A guide to terms to understand the hottest trends in the crypto space and their evolution this new year. *** During 2021, the digital currency currency is a medium of exchange that defines value. universe experienced accelerated growth, with many trends emerging and not-so-new ones gaining strength. We saw Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and cryptocurrencies dipping into the mainstream as trends such as NFTs, gaming Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and the metaverse, concepts that expanded to reach the global technological sphere. However, this rapid technological evolution is accompanied by a range of new terms with which we are often unfamiliar, and which can initially be complex to understand. In this issue, DiarioBitcoin presents a brief guide to some of the concepts that became popular last year and are likely to shape the crypto space this 2022.
Originating in the science fiction literature of the 1990s, the term metaverse refers to the convergence of the physical and virtual worlds in an online space. This recent development leverages technologies such as virtual reality headsets, augmented reality and NFT, to offer users virtual spaces for social interaction, commerce, entertainment, among other things. Although the concept has exploded in the wake of the renaming Facebook to Meta In the future, technologists are still trying to agree on the different versions of the metaverse and what it will mean in the future. Some say it is an evolution of the Internet where the applications and websites we use today will be replaced by 3D environments, and where digital assets will play a crucial role. In this aspect, some financial experts anticipate that the metaverse will become a multi-billion dollar industry . Below you can get a glimpse of what the anticipated Facebook metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. might look like:
2. NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility.
NFT stands for non-fungible token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. in Spanish: token non-fungible. In simple terms, this concept refers to a non-exchangeable asset, such as a dollar, a Bitcoin or even a car tire. Instead, it’s a scarce digital asset based on Blockchain which is comparable to an object of a collectible or limited nature, such as a baseball autographed by well-known athletes or a valuable work of art. An NFT can represent basically any digital (or physical) object: a song, a photograph, a tweet A video, a JPG, and even genetic code; the possibilities are almost endless. The important thing you should know is that this format of token scarce works like a certificate that allows you to prove ownership, but in a nutshell, it is nothing more than a digital signature on the blockchain. In this opinion article you can find some interesting considerations about this growing trend: Eternal beauty in NFT format: Reflections on forgery in art
The term tokenization refers to the process of creating a token digital digital technologies are these electronic tools that have the ability to generate, store or even process data. specifically an NFT. The concept is frequently used to describe the process of converting an object (physical or virtual) into a scarce digital asset in the Blockchain . Tokenization can facilitate the registration, traceability, ownership and certification of virtually any type of asset; it can be stocks, real estate, debt, bonds, copyrights, art, collectibles, and even food or agricultural and livestock products. This blockchain-enabled capability can also enable, for example, the fractional purchase of property.
4. GameFi gameFi, better known as play-to-earn (P2E) games, is a rather new term in the field of both gaming and cryptocurrency industries. It references games that are designed with economic and financial aspects of blockchain and cryptocurrencies, enabling players to exert full control over their in-game assets to generate revenue.
Acronym for “ Game Finance “GameFi is a concept that refers to the combination of decentralized gaming and finance (DeFi). This development gained a lot of popularity during 2021 as video games such asAxie Infinity took over the cryptosphere. The term is intrinsically related to DeFi, a decentralized version of the financial services based on Blockchain . GameFi comprises various developments, such as NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). and DAOs, to allow players to earn money while playing or interacting with other users online. NFTs are a crucial ingredient in GameFi, as it enables players to maintain ownership within the game and monetize their activities within that space.
Play-To-Earn is currently the most popular game mode in the video game sphere. Blockchain . As its term (“Play-To-Win”) implies, the model allows players to earn money while having fun, primarily through NFTs and tokens native to gaming platforms that users can lock down or dispose of as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. to generate performance in a process widely known as staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. (participation). The various items in these games are tokenized, which makes it easy for users to exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. and trade them in online marketplaces, thus enabling the generation of profits.
