Skip to main content

Web3 Terms Every Professional Should Know

 Jose Triana SideCar

Web3 Terms Every Association Professional Should Know

For most people, Web3 is an often confused and hard-to-imagine future version of our world complete with its own financial systems and virtual realities we’ll use to interact. And while many of these new technologies sound exciting, a polished and functional version of them is still a ways away. 

However, many of the tools and systems that will be used in the future are already being experimented with and are quickly making their way into the association and non-profit industry. 

This is why having a basic knowledge of Web3 terms and concepts is key to not only understanding the possibilities for your organization, but also the future implications you need to prepare for as an association leader. 

Understanding Web3

At its most basic, however, Web3 is a future iteration of the internet that will be secured by blockchain technology, likely immersive and decentralized, and using alternative finances to keep things moving. 

Whether that means it’s a fully immersive world that replaces day-to-day interactions or simply an upgrade to the web as we know it is yet to be seen. 

Of course, there is a lot more to it than that, and if you need a full primer, be sure to check our Guide to Web3. 

Related: How To Talk to Your Members About Web3
Learn More >

Essential Web3 Terms You Should Know

One of the biggest reasons Web3 is misunderstood is because of all the components and terminology that go into how it functions. While terms will continue to develop as the technology does, having a basic understanding of critical Web3 terms can ensure that you and your organization are prepared for the future.

Building Blocks

  • Blockchain – A virtual or digital ledger that is used to record any and all transactions. Using cryptography and duplication across a network of nodes. This duplication is what helps create a secure process because all changes are tracked and recorded on the ledge, which allows for complete transparency. 
Related: How to Talk to Your Members About Blockchain
Learn More >
  • Smart Contracts – A smart contract is an agreement that’s converted into computer code, which is stored on the blockchain, and self-executes when the terms of the agreement are complete. By relying completely on blockchain networks, there is no need for an intermediary and agreements are always executed, assuming the terms have been met.   
  • Decentralization – Many of the applications and systems in Web3 are considered decentralized. As opposed to our current systems, which have oversight by either a private company or government, a decentralized system wouldn't have a central authority in charge. Instead, decision-making happens within a group. 
  • Decentralized Autonomous Organization (DAO) – The future of associations and organizations. Members would buy into a DAO using a token, which then affords them a vote on any decisions the organization makes – anything from purchases to organizational structure. 
  • Decentralized Application (Dapp) – Software applications built on blockchain technology. They often use smart contracts and can be designed for applications like games, NFT marketplaces and accounts to store and save cryptocurrencies. 
  • Decentralized Finance (DeFI) – An entire decentralized financial system that combines decentralized apps, exchanges and cryptocurrencies. Not only will it allow users to exchange coins, but it can also create opportunities for lending, borrowing and investing, with all interactions being executed via smart contracts and secured by blockchain. 
  • Decentralized Exchange (DEX) – A decentralized exchange that allows users to exchange cryptocurrencies. There is no intermediary and users can exchange any type of coin in most systems. 

Finance

  • Cryptocurrency – A digital currency encrypted on the blockchain and used for secure transactions. There are over 17,000 currently in existence and more are being created daily. Their appeal often depends on uses and the amount minted. For example, Bitcoin is one of the most valuable and sought after because of its wide usage and finite amount. 
Related: What Are The Major Cryptocurrencies?
Learn More >
  • Wallet (Crypto wallet) – A wallet is designed to store your private keys, which prove ownership of a specific cryptocurrency. They are also critical when connecting to any decentralized exchange or app. Wallets can either come as software, which is stored on your computer, or hardware, which is a physical device that stores your keys. 
  • Bitcoin – The cryptocurrency that launched it all. Bitcoin has the largest market cap and is viewed as a stable store of value due to its universal acceptance. It was created in 2008 by Satoshi Nakamoto with a limit of 21 million to ever be created. 
  • Ethereum – Launched in 2015, Ethereum is one of the more popular cryptocurrencies. It has become the foundation of things like NFTs, event tickets and real estate transactions on the blockchain, which also allows it to be used to build Dapps. 
  • Altcoin – Officially, an altcoin is any cryptocurrency that is not Bitcoin. While they can still represent currency and are stored and secured by the blockchain, they also have wider applicability, including stable coins and governance tokens. 
  • Mining – When transactions need to be confirmed on a blockchain, a complex mathematical problem is used. When it’s solved, cryptocurrency is created and the transaction is added to the blockchain. This process is called mining and it's one of the ways new cryptocurrency units are created. 
  • Proof-of-Stake (PoS) – One of the methods used to confirm transactions on the blockchain. Users stake their own cryptocurrencies to validate transactions that are being added to the blockchain. Once confirmed, they are also given portions of the cryptocurrency as payment. 
  • Proof-of-Work (PoW) – Unlike PoS, where you need to put your own cryptocurrency as stake, PoW works by solving mathematical problems. Once solved, the miner is also awarded cryptocurrency. 

