Dear Tokener,
Here there are few words and sentences you should definitely know if you want to travel through the Metaverse and chit chat with friends feeling like a pro.
Blockchain (and tokens)
This is the system by which cryptocurrency functions. Think of it as a big, open, online and distributed database. This “digital ledger” proves who owns which tokens (coins & NFTs) and, crucially, doles out new ones (and burns others). Data is stored in chronological order, where a block of data that contains new information is added to the block that comes before it — forming a kind of chain…. yes, a chain of blocks. Want to learn more 👉 👉 Blockchain basics.
Bitcoin & Bitcoin Lightning
Bitcoin is a digital currency which operates free of any central control or the oversight of banks or governments; instead it relies on peer-to-peer software and cryptography. It started the crypto movement.
Want to learn more?
👉 👉 What is bitcoin and why you should care.
The Lightning Network allows users to send or receive Bitcoin quickly and cheaply by moving transactions off of the main blockchain (that is maddeningly slow, extremely secure, never hacked, but slow). It is becoming extremely popular and many services are adopting it as way to use bitcoins to pay.
Ethereum
Ethereum is a decentralized blockchain-based software that has smart contract functionality. Ethereum is open source and used primarily to support the second-largest cryptocurrency in the world known as Ether. Ethereum enables the smart contracts and applications built on its blockchain to run smoothly without fraud, downtime, control, or any third-party interference.
Want to learn more?
👉 👉 What is Ethereum and why is it a revolution?
👉 👉 Ethereum as store of value
Smart contract
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.
Etherscan
Etherscan is the most trusted tool for navigating through all the public data on the Ethereum blockchain and is sometimes called “Ethplorer.” This data includes transaction data, wallet addresses, smart contracts and much more. The application is self-contained and is neither sponsored nor administered by the Ethereum Foundation, which is a non-profit organization.
Altcoin
Altcoins are cryptocurrencies other than Bitcoin or Ethereum (still many people considers Ethereum an altcoin as well, but it is getting so big that it might start to threaten the Bitcoin as the most capitalized one). They share characteristics with Bitcoin but are also different in other ways. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or they distinguish themselves from Bitcoin by providing new or additional capabilities, such as smart contracts or low price volatility.
Memecoin & Shitcoin
In a nutshell, memecoins are cryptocurrencies inspired by memes and internet jokes. Dogecoin, for example, was inspired by the Doge meme created from a viral photo of a Shiba Inu. These cryptocurrencies often aren’t meant to be taken seriously but can still gain momentum when members of the community buy into the newest one in order to be in on the joke. Shitcoins… well, “shit” coins…
Want to learn more?
👉 👉 All you wanted to know about Memecoins
Stablecoin
A stablecoin is a class of cryptocurrencies that attempt to offer price stability and are usually backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies like USD or Euro.
Note. Fiat money is a government-issued currency that is not backed by a physical commodity like gold or silver. It is considered a form of legal tender that can be used to exchange goods and services. Traditionally, fiat money came in the form of banknotes and coins, but technology has allowed governments and financial institutions to supplement physical fiat money with a credit-based model in which balances and transactions are recorded digitally.
Want to learn more?
👉 👉 What are stablecoins and why you should care
👉 👉 Stablecoins. Could I sepend the day paying with them?
CBDC
Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency. Many countries like China or the USA are developing CBDCs, actually the digital yuan is already in circulation.
Hodling
A misspelling of "holding." Hodling means "holding a cryptocurrency" for future profits and not selling. The term came from the misspelled "I am hodling" in an early Bitcoin forum when the crypto's price was dropping. To "hodl" evolved into "hang on for dear life."
Mining & PoW
Crypto currency mining is the competitive process that verifies and adds new transactions to the blockchain for a cryptocurrency that uses the proof-of-work (PoW) method. The miner that wins the competition is rewarded with some amount of the currency and/or transaction fees.
Bitcoin is a PoW blockchain, and so Ethereum but it is migrating to PoS.
PoS
Proof-of-stake is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. A consensus mechanism is a method for validating entries into a distributed database and keeping the database secure. In the case of cryptocurrency, the database is called a blockchain—so the consensus mechanism secures the blockchain.
DeFi
This abbreviation for “decentralized finance” refers to a new system of financial infrastructure based around blockchains and outside the purview of any single entity. DeFi uses cryptocurrencies for traditional banking services such as trading and lending money, and bypasses intermediaries like brokerages and banks.
Want to learn more?
👉 👉 DeFi 2.0. The future of liquidity
GameFi
GameFi refers to play-to-earn blockchain games that offer economic incentives to players. Typically, players can earn cryptocurrency and NFT rewards by completing tasks, battling other players, and progressing through the different game levels. It is rapidly evolving to ownership of parts of the game (like land, a starship, …) that can be rented or staked for yield. Probably the basis of the Metaverse revolution.
