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Merge pull request #156 from JanetMo/pullbranch
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Add crypto glossary guide
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wslyvh authored Jan 28, 2024
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18 changes: 9 additions & 9 deletions content/courses/zk-hack.md
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---
title: "ZK Hack"
description: "Hub for zk learning and building."
authors: ["@__zkhack__"]
tags: ["Smart Contracts","ZKP"]
languages: ["Solidity"]
url: "https://zkhack.dev/"
dateAdded: 2023-04-22
level: "Intermediate"
title: 'ZK Hack'
description: 'Hub for zk learning and building.'
authors: ['@__zkhack__']
tags: ['Smart Contracts', 'ZKP']
languages: ['Solidity']
url: 'https://zkhack.dev/'
dateAdded: 2023-04-12
level: 'Intermediate'
---

ZK Whiteboard Sessions is an educational series on all things zero knowledge. Produced by ZK Hack and powered by Polygon – we’ll be releasing a new module every week!
ZK Whiteboard Sessions is an educational series on all things zero knowledge. Produced by ZK Hack and powered by Polygon – we’ll be releasing a new module every week!
202 changes: 202 additions & 0 deletions content/guides/crypto-glossary.md
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---
title: 'Crypto glossary – important terms to navigate web3'
description: 'The glossary provides you with definitions for the most important terms to navigate the web3 landscape.'
authors: ['@bitblondy']
level: Beginner
tags: ['Web3']
languages: ['Solidity']
url: 'https://www.useweb3.xyz/guides/crypto-glossary'
featured: true
date: 2024-01-26
dateAdded: 2024-01-28
---

Navigating conversations and understanding key concepts in web3 sometimes requires its own terminology. In this regard, web3 is not just a technological shift, but also a cultural one.

This guide will provide you with the **most essential terms** to decode the language and become a web3 citizen. It is tailored to provide you with clear and concise definitions for the unique terms that define this industry.

Dive in, discover, and enhance your fluency in the unique lexicon of the web3 industry. (-:

If you want to contribute to the glossary, [have a look on Github](https://github.com/wslyvh/useWeb3/tree/main).

## Glossary a-z

- **Airdrop**
Distribution of free tokens, usually to promote a product or incentivise early users

- **Altcoin**
Alternative coin, any cryptocurrency other than Bitcoin

- **AMM**
Automated Market Maker, popular mechanism among decentralized exchanges (DEXes) involving liquidity pools instead of an orderbook-based system

- **Anon**
Anonymous, entity that wishes to remain anonymous or pseudonymous

- **Beacon Chain**
Ethereum’s proof-of-stake (PoS) consensus layer

- **Bridge**
Service that transfers tokens between multiple blockchains (cross-chain)

- **BUIDL**
Term to describe the web3 building ethos, even despite a bear market, inspired by HODL

- **CeFi**
Centralized finance, the “traditional” finance sector, in contrast to DeFi (decentralized finance)

- **CEX**
Centralized Exchange, app for swapping tokens run by a company, often used for fiat exchange; in contrast to DEX (Decentralized Exchange)

- **Cypherpunks**
Cypher + punks, movement originating in the early 90s, emphasizing the need for privacy in the digital age, enforced by cryptography

- **DAO**
Decentralized Autonomous Organization, blockchain-based organizations that are owned and governed by their members via tokens

- **DApp**
Decentralized Application, blockchain-based services that use smart contracts in their backend and thus have a distributed nature, without the need for intermediaries

- **DeFi**
Decentralized Finance, general term for decentralized services in the financial sector, that are permissionless and globally available, e.g., DEXes (decentralized exchanges) or lending protocols

- **Degen**
Degenerate, term for a person that is deeply involved in crypto or a specific sector, e.g., DeFi Degens

- **DEX**
Decentralized Exchange, blockchain-based app for swapping tokens that use smart contracts to be permissionless

- **Diamond Hands**
Holding a digital asset through very volatile times

- **DYOR**
Do Your Own Research, principle of self-verification instead of trusting others

- **EIP**
Ethereum Improvement Proposal, a process to describe standards for the Ethereum platform

- **ERC**
Ethereum Request for Comments, form of EIP to specify application layer standards; the most popular ones are ERC20 for fungible tokens and ERC721 for non-fungible tokens