Tokenization & Collectibles

  • Creator Coins – Whether you’re an organization or an individual creator, you can create your own cryptocurrency that is categorized as a creator coin. Not only can they be used to purchase things like merchandise and NFTs, but they can work as a key to additional features, membership perks and content. 
  • Fungibility – In order to understand what an NFT is, you need to know the fungibility aspect. “In less geeky terms, fungible simply means replaceable,” says Amith Nagarajan. So if an item or collectible is non-fungible, this means it is not replaceable and there is only one (i.e. the Mona Lisa).  
  • Non-Fungible Token (NFT) – “NFT” stands for “nonfungible token.” It’s a unit of data on blockchain that represents digital files or collectibles. While many of the current applications and use-cases of NFTs are artwork, creators will be able to use NFTs to represent things like certifications or licenses, deeds for homes or even tickets to your next association event. 
Related: Can Event NFTs Be the Next Big Thing for Your Association?
Learn More >
  • Non-Transferable Tokens (NTTs) – Unlike NFTs that can be sold and traded in the marketplace, NTTs are considered “soulbond.” Designed with inspiration from video games, where achievements cannot be traded or sold, these tokens would represent the most important of “achievements” or credentials. Things like employment history, licenses and certifications would all be verifiable on the blockchain – creating a Web3 reputation that cannot be falsified.  
  • Minting – Whether you create a new NFT and add it onto the blockchain, you’re “minting” that item. Minting can also be used for new cryptocurrencies and creator coins. 

Immersion 

  • Metaverse – A virtual representation of our regular world. It should allow people to recreate or replace daily routines, like meetings, visits to offices and even vacations, in a fully immersive 3D virtual world. 
Related: How to Talk to  Your Members About The Metaverse
Learn More >
  • Augmented reality – An emerging technology that allows you to augment your real-world surroundings. Generally using phones or glasses, you’ll be able to interact and see 3D elements in the real world. 
  • Virtual Reality – A more immersive experience, virtual reality relies on full headsets like the Oculus Quest headset. An entire world, or Metaverse, will be created that you can then interact with as you would in the real world. 
  • Avatars – A digital representation of you! As users explore a metaverse, there will need to be a way for you to interact with that world, and that’s where avatars come into play. Not only will you be able to customize them with in-world purchases and NFTs, but you’ll also likely be able to use them to interact with others, attend virtual experiences and even enter your virtual workplace. 

This list is in no way exhaustive and will likely be a living document that we consistently update and improve. However, it does give you an understanding of jargon and terminology that can help you make informed decisions and plan for emerging technology. 

The Future of Web3 Is Still Unknown

The bottom line is that the implications and functionality of Web3 are still very much in their infancy. However, with investments from major organizations around the world, their application and impact will likely be felt in the very near future.

Understanding key concepts and Web3 terms are key to helping keep your association ahead of the curve and prepared to integrate and leverage them for organizational growth and connection with members.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Why Auto Lending Is Starting To Stand Out As A Real Threat To CUs

  By Ray Birch MILWAUKEE—Auto lending is emerging as one of the biggest areas of risk for credit unions, even as the broader U.S. economy continues to perform better than many expected, according to Bill Handel, chief economist at Raddon, a Fiserv company. Delinquency trends in auto portfolios are now approaching levels last seen during the Great Financial Crisis, Handel said, driven by a combination of high vehicle prices, elevated interest rates and increasing financial pressure on lower-income consumers. “There’s probably still a lot of risk in the auto portfolios,” Handel said. “Our numbers in terms of delinquency behavior in the United States are now rivaling what they were during the Great Financial Crisis.” Economy Holding Up Better Than Expected Despite those pockets of risk, Handel said the broader economy remains surprisingly resilient. “If you look at the U.S. economy, it’s actually performing quite well—probably better than most people would have anticipated,” he said. ...
Post a Comment
Read Complete Article HERE>»

When Cooperation Turns To Competition: A Turning Point For The Firefighter Credit Union Movement

  By Grant Sheehan For decades, firefighter credit unions have stood as a model of what cooperative finance is meant to be—institutions built not to compete ruthlessly, but to serve a shared mission: supporting the financial well-being of those who risk their lives in service to others. That’s what makes the recent actions of Firefighter First Credit Union so concerning. Firefighter First FCU was not just another participant; it was a founding member of the National Council of Firefighter Credit Unions (NCOFCU). It helped shape the very principles of collaboration, mutual respect, and non-encroachment that have long defined our community. Those principles weren’t accidental; they were intentional safeguards to ensure that firefighter-focused credit unions could grow together, not at each other’s expense. But something has changed. Firefighter First FCU’s decision to pursue a nationwide charter marks a clear shift in direction—from cooperation to direct competition. This isn’t simpl...
Post a Comment
Read Complete Article HERE>»

