Blockchain Glossary of Commonly used Terms

A 51% attack is when an entity gains control of more than half of a blockchain's mining power, allowing them to manipulate the network and double-spend coins.

An account in the context of blockchain is akin to having a set of digital keys - a public key and a private key. The public key is analogous to a username that can be shared publicly, while the private key must be kept secret as it grants full access and control over any tokens associated with that account. While tokens aren't physically stored in accounts or wallets, they are associated with them conceptually for ease of understanding.

In the dynamic world of blockchain, an actor is not limited to a single role or function. Indeed, it stands for any entity—be it a person, group, or device—that can engage in activities within a network. This broad definition underscores the inclusive nature of blockchain technology. By allowing diverse participants to interact, blockchain ecosystems thrive on collaboration and innovation. Whether it’s sending transactions, validating blocks, or contributing to governance decisions, each actor plays a pivotal role in maintaining the network’s integrity and efficiency. Thus, understanding the concept of an actor is crucial for grasping how blockchain systems operate and evolve over time.

An address on a blockchain network functions as a digital location for sending and receiving transactions, as well as identifying individual users, akin to an email address in online communications. It is often referred to as a 'public key'. Composed of a complex string of alphanumeric characters, an address can also be transformed into a QR code format for convenient scanning purposes. Specifically within the Ethereum blockchain, addresses start with the prefix '0x'. Take, for instance, the following example of an Ethereum address: `0x123456789AbCdEfGhIjKlMnOpQrStUvWxYz012345`. This unique identifier ensures that digital assets are accurately attributed and securely managed across the network.

This refers to the practice of securing a computer by ensuring it has no network connections, particularly to the internet, thereby protecting it from unauthorized remote access. It's commonly used in hardware wallets for cryptocurrencies to enhance security by keeping critical data offline.

A method of distributing tokens to wallet addresses, often for free, to spread awareness or reward loyalty. Airdrops can be a promotional activity or part of a fork in a blockchain.

A crypto airdrop is a marketing tactic where blockchain projects distribute free tokens to users' wallets to promote their venture and encourage participation.

An algorithm in cryptocurrency is a set of specific commands that enable secure, decentralized transaction verification and data encryption on a blockchain network.

The All-Time High (ATH) of a cryptocurrency is the highest price point it has ever reached in its trading history, reflecting the maximum value traders have assigned to it.

All-Time Low (ATL) in cryptocurrency refers to the lowest value a digital asset has ever reached in its trading history, serving as a historical benchmark and potential indicator of future growth, though it does not guarantee the asset won't reach new lows.

Any digital currency other than Bitcoin is referred to as an altcoin ("alternative coin"). These alternative coins may introduce different features or capabilities compared to Bitcoin, and some are variations or "forks" of Bitcoin with minor modifications.

Altcoins are cryptocurrencies other than Bitcoin, offering various functionalities and technologies. They include stablecoins, utility tokens, meme coins, governance tokens, and security tokens.

These regulations aim at reducing the ability of individuals or entities to use financial systems for money laundering activities. Cryptocurrencies also fall under these laws which vary across countries and regions.

An API is essentially a set of protocols and tools for building software applications. In blockchain contexts, APIs allow programs to communicate with each other, enabling services such as retrieving information from a blockchain network or sending transactions without needing direct user intervention.

An appchain refers to a bespoke blockchain tailored specifically for an application's requirements, offering optimized performance while relying on an underlying primary ("Layer 1") blockchain for consensus mechanisms.

The application layer in blockchain is the user-facing platform that includes dApps, smart contracts, and APIs, enabling interaction with the underlying blockchain technology and expanding its utility.

Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The term may also apply to any machine that exhibits traits associated with a human mind such as learning and problem-solving.

A specialized computer used for specific purposes such as blockchain transactions where tailored calculations for consensus algorithms are required.

The ask price is the lowest price a seller is willing to accept for an asset, such as cryptocurrency, and is a critical component in completing trades on an exchange.

