockchain network. They are often used to automate the execution of agreements between two or more parties, such as a contract for the sale of goods or services. Once the terms of the contract are met, the smart contract automatically executes without the need for intermediaries.
9. DApp
DApps(Decentralized Applications) are applications that run on a blockchain network, allowing them to operate in a decentralized and trustless manner. They are often used to provide services such as voting, gaming, social networking, or financial transactions without relying on a central point of control.
10. DAO(Decentralized Autonomous Organizations)
Decentralized Autonomous Organizations are organizations(companies, Mutual Funds or Cooperation) that operate through rules encoded as computer programs called smart contracts, which are stored on a blockchain network. They are designed to be transparent, decentralized, and democratic, allowing members to have a say in the decision-making process.
11. CBDC
CBDC stands for Central Bank Digital Currency, which is a digital form of a country’s fiat currency that is issued and backed by the central bank. It can be used as a payment, store of value, and unit of account, just like a physical currency. CBDCs are designed to be secure, efficient, and accessible and could offer benefits such as lower transaction costs, faster settlement times, and increased financial inclusion.
In conclusion, blockchain technology has introduced a whole new set of buzzwords that are increasingly being used in the world of Finance, technology, and beyond. From “Web3” to “HODL,” these terms have become an integral part of the blockchain community’s lexicon, representing everything from the next generation of the internet to long-term investment strategies. While some of these buzzwords may seem confusing or overwhelming initially, they each represent an important aspect of blockchain technology and its potential to change how we transact, interact, and live our lives. By understanding these buzzwords and their underlying concepts, we can gain a deeper appreciation for the power and potential of blockchain technology and its transformative impact on our world.
