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In this list you can find definitions for common (and not so common) terms you’ll encounter in the cryptocurrency space.
The crypto world can sometimes be overwhelming with all of the jargon being thrown around. That’s why we’ve put together this blockchain glossary for beginners.
An account is the record of a user in a system. A cryptocurrency account gives users access to exchanges and hot wallets to buy, sell, and trade cryptocurrencies.
The accumulation indicator is used by traders to spot the tops and bottoms of a cryptocurrency chart to anticipate trend reversals.
Adaptive State Sharding:
Elrond combined all the three types of Sharding: Network Sharding, Transaction Sharding & State Sharding, to increase performance and communication among the Shards through parallel processing.
In the Blockchain space, address is a hexadecimal notation that serves as the account’s identity.
The Aeternity Blockchain adopts a hybrid consensus mechanism between Proof of Work (PoW) & Proof of Work. (PoS)
Preventing unwanted access to digital information or machines to improve security. If data cannot be accessed, it cannot be corrupted.
A token/marketing campaign where a Blockchain project distributes its token to the community in exchange for simple tasks.
A stablecoin maintains its price and supply through an algorithm. They do not have any collateral backing and instead use complex algorithms to maintain their peg with the fiat currency or the paired cryptocurrency they track.
In Algorithmic Trading, a computer program/ algorithm generates automated buy and sell signals using mathematical models.
Alice and Bob:
Exemplar parties to a smart contract.
The term “altcoin season” refers to a period of time in the market when the prices of altcoins rise dramatically compared to bitcoin for several weeks or months.
All cryptocurrencies other than Bitcoin are termed Altcoin.
AML (Anti Money Laundering):
Anti-money laundering (AML) refers to the laws and regulations that financial institutions must follow to comply with legal requirements and prevent criminals from passing off illegally obtained funds as legitimate earnings.
AMM (Automated Market Maker):
Decentralized exchanges with an autonomous trading mechanism employ AMM as the underlying protocol. Simply put, it allows two users to swap assets without the need for a third party to facilitate the transaction.
Angel Investors often participate in the Initial Coin Offering (ICO) of a Blockchain project to provide financial backing.
When you ‘ape into’ something, you’re irresponsibly buying something typically out of “FOMO” and/or without doing your due diligence.
API (Application Programming Interface):
API is a software intermediary that allows users or developers to interface with cryptocurrency exchanges, execute trades, pull data, and receive data in real-time.
APR (Annual Percentage Rate):
Simple Interest is used to calculate the APR. It is the amount of money you receive as investment interest every year. This includes any additional expenditures or fees incurred along the route. The principal amount determines the Annual Percentage Rate.
APY (Annual Percentage Yield):
APY is calculated using compound interest. It is the actual rate of return on investment, taking compound interest into account. For example, you can collect staking rewards and add them to your total staked coins to increase your profit the next time you stake. The Annual Percentage Yield (APY) is calculated on the amount, not the principal.
Ashdraked is a crypto trading term that signifies a person whose investment in crypto falls to zero.
ASIC (Application-specific integrated circuit):
A computerized device or hardware designed for the sole purpose of mining cryptocurrencies.
Asset-backed tokens are a class of digital assets pegged to real-world assets, such as company shares, gold, silver, real estate, etc.
ATH (All-Time High):
The highest price a cryptocurrency has ever reached since its listing.
ATL (All Time Low):
The lowest price a cryptocurrency has ever reached since its listing.
Atomic swaps are automated, self-enforcing cryptocurrency exchange contracts that allow cryptocurrencies to be traded P2P without the need for a third party. Basically, two parties trade tokens from two different blockchains without using a centralized exchange.
The public sale of an asset where the highest bidder acquires the asset through the bidding process. The auction data is confirmed/updated using a secure cryptographic digital signature broadcasted to a public blockchain for backup.
The process of inspecting the underlying smart contracts, code, and/or algorithms to maximize the security of a project by detecting its potential loopholes and weaknesses.
Bandwidth is the measure of data transferred between two or more devices. PKT is the only layer-1 blockchain designed to support bandwidth trading marketplaces and high-speed internet service.
Crypto basket is similar to crypto index funds. A basket is a collection of digital currencies treated as a single asset, eliminating the need for holders to check individual currencies constantly.
The chain that underpins Ethereum 2.0. The Beacon chain manages PoS protocol and all the related shard chains.
A market situation where the prices of assets fall 20% or more.
A bearish trend means the prices of assets might decrease, and selling is high.
When a group of traders manipulates the price of an asset towards the lower range.
BEP-20 is an extension of the ERC-20 & BEP-2 token standard to provide additional functionality that allows users to move tokens between different blockchains.
BEP-2 is a technical standard for the Binance Chain’s token implementation..
The BEP-721 standard enables the creation of Non-Fungible Tokens (NFTs) on the Binance Smart Chain (BSC).
The price buyer is willing to pay for an asset.
The largest cryptocurrency exchange in the world.
ATM that allows anyone to buy Bitcoin or another supported cryptocurrency through cash or credit card.
The dominance of Bitcoin relative to Altcoins in the market.
Bitcoin Improvement Proposal (BIP):
A standard document designed for introducing new features or updates to the Blockchain Infrastructure.
On May 22, 2010, an early cryptocurrency adopter bought two pizzas using 10k Bitcoins. As a celebration, Bitcoin Pizza Day is appropriately named.
The first and most popular cryptocurrency based on Blockchain developed from a whitepaper written by Satoshi Nakamoto in 2008.
A unit used to represent the subdivision of a single Bitcoin.
A block explorer is a web tool that allows users to search for real-time and historical data about a blockchain, such as information about blocks, transactions, addresses, etc.
A block header is used to identify a specific block on a blockchain. It comprises all the metadata, including the block’s timing and difficulty, the Merkle root of the contained transactions, and the nonce.
It represents the number of confirmed blocks in a Blockchain or the sequence of a block in the chain. The first block has a height 0, also called the genesis block.
The coins granted to a miner or a group of miners to solve the cryptographic problem that must be solved to create a new block on a blockchain.
The amount of data a block carries in a chain.
The approximate time to produce a new block in the Blockchain.
The Blockchain is a chain of Blocks. Each block contains encrypted information about a transaction on the Blockchain. Blocks are linked together using cryptography.
A search engine that allows users to browse through Blockchain records.
The Blockchain Trilemma addresses the three challenges developers face in creating a blockchain – Decentralization, Scalability & Security.
Blockchain is a shared, immutable, distributed ledger to record transactions.
Well-known projects or tokens with the most stability. An example of a blue-chip NFT project is CryptoPunks by Larva Labs.
A mathematical concept used to describe the relationship between price and the supply of an asset. Bonding curve contracts are used in the cryptocurrency world to ensure that the cost of each token rises as the number of tokens released rises.