6. Web 3
Similar to the metaverse concept, the notion of Web 3.0, or simply Web 3, has also attracted widespread attention in recent months. As such, the term refers to a possible next phase of the Internet which promises to be a decentralized version of the web based on technology Blockchain and cryptocurrencies. Theoretically, in Web 3, tech giants such as Google, Amazon y Facebook will no longer have control of the data, allowing web users to enjoy greater autonomy, freedom and security. In addition, this development promises to give netizens greater interconnectivity between different social networking platforms. However, industry experts are still trying to agree on how this evolved version of the web could be built, as well as what its possible implications might be. A few days ago, some prominent figures in the tech sphere shared a heated discussion about it: Jack Dorsey and Elon Musk spark contentious Web3 dispute on Twitter
7. DAO decentralized autonomous organization, system of rules that define how a decentralized organization should operate and which actions it should take.
This is the acronym for Decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. Autonomous Organization in English decentralized autonomous organization. DAOs are groups of people on the Internet that are organized through the power of smart contracts and blockchain. In simple terms, this model of community is organized through code the action of coding is to write programming statements for a program. programmed in the Blockchain which would represent the rules of the group. DAOs exercise governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. through tokens that allow members (or holders) to vote to decide aspects such as structure or the implementation of internal changes. Many ecosystem advocates claim that Bitcoin was the first DAO to exist. More recently, with the explosion of DeFi, this form of decentralized organization has started to become popular. Today, there are many types of DAOs, with different purposes. Some specialize in the collective investment of art, physical and digital items, such as PleasrDAO , pero there is everything and up to Elon Musk’s brother has a .
8. Memecoin memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders.
Cryptocurrency memes, memecoins or memecoins tokens meme are three concepts that refer to the same thing: digital currencies whose image is based on a joke, or literally a meme. Dogecoin ( DOGE ) is based on the famous meme of the Japanese Shiba Inu puppy dog and is perhaps the most popular meme cryptocurrency on the market. Launched in 2013, DOGE emerged as a joke that aimed to make cryptocurrency more accessible to those less experienced. In 2021 we saw an explosion of memecoins and a bunch of tokens dog-themed coins took over cryptocurrency space. Coins inspired by puppies, memes and Elon Musk emerged as Shiba Inu ( SHIB ), Dogelon Mars (ELON), Floki Inu (FLOKI) that tried to capitalize on the sudden commercial success of DOGE. Although they grew explosively, these assets have proven to be highly volatile; but the memecoins trend doesn’t seem ready to leave the crypto-sphere just yet.
9. Altcoin as Bitcoin is the first cryptocurrency that captured the world’s imagination, all other coins were subsequently termed “altcoins,” as in “alternative coins.”
The term altcoin is widely used in the digital currency ecosystem, especially in the trading arena. The word is an acronym for “ alternative coins “or alternative currencies and refers to any cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. other than Bitcoin . In this sense, Ethereum a decentralized open-source blockchain with smart contracts functionality. is the most important altcoin in the ecosystem, in terms of adoption and market an area or arena, online or offline, in which commercial dealings are conducted. cap. Many community enthusiasts often use the term to refer to lesser coins relative to their market cap ranking. To a large extent, 2021 was the year of altcoins. Beyond Bitcoin The digital currencies market experienced significant growth, with many altcoins registering higher yields and investment returns than the main cryptocurrency.
DApp decentralized application, digital application that runs on a blockchain network and does not rely on a single computer. DApps are free from the control and interference of a central authority. is short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. for “Decentralized App”, a term that refers to technology-based applications. Blockchain o redes peer-to-peer (P2P). Due to their decentralized nature, these types of applications cannot be controlled by a central entity, as is the case with popular applications such as Uber o Instagram . While they are not new, dapps seem to be becoming especially popular amidst the attention that evolving Internet developments such as NFTs, games, and other Internet technologies are getting. Blockchain the metaverse and the Web3. In light of these advances, some enthusiasts anticipate that, in the future, most of the applications we use today will – como Twitter – will be decentralized.
If you want to know more concepts, we suggest you to visit our sections Glosario y Cripto 101 . To learn more about the trends that defined 2021 and what developments to expect this year in the digital currency universe, we recommend our series of articles: 2021 crypto ecosystem milestones to look out for in 2022 ( Parte I ), ( II ) y ( III ).
- Top 10 trends shaping the crypto space in 2021
- 2021 in numbers: growth and achievements of the cryptocurrency industry this year
- Two experts, Arthur Hayes and Raoul Pal, predict 2022 will be a better crypto year and give advice to investors
Article by Hannah Estefania Perez / DiarioBitcoin Imagen de Unsplash