# Information you need or don't need about web 3 - 7

**Published by:** [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/)
**Published on:** 2025-09-05
**URL:** https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/information-you-need-or-dont-need-about-web-3-7

## Content

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 connected to the main chain but running with its own rules. > “Like a side road with its own traffic lights, next to the main highway.” Example: Polygon PoS Chain. --- 3. State Channel 📡 An off-chain channel for transactions between two parties. Only the opening and closing are recorded on-chain. > “Having a long chat on WhatsApp, but only writing the final summary into the ledger.” --- 4. Oracles 🔮 Services that bring external data into blockchains. > “The eyes and ears of the chain.” Examples: Chainlink, Pyth. --- 5. Sharding 🧩 A method of splitting a blockchain into smaller parts to process transactions in parallel. > “Instead of making one person write the entire ledger, you divide the pages among many.” --- 6. Governance Token 🏛 A token that gives holders voting rights in a project’s decision-making. > “The ballot paper of a DAO.” Examples: UNI, AAVE. --- 7. TVL (Total Value Locked) 📊 The total value of assets locked in a DeFi protocol. > “The amount of money stored in a protocol’s vault.” --- 8. Airdrop Farming 🚜 A strategy of actively using protocols to maximize chances 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 becomes more valuable.” --- 10. Layer 0 🛠 The foundational layer that enables interoperability and infrastructure for multiple blockchains. > “The blockchain of blockchains.” Examples: Polkadot, Cosmos.

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