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Hi fellas. Here are some key terms that are quite common within this niche and community. If you want help understanding any of them, then check out the following glossary list. You can find the Wiki and other defining pages for each term if you click on it. Besides that, I’ll be briefing upon each term and try to hopefully make them easy and fun to understand. I hope it’s helpful!
This list is ever-expanding so let me know if you can’t find a related term that you are curious about, and I’ll add it to the list.
In terms of blockchain technology, a block is a collective record of a certain amount of transactions that happen on the respective blockchain. Every block also consists of linking data to the one preceding it, thus making a chain; a blockchain.
In simple terms, a blockchain is a decentralized ledger. It’s a massive online record of transactions that are made highly secure with the use of blockchain technology.
Being decentralized means that everyone in the world owns an ever-updating copy of the ledge, thus making it owned by no one and everyone at the same time.
Namely, some popular blockchains are the Bitcoin blockchain, Ethereum, Ripple, etc.
The blockchain technology is the method of recording transactional records in a decentralized manner by the duplication and distribution of the main ledger. The data is then secured by the use of complex cryptic algorithms. This makes the data immutable yet viewable by everyone.
In terms of cryptocurrencies, burning means the removal of cryptocurrencies, coins, and tokens, from the circulating supply and locking them into a permanently frozen wallet, effectively rendering them useless.
Centralized Exchange (CEX)
In terms of cryptocurrencies, a centralized exchange is a kind of digital marketplace where people can trade and exchange their cryptocurrencies.
Being centralized, the exchange is owned and managed by a central company, which traditionally charges a transactional fee for its services.
Namely, some popular centralized exchanges are Binance, KuCoin, Coinbase Exchange, etc.
Crypto Coins are a kind of cryptocurrency that is meant to be the representation of value in the same way fiat currencies act today. Crypto coins operate on their own blockchain, e.g., Bitcoin (BTC) on the Bitcoin Blockchain and Ether (ETH) on the Ethereum blockchain.
Crypto coins are essentially a form of digital money that operates on the principles of blockchain technology.
Cryptocurrencies are a kind of digital assets that operate on the principles of blockchain technology. These are made highly secure with cryptic algorithms and are decentralized; hence they don’t need a central governing authority like Banks for circulation.
Most importantly, cryptocurrencies are immune to several problems that are associated with traditional fiat currencies, such as counterfeiting and double-spending.
Namely, some popular cryptocurrencies are Bitcoin, Ether, Shiba Inu Token, Dogecoin, etc.
Cryptocurrency Mining or Minting is the term for creating new cryptocurrencies, coins, and tokens.
Cryptocurrency Wallets are special wallets with the ability to store cryptocurrencies, coins, and tokens, including NFTs. These wallets can be offline digital applications, online extensions, and applications, as well as tangible hard USB or Hard disk-like wallets.
Namely, some popular cryptocurrency wallets are the Binance Trading Wallet, Trust Wallet, and Metamask Wallet.
Crypto Tokens are a kind of cryptocurrency that is representative of an underlying asset. These underlying assets can include any form of digital assets from paintings, videos, writings to in-game items, contracts, etc.
Decentralized Exchange (DEX)
In terms of cryptocurrencies, a decentralized exchange is a kind of digital marketplace where people can trade and exchange their cryptocurrencies.
Being decentralized, the exchange is owned and managed by the people who use it. Here, various transactional fees go towards rewarding liquidity providers for their services,
Namely, some popular decentralized exchanges are PancakeSwap, UniSwap, 1inch Exchange, etc.
Digital assets refer to any form of a digital product. These products are classified as assets based on the value they provide. These can be any form of digital product, from text, pictures, and videos to codes, scripts, applications, etc.
Digital/Virtual Land is a newly immerging phenomenon where plots of land on a digital/virtual world are being tokenized and monetized via the use of blockchain technology.
In terms of cryptocurrencies, Farming/Staking means locking up a certain amount of crypto coins or tokens in a locked wallet for a specific period of time, effectively removing that amount from the circulating supply for that period.
Staking helps keep the economy of that token healthy and rewards stakers in various predefined ways. Staking is also used in Proof-of-Stake (PoS) blockchains to mint new coins.
Fungible Tokens are Crypto Tokens that are fungible in nature. Some popular Fungible Tokens are Shiba Inu Token (SHIB), Smooth Love Potion (SLP), Axie Infinity Shard (AXS), Decentraland Coin (MANA), etc.
HODL/hodling is a misspelling of the word hold/holding. The term is popular in the crypto community and means holding on to specific cryptocurrencies in the hope that they will rise in value in the future.
The term Metaverse is used to refer to an interconnected multiverse of all the virtual worlds and universes that have been, are being, and would be created on the internet via the use of blockchain technology.
Namely, some popular NFT Marketplaces are OpenSea, Axie Infinity Marketplace, Nifty Gateway, etc.
Non-Fungible Tokens (NFTs)
Non-Fungible Tokens are Crypto Tokens that are non-fungible in nature. These are unique digital assets that are secured and tradable with blockchain technology.
Some popular NFT Collections are Axie Infinity’s Axies Collection, The CryptoPunks Pixel Art Collection, The Bored Ape Yacht Club, and Winkelmann’s Everydays: The First 5000 Days, etc.
Play-to-Earn is the next step in the evolution of games. The evolutionary chain of games goes from Pay-to-Play games to Pay-to-Win, Free-to-Play, and now Play-to-Earn.
This kind of games lets players earn cryptocurrencies for playing games. The list of popular Play-to-Earn games includes titles like Axie Infinity, Alien Worlds, Chumbi Valley, Illuvium, and many others.
The term gaming rig is used to refer to a computer made specifically for playing games.
A sidechain is a kind of blockchain that is branched out from the main blockchain. Sidechains are made to counter specific problems associated with blockchain technology, such as slow transaction speeds, etc.
Sidechains operate independently but run parallel to the main chain as security and check balance measures.
Namely, a couple of popular sidechains are the Plasma Sidechain of Ethereum used by Tether USDT and the Ronin sidechain of Ethereum used by Axie Infinity Ecosystem.
The term tokenomics is the combination of the word tokens and economics. It is used to refer to the study of all the elements of a blockchain, including cryptocurrencies, coins, and tokens, fungible and non-fungible. The study includes the generation, distribution, growth, and burning of all these related assets.
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