Vocabulary

A definition often washes over a reader, leaving the reader influenced, but without any obvious new insight as to the intended meaning or implications of a word. Worse, without proper guidance, a reader may interpret a definition differently than what is intended by the author, or in the case of economics, different from how the discipline is actually employing the definition. Definitions are, however, important, potentially very important. A definition has the potential to provide clarity. At their best, definitions act like a compass, providing a lost reader with several potential directions from which to proceed.
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Vocabulary - Crypto, Blockchain & Web3

Web3

Web1: Static Websites (one-way publishing)
Web2: Platform / Apps (Two-way interactions)
Web3: TokenSystems (Complex Economies)

Web1: Read
Web2: Read & Write
Web3: Read, Write & Own

ADDRESS

  • a string representing a wallet to send and receive assets like crypto & NFTs.

AIRDROP - a technique in which crypto projects send tokens directly to their users' wallets to increase awareness and adoption.

ALLOWLIST

  • List of wallets allowed to mint an NFT.

ALPHA - valuable information, usually regarding the value of digital assets like crypto and NFTs before they hit mainstream.

ALTCOIN

  • refers to any cryptocurrency alternative to Bitcoin - usually with a relatively small market cap.

ALTS - short for Altcoins

APE

  • someone who invests heavily into a cryptocurrency or stock or the act of doing so.

APEING IN - buying into an NFT project, perhaps without due diligence. This is sometimes a reaction to hype and FOMO.

ATH, ATL

ATH - All-Time High - the highest price an asset has ever had.

ATL - All-Time Low - the lowest price an asset has ever had.

BEAR MARKET, BEARISH

BEAR MARKET - a period of decline in a financial market.

BEARISH - holding a pessimistic view of a market or asset’s value

BITCOIN

BITCOIN - the first decentralized, peer-to-peer digital currency, created by the pseudonymous Satoshi Nakamoto in 2009.

BLOCK

BLOCK - a batch of transactions written to the blockchain. Every block contains information about the previous block

BLOCKCHAIN

BLOCKCHAIN - Cryptographicaaly secured Block (transactions). Blockchains are the core technology on which cryptocurrency protocols like Bitcoin and Ethereum are built.

BLOCK EXPLORER

BLOCK EXPLORER - a tool for browsing information on a blockchain like transactions, wallets, etc

BTFD

buy the f*cking dip. When prices are dropping, that's the time to buy.

BRIDGE

  • a protocol allowing distinct blockchains to interact with one another - is the basis for interoperability.

BUIDL

means “build" - as building or focus in building stuff.

BULL MARKET

BULL MARKET - a period where market prices are rising.

BULLISH

BULLISH - refers to holding an optimistic view that a market or asset will rise in price.

BURN

BURN - process of removing crypto or NFTs from circulation, most of the times by sending them to another wallet.

CENTRALIZED

CENTRALIZED - a hierarchical structure in which authority and control are concentrated within a small group of decision-makers.

CEX

CEX - Centralized Exchange - a cryptocurrency exchange managed by a centralized business or entity. E.g.:
@coinbase

CeFi

CeFi - Centralized Finance - centralized businesses that participate in crypto. E.g.:
@Grayscale

COIN

COIN - a cryptocurrency built on its own native blockchain, intended to be used as a store of value and medium of exchange within that ecosystem. E.g.:
@ethereum

COLLATERAL

COLLATERAL - any asset accepted as security for a loan, such as physical assets like real estate or digital assets like NFTs.

COLD WALLET

COLD WALLET - an offline hardware device used to store cryptocurrencies. E.g.:
@Ledger

CONSENSUS

CONSENSUS - the state of agreement amongst the nodes on a blockchain.

CONSENSUS MECHANISMS

CONSENSUS MECHANISMS - a process through which nodes on a blockchain agree on a transaction or state of the network.

CRYPTO, CRYPTOCURRENCY

CRYPTO - short word for cryptocurrency.

CRYPTOCURRENCY - fungible digital assets designed to be used as a medium of exchange.

DAO

DAO - Decentralized Autonomous Organization - an organization based on open-source code governed by its users.

DAAP

DAAP - Decentralized Application - an application built on open-source code that lives on the blockchain.

DD

DD - Due Diligence - making your crypto research or NFT before you invest.

DYOR

DYOR - short for "Do Your Own Research"

DEGEN

DEGEN - initially short for “degenerate gambler.” Degens are proud people who enjoy ridiculous call options and occasionally aping into shitcoins.