A bot is a software program that performs automated and predefined tasks. Example: carrying out a cryptocurrency trade.
A blockchain bridge connects two blockchains and allows users to send cryptocurrency from one chain to the other.
A short form for “Binance Smart Chain.”
A bug bounty program is a deal offered by many organizations and projects for developers to find bugs and vulnerabilities in software. Polygon paid $3.4M to a developer who found a significant bug in their system.
An attack where the attacker takes advantage of a system’s vulnerability.
BUIDL is a warping term for BUILD. Instead of passively holding, BUIDL is focused on a mindset of investing in the growth of the Blockchain ecosystem and cryptocurrency platform.
The time in the market in which cryptocurrency prices are believed to grow dramatically.
A bull run is a period of time in the cryptocurrency market during which the values are constantly rising.
A bull trap is a misleading signal. A continuously sinking asset looks to reverse in a convincing rally but quickly resumes its downward trend, resulting in even lower pricing.
An optimistic person who believes the price of an asset will increase.
When a certain number of crypto tokens are said to be burnt, it means they have been permanently pulled out of circulation.
Buy The Dip (BTD):
An exclamatory phrase crypto enthusiasts use to buy when the price is low.
Byzantine Fault Tolerant (BFT):
The ability of a network to properly reach consensus at any time, assuming that no more than 1/3 of its actors are malicious.
A candlestick uses four primary components to illustrate the price action of an asset over a given timeframe: the open, close, high, and low.
In 2011, Mike Caldwell first introduced physical bitcoins. He named these Cassius. The coin’s design includes a tamper-evident hologram label that conceals the private key. But in 2013, it was pulled out of circulation due to the intervention of the Financial Crimes Enforcement Network (FinCEN), which believed the activity might be considered money transmitting and hence require a license.
Ethereum originally runs on Proof-of-Work (PoW) consensus mechanism. But for the longest time, Ethereum plans to move to Proof of Stake consensus. Ethereum Casper is the protocol that combines Proof of Work and Proof of Stake.
Community Designated Sellers (CDS):
Sellers who create wallet addresses for specific purposes and charge fees to those who want to sell their assets.
CeDeFi, or centralized, decentralized finance, is a hybrid of centralized and decentralized money that combines the best qualities of each. CeDeFi enables low-cost testing of DeFi products such as decentralized exchanges (DEX), liquidity aggregators, yield farming tools, lending protocols, and more.
CEXs is a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner. The company is in charge of the funds and is regulated by banks & government.
Chaffing is a technique for enhancing privacy without requiring strong encryption.
Chain split is another term for a cryptocurrency fork. It means to split the original chain into one or multiple different chains. This results in the separation of one or more distinct projects from the original parent project.
Chaincode is the Hyperledger Fabric equivalent of Smart Contracts.
The change from a transaction is temporarily held at a change address before being refunded to the sender’s wallet.
It is a concept relevant to cryptocurrencies using the UTXO model. It represents the number of coins returned back to a user after they use their unspent outputs to conduct a transaction.
The number of coins that are available in the market for the public to trade, stake, or invest.
The price at which an asset closes during a day cycle.
Cloud mining is a method of earning cryptocurrencies through the rental of computing resources from third parties.
Represents a new blockchain-based digital asset.
Coinbase is a cryptocurrency brokerage platform established in the United States that boasts the greatest transaction volume and client base in the industry.
An offline wallet that isn’t connected to the internet at all. These wallets keep bitcoins safe from internet hackers.
Cryptocurrencies use collateral tokens as a risk mitigation tool when borrowing other types of crypto tokens.
Putting anything of value up against a loan to ensure that the loan will be paid back.
A Collateralized Stable Coin is a fungible token that is entirely or almost entirely backed by collateral held in a reserve of the protocol that issued that token.
Composable DeFi refers to interoperability between different DeFi protocols. This allows different DeFi applications to work together to create different new use cases and financial products.
It is an extension to any non-fungible token that adds the ability to own other non-fungible or fungible tokens.
Concentrated liquidity significantly improves an LP’s capital efficiency, thereby opening the door to a plethora of liquidity supply strategies.
A confirmation measures the number of blocks that have passed since a transaction was added to a blockchain.
The underlying technology behind the main functionalities of all blockchain technologies.
A private blockchain network operated by a company or a group of companies.
On February 28th, the Constantinople upgrade of Ethereum happened. This fork is a part of the multi-step journey towards Serenity, which implements the Proof of Stake protocol.
A contract account is the one that contains the crypto balance and the underlying code.
Instead of a part of Blockchain, core wallets are able to contain the whole chain. Example: Bitcoin Core is a wallet for storing a full node network of Bitcoin – this implies that a user has to download the entire history of Blockchsin to run the wallet.
Mining cryptocurrencies requires an excessive amount of computing power. Central Processing Unit (CPU) mining refers to the mining of cryptocurrencies using powerful and scalable CPUs.
Craig Wright is an Australian computer scientist that has publicly claimed to be Bitcoin inventor Satoshi Nakamoto.
A cross-chain bridge connects two Blockchain and enables an exchange of cryptocurrency or NFTs from one blockchain network to another.
Cross-Chain Communication refers to the transferring of information between one or more blockchains.
Cross-chain refers to interoperability between two independent Blockchains.
The blockchain-based crowdfunding platform opens up new opportunities for startups by allowing them to raise funds to fund both projects and enterprises.
Any digital asset that uses cryptographic techniques as the foundation.
Cryptoeconomics refers to the combinations of cryptography, computer networks, and game theory to study the decentralized marketplaces and applications along with the use of some set of economic incentives for their maintenance.
Decentralized or Centralized exchanges used for buying and selling cryptocurrencies.
Invoice of goods and services bought using cryptocurrencies.
Digital currency is used as collateral in a cryptocurrency-backed loan. The underlying premise is similar to that of a mortgage or auto loan: you pledge your crypto assets in exchange for a loan, which you then repay over time.
Crypto art is the fusion of digital art and Blockchain technology. Crypto artworks by adding a unique and indelible signature to a digital file that allows for the ability to have a verified owner of the piece.
Cryptocurrency pairs are assets that can be traded for each other on an exchange. The most popular cryptocurrency pair is ETH/BTC.
Digital currencies that leverage cryptography and Blockchain Technology for their operation.
Cryptographic Hash Functions:
Cryptographic Hash is a Hash function that takes random size input and yields a fixed-size output. It is basically a mathematical function that maps data of arbitrary size to a bit array of a fixed size.
Cryptography is a means of protecting sensitive information against unauthorized access. Cryptographic techniques are used in security protocols on the blockchain. It ensures that a transaction between two nodes in a blockchain network is secure.
Cryptojacking is an online threat that hides on a computer or mobile device and uses the machine’s resources to mine cryptocurrencies.
