Question 1

ALTCOIN

Accepted Answer

An altcoin is any cryptocurrency other than Bitcoin. The word Altcoin is a blend of the words "alternative" and "coin." These would include all coins and tokens you have heard of, including Ethereum, Dogecoin, XRP, Pepe, and others. Any alternative coin to Bitcoin.

Question 2

BITCOIN

Accepted Answer

Bitcoin is a digital currency based on blockchain technology. It uses security measures (encryption) called "cryptography." Bitcoin is the first and most well-known cryptocurrency. It was launched by Satoshi Nakamoto in January 2009. You can find Satoshi's original Bitcoin White Paper here.

Question 3

BLOCKCHAIN

Accepted Answer

A blockchain is specific computer code that is shared among a vast network of computers. Blockchain works as a database to store information electronically in digital blocks. Once a block is full it gets added to the chain of blocks before it. That is where the name comes from. Blockchains are best known as the foundation of cryptocurrencies, such as Bitcoin.

The beauty of blockchain technology is that it guarantees the accuracy and security of each data record on the chain, and generates trust between users without the need for a trusted third party (like a bank). Once a transaction is recorded on a blockchain it remains a part of the history forever and can be viewed by anyone. To view the Ethereum blockchain transactions, go to etherscan.io.
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Question 4

CRYPTOCURRENCY

Accepted Answer

A digital currency based on open-ledger blockchain technology. Cryptocurrency (crypto) is created and sent through a computer network that is not reliant on any central authority, such as a government or bank. Crypto includes Bitcoin and all forms of altcoins. The four major types of crypto include utility, payment, security, and stablecoins.

You can view current crypto data and learn more at sites like CoinGecko and CoinMarketCap.

Question 5

DECENTRALIZATION

Accepted Answer

Where individuals own and manage sections of the internet rather than big companies like Google or Facebook. This means that access does not require "permission" from these big, centralized companies, and does not require a middle man to connect people and execute transactions.

Question 6

ETHEREUM

Accepted Answer

A decentralized blockchain that has smart contract capability. The Ethereum blockchain pays Ether, its native cryptocurrency, for transaction verification and processing. Ethereum was launched by Vitalik Buterin in 2015. He allowed the Ethereum code to be "open source," which means that it can be copied and used by others to build other altcoin projects, NFTs, and more.

Question 7

EXCHANGE

Accepted Answer

Online marketplace that allows you to buy, sell, and trade digital assets. Many exchanges also offer additional services and features to support digital asset holders. Popular crypto exchanges include Coinbase, Binance, and Kraken. The most popular NFT exchange is Opensea.

Question 8

FIAT CURRENCY

Accepted Answer

Government-issued currency, like the U.S. Dollar, that is not backed by a physical commodity, such as gold or silver. The value of fiat money is derived from the relationship between supply and demand, and the stability of the issuing government. Governments adjust the amount of currency in circulation and interest rates to try and manage inflation.

Question 9

GAS

Accepted Answer

Gas is the fee charged by node operators to manage transactions on the blockchain. Also known as "network fees" or "miner's fees," these transaction fees help guarantee the accuracy and security of each data record on the blockchain. Gas, or network fees, are charged for each transaction that impacts the blockchain. This includes when someone buys crypto or NFTs, sells them, pays for something, transfers them, or moves them from one wallet to another. To view real-time gas fees for Ethereum blockchain transactions, go to etherscan.io/gastracker.
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Question 10

INFLATION

Accepted Answer

Inflation is a sustained trend of increasing prices. The rate of inflation represents how quickly investments and fiat currency lose their real value and how quickly prices for goods and services increase over time. The easiest way to understand inflation is through an example:

Suppose you can buy a burger for $5 this year and the yearly inflation rate is 10%. Theoretically, 10% inflation means that next year the same burger will cost 10% more, or $5.50. Put another way, the buying power of your money lost 10% of its purchasing power. It takes $1.10 to buy what $1.00 could purchase last year.

Question 11

INTERNET OF THINGS (IoT)

Accepted Answer

The Internet of Things, or IoT, describes billions of physical devices that are connected to the internet. Connecting these  objects and adding sensors to them creates a level of interactivity and digital intelligence that enables them to communicate real-time data without involving a human being. Examples of these connected devices include smart thermostats, light bulbs, refrigerators, and more.

Question 12

INTERNET OF VALUE (IoV)

Accepted Answer

The Internet of Value, or IoV, describes a blockchain-based internet (Web3) where value can be transferred from one person to another using digital currency as easily as data is transferred now without the need for a middle man (like a bank).

