# Information you need or don't need about web 3 - 3

By [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd) · 2025-08-29

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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.”

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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.”

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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.”

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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.”

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9\. Token Burn

🔥 Permanently removing tokens from circulation to reduce supply.

  

\> “Burning money so the remaining tokens become more valuable.”

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10\. Layer 0

🛠 The foundational layer that provides infrastructure for multiple blockchains.

  

\> “The blockchain of blockchains.”

Example: Polkadot, Cosmos.

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*Originally published on [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/information-you-need-or-dont-need-about-web-3-3)*
