WEB 3.0 GLOSSARY💻
APY: The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.
Blockchain: A blockchain is a digital ledger of transactions that are duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).
DAO: A Decentralized Autonomous Organization (DAO) can be described as an open-source blockchain protocol governed by a set of rules, created by its elected members, that automatically execute certain actions without the need for intermediaries.
dApp: Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer, and are outside the purview and control of a single authority.
DeFi: Decentralized finance (Defi) aims to use technology to remove financial intermediaries and centralized systems between parties in a financial transaction.
Hodl: A Term often used by those in the cryptocurrency space which means to hold. With cryptocurrencies being very volatile instead of selling when you're down 90% you HODL (hold) your assets.
NFT: A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.
Protocol: A protocol is a crucial component of Blockchain technology that enables information to be shared automatically across cryptocurrency networks securely and reliably. In the field of computing, protocols are essentially rules that define how data is allowed to be transferred between different computer systems.
Staking: A process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Yield: Earnings generated and realized on an investment over a particular period of time. It's expressed as a percentage based on the invested amount, current market value, or face value of the security. It includes the interest earned or dividends received from holding a particular security. Depending on the valuation (fixed vs. fluctuating) of the security, yields may be classified as known or anticipated.
Yield Farm: Yield farming, also referred to as liquidity mining, is a way to generate rewards with cryptocurrency holdings. In simple terms, it means locking up cryptocurrencies and getting rewards.
Web 2.0: Web 2.0 is currently the most used iteration of the internet. It moved the world on from static desktop web pages designed for information consumption and served from expensive servers to interactive experiences and user-generated content that brought us Uber, AirBnB, Facebook and Instagram. The rise of Web 2.0 was largely driven by three core layers of innovation: mobile, social and cloud.
Web 3.0: Web 3.0 is the newest iteration of the internet set to pave a new way we look at the internet and finance. Web 3.0 is built largely on three new layers of technological innovation: edge computing, decentralised data networks and artificial intelligence.