DeFi

DeFi - Decentralized Finance - the ecosystem of borderless, trustless, peer-to-peer financial tools built on public blockchains.

DEX

DEX - Decentralized Exchange - a peer-to-peer cryptocurrency exchange built on the blockchain. E.g.:
@Uniswap

DIAMOND HANDS

DIAMOND HANDS - Someone who holds to crypto or NFT even if it tanks.

DIFFICULTY

DIFFICULTY - the level of computing power needed to verify transactions and mine blocks on a proof-of-work blockchain.

DIFFICULTY BOMB

DIFFICULTY BOMB - the process of increasing the difficulty of a proof-of-work blockchain.

EIP

EIP - Ethereum Improvement Proposal - a standard format for presenting a new feature or process to the Ethereum community.

ERC

ERC - Ethereum Request for Comments - the standard smart contract outline on which Ethereum-based smart contracts are built.

ERC-20

ERC-20 - the Ethereum token standard, providing a standardized smart contract structure for fungible tokens. E.g.: behind most Coins

ERC-721

ERC-721 - an Ethereum token standard that allows for forming unique tokens, otherwise known as NFTs.

ERC-721-A

ERC-721-A - and Ethereum token standard allows the formation of unique tokens with a lower gas expense. E.g.: the contract the @AzukiOfficial used for their NFTs

ERC-1155

ERC-1155 - an Ethereum token standard which allows for fungible, non-fungible, and semi-fungible tokens to be managed by a single smart contract simultaneously. Mostly used in gaming, membership-passes, etc.

ETHEREUM

ETHEREUM - a public blockchain serving as the foundation for decentralized applications.

FEW

FEW - short for “Few understand.” A rallying cry that crypto folks are still early in this space.

FIAT

FIAT - a currency established as legal tenders, like the US Dollar.

FLIPPENING

FLIPPENING - a reference to the possible event of Ethereum becoming more valuable than Bitcoin, in terms of market cap.

FLIPPING

FLIPPING - a reference to people who like to buy and sell NFTs to profit from small trades.

FOMO

FOMO - Fear Of Missing Out - a feeling of anxiety, stemming from missing out on an opportunity.

FREN

FREN - short for "friend."

FORK

FORK - a change to a blockchain protocol. It can be a "hard fork" or a "soft fork" - to be explained later.

FRACTIONALIZE

FRACTIONALIZE - locking an NFT into a smart contract and then dividing it into smaller parts issued as fungible tokens.

FUD

FUD - Fear, Uncertainty, and Doubt - news around an asset that seems negative but turns out to be false or blown out of proportion.

FLOOR

FLOOR - the lowest price available for an NFT in a collection, the minimum amount you need to buy into a collection.

FULL NODE

FULL NODE - a blockchain node that stores the blockchain’s complete history and verifies and relays transactions.

FUNGIBLE

FUNGIBLE - an asset that is interchangeable; exchangeable with something else of the same kind. E.g.: BTC or ETH

GAS

GAS - a fee paid by a user to conduct a transaction or execute a smart contract on the Ethereum blockchain.

GENESIS BLOCK

GENESIS BLOCK - the very first block of a blockchain network.

GENESIS COLLECTION

GENESIS COLLECTION - the very first NFT collection of an NFT project.

GM, GN, GMI

GM - short for "good morning."

GN - short for "good night."

GMI - short for “gonna make it.”

GWEI

GWEI - a denomination of ether used as the unit of measure for Ethereum gas prices. 10^9 gwei = 1 ether.

HARD FORK

HARD FORK - a fundamental change to a blockchain incompatible with the existing protocol, requiring the formation of a new chain. E.g., Ethereum Classic vs Ethereum

HASHING

HASHING - the process of taking an input of any size and producing a corresponding fingerprint of a fixed length.

HASH RATE

HASH RATE - hash power - is the rate at which a computer can generate guesses to a cryptographic puzzle.

HFSP

HFSP - Have Fun Staying Poor - a phrase commonly aimed at individuals who do not own any cryptocurrencies or don’t believe in the value of a certain asset.

HODL

HODL - an expression meaning “hold” and frequently taken to be an acronym for Hold On for Dear Life.

HOLDING THE BAG

HOLDING THE BAG - an unfortunate position you find yourself in when an asset you own drops in value quickly, but you do not sell.

HOT WALLET

HOT WALLET - is an online address where you save your assets. E.g.:
@MetaMask

ICO

ICO - Initial Coin Offering - selling tokens to the public to raise capital for a crypto-based project. The equivalent of an IPO.