- **EVM**
Ethereum Virtual Machine, the environment in which all Ethereum accounts and smart contracts live, the EVM defines the rules for computing a new valid state from block to block

- **Exchange**
An application that allows users to buy and sell crypto assets

- **Exit Scam**
Scenario in which a project or a part of a team steals the investors’ money and leaves

- **Explorer**
Webpage that displays information about the transaction history of a blockchain

- **Faucet**
Service that dispenses free tokens, usually for test networks

- **Flippening**
Term to describe a pivotal change in price or perception, e.g., when the market cap of a token exceeds the one of another token

- **FOMO**
Fear Of Missing Out, term to describe the feeling of not being included in something, e.g., a crypto investment or news

- **Fork**
Split of a blockchain or project due to technical issues or a dispute

- **FUD**
Fear, Uncertainty and Doubt, the opposite of FOMO

- **Gas**
Term for the fee that Ethereum transactions cost; it is used to reward validators and prevents malicious use of the blockchain

- **Genesis Block**
The first block recorded in a blockchain

- **Gm**
Good morning, form of greetings in crypto communities; due to the global nature of web3 it can be used at any time of the day

- **Hash**
Function that can be used to map data of arbitrary size to fixed-size values, e.g., for encryption, cryptographic hash functions are used in many parts of the web3 industry

- **HODL**
A frequent term referring to a strict buy-and-hold strategy, became famous after a misspelling in the bitcointalk forum in 2013

- **ICO**
Initial coin offering, the process of selling tokens when launching a new crypto project, inspired by the initial public offering (IPO) for stocks.

- **JOMO**
Joy Of Missing Out, converting FOMO into a positive feeling

- **KYC**
Know Your Customer, a process to verify the identity of customers; often used by centralized exchanges or entities

- **Layer 1**
Base blockchain architecture that serves as the foundation for other layers, also called mainnet, e.g., Ethereum

- **Layer 2**
Built on top of layer 1, usually for scaling purposes, e.g., Optimism

- **Minting**
Process of creating new token(s)

- **Mixer**
Decentralized Application that “mixes” tokens to cover their transaction history, used for private transactions

- **NFT**
Non-Fungible Token, a type of token that is not interchangeable or divisible, in contrast to fungible tokens; often used for digital collectibles

- **Node**
An instance holding a copy of the blockchain, it is connected to other nodes, synchronizing the blockchain and thus forming the network

- **OG**
Original Gangster, a person who was very early involved in crypto or a specific project

- **Orcale**
Data bridge to bring real-world information onto the blockchain

- **P2P**
Peer-to-peer, referring to a transaction between two people without other (central) parties involved

- **Rollups**
Popular type of layer 2, scaling solution that uses transaction bundling (“rolling up”) transactions before publishing them to the main chain

- **Rug Pull**
Scenario in which a team abandons a project and/or removes its liquidity, similar to exit scams

- **SBTs**
Soul-Bound-token, type of NFT that is non-transferrable

- **Smart contract**
Programs that run on the blockchain that follow the "if this then that" logic, they execute themselves when certain conditions are met

- **Snapshot**
Record of a blockchain at a particular block height, also the name of a popular DAO voting tool

- **Solidity**
Smart Contract Programming Language, created for the Ethereum blockchain but popular for other chains as well

- **Stablecoin**
A cryptocurrency that is pegged to another asset, mostly USD

- **Staking**
Process of locking tokens to contribute to validation in a proof of stake blockchain

- **Token**
Representation of a digital asset on a blockchain

- **TVL**
Total Value Locked, equivalent of USD locked in a blockchain or protocol, often used as an indicator in DeFi, e.g. in lending protocols

- **Validator**
Virtual entity participating in the consensus of a proof of stake blockchain, they participate in producing blocks and validating transactions

- **WAGMI**
Acronym for “We're All Gonna Make It”, expression used to show an optimistic attitude about the future of web3

- **Whale**
An entity holding a large amount of cryptocurrency, sometimes even a significant part of a project

- **Whitepaper**
Document that is released with new crypto projects to explain the details of the project.

- **ZKP**
Zero-Knowledge-Proof, cryptographic mechanism to verify an information without revealing it, often used for scaling solutions of privacy applications

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