Trendy terms to know

For the uninitiated, some common definitions that are now trending.

Web 3.0

The concept for the next iteration of the internet that is based on blockchain technology and is more decentralized.


Cryptocurrency

These currencies are minted on blockchain with limited supply in the market and can be traded or converted to fiat currency. It is decentralized meaning it can exist without a central bank nor is it backed by governments. Its advantages include transaction security, high levels of transparency and the elimination of intermediaries like banks or brokers. On the other hand, the virtual currency is less credible than hard cash or digital money in bank accounts. Its value fluctuate wildly and some even say this is a passing fad and should be regulated. Crypto can function as a medium of excha nge, a unit of account, ora store of value secured by encription. Some even consider it a software. From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies currently in the market.


NFT
Non-Fungible Tokens are digital assets that represent ownership of a virtual item like an artwork or video game avatar using blockchain, the same technology as cryptocurrency.


Fiat currency

Legal tender whose value is tied to a government-issued currency, like the U.S. dollar.

Central bank digital currencies (CBDC)
CBDCs are digital forms of currency issued by the government.


Stablecoin
A type of cryptocurrency usually tied to the dollar or a commodity such as gold.

Decentralised autonomous organisation (DAO)
A radical new governance structure which is decentralised. It is without a leader; instead, it functions according to the incentive structure coded onto the blockchain. Being leaderless means there is no central point of failure, nor is there a decisional bottleneck.


Smart contracts
A piece of code on the blockchain that selfexecutes when a preordained condition is met. For instance, a smart contract could be written up to automatically buy a certain asset at a certain date or when it hits a predetermined price point. Such automated activities reduce employee size while providing outsized value.

 

 

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