IRL

IRL - In Real Life - speaks to events or activities that happen offline

IMMUTABLE

IMMUTABLE - data cannot be changed or modified by anyone after its creation. The core defining feature of blockchain technology.

INTEROPERABILITY

INTEROPERABILITY - the ability to see and share information across multiple blockchains. Also known as "cross-chain", allowed by "bridges".

IEO

IEO - Initial Exchange Offering - similar to an initial coin offering, or ICO, an initial exchange offering is a method of selling tokens to raise capital, but with increased regulation.

KEY

KEY - the public or private key of a wallet

L1 - Layer 1

L1 - Layer 1 - blockchain platform itself, also referred to as the base layer, mainchain, or mainnet. E.g.:
@ethereum

@Cardano

L2 - layer 2

L2 - Layer 2 - protocols, built on top of a Layer 1 blockchain and used to improve scalability and privacy and add cross-chain communication.

LAMBO

LAMBO - short for Lamborghini. The ability to purchase Lambo is a goalpost for success.

LIGHT NODE

LIGHT NODE - a blockchain node that downloads just enough data from the blockchain to process and verify transactions.

LIQUIDITY

LIQUIDITY - a measure of how easily an asset can be bought, sold, or traded in a given market or on an exchange.

LIQUIDITY POOL

LIQUIDITY POOL - a collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform.

MAINNET

MAINNET - short for "main network", this is a main Layer 1 blockchain, as opposed to a Testnet or Layer 2 solution.

MARKET CAP

MARKET CAP - the total value of an asset based on its current market price.

MASTER NODE

MASTER NODE - a blockchain node that verifies and relays transactions, stores the blockchain’s complete history, and may participate in voting, governance, etc.

METAVERSE

METAVERSE - a theoretical emergent networked online space with digitally persistent environments that people inhabit as avatars.

MAXI

MAXI - Maximalists - people who believe that one particular crypto is the only viable by far and predominantly invest in it.

MINING

MINING - in a Proof of Work system, this is the process of verifying transactions, organizing them into blocks, and then adding blocks to the blockchain.

MINERS

MINERS - people who work in a Proof of Work system to validate blocks.

MINTING

MINTING - validating information, such as domain ownership, and registering that onto the blockchain.

MINT

MINT - when someone buys an NFT for the first time, creating it for the first time in the blockchain.

MOON / TO THE MOON

MOON / TO THE MOON - this phrase implies that the value of an asset will go so high that it will reach the literal moon.

MOONBOY

MOONBOY - “financial experts” and YouTubers who are optimistic and constantly explaining how a given asset is “about to go to the moon!”

NFT

NFT - Non-fungible tokens - unique digital assets that prove authenticity and verify ownership.

NFT DOMAINS

NFT DOMAINS - domain names minted on the blockchain which allow people to govern their own data, set their Web3 username, etc.

NGMI

NGMI - short for “not gonna make it.”

NOCOINER

NOCOINER - a term used to describe someone who does not hold any cryptocurrencies or is generally unfamiliar with crypto.

NODE

NODE - any device connected to a blockchain network.

NON-FUNGIBLE

NON-FUNGIBLE - something unique, not interchangeable.

ORACLE

ORACLE - a service supplying smart contracts with data from the outside world. E.g.:
@chainlink

P2P - Peer-to-Peer

P2P - Peer-to-Peer - a distributed network of two or more computers interacting directly without a central server or entity. E.g.: Blockchain

PAPER HANDS

PAPER HANDS - a term used to describe someone who sold a cryptocurrency or stock whose price was falling, usually for a loss.

PFP

PFP - profile picture, usually referring to one of an NFT.

PERMISSIONLESS

PERMISSIONLESS - a system where no entity can regulate who can use it and how - like blockchain.

PILLED

PILLED - someone that now sees the truth - the underlying opportunities behind the blockchain and Web3.

PRIVATE KEY

PRIVATE KEY - an alphanumeric passcode required to withdraw assets from a blockchain wallet and authorize digital transactions.

POS - PROOF OF STAKE

POS - PROOF OF STAKE - a consensus mechanism that requires nodes, called validators, to stake a set amount of cryptocurrency on the blockchain to verify transactions and mint blocks.

POW - PROOF OF WORK

POW - PROOF OF WORK - a consensus mechanism that requires miners to complete complex mathematical puzzles to verify transactions and mint blocks.

