10 terms from the 'blockchain' universe that you should know.
📚What is 'halving'? How does an NFT work? What are 'stablecoins' for? 15 years after the birth of this technology, these are some terms currently discussed in the 'blockchain' world.✏️✨✨◽
Although the origins of the technology are linked to the emergence of cryptocurrencies, 'blockchain' has expanded to different economic and innovation sectors. It is not just a ledger or a database but a set of technologies that allow for the recording, verification, and transfer of assets online without third-party intervention and securely. 15 years later, 'blockchain' has evolved, especially in terms of applying its technology to practical applications, and along with the technology, its vocabulary and particular dictionary evolve.
1🔸 'Halving'✨✨◽✏️
It is a scheduled event that occurs on the Bitcoin network approximately every four years, or every 210,000 mined blocks, and halves the reward that miners receive for validating and adding new blocks to the chain. The 'halving' influences the rate of issuance of new cryptocurrencies and helps extend this issuance over time until the network reaches the programmed total of 21 million bitcoins.
2🔸'MiCa'✨✨◽✏️
The Regulation on Markets in Crypto Assets, better known as MiCA, is the European regulation that governs the issuance and provision of services related to crypto assets. It will apply in the EU member states from July 2026, with a transitional period of up to 36 months. In the case of Spain, the regulation will come into effect in December 2025.
This regulation is the first and only of its kind in the world and paves the way for other jurisdictions, making it another key concept to understand in the dynamic world of 'blockchain' technology and cryptocurrencies.
3🔸'Altseason'✨✨◽✏️
The term 'altseason' refers to the period when 'altcoins', or alternative cryptocurrencies to bitcoin, experience a significant increase in their value. This phenomenon can be influenced by various factors, such as technological developments, strategic partnerships, or changes in the market's perception of a particular cryptocurrency.
4🔸 'DeFi'✨✨◽✏️
Decentralized finance or DeFi transforms the way we interact with financial services: it does not change the 'what' but the 'how'. They are financial contracts, such as loans or investments, supported by 'blockchain' and thus recorded on the decentralized and immutable blockchain. This set of blockchain-based applications aims to create a more open, transparent, and secure financial system without intermediaries and has the same legal effect as traditional financial contracts.
5🔸'Stablecoin'✨✨◽✏️
Stablecoins are cryptocurrencies designed to maintain a stable value linked to assets such as fiat currencies (like the dollar or the euro) or commodities or other assets (like gold or real estate). There are also stablecoins controlled by algorithms to maintain a stable price, known as decentralized or algorithmic stablecoins. Their main objective is to offer stability in a market known for its volatility, allowing users to conduct transactions and store value without worrying about extreme price fluctuations. MiCa regulates these cryptocurrencies and establishes that their issuers must be authorized and possess a solid reserve of assets backing the parity.
6🔸'Memecoins'✨✨◽✏️
Memecoins are cryptocurrencies that find their value in internet culture and memes, those images, videos, or texts generally distorted for caricature purposes. They are cryptocurrencies that originated from internet jokes and gained popularity over time, with Dogecoin or Shiba Inu being the most well-known.
7🔸'Second layer'✨✨◽✏️
Layer 2 blockchains, or 'Layer 2' (L2), are protocols built on top of a main blockchain, such as Bitcoin or Ethereum. These additional layers allow for a higher number of transactions at faster speeds and lower fees and are designed to solve the challenges faced by this technology while trying to promote decentralized processes that are secure and scalable.
8🔸'Sidechain'✨✨◽✏️
Sidechains are secondary blockchains that operate independently but are linked to the main chain. They allow transactions to be conducted outside the main chain, improving scalability and efficiency. They are fundamental to addressing challenges such as network congestion, which manifests during periods of high demand, as has been observed, for example, in bitcoin. In these instances, congestion results in higher transaction fees and prolonged confirmation times, but it can be alleviated by connecting the sidechain with the existing blockchain. The new chain has characteristics and consensus protocols distinct from the main one, but being compatible and able to merge, they complement each other's capabilities. A concrete example of successful sidechain implementation is the Liquid Network project, developed by Blockstream with the aim of increasing scalability and efficiency in certain use cases without compromising the inherent security of the main bitcoin chain.
9🔸'FOMO and FUD'✨✨◽✏️
Although they are not exclusive to the context of markets, in the jargon of the cryptocurrency ecosystem, the terms FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, and Doubt) are emotions that influence users and thus affect the behavior of the cryptocurrency market. FOMO refers to the anxiety a person feels thinking they are missing out on something that others are benefiting from, which in this case can lead to poorly timed market entries. FUD is understood as the act of spreading dubious or false information about an asset or the overall set of negative feelings that spread among investors in the face of bad news or bearish market trends.
10🔸'Web3'✨✨◽✏️
Web3 represents the next phase of the internet, driven by decentralization and 'blockchain'. This concept seeks to return data control to users and eliminate dependence on centralized platforms. Web 3 allows for a bridge between the physical and virtual worlds to introduce new models of ownership and transaction that blend both realities. Through 'blockchain' technology, it introduces new models of ownership, creating a verifiable and traceable distribution of digital assets.