The Essential Web3 Terminology Everyone Should Know

Research
April 15, 2022

Vocabulary can be a barrier of entry for those just starting out in the space, learn the basic terms of Web3 with this quick guide.

The next iteration of the internet, or Web3, is a concept that is often discussed in the circles of technology and media. But, between the acronyms and odd spelling of words you see in the materials about Web3, do you really understand what is being discussed? 

If not, we have put together simple definitions for some of the key terminology in the Web3 space so you can better understand the conversations around the evolution of the Internet. 

What Exactly is Web3? 

Web 3.0 (Also written as Web3) describes the next generation of internet services in which the web is a decentralized online ecosystem, built on the blockchain. Decentralized means that no one company, organization, or entity completely owns the Internet, instead, every user can own certain parts of the web and affect change via transactions and creations on the blockchain. 

This represents a massive shift in data ownership. In Web 1.0 and 2.0, companies such as Google, Meta, Amazon, and Microsoft store the data that consumers provide during an internet session and are able to sell that information to other companies and organizations. In Web3, each consumer is a stakeholder and has the power to retain the data and choose how to utilize that information.  

There is no shortage of exciting projects and ideas coming out of the innovators racing to build Web3. But, as with all new creations, there is a new language that accompanies what is being created. We have gathered some of these basic terms to create this guide. Let's dive in. 

Understanding Cryptocurrency Terminology

CRYPTO is short for cryptocurrency.

BITCOIN is the first and most popular decentralized digital currency. All transactions using Bitcoin are recorded in a transparent, open ledger. 

ETHEREUM  is an open-source blockchain with smart contract functionality. Ether (ETH) is the cryptocurrency that the Ethereum network creates. Second to Bitcoin, Ether is the next most popular cryptocurrency. 

GAS is the fee required to execute a transaction or contract on the Ethereum blockchain.   

COLD WALLET a place to store digital assets off-line, making them secure them from bad actors.

HOT WALLET a place to store digital assets that of digital storage that is easily accessible and portable, yet but also more susceptible to hackers.

DEFI or decentralized finance is a financial application built on blockchain technology that enables digital transactions between multiple parties.

RUGGED is a term used to describe getting scammed, or tricked by the creators of a web3 project.

SHILL the act of enthusiastically promoting a cryptocurrency or ICO project. Shilling is an act that is typically looked down upon in the community. 

Let’s Discuss NFT Concepts

NFT stands for a non-fungible token, and it is a digital asset with unique attributes and can’t be substituted.

PFP An acronym for “profile picture”.

POAP stands for 'proof of attendance protocol'. This is an NFT that is used to signify an event or certain moment in time.

MOON a term used to describe when the floor price rises rapidly, to the moon.

ALPHA early, inside investment advice or intel. 

APE to go all in on an NFT project, to “ape in”.

FLOOR the current lowest price available to acquire an NFT in a collection.

Other Web3 Acronyms You Should Know:

DAO decentralized anonymous organization; it is a community-led, tokenized entity with no central authority.

DYOR Stands for ‘do your own research’.

FOMO Stands for the ‘fear of missing out’.

GM ‘good morning’.

GN ‘good night’.

IRL ‘in real life’.

NGMI  ‘not gonna make it’.

WAGMI ‘we are gonna make it’.

There you have it – your beginner's guide to the vocabulary of the Web3 world. 

Interested in learning more about what Web3 could mean for you or your brand? Get in touch.

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