PROTOCOL

PROTOCOL - the foundational software layer of a program.

PUBLIC KEY

PUBLIC KEY - used to point to your wallet address. Alphanumeric code serves as the address for a blockchain wallet.

PUMP AND DUMP

PUMP AND DUMP - a scheme where a cryptocurrency or other asset is hyped up, leading many to buy into it, raising its price.

PROBABLY NOTHING

PROBABLY NOTHING - often used sarcastically to mean the opposite. It probably is something.

RED PILLED

RED PILLED - someone that prefers the truth and understands how blockchain is already the present.

REKT

REKT - as in “wrecked,” used to express someone who has suffered a huge loss.

RUG PULL

RUG PULL - a scam maneuver where a crypto project takes the funds invested into its protocol or NFT project and runs with it.

ROLLUP

ROLLUP - a scaling solution that aims to improve transaction throughput and decrease fees.

RUGGED

RUGGED - someone that has suffered from a Rug Pull.

SATS

SATS - the smallest denomination of BTC, equal to 0.00000001 bitcoin.

SCALABILITY

SCALABILITY - a protocol’s capacity to handle higher demand and increase transaction throughput as the network grows.

SEED PHRASE

SEED PHRASE - a string of words used as a master password to access a crypto wallet.

SELF CUSTODY

SELF CUSTODY - having your assets in a wallet not held by an exchange.

SOCIAL TOKEN

SOCIAL TOKEN - a type of token issued with a social purpose like being part of a community or influencer's community.

SER

SER - short for "sir".

SHA-256

SHA-256 - SHA stands for Secure Hashing Algorithm, a set of cryptographic hashing functions designed by the NSA.

STAKING

STAKING - putting your tokens in to serve as a validator to the blockchain and be compensated accordingly.

SHARDING

SHARDING - a method of separating a network’s nodes into smaller groups (shards) to increase scalability.

SHILL

SHILL - the act of heavily promoting a cryptocurrency, stock, or other assets to increase adoption and, in turn, raises its price.

SHITCOIN

SHITCOIN - a cryptocurrency with weak fundamentals and little to no use case.

SIDECHAIN

SIDECHAIN - a parallel blockchain used to offload transactions from the main chain in order to increase scalability or add other functionality. E.g.:
@0xPolygon / Litecoin

SLASHING

SLASHING - the process of burning or redistributing a validator’s staked cryptocurrency as punishment for approving fraudulent charges or otherwise endangering the network.

SWEEP THE FLOOR

SWEEP THE FLOOR - buying NFTs in bulk at the floor price to secure the floor.

SLIPPAGE

SLIPPAGE - Slippage is the difference between a cryptocurrency’s quoted price and the price that the trade executes.

SMART CONTRACT

SMART CONTRACT - self-executing code deployed on a blockchain. Allow transactions without intermediaries.

SOFT FORK

SOFT FORK - a backward compatible update to a blockchain.

SOLIDITY

SOLIDITY - the native programming language of Ethereum, mainly used to write smart contracts.

STABLECOIN

STABLECOIN - a token with its value pegged to another asset. E.g.: USDC is pegged to the US Dollar.

TESTNET - a software environment that mimics a mainnet blockchain.

TOKEN - unlike a coin, a token is a digital asset created on an existing blockchain.

TPS - Transactions per second - the number of transactions a blockchain can handle per second.

TRANSACTION - data written to a blockchain.

TVL- Total Value Locked - the measure of the assets locked into a dapp’s smart contract usually expressed in USD.

TXN HASH - short for transaction hash, or transaction ID. unique identifier used to represent a specific transaction, written as a long string of letters and numbers.

UP ONLY - implies that a cryptocurrency or other asset can only increase in value.

VAPORWARE - a project that is announced and marketed but never actually materializes - it "evaporates."

WAGMI - "We're All Gonna Make It"

WALLET - a software application or hardware device that stores the private keys to blockchain assets and accounts. E.g.:
@MetaMask

@phantom

WALLET ADDRESS - known as public key, it's an alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number.

WEI - the smallest denomination of ether, named after cypherpunk and cryptocurrency pioneer Wei Dai - 10^18 gwei = 1 ether.

WHITELIST - list of addresses allowed to mint an NFT Collection.

WEN - short for "when"

WHALE - individuals, institutions or exchanges that hold significant amounts of tokens of a particular cryptocurrency

YOLO - You Only Live Once - investing too much money into a single asset; making a generally risky bet.