Want to learn more?
👉 👉 All you wanted to know about GameFi
Dapp
A decentralized application (Dapp) is an application built on a decentralized network that combines a smart contract and a frontend user interface. On Ethereum, smart contracts are accessible and transparent – like open APIs – so your Dapp can even include a smart contract that someone else has written. Dapps are rapidly expanding in other blockchains that support smart contracts like Avalanche, Cosmos, Near, …
Coinmarketcap
CoinMarketCap is the world's most-referenced price-tracking website for cryptoassets in the rapidly growing cryptocurrency space. Its mission is to make crypto discoverable and efficient globally by empowering retail users with unbiased, high quality and accurate information for drawing their own informed conclusions.
Centralized Exchange
Centralized cryptocurrency exchanges (CEX) are online platforms used to buy and sell cryptocurrencies. They are the most common means that investors use to buy and sell cryptocurrency holdings. Typically they also provide custodian wallets. Few of them:
As one of the largest cryptocurrency exchanges, Coinbase is the place for millions to buy, sell and exchange digital coins. The company went public in April 2021, and investing in its stock is seen as a way to bet on the future of crypto.
Binance is the largest online exchange where users can trade cryptocurrencies. It supports most commonly traded cryptocurrencies. Binance provides a crypto wallet for traders to store their electronic funds. The exchange also has supporting services for users to earn interest or transact using cryptocurrencies. It also provides users with a VISA card.
Crypto.com is a cryptocurrency exchange that supports trading, investing, staking, wallets, NFTs, and more. This exchange offers hundreds of different currencies, reasonable fees, and discounts for those who hold a significant stake in Crypto.com Coin (CRO). Its ecosystem of crypto-related products could make it a good choice for those looking to do a lot with their cryptocurrency. It also provides users with a VISA card.
Decentralized Exchange
Decentralized Exchanges (DEX), are peer-to-peer marketplaces where cryptocurrency traders make transactions directly without handing over management of their funds to an intermediary or custodian. These transactions are facilitated through the use of self-executing agreements written in code called smart contracts. DEXs were created to remove the requirement for any authority to oversee and authorize trades performed within a specific exchange. Decentralized exchanges allow for peer-to-peer (P2P) trading of cryptocurrencies. Peer-to-peer refers to a marketplace that links buyers and sellers of cryptocurrencies. They are usually non-custodial, which means users keep control of their wallet's private keys. A private key is a type of advanced encryption that enables users to access their cryptocurrencies. Users can immediately access their crypto balances after logging into the DEX with their private key. They will not be required to submit any personal information like names and addresses, which is great for individuals who cherish their privacy. They are of course the core element of DeFi.
Some examples: Uniswap, Sushiswap and Balancer.
Yield Farming
Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services. Yield farmers who want to increase their yield output can employ more complex tactics.
LP (Liquidity Provider)
A liquidity provider, also known as a market maker, is someone who provides their crypto assets to a platform to help with decentralization of trading. In return they are rewarded with fees generated by trades on that platform, which can be thought of as a form of passive income.
DEXes are key for Automatic Market Making (AMM), where users (Liquidity Providers,) rather than investment banks, provide the liquidity to perform the transactions and typically get a part of the commission.
Impermanent Loss
This is a rather complex term that involves providing liquidity to an AMM being exposed to the volatility of assets.
The technical definition of the impairment loss is a decrease in net carrying value, the acquisition cost minus depreciation. Impairment occurs when the crypto-assets are sold or abandoned because the LP no longer expects them to benefit long-run operations.
Lending
Crypto lending refers to a type of Decentralized Finance that allows investors to lend their cryptocurrencies to different borrowers. This way, they will get interest payments in exchange, also called “crypto dividends”. Many platforms that specialize in lending crypto also accept stablecoins, on top of cryptos.
Airdrop
Crypto users that frequently interact with new and existing platforms will likely receive an airdrop at some stage. Airdrops involve blockchain-based projects and developers sending out free tokens to members of their communities as part of a broader marketing initiative. The main idea is to send newly minted tokens to hundreds or thousands of different wallet addresses with the hope recipients will be more inclined to engage with the corresponding project – even if it’s only to learn how to cash out the free tokens into something else. This concept is similar to finding a free discount card in your mailbox to encourage you to visit a new store in the area. However, a crypto airdrop isn't predominantly about making the recipient spend money but rather raising awareness for new projects and services.
Want to learn more?
Fork
Cryptocurrencies like Bitcoin and Ethereum are powered by decentralized, open software that anyone can contribute to called a blockchain. And because they are open source, they rely on their communities to maintain and develop their underlying code. A fork happens whenever a community makes a change to the blockchain’s protocol, or basic set of rules. When this happens, the chain splits — producing a second blockchain that shares all of its history with the original, but is headed off in a new direction.
