Web3 glossary

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Address

The public identifier of a wallet, like 0x4c2a…9f1b. It can be shared; the private key, never.

Airdrop

A distribution of tokens to a group of wallets. It is also scammers' favorite hook: a legitimate airdrop never asks for your recovery phrase or a payment.

Bitcoin

The first cryptocurrency, launched in 2009. Its network runs without a central issuer and has a maximum supply of 21 million units.

Blockchain

A public database kept by many computers at once, where records are grouped into chained blocks. Changing the past would require controlling most of the network.

Bridge

A tool to move assets between different networks. It is one of the most attacked pieces of Web3.

CARF

Crypto-Asset Reporting Framework: the OECD standard for crypto-asset service providers to report to tax authorities. Chile applies it through sworn statements 1963 and 1964. See taxes.

CMF

Financial Market Commission (Comisión para el Mercado Financiero). It supervises Fintech Law service providers, including those dealing in crypto assets.

Crypto asset

A digital representation of value that can be transferred, stored or exchanged digitally. Chile's Fintech Law calls them “virtual financial assets or crypto assets”. See regulation.

Custody

The service of holding assets on someone else's behalf. An exchange that holds your crypto is providing custody.

DAO

Decentralized autonomous organization: a community that makes decisions and manages funds through votes and on-chain contracts.

DeFi

Decentralized finance: lending, trading and other financial services that run on smart contracts, without a traditional intermediary.

ENS

Ethereum Name Service: a naming system that replaces addresses with readable names such as yourname.eth. Its version 2, ENSv2, has been live since October 27, 2026. Read the ENS guide.

Ethereum

A general-purpose blockchain where smart contracts run. Its currency is ETH.

Exchange

A platform to buy, sell or trade crypto assets. In Chile, to broker or hold assets it must be registered and authorized by the CMF.

Fintech Law

Law 21,521, in force since February 3, 2023. It regulates technology-based financial services, including those dealing in crypto assets. See regulation.

Fuses

Locks in the ENS Name Wrapper (version 1) that, once burned, permanently fix what can be done with a name or subname. In ENSv2, roles replace them.

Gas

The fee paid to the network to process a transaction. It rises when the network is congested.

L2 (layer 2)

A network built on top of Ethereum that processes cheaper transactions and then settles them on the main network.

Mainnet and testnet

The mainnet is the main network, where transactions carry real value; a testnet is for testing without real money.

Mint

To create a token or NFT on a blockchain. The mint date is recorded on-chain.

Name Wrapper

The ENS version 1 contract that turns names into ERC-1155 tokens and allows creating subnames with rules (fuses). In ENSv2, its functions moved into the core of the protocol.

NFT

Non-fungible token: a unique digital asset, such as an ENS name, a ticket or an item in a virtual world.

Phishing

A trick to get you to hand over data or sign something, using fake sites, emails or profiles that imitate a real one.

Primary name

The ENS name your wallet displays instead of its address. It is set separately from registering the name.

Private key

The secret key that authorizes a wallet's transactions. The recovery phrase can regenerate it.

Proof of stake

The mechanism Ethereum uses to validate blocks, using capital put up as collateral instead of mining.

Recovery phrase

Also called a seed phrase: 12 or 24 words that restore a wallet. Whoever has it controls the funds. Never share it.

RPSF

The CMF's Registry of Financial Service Providers. It is where you check whether a platform is registered and authorized. How to check.

Sandbox

A controlled environment to test technology or products before launch, sometimes under special rules from the regulator.

Self-custody

Keeping your assets in a wallet whose keys you control, without relying on a platform.

Smart contract

A program that lives on a blockchain and runs by itself when its conditions are met.

Stablecoin

A crypto asset designed to keep a stable value, usually pegged to the dollar. Chile's Central Bank is preparing a proposal to regulate them.

Subname

A name that hangs from another in ENS, like payments.yourbrand.eth. The owner of the parent name creates it.

Token

A digital unit issued on a blockchain. It can represent a currency, a right, a vote or an asset.

Tokenization

Representing an asset — a bond, a property, an invoice — as a token on a blockchain.

Transaction hash

The unique identifier of a transaction. You use it to look the transaction up on a block explorer and as proof.

Travel rule

Requires transfers to carry data on the sender and the recipient. In Chile it was introduced by UAF Circular No. 62.

UAF

Financial Analysis Unit (Unidad de Análisis Financiero): it works to prevent money laundering. Fintech providers dealing in crypto assets are required to report to it.

Wallet

An app or device that holds the keys to your assets and signs your transactions.

Web3

The stage of the internet in which people control their assets and identity with blockchains and wallets, instead of company accounts.