✍️Introductory Guide for Newbie Coin Enthusiasts, Part 3 - A Complete Guide to Coin Market Terms 1️⃣Basic Blockchain Structure 1. Blockchain: A technology that distributes and verifies transaction records across multiple computers. (Bitcoin, Ethereum, etc.) 2. Layer 1 (L1): The basic network that serves as the blockchain's core. Directly responsible for transaction records and security. (Bitcoin, Ethereum, etc.) 3. Layer 2 (L2): A secondary network that processes transactions on top of Layer 1, speeding up transactions and reducing fees. (Arbitrum, Optimism, etc.) 4. Testnet: A blockchain network used for testing functionality. It uses fake tokens with no real value. 5. Mainnet: A blockchain network used by real users and assets. An environment where real coins and money are exchanged. 6. Node (Validator): A computer or participant that verifies the validity of transactions and maintains the blockchain network. 7. EVM: The execution environment on which Ethereum runs. EVM-based chains use the same address across different chains. 8. Rollup: A core Layer 2 technology that bundles multiple transactions into a single transaction, increasing speed and reducing fees. 9. On-chain: Transactions or data recorded directly on the blockchain and verifiable by anyone. 10. Off-chain: Activities processed externally, not directly recorded on the blockchain. 2️⃣Coins and Tokens 11. Coin: The basic currency used in blockchain networks. Used for paying fees, storing value, and transferring money (Ethereum on the Ethereum chain) 12. Token: Digital assets issued on existing blockchains (Sandbox on the Ethereum chain) 13. Altcoin: All coins except Bitcoin 14. Stablecoin: Coins whose value is tied to a specific asset, such as the US dollar (Tether, Circle, etc.) 15. Utility Token: Tokens that can be used on specific services or platforms 16. NFT: Tokens that prove ownership and originality of digital assets 17. Minting: The process of issuing new coins or NFTs 18. Burning: The act of permanently destroying tokens. Used to reduce the circulating supply. 19. Inflation: A mechanism where the token supply increases over time. 3️⃣Wallets and Security 20. Wallet: Digital wallets for storing and transferring coins or tokens. 21. Personal Wallet: A wallet where the user manages the keys. Complete control over your assets. 22. Seed Phrase: A secret phrase combination that allows you to restore your wallet. If it's leaked, you could lose your assets. 23. Custody: A method where an exchange or specialized company handles asset storage on your behalf. While this provides less control than a personal wallet, it's relatively safe from hacking risks. 4️⃣ Exchanges and Infrastructure 24. CEX: Centralized exchange. Operated by a company and manages user assets. 25. DEX: Decentralized exchange. Accessible through a personal wallet, users directly manage their assets. 26. PubDeck: Decentralized futures exchange. Accessible through a personal wallet. 27. Gas Fee: Fee paid to process transactions on a blockchain. 28. Bridge: A service that transfers assets between different blockchains. 29. Liquidity: A measure of how easy it is to buy and sell an asset. High liquidity = thicker bids. 30. Funding Fee: The fee paid to balance long and short positions in perpetual futures trading. 5️⃣ DeFi and Revenue Structure 31. DeFi: A system that provides financial services on the blockchain without intermediaries such as banks (DEX, Lending, Staking, etc.). 32. Staking: A method of depositing coins to the network and receiving rewards. Similar to depositing. 33. Farming: The act of depositing assets to a DeFi service to generate additional returns. 34. Liquidation: The process of forcibly closing a position when the collateral value falls below a certain threshold. 35. TVL: The total value of assets deposited in a DeFi service. Used as an indicator of scale. 6️⃣Project and Investment Structure 36. Roadmap: The project's future development plan and schedule. 37. Tokenomics: The structure designing the token issuance amount, distribution method, and intended use. 38. TGE: The point in time when a project first issues tokens. 39. Launchpad: A platform for the initial sale of tokens for new projects. 40. Whitelist: A pre-approved list of participants eligible for minting or token sales. 41. Public Sale: Token sales to the general public. 42. Private Sale: Token sales to VCs or institutional investors. 43. Lockup: A condition that restricts token sales for a certain period of time. 44. Vesting: A method of distributing tokens over time rather than all at once. 45. FDV: Market capitalization assuming all tokens are in circulation. 46. Market Capitalization: The total value calculated based on currently circulating tokens. 7️⃣Web3 Services and Organizations 47. Web3: Blockchain-based A decentralized internet architecture. Users directly own their assets and data. 48. DApp: A decentralized application that operates on a blockchain. 49. DAO: A decentralized organization governed by token holder voting. Decision-making is carried out by the community. 50. Governance: A structure that determines the project's direction through community voting. 51. Foundation: An organization responsible for the development and operation of a project. 52. Ecosystem: The entire suite of projects running on a specific blockchain. 8️⃣ Risks 53. Oracle: A system that transmits information outside the blockchain to the blockchain. 54. MEV: Additional benefits for validators or participants by manipulating the transaction order. 55. Sybil Attack: A single person creates multiple accounts to increase rewards. 56. Scam/Rugpool: A fraudulent project where developers disappear after raising funds. 57. FUD: Information that spreads fear, uncertainty, and doubt to sway market sentiment. 9️⃣ Regulations and Systems 58. KYC: A process for verifying identity to use a service. 59. Travel Rule: A regulation requiring the sharing of sender and recipient information when transferring funds. 60. STO: Security Token Offering (a tokenized version of stocks, funds, etc.) (things) 61. RWA: Tokenized real assets such as real estate, stocks, bonds, and gold 62. Neobank: Next-generation digitally oriented banks 🔟Market and Trends 63. VC: Venture capital firms investing in early-stage projects 64. Market Makers: Entities that continuously provide liquidity to facilitate trading 65. GIMP: A phenomenon in which Korean exchange prices are higher than those of foreign exchanges 66. Counter-Public Profits: A phenomenon in which Korean exchange prices are lower than those of foreign exchanges 67. DCA: A method of consistently investing a fixed amount regardless of price 68. Narrative: A story or theme that attracts market attention at a specific time 69. DePIN: A network that decentralizes real-world infrastructure 70. DeFAI: An automated financial structure that combines DeFi and AI 71. Prediction Market: A market for betting on the outcome of future events 72. AI Agent: Autonomous AI that achieves goals without human intervention 73. Abstraction: Technology that simplifies the process of using Web3 to improve the user experience 74. Mass Adoption: The stage where cryptocurrencies become widely available to the general public. 75. OI: Open Interest. The total amount of open futures positions that have not yet been settled.