Chapter 2
Discovering the DeFi Lingo
IN THIS CHAPTER
Knowing the DeFi keywords
Distinguishing frequently conflated topics
From trustless systems to layer 2 scaling solutions, the rapidly developing world of modern DeFi is full of new and esoteric terms that make it difficult for newcomers to get started. This chapter acquaints you with a host of common DeFi terms and clarifies some common misconceptions relating to measures of DeFi activity and how DeFi versus CeFi processes are implemented.
I don’t go into too many technical details in this chapter. The purpose here is to get you started with key DeFi concepts so that you can meaningfully navigate the subsequent chapters as well as confidently flex some DeFi street cred at your next cocktail party or family gathering.
Introducing Key DeFi Terms
This section covers some commonly used language and concepts that are now deeply embedded in the DeFi vernacular.
Moving into the Web3 era
Web3 refers to a vision for a decentralized web, built on blockchain technology and token-based economics, with the view to shift power and data ownership from tech companies back to individual users.
Although people use the terms Web3 and Web 3.0 interchangeably, Web 3.0 originally and more often refers to the next generation of a smarter World ...
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