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Some wording you gotta know.
1. Cross-Chain Bridge
🌉 A protocol that enables asset transfers between different blockchains.
> “A digital bridge that moves your funds from Ethereum to Avalanche.”
Risk: If hacked, funds on both chains could vanish.
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2. Sidechain
🛤 A separate blockchain that runs independently but is connected to the main chain.
> “Like a side road with its own traffic lights next to the main highway.”
Example: Polygon PoS Chain.
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3. State Channel
An off-chain transaction channel between two parties. Only the opening and closing transactions are recorded on-chain.
> “Like having a long conversation on WhatsApp but only writing the summary in the ledger.”
---
4. Oracles
🔮 Services that allow blockchains to access external data.
> “The eyes and ears of the blockchain.”
Example: Chainlink, Pyth.
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5. Sharding
🧩 A method of splitting a blockchain into smaller pieces to process transactions in parallel.
> “Instead of one person writing the whole ledger, each person writes a section.”
---
6. Governance Token
🏛 Tokens that grant voting rights in project governance.
> “The ballot paper of a DAO.”
Example: UNI, AAVE.
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7. TVL (Total Value Locked)
📊 The total value of assets locked in a DeFi protocol.
> “The total money stored in the vault of an exchange.”
---
8. Airdrop Farming
🚜 A strategy of actively using protocols to maximize the chance of receiving future token rewards.
> “Planting seeds now to get free tokens later.”
---
9. Token Burn
🔥 Permanently removing tokens from circulation to reduce supply.
> “Burning money so the remaining tokens become more valuable.”
---
10. Layer 0
🛠 The foundational layer that provides infrastructure for multiple blockchains.
> “The blockchain of blockchains.”
Example: Polkadot, Cosmos.
Some wording you gotta know.
1. Cross-Chain Bridge
🌉 A protocol that enables asset transfers between different blockchains.
> “A digital bridge that moves your funds from Ethereum to Avalanche.”
Risk: If hacked, funds on both chains could vanish.
---
2. Sidechain
🛤 A separate blockchain that runs independently but is connected to the main chain.
> “Like a side road with its own traffic lights next to the main highway.”
Example: Polygon PoS Chain.
---
3. State Channel
An off-chain transaction channel between two parties. Only the opening and closing transactions are recorded on-chain.
> “Like having a long conversation on WhatsApp but only writing the summary in the ledger.”
---
4. Oracles
🔮 Services that allow blockchains to access external data.
> “The eyes and ears of the blockchain.”
Example: Chainlink, Pyth.
---
5. Sharding
🧩 A method of splitting a blockchain into smaller pieces to process transactions in parallel.
> “Instead of one person writing the whole ledger, each person writes a section.”
---
6. Governance Token
🏛 Tokens that grant voting rights in project governance.
> “The ballot paper of a DAO.”
Example: UNI, AAVE.
---
7. TVL (Total Value Locked)
📊 The total value of assets locked in a DeFi protocol.
> “The total money stored in the vault of an exchange.”
---
8. Airdrop Farming
🚜 A strategy of actively using protocols to maximize the chance of receiving future token rewards.
> “Planting seeds now to get free tokens later.”
---
9. Token Burn
🔥 Permanently removing tokens from circulation to reduce supply.
> “Burning money so the remaining tokens become more valuable.”
---
10. Layer 0
🛠 The foundational layer that provides infrastructure for multiple blockchains.
> “The blockchain of blockchains.”
Example: Polkadot, Cosmos.
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