ABC's of web3

Oracle

An oracle is any application that provides data from outside the blockchain or vice-versa. Blockchains can only access data available on their own chains, and so need oracles to add outside or off-chain data.

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NFT

Non-fungible Tokens or NFTs are blockchain tokens, digital proof of ownership over a blockchain-secured digital asset.

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HODL

Investment term for holding a coin.

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Cryptocurrency

Cryptocurrency is a digital currency secured on a blockchain. Bitcoin is the most common example of this. The blockchain uses cryptographic proof to secure the currency.

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Private Key

A cryptographic key that is used with an asymmetric (public key) cryptographic algorithm. The private key is uniquely associated with the owner and is not made public. The private key is used to compute a digital signature that may be verified using the corresponding public key.

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KYC

Identity process to match up your gov ID with your account as part of the anti money laundering initiatives.

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Gas Fees

A gas fee or transaction fee is the colloquialized term for the price of completing a transaction on any blockchain, originating from the term used on the Ethereum blockchain. A gas fee is effectively payment for the electricity and validation work done to have a transaction recorded on the blockchain.

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Satoshi

The creator of the first cryptocurrency and blockchain, Bitcoin

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Up Only

Investment thesis of when the assets will rise continuously

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ICO

An Initial Coin Offering (ICO) is where developers of a cryptocurrency will release a set amount of tokens to crowdfund a project.

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Tokenomics

Tokenomics, also known as token economics, is an emerging field concerned with the economic properties of agent-driven systems that use cryptographic tokens that are typically created and managed on blockchain-based distributed ledgers.

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Defi

"Decentralized Finance, term for P2P fintech services on Ethereum Blockchain"

- Ali Jamal, CEO of Cryptos Consultancy

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Ledger

Hardware (real life and tangible) wallet for your cryptocurrency.

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Exchange

An exchange is an application that allows the exchange of cryptocurrencies into other currencies. These take two main forms: Centralized Exchanges (CEX) where the tokens go from one user to another through one main body (Coinbase, Binance), or decentralized Exchanges (DEX) where the transactions are peer-to-peer through the pooling of tokens into an AMM (Uniswap, Curve).

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Zero Knowledge Proof

Zero-knowledge proof or zero-knowledge protocol is a method by which one party can prove to another party that a given statement is true, while avoiding conveying to the verifier any information beyond the mere fact of the statement's truth.

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Vaporware

Software or hardware that has been advertised but is not yet available to buy, either because it is only a concept or because it is still being written or designed.

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Yield Farming

Yield farming is a way to earn rewards by depositing your cryptocurrency or digital assets into a decentralized application (DApp). Yield farming is a colorful term to describe a widespread practice in traditional finance; namely, earning rewards (interest) on assets.

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Wallet

Crypto wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies.

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Fiat

Fiat is any Central Bank-issued currency, such as the euro, dollar, or yen.

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Metaverse

Fully digital space

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Rekt

When your portfolio is destroyed

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Blockchain

The blockchain itself is a digital record of transactions documented on blocks. This record is copied across a decentralized network of computers where each computer is connected to one another instead of going through an internet server.

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Quantum Computing

Current computers, often referred to as classical computers, consist of bits that are either 1s or 0s, but not both. Instead of bits, quantum computers consist of qbits, which, due to a concept called quantum superpositioning, allows these bits to simultaneously exist in both states at the same time.

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JSON

Your JSON file holds an encrypted version of your private key, which is simply your private key encoded into a cool, secret string of characters.

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Airdrop

Airdropping is the placing of tokens directly into interested parties’ wallets.

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XBT

"XBT" is a new abbreviation for Bitcoin that is starting to come into use and reflects its growing legitimacy as an international currency.

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