Small Credit Unions Don’t Lack Representation—They Lack Board Education

  By Grant Sheehan Let’s be clear— representation  for small credit unions is not something new that suddenly needs to be invented. For more than 150 years in Europe and 115 years in the U.S., many of us—along with numerous trade groups representing postal workers, schools, hospitals, the military, first responders, electricians, welders, auto workers, and many other sponsor employee groups—have been actively representing and supporting small credit unions. The mission has always been the same: protect these institutions and ensure they have a voice. The real challenge facing small credit unions has never been a lack of organizations claiming to represent them. The challenge has been engagement and education. Many small credit unions operate with extremely limited resources. Their boards are made up of volunteers who already have full-time careers. Even when scholarships, training opportunities, and conferences are offered, the realities of travel costs, staffing shortages, op...
Post a Comment
Read Complete Article HERE>»

With Graham Signaling New Budget Bill, Credit Unions Brace For Tax Debate

By Ray Birch WASHINGTON— Senate Budget Committee Chairman Lindsey Graham’s comments Wednesday that Republicans will “expeditiously move toward creating a second budget reconciliation bill” are giving new shape to what had been a speculative discussion in Washington—and prompting renewed attention within the credit union industry to whether the movement’s federal tax exemption could again surface as lawmakers look for possible offsets. In a post on X, Graham said that after consulting with President Trump, his team and Senate Majority Leader John Thune, the Senate Budget Committee will move quickly on a second reconciliation package focused on “adequate funding to secure our homeland” and support for the military. The remarks are notable because they offer one of the clearest indications yet that a second fast-track budget measure—previously discussed but far from certain—may now be gaining traction. CUToday.info on Wednesday reached out to House Budget Committee Chairman Jodey Arringto...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - How were the National Parks started?

  America's 'Best Idea'       How were the National Parks started? America's National Park System includes roughly 85 million acres of US territory, equal to the size of Germany, set aside by federal law for preservation. There are 63 areas officially designated as national parks—including the Grand Canyon, the Great Smoky Mountains, and Acadia—and more than 400 additional smaller units ( see map ). In 1872, Yellowstone was established   as the first national park dedicated to public enjoyment and recreation, though its foundation also  displaced several Native American tribes . By 1916, the growing system required the creation of the National Park Service to preserve its lands for future generations. Eventually, hunting and logging were banned in the parks, though regulated extractive activity is still permitted in nati...
Post a Comment
Read Complete Article HERE>»

Setting & Meeting Your 2018 GOALS - Dan Berger

A new year provides a fresh start and a clean slate and is often the time when resolutions and goals are established. If you are in the process of setting new goals – as I am – know that with an open mindset, achievement of all your goals is possible. "Goals provide clarity," writes Mareo McCracken, revenue leader of Movemedical. He explains that goal setting is about "combining the fortitude to achieve with clear thinking while making sense of your purpose and defining your ability to deliver value to others." However, goal setting and achieving also requires faith – or believing and hoping in something you can't see yet or that doesn't quite exist. For many of us, the No. 1 reason we don't achieve our goals is that we lack belief in ourselves and our abilities. I encourage you to read an article by Inc.com contributor Benjamin Hardy  that details the importance of having this kind of faith in yourself and delivers some tips on how to achie...
Post a Comment
Read Complete Article HERE>»

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York : "NEW YORK (CBSNewYork) — A badly injured New York firefighter received a companion dog whose already saved people’s lives from fire. As CBS2’s Dave Carlin reported, disabled firefighter Tom Prin beamed as he was officially presented with his new canine companion Halona inside of a packed ceremony in Suffolk County. The former firefighter was one of 15 people receiving their canine companions. Prin was chosen because of what he’s been through — after fracturing his neck and back while responding to a Brooklyn fire. “When I was going from the third to fourth floor, the steps gave out and I fell through the fire escape,” he said. Prin has endured five spinal surgeries, but the Holtsville man will now be comforted by Halona who has quite the lifesaving resume herself." Click HERE to read full story and see video 'via Blog this'
Post a Comment
Read Complete Article HERE>»

Tower Climb NYC Registration Now Open!

     
Post a Comment
Read Complete Article HERE>»

How to Prepare for a Recession

  By Ray Birch IRVINE, Calif.—There’s little chance the Federal Reserve will steer the U.S. away from a recession in the next 12-18 months, says one economist, who adds delinquencies among the nation’s lenders could become an issue in the near future. Elliot Eisenberg, chief economist for economic consultancy GraphsandLaughs, said during a recent Origence webcast he does not think the recession will be deep. But he also urged credit unions to revisit loan loss reserves built during the pandemic and to shore those up again. What the growth of inflation will come down to, explained Eisenberg, is whether the Federal Reserve, as it adjusts rates upward to curb inflation, will be able to engineer a “soft landing” for the econo...
Post a Comment
Read Complete Article HERE>»