Crypto Glossary
Plain-English definitions of the cryptocurrency, blockchain and trading terms you will meet as you learn.
A
Abnormal Return
Exceptionally high gains.
Adress
Alphanumeric strings where cryptocurrencies are sent and received,
Airdrop
Token distribution campaign to a specific audience.
Airnode
Oracle node providing data flow in the API3 protocol.
Algorithmic Stablecoin
A stable cryptocurrency with supply regulated by algorithms.
Alpha
A measure of an investment’s performance relative to a benchmark.
Altcoin
All cryptocurrencies other than Bitcoin.
Anarcho-Capitalism
A political philosophy embraced by parts of the crypto community.
ASIC (Application-Specific Integrated Circuit)
Specialized mining devices
ASIC Resistance
Algorithms designed to resist ASIC dominance
Atomic Swap
Peer-to-peer token exchange without intermediaries
Authority Masternode (VeChain)
An authority masternode is the networked server running the VeChainThor full node program.
B
Bagholder
Investor holding onto losing tokens
Beacon Chain
It is the blockchain network that coordinates the parts of the chain and manages validator records and staking transactions in Proof-of-Stake (PoS) based cryptocurrencies such as Ethereum 2.0.
Beacon Chain
The coordination chain of Ethereum 2.0
Bear Market
Prolonged market downtrend
Bitcoin ATM (BTM)
A cash machine or ATM that allows the user to buy and sell Bitcoin.
Bitcoin Domination (BTCD)
Bitcoin Dominance; It is the ratio that shows how much the Bitcoin market value corresponds to the value of the total cryptocurrency market.
Bitcoiner
Someone who believes that the price of Bitcoin will rise.
BitLicense
It is a business license issued by the New York State Department of Financial Services that allows to conduct virtual currency transactions.
Block Duration
In blockchain-based systems, it refers to the time required to generate new blocks.
Block Explorer
An application that allows the user to view the details of a particular block on the blockchain. They are also called blockchain browsers.
Block Header
The block title is a unique identifier of the block that is hashed by the Proof-of-Work consensus algorithm, which incentivizes mining.
Block Manufacturer
A block producer (BP) is a person or group whose hardware is selected to validate block transactions. Like most Proof of Stake (PoS) blockchain networks, it creates the next block.
Block Size
In blockchain technology, block size refers to the total amount of data that can be inserted into a single block in the chain.
Blockchain
Distributed ledger technology
Blockchain Tribalism
Blockchain tribalism is when the blockchain or cryptocurrency community becomes ideologically committed to a particular blockchain or cryptocurrency.
Bonding Curve
A Bonding Curve is a mathematical curve that describes the relationship between the price and supply of a value asset.
Bull Market
Prolonged market uptrend
Burning
Destruction of tokens to reduce supply
Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance (BFT) is the property that allows a computer system to reach consensus independently, even if some of its components fail.
C
CeDeFi
Hybrid of centralized and decentralized finance
Cloud Mining
Cryptocurrency mining is done with computing power rented through companies.
Cold Storage
It is the offline storage of cryptocurrencies via non-custodial hardware wallets, USBs, offline computers or paper wallets.
Cold Wallet
A cryptocurrency wallet that works without connecting to the internet and offers cold storage.
Cold Wallet
Offline cryptocurrency storage
Composable DeFi
Composable DeFi refers to interoperability between different DeFi protocols.
Composable Token
In the combinable token model defined by the ERC-998 standard, NFT assets gain the ability to own other NFT assets (ERC-721) and fungible tokens (ERC-20).
Consensus
Agreement among network participants
Consensus
Consensus is established when network participants agree on the order and content of blocks on the blockchain.
Core Wallet
The core crypto wallet can contain all blockchain data, not just a part of the blockchain network.
CPU Miner
Since mining requires computing power, the process of creating or mining cryptocurrency using a central processing unit (CPU) is called "CPU mining" or central processing unit mining.
Cryptojacking
Using a computer to mine cryptocurrency without the user's consent.
Custodian
The Custodian or custodian is responsible for the safe custody of assets belonging to the organization or individuals.
Cypherpunk
The Cypherpunk movement promotes the use of cryptography and other privacy-oriented technologies to advance socially and politically.
D
Daedalus Wallet
Daedalus Wallet is a multi-platform, open-source, hierarchical and deterministic wallet that can generate an infinite number of keys from a single seed expression.
DAO (Decentralized Autonomous Organization)
Community-governed organization without centralized control
Darknode
RenVM is run by a decentralized network of computers called "darknodes". They offer their computing power and storage to anyone who meets certain conditions and provides appropriate compensation.
Decentralized Exchange (DEX)
Peer-to-peer platform that allows users to buy and sell cryptocurrencies without the need for an intermediary.
DeFi (Decentralized Finance)
Ecosystem of decentralized financial applications
DeFi Aggregator
The DeFi Aggregator, or DeFi aggregator, lists transactions from various DeFi platforms in one spot.
