🗂️Glossary

Terms and definitions.

Find a curated glossary of frequently found terms in Web3 and the Ethernauts guide to the Metaverse.

Aggregators

Are web applications that automatically collect related content and/or data from many online sources. They collect the data and put it all into one place to make things easier and more efficient for end-users.

In markets aggregators fetch the best price available in a market from a variety of sources. Providing an 'aggregated quote.' [Refer to 1inch Exchange or Paraswap]

Atomic Swap

Is a smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries, such as exchanges.

Autonomous

Existing or capable of existing independently.

Blockchain

A system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.

A distributed, digital, hyper-ledger. (DLT)

Cryptocurrency

A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.

• Crypto = Cryptography = Encryption / Secure communications

• Currency = Money / Value

• Cryptocurrency = Secure-money

Ex: Bitcoin, Ethereum, Doge.

Decentralization

Is the process by which the activities of an organization/project, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.

Exchanges (CEX / DEX)

A marketplace where securities, commodities, derivatives, and other financial instruments are traded.

• CEX – Centralized Exchange; a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner (See Coinbase or FTX).

• DEX – Decentralize Exchange; create p2p markets directly on the blockchain, which allows traders to freely participate in token exchange markets (See Uniswap)

Governance

The act or process of governing or overseeing the control and direction of something (such as a country or an organization/protocol).

KYC

Know Your Customer is the process used to verify the identity of their clients either before or during the time that they start doing business with them.

KYB

Know Your Banker is a process adopted by DecentrAgora. It’s typically used in the Defi branch. Knowing your banker allows for users of decentralized finance to feel comfortable transacting with applications that need access to their funds. Because they know the project creator.

ie; approval transactions and automated trades

Liquidity Pool

Are pools of tokens locked in smart contracts that provide liquidity in decentralized exchanges to attenuate the problems caused by the illiquidity typical of such systems.

Metaverse

A completely virtual environment composed entirely of data and powered by algorithms/blockchains. This metaspace is run by humans doing digital jobs.

Multi Signature Smart Contracts (Multi Sigs)

Are cryptocurrency wallets that require two or more private keys to sign and send a transaction.

The storage method requires multiple cryptographic signatures (a private key’s unique fingerprint) to access the wallet. (Refer to Gnosis Safe)

Open Source

Denoting software for which the original source code is made freely available and may be redistributed and modified.

Organization

An organized body of people with a particular purpose, especially a business, society, association.

Private Key

Allows a user to access their cryptocurrency. If a user loses their private key, they can no longer access the wallet to spend, withdraw, or transfer coins.

Private keys correspond to ‘Seed’ or ‘Recovery’ phrases. The words of your seed phrase

PRIVATE KEYS or SEED PHRASES MUST BE KEPT SECRET

NEVER EVER SHARE YOUR SEED PHRASE or PRIVATE KEY WITH ANYONE

Protocol

Are basic sets of rules that allow data to be shared between computers. For cryptocurrencies, they establish the infrastructure on top of a blockchain — the distributed database that allows digital money to be securely exchanged on the internet.

Public Key (Address)

A public address is where funds are deposited and received– in public view.

It is a cryptographic code that is paired to a private key. While anyone can send transactions to the public key, you need the private key to “unlock” them and prove that you are the owner of the cryptocurrency received in the transaction.

React / JS

JavaScript is a library used in web development to build interactive elements on websites. Typically used in front-end development.

React is a typical programming language used in the development of interfaces. These interfaces serve as front ends for applications deployed on the Ethereum blockchain.

Seed Phrase

A mnemonic phrase, mnemonic seed, or seed phrase is a group of words that allow access to a cryptocurrency wallet.

Solidity

Is an object-oriented programming language for writing smart contracts. It is used for implementing smart contracts on various blockchain platforms, most notably, Ethereum.

Transactions

An exchange or transfer of goods, services, or funds.

Wallet

An application that allows cryptocurrency users to store and retrieve their digital assets stored on a blockchain.

Web3

An informal ‘layer’ of the internet powered by decentralized applications and blockchains.