# Information you need or don't need about web 3 - 4

> Some web 3 words you need to know what they mean...

**Published by:** [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/)
**Published on:** 2025-08-30
**URL:** https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/information-you-need-or-dont-need-about-web-3-4

## Content

Layer 2 🧩 Additional layers built on top of the main blockchain, making transactions faster and cheaper. “Side roads that ease Ethereum’s traffic jam.” Example: @arbitrum, @Optimism, @zksync.zk-Rollup (Zero-Knowledge Rollup) 🔒 A solution that bundles multiple transactions into one and records it on the main chain, combining privacy and scalability. “The wizard who knows everything but tells nothing.”MEV (Maximal Extractable Value) 🚨 The extra profit miners or validators can make by reordering transactions. “If the block producer sneaks in their cousin’s transaction first: that’s MEV.”Flash Loan ⚡ Borrowing without collateral, provided it’s repaid within the same block. “If you’re smart enough, one line of code could make you millions… but the risk is huge.”Reentrancy Attack 🐛 A hack where someone repeatedly re-enters a smart contract to drain funds. “Leave the door open, and keep going back inside to steal money!”Tokenomics 📊 The economic model of a token: supply-demand balance, distribution, vesting periods, etc. “The hidden economics class behind a coin.”Liquidity Pool (LP) 💧 A pool where users lock tokens to provide liquidity for swaps. “Like an exchange vault: you put tokens in, trades happen, and you earn fees.”Slippage 📉 The difference between the expected price and the executed price. Hurts especially in low liquidity. “The risk of moving the price with a single click in a low-volume coin.”Wrapped Token (e.g., WBTC) 🎁 A tokenized version of an asset on another chain. The original is locked, and you use its wrapped copy elsewhere. “The indirect, packaged way of using BTC on Ethereum.”Impermanent Loss 📉 When a liquidity provider ends up with less value due to price fluctuations of the pooled tokens. “If your coins don’t stay put, providing liquidity could turn into a loss.”

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