Common Terminology
51% Attack
Also known as a majority attack, this occurs when a miner or group controls more than 50% of the mining hash rate or computational power on a network, potentially compromising its integrity.
Sandwich Trading
Sandwich trading, or sandwich attacks, is a trading strategy (or manipulation technique) in the cryptocurrency market where a trader places orders around an existing transaction to profit from price movements.
Central Bank Digital Currency (CBDC)
A CBDC is an official digital currency issued by a sovereign central bank, categorized into wholesale CBDCs (for institutions) and retail CBDCs (for public use).
Centralized Exchanges (CEX)
Traditional cryptocurrency platforms known for high liquidity, advanced trading tools, and risk management. Examples include Binance, Coinbase, and Kraken.
Nakamoto Consensus
A protocol used in blockchain networks to achieve agreement on the state of the blockchain without a central authority, named after Bitcoin’s pseudonymous creator.
Active Validation Service (AVS)
Systems continuously monitored and validated to ensure operational stability and security.
Transaction ID (TXID)
A unique alphanumeric string identifying each transaction on a blockchain.
Counterparty Risk
The risk that one party in a financial transaction defaults or fails to meet obligations, causing financial loss to the other party.
Exchange-Traded Funds (ETF)
Investment funds tracking market indexes, including cryptocurrency ETFs, which allow exposure to crypto price movements without direct ownership.
Core Concepts
Tokenization
Converting real-world assets (e.g., real estate, art) into digital tokens on a blockchain to enable fractional ownership and trading.
Token Standards
Frameworks like ERC-20 (fungible tokens), ERC-721 (NFTs), and BEP-20 (BNB Chain tokens) that define how tokens function across networks.
Tokenomics
The study of a token’s supply, demand, utility, and incentives that influence its value and ecosystem health.
Ethereum Virtual Machine (EVM)
A Turing-complete environment executing smart contracts, pivotal for decentralized applications (DApps) on Ethereum and compatible chains.
Advanced Technologies
Sidechains
Independent blockchains linked to a parent chain (e.g., Polygon to Ethereum) to enhance scalability and asset interoperability.
Sharding
Splitting a blockchain into smaller partitions to improve transaction speed and data management—key for Ethereum 2.0’s scalability.
Zero-Knowledge Rollups (ZK-Rollups)
Layer-2 solutions bundling transactions off-chain and submitting validity proofs to the main chain, reducing fees and increasing throughput.
DeFi Strategies
Yield farming, liquidity mining, and staking in decentralized finance (DeFi) protocols to maximize returns on crypto assets.
FAQ
Q: What’s the difference between Web2 and Web3 communities?
A: Web2 relies on centralized platforms (e.g., Facebook), while Web3 leverages blockchain for user-owned data, decentralized governance, and tokenized incentives.
Q: How do I start as a digital nomad in Web3?
A: Begin by exploring DAOs (Decentralized Autonomous Organizations), remote crypto jobs, and NFT-based memberships for global collaboration.
Q: Are CBDCs a threat to cryptocurrencies?
A: Not necessarily—CBDCs aim to digitize fiat currencies, while crypto offers decentralization and programmable money via smart contracts.
👉 Explore Web3 job opportunities
Future Trends
- SocialFi: Decentralized social media platforms rewarding users with tokens for engagement.
- Liquid Staking: Earning yield on staked assets (e.g., stETH) while maintaining liquidity.
- AI + Blockchain: Projects like Fetch.AI combining AI with decentralized networks for autonomous agents.
This guide merges Web2’s accessibility with Web3’s innovation, offering a roadmap for the next generation of digital nomads.