Welcome to the Cryptocurrency and Blockchain Glossary – a comprehensive collection of definitions for key terms, concepts, and jargon in the world of cryptocurrencies and blockchain technology. Whether you're a newcomer seeking to understand the intricacies of this evolving field or a seasoned enthusiast looking to expand your knowledge, this glossary is designed to provide clarity and insight.
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Account abstraction refers to the concept in blockchain technology where the functionality of an account is extended beyond simple balance tracking. It allows smart contracts and decentralized applications (dApps) to interact directly with the blockchain, enabling more complex operations and interactions.
AES is a widely used symmetric encryption algorithm that ensures the confidentiality and security of data.
An airdrop is a distribution of cryptocurrency tokens or assets to a group of wallet addresses. Airdrops are often used as a marketing or promotional tactic by projects to raise awareness, reward users, or introduce new features.
An algorithm is a set of step-by-step instructions or rules followed by a computer or program to solve a specific problem or perform a task. In the context of cryptocurrencies, algorithms are used for various purposes, such as consensus mechanisms, encryption, and mining.
An alpha release is an early version of a software product that is made available to a limited group of users for testing and feedback. It often contains core functionalities but may have bugs or incomplete features.
An altcoin is any cryptocurrency other than Bitcoin. The term "altcoin" stands for "alternative coin" and refers to the wide variety of digital currencies that have been created as alternatives to Bitcoin.
A Q&A session where individuals, often team members of a project, answer questions posed by a community. AMAs are commonly conducted on social media platforms or forums.
AMLD5 refers to the Fifth Anti-Money Laundering Directive, a regulatory framework implemented by the European Union to combat money laundering and terrorist financing. It extends AML regulations to cryptocurrency-related businesses and exchanges.
An angel investor is an individual who provides capital or funding to early-stage startups or projects, typically in exchange for equity or ownership in the company. Angel investors often provide financial support to help startups grow and develop.
Arbitrage is the practice of taking advantage of price differences for the same asset on different markets or exchanges. Traders engage in arbitrage to profit from price discrepancies by buying low on one exchange and selling high on another.
ATH refers to the highest price level that a cryptocurrency or asset has reached over its entire history.
ATL refers to the lowest price level that a cryptocurrency or asset has reached over its entire history.
An API is a set of rules and protocols that allows different software applications to communicate and interact with each other.
APR is the annualized interest rate or cost associated with borrowing or lending, often used to compare the cost of loans or financial products.
APY is a more comprehensive measure of the potential return on an investment, accounting for compounding interest over time.
A specialized hardware device designed for a specific computational task, often used in cryptocurrency mining.
Asymmetric encryption involves the use of a pair of keys, a public key for encryption and a private key for decryption, providing enhanced security and authentication.
An atomic swap is a smart contract-based technology that enables the direct exchange of one cryptocurrency for another between two parties without the need for an intermediary.
An audit is a comprehensive examination and review of a project, smart contract, or system to assess its security, functionality, and compliance with established standards and best practices.
An auditor is an individual or firm responsible for conducting audits and assessments of projects, smart contracts, or systems to ensure security, compliance, and adherence to best practices.
An automated market maker is a decentralized protocol that uses smart contracts to facilitate trading and liquidity provision in a decentralized exchange (DEX). AMMs use algorithms to determine token prices based on supply and demand.
In cryptocurrency slang, a "bag" refers to a holding of a particular cryptocurrency that a trader or investor owns. The term is often used humorously to discuss the assets one holds.
A bag holder is an individual who is holding onto a cryptocurrency that has significantly decreased in value, resulting in losses. The term is often used to describe investors who are still holding onto assets that have lost value over time.
Bail-in refers to a financial strategy in which the creditors and shareholders of a distressed bank or financial institution are forced to bear the losses during a crisis, as opposed to a government bailout. It involves converting debts into equity to recapitalize the institution.
Bail-out refers to a financial intervention in which a government or institution provides financial support or assistance to prevent the collapse of a struggling bank or business. A bail-out aims to stabilize the entity and prevent systemic risks.
Banking as a Service is a model that allows non-bank companies to offer financial services to customers by leveraging the infrastructure and capabilities of traditional banks. BaaS providers offer banking functionalities through APIs and technology partnerships.
A bank run refers to a situation where a large number of depositors rush to withdraw their funds from a bank or financial institution due to concerns about its solvency or stability. Bank runs can lead to liquidity shortages and potential collapse of the institution.