CryptoKitties is an online blockchain game released on Ethereum in late November 2017, where players buy, trade and breed adorable digital cats.
The CryptoPunks are a collection of 24×24, 8-bit-style pixel art images of misfits and eccentrics. There are exactly 10,000 of them, each with its own ostensible personality and unique combination of distinctive, randomly generated features.
Daedalus wallet is a full-node hierarchical deterministic (HD) desktop wallet for the ADA currency. A full node wallet has maximum security and completely trustless operation without centrally hosted 3rd party servers.
Decentralized Autonomous Organization (DAO) is a Blockchain-based organization that is governed by a set of computer-defined rules and smart contracts. It is controlled by the organization’s community and not influenced by a central authority. In order for the organization’s plans and policies to be accepted, a certain percentage of the community must agree.
A Decentralized Application (DApp) are applications that operate on Blockchain or peer-to-peer technology. It leverages smart contracts to run autonomously.
A Distributed – Denial of Service (DDoS) attack in blockchain can be accomplished by an attacker who creates an infinite number of correct transactions for a short time and delivers them to the connected nodes.
Dead Cat Bounce:
A temporary jump in the price of a token after a prolonged decrease.
A cryptocurrency that is no longer in existence.
In the blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network.
A form of currency that doesn’t need a banking institution as an intermediary.
Decentralized Exchange (DEX):
A DEX is a type of exchange where the user has full custody of their assets. A DEX doesn’t have a centralized authority. It is a peer-to-peer exchange allowing users to trade cryptocurrency without an intermediary.
Management of an organization in a decentralized way using Blockchain.
Decentralized identifiers (DIDs) are a new identifier that enables verifiable, decentralized digital identity.
A marketplace where peer-to-peer transfer of assets takes place without the intervention of a third party.
Short for “degenerate.” It mainly refers to a person that engage in digital assets like NFTs without conducting their due diligence
Delegated Proof-of-Stake (DPoS):
DPoS is a twist on Proof of Stake (PoS) consensus that relies on a group of delegates validating blocks on behalf of all network nodes.
The process of removing a coin from an exchange.
A deterministic wallet is a digital wallet that stores the keys of cryptocurrency holders such as Bitcoin and Ethereum. It also allows you to create public addresses without knowing your private key.
DEX aggregators pool liquidity from multiple DEXs, allowing users to achieve better token swap rates than they could on a single DEX. DEX aggregators have the capacity to optimize slippage, swap fees, and token pricing, resulting in a better rate for users. 1inch is one of the best DEX Aggregators.
A person who holds a large amount of a certain coin and refuses to sell even in adverse market conditions is said to have a diamond hand.
The difficulty level of puzzles/mathematical problems used in the Proof of Work consensus mechanism.
Form of art available online in the digital world.
Digital Asset Ecosystem:
The digital asset ecosystem includes crypto assets, non-fungible tokens (NFTs), and stablecoins.
Digital representation of an asset.
Bitcoin is sometimes called “Digital Gold.”
Digital Signature Algorithm (DSA):
DSA is a public-key signature algorithm. The DSA algorithm works on the systematic computation mechanism that computes a hash value and a digital signature.
A form of authentication to prove identity in the digital ecosystem such as Blockchain DApps, Metaverse, Marketplaces, etc.
A downturn market situation.
Distributed Ledger Technology (DLT):
A system, most commonly a blockchain, for creating a shared, cryptographically secured database.
A distributed ledger is a ledger that is replicated, shared, and distributed across all nodes in the network. It may be permissioned or private.
A distributed network is a system of interconnected but independent networks, often spread across multiple geographical locations.
Dollar-Cost Averaging (DCA):
DCA is a method in which an investor invests a large sum of money in modest increments over time rather than all at once. Most people will make more money if they buy a little every day or every week than if they try to time the market. DCA is a famous method to invest in crypto as well.
Double-spending is a potential flaw in cryptocurrency systems that refers to the possibility of a digital currency being spent more than once.
Dual Token Economy:
The dual token model occurs when a blockchain project issues two tokens – one for fundraising and the other for utility. For example, Axie Infinity follows a dual token model with $AXS & $SLP as their tokens.
A sudden sell-off of cryptocurrency.
Dynamic Coin Offering (DYCO) is a token sale architecture in which US dollars back utility tokens for a long. This creates a solid token model on the downside but can move upwards by design.
A short form for “Do Your own research.” It refers to researching a token or project before investing in it.
A Bitcoin wallet with simple UI for Windows, Mac, and Linux.
Short form for “Explain Like I’m 5”. Basically, explaining crypto concepts in layman’s terms.
Elliott Wave Theory:
Crypto traders use the Elliott Wave Theory to determine if a rally is part of a corrective phase or continues the old trend.
The rate at which new coins/tokens are released and produced.
The process of encoding information into a secret code to increase security.
An enterprise blockchain is a permissioned blockchain having a shared, trusted record of information that may streamline corporate activities at scale, such as tracking supply chain products or settling global payments, but is not controlled by a single user.
Entropy measures how random a complex system is: more entropy yields greater uniqueness.
In Solidity, enums stand for Enumerable. Enums are user-defined data types that restrict the variable to have only one of the predefined values.
EOA (Externally Owned Account):
An account controlled by a private key, and if a user owns the private key associated with the EOA, they can send tokens and messages from it.
EOS highlights the Blockchain 3.0 chain, which is optimized for transaction throughput. It uses the web assembly, or WASM, for smart contracts and the DPoS consensus method for delegated proof-of-stake.
An epoch is defined as the time required for the blockchain to grow by k blocks.
Equity tokens are a collection of encrypted data which functions as an equity certificate, but the information is recorded on a blockchain rather than a shared register.
ERC-1400 & ERC-1404:
Specifications Deal with Security Tokens.
The Standard Interface identifier used as pillar support for ERC-721.
Standard Fungible Token
European Research Council Standard.
Modifies the Total Token Supply.
Non-Fungible Token Standard
Digital Identity Standard.
Standard to improve the existing ERC-20 standard.
Enables tokens to be transferred for third parties to use
Beginner’s guide to Ethereum Token Supply.
Standard for subscription-based transactions.
Escrow refers to the scenario in which a third party retains the cryptocurrency in a transaction. Escrow functions as a middleman between the sending and receiving parties in most cases.
Ethash is the algorithm utilized for the proof of work mining Ethereum and ETH-based cryptocurrencies.
The cryptocurrency that powers the Ethereum ecosystem.
Ethereum Improvement Protocol (EIP):
EIPs (Ethereum Improvement Proposals) are standards that define prospective new Ethereum features or processes. EIPs provide technical specifics for proposed improvements and serve as the community’s “source of truth.”.
Ethereum Name Service (ENS):
ENS is a name and lookup service built on the Ethereum blockchain that allows crypto users to translate their machine-readable addresses to human-readable addresses.
