Web3 Terms for Beginners
Embarking on the Web3 adventure can feel like stepping into a fascinating digital landscape filled with groundbreaking technologies and decentralized marvels. Whether you're a seasoned enthusiast or new to the scene, understanding the language of Web3 is crucial.
In this blog, we're your go-to guide for unraveling the mysteries behind key Web3 terms. From blockchain basics to decentralized finance (DeFi), NFTs, and smart contracts, we'll break down the essentials. Join us on this journey to demystify Web3, ensuring you have the knowledge to confidently navigate this transformative space.
So, buckle up as we delve into the world of Web3 definitions, providing you with the insights needed to embrace the future of the internet!
Cryptocurrency is the digital asset token or coin that belongs to specific network or ecosystem
Belongs to the nodes in a blockchain
A distributed ledger system. A sequence of blocks, or units of digital information, stored consequently in a public database. The basis of cryptocurrencies
Converting one cryptocurrency for another within the same network.
Converting one cryptocurrency for another within different networks.
Converting Fiat for Crypto
Converting Crypto for Fiat
Referred to information or calculations being held on the blockchain
Referring to information or calculations being held off the blockchain
Staking means to pledge your cryptocurrency tokens in a proof of stake mechanism. Staking is often done to validate a network.
Yield is the return you earn from staking or doing activities on the blockchain
A cryptocurrency exchange is a service which allows you to hold and trade your coins for different coins online. There are 2 types of cryptocurrency exchanges, Decentralised exchange (DEX) and centralised exchange (CEX)
Custodial refers to being in the care of a third party
Non-custodial refers to not being the care of a third party, but rather in the care of oneself
Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to secure and validate transactions. Unlike Proof of Work (PoW), which relies on miners solving computationally intensive puzzles, PoS selects block validators based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. PoS aims to achieve network security and consensus without the need for extensive energy consumption.
Proof of Work (PoW) is a consensus mechanism protocol designed to secure and validate transactions on a blockchain by requiring participants to perform a certain amount of computational work.
Mining refers to the process by which new units of a cryptocurrency are created and transactions are added to the blockchain.
Bitcoin was the first cryptocurrency developed in 2009 by Satoshi Nakamoto as the a decentralised asset with know one individual that can control the asset.
Xellar is the next generation non-custodial application, integrated into the DeFi world. Download Xellar on the App Store & Play Store. Integrate with Xellar’s cold wallet technology.