Oracles
An oracle is a bridge between the blockchain and the real world. They act as on-chain APIs you can query to get information into your smart contracts. This could be anything from price information to weather reports. Oracles can also be bi-directional, used to "send" data out to the real world.
Staking
Staking is a way of earning rewards for holding certain cryptocurrencies. Investors that choose to stake their crypto essentially become validators that can confirm transactions in the decentralized computer network and ensure that those recorded in the blockchain are legitimate. For doing so, they are rewarded with more cryptocurrency. Think of it as a way to earn passive income on the crypto that you own.
Want to learn more?
ICO/IDO/Bonding
An initial coin offering (ICO) is the cryptocurrency industry's equivalent to an initial public offering (IPO). A company seeking to raise money to create a new coin, app, or service can launch an ICO as a way to raise funds. Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company. This token may have some utility related to the product or service that the company is offering, or it may just represent a stake in the company or project.
An initial DEX offering, or IDO, is a new and exciting type of decentralized and permissionless crowdfunding platform, which is opening up a new way of fundraising in the crypto space. If a project is launching an IDO, it means the project is launching a coin or token via a decentralized liquidity exchange.
Bonding is basically purchaing a token with a discount. A bonding curve is a mathematical concept used to describe the relationship between price and the supply of a token. The basis of the bonding curve is the idea that when a person purchases an token that is available in a limited quantity, then each subsequent buyer will have to pay slightly more for it.
Liquidity
Liquidity in cryptocurrency markets essentially refers to the ease with which tokens can be swapped to other tokens (or to government issued fiat currencies). One way a market achieves liquidity is through the use of order books, like in a stock market.
Gas
Gas refers to the fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Priced in small fractions of the cryptocurrency ether (ETH), commonly referred to as gwei and sometimes also called nanoeth, the gas is used to allocate resources of the Ethereum virtual machine (EVM) so that decentralized applications such as smart contracts can self-execute in a secured but decentralized fashion. Lately, other blockchains are starting to use a similar terminology to refer to the cost of their transactions.
The exact price of the gas is determined by supply and demand between the network's miners, who can decline to process a transaction if the gas price does not meet their threshold, and users of the network who seek processing power.
Interoperability, bridges & cross-chain
There are many approaches to send tokens among the different blockchain projects. It is still not clear which method will succeed, meanwhile we talk about “interoperability” of blockchains if they have any means to connect with each other.
A blockchain bridge is a connection that allows the transfer of tokens and/or arbitrary data from one chain to another. Both chains can have different protocols, rules and governance models, but the bridge provides a compatible way to interoperate securely on both sides.
Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. In doing so, it breaks the siloed nature of blockchains to create an intertwined distributed ecosystem.
Degen
Shorthand for 'degenerate', it's generally used as an insult, referring to gamblers with a tendency to stake large amounts of cash without the knowledge or experience to back it up. In the ever-growing crypto space, however, traders have started to wear the label with a sense of pride.
DAO
A decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government, in other words they are member-owned communities without centralized leadership. A DAO's financial transaction record and program rules are maintained on a blockchain.
We like to say… “where meritocracy meets democracy”.
Want to learn more?
👉 👉 DAOs, what are they and why you should care
NFT
Short for “non-fungible tokens,” NFTs are essentially digital certificates of authenticity for content ranging from art to music to videos to membership of an organization. Their value comes from their inability to be replicated because of an algorithm that creates a barcode for each virtual item. In the metaverse, NFTs are expected to be a crucial component, serving as a way for people to display their digital art and property.
Want to learn more?
👉 👉 All about NFTs
NFT marketplaces
NFT marketplaces are platforms where NFTs can be stored, displayed, traded and in some cases minted (created). These marketplaces are to NFTs what Amazon or eBay are to goods. Hereafter some of the most popular: Opensea, LooksRare, Rarible
Want to learn more?
👉 👉 Where to buy and sell NFTs
Metaverse
“Metaverse” is currently a major buzzword in the worlds of tech, business, and finance, and like all buzzwords its definition is fuzzy, contested, and shaped by the ambitions of the people using it.
Here’s one thing we can say for sure: The term was coined by Neal Stephenson in his 1992 novel Snow Crash to describe a virtual world in wide use in his imagined future, a 21st-century dystopia. In Snow Crash, the metaverse is a virtual-reality world depicted as a planet-encircling market where virtual real estate can be bought and sold, and where VR goggle-wearing users inhabit 3D avatars whose form they have freedom to choose.
The metaverse is understood as a graphically rich virtual space, with some degree of verisimilitude, where people can work, play, shop, socialize — in short, do the things humans like to do together in real life (or, perhaps more to the point, on the internet). So… DeFi and GameFi are somehow essential, otherwise what would be the difference with a regular video game?