A bear market is a period of prolonged decline in the prices of financial assets, such as stocks or cryptocurrencies. It is characterized by pessimism, decreasing buying activity, and overall negative market sentiment.
A bear trap is a deceptive market situation where prices appear to be declining further during a bull market, causing panic selling by investors, only to see prices rebound, resulting in missed opportunities.
BEP-20 is a token standard on the Binance Smart Chain (BSC), similar to ERC-20 on Ethereum. It provides a framework for the creation and management of fungible tokens within the BSC ecosystem.
BEP-721 is a token standard on the Binance Smart Chain (BSC), equivalent to ERC-721 on Ethereum. It enables the creation of non-fungible tokens (NFTs) representing unique digital assets.
A beta release is a more advanced version of a software product that is made available to a larger group of users for testing and feedback. It aims to identify and fix issues before the final release.
In the context of cybersecurity, a black hat refers to a malicious hacker who engages in illegal or unauthorized activities, such as exploiting vulnerabilities, stealing data, or causing harm to systems and networks.
A distributed ledger technology that securely and transparently records transactions. Information is organized in blocks linked together, forming an immutable chain.
- Blockchain 1.0: The first generation of blockchain technology, primarily associated with Bitcoin and its use as a decentralized digital currency.
- Blockchain 2.0: The second generation, characterized by the introduction of programmable smart contracts and the ability to build more complex decentralized applications on blockchain platforms like Ethereum.
- Blockchain 3.0: The third generation, focusing on scalability, interoperability, and the integration of blockchain with other technologies, such as the Internet of Things (IoT) and artificial intelligence.
A blockchain transmission protocol refers to the set of rules and mechanisms that govern how data, transactions, and blocks are propagated and communicated across a blockchain network. It ensures the efficient and secure distribution of information within the network.
The blockchain trilemma is a concept that highlights the trade-offs among three key attributes of a blockchain network: security, scalability, and decentralization. It suggests that it is challenging to achieve high levels of all three attributes simultaneously, and optimizing one may come at the expense of the others.
BLS (Boneh-Lynn-Shacham) signature is a cryptographic signature scheme that offers efficiency and scalability advantages, commonly used in blockchain networks.
Borrowing in the context of finance and DeFi refers to the act of obtaining assets or funds from a lending platform with the agreement to repay them along with interest or fees.
Basis points (BPS) represent a unit of measurement used in finance to describe changes in interest rates, percentages, or yields. One basis point is equal to 0.01%.
A brute force attack is a hacking technique where an attacker systematically tries all possible combinations of passwords or encryption keys until the correct one is found. It is a time-consuming method used to gain unauthorized access to systems or data.
A bug bounty program is an initiative where individuals or researchers are rewarded for identifying and reporting software vulnerabilities, bugs, or security weaknesses in a product, service, or software application.
A bull market is a period of sustained upward movement in the prices of financial assets, such as stocks or cryptocurrencies. It is characterized by optimism, increasing buying activity, and overall positive market sentiment.
A bull trap is a deceptive market situation where prices appear to be recovering during a bear market, luring investors to buy, only to see prices drop again, causing losses for those who bought in prematurely.
Burning refers to the permanent removal of tokens from circulation, often done to reduce the total supply or to comply with specific tokenomics.
Byzantine Fault Tolerance (BFT) is a property of a distributed consensus algorithm that allows a blockchain network to reach consensus and make correct decisions even in the presence of malicious or faulty nodes. BFT ensures the system's integrity and security in decentralized networks.
A Central Bank Digital Currency (CBDC) is a digital form of a country's official currency issued and regulated by the central bank. It serves as a digital representation of physical cash and is often used for electronic transactions and payments.
The CDO is an executive responsible for managing and leveraging an organization's data assets to drive business insights and decisions.
The CEO is the highest-ranking executive in a company who is responsible for making strategic decisions and managing overall operations.
A centralized cryptocurrency exchange where trading of various cryptocurrencies takes place on a single platform. These exchanges are managed by a central entity and often provide a user-friendly interface for trading.
The CFO is a senior executive responsible for managing a company's financial operations, financial planning, and financial reporting.
Cloud mining is a service that allows individuals to mine cryptocurrencies without the need to own or operate their own mining hardware. Users rent computing power from a cloud mining provider to participate in the mining process.
A cold wallet is a cryptocurrency wallet that is offline and not connected to the internet. It provides enhanced security and is often used for long-term storage.