Ethereum Request for Comment (ERC):
Ethereum Request for Comment (ERC) standards are technical standards used for developing new Ethereum-based tokens.
Ethereum Virtual Machine (EVM):
Ethereum Virtual Machine (EVM) is the foundation of Ethereum’s entire operating structure. EVM runs and executes smart contracts and acts as a decentralized computer with millions of executable projects.
Etherscan is a Block Explorer and Analytics Platform for Ethereum.
An event is an inheritable member of the contract, storing the arguments passed in the transaction logs when emitted.
Exchange-Traded Fund (ETF):
A cryptocurrency exchange-traded fund (ETF) is a fund consisting of an index or a basket of cryptocurrencies. Based on investor sales or purchases, the share price of cryptocurrency ETFs fluctuates on a daily basis.
A fakeout is a false breakout in which the price moves outside of a chart pattern but then immediately returns to it. Volume and candle analysis are perhaps the best indicators for identifying a real breakout in crypto trading.
A Fan Token is a type of cryptocurrency that gives its owner access to services provided by sports organizations to its supporters, such as voting on club decisions, incentives, item designs, and unique experiences. MANCHESTER CITY FAN TOKEN, ALPINE F1 TEAM FAN TOKEN, and so forth are examples of Fan Token
In gaming, this is a concept that refers to players earning in-game items in exchange for their time and work.
A crypto reward system that rewards users for completing specific tasks. The majority of websites that offer free cryptocurrencies to connect with them are scammers.
Fear and Greed Index:
The Crypto Fear and Greed Index calculates the market’s sentiment, expressed as a number between 0 and 100. Fear is represented at the lower end (0-49), whereas greed is represented at the upper end (50-100).
Currency backed by the central government.
A way to buy crypto using fiat.
Fiat-pegged cryptocurrencies are considered to be examples of stablecoins. They were created to tackle extreme levels of volatility. These currencies are usually linked to central government-backed or bank-issued fiat.
The guarantee that confirmed transactions cannot be reversed.
A denomination of Ether.
Flash loans are uncollateralized lending protocols where users can borrow and settle loans instantaneously in a single transaction without providing any collateral.
Buy and sell a token/NFT quickly to make a quick profit.
An hypothetical event when Ethereum’s market cap will overtake Bitcoin’s market cap.
The floor price of a project is the lowest price you can buy an NFT from the marketplace.
Short form for “Fear Of Missing Out.”
In the case of cryptocurrencies, forced liquidation occurs when an investor or trader cannot meet the margin requirements for a leveraged position.
In a hard fork, the blockchain protocol’s rules are updated or altered, rendering the old and new blockchains incompatible. After a hard fork, the old node will not accept newly updated blocks, and the new blockchain will be governed by new rules that will regularly reject blocks from the old blockchain. A hard fork chain is incompatible with previous versions.
A soft fork convinces the old blockchain to adopt the new rules, allowing it to accept both the updated and old blocks of transactions simultaneously. As a result, a soft fork keeps the old blockchain alive by maintaining two chains with distinct rules. A soft fork is a backward-incompatible software update.
Rights to a portion of an NFT’s ownership. Buyers can buy a portion of work based on their budget, and sellers can sell percentages of a work.
Partially collateralized fractional-algorithmic stablecoins are backed by a real-world asset to some extent. Frax is an example of a fractional-algorithmic stablecoin, partially backed by USD Coin, a stablecoin backed by the U.S dollar.
Fraud Proofs are used L2 scalability solutions that present evidence that a state transition was incorrect. They reflect an optimistic view of the world: the assumption is that blocks represent only correct states of L2 data until proven otherwise.
Short form for “Fear, Uncertainty, and Doubt.” It means to influence people with negative reviews about a cryptocurrency.
A full node has to fully download the entire blockchain history to validate transactions and blocks.
Evaluating a cryptocurrency based on some underlying characteristics to determine the next move.
In cryptocurrency, fungibility is when another identical coin or token can replace a coin or token.
Futures: Futures, also known as futures contracts, are legally binding agreements to exchange a cryptocurrency in the future at a predetermined date and price.
Gains refer to profit.
Blockchain technology is based on the fundamental mechanism of game theory. It enables cryptocurrencies like Bitcoin to manage and reroute network interruptions while also ensuring the reliability of distributed databases.
GameFi is a new Play-to-Earn (P2E) gaming ecosystem that combines DeFi, Metaverse, and Gaming. With this paradigm, players own their in-game objects rather than developers. Hence they generate revenues by selling or trading the in-game asset.
Gas is a unit of measurement for the processing power necessary to accomplish an operation on the Ethereum network. This figure refers to the charge paid to miners who complete the transaction.
When users perform a transaction on the Ethereum network, they specify their gas limit, the maximum amount of money they are willing to spend as a transaction fee. The transaction will not go through if the transaction costs more gas than what is offered. However, if it is less expensive, the difference will be reimbursed.
The amount a user is willing to pay for an Ethereum transaction. A user must offer a higher premium to the miner for a speedier transaction. Gwei is the most common unit of measurement for gas pricing.
During the debut of an NFT collection, a gas war happens when there are more purchasers than available NFTs. In these cases, you’ll need to raise your gas charge to outbid the competition in the hopes that your transaction will go through faster than theirs, securing your purchase.
Generative arts are generated with the use of autonomous systems that determine the characteristics of the art without human intervention. All major collections like Bored Ape Yacht Club, Cool Cats, and Pudgy Penguins are generative art.
The first Block in the Blockchain.
Geth, short for Go Ethereum, is a command-line interface (CLI) that allows developers to run full Ethereum nodes, mine the cryptocurrency and execute smart contracts.
Cryptocurrencies that are backed by gold.
All cryptocurrency initiatives must have a strong governance structure. One of the key models for voting in blockchains is on-chain governance.
The main utility token of DeFi protocols and blockchain projects is cryptocurrencies. Holders of governance tokens are also given voting power over the project’s direction and development.
An indication in the trading chart that the price of the asset closed higher than the opening price
A denomination of Ether used to describe the price of a transaction.
Hal Finney is the programmer who worked alongside Satoshi Nakamoto on the development of Bitcoin.
The absolute maximum supply of the digital asset.
Offline storage of cryptocurrency is provided via hardware wallets. A hardware wallet is a cryptocurrency wallet in which the user’s private keys are stored on a secure hardware device.
A hash is a function that solves the encrypted demands of a blockchain calculation. Because it’s practically hard to guess the length of a hash if someone were attempting to crack the blockchain.
A hash function is a mathematical function that converts a numerical input value into another compressed numerical value.
Performance measurement that displays how many hashes per second a computer can generate. Each hash is an effort to locate a block by constructing a distinct block candidate and comparing it to the network.
