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

**Published by:** [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/)
**Published on:** 2025-08-29
**URL:** https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/information-you-need-or-dont-need-about-web-3-3

## Content

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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