An atomic swap is a peer-to-peer exchange mechanism that allows for the direct trade of cryptocurrencies across different blockchains without intermediaries, using smart contracts to ensure secure and trustless transactions.

Within Proof of Stake systems like Ethereum's Beacon Chain, attestation involves validators (other than the block proposer) confirming their agreement with proposed blocks through votes that contribute towards reaching consensus on the state of the blockchain.

An automated market maker (AMM) is a protocol that facilitates the automated trading of digital assets on decentralized exchanges by using liquidity pools and pricing algorithms to eliminate the need for traditional buy and sell order matching.

The Beacon Chain is a critical component in the Ethereum network's transition from Proof of Work (PoW) to Proof of Stake (PoS). It operates as a separate blockchain running alongside the existing Ethereum chain, managing and coordinating the network's validators, their stakes, and consensus.

A bear market is a period of declining asset prices with a supply that exceeds demand, often marked by a 20% drop from recent highs and widespread negative sentiment.

BEP-20 is a token standard on the Binance Smart Chain that extends Ethereum's ERC-20, providing a framework for issuing and managing tokens with a focus on flexibility and efficiency.

BEP-20 stands as a token standard, one that extends beyond Ethereum’s well-known ERC-20 standards. Essentially, it serves as the backbone for tokens on the Binance Smart Chain (BSC), a dynamic and influential player in the blockchain arena.

The bid price in cryptocurrency is the maximum amount a buyer is willing to pay for a digital asset at a specific time, reflecting the demand and serving as a critical component in trade execution.

The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller will accept (ask) for an asset, reflecting the market's liquidity and impacting trade profitability.

Introduced in 2009 by an unknown individual using the pseudonym Satoshi Nakamoto, Bitcoin is both a decentralized cryptocurrency and its underlying technology – a PoW blockchain named after it. The term "Bitcoin" refers to both the network protocol and its native currency (lowercase "bitcoin"), which can be transacted globally without central authorities.

Bitcoin Core is the reference software that provides the necessary tools to run a Bitcoin node and is pivotal for the maintenance and development of the Bitcoin network.

Bitcoin dominance is the ratio of Bitcoin's market cap to the total market cap of all cryptocurrencies, indicating its market share and relative influence in the crypto sphere.

A Bitcoin Improvement Proposal (BIP) is a document proposing changes to the Bitcoin network, ranging from blockchain consensus rules to software updates, and requires community consensus to be adopted.

Bitcoin Inscriptions are the process of embedding data like images, texts, or videos onto individual Satoshis, enabling the creation of Bitcoin-native digital assets with the blockchain's inherent security and immutability.

Imagine a blockchain as an ever-updating ledger with changes synchronized across numerous nodes. After a batch of transactions is verified and agreed upon by these nodes, they're cryptographically sealed into a "block" which then joins the chain, creating a continuous link.

This term signifies the count of blocks linked sequentially within a blockchain. For instance, Height 0 denotes the initial block, also known as the Genesis Block.

The number of blocks in the blockchain between any given block and the original genesis block. It serves as an identifier for the block's position in the entire blockchain.

A block in blockchain is a data structure that holds batches of transactions, securely linked to form an immutable chain.

This incentive is given to those who successfully validate or mine new blocks in a blockchain network. It often comprises both newly minted coins and transaction fees.

The incentive given to a blockchain miner or validator for successfully adding a new block of transactions to the blockchain. It typically includes a predetermined amount of cryptocurrency.

A block reward refers to the crypto awarded to a miner or validator for successfully adding a new block to the blockchain. It consists of transaction fees and a block subsidy, serving as an incentive and a method to distribute new coins.

Refers to the duration it takes for one block of transactions to be confirmed by the network through mining (PoW) or validating (PoS).

A blockchain bridge connects disparate blockchain networks, allowing for the transfer of tokens and data, thereby enhancing interoperability and enabling broader functionality across different ecosystems.

Blockchain confirmation is the verification process of a transaction, ensuring its validity before being added to the blockchain, which is essential for network security and integrity.

An application that allows users to interact with blockchain data more conveniently than directly querying the blockchain itself, often providing information about transactions, addresses, and other relevant data in an accessible format.

