Navigating the Web3 landscape introduces a plethora of new terms and concepts. To assist our community in understanding this evolving space, we've compiled a comprehensive glossary tailored for Streamex users. This resource aims to demystify common Web3 terminology, ensuring clarity as you engage with decentralized technologies.
Airdrop
A method of distributing a project's native tokens or other cryptocurrencies to users, often employed as a marketing strategy to encourage community growth.
AMM (Automated Market Maker)
A protocol that facilitates the automatic and permissionless trading of digital assets. In AMMs, users provide tokens to liquidity pools, creating immediate liquidity and earning a portion of the transaction fees in return.
API (Application Programming Interface)
A set of protocols and tools that allow different software applications to communicate with each other, enabling seamless integration and functionality.
Blockchain
A decentralized digital ledger that securely records information across a network of computers. Once data is added, it becomes immutable, ensuring transparency and trust.
Centralized
A system or application controlled by a single authority or entity, which holds exclusive power over its operations and data.
Collateralization
The practice of using one asset as security to obtain a loan in another asset, mitigating risk for lenders.
Cryptocurrency
A form of digital or virtual currency that utilizes cryptography for security, operating independently of a central authority.
Decentralized
A system where decision-making and control are distributed among multiple participants, eliminating the need for a central authority.
DeFi (Decentralized Finance)
A financial ecosystem built on blockchain technology that offers services like lending, borrowing, and trading without intermediaries such as banks.
Decentralized Exchange (DEX)
A platform that enables direct peer-to-peer cryptocurrency transactions without the involvement of a central authority or intermediary.
Escrow
A financial arrangement where assets are held by a third party on behalf of two transacting parties, ensuring security until the transaction conditions are met.
Gas Fee
A transaction fee required to execute operations on a blockchain network. For instance, Solana is known for its low transaction fees compared to other networks.
Gains
The profit or increase in value of an asset over time.
HODL
An investment strategy where individuals hold onto their assets regardless of market volatility, stemming from a misspelling of "hold" and often interpreted as "Hold On for Dear Life."
Immutable
A characteristic of blockchain data that prevents it from being altered or deleted once recorded.
Inflation
The economic phenomenon where the general price level of goods and services rises, leading to a decrease in purchasing power.
Liquidity
The ease with which an asset can be quickly bought or sold in the market without affecting its price.
Liquidity Pool
A collection of funds locked in a smart contract, providing liquidity for decentralized exchanges and enabling seamless trading.
Liquidity Provider
An individual or entity that supplies assets to a liquidity pool, earning rewards or fees in return.
Minting
The process of creating new tokens or assets on a blockchain, such as generating a new NFT or cryptocurrency.
Metaverse
A collective virtual shared space, merging physical and digital realities, where users can interact, work, and play.
NFT (Non-Fungible Token)
A unique digital asset representing ownership of a specific item or piece of content, verified using blockchain technology.
Node
A computer connected to a blockchain network that validates and relays transactions, contributing to the network's security and integrity.
Oracle
A service that provides external data to a blockchain, enabling smart contracts to interact with real-world information.
Private Key
A secure code that grants the holder access to their cryptocurrency holdings and allows them to authorize transactions.
Public Key
A cryptographic code associated with a private key, serving as an address to receive funds and verify signatures.
Smart Contract
Self-executing code on a blockchain that automatically enforces and executes agreements when predefined conditions are met.
Stablecoin
A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset like the US dollar.
Staking
The act of participating in a proof-of-stake (PoS) blockchain network by locking up tokens to support network operations, earning rewards in return.
Token
A digital asset issued on a blockchain, representing ownership or participation rights in a project or ecosystem.
Wallet
A digital tool that allows users to store, manage, and transact with their cryptocurrencies and tokens securely.
This glossary serves as a foundational resource for understanding key Web3 terms relevant to Streamex. As the Web3 space continues to evolve, staying informed will empower you to navigate and participate effectively in this decentralized digital landscape.