Laisha Wadhwa | OpenToWork Profile picture
Jul 31, 2022 16 tweets 3 min read Read on X
It’s Day 6 of #web3glossary !

F: Fiat, F-NFT**, Fork, Full node**

P.S.: If you’ve recently discovered this thread series- I’ll be sharing easy to understand explanations for web3 jargons and terminologies every day.


There are 3 different types of money: commodity money, fiat money, and bank money

Fiat money = paper money.
It’s a currency established as legal tender, often backed and regulated by a government, such as the US Dollar, the Indian rupee and the Euro
Since it is not tied to a tangible asset, the value of fiat money is dependent on responsible fiscal policy & regulation by the government.
Irresponsible monetary policy can lead to
inflation & even hyperinflation of a fiat currency

We've seen this during the past recessions!
Fractionalized-(NFT /Ownership)

The prices of popular NFTs can run into millions, making them prohibitively expensive for the average buyer. 🫤
Having a small piece of a popular yet expensive NFT is much better than acquiring full ownership of several insignificant ones at the same price, considering the profitability perspective.
Isn't it?
It’s a way of locking an NFT into a smart contract, & then dividing it into fractions that can be issued as fungible tokens.(ERC-721 token is split into multiple ERC-20 tokens)

This lowers the price of ownership & allows artwork & other digital assets to be owned by a community
📌The Doge NFT sale is a real-world example of NFT fractionalization. In June 2021, the Doge meme, , was sold for a whopping $4 million.
PleasrDAO, who purchased the NFT, later offered fractional ownerships of the NFT in $DOG tokens that fans could purchase for as low as $1.
Fractionalized ownership finds its use in multiple other domains such as Metaverse and Real estate💯

F-NFTs can be used to allow groups of investors, or individuals to come together and buy virtual land/ other digital assets within the virtual world.
In real estate F-NFTs (converting real estate to a NFT) allow multiple parties, and not just one, to share the property’s ownership.

We aren’t there yet, but the adoption of this will definitely make investing in real estate easier and more affordable in future.🚀🚀
Full node

Refers to any program/server that downloads the
entire Ethereum blockchain, address states, and validates new blocks.

There are other nodes: light, master, archive etc: More on these coming soon👀
Running your own full node is the only way to have full control & to ensure that all the rules of the blockchain are being followed. It helps the network as full nodes enforce the consensus rules, no matter what.

Miners an eg of servers that run full nodes on the blockchain

It’s a change in a blockchain’s protocol. When a fork happens, the chain splits - producing a second blockchain that shares all of its history with the original one, but is headed off in a new direction.

Fork can be a soft fork or Hard fork
When these changes are minor, it results in a soft fork. It’s like a software upgrade for the blockchain

When the changes are more fundamental, it can be a hard fork...
... leading to the formation of a separate chain with different rules which is no longer backwardcompatible with prev blocks

But, why do we need forks?🤔
Just like our softwares need upgrades, blockchain needs to be upgraded:

📌To add new functionalitoes

📌Address security risks

📌Resolve a disagreement within the community about the cryptocurrency’s current state and direction
Thats a wrap!

I’ll be sharing information on the new vocabulary of the web for next 30 days.

It’s like a free crash course on the terms and methodolgies in Web3.

📌Follow me @laishawadhwa for more such web3 gyaan!

📌RT the first tweet to share with more folks.

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More from @laishawadhwa

Sep 22, 2022
Whether its a brand fight b/w Pepsi & Coca Cola or Nike launching a new shoe collection, brands spend millions of $$ on marketing to win the battle. For brands to hold a prominent position in the eyes of their targeted audience, strategising is vital

Let me ask you question👇👇
How much does an Umbrella cost?
10$ - 12$ maybe

What's the function of an umbrella?
📌To Keep you dry when its raining

There’s a brand called Pasotti, whos’ umbrellas cost anywhere between 250$ - 800$
Obviously a more sturdy, luxurious umbrella, even opening it sounds good💯 Luxurious umbrella worth 375$
But, why would someone pay 500$ for an umbrella when the function is the same?🤔

When people are buying quality, they’re expecting something different. They take better care of it, and since they take better care of it, it lasts longer.
Read 5 tweets
Aug 26, 2022
Gm web3 fam!