Collateral refers to assets, such as cryptocurrency or other valuable items, that are pledged by a borrower to secure a loan or financial transaction. Collateral provides lenders with a form of security in case the borrower defaults on the loan.
A composable token refers to a type of cryptocurrency token that can be easily integrated and combined with other tokens or smart contracts to create new financial products, services, or decentralized applications.
Consensus in blockchain technology refers to the collective agreement among participants in a network regarding the validity of transactions and the state of the blockchain. Different consensus mechanisms, such as Proof of Work (PoW) and Proof of Stake (PoS), determine how consensus is achieved.
The COO is an executive responsible for overseeing a company's day-to-day operations and ensuring efficient business processes.
Cross-chain refers to interactions and interoperability between different blockchain networks. Cross-chain technologies enable the transfer of assets and data between separate blockchains, expanding the functionality and utility of decentralized ecosystems.
A form of digital currency that uses cryptography to secure transactions and control the creation of new units. Bitcoin is the first and most well-known cryptocurrency.
The CTO is an executive responsible for the technology and technical direction of a company, often involved in strategic technology decisions.
Custodial refers to a service or platform that holds and manages users' assets, such as cryptocurrencies, on their behalf. Custodial services often provide convenience but require users to trust the platform with their private keys and control over their assets.
An organization governed by smart contracts and operated by its members. DAOs use blockchain technology to facilitate decision-making and management processes.
A dApp, or decentralized application, is a software application that operates on a blockchain network and utilizes smart contracts for its functions. dApps aim to provide transparency, security, and decentralization.
A fundamental principle of blockchains, involving the distribution of decision-making and control among many participants rather than a single entity.
DeFi refers to a set of financial services and applications built on blockchain technology that aim to provide decentralized alternatives to traditional financial systems.
Deflation refers to a decrease in the general price level of goods and services in an economy, resulting in an increase in the purchasing power of money. It is the opposite of inflation.
Delegated Proof of Stake (DPoS) is a consensus mechanism used in some blockchain networks where participants (delegates) are elected by token holders to validate transactions and create new blocks on their behalf.
In a proof-of-stake (PoS) blockchain network, a delegator is a participant who assigns their staking tokens to a validator, allowing the validator to stake on their behalf and share rewards.
A Distributed Denial of Service (DDoS) attack is a coordinated attempt to overwhelm a target with a massive volume of traffic or requests, causing disruption or downtime.
A decentralized platform for cryptocurrency trading that operates without a central authority or intermediary. DEXs allow users to trade directly with one another while retaining control of their private keys.
Difficulty refers to the level of complexity and effort required to successfully mine or validate new blocks on a blockchain network. It adjusts periodically to maintain a consistent block creation rate.
A dip refers to a short-term decrease in the price of a cryptocurrency or asset after a period of growth or bullish market activity.
A distributed ledger is a decentralized database that records and stores transactions across multiple nodes or participants in a network. It ensures transparency and immutability of data.
Distributed Ledger Technology (DLT) is a broad term that encompasses various blockchain-like technologies. It refers to systems that use a decentralized and distributed network of computers to record and store transactions and data.
Dominance refers to the market share or proportion of total cryptocurrency market capitalization that a specific cryptocurrency holds. For example, Bitcoin dominance represents the percentage of the total market cap attributed to Bitcoin.
A Denial of Service (DoS) attack is a malicious attempt to disrupt the normal functioning of a computer network or system by overwhelming it with a flood of traffic or requests.
Double spending refers to the act of using the same cryptocurrency tokens more than once, often exploiting a vulnerability to make multiple transactions with the same funds.
Dump refers to a significant and rapid decrease in the price of a cryptocurrency or asset, often due to a large sell-off by holders.
DYOR is a common acronym used in the cryptocurrency community, emphasizing the importance of conducting thorough research and due diligence before making investment decisions.
EIP-1559 (Ethereum Improvement Proposal 1559) is a significant upgrade to the Ethereum network that introduces a new fee structure for transactions, aiming to improve the user experience by making transaction fees more predictable and efficient.
An exploit is a piece of code, technique, or action that takes advantage of a vulnerability or weakness in a system, application, or network to gain unauthorized access, control, or manipulate data.
A tool that allows users to view and verify transactions, addresses, and blocks on a blockchain. Blockchain explorers provide transparency and visibility into the network's activity.
ERC-20 is a widely adopted token standard on the Ethereum blockchain. It defines a set of rules and functions that enable the creation and management of fungible tokens. These tokens are interchangeable and represent a unit of value within a specific ecosystem.
