Common Web3 Terminologies

Everyday Web3 terminologies

  • Blockchain: A distributed digital ledger that records transactions across a network of computers.
  • Decentralized: A system or application that is not controlled by any single entity, but is distributed across a network of computers.
  • Smart Contract: Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
  • Protocol: Set of smart contracts or software which enables or facilitates different tech solutions and on which other developers can build on top of.
  • dApp (Decentralized Application): An application that runs on a decentralized network, such as a blockchain.
  • IPFS (InterPlanetary File System): A decentralized system for storing and sharing files that uses content-addressing to uniquely identify files.
  • DAO (Decentralized Autonomous Organization): An organization that is run by rules encoded as computer programs on a blockchain.
  • NFT (Non-Fungible Token): A unique digital asset that is stored on a blockchain, such as artwork or collectibles.
  • Web3: The next generation of the internet, where decentralized technologies such as blockchain, smart contracts, and cryptocurrencies are used to create a more open and transparent web.
  • Wallet: Random set of string, numbers that form a pseudo-anonymous account for a Web3 user. Similar to usernames in non-web3 apps like Google, Apple, Twitter etc.
  • Private Key: Random set of strings, numbers that form a cryptographic proof which only the user or the wallet the user uses holds. Similar to passwords in non-web3 apps like Google, Apple, Twitter etc.
  • Gasless: Refers to interaction on a blockchain or a network that doesn't incur any fees.