Hierarchical deterministic (HD) wallet refers to a wallet that generates public and private keys using a seed. It’s often used to keep digital keys for cryptocurrency holders like Bitcoin and Ethereum.
Hexadecimal is a 16-character encoding method that includes the digits 0-9 and letters A-F. Hexadecimal is used to represent most byte data, including Bitcoin public keys, transactions, hashes, and scripts.
HODL is derived simply from a misspelling of the word “hold.” It stands for “Hold On for Dear Life.” It motivates cryptocurrency holders to remain positive in times of volatility.
A cryptocurrency wallet that is connected to the internet is known as a hot wallet. These wallets are handier for everyday use, but they are not as secure as cold storage.
When deciding transaction validity, hybrid consensus mechanisms use components of both PoW and PoS models. PoW miners construct new blocks containing transactions to be added to the blockchain as part of a hybrid consensus. PoS miners determine whether or not to confirm these blocks after they are created.
Hyperinflation occurs in times of extreme economic instability. It causes the prices of assets to go down rapidly.
Hyperledger is an open-source ecosystem of tools, frameworks, and products that enable and support enterprise-grade blockchain.
Hyperledger Composer is an application development framework that simplifies and expedites the creation of the Hyperledger Fabric blockchain. Business owners and developers can use Hyperledger composer to construct blockchain business networks swiftly.
IBM’s private (permissioned) blockchain toolset.
Initial Block Download (IBD):
Initial Block Download (IBD) is the process of building the full Bitcoin blockchain from scratch.
The Initial Bounty Offering (IBO) is a method of establishing a project in which users are rewarded with free or reduced tokens in exchange for their services. As a result, IBOs necessitate a greater mental investment from the recipient. Bug bounties may be offered to coders who are able to find faults in the blockchain, and these awards can be worth tens of thousands of dollars. Companies such as Zcash, Ethereum, and others have used IBO to uncover major flaws in their ecosystems.
An Initial Coin Offering (ICO) is a method of raising funds in which a cryptocurrency’s developer sells an initial batch of coins to investors.
In Initial DEX Offering (IDO), a project launches a token through a decentralized liquidity exchange.
Initial Exchange Offering (IEO) is a fundraising model in which a crypto project raises funds through a trading platform. Binance Launchpad was one of the first few IEO platforms to be launched in the industry.
IFO is a fundraising approach that leverages farming activities to raise revenue for crypto startups. PancakeSwap popularized IFO, and many DEX now offers it. Users can utilize IFOs to engage in “pre-sales” organized by DEXs to obtain tokens before they are listed on their respective exchanges.
Initial Game Offering (IGO) Initial Game Offering (IGO) is a technique for raising funds for blockchain gaming projects. It’s comparable to an Initial Coin Offering (ICO), except instead of receiving cryptocurrency tokens, IGO participants receive early access to in-game assets while also contributing to the game’s development. GameFi is one of the first launchpads to feature the concept of initial game offerings (IGO).
Initial NFT Offering:
Initial NFT Offering is a new type of fundraising model where NFTs are sold at the early stage of the project. Typically, these NFTs are backed by a native cryptocurrency. The token holders can burn the NFTs in order to obtain the cryptocurrency.
Immutable means something that cannot be altered. Blockchain is an immutable ledger meaning that once data is written in the block, it cannot be changed or altered.
Impermanent loss is the temporary loss faced by a liquidity provider due to market volatility. As the value of two cryptocurrency assets in a liquidity pool-based Automated Market Maker (AMM) grows, liquidity providers’ exposure to impermanent loss grows with it.
Infinite approval is a smart contract programming feature that allows a smart contract to access an endless number of tokens from the user’s wallet rather than just the quantity that is required.
Infinite Mint Attack:
When a malicious entity hacks a protocol, it starts minting an excessive quantity of tokens, which is known as an infinite mint attack.
Infrastructure is the set of fundamental technologies that the rest of the Blockchain is built upon.
Infura provides the tools and infrastructure that allow developers to easily take their blockchain application from testing to scaled deployment – with simple, reliable access to Ethereum and IPFS.
The process of distributing a significant amount of tokens to investors in the early period of launch.
Putting money on an asset in return for gains.
Inter Planetary File System (IPFS):
IPFS is a protocol and P2P network for storing and sharing data in a distributed file system. Because an HTTP gateway URL is bound to a certain provider, Blockchain technology makes use of IPFS to store data. IPFS addresses allow users to locate content as long as it is hosted by someone on the network.
Initial Stake Pool Offering (ISPO), first presented by Cardano, is a new fundraising technique that allows POS (Proof-of-Stake) network delegators to divert staking income to a project of their choice in exchange for project tokens. It means that communities can support their favorite projects without having to invest their own money instead of relying on the network’s built-in reward incentive system.
The smallest denomination of BNB (Binance Coin).
Short form for “Joy Of Missing Out.”
A versatile cryptographic function that provides increased levels of security when compared to older hash algorithms, like SHA-1 and SHA-2
Know Your Customers (KYC) is a standard procedure used to identify and verify the identity of a customer, especially in the financial sector.
Projects with a market capitalization of $10B+. Bitcoin, Ethereum, and Binance are a few large-cap companies.
The time between submitting a transaction to a network and the first confirmation of acceptance by the network.
The foundation for layer one blockchains is laid by Layer 0. It is the network framework running beneath the blockchain. It provides the foundation for chain creation as well as cross-chain interoperability, which means that chains built on top of layer 0 can communicate with one another. Cosmos and Polkadot are Layer 0 Blockchain.
The Layer 1 blockchain is a collection of improvements to the Layer 0 blockchain. It has its own processes for reaching a consensus. Blockchains like Bitcoin, Ethereum, Cardano, and Ripple are instances of this type.
Layer 1 Blockchains have limitations such as scaling; developers have to make compromises when designing the applications. Layer 2 is a scaling solution that allows for large transaction throughput while fully inheriting the security of the underlying blockchain. Polygon, for example, is a Layer-2 Scaling solution that operates on top of Ethereum and solves Ethereum’s scalability problem while also charging much cheaper gas fees for transactions.
A program or group of smart contracts that seeks the best lending rates for depositors loaning coins in exchange for a return on their investment, or ROI.
A Lending Provider is an individual or group that lends out cryptocurrency funds in exchange for a share of the benefits and fees earned by lending out and providing liquidity for various cryptocurrency coins and networks.
Leverage is the use of debt to increase returns, buying power, capital, or asset financing. The usage of multipliers on exchanges or marketplaces allows leveraged trading, such that a 1 BTC deposit on such exchange may provide 10 to 100 BTC in investment power if leveraged 10x to 100x.
The Lightning Network (LN) is a Bitcoin transaction technology that allows for instant and low-cost transactions. While it is still in its early stages, it offers enormous potential for Bitcoin’s scaling ability.