ERC-223 is a token standard for the Ethereum blockchain that improves upon the ERC-20 standard by providing additional functionalities and addressing certain vulnerabilities related to token transfers.
ERC-721 is a token standard on the Ethereum blockchain that is used to create non-fungible tokens (NFTs). Unlike ERC-20 tokens, each ERC-721 token is unique and represents ownership of a specific digital asset, such as digital art, collectibles, or in-game items.
ERC-777 is an advanced token standard for the Ethereum blockchain that enhances the functionality of ERC-20 tokens by introducing new features, including improved security and increased flexibility.
ERC-827 is a token standard for the Ethereum blockchain that extends the capabilities of ERC-20 tokens by allowing token transfers to include additional data and functionality.
ERC-884 is a token standard for the Ethereum blockchain designed to represent membership in a group or organization, enabling the creation of tokens that symbolize memberships or access rights.
ERC-948 is a token standard proposal for the Ethereum blockchain that aims to introduce a gas-efficient way to track and manage off-chain assets while retaining the security and benefits of on-chain transactions.
ERC-1155 is a token standard on the Ethereum blockchain that introduces a hybrid approach for creating both fungible and non-fungible tokens. It allows a single smart contract to manage multiple token types, optimizing efficiency and reducing gas costs.
The Financial Action Task Force (FATF) is an international organization that sets standards and promotes policies to combat money laundering, terrorist financing, and other financial crimes.
A faucet is a website or application that distributes small amounts of cryptocurrency to users for free as a way to introduce them to the technology or promote a specific project.
A federated blockchain is a private or consortium blockchain where multiple organizations or entities collaborate to manage and control the network.
Traditional government-issued currency, such as the US Dollar or Euro, that is not backed by a physical commodity but rather by the government's declaration and legal tender laws.
A type of decentralized finance (DeFi) loan that allows users to borrow and repay funds within a single transaction block, provided the borrowed amount is returned within the same block.
The fear of missing out on potential gains in the cryptocurrency market, leading investors to act impulsively.
A modification to the source code of an existing blockchain that creates an alternative version. It can be a hard fork (irreversible divergence) or a soft fork (compatible upgrade).
FUD, an acronym for "Fear, Uncertainty, and Doubt," refers to the spreading of negative or misleading information about a particular cryptocurrency, project, or market with the intention of creating fear and panic among investors or the community.
A full node is a computer or server on a blockchain network that maintains a complete copy of the blockchain and participates in validating and propagating transactions and blocks.
In trading, "spot" refers to the current market price of an asset, while "future" refers to a contract for the future delivery of the asset at a predetermined price.
A gas fee is a transaction fee paid by users on a blockchain network to compensate validators or miners for processing their transactions.
The maximum amount of computational effort (gas) that a user is willing to spend on a transaction or smart contract execution on a blockchain network.
The processes and mechanisms through which decisions are made and changes are implemented within a blockchain project or protocol.
Gwei is a unit of measurement for the gas price on the Ethereum network. It represents a small fraction of Ether (ETH) and is used to determine transaction fees.
Halving refers to an event in the blockchain protocol of some cryptocurrencies, such as Bitcoin, where the block reward given to miners is reduced by half. This event occurs at specific intervals and has an impact on the rate of new coin issuance.
A hard fork is a significant and irreversible change to the rules of a blockchain protocol, resulting in the creation of a new branch or version of the blockchain that is incompatible with the old version.
A hardware wallet is a physical device that securely stores cryptocurrency private keys offline. It provides enhanced security by keeping the keys isolated from internet-connected devices.
A hash is a function that converts input data of any size into a fixed-size string of characters. It is commonly used in cryptography and blockchain technology for data integrity verification.
Hash power refers to the computational resources and processing capacity contributed by miners or nodes to secure a blockchain network and validate transactions.
Hash rate is the speed at which a miner or network is capable of solving cryptographic puzzles or hashing algorithms, often measured in hashes per second (H/s).
A holder refers to an individual or entity that owns and holds a specific amount of a cryptocurrency or other asset. Holders are participants in the cryptocurrency ecosystem who may use their holdings for various purposes.
A honeypot is a cybersecurity technique or trap designed to attract and identify unauthorized access attempts or malicious activities by luring potential attackers.
A hot wallet is a cryptocurrency wallet that is connected to the internet and is used for frequent transactions. It offers convenience but may be more vulnerable to security breaches.