DEX (Decentralized Exchange)
Exchange without intermediaries
Digital Money
They are assets of value that exist only in digital form, unlike traditional physical coins.
Distributed Ledger System
They are ledgers where data is stored on a network of decentralized nodes. A decentralized ledger does not necessarily contain cryptocurrency.
Distributed Ledger Technology (DLT)
A ledger that is accessed by multiple participants and stored in multiple locations. The basis of blockchain technology.
DYOR (Do Your Own Research)
Common warning to conduct individual research
E
E-Signature
An electronic signature or e-signature is any electronic stamp such as a sign, sound or symbol that replaces a physical signature in the official acceptance of a document or contract.
Edge Node
In computer science, an "edge node" is a computer that acts as a gateway for the end user to establish connections with other nodes.
Effective Share Proof
Effective Proof of Stake is a version of Harmony's Proof of Stake consensus mechanism that aims for both security and decentralization.
Electrum Wallet
It is a Bitcoin wallet with a simple interface that can run on Windows, MacOS and Linux.
Enterprise Ethereum Alliance (EEA)
A group of organizations and companies working together to move the Ethereum network forward.
Epoch
The complete run of the training data set from start to finish through the algorithm is called an "epoch" in machine learning.
Equity (Equity Capital)
Equity capital corresponds to the funds that can be returned to the company's shareholders in the event that all assets belonging to the company are liquidated and all debts are paid.
Erasure Coding
Erasure Coding or Erasure Character Coding is the storage of data in multiple locations by segmenting, expanding and encoding it with redundant information.
ERC-1155
It is the ERC-1155 digital token standard created by Enjin and offers more security compared to older token standards.
ERC-20
Ethereum token standard for fungible assets
ERC-223
ERC-223 is the Ethereum token standard that allows users to securely transfer tokens to a digital wallet and is backed by smart contracts.
ERC-721
The standard used for unique Ethereum tokens.
ERC-721
Ethereum token standard for NFTs
ERC-777
ERC-777, derived from ERC-20, is a tradable token standard that enables backwards-compatible connection to the token contract.
ERC-827
ERC-827 is the ETH token standard developed to go beyond the current limits of the ERC 20 standard, especially in asset transfer and confirmation transactions.
ERC-884
ERC-884 is the standard that allows stocks issued by Delaware corporations to be converted into tradable ERC-20 tokens.
ERC-948
ERC-948 is a new Ethereum token protocol designed for subscription service businesses to connect with customers and allows subscription-based transactions.
Ethereum Virtual Machine (EVM)
EVM, the "Turing complete" virtual machine that ensures that the code developed is executed as intended, provides a working environment for each smart contract.
EVM (Ethereum Virtual Machine)
The computational engine of Ethereum
F
Fakeout
Fakeout is a sudden and temporary movement that tricks traders into thinking that a new trend is emerging in the market, when in fact it is not.
Fiat
Traditional government-issued currency
Fiat On-Ramp
"Fiat on-ramp" is a method of buying cryptocurrency with fiat or traditional money (fiat).
Flash Loan Attack
Flash loan attacks occur when malicious actors exploit smart contracts.
FOMO (Fear of Missing Out)
Investor psychology based on fear of missing opportunities
Fork
A blockchain split into two versions
Fraud Proof
Fraud Proof is a technological method that acts as a bond in a decentralized environment using Optimistic Rollup (OR).
Front Running
Front Running is when someone who has information about a future transaction adds their own transaction to the queue.
FUD (Fear, Uncertainty, Doubt)
Spreading fear and misinformation
Full Node
They are nodes that download the entire blockchain history to observe and enforce the established rules.
Fully Homomorphic Encryption
Fully Homomorphic Encryption is a type of scheme that allows random computation on encrypted data.
Fungible
The ability to exchange any cryptocurrency or token for another identical cryptocurrency or token.
G
GameFi
Often associated with pay-to-play (P2E) productions, GameFi is a fairly new term for both the gaming and cryptocurrency industries.
Gas
Transaction fee on the Ethereum network
Gas Limit
It is a term used on the Ethereum platform that refers to the maximum amount of Gas a user is willing to spend to perform any transaction.
Genesis Block
The first block of a blockchain network
Gold-Backed Crypto
Tokens backed by physical gold.
H
Hal Finney
Hal Finney is the cryptographer and programmer who, along with Satoshi Nakamoto, pioneered the development of Bitcoin.
Halving
The event where Bitcoin rewards are cut in half
Hard Fork
Irreversible blockchain upgrade
Hash
The hash is the fixed-length hash output generated by the algorithm that encrypts and secures the data.
HODL
Long-term holding strategy
Hot Storage
The online storage of secret keys for faster access to cryptocurrencies. *see Cold Storage.
Hot Wallet
Online cryptocurrency wallet
Hot Wallet
Cryptocurrency wallets that allow crypto assets to be stored in an internet-connected format.
