This content originally appeared on DEV Community and was authored by Ehilato Iyobosa God-desire
Web3 Jargon Demystified 🚀
1/ New to Web3? Confused by all the jargon? 🤯
Let’s break down key terms like gas fees, DAOs, oracles, and more—simplified for beginners! 🧵👇
2/ Gas Fees ⛽
Think of gas fees like Uber surge pricing—blockchains charge a fee to process transactions.
✅ Higher demand = Higher fees
✅ Paid in native tokens (ETH, MATIC, SOL)
✅ Used to reward network validators/miners
3/ DAOs (Decentralized Autonomous Organizations) 🏛️
DAOs are Internet-native communities that manage projects & funds through code instead of CEOs.
✅ Governed by token holders
✅ Smart contracts enforce rules
✅ Used for DeFi, investments, gaming, and more!
Example: Uniswap DAO, where users vote on protocol upgrades.
4/ Oracles 🔗
Blockchains can’t access real-world data on their own. Oracles act as bridges, bringing in external info like:
✅ Crypto prices (Chainlink)
✅ Sports scores & weather data
✅ Stock market updates
Without oracles, DeFi wouldn’t work!
5/ Liquidity Pools 💧
Ever swapped tokens on Uniswap or PancakeSwap? That’s possible because of Liquidity Pools (LPs)!
✅ Users deposit token pairs (e.g., ETH/USDC)
✅ Earn fees from traders
✅ Enables decentralized trading without order books
6/ NFTs (Non-Fungible Tokens) 🎨
NFTs are unique digital assets stored on the blockchain. Unlike crypto tokens, they can’t be replaced 1:1.
✅ Used in art, gaming, real estate
✅ Proves ownership of digital & physical items
✅ Enables creators to monetize directly
7/ More Web3 Terms You Should Know 📚
🔹 Smart Contracts – Self-executing agreements
🔹 Layer 2 – Faster, cheaper blockchain scaling solutions
🔹 Yield Farming – Earning passive income by providing liquidity
🔹 Rug Pull – When devs abandon a project & steal funds 💀
8/ Final Thoughts💡
Understanding Web3 jargon helps you navigate crypto, DeFi, and NFTs with confidence! 🚀
What Web3 term confuses you the most? Drop it below & I’ll simplify it! 👇 #Web3 #Crypto
This content originally appeared on DEV Community and was authored by Ehilato Iyobosa God-desire
Ehilato Iyobosa God-desire | Sciencx (2025-03-08T07:20:06+00:00) Web3 Jargon Demystified. Retrieved from https://www.scien.cx/2025/03/08/web3-jargon-demystified/
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