DEFINING BLOCKCHAIN & DIGITAL ASSETS

It’s an abbreviation of decentralized finance, an umbrella term for the global financial system enabled by public blockchains. Instead of relying on centralized intermediaries like banks, stock exchanges, or brokers, DeFi services use smart contracts—self-executing software of encoded rule sets that network participants can inspect and audit for authenticity—to record transactions and transfer funds.

Based on blockchain technology, cryptocurrency is a decentralized medium of exchange or store of value designed to enable online transactions without the need for a trusted third-party intermediary. Instead, it uses cryptography to secure and verify transactions, as well as to control the creation of new units of a particular digital currency.

A non-fungible token (NFT) is a unique, cryptographic unit of data that exists on a distributed ledger and cannot be replicated. Individual NFTs are not mutually interchangeable, which means no two are the same. They can represent digital media or real-world, tangible items like artwork and real estate, which makes buying, selling, and trading them more efficient while reducing the probability of fraud. NFTs can also represent things like identities, property rights, or even a bundle of rights—all encoded into digital contracts or attestations.

Web3 refers to a decentralized, blockchain-based online ecosystem posited to be the next iteration of the World Wide Web. Platforms and apps built on Web3 aren’t owned or governed by a central authority; rather, they are owned by network participants who earn their ownership stake by helping to develop and maintain those services.

It’s the process of converting, through symbolic representation or encoded rule sets and attestations, something of value into a digital token that can be transacted on a blockchain. These tokens can represent tangible assets, like gold, real estate, and art; or intangible assets, like voting rights, ownership rights, or content licensing.

It’s a digital representation of an asset that has been issued on an existing blockchain. A token can be a unit of cryptocurrency, but it doesn’t have to be. It can be a unit of utility or access, too. Tokens are not mined like cryptocurrency; they are minted in quantities determined by the issuer or issuing project.

Decentralized applications (dApps) are digital applications or programs built on peer-to-peer blockchain networks. They use open-source code and operate on distributed protocols, which means users can view, audit, and verify how they work and directly engage with them without the need for access credentials.

It’s a distributed ledger that cryptographically enables digital assets to be created, stored, transferred, and transacted in a real-time, immutable manner across a decentralized peer-to-peer network. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved. The technology can record information about cryptocurrency transactions, NFT ownership, or DeFi smart contracts.

The metaverse is a network of 3D digital spaces that combine aspects of social media, online gaming, augmented reality, virtual reality, and cryptocurrency to enable users to interact and transact in a rich virtual environment.

A decentralized autonomous organization (DAO) is a web-native, self-governing entity that executes the rule sets established by the member community. DAO member communities are groups of people who agree to abide by certain rules for a common purpose. Those rules are then written into the code of the organization via smart contracts, which form the basis of the DAO’s self-governance.

They are representations of value that are generated and stored digitally. These assets can be cryptocurrencies, NFTs, or other digital tokens that represent value or utility.