Web3 101: glossary with simplified explanations


address (or public key)

An address is used to send and receive cryptocurrency. It is like a bank account number, which identifies where the money should be sent to.


A distribution method to send cryptocurrency or tokens to addresses. Airdrops are often used for marketing campaigns as rewards for tasks such as app downloads, referrals or social media shares.


A list of wallet addresses like one would have in a contact book. They are often used to capture which wallets previously used a product and qualify for an airdrop for their participation. It is an updated term for ‘whitelist’.


An alternative coin to the first cryptocurrency, Bitcoin. Examples of altcoins are Ethereum, Cardano and Litecoin.


This describes the opportunist of a trader or investor who rushes into buying a crypto token without conducting research.


Bitcoin (BTC)

The first cryptocurrency to be created. It was created in 2009 with the purpose of being a decentralised currency. BTC is the abbreviation. Learn more about Bitcoin here.


A system of recording information that is stored on a public database. It is a distributed database that is shared among a network of computers.


A warping of the word ‘build’. It is used to encourage building amongst peers in the crypto space. Whether it be to build a product or a community.



This is another term for a cryptocurrency.

cold wallet

A wallet that is not connected to the internet.



A Decentralized Autonomous Organisation is a group of people who come together online to work towards a common goal. DAOs differ from traditional businesses by operating with rules that are implemented by smart contract technology. This technology ensures that decisions are made collectively, rather than by a single leader.


The transfer of authority and responsibility from a centralised organisation or government to a distributed network.

decentralized app (or dApp)

An open-source, software application with backend code running on a decentralized peer-to-peer network rather than a centralized server.

decentralized exchange (DEX)

A cryptocurrency exchange that gives users full control over their assets. DEXes do not have an intermediary to confirm or complete transactions.


Short for degenerate which traditionally has a negative connotation. It is a term that crypto enthusiasts use affectionately amongst themselves to refer to each other without the negative connotation.


Do Your Own Research is a term used to encourage investors to thoroughly research projects before investing in them.



Ethereum Name Service defines itself as a “distributed, open, and extensible naming system based on the Ethereum blockchain”. It allows crypto users to translate their machine-readable Ethereum addresses to human readable addresses. For instance, the address 0xfBDd27B9d8A6093A524B333f3B6829dBAb8E065E can be read as web3futur.eth

ether (ETH)

Ether is the native currency for the Ethereum blockchain.


Ethereum is a decentralised, open-source platform that allows the creation of smart contracts and decentralised applications.



An application or website that distributes “test” cryptocurrency for developers to use to test their dApps or smart contracts. The cryptocurrency can only be used on test networks and cannot be traded for actual cryptocurrency.


Government-issued currency such as the Euro or Mexican Peso.


An acronym for fear, uncertainty, and doubt. It is sort of like propaganda, used to influence investing decisions.



The fee required to successfully perform a transaction on the Ethereum blockchain. It is similar to the fee paid to transfer money between bank accounts.


This acronym for ‘good morning’ expresses the idea of being “early” and, therefore, having a day filled with potential and opportunity.


‘good night’


This is the unit of which Ethereum gas is specified, i.e. 10 gwei.


hardware wallet

A small device that stores users’ private keys. It can connect to the internet and interact with online exchanges.


Hold On for Dear Life is an acronym frequently used in the crypto community to ‘hold’ on to their cryptocurrency during price dips and not give into the impulse to sell.

hot wallet

A wallet that is directly connected to the internet. They are popular for their convenience as a means to hold cryptocurrency because they can run on most desktops and mobile devices. The downside is that they are not as secure as cold wallets (not connected to the internet).


Layer 1

This refers to a base layer blockchain, such as Ethereum or Bitcoin, which power the ecosystem.

Layer 2

Layer 2 mechanisms are meant to improve the functionality of a base layer blockchain. It usually aims to reduce costs or increase the speed of transactions.


An asset is considered liquid if it can easily be converted into cash.



Crypto tokens created as a joke or meme, rarely do they hold any utility.


The process of publishing the data of an NFT to the blockchain.



A Non-fungible Token is a digital representation of a non-fungible good that is programmed on a smart contract.


The term describes a good that is unique and indivisible. An art piece or event ticket are both non-fungible goods.


open source

Open source is the philosophy that information should be free and accessible to all.


private key

A public key is an alphanumeric series of characters that allows a user to access their cryptocurrency. It acts as a password which protects funds from unauthorised access.

public key

A public key is an alphanumeric series of characters used to facilitate transactions between parties that allow users to receive cryptocurrency into their accounts. It is derived from a private key.



REKT, as in “wrecked”, is a term used to describe a bad trade.

rug pull

A rug pull is a scam similar to a pyramid scheme where hype is created over a project with grand promises. Once investors have invested in the project by buying its token, the project is abandoned by its creators who sell their shares and leave with the investments.


Satoshi (SATS)

The smallest unit of Bitcoin with a value of 0.00000001

secondary market

A market where collectors are able to sell or purchase pre-owned NFTs.


The act of promoting something such as a cryptocurrency, token or NFT art.

smart contract

A smart contract is a computer program that usually contains an agreement between parties. For it to execute actions, certain actions need to be met – as written in the code.


A type of cryptocurrency designed to maintain a stable price over time. It is pegged to the value of fiat currencies like dollars or pounds. Read more on stablecoins.


Staking is the process of locking one’s cryptocurrency as a means to contribute to the security and functionality of a blockchain. By doing this, you may earn a reward in proportion to the amount of cryptocurrency you have staked.



A token represents an asset built on a blockchain.



The state of not having access to bank services. This often happens when banks discriminate people for certain jobs or even for having used cryptocurrency services.



We Are All Going to Make It. An acronym used as encouragement that everyone’s crypto investments will be successful.


A wallet is software used for the management of one’s cryptocurrency.


An idea for a new version of the World Wide Web which combines concepts such as decentralization, cryptocurrency and other blockchain technologies.


An individual who holds a large amount of cryptocurrency.


An outdated term for allowlist. It is a list of wallet addresses like one would have in a contact book. They are often used to capture which wallets previously used a product and qualify for an airdrop for their participation.


A document with information from developers that explains the technology and purpose of the project they are working on.



The process of rewarding users for actions such as lending, borrowing or staking. Rewards can be given in cryptocurrency and tokens.