A new generation of gathering spaces and event locales that incorporate both physical and virtual elements.
Liquidity is a measure of how easily an asset is available to trade on financial markets.
A crowd-sourced pool of coins or tokens that are locked in a smart contract to allow for trading between assets on a decentralised exchange (DEX).
Liquidity Provider (LP):
This term refers to investors who deposit an asset to offer liquidity on an exchange and/or network(s) in order to get a return on their investment. Liquidity Providers frequently offer two or more types of assets.
It means to list cryptocurrency in exchange for trading.
Going long is taking a big amount of cryptocurrencies and stockpiling them in the hopes that they will appreciate in value.
LP tokens are a special type of cryptocurrency rewarded to liquidity providers on decentralized exchanges.
MaaS stands for Metaverse-as-a-Service. MaaS is basically a suite of infrastructure and protocols used to build an immersive Metaverse ecosystem.
Mainnets are where actual transactions with actual money take place and are recorded on the chain. Example: Ethereum Mainnet, BSC mainnet.
Maker is a DAO on the Ethereum blockchain seeking to minimize the price volatility of its own stable token – DAI.
In margin trading, users borrow funds from a broker to purchase cryptocurrency.
Market cap is the total trading value of a cryptocurrency. The market price is calculated by: Cap = Price of the token at the given time * Total supply.
Master nodes are part of the infrastructure that sustains cryptocurrencies such as Bitcoin, Ethereum, and Dash.
The approximate amount of tokens that can ever exist.
Tokens that are created as a joke but can give a huge gain to their holder. Example: Dogecoin, Shiba Inu, etc.
The mempool is where all legitimate transactions are held until the Blockchain network confirms them.
Blockchain technology relies heavily on the Merkle tree. It’s a mathematical data structure that works as a summary of all the transactions in a block and is built up of hashes of various data blocks. It also offers content verification across a large dataset in a timely and secure manner.
One of the most famous and widely used Browser wallets.
A network of three-dimensional virtual worlds centered on social interaction. It usually combines several technological aspects, such as virtual reality, augmented reality, Blockchain, and so on.
When a token or NFT is transferred from one blockchain to another during a blockchain transition, this is known as migration.
The person involved in the mining process of a cryptocurrency is called a miner. A miner performs block validation and production. Miners compete to solve a difficult mathematical problem based on a cryptographic hash algorithm.
Mining is the process of verifying transactions on a blockchain and building the blockchain by adding new blocks one at a time. Mining involves generating a hash of a block of transactions that is difficult to counterfeit, ensuring the integrity of the entire blockchain without the use of a central system.
A mining contract is for people who wish to profit from solving extremely difficult arithmetic problems without having to invest in or maintain the requisite server infrastructure. Mining contracts, also known as cloud mining, are the simplest and most efficient way to earn money from cryptocurrency mining without having to acquire and operate your own equipment.
A cryptocurrency’s mining difficulty reflects how difficult and time-consuming it is to obtain the correct hash for each block. A high cryptocurrency difficulty indicates that verifying transactions on a blockchain requires more computational resources.
A mining pool refers to the group of miners who pool their resources in order to maximize their chances of finding the next block.
The income that miners receive to generate a new block through mining. The reward is a portion of the cryptocurrency they mine.
Minting is the process of creating an NFT.
Mnemonic phrases are a human-readable version of the private keys. It is basically a list of words that must be used in the same sequence to access or restore the cryptocurrency wallet.
A word famous among cryptocurrency traders used to celebrate a continuous upward trend of a crypto/NFT. For instance, if the price of a coin/NFT spikes, we can refer to the asset as ‘mooning’ or ‘going to the moon.’
Move-to-Earn is Web 3.0’s first step toward encouraging metaverse users to live a healthy lifestyle in the real world. By leading a healthy lifestyle, users of M2E apps can earn cryptocurrencies, NFTs, and other digital assets.
“Multi-signature wallet” is the abbreviation for “multi-signature wallet.” For increased protection, it’s a wallet that requires several signatures on a transaction before moving funds. DAOs commonly employ multisig wallets.
At any particular time, a network refers to all nodes involved in the operation of a blockchain.
Stands for Non-Fungible Token. It’s a unique, one-of-a-kind crypto asset that’s stored on a blockchain. NFTs aren’t interchangeable.
A node is any device that connects to the blockchain network, such as a computer, laptop, or server. It is responsible for storing, disseminating, and preserving blockchain data. A blockchain network’s nodes are all connected and constantly exchange the most up-to-date data.
Non-custodial in crypto space means that the private keys are held directly by the user.
A nonce is a pseudo-random number that is used as a counter throughout the mining process. It is an abbreviation for “number only used once.” It’s a number that’s put to a hashed or encrypted block in a blockchain and meets the difficulty level requirements when rehashed. As a result, the number that blockchain miners are attempting to solve is known as a nonce.
Processing the transaction and storing of metadata outside the Blockchain for increased speed and throughput.
Transactions that are processed outside the Blockchain. Off-chain transactions usually occur in layer 2 of the Blockchain network.
Storage of cryptocurrency in devices that are not connected to the internet. Hardware wallets such as Ledger, and Trezor, are examples of offline storage.
Processing the transaction and storing metadata in the main chain.
Storage of cryptocurrency in devices that are connected to the internet. Browser-based wallets like MetaMast, Trust Wallet, Phantom, etc., are examples of online storage.
An NFT for which any number of editions may be minted. Example: a collection with only 10,000 editions.
A marketplace to buy and sell NFTs.
An optimistic rollup is a type layer two scaling solution. The goal of optimistic Rollup is to decrease latency and increase the transaction throughput, thereby reducing the gas fees.
The smart contracts stored on a blockchain are stuck within the network. Blockchain oracles are entities that connect blockchains to external systems, allowing smart contracts to execute depending on real-world inputs and outputs. Projects like Chainlink provide decentralized oracle network services to many different blockchains.
Oracle manipulation is a popular DeFi hack in which attackers alter an oracle smart contract, resulting in system failure, theft, and other damages.
An order book is a list of all open buy and sell orders for a certain currency pair, arranged by price level. All exchanges maintain an order book for smooth functioning and security.
Due to a time latency, orphan blocks are confirmed and valid blocks that are not recognized by the blockchain network.
Over The Counter (OTC) refers to private deals for buying and selling crypto.
A cryptocurrency’s price will rise for an extended period of time if a significant number of purchases have been placed on it.
A cryptocurrency is deemed oversold if it has been sold for a long time with no upward growth.
The pump and Dump (P&D) Scheme is a type of fraud in which false and misleading positive claims are used to boost the price of a cryptocurrency artificially.
