I was once like you; I also had a difficult time understanding, applying, and differentiating some of the Web3 terminologies that I usually come across on online platforms as a newbie in Web3.

To understand these terminologies, I dedicated my time to researching and learning about them.

Over time of constantly learning and reading about Web3, I have learned the application of some of these terms, and I would love to share what I learned to help you navigate Web3 content more easily.

Here are the 20 unavoidable terminologies that you should be aware of:

Decentralisation: This is the distribution of control across a network rather than being concentrated in a single entity.

Blockchain: It is a decentralised and secure digital ledger that records transactions across a network of computers.

Smart Contracts: These are self-executing contracts with code-based terms, automating and enforcing agreements on the blockchain.

Cryptocurrency: These are digital or virtual currencies using cryptography for security, like Bitcoin or Ethereum.

DApps (Decentralised Applications): These are applications built on blockchain technology, often utilising smart contracts.

NFTs (Non-Fungible Tokens): These are unique digital assets representing ownership or authenticity, commonly used in art, collectables, or gaming.

Wallet: This is a digital tool for storing, managing, and interacting with cryptocurrencies and tokens.

Consensus Mechanism: This is a process by which a decentralised network agrees on the validity of transactions, like proof-of-work or proof-of-stake.

IPFS (InterPlanetary File System): This is a decentralised protocol for storing and sharing hypermedia using a peer-to-peer network.

Web3: This is the vision of a decentralised and user-centric internet, emphasising individual control over data and interactions.

DAO (Decentralised Autonomous Organization): This is an organisation represented by rules encoded as transparent computer programs, controlled by the organisation members, and not influenced by a central government.

Token: This is a unit of value created and managed on a blockchain, often representing assets or access rights.

Gas: This is the fee paid for transaction processing on a blockchain network, especially in Ethereum.

Immutable: This ensures that once data is added to the blockchain, it cannot be altered or deleted, ensuring a tamper-proof record.

Fork: This is a split in the blockchain, creating two separate versions with their transaction history.

Mining: This is the process of validating transactions and adding them to the blockchain through computational effort, often associated with proof-of-work.

Staking: This is the act of participating in the proof-of-stake consensus by locking up a cryptocurrency as collateral to support network operations.

DAO Governance: This is a decision-making process within a DAO that allows members to influence or vote on proposals.

Cross-Chain: This is the interoperability between different blockchain networks, enabling communication and asset transfer.

Oracles: These are external agents (software, hardware, or human-operated) that provide real-world information to smart contracts on the blockchain.

Understanding these terms as a Web3 newbie will help you navigate the Web3 landscape and participate more effectively in the decentralised ecosystem.

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