20 words to better understand Web 3

“Provided they hold enough cryptocurrency in their

Discord members will be

able to

their NFT on D-Day, at 5 p.m.

» You have not understood everything?

The opposite would have been surprising.

Not that we underestimate your vocabulary, but these words remain the prerogative of Web 3 users, in other words, at the time of writing these lines, a niche.

You don't know what Web 3 is?

You know what, we also have the definition that goes well.

asked the first concerned, the members of the 20 Mint community to put simple words that everyone can understand on the language in force in the world of blockchain, NFTs and decentralized finance.

Cryptocurrency, a definition of Caacao

A cryptocurrency is a digital currency issued on a blockchain.

Unlike a central bank currency which holds all the powers over its issue, a cryptocurrency is subject to rules predefined by smart contracts (we often speak of

, read below) which are immutable.

These rules govern how cryptocurrency works, so each cryptocurrency has its own rules.

For example, a rule of bitcoin is that there can only be 21 million while a rule of tether (a so-called stablecoin) is that it must always have a value of 1 dollar.

Web 3, a definition by Loïc of CollecOnline

The term Web 3 brings together a multitude of new uses and services constituting a possible future of the Internet.

This is generally based on a principle of decentralization and on the use of blockchain technology. In order to fully understand the differences between Web 1, Web 2.0, and Web 3, let's take a few examples:

-Web1: static websites, few content creators, connection via a login/password, few intermediaries.

-Web 2.0: dynamic websites, everyone becomes a content creator but it is owned by GAFAM, connection thanks to its social networks (Facebook, Google…) which become our digital identity, many intermediaries.

-Web 3: creators can reclaim their content using NFT technology, your digital identity is carried by your wallet which also becomes your payment solution, the advent of the metaverse is shifting the Internet from 2D to 3D.

Metavers, a definition by Loïc of CollecOnline

A metaverse is a virtual, open and persistent universe.

These worlds, usually in 3D, allow visitors to interact with each other through a customizable avatar.

Several visions of the metaverse currently clash.

Meta (formerly Facebook), for example, offers a centralized metaverse and sets all the rules: architecture, social interactions, commission on sales (50% advertised on digital objects, etc.).

In contrast, metaverses from the world of Web 3 want to be decentralized, free and interoperable.

They also include the principle of ownership through the use of NFT technology.

For example, Decentraland has its own cryptocurrency (Mana), its virtual lands take the form of NFTs, its governance is a DAO, and its storage protocol is based on IPFS (decentralized storage).

NFT, a definition of [AI] Flo 73

NFT (

) stands for “non-fungible token”.

Unlike a €1 coin, which is fungible because it can be exchanged for any other €1 coin, the NFT is unique and, unlike a bitcoin for example, it is indivisible.

Impossible to own or trade a fraction of it.

An NFT is therefore a digital, unique and non-interchangeable certificate of authenticity.

By obtaining an NFT, a buyer becomes the exclusive owner of a digital asset: a painting, video, photograph, meme, video game item, film, etc.

Decentralization, a definition of Daoud

Decentralization, as opposed to centralization, is a development process that consists of transferring skills, data, calculations, etc. to several distinct entities (or communities) in order to allow greater autonomy within the community. concerned and to avoid that a single person (or a single entity) makes all the decisions and carries out all the actions without consulting the others.

DeFi or decentralized finance, a definition of _mbCrypto

DeFi is the compression of

or, in French, decentralized finance.

This term brings together all the methods for investing, financing or making your cryptoassets grow.

Its difference with traditional finance is the absence of a centralized control entity that determines eligibility for access and use of a third-party account or other banking services.

Thus, the 1.7 billion people who were still excluded from the banking system in 2017 could start investing in cryptocurrencies tomorrow, thanks to a simple smartphone or a low-cost computer.

ICO, a definition of Slumar

Initial Coin Offering

or "initial token offering".

This is a fundraising method to finance a project.

This is one of the first phases of a project.

These tokens will allow access to products or services of the project in the future.

However, on a large majority of ICOs the tokens obtained are generally blocked for a certain period of time and are released gradually.

This is called "vesting".

Unlike an IPO (an initial public offering), users do not get any share of the company.

KYC, a definition of Loïc of CollecOnline

The acronym KYC, from English

, is a procedure aimed at validating the identity of a natural or legal person by his identity card, his telephone, his email, his KBIS… This verification is generally requested before any investment action (fiat or crypto) in order to fight against money laundering.

These steps are pushed by the regulatory authorities, often to the chagrin of crypto and Web 3 purists. wallet acts as a new identity card.

Proof of Stake, a definition by Loïc of CollecOnline

The acronym PoS, from the English

, which can be translated as "proof of stake", was designed as a response to the

(PoW, read below) in order to solve the main problems inherent to the latter (obsolescence of equipment, energy consumption, etc.).

This protocol consists of validating a transaction on a blockchain, not thanks to the computing power, but thanks to the quantity of tokens involved (staking).

By placing assets in escrow, you will have a chance to validate a transaction, and be drawn for the reward that all “validators” are eyeing!

On the other hand, if you are caught red-handed trying to corrupt a transaction, you will lose the tokens involved. Many so-called "eco-friendly" blockchains such as Polygon, Ternoa, Polkadot or Tezos use this protocol very energy efficient.