Want to learn more?
👉 👉 Metaverses. A second reality to scape
Web3.0
Web3 refers to the next version of the internet, which will focus on decentralization and user ownership. Also known as Web 3.0, Web3 is the next major phase in the evolution of the internet. Much like the foundation of cryptocurrency, and helped along by IoT ecosystems, the onset of the metaverse, and the rise of non-fungible tokens (NFTs), this new internet phase will be based upon decentralization, openness, and greater utilization for individual users.
Want to learn more?
👉 👉 Web3. The utopian dream of decentralization
Rug Pull
Rug pulls are a lucrative scam in which a crypto developer promotes a new project—usually a new token—to investors, and then disappears with tens of millions or even hundreds of millions of dollars.
So… BEWARE!
Discord
This group-chatting platform was originally a mecca for the gaming community but has recently become a gathering place for wide-ranging groups, from stock traders to music fans. Many crypto fans congregate here to share tips or hype up the newest coin or NFT collection.
Telegram
Telegram is a popular cross-platform messaging app that is widely used because it offers some enhanced privacy and encryption features as well as support for large group chat features. It also has no ties to other social media platforms (both Facebook Messenger and WhatsApp are owned by Facebook, for example), which makes the service more appealing to some. Yes, the crytpo community is crazy about it!
Twitter is an online news and social networking site where people communicate in short messages called tweets. Tweeting is posting short messages for anyone who follows you on Twitter, with the hope that your words are useful and interesting to someone in your audience. Another description of Twitter and tweeting might be microblogging. YES, you absolutely should have a Twitter account if you are serious about crypto. By the way… follow us: @TokenersEN
Snapshot
Snapshot is a platform for off-chain, gasless signaling on proposals, and it is widely used by popular decentralised finance projects to open protocol governance decisions to their community. The platform weights votes by the amount of a given token a participating wallet address holds.
Gnosis Safe
The Gnosis Safe is a smart contract wallet that allows users to store ether and ERC20 tokens securely and interact with the decentralized web. At its core, it is a multi-signature wallet… an absolute must-have of any DAO.
Wallet
A blockchain wallet is a digital wallet that allows users to store and manage their Bitcoin, Ether, and other cryptocurrencies. A blockchain wallet allows transfers in cryptocurrencies and the ability to convert them back into a user's local currency.
Want to learn more?
👉 👉 Wallets
Metamask
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum and other compatible blockchains. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications.
Want to learn more?
Ledger
Ledger's hardware wallets are multicurrency wallets that are used to store private keys for cryptocurrencies offline. Conducting transactions using cryptocurrencies requires the use of cryptographic private keys. But these keys, which are generally stored online, are susceptible to thefts and hacks.
Want to learn more?
👉 👉 All about Ledger
Bored Ape Yacht Club
This is one of the most successful NFT collections, which launched in April 2021. It includes 10,000 profile pictures of cartoon Apes with different characteristics, which often serve as digital avatars for their buyers. Ape owners are part of an online social club that offers certain amenities like Ape parties and meetups in different cities.
They have recently purchased the IP of CryptoPunks and release their own token, the APE.
CryptoPunks
A collection of 10,000 pixelated human-like characters that were created in 2017, the CryptoPunks collection is one of the most successful early NFT projects. The price of these tokens is often determined by their characteristics and uniqueness. Many buyers often see value in them as a representation of themselves in the form of a digital avatar online and in the metaverse.
Hitchhikers of the Cryptoverse (The Emojinauts)
WOW…. our NFT collection and future membership representation of Tokeners DAO.
Stay tunned! Soon a whitelist!
Unity
The future of the Metaverse will probably rely on this tech.
Unity is a 3D/2D game engine and powerful cross-platform IDE for developers. Let’s break down what this means. As a game engine, Unity is able to provide many of the most important built-in features that make a game work. That means things like physics, 3D rendering, and collision detection.
Digital Hologram
To replicate the real world, the metaverse will probably use digital holograms that recreate a person, place or object. Other users can interact with these 3D projections. It’s closely connected to — and sometimes used interchangeably with — the concept of an avatar.
Digital Twins
Imagine a place like your favorite clothing boutique — and its metaverse counterpart. A digital twin is the virtual representation of a real-world system or object, with the two interconnected and able to share data and information. You could try on a new shirt in the metaverse, and then have it delivered to your actual home. Or a business meeting in the metaverse could incorporate a model of a company’s real-world manufacturing plant.
We hope all this vocabulary is helping you to better follow any crypto conversation… if you want more Resources to start to build you cryptoverse, just keep reading 👇👇
Did we miss anything? 👉 CONTACT US in Twitter: @TokenersEN
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