Web3 Glossary

A curated glossary of essential Web3 concepts, from blockchain to decentralized identity.

Blockchain

A decentralized digital ledger that records transactions and stores data across a distributed network of computers. It ensures transparency and security through cryptographic hashing and consensus algorithms like Proof of Work or Proof of Stake.

Smart Contracts

Self-executing contracts with pre-written rules that automatically enforce agreements when predefined conditions are met. These run on blockchains and power applications like DeFi protocols and NFT marketplaces.

DAO

Decentralized Autonomous Organizations (DAOs) are community-owned entities managed by smart contracts and tokenholder voting. They eliminate traditional hierarchies, enabling collective governance of protocols, treasuries, and ecosystems.

NFT

Non-Fungible Tokens are unique cryptographic assets that represent ownership of digital or physical items. They establish verifiable scarcity and authenticity for art, virtual land, and other collectibles.

Advanced Concepts

Cryptographic methods that allow one party to prove knowledge of a value without revealing the value itself. ZKPs enable privacy-preserving transactions and verifications in blockchains.

// Example usage in ZK-SNARK verification const verifyProof = (proof, publicInputs) => { return snarkProver.verifyProof(proof, publicInputs); };

Technologies built atop main blockchains (Layer 1) to increase transaction capacity and reduce costs. Solutions like rollups batch transactions off-chain before final settlement on the main chain.

• Lower fees
• Faster confirmations
• Improved sustainability