Howey Test
A test used to determine whether an asset is a security.
I
ICO (Initial Coin Offering)
First-time token sale
IDO (Initial DEX Offering)
Token sale via a decentralized exchange
Immutable (Immutability)
Immutability is the property that describes the inability of any data to change over time.
Initial Coin Offering (ICO)
ICO, short for Initial Coin Offering, is a crowdfunding or crowdsale where early-stage companies use cryptocurrency to raise capital.
Initial Dex Offering (IDO)
Initial dex offering (IDX) was developed as an alternative to initial token offering (ICO) projects.
K
KYC (Know Your Customer)
Client identity verification procedure
L
Layer 0
Layer 0 is the network structure that runs underneath the blockchain system. It consists of elements such as protocol, connectivity, hardware and miners that form the foundation of the blockchain ecosystem.
Layer 1
Base blockchain protocol layer
Layer 2
Scaling solutions built on top of Layer 1
Liquid Staking
Liquid staking allows users to use their tokens in the DeFi ecosystem while staking them.
Liquidation / Liquidation
Liquidation means converting the asset or cryptocurrency into fiat money or its equivalent.
Liquidation Wave
Liquidation transactions accumulate in a row and cause sudden price changes.
Liquidity
The ease of converting assets into cash
Liquidity
The ability to easily buy and sell any cryptocurrency without affecting the overall market price.
M
Mainnet
The primary blockchain network
Mainnet
An independent blockchain structure that runs its own network using its own technology and protocol.
Market Cap (Market Capitalization)
Total value of a cryptocurrency
Memecoin
They are cryptocurrencies that are created as a joke and allegedly offer their holders huge profits.
Merkle Tree
Merkle tree is a data structure used in computer science and cryptography to verify the integrity of stored or transmitted data.
Metaverse
The Metaverse is the digital universe that includes real-world elements such as real-time interaction and economic structures. It offers end users an experience like no other.
Miner
A person who mines to contribute to the blockchain network.
Miner Extractable Value (MEV)
Miner Extractable Value (MEV), also known as Max Extractable Value, is a measure of the profit a miner can make by determining which transactions to include in the block, which to exclude, and how to rank them.
Mining
The process of validating transactions and creating new blocks
N
NFT (Non-Fungible Token)
Unique digital asset
O
Oracle
Third-party data provider for blockchains
P
Permissionless
This term, often preferred to describe blockchain networks, describes the fact that there is no authority that sets the rules for who can use the system and how they can use it.
PoS (Proof of Stake)
Consensus mechanism based on staking
PoW (Proof of Work)
Consensus mechanism based on computational effort
Private Key
A secret key granting access to funds
Private Key / Secret Key
A piece of code generated by asymmetric key cryptography that is paired with a public key to decrypt data that has been hashed.
Proof of Spacetime
Simply put, PoSt means proving that a network participant has spent a certain amount of space on storage.
Pseudonymous
It's using a pseudonym, just like "Satoshi Nakamoto".
Public Address
The public address is the encrypted hash equivalent of the public key. Like a traditional bank account, it is the address the user uses to receive payments.
R
Rug Pull
Fraudulent project abandonment by developers
S
Satoshi Nakamoto
Bitcoin is the name of the person or group that developed the currency.
Seed Phrase
Recovery phrase for crypto wallets
Smart Contract
Protocols that execute automatically on the blockchain,
Smart Contract
Self-executing contract with code-based rules
Spot
A contract or transaction that buys or sells cryptocurrency on the market for payment or delivery in real time.
Stablecoin
Cryptocurrency pegged to a stable asset
Staking
Locking tokens to support network operations and earn rewards
T
T-Address (Zcash)
The T-Address is one of two address types used when transparency is demanded for transactions in the privacy-focused cryptocurrency Zcash.
Testnet
It is an alternative blockchain network that developers use for testing.
Token Issuance
Token issuance is the process of creating new tokens and adding them to the total token supply of a cryptocurrency.
Token Locking
Token lock-up refers to the period of time during which cryptocurrencies cannot be traded or traded.
Token Sale
A token sale refers to the opening of a cryptocurrency for sale to a limited group of investors before it is officially launched.
Tokenomics
The economic model of a token
Total Locked Assets (TVL)
The total assets locked is the sum of the assets staked within the protocol.
U
Unpermissioned Ledger
It is an open ledger that is not controlled by one person, but is accessible to everyone.
Utility Token
They are tokens specifically designed for the execution of any transaction.
V
Validator
A node responsible for validating transactions
W
Wallet
Digital storage for cryptocurrencies
Wash Trade
A form of market manipulation in which traders both sell and buy the same cryptocurrencies, creating artificial activity in the market.
Web3
The vision of a decentralized internet
Y
Yield Farming
Earning rewards by providing liquidity to DeFi protocols
Z
Zero-Knowledge Proof
Cryptographic method of proving a statement without revealing underlying data