Play-to-Earn (P2E) is a new form of gaming that has cryptocurrency, NFTs, and metaverse as an integral part. In P2E games, players play and earn crypto or in-game NFTs as a reward. P2E games serve as a passive income source for thousands of people around the globe.
Peer-to-peer (P2P) is a decentralized communications architecture in which two individuals, computer or network, can communicate directly with each other without the use of a third party.
Shorthand for ‘profile picture.’ It is the NFT collections often used as profile pictures on Twitter, Discord, etc.
Paper wallets are a type of offline cold storage for cryptocurrencies. It implies printing your public and private keys on a sheet of paper, which you then keep safe. The keys are printed as QR codes, which you may scan for all of your future transactions.
Custom, project-specific blockchains that are integrated within the Polkadot and Kusama networks.
A source of regular income that requires minimal labor, maintenance, and time. For example, playing P2E games, staking cryptocurrency, etc., are a source of passive income.
Cryptocurrencies that are backed by other assets such as Fiat currency, gold, real estate, etc. Example: USDT is a dollar-pegged stablecoin.
Blockchain is a permissionless ledger as it doesn’t require anyone to govern it or maintain it.
Plasma is a scaling solution being utilised to build the Ethereum network’s Layer 2 layer.
Miners gain a consensus in the Proof of Burn (PoB) process by burning the cryptocurrencies. Burning is a method of permanently removing cryptocurrencies from ordinary circulation. In PoB, the burning of coins is used to validate transactions. As a result, the more coins a miner burns, the more likely the block will be added to the network.
Proof of History is a consensus mechanism that certifies the passage of time between two occurrences using cryptography. As a result, nodes can use PoH to establish a historical record that verifies an event that occurred at a certain point in time. Solana is a well-known blockchain that uses the PoH consensus algorithm.
In PoC, network participants use their available space for mining a new block and validating transactions. Hence, instead of computation power, PoC demands computation space from the miners.
A secondary scaling solution on the Ethereum blockchain that provides cheaper, faster, and more secure payment transactions.
A means to manage the cryptocurrency a user bought online.
Proof-of-stake is a mechanism that allows network participants to add a new block of transactions to the network. It employs a staking method, in which participants deposit some of their coins in order to be chosen. Ethereum uses a PoS consensus mechanism.
Retroactive mining of cryptocurrency before public launch.
In PoW, miners must demonstrate that their computers contributed effort to authorize a transaction. Before a block can be successfully hashed, a variable is added to the process of hashing a transaction that necessitates that effort. Having a hashed block demonstrates the miner worked hard and deserves to be rewarded with cryptocurrency – therefore, Proof of Work.
Allocation of tokens before Initial DEX Offering (IDO) takes place.
Pre mining is the process of creating a stock of coins for an inside group before a cryptocurrency is released to the general public.
The prediction market allows traders to make crypto-asset price predictions in hourly, daily & weekly time frames.
A private blockchain has a centralized system that helps to process transactions faster. Participants require permission from administrators to join a private Blockchain network. Hyperledger is a private Blockchain.
A private key is a combination of numbers and letters that can be used to send cryptocurrency, sign transactions, and gain access to a cryptocurrency wallet. It is essentially a password that, if compromised, can result in the loss of cryptocurrency. A private key can generate a public key, but not the other way around.
The set of rules that defines how data is exchanged across a network.
A public address is the hash of a public key that enables a user to receive cryptocurrency into their account.
Open, transparent, and decentralized Blockchain. Ethereum and Bitcoin are examples of Public Blockchain.
A unique long string of numbers and letters used to receive cryptocurrencies.
This is a word used to describe an upward price movement in a cryptocurrency, which is frequently fueled by whales investing significant sums of money.
An array of black and white squares that can be read by machines. If you’re using a mobile wallet that allows you to scan QR codes, this is the most convenient way to transmit NFTs or Ethereum.
An Enterprise-focused blockchain specially designed for use in a private blockchain network.
Ragequit is the process in which a member of the DAO decides to leave with all or part of their share of the tokens.
The position of cryptocurrency in the market according to its market cap.
Different rarities (such as common, uncommon, rare, legendary, and mystic) and edition numbers (e.g., #001/100) are assigned to digital collectibles and in-game NFTs. They’ll have their own IDs and metadata.
A recovery seed phrase is a series of words generated by the cryptocurrency wallet that gives the owner access to the crypto associated with that wallet. We can think of the recovery seed phrase as the master password.
Short form for “Wrecked” and a term used to describe a bad loss in a trade.
The central chain of Polkadot
The temporary pause of the uptrend of crypto due to a concentration of supply.
Retargeting means adjusting difficulty on proof-of-work blockchains, such as Bitcoin.
Depending on the creators behind the collection, the NFT may unveil the collection immediately after purchase, after it sells out, or after a 24- or 48-hour delay, for example.
In P2E games, a portion of the tokens are set aside in a reward pool, from which tokens are distributed to players who have earned them via their gaming activities.
On a blockchain, a ring signature is a cryptographic mechanism that could guarantee a reasonable level of anonymity. One of the security features of a ring signature is that determining which of the group members’ keys was used to create the signature should be computationally impossible.
The timeline of the upcoming features and updates of a project. Roadmaps in Blockchain projects often secure the trust of the community as they get to see the advancements of the project.
Return on Investment (ROI) is a performance metric that is used to assess an investment’s efficiency or to compare the efficiency of several distinct investments.
Rollups are a layer two scaling solution. Rollups perform transaction execution outside layer one, and then the data is posted to layer one, where consensus is reached.
Money earned by an NFT creator through the token’s resale.
In the cryptocurrency industry, a rug pull occurs when a development team abruptly abandons a project and sells or eliminates all of its liquidity.
The individual or group of individuals that created Bitcoin.
The smallest unit of bitcoin with a value of 0.00000001 BTC.
The ability of blockchain networks to sustain increased transaction loads as well as the number of nodes in the network is referred to as scalability.
Solutions that increase the scalability of a Blockchain platform. For example, Layer 2 solutions of Ethereum are aimed to increase the transaction throughput and overall scalability of Ethereum.
Fraudulent crypto tokens with misconfiguring smart contracts to steal funds from the people.
A scheme that dupes people’s crypto.
An alternative proof-of-work (PoW) algorithm to SHA-256, used in Bitcoin mining. This algorithm encrypts the key in such a way that hashing requires significantly more RAM than CPU power. Hackers will find it difficult to penetrate the system. Scrypt is pronounced “ess-crypt,” despite its spelling.
Second layer solution:
A network or technology that runs on top of a blockchain protocol is referred to as layer-2. Layer 2 solutions allow for faster transaction rates and scaling while maintaining the main Ethereum chain’s security.
Security tokens are tokenized securities. They are digital forms of traditional securities that live on a blockchain.
A seed phrase is a string of words generated by the cryptocurrency wallet that allows you to access the cryptocurrency linked with it.
