It's time for some new crypto words! Here we are with Part 4 of these series. Maybe you have already meet some of these words in different contexts and were strange to you or if it's for the first time you see them even better that you have the chance to understand them.
1. NFT = Non-Fungible Token - it's a cryptocurrency token that represents an unique asset either real-word (eg. piece of land) or digital asset (eg. weapon in a game); in general NFT's are unique, indivisible and scarce; eg. in the Ethereum blockchain you can create NFT's using standards ERC-721 and ERC-1155; you can take a look at CryptoKitties;
2. ERC-721 = it's an Ethereum standard for NFT's; basically it's a subset of Ethereum tokens;
3. ERC-1155 = it's an Ethereum standard for contracts that manage multiple token types; you can create both fungible (eg. currencies) and non-fungible assets on Ethereum Network; the cost of transferring token is reduced because using this standard transactions could be bundled together;
4. ERC-20 = standard protocol for Ethereum issuing tokens; it comes from Ethereum Request for Comments; it governs the tokens on the Ethereum blockchain;
5. ETHER = it's the fuel of Ethereum; the transactional token on the Ethereum smart contracts;
6. WEI = GAS = smallest denomination of Ether, 1 Ether = 1,000,000,000,000,000,000 Wei (10-18); you can seen it as a fee for transactions;
7. GWEI = it measures the cost of gas for transactions on Ethereum network;
8. ROADMAP = it's a plan where we can see the future and the past achievements of a project; also we can know what are the next features to be implemented;
9. ROI = Return On Investment - it's a performance measure that evaluates the efficiency of an investment; it has also a formula: ROI = (value of investment - cost of investment) / cost of investment;
10. SOLIDITY = programming language to implement Smart Contracts (eg. used in Ethereum Smart Contracts, but not only);
11. XBT = another abbreviation for Bitcoin (BTC), it's an official ISO 4217 standard (International Organization for Standardization);
12. YIELD FARMING = it is described as a process that can generate most return of your crypto investment; it's something like "put the money work for you"; DeFi has a big role here as it can make possible yield farming;
13. FAUCET = it's an application or an website that helps to increase awareness of a project by offering free coins for some cryptocurrencies;
14. OPEN SOURCE = the code is public and anyone can access it; programmers can understand what's happening "behind the scenes" and they also can find bugs in the code or vulnerabilities;
15. PONZI SCHEME = it's an illegal scam where are promised big profits for investors; usually early investors are paid with money from later investors;
Hope you have learned something new today. Please take into consideration to read also Part 1, Part 2 and Part 3 (links down below in the Resources section) where you can find other interesting crypto words.
Let me know in the comments what words were new to you, if any.
Thanks for reading and have a nice day,