Proof of Work, a definition of peyha

Proof of

Work

(PoW) which stands for “proof of work” is an algorithmic mechanism that allows some blockchains to add new transactions to the ledger.

It's about finding the solution to a very complicated algorithmic problem as quickly as possible.

The first to find the solution can then add the new network transactions to a new ledger block and is rewarded with a certain amount of cryptocurrency (currently 6.25 BTC on the bitcoin blockchain).

The interest of the proof of work is that the network will be secure since the reward will motivate a large number of network agents to try to solve this problem, which prevents a single actor from appropriating the network by taking control. adding new transactions to the network.

(read above).

In addition, the increased competition for this mechanism causes the shortage of many computer components (especially graphics cards) to the detriment of conventional buyers of these products.

Mining, a definition of XirenoveraX

Devoid of a central authority ensuring its proper functioning, a blockchain needs users in order to ensure the activity of the network.

The latter, called miners, will use a calculation method that validates, records and certifies transactions on a blockchain.

This operation is called mining or

in English.

Smart contract, a definition of Mafiiou

Smart

are decentralized computer programs, most commonly deployed on a blockchain, that execute a set of predefined instructions.

They are innovative by their autonomous and fast executions, their immutability, the blockchain being the trusted third party.

Used in some digital asset transfers, in decentralized finance.

Airdrop, a definition of Youyou #GoldenMafia

An

is a reward you receive, usually in the form of NFTs or tokens.

The airdrop is generally “conditionally free”.

The most common example, having to follow a Twitter account, join a discord, retweet a tweet… This allows the project to increase its community and thus its visibility.

One can also simply be entitled to an airdrop as an NFT holder of a project, it is a reward.

Be careful, you can receive malicious tokens/NFTs via airdrop, from a malicious project.

It is advisable not to participate in an airdrop without first finding out about the project.

Blockchain, a definition of Shira

A blockchain, or chain of blocks in French, is the equivalent of a register of transactions that can be freely consulted by anyone with Internet access.

Each transaction carried out is recorded in a block (the equivalent of a page of the accounting book) which is then sealed when it reaches the end of its capacity or the allotted time, which has the effect of creating a new block (the equivalent of turning a page of the book to start a new one).

The blocks are linked to each other by a unique identifier serving as a fingerprint for the next block, making them tamper-proof since a modification of one of the blocks would modify all the blocks that follow.

Cold wallet, a definition of!

marvix.eth

A cold wallet is an offline cryptocurrency wallet that stores your cryptocurrency private keys more securely, away from the internet.

Even if you make transactions from a cold wallet, the wallet confirms transactions in an offline environment.

This process helps keep your private keys away from the internet.

All cold wallets are so-called "non-custodial" wallets, i.e. you are the only one to have access to your private keys and your funds and unless you know your seed phrase (the key recovery of your wallet), no one can access your funds.

DAO, a definition of [AI] Shizenix

A decentralized autonomous organization (DAO) is an organization that operates on a set of

(read above) to establish the rules of governance of the organization.

These established rules are transparent and immutable, as they are written into the blockchain.

The term autonomous characterizes the fact that once deployed, the intended operation can no longer be modified or stopped.

Some parameters can still be modified if they are indicated beforehand in the smarts contracts.

Most often, its modifications are authorized under “democratic” decision by votes of governance.

Mint, a C3DRIC definition

Mint, "hit" in its literal translation, is the action of creating an NFT on a blockchain.

The NFT then becomes visible on the blockchain and is, in fact, traceable, unalterable and inviolable.

The mint is correlated to the signature of a smart contract, validating the creation of the digital object to which it corresponds.

The mint of the NFT can take the form of a random generation, it will then be necessary to wait for the “reveal” phase (its revelation, you will have understood it) to know the details of its NFT and perhaps discover rare traits.

Caution is required during a mint phase.

Indeed, when signing and creating the NFT, authorizations are transmitted.

Ensure the authenticity of the site you are mining on.

Stablecoin, a definition of BenjyBorg

A stablecoin is a cryptocurrency whose value reflects that of a tangible good.

Often representative of a FIAT currency (euro, dollar), the price of a Stablecoin can also be fixed on commodities such as gold, real estate or hay for example.

For a Stablecoin to be considered as such, the company issuing the token must have tangible assets to "ensure" the value of their Stablecoin.

Given the nature of these, volatility is often less present than other types of investments, hence the “stable” connotation of the name.

Token, a definition of Cyprien

The blockchain makes it possible to assign a unique digital identity to any type of asset or object.

The token (in French "jeton") is the means by which an asset is represented in the crypto universe.

A token is therefore a digital asset.

Not duplicable, it can be exchanged between two parties.

It can also give access to a right of use or copyright.

Example: A cryptocurrency can be related to a finance token.

An NFT (non-fungible token) can represent a digital object with unique characteristics such as a serial number.

Wallet, a definition of [AI] Urek Mazino

A wallet allows the storage and use of crypto-assets, the equivalent of a wallet for your fiat currency.

There are two types, the hot and the cold wallet.

Both require: a public key (equivalent to a postal address) and a private key (equivalent to your home key), which allows access to assets.

A (virtual) hot wallet is a crypto wallet that can be connected to the Internet in any way.

A (physical) cold wallet is disconnected.

In 2030, the virtual will have become more than reality

Are the promises of Web 3 tenable?

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