Talk Web3 to Me: A Glossary of Terms

Blockchain — A distributed, publicly accessible database that functions as a ledger to record digital transactions (such as records of a cryptocurrency transaction). The blockchain provides a way to conduct verifiable, trusted transactions — without the need for a centralized third-party entity.

Metaverse — A virtual-reality space in which users can interact within a computer-generated environment with virtual objects, artificial- intelligence elements or other users through virtual avatars. (Think of the gamelike VR world from “The Matrix” movies.) The metaverse concept is a subset of Web3 technologies.

Cryptocurrency — A virtual currency in which transactions are verified and records maintained by a decentralized, block- chain-based system using cryptography, rather than by a centralized authority. Bitcoin and Ethereum are two of the most widely used cryptocurrencies.

NFT — A non-fungible token is a unique digital ID, which can’t be copied or substituted, and is recorded in a blockchain. NFTs are used to certify authenticity and ownership of a specific piece of digital content (like an image or a video) along with specific rights to the content.

DAO — A decentralized autonomous organization is controlled by its participating members; it isn’t governed by any single individual or entity. DAOs provide accountability and transparency using a blockchain; Typically, access to a DAO is verified via an NFT.

Secondary Market — In the finance world, a secondary market a platform where existing owners of stocks and other securities can buy, sell or trade those assets. In the context of NFTs, a secondary market functions similarly, providing a marketplace for transacting sales and trades in a blockchain-verified way. Dapp A term for any decentralized application designed to function on a blockchain.

Dapps — (sometimes styled as “dApps”) use “smart contracts,” which are automated programs stored on a blockchain that run when predetermined conditions are met. Bitcoin is an example of a dapp.

Wallet — A type of dapp that is used for securely accessing and managing blockchain-based assets such as cryptocurrency or NFTs.

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