Basic terms
Web 3
Web3 is the next iteration of the internet imagined by blockchain enthusiasts. From the invention of the internet until around 2005, Web1 was the read-only internet. Web2 refers to the emergence of users being able to produce content and upload it to the internet. Web3 will be an internet with integrated blockchain. Imagine having your posts from social media as an NFT, using a Cryptocurrency like Ethereum as a universal currency, and having your wallet as a form of ID instead of an email/password combination.
PoA
Proof of authority is a consensus mechanism in which a centralized authority controls who can verify transactions based on reliability records in a blockchain network.
PoS
Proof of stake is a consensus mechanism that requires participants to stake their cryptocurrency in order to become validators of transactions within the blockchain network. In return for the pledge, these validators have the opportunity to validate transactions in order to earn more Cryptocurrency as a reward.
PoW
Proof of Work is the consensus mechanism used by Bitcoin and is one of the most commonly used consensus protocols in blockchain networks. In PoW, miners compete to solve complex mathematical problems, add blocks to the blockchain ledger, and receive rewards for their work from the network.
DYOR
DYOR stands for "Do Your Own Research". In Cryptocurrency, it is often used to remind investors to review projects before investing.
FOMO
FOMO is an acronym for "fear of missing out" in Cryptocurrency, which refers to the fear of traders or investors that they may miss out on a potentially lucrative opportunity. It is seen as the main driver of the rapid rise and fall of Bitcoin prices in 2017.
This fear drives individuals to act impulsively and make investment decisions based on emotion rather than logic and reasoning. FOMO can strongly affect Cryptocurrency prices and cause large fluctuations in the crypto market. It can also lead to greater financial losses for investors.
EVM
The Ethereum Virtual Machine is a virtual environment that can facilitate the execution of smart contracts and manage their internal state.
FUD
FUD is a marketing and communications term that stands for "fear, uncertainty, and doubt." It is a psychological strategy to influence people to have a negative view of something (such as a product, market, or brand), usually by spreading misinformation or stoking fear.
In cryptocurrency, FUD is generally divided into two categories:
1. Deliberately stoking general fear, uncertainty, and doubt about a particular item in order to manipulate a decline in prices.
2. The widespread skepticism about crypto as an asset class may lead to the spread of exaggerated negative sentiment or "fake news" about the topic.
FUD, whether intentional or unintentional, affects the market value of a token, company, or project - or even the entire market. It can be considered the opposite of FOMO. When the market goes up, individuals may develop FOMO sentiment; when the market cools down, FUD spreads more easily.
NFT
An NFT, or non-fungible token, is a digital asset that grants ownership of a virtual good, such as a piece of digital art or an online collection.
Token
Refers to the unit of digital currency, such as Bitcoin.
To The Moon
If someone says go to the moon or release a rocket emoji, it means that they think the price of cryptocurrency will increase significantly.
Mint
The process of NFT first appearing on the blockchain.
OS
Opensea, for short, is currently the largest NFT trading market.
PFP
Profile Picture Abbreviation, personal avatar.
Diamond hands
Chinese diamond hand refers to the behavior of holding on regardless of the downturn in the market.
Floor
Refers to the lowest price for purchasing this NFT series in the secondary market, that is, the floor price, such as APE floor 99ETH.
GM
The acronym GM stands for "Good Morning". In Cryptocurrency, it is used to promote positivity, greet others, and build camaraderie online. Members of the Twitter community, in particular, regularly start their day with a GM tweet, while followers usually tweet back to GM's reply.
HODL
HODL is an abbreviation for "hold on for dear life", actually derived from the misspelling of "hold", it has always existed and now means "hold". It refers to a buy and hold strategy. Therefore, Cryptocurrency traders who buy coins and do not intend to sell them in the foreseeable future are called "hodlers" of coins.
The term originated in a Bitcointalk forum online post in 2013, where a misspelling first appeared. Essentially, hodler aims to weather the various ups and downs of the market with an eye on long-term gains.
Short-term market movements will not sway holders, even if the entire market crashes or becomes severely volatile. Instead, out of confidence in the long-term value of Cryptocurrency, hodlers will hold their positions regardless of price.
IYKYK
IYKYK is an acronym for "if you know, you know, you know". This means that a post or message will only make sense to a few people. Acronyms can also be used sarcastically to mock people who share well-known information.
LFG
LFG stands for "let's f-ing go!". Used to express excitement about a project.
NGMI/WAGMI
NGMI stands for "Will Not Succeed". In Cryptocurrency, it is often used as a prediction of future failures due to wrong decisions (for example, selling at the bottom despite all market indications that the value of the token is in an upward trend). It can also be used as a hashtag to mock those who oppose Cryptocurrency or do not understand basic Cryptocurrency concepts.