Hyperledger is an open-source collaborative effort hosted by the Linux Foundation that aims to advance cross-industry blockchain technologies. It focuses on developing enterprise-grade distributed ledger frameworks and tools, fostering collaboration and innovation among various industries.
A fundraising method in which a new cryptocurrency or token is offered to the public in exchange for other cryptocurrencies, such as Bitcoin or Ethereum.
An initial token sale conducted on a decentralized exchange (DEX), allowing participants to acquire new tokens directly from the exchange.
An initial token sale hosted by a centralized exchange, which helps with fundraising and provides a platform for token sales.
IFO is a token sale event within decentralized finance (DeFi) platforms, where users provide liquidity in exchange for new tokens, often involving yield farming.
Inflation is the increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.
IoT refers to the interconnected network of physical devices, vehicles, appliances, and other objects that are embedded with sensors, software, and connectivity to exchange data and information.
An IP address is a numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication. It serves as a unique identifier for devices on the network.
IPFS is a decentralized and distributed protocol designed to create a peer-to-peer method of storing and sharing hypermedia in a distributed file system.
IPO is the process through which a company offers its shares to the public for the first time, allowing individuals to invest and become shareholders.
ITO is a token sale similar to an ICO (Initial Coin Offering), where a new cryptocurrency token is offered to investors or the public.
KYA involves the verification and authentication of digital assets, ensuring their legitimacy, origin, and ownership.
KYC is a regulatory process that financial institutions and businesses use to verify the identity of their customers, typically involving the collection of personal information and documentation.
KYT refers to the process of monitoring and analyzing transactions to identify potential money laundering or suspicious activities.
The primary blockchain layer that handles core transaction and consensus functions. Layer 1 solutions are standalone blockchains (e.g., Bitcoin, Ethereum).
Secondary scaling solutions built on top of layer 1 blockchains to enhance scalability and efficiency. Layer 2 solutions include technologies like sidechains and state channels.
Lending involves providing assets or funds to borrowers on a lending platform in exchange for interest payments or fees.
libp2p is a modular network stack and protocol suite that enables peer-to-peer communication and connectivity in decentralized applications.
A simplified version of a white paper that presents key information about a cryptocurrency project, such as its purpose, features, and advantages, in a concise manner.
The ease with which an asset can be bought or sold without causing significant price changes.
A liquidity pool is a reserve of assets locked in a smart contract on a decentralized exchange (DEX) or automated market maker (AMM) platform, used to facilitate trading and provide liquidity.
An LP is an individual or entity that provides liquidity to a decentralized exchange (DEX) or automated market maker (AMM) platform by depositing assets into a liquidity pool.
The fully operational and live version of a blockchain network, where real transactions and activities take place, as opposed to testnets or other development environments.
The total value of a cryptocurrency multiplied by its current price. An indicator of the relative size of a cryptocurrency.
Market makers are individuals or entities that provide liquidity to financial markets by offering to buy or sell assets at specified prices.
A type of cryptocurrency node that fulfills specific functions within a blockchain network, often requiring a minimum amount of the cryptocurrency to be held as collateral.
The mempool, short for memory pool, is a temporary storage area within a blockchain where unconfirmed transactions wait to be included in a block.
MEV refers to the profit miners can make by reordering, including, or excluding transactions within a block to maximize their revenue, often in decentralized finance (DeFi) environments.
A data structure used in blockchain networks to efficiently verify the integrity and inclusion of transactions within a block.
A miner is a participant in a proof-of-work blockchain network who uses computational power to solve complex mathematical puzzles and validate transactions, contributing to the security and consensus of the network.
The process of validating transactions and adding new blocks to the blockchain, typical of proof-of-work blockchains.
A mining farm is a large-scale facility equipped with multiple mining rigs or hardware setups dedicated to cryptocurrency mining.
A mining pool is a collective group of miners who combine their computational resources and share rewards based on their contributed hash power.
A mining rig is a specialized computer system built for cryptocurrency mining, often equipped with multiple GPUs or ASICs to efficiently solve cryptographic puzzles.
Minting refers to the process of creating new tokens, often associated with non-fungible tokens (NFTs) or other blockchain-based assets.
Multi-Level Marketing (MLM), also known as network marketing or pyramid selling, is a marketing strategy where participants earn commissions not only for their direct sales of products or services but also for the sales made by individuals they recruit into the program.
A mnemonic phrase, also known as a seed phrase or recovery phrase, is a series of words that represent the private key of a cryptocurrency wallet. It is used for wallet recovery and backup.
