Whether it’s Meta, a MetaMask or the metaverse, here’s an explanation for many of the most commonly-used web3 terms. Airdrop. In the crypto world, an airdrop is a free distribution of tokens or coins from a company directly into its users’ or members’ wallets. Altcoins , or alts , are cryptocurrencies that are relatively new to the market and that have relatively low valuations. A conjoining of the words “alternative” and “coin,” the term “altcoin” initially was used to refer to any cryptocurrency that wasn’t Bitcoin. Augmented reality (AR). A technology that combines elements of virtual reality (VR) with physical reality. In its current form, AR can be facilitated by devices worn over the eyes – such as glasses or goggles – or by a smartphone or computer screen. Pokémon Go is one common example of AR, because it blends virtual information with one’s physical environment. Avatar. An avatar is a digital rendering of a human being or other entity in VR, a video game, the internet or another virtual space. Bitcoin is at the time of writing the most valuable cryptocurrency in the world. It was also the world’s very first cryptocurrency, postulated by ‘Satoshi Nakamoto’ (which is typically presumed to be a pseudonym) in a now-famous white paper called ‘A Peer-to-Peer Electronic Cash System’ in 2008. Blockchain. A ‘blockchain’ is a distributed digital ledger that’s used to record transactions. It’s an immutable database, which means that information can’t be tampered with or altered once it’s been recorded. (If there’s an error in an entry, then a new, revised entry must be made, and both entries will subsequently be visible on the ledger.) The name comes from the fact that a blockchain stores data in ‘blocks,’ individual units that are linked, or ‘chained,’ together. New data is filed into blocks – and blocks are subsequently chained together – in chronological order, so a blockchain becomes longer and longer as more information is added to it. Each new piece of information is also assigned a timestamp, which makes it easy for users to find out exactly when it was linked to the database. The transparency and immutability of the blockchain makes it a very reliable and trustworthy business resource both for individuals and for companies. Block. A block, the constituent element of a blockchain, is an individual unit in which data is stored. Centralized system. This is a system […]

Read more at: From altcoins to testnets: here’s an updated glossary of Web3 terms you need to know