On the other hand, WAGMI stands for "We will all succeed". The acronym is widely used by the crypto community to inspire enthusiasm and confidence in the project. It is also used to encourage the community to support each other and not lose hope.
Mainnet
A blockchain protocol for public use will be put into the mainnet. This distinguishes it from the testnet, which is more like a beta release of the blockchain protocol.
Memecoins
Many Cryptocurrencies aim to provide utility programs or services for the purpose. Memecoins do not offer practical prospects and exist purely as speculative assets. Dogecoins are the most well-known, but there are many, many more.
Seed phrase
When you create a Cryptocurrency wallet, you get a 12-word seed phrase. A mnemonic is required every time you log into the wallet on a new device. Never give your mnemonic to anyone.
Address
An address is a string of characters used as a place where individuals can receive, store, or send cryptocurrency. Just like a phone number or zip code, each encrypted address is unique.
Altcoin
Counterfeit products refer to all non-Bitcoin Cryptocurrencies. The phrase is actually used to describe various other Cryptocurrencies.
Bitcoin minimalist
Bitcoin minimalists refer to people who believe that Bitcoin is the only valuable Cryptocurrency. Coin circle
Refers to people who focus on investing in encrypted assets and even publishing their own encrypted asset financing (ICO). Generally speaking, blockchain project parties, exchanges, and blockchain media all belong to the currency circle.
All in
It is the transliteration of Show Hand in English. It was originally a noun in gambling games, the act of taking out all the available chips in the hand at one time. By extension, encrypted asset investment refers to investing all of your available assets, which has a meaning of "betting on your net worth".
Buddhist style holding coins
It means that after holding the coin, you don't care about the price trend of Cryptocurrency. No matter how much the price of Cryptocurrency assets falls, you will not reduce the amount of Cryptocurrency in your hands.
Airdrop
It refers to the blockchain project that issues a certain number of tokens to users for free for promotion or marketing. This behavior is called airdrop, and the tokens sent are called candy.
White paper
The project introduces the official professional version.
Whitelist
Pre-sale listings for Cryptocurrencies and NFTs. Investors listed in Whitelist can purchase assets before they are publicly published, sometimes at discounted prices.
BLOCK
A block is a component of the blockchain that contains files that complete transaction information within a given time period.
ERC-20
A simple interface that allows for the creation of tokens on Ethereum, which can be reused by other applications, from wallets to decentralized exchanges.
ERC-721
Defining non-fungible tokens (NFTs) on Ethereum allows anyone to create completely unique tokens.
IMMUTABLE
Data cannot be changed by anyone after creation, which is the core defining feature of blockchain.
INTEROPERABILITY
The ability to view and share information across multiple blockchains.
LAYER 2
A scalable solution that promotes mass adoption of the Ethereum platform, providing tools to create scalable dapps that prioritize performance, User Experience, and security.
Blockchain fork
It means that after a new block is mined, the blockchain system will generate a new protocol, and this protocol is difficult to be compatible with the old protocol. At this time, a fork is needed to solve it. It includes hard forks and soft forks.
Hard fork
It means that when the blockchain code is changed, the node that has not been upgraded refuses to verify the block produced by the upgraded node, but the upgraded node can verify the block produced by the unupgraded node, and then everyone continues the chain they think is correct, so it is divided into two chains. In the most famous "hashrate war", BSV hard forked with BCH.
Soft fork
It means that after the release of the new consensus rules, since the new rules of the soft fork still conform to the old rules, nodes using the old version can verify the blocks produced by the new version of the node, and nodes using the new version can also Verify the blocks produced by the old version of the node, and the two versions are compatible. Taking Bitcoin as an example, the soft fork was used in the upgrade of Bitcoin SegWit in 2017.
51% attack
It means that the computing power accounts for 51% of the total network computing power, and a longer chain is generated by the computing power advantage to "roll back" the "transaction behavior" that has already occurred. In theory, if you master more than 50% of the computing power, you have the absolute advantage of obtaining the right to keep accounts, you can generate blocks faster, and you also have the right to tamper with blockchain data.
Conclusion
The crypto space continues to grow, so it's important to have a good understanding of some popular acronyms so you know what's being said.
All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial or other advice. Nothing contained herein constitutes a recommendation or endorsement to invest in, buy or sell any coins, tokens or other crypto assets. Returns from buying or selling crypto assets may be subject to taxes in your jurisdiction, including capital gains taxes.
When evaluating crypto assets, you must conduct research and due diligence to make your best judgment, as any purchase is your own responsibility.
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