MPC is a cryptographic technique where multiple parties jointly compute a function on their individual inputs while keeping their inputs private. It enhances privacy and security in various applications.
Multi-signature refers to a security feature that requires multiple private keys to authorize a cryptocurrency transaction. It enhances security by requiring multiple approvals.
A type of cryptographic token that represents unique and indivisible digital ownership of an item or content, such as images, videos, games, etc.
A computer or device that participates in the network by maintaining a copy of the blockchain and validating transactions. Nodes play a crucial role in the decentralized nature of blockchains.
Non-custodial refers to a service or platform that allows users to retain full control over their assets, such as cryptocurrencies, without relying on a third party to hold or manage them. Non-custodial solutions prioritize user ownership and security.
A nonce is a random or unique number used in proof-of-work algorithms to change the input of a hash function and generate a valid block hash.
Notarization in blockchain refers to the process of creating an immutable and tamper-proof record of a document or transaction, ensuring its authenticity and integrity.
An oracle is a third-party data source or service that provides external information to a blockchain smart contract, enabling it to interact with the real world.
OTC refers to the direct trading of assets, such as cryptocurrencies, between parties without the use of an exchange. OTC trades often involve large volumes and may be facilitated by brokers.
Open source refers to software or projects that are publicly accessible and allow users to view, modify, and distribute the source code.
Play-to-Earn (P2E) refers to a gaming model in which players can earn cryptocurrency or other digital assets through their in-game activities and achievements.
P2P refers to a decentralized communication model where participants interact directly with each other without intermediaries, enabling direct data exchange.
Peg refers to the practice of maintaining a fixed exchange rate between a cryptocurrency and another asset, such as a fiat currency or commodity.
Permissionless refers to a system or network that allows anyone to participate, contribute, or use its services without requiring prior approval or authorization.
Permissioned refers to a system or network that imposes restrictions on participation, access, or usage based on predefined permissions or authorization.
Phishing is a fraudulent activity where attackers use deceptive tactics, often through emails or websites, to trick individuals into revealing sensitive information, such as passwords or private keys.
POAP, is a type of non-fungible token (NFT) that is minted to represent attendance at a specific event or location. It provides a way to prove and commemorate participation in events, conferences, and gatherings on the blockchain.
A Ponzi scheme is a fraudulent investment scheme where returns are paid to earlier investors using funds from newer investors, rather than from legitimate profits.
A consensus mechanism where participants (validators) are chosen to create new blocks and validate transactions based on the number of tokens they hold and "stake" as collateral.
A consensus mechanism used in blockchain networks where participants (miners) solve complex mathematical puzzles to validate transactions and create new blocks.
A pre-sale is an initial token sale conducted before the public sale, often available to a select group of investors or participants at a discounted price.
A secret number that enables access to and control of funds in a wallet. It must be kept secret and secure.
A private sale is a token sale that is conducted privately, often to a select group of investors or participants, before a public sale.
Proof of Reserve is a mechanism used by financial institutions to prove the existence and ownership of assets held on behalf of customers, often in stablecoin or cryptocurrency contexts.
Proof of Authority is a consensus mechanism where validators are chosen based on their reputation or authority, rather than computational power, to validate transactions and create new blocks.
Proof of Burn is a consensus mechanism where participants "burn" or destroy their existing cryptocurrency tokens to mine or validate new blocks.
Proof of Developer is a community-driven validation process where developers demonstrate their involvement and contributions to a project's codebase and development efforts.
Proof of Immutability refers to providing evidence that data or information stored on a blockchain has not been altered or tampered with since its creation.
Proof of Replication is a consensus mechanism where participants prove the storage of a specific piece of data by replicating and storing it.
Proof of Spacetime is a consensus mechanism where participants prove storage space on a decentralized network over a period of time.
Proof of Time is a consensus mechanism where participants prove the passage of time through various cryptographic challenges.
Proof of Validation is a consensus mechanism that combines elements of proof of stake and proof of authority, where validators prove their financial commitment and expertise.
A public address derived from the private key, used to receive payments or encrypted messages.
A public sale is a token sale that is open to the general public, allowing a broader range of investors to participate.
A Pyramid Scheme is a fraudulent business model where participants recruit others to invest, and the returns of earlier investors are funded by payments from new participants.
Quantum resistance refers to the resistance of cryptographic algorithms and systems to attacks by quantum computers, which have the potential to break certain traditional encryption methods.