Question 13

METAVERSE

Accepted Answer

A virtual, 3D evolution of the internet that incorporates Web3 technologies (like blockchain and NFTs), Virtual Reality (VR), and Augmented Reality (AR) to create an immersive world that allows for experiences, engagements, and information sharing that is not possible in the real world. Popular metaverse examples include Decentraland and Sandbox.

Question 14

MINING

Accepted Answer

The process of earning cryptocurrency by verifying cryptocurrency transactions on a blockchain network. This is done by node owners who get paid in crypto if they successfully verify a block of transactions. This is how most new cryptocurrency is created.

Question 15

MINTING

Accepted Answer

The process of writing a new digital item on a blockchain network, like an NFT. This establishes its permanent record of creation, authenticity, and ownership. Minting can also be the process of earning crypto for verifying cryptocurrency transactions on a proof-of-stake blockchain network

Question 16

NFT

Accepted Answer

Non-fungible tokens (NFTs) are one-of-a-kind assets that have been tokenized and minted on a blockchain. NFTs are assigned unique identification codes and metadata that distinguish them from other tokens. NFTs can be traded or sold, and may include other value aspects like membership benefits, discounts on services, VIP access, or other forms of value.

Question 17

NODE

Accepted Answer

A node is a device, usually a computer, that helps make up a blockchain network along with other nodes. Nodes run blockchain software allowing them to help validate transactions and keep the network secure and operational.

Blockchain nodes communicate with each other. The more nodes there are, the more decentralized the network is. Nodes are uses for crypto mining, and node operators are miners.

Question 18

SATOSHI

Accepted Answer

The smallest denomination of Bitcoin named after its founder, Satoshi Nakamoto. Each Bitcoin contains 100 million Satoshis (like pennies to a dollar). Diced Digital pays you in satoshis!

Question 19

SMART CONTRACT

Accepted Answer

A smart contract is a blockchain program that automatically carries out the actions required in an agreement or contract without the input of a human, like a lawyer. Smart contracts are programmed in advance and the transactions are trackable on the blockchain.

Smart contracts are used to create and execute NFT minting and NFT sales contracts, among many other things. Ethereum is the most popular smart contract blockchain network. Other tokens like ChainLink assist by providing the information needed by smart contracts to get external data needed for contracts to execute.

For example, a company that sells designer shoes may partner with independent distributors to sell its shoes. They could enter into a smart contract with all distributors to give a 10% wholesale discount on all orders once a distributors sells 100 pair, 25% when they reach 500 pair, and 40% when they reach 1000. ChainLink could be used to pull sales data from the sales systems to provide the smart contract with the information to automatically apply the discounts to each shoe distributor's account when they reach the 100, 500, and 1000 sales milestones. No need to for any human interaction to verify or apply the discounts, no time lost waiting for people to confirm and apply the discounts, and no failure to apply discounts due to human error.

Question 20

TOKENIZATION

Accepted Answer

The process of transforming ownership and rights of particular assets into a digital form and placing them on a blockchain.

With tokenization, you can create digital tokens that represent physical or digital assets. For example, if you want to sell the Mona Lisa painting, very few people could afford the price. But, if you tokenize it, you can sell many people a digital token that represents a fraction of the painting. The token holders would then co-own the painting as fractional holders.

Question 21

STABLECOIN

Accepted Answer

Stablecoins are cryptocurrencies whose value is pegged, or tied, to another currency, commodity, or financial instrument. Examples for the U.S. dollar would be Tether and USD Coin. Stablecoins, per their name, aim to provide an alternative to the volatility of some of the popular cryptocurrencies.

Question 22

WALLET

Accepted Answer

A wallet is used to safely protect your crypto and other digital assets. A wallet does not store digital assets. Instead, it stores the keys which prove ownership of assets that are recorded on the blockchain's digital asset ledger. Wallets also allow you to send, receive, sell, and spend your assets.

A wallet can either be a cold wallet (hardware) or a hot wallet (software). A cold wallet is a small device that is not permanently connected to the internet, like a Ledger, that holds the keys (passwords) to your crypto or NFTs. A Hot wallet, like Metamask, is a non-physical vault that is connected to the internet at all times. Cold wallets are generally seen as more secure than hot wallets.

Question 23

WEB3

Accepted Answer

Web 3.0, or Web3, is the third generation of the World Wide Web (www). Web3 is a vision of an open web with increased utility for its users. Web3 represents the next phase of the evolution of the internet and is being built upon the core concepts of decentralization, blockchain technology, and greater user ownership.

Question 24

XR

Accepted Answer

Extended Reality, or "XR" for short, is an umbrella term that includes Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and everything in between.

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