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Web3 Glossary

For more details check out the Ethereum Wiki.

The glossary is arranged alphabetically.

Account Abstraction​

  • Definition: A concept in blockchain design that allows users to interact with smart contracts and decentralized applications (DApps) without needing a native cryptocurrency balance. It abstracts the underlying account model, enabling users to pay transaction fees for different assets.

Blockchain​

  • Definition: A distributed and decentralized ledger that records transactions across a network of computers. Each transaction is added to a chain of blocks, making it secure and tamper-resistant.

Bundler​

  • Definition: A bundler is a special node that monitors an alternative mempool of user operations, and bundles user ops from multiple senders into a single transaction so they can be executed on a blockchain.

Consensus Mechanism​

  • Definition: The process by which nodes in a decentralized network agree on the state of the blockchain. Common mechanisms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).

DAO (Decentralized Autonomous Organization):​

  • Definition: An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.

Fork​

  • Definition: A split or divergence in the blockchain's transaction history, resulting in two separate chains. Forks can be soft forks (backward-compatible) or hard forks (not backward-compatible).

Gas​

  • Definition: A unit representing the computational work required to execute operations on a blockchain. Users pay gas fees to compensate miners for processing and validating transactions and smart contracts.

Immutable​

  • Definition: The quality of being unchangeable or tamper-resistant. In the context of blockchain, once data is added to the chain, it becomes practically impossible to alter.

Interoperability​

  • Definition: The ability of different blockchain networks to communicate and share information, enabling seamless interaction between various decentralized applications and platforms.

Mempool​

  • Definition: A mempool is a node on a Blockchain for storing information on unconfirmed transactions. It acts as a waiting room for queued and pending transactions that have not yet been included in a block. A transaction is only included in a block on the chain after it has been verified and approved in the mempool.

Nonce​

  • Definition: A number used only once in a cryptographic communication, often associated with transactions on a blockchain to prevent replay attacks.

Paymaster​

  • Definition: A paymaster is an entity that can sponsor gas fees for transactions on Ethereum-based networks through the use of account abstraction, as specified in the ERC-4337 standard. This enables users to pay for transaction fees in a variety of ways, such as with an ERC-20 token like the stablecoin USDC, a credit card, or subscription service, without having to hold Ether or sacrifice custody of their account.

Sharding:​

  • Definition: A scaling technique that involves breaking the blockchain into smaller parts (shards) to improve transaction throughput and overall performance.

Smart Contract​

  • Definition: Self-executing contracts with the terms of the agreement directly written into code. Smart contracts run on blockchain platforms and automatically enforce and execute predefined rules without the need for intermediaries.

Smart Contract Wallet​

  • Definition: A smart contract wallet is a type of Web3 wallet powered by smart contracts and uses a smart contract instead of a private key.

Token​

  • Definition: A digital asset representing ownership or access rights on a blockchain. Tokens can represent various assets, such as cryptocurrency, real-world assets, or utility within a specific ecosystem.

UserOperation​

  • Definition: User operations are objects that contain transaction details to be executed on behalf of the sender’s smart contract account. User operations (UOs) contain fields that are similar to regular transactions (e.g. sender, to, calldata, maxFeePerGas, maxPriorityFee, signature, and nonce), but they also has new fields that are specific to the user operation struct including callGasLimit, verificationGasLimit, preVerificationGas, and paymasterAndData.

Wallet​

  • Definition: A digital tool that allows users to store, manage, and interact with their cryptocurrency assets. Wallets can be software-based (online, desktop, mobile) or hardware-based (physical devices). A smart contract wallet does not need any seed words or passwords as the access to the same can be controlled by the user via Social Login methods.

Web3​

  • Definition: The third generation of the World Wide Web, characterized by decentralized protocols, peer-to-peer interactions, and the use of blockchain technology.

Zero-Knowledge Proof​

  • Definition: A cryptographic method that allows one party to prove the authenticity of information to another party without revealing any details about the information itself.