Quorum refers to the minimum number of participants required to achieve consensus or validate transactions within a blockchain network.
Redundancy involves the inclusion of extra components, nodes, or systems in a network to ensure reliability and fault tolerance in case of failures.
ReFi, short for refinancing, is the process of replacing an existing loan or financial instrument with a new one that offers better terms, often in the context of decentralized finance (DeFi).
A relay chain is the main blockchain within a blockchain network that coordinates and connects multiple sidechains or other components.
RFQ is a trading mechanism where a buyer requests quotes from market makers or liquidity providers before executing a trade.
A roadmap is a strategic plan or timeline that outlines the goals, milestones, and planned developments for a project over a specific period.
ROI is a measure of the profitability of an investment, calculated as the ratio of the gain or loss from an investment relative to its cost.
A rug pull refers to a deceptive and abrupt action where the creators or developers of a project exit or withdraw funds, causing significant financial losses for investors.
The scaling problem refers to the challenge of maintaining high throughput and efficiency as a blockchain network grows in size and usage.
A scam is a fraudulent scheme or activity designed to deceive and exploit individuals for financial gain.
A scamcoin refers to a cryptocurrency created with malicious intent or deceptive marketing to defraud investors.
A scammer is an individual or entity that engages in fraudulent activities to deceive and exploit others, often for financial gain.
An SDK is a collection of software tools and resources that developers use to create and enhance applications for specific platforms or technologies.
The secondary market refers to the marketplace where previously issued securities or assets, such as stocks or tokens, are bought and sold among investors.
Secure Proof of Stake is a consensus mechanism that combines the security features of proof of stake with additional safeguards to prevent malicious behavior.
A type of cryptocurrency token that represents ownership in an asset, such as real estate, equity in a company, or other financial instruments.
Segregated Witness (SegWit) is a protocol upgrade for certain blockchain networks that separates transaction data from signature data, improving efficiency and scalability.
SHA256 is a cryptographic hash function that generates a fixed-size output (256 bits) and is commonly used in blockchain technology.
Shamir's Secret Sharing is a cryptographic technique that divides a secret into multiple parts, called shares, which are distributed among participants. A minimum threshold of shares is required to reconstruct the original secret.
A scalability technique in which a blockchain network is divided into smaller partitions (shards) to process transactions and smart contracts concurrently, increasing throughput.
A colloquial term used to describe a cryptocurrency with little to no value, often created without genuine utility or purpose.
A short squeeze occurs when the price of an asset rapidly increases, forcing short sellers to cover their positions by buying the asset, further driving up the price.
A sidechain is a separate blockchain that is interoperable with the main blockchain, allowing for specific use cases or functionalities without affecting the main network's performance.
Slashing refers to the penalty imposed on validators in proof-of-stake networks for malicious or incorrect behavior, such as double-signing or network disruptions.
Slippage refers to the difference between the expected price of a trade and the actual executed price due to market volatility and liquidity.
A self-executing program that automatically and accurately carries out predefined conditions in its code. Smart contracts run on a blockchain.
In trading, "spot" refers to the current market price of an asset, while "future" refers to a contract for the future delivery of the asset at a predetermined price.
A Soulbound NFT refers to a non-fungible token that is permanently linked to a specific user or account. Unlike traditional NFTs that can be freely bought, sold, or transferred, a Soulbound NFT is "bound" to its owner and cannot be transferred to other parties.
A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, such as a fiat currency or commodity.
Store of Value refers to an asset, such as cryptocurrency or precious metals, that can be held as a long-term investment due to its ability to retain value over time.
Supply Chain refers to the sequence of processes involved in producing and distributing goods, often tracked using blockchain technology to enhance transparency and traceability.
Swarm refers to a network of interconnected nodes that collaborate to perform tasks or functions in a decentralized and autonomous manner.
A malicious activity where an attacker creates multiple fake identities or nodes to gain disproportionate control or influence over a network.
SPL (Solana Program Library) is a token standard on the Solana blockchain. It provides a framework for creating fungible and non-fungible tokens, supporting high-speed transactions and scalability.
A type of cryptocurrency that aims to maintain a stable value by pegging its price to a reserve asset, such as a fiat currency or commodity.
The locking and immobilization of a certain amount of cryptocurrency in a wallet to support the operations of a proof-of-stake blockchain and earn rewards.
STP is an automated process used in financial services to streamline the flow of transactions from initiation to settlement without manual intervention.
The total number of units of a cryptocurrency in circulation. It can be divided into circulating supply and total supply.
