5 More Crypto Terminology To Know

Web3.0

The early iterations of the internet, before the boom of social media, were the days of web 1.0. Websites were mostly static pages with a single purpose. It wasn’t very accessible by today’s standards. Then came web 2.0. There was a massive shift in focus to user-generated content. Social media platforms where anyone could make their presence known and share their thoughts became the norm. For better or worse. Now, the popularization of blockchain technology lead to the advent of web3.0. Essentially, the internet has become a place where exclusively digital things, like cryptocurrency, have real-world value thanks to blockchain technology. 

Blockchain Technology

The infrastructure on which all crypto-related content lives. Blockchain technology is not new. The current form is about 14 years old. But the idea is about 50. Blockchain tech is a massive open-source database. It stores information chronologically. Anyone can access it and store information on it, from anywhere. And because it doesn’t exist on any singular computer, in theory, it will exist forever. 

Decentralized

Arguably, the crypto terminology that makes cryptocurrency so popular. Decentralized just means that no single party, or government entity, controls it. It doesn’t have to be cryptocurrency. Crypto is popular because it’s seen as the ultimate free and open market through decentralization.

Minting

No, not like spearmint or peppermint. Minting is the process of recording data on the blockchain. For example, you mint an NFT. You also mint new crypto coins. Users can mint crypto or NFTs through proof-of-work or proof-of-stake. Computers solve the complex equations in a blockchain which allows users to authenticate the data they store there.

Proof-of-work and proof-of-stake

The two crypto terms are so intertwined they get one entry on this list. Proof-of-work (PoW)and proof-of-stake are the two methods by which users interact with a blockchain. PoW basically means a computer completely solves incredibly complicated equations. It consumes massive amounts of energy. But Proof-of-stake (PoS) is the next step. PoS is a little more complicated. But essentially, users, known as forgers, put up preexisting crypto. That crypto becomes untouchable. Users are then randomly selected to validate a transaction. They then get rewarded with new crypto.

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