12 Terms You'll Often Hear In Crypto Space

Levels: Easy To Hard

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Level 1: Very Easy

1. Blockchain

A chain of blocks that stores information/transactions.

2. Altcoin

Every coin is created after Bitcoin.

3. Stablecoin

A cryptocurrency pegged 1:1 to the price of a fiat currency.

Related Blogs:

What is Blockchain?

What is Bitcoin?

What is Stablecoin?

Level 2: Easy

1. Whale

A person who holds a lot of cryptos. Holding large amounts of crypto gives whales the ability to affect market prices.

2. Gas

The unit of measurement of the computing energy required to process a transaction on the blockchain.

3. Staking

The process of locking up crypto holdings to obtain rewards or earn interest.

Related Blogs:

What are Gas Fees on Ethereum Blockchain?

What is Ethereum?

Level 3: Medium

1. DeFi (Decentralized Finance)

Financial services are built on the blockchain. Unlike traditional finance, DeFi is anonymous, trustless, and fast.

2. dApp (Decentralized Application)

A program built on the blockchain and uses smart contracts to provide anonymous and trustless services to its users.

3. DAO (Decentralized Autonomous Organization)

A business or institution which uses smart contracts to ensure fairness and decentralization when it comes to making decisions.

Related Blogs:

What is DeFi?

What is dApp?

What is DAO?

Level 4: Hard

1. NFT

A non-interchangeable digital asset such as a picture, song, or video whose ownership has been authenticated and stored on the blockchain

2. Hard Fork

A new software update implemented on a blockchain that isn’t compatible with the existing blockchain protocol, causing a permanent split into two separate networks that run in parallel.

3. Soft Fork

Changes applied to a blockchain for modifying or adding functionality without causing any fundamental structural change.

Related Blogs:

What is an NFT? And why you should buy NFTs?

50+ Web3 Terms Everyone should know about and will get you up to speed (fast)

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