There are plenty of sophisticated terms in the cryptocurrency world that may sound ambiguous, but in reality, they are quite straightforward. Let me demystify these "high-end" concepts for you:摘要：Thereareallkindsofhigh-endtermsinthecoincircle,whichsoundvague,buttheseseeminglyprofessionalthingsareactuallyverysimple...
- L2, or Layer 2, refers to a secondary network built on top of the original blockchain network, such as BTC and ETH. The original networks have become slow and outdated in handling large amounts of data. The L2 network processes data separately and then transfers it back to the original chain, without modifying it, thus saving on fees.
- NFT, or non-fungible token, is essentially a digital token representing ownership of a specific unique piece of content, like an image. It simplifies the buying and selling of digital content and makes recording airdrop information more convenient.
- Defi stands for decentralized finance, which means carrying out financial transactions entirely on the blockchain. It involves moving various financial activities from traditional exchange apps to the blockchain.
- Meta, or metaverse, is a virtual reality space where users can interact with a computer-generated environment and other users. It's similar to playing The Sims, but with the addition of virtual currency.
- Web3 refers to the third generation of the internet, which supposedly allows for dividend and monetary gains. However, the majority of web3 projects aren't profitable at the moment.
