The web wasn’t always the web as we know it today. It has undergone significant evolution throughout time. Web 1.0, Web 2.0, and Web 3.0 are the three main “revolutions” that have occurred. Though we are currently on Web 2.0, we’re now advancing towards Web 3.0. During this transition, there is a lot of confusion about the difference between blockchain, NFTs metaverse and Web 3.0 in general.
If you feel like your understanding of Web 3.0 is murky, you’re not alone. The best way to understand Web 3.0 is to dive into the jargons that reflect the culture and vocabulary.
Here are some of the most common terms used in Web 3.0:
1. Altcoin — Any cryptocurrency other than Bitcoin. Popular altcoins include Ethereum, Binance Coin, and Philcoin.
2. BTD — “Buy the dip”. To purchase a cryptocurrency when its price drops.
3. DeFi — Decentralized finance refers to a financial system built upon the blockchain, that is fully distributed and not subject to any centralized authority, such as a bank, government agency or financial management firm.
4. Diamond hands — Someone who firmly holds onto their cryptocurrency, despite market conditions and the temptation to sell.
5. Paper hands — A term used to describe someone who sells at the slightest hint of a price downturn.
6. Maxi — Maximalist, or someone who doesn’t compromise on their views. A Bitcoin maxi believes every cryptocurrency other than Bitcoin is inferior.
7. Pump and dump — A scam in which a cryptocurrency is purchased in large quantities by an individual or group, only to be sold for profit when it reaches a peak. The purchase “pumps” the price up, and the sale “dumps” the asset so its price plummets.
8. Whale — Someone who holds an amount of cryptocurrency large enough to influence the market.
10. Smart contract — Computer programs stored on a blockchain that automatically run when predetermined conditions are met. For example, a smart contract can trigger when a token is sold, staked, transferred to a wallet or simply because it is a certain time or date. Smart contracts are a key feature of the Ethereum blockchain and allow for the creation of decentralized finance (DeFi) and other applications.
11. ICO — An Initial Coin Offering (ICO) is where developers of a cryptocurrency will release a set amount of tokens to crowdfund a project. This is similar to a company raising capital through an Initial Public Offering (IPO).
12. Peg — A peg is a tie to another value that a token aims to stay at. For instance, many stablecoins attempt to maintain a 1:1 ratio to a certain fiat currency. This is different from cryptocurrencies like Bitcoin, which is not pegged and therefore has a fluctuating value.
13. Rugpull — A rugpull is a common scam where a developer deliberately backs out of an invested cryptocurrency project, taking the token value with them. These are more common in Web 3.0 than in traditional financial systems as anybody can start a blockchain and raise via an ICO without regulatory oversight.
So here you have it, the13 most common terms in Web 3.0. We hope this helps to clear the confusion and sets you on the right path to be a Web 3.0 adopter as we move into 2023.