SHA-256 is a popular hashing algorithm used in Bitcoin encryption. It is used to convert the text of any length into a fixed-size string of 256 bits.
The smaller portions of a blockchain obtained as a result of sharding are known as shards.
One of the solutions to the challenge of blockchain scalability is sharding. It entails sharding a blockchain into many parts and storing them in separate locations. Each shard can process in parallel hence improving the speed.
The act of promoting crypto or a crypto project.
A coin with no potential.
A short trade is one in which an asset is borrowed and sold with the intention of repurchasing it at a lower price and profiting.
A chain that works parallel to the main chain. Both sidechain and mainchain are linked to each other.
Slippage is the difference between the expected price of an order and the price when the order actually executes. Generally, exchanges offer 0.5-10% slippage options to users.
Smart contracts are contracts written in computer code that are automatically executed when predefined circumstances are met. They’re immutable and irreversible because they’re enforced on the blockchain network. Smart contracts were first popularized by Ethereum.
Solidity is a high-level programming language used to develop and deploy smart contracts.
A cryptocurrency with low price fluctuations or volatility. USDT is an example of Stablecoin.
Through Staking Pool, multiple stakeholders can combine their computing resources and maximize their chances of being rewarded. The increased computational capacity allows the Proof of Stake (PoS) mechanism to verify and validate more blocks, increasing the total amount of rewards a staking pool can earn. Staking pools are common in the case of Staking ETH. This is due to the 32 ETH rule, which states that in order to stake and become a validator independently, a user must have at least 32 ETH. 32 ETH is currently worth over $100,000, which most people do not have on hand.
In Staking, tokens are locked in a wallet for a set period of time in order to participate in transaction validation. Stakers are awarded every few seconds or when a particular number of blocks have been processed. Staking can be implemented in PoS Blockchains.
An Ethereum Testnet that uses Proof of Authority consensus and supports parity clients.
An Ethereum Testnet that implements Proof of Authority consensus and supports Geth clients.
An Ethereum Testnet that implements Proof of Authority consensus and supports both the geth and parity clients.
Testnets are used by developers to test functionalities or features or check for vulnerabilities without affecting anything in the mainnet. Testnets use “fake” money and record transactions on a separate “test” chain
The timestamp is a unique serial number recorded in each block that represents the exact instant when a transaction was encrypted and confirmed by the blockchain network.
Token economics is a branch of economics that investigates the economic structures, regulations, and ethics involved in the creation, distribution, and exchange of tokenized assets.
Token standard is a set of rules and protocols that a smart contract must follow to form a token. Token standards typically outline how tokens can be moved and how a Blockchain network can retain a consistent record of those transfers. Ethereum Request for Comment (ERC) is the most widely used token standard.
In Blockchain, a token is a denomination of cryptocurrency. Tokens are digital assets that represent a set of rules encoded in a smart contract. Tokens in the physical, digital, and legal worlds can represent anything from a store of value to a collection of permits.
The process of digitizing a real-world asset into tokens.
Tokenomics = Token + Economics. Hence, the study of the economics of crypto tokens or cryptocurrencies is called tokenomics. It also describes the math and incentives governing crypto assets.
The total supply refers to the number of coins or tokens that are now in circulation or are locked up (including the missing ones that are no longer in circulation or lost).
Total Value Locked (TVL):
The total value of crypto assets that are being staked in a Decentralized Finance (DeFi) protocol.
The amount of cryptocurrency that has been traded in a day.
Miners are usually paid fees for successfully authorizing a transaction on the blockchain. This cost varies depending on the transaction’s difficulty and the network’s general capability at the time. If the transaction is facilitated through an exchange, the exchange may receive a portion of the entire transaction fee.
Transaction per second (TPS):
The number of transactions a Blockchain network can process in a second. For example, Ethereum can process 12-15TPS.
On a blockchain network, a transaction is when the value of a cryptocurrency is transferred from one entity to another.
A Blockchain Application Development tool that acts as a development environment and a testing framework
A machine is Turing complete if it can perform any calculation that any other programmable computer is capable of. The Ethereum Virtual Machine (EVM), which runs on the Ethereum blockchain, is Turing complete. Thus it can process any “computable function.”
A state in which a transaction has not been updated in the Blockchain yet.
It is a Decentralized Exchange used to trade cryptocurrency.
A company that provides Blockchain domains.
Utility token acts as currency in the Blockchain. It is used to improve user experience by rewarding them with tokens for their work.
NFTs with real-world applications Owning a Bored Ape NFT, for example, entitles you to unique member-only privileges like access to a collaborative graffiti board.
Acronym for “unspent transaction output.” It is a transaction output that must be referenced in a subsequent transaction in order to spend funds. In simple words, it is the change that remains after a cryptocurrency transaction.
A validator validates blocks in a PoW Blockchain.
A vault is a smart contract that holds collateral in escrow and keeps track of its value.
The locking up of tokens for a period of time so that it is not available in the market for sale.
The founder of Ethereum.
Volatility is a metric that measures how much an asset’s price changes over time.
The amount of cryptocurrency being traded in a particular period of time.
A wallet is software that generates and saves public and private keys, making it possible for users to transfer, receive, and store cryptocurrency.
A new version of the internet based on blockchain technology.
The smallest fraction of an Ether, with each Ether to 1000000000000000000 Wei.
A person who holds a huge amount of cryptocurrency.
A phrase used to emphasize when the cryptocurrency price will go up.
A list of potential participants in an initial coin offering (ICO) interested in participating in or purchasing a sale.
A document released by Blockchain projects that explains the technology and purpose of the project they are working on.
Wrapped tokens are a way to use cryptocurrencies such as Bitcoin or Dogecoin on blockchains other than the blockchain they were originally built on.
An extended private key (Xprv) is a private key that can be used to derive child private keys as part of an HD wallet.
An extended public key (Xpub) is a public key that can be used to derive child public keys as part of an HD wallet.
Yield farming is the practice of maximizing returns through DeFi. On a DeFi platform, users can lend or borrow cryptocurrency and get cryptocurrency in exchange for their services.
A community of like-minded Smart Contract developers.
Zero-knowledge proof is an encryption system in which one party (the prover) can prove the validity of certain information to another (the verifier) without revealing any further information. When zero-knowledge proofs (ZKPs) are combined with blockchain technology, consumers can get a powerful blend of immutability and security.
“Zero-Knowledge Succinct Non-Interactive Argument of Knowledge” – an approach to zero-knowledge proofs.
A 51% attack occurs when a single individual or group of people controls more than 50% of the computer power on a network. The entity then has complete control over the network and can cause the Blockchain network to lose value by halting service, stopping or modifying transactions, or misusing token supply.
The number of Bitcoins that can ever exist.
A unique NFT art piece that only exists in one edition.