Project type classification
DeFi (Decentralized Finance)
Decentralized finance (DeFi) is a new financial framework consisting of decentralized blockchain protocols and underlying smart contract technology. DeFi, as it is most commonly known, makes it possible for users to access different types of financial products and services without the need for a centralized authority.
CEX
A "CEX" or Centralized Exchange is a platform where users trade cryptocurrencies. Examples include Binance and Coinbase. Unlike decentralized exchanges, CEXs are controlled by a central authority and are considered more user-friendly and secure, but require users to deposit their funds into the exchange's wallets.
Bridge
A blockchain bridge is a tool that lets you port assets from one blockchain to another, solving one of the main pain points within blockchains – a lack of interoperability. Since blockchain assets are often not compatible with one another, bridges create synthetic derivatives that represent an asset from another blockchain.
GameFi (Play-to-Earn)
'GameFi' refers to the financialisation of video gaming. It is characterized by its 'play-to-earn' (P2E) business model, and mainly refers to blockchain games that offer tokenized incentives to players while enabling frameworks for player-as-owner rather than the standard player-as-consumer.
DeSoc (Decentralized Society)
DeSoc or Decentralized society is an umbrella term for traditional activities that will eventually get decentralized in the near future. These include but are not limited to:
- SocialFi
SocialFi is the fusion of social media and Web3. It refers to social media on a blockchain with a layer of finance in it. The concept brings together the principles of decentralized finance (DeFi) and social media to create, manage, and own content generated by the users on the platforms.
- Learn-to-Earn
'Learn-to-Earn’ refers to the financialisation of quizzing. It is characterized by the business model, which offers tokenized incentives to players who participate in the project and answer quizzes.
- DAO
A decentralized autonomous organization (DAO) is an emerging form of legal structure that has no central governing body and whose members share a common goal to act in the best interest of the entity.
- ExerciseFi
ExerciseFi or Move-to-Earn as its name implies, users are rewarded for movement, whether walking, running or dancing to a rhythm.
Metaverse
Crypto metaverses are immersive virtual worlds with immense social and financial potential. Their use of blockchain infrastructure enables them to tap into the wider crypto economy, making virtual items exchangeable for real economic value beyond the confines of the metaverse.
Oracle
Oracles are complex computerized systems that connect data from the outside world (off-chain) with the blockchain world (on-chain). Most blockchains have native cryptocurrencies that are used to transfer value, enable the operations of the protocol, or facilitate governance.
Wallet
A Cryptocurrency Wallet is an application that functions as a wallet for your cryptocurrencies. It is called a wallet because it is used similarly to a wallet you put cash and cards in. Instead of holding these physical items, it stores the private keys you use to sign for your cryptocurrency transactions and provides the interface that lets you access and manage your cryptocurrencies.
NFT (Non-Fungible Token)
An NFT project is a venture centered around the creation, distribution, and/or trading of Non-Fungible Tokens (or NFTs). NFTs are unique digital assets stored on a blockchain that represent ownership or proof of authenticity of goods, items, or content. They've been used for digital art, virtual real estate, music, and more. An NFT project could be anything from the launch of a new digital art collection, to the development of a game that uses NFTs, or even the creation of a marketplace for trading NFTs.
WalletDrainer
Wallet Drainers, represent a category of fraudulent mechanisms specifically designed to exploit individuals lacking comprehensive knowledge of security protocols. These systems typically employ a monetized model called "Fraud-as-a-Service," which allows individuals to acquire malicious script packages for the purpose of orchestrating their own deceptive campaigns. The fundamental approach involves deceiving the target user into accessing a counterfeit website and consequently authenticating a fraudulent transaction using their cryptocurrency wallet, which subsequently leads to the unauthorized withdrawal of their funds.
Individual
An Individual typically refers to an isolated digital wallet or account that has been jeopardized as a result of a security breach. Predominantly, these instances are outcomes of fraudulent cases where unsuspecting parties are deceived into transferring their digital assets to the perpetrator.
MEV (Miner Extractable Value)
MEV stands for "Miner Extractable Value." This is a measure of the profit a miner (or validator in proof-of-stake systems) can make through their ability to arbitrarily include, exclude, or re-order transactions within the blocks they produce.
The concept is particularly relevant in Ethereum, where the high demand for block space (due to the network's use for DeFi, NFTs, etc.) means miners can potentially extract significant value by prioritizing transactions that pay higher fees or strategically ordering transactions to take advantage of price differences across different DeFi platforms.
Blockchain
A blockchain project refers to an initiative that leverages blockchain technology—the distributed and decentralized database technology underpinning cryptocurrencies—to achieve a particular objective. Blockchain projects can span across various sectors, including but not limited to finance, supply chain management, healthcare, education, governance, and more.
This can involve creating new cryptocurrencies or tokens, developing decentralized applications (dApps), establishing a Decentralized Finance (DeFi) service, or building a platform for trading Non-Fungible Tokens (NFTs).