Do you require a glossary for all the complex technical jargon being used online? What do the terms blockchain, NFT, DAO, and crypto mean?

There has been an increase in terminology used to describe specific technological concepts in recent years. Some of them have been around for a while, such as crypto or even NFTs. In reality, the term “NFT” was first used in 2014, and even now, seven years later, many of us are still unsure of what it means. Others, like as DeFi or DAOs, are still being discussed a lot despite being relatively new.

Reading about concepts might feel like learning a new language, whether you’re new to IT or not. So, TechCabal is developing a glossary of brief explanations for frequently used technical terminology. You can learn NiFTy topics from the short, simple explanations you’ll find in this.

1. Blockchain

It’s critical that this comes first because a couple of the concepts we’ll discuss here are based on blockchain technology.

With the use of a technology called blockchain, it is now impossible to hack the system or alter the data that is kept there.

How it works: Unlike traditional databases, which store data in rows, columns, and files, blockchains store data in chains of interconnected blocks. There is no single computer that can be hacked or used to manipulate the data because the data on the blocks is encrypted, updated continuously, and stored on numerous different computers.

Buchi Okoro, the CEO and co-founder of the African cryptocurrency exchange Quidax, used the analogy of a journal to describe blockchain: “Imagine a book where you write down everything you spend money on each day. Every page functions as a block, and the entire book, which is made up of all the pages, is a blockchain. A blockchain allows for the creation of a single transaction record by ensuring that each bitcoin user has their own copy of the book. Every new transaction is immediately recorded by the software, and all copies of the blockchain are instantly updated with the new data to maintain the accuracy and consistency of all records.

2. Cryptocurrency

Dollars, pounds, and shillings are all familiar currencies. Cryptocurrencies are, after all, digital money. You can still spend it on the things you love, even though you can’t hold it the same way you would hold fiat money like CFA coins or naira notes.

Cryptocurrencies are digital money developed using blockchain technology. You’ll understand what we mean when we claim that cryptocurrencies are decentralized — neither a single individual nor a single government controls them — if you have a basic understanding of what blockchains are. They are produced by algorithms and used to reward engineers who maintain the blockchain, known as miners.

3. Non-fungible token (NFT)

Despite having a name that sounds like it refers to mushrooms, NFTs are inedible, including the flavors. Unique digital assets called NFTs are produced on a blockchain.

How it functions NFTs are, to put it simply, digital creations that are present on blockchain. Images, music, game skins, or even clothing for your digital avatars can be included. These digital works are valuable because they are unique and difficult to copy or counterfeit. If you’re wondering why a screenshot of an NFT is less valuable than the actual NFT, it’s because NFTs contain code embedded in them, which is what allows them to exist on the blockchain.

4. Web3
The term “Web3” is certainly one that you’ve seen tech dudes use frequently. It is the response experts provide in response to the question, “What is the future of the internet?” question “With what does Spider-Man browse the web?”

What, though, is Web3? Web3 is essentially bringing democracy to the internet.

5. Decentralised Autonomous Organisations (DAOs)
Decentralized Autonomous Organizations, or DAOs, are social groups that will develop rules and regulations that will be written into computer programs.

How it works: DAOs are governed by communities — who do not necessarily have to be product developers — in contrast to traditional organizations like TechCabal, which have management and boards of directors that oversee it. DAOs are built by developers who select a set of guidelines and incorporate them into blockchain-based digital contracts that are carried out when specific criteria are met.

The communities decide what should happen to the items connected to that DAO, as well as whether to make changes.

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