Symmetric encryption is a cryptographic method where the same key is used for both encryption and decryption of data.
Taproot is a proposed Bitcoin protocol upgrade that enhances privacy and scalability by allowing more complex smart contracts to be executed off-chain, while maintaining the appearance of a simple transaction on-chain.
Tendermint is a Byzantine fault-tolerant consensus engine that powers many blockchain networks. It ensures secure and consistent block validation and consensus among participants.
A separate blockchain network used by developers to test and experiment with new features, smart contracts, and applications before deploying them to the mainnet.
The TGE date refers to the specific date when a new token is generated or created, often associated with a token sale or distribution event.
A threshold signature scheme is a cryptographic method where multiple parties collectively create a single digital signature without revealing individual private keys.
A timestamp is a digital record indicating the date and time when a specific event or transaction occurred within a blockchain network.
A digital representation of value based on a blockchain. Tokens can represent assets, rights, or specific access within a system.
An entity or individual responsible for creating and launching a new cryptocurrency token. This involves defining the token's properties, smart contracts, and functionalities.
Token issuance refers to the creation and distribution of new tokens on a blockchain network, often through initial coin offerings (ICOs) or token generation events (TGEs).
Token lockup refers to the practice of restricting the transfer or use of tokens for a certain period, often to incentivize long-term participation or reduce market volatility.
Token migration is the process of transferring tokens from one blockchain network to another, typically during a network upgrade or migration to a different protocol.
Tokenization is the process of representing real-world assets or rights as digital tokens on a blockchain, enabling fractional ownership and enhanced liquidity.
The economic model and design of a cryptocurrency token. Tokenomics encompasses factors like token distribution, supply mechanisms, inflation rate, utility, and its role within a project's ecosystem.
TradFi, short for "Traditional Finance," refers to the established and conventional financial systems and institutions that have been in place for many years, predating the advent of blockchain technology and cryptocurrencies.
TRC-20 is a token standard on the TRON blockchain, similar to ERC-20 on Ethereum. It facilitates the creation and management of fungible tokens within the TRON ecosystem.
TRC-721 is a token standard on the TRON blockchain, similar to ERC-721 on Ethereum. It allows the creation of non-fungible tokens (NFTs) that represent unique digital assets.
Trustless refers to a system or process that operates without the need for participants to trust each other, relying instead on cryptographic verification and consensus mechanisms.
TVL represents the total amount of assets, often in cryptocurrency, locked or staked within a decentralized finance (DeFi) protocol or application.
UTXO refers to the output of a transaction that has not yet been used as an input for a new transaction, a concept used in Bitcoin and other blockchain networks.
A validator is a participant in a proof-of-stake (PoS) blockchain network responsible for verifying and validating transactions and creating new blocks.
Vesting refers to the process by which ownership or access to assets, such as tokens or stocks, is gradually earned over a specified period, often as part of an incentive or compensation plan.
VASPs are entities that provide services related to virtual assets, such as cryptocurrency exchanges, wallet providers, and custodians.
A term used to describe individuals or entities that hold a significant amount of a cryptocurrency, often with the potential to influence market prices due to their large holdings.
An application or device that allows for the management, storage, and exchange of cryptocurrencies in a secure manner.
In the context of cybersecurity, a white hat refers to an ethical hacker or cybersecurity expert who uses their skills to identify vulnerabilities and weaknesses in systems, applications, or networks for the purpose of improving security.
A technical document that outlines the details of a crypto project, including conceptual foundations, technology, token usage, and roadmap.
A wrapped token is a digital representation of an underlying cryptocurrency or asset that is "wrapped" on a different blockchain. It allows the asset to be used and traded on the new blockchain's ecosystem while still maintaining its value and characteristics from the original blockchain.
A technical document that provides detailed specifications and technical explanations of a blockchain project's protocols, algorithms, and functionalities. It is more technical than a white paper.
A cryptographic technique that allows one party (the prover) to prove to another party (the verifier) that a statement is true without revealing any specific details about the statement itself.
A zero-day vulnerability is a software security flaw that is exploited by attackers before the software vendor releases a fix or patch, leaving users vulnerable.
zk Rollup is a layer 2 scaling solution that bundles multiple transactions off-chain and submits a single proof to the main chain, improving scalability and efficiency.
zk SNARKs are cryptographic proofs that allow one party to prove knowledge of a statement without revealing the statement itself, enhancing privacy and efficiency in transactions.