INTRODUCTION
While the wave of WEB 2.0 is still bearing fruits, we have seen a large paradigm shift in internet applications ,entitled as WEB 3.0.
WEB 3.0 is driven on decentralized data networks and artificial intelligence where distributed users and networks are able to interact with data and other counterparties via peer networks without the need for third parties .Web 3.0 leverages blockchain and open source technologies. With WEB 3.0 we are able to trade value with global counterparties explicitly . It requires trust to coordinate counterparties on a global scale where WEB 3.0 marks a move precisely.
Web 3.0 has given rise to a slew of new buzzwords in tech. It might be difficult to keep up with everything if you are a newbie. Here's a list of a few such terms to get you started.
- BLOCKCHAIN
Blockchain serves as the foundational technology on which Web 3.0 is based. Blockchain is the decentralized system which is used to store and transfer information without any centralized authority. Together, Web 3.0 and Blockchain will allow for better trading and mining.
- AIRDROP
The crypto airdrop is a marketing method employed by startups in the cryptocurrency space. It involves delivering bitcoins or tokens to the wallets of current cryptocurrency traders, either for free or in exchange for a small promotional service in order to raise acceptance and awareness.
- CONSENSUS MECHANISM
A method through which nodes on a blockchain reach an agreement on a transaction or network state.
DAO
Decentralized Autonomous Organisation
DAO is an entity with no central leadership. DAO organizations are collectively owned and managed by their members that means it doesn't particularly lie with a centralized unit. DAOs are fully autonomous and transparent as they are built on open-source blockchains.
DApp
DApp is an open source software application that runs on a peer-to-peer blockchain network. DApp's are maintained by the users and contributors in exchange for token rewards.
- BITCOIN
The first decentralized, peer-to-peer digital currency established in 2009 under the pseudonym Satoshi Nakamoto.
- ETH
Ethereum aka eth is an open-source blockchain-based platform and has a wide range of applications. It is also one of the famous cryptocurrencies currently in the market.
- PROOF OF STAKE (PoS)
Proof-of-stake is a type of consensus mechanism used by blockchain networks to achieve distributed consensus. It is a mechanism that makes validators, or nodes, stake/deposit a certain amount of cryptocurrency on the blockchain in order to validate transactions and mint blocks. If a validator confirms fraudulent transactions, their stake will be reduced.
PROOF OF WORK (PoW)
It is a mechanism in which miners must solve challenging mathematical computations in order to validate transactions and mint blocks. When a miner solves a problem properly, they acquire permission to mint the next block and collect the matching block reward and transaction fees.
- MINTING
The validation process of any ownership or registries into the blockchain.
- MINING
Mining is a process that verifies each stage of the transaction.
- NFT
Non Fungible Tokens
These are non-transferable or non-interchangeable certificates given to assets(digital or physical) after they are minted successfully.
- Smart Contract
A smart contract is computer software that sets and enforces a set of blockchain rules. Once a smart contract is launched, its conditions are virtually impossible to amend or delete, making it irreversible.
These are some key phrases to understand if you want to dive into the Web 3.0 space. As you go further and deeper into this area, you'll gain familiarity. WAGMI 🚀