Its finally day 26 of #web3glossary🚀
And with this, series has come to an end

Z: zk Rollups

By learning you'll teach and by teaching you’ll learn. Sharing on web3 terms & jargons for the last 1 month was a great learning experience for me and I hope for you too
Let's get to the thread now?

Having to spend $20 or more in gas fees for a single txn is not ideal if you want to complete a DeFi trade

If you've been hearing zk or zero knowledge, you're not alone. It's the next big thing in web3
With an increase in the number of Dapps, ...
there’s a need for faster processing speeds & cheaper txns.

That’s when layer 2 solutions came in.

Zk rollups are also a layer 2 scaling solution that increases throughput on Ethereum Mainnet by moving computation & state-storage off-chain

Read 14 tweets
Aug 23, 2022
Gm web3 fam!

Its Day 25 of #web3glossary

Decentralized networks can only provide 2 out of 3 benefits at any given time in terms of decentralization, security, & scalability Blockchain Trilemma

Let’s look at modular blockchains which aim at solving for scalability & flexibility
We’ll be comparing different modular blockchains today, but first

What’s modular blockchain?🧐
In monolithic blockchains such as bitcoin,Ethereum all the nodes & validators of the network are required to execute the same txns & do consensus on the chain

Modular blockchain..
..focuses on handling a select few duties (consensus, execution, Data availability & settlement) & outsourcing the rest to one or more separate layers

It’s just like separating a system into distinct components that can be combined in various ways to achieve specific objectives
Read 13 tweets
Aug 21, 2022
Hola folks 👋

Its Day 24 of #web3glossary 🚀🚀

Consensus mechanisms ensure that all the txns on the network are genuine & all participants agree on a consensus on the status of the ledger. PoS and PoW are the most commonly known.

Today we look at PoA, PoB, PoC and PoH

Need some background on consensus algos? Check out this thread on PoS vs PoW
Both PoS and PoW have their fair share of pros and cons, let's look at how other cosensus algos differ

PoA: Proof of Activity (not authority)
To verify participants blocks, it combines its tokens to allow both mining and staking. The blocks themselves do not contain transactions
Read 17 tweets
Aug 20, 2022
Gm Gm Web3 fam!

Its Day 23 of #web3glossary

W: WWW,Wrapped token,wei
Do you remember the first time you heard about Blockchain? Maybe you took it as a new technology that would change everything. Maybe you just wondered if you should start investing in crypto.
👀👇 were just getting your head around the concept of a decentralized web
The truth is web3 is indeed the decentralized internet of the future🚀

#web3glossary was started as a series of twitter threads to help people understand this space better and clear the air around...
.. the terms & jargons we hear around. We are almost at the end of the series and I would like to hear from you what value you gained from it and what more would you like to see😃
Until then, let’s get to today’s thread

Let’s go back to where it all started- the world wide web👇
Read 15 tweets
Aug 18, 2022
Gm gm folks 🫡

Its day 22 of #web3glossary 🚀🚀

V: Validators

Validators of blockchain technology aren't only its sower but its rewards reaper too. Let's get to the depth of it🧐

But first, here's some humor to start with
👇👇 Image
What are crypto validators and how do they work?
Crypto validators = Payment processors of the decentralized networks.
Technically, a crypto validator is a participant in a blockchain responsible for verifying txns.
After verifying the legitimacy of the txn, the validator adds.. to the distributed ledger.

Seems like the job of a blockchain validator is not that difficult!
You receive some data, check its accuracy, and validate it or not.
However, on a distributed ledger, it's easier said than done👀👀
Read 15 tweets

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