🔐 Web3, Blockchain & DeFi — PREMIUM GLOSSARY + CHEAT SHEET
📘 Ultimate Web3, DeFi & Blockchain Glossary and Cheat Sheet Deepen your foundation and stay sharp in crypto. Rooted in DeFi Llama metrics and expanded with must-know Web3, DeFi, and investing terms. Perfect for beginners and pros alike. Bookmark this post. 🔤 Key Terms (Beginner-Friendly) Blockchain – A decentralized digital ledger. Tamper-proof and transparent. Cryptography – The encryption that keeps blockchain data secure. Proof-of-Work (PoW) – Energy-heavy, miner-based transaction validation (used by Bitcoin). Proof-of-Stake (PoS) – Energy-efficient validation through token staking (used by Ethereum). Smart Contract – Self-executing code on the blockchain. Automates agreements. dApp – Decentralized app that runs on blockchain (e.g., Uniswap, Aave). Token – Any digital asset issued on a blockchain. Can be currency, utility, or governance. Cryptocurrency – A digital currency (e.g., BTC, ETH) used for transactions. Commodity Token – Token tied to real-world assets like gold or oil. Asset – Anything of value on a blockchain (tokens, NFTs, crypto, real-world assets). Composable – Protocols that stack together like Lego blocks (aka “money Legos”). DAO – A decentralized organization run by token-holder voting instead of executives. CEX – Centralized Exchange (e.g., Coinbase). Easier to use, requires trust. DEX – Decentralized Exchange (e.g., Uniswap). Fully on-chain, non-custodial. Stablecoin – A crypto pegged to fiat (like USD). Examples: USDT, USDC, DAI, FRAX. DeFi – Decentralized finance. Tools for trading, lending, borrowing—without banks. Protocol – A smart contract system or platform (e.g., Aave, Compound, Curve). 📊 Metrics & Mechanics TVL (Total Value Locked) – How much money is deposited into a DeFi protocol. Fees / Revenue / Treasury / FDV – Core DeFi Llama metrics to evaluate a protocol. AMM (Automated Market Maker) – Algorithms for setting token prices in DEXs. Liquidity Pool – A pair of tokens locked in a smart contract to enable trading.