A blockchain explorer is a browser-like tool that provides detailed insights into blockchain transactions, wallet balances, and overall network health.

Blockchain is a decentralized, distributed ledger that records transactions across multiple computers, ensuring security and transparency.

A Blockchain Transaction ID (TXID) is a unique alphanumeric code that unmistakably identifies and tracks every verified transaction on the blockchain network.

A concept describing the challenges of achieving scalability, security, and decentralization simultaneously in a blockchain network. Often, optimizing for one aspect can compromise the others.

A financial reward offered for identifying and reporting vulnerabilities or bugs in software code.

A bounty in blockchain is a reward offered for completing specific tasks such as identifying bugs or promoting a project, aimed at improving engagement and security.

A brain wallet refers to a cryptocurrency account that is created from a passphrase or seed phrase generated by the user. This method relies on human-generated phrases which are often less random than computer-generated ones, making them vulnerable to attacks. Brain wallets are generally discouraged due to security concerns.

A breakout in cryptocurrency is a price shift above resistance or below support, indicating a potential new price trend and trading opportunity.

In cryptocurrency context, this term refers to infrastructure that facilitates asset transfer between different blockchains or layers within a network ecosystem.

A term derived within the blockchain community, "BUIDL" is a play on the word "build," emphasizing development and construction within the ecosystem. It reflects an ethos of contributing to the underlying technology and infrastructure rather than simply holding cryptocurrency for speculative investment.

BUIDL is a term encouraging active participation and contribution to the development and growth of the blockchain and crypto ecosystem, rather than merely holding digital assets.

A bull market is a period where asset prices consistently rise, often due to investor optimism and economic strength, leading to greater demand than supply.

'Buy The Dip' (BTD) refers to the investment strategy of purchasing assets following a price decline, with the intention of profiting from a future market upswing.

A buy wall is a large buy limit order or a combination of orders at a certain price, often set by entities with substantial assets to maintain or increase the price of a cryptocurrency.

A form of low-level code intended for execution by a virtual machine rather than human readability; Ethereum's Solidity language compiles down into bytecode for processing by its Virtual Machine (EVM).

The capability of a system to continue functioning despite malicious actions or failures within its components; critical for ensuring reliability in decentralized networks where trust cannot be assumed among participants.

The Byzantine Generals' Problem refers to the difficulty of achieving consensus in a decentralized system where participants cannot trust one another; blockchain technology addresses this challenge through consensus mechanisms and cryptographic security.

This term refers to one of several significant updates to the Ethereum network that took place in October 2017. The Byzantium Fork implemented various improvements to enhance transaction processing efficiency, privacy features, and smart contract functionality.

A candidate block is a block filled with transactions from the mempool, awaiting validation to be confirmed and added to the blockchain. It serves as a proposal that the network can either accept or reject.

A Central Bank Digital Currency (CBDC) is a digital form of a country's official currency, issued and governed by the central bank, offering a secure and stable means of electronic payment.

Circulating supply is the amount of cryptocurrency tokens or coins that are publicly available and circulating in the market at any given time.

In the context of blockchain, a client is software that connects to the network, enabling participation in transaction validation and consensus. It often includes a built-in wallet for managing cryptocurrencies.

Originating from "Commerce & Decentralized Finance," Codefi is part of ConsenSys and focuses on creating decentralized applications (DApps) for commercial use cases such as payments, asset management, and decentralized exchanges.

A coin is a type of digital currency that operates on its own blockchain, serving as a medium of exchange. Coins are distinct from tokens, which are issued on existing blockchains.

A coin in the blockchain realm is a digital asset with its own blockchain, used as currency or a store of value within its network. Unlike tokens, which operate on pre-existing blockchains, coins like Bitcoin and Ether are independent and integral to their respective blockchain ecosystems.

Cold storage is the practice of keeping cryptocurrencies or digital assets in a secure environment offline, protecting them from online vulnerabilities.

A cold wallet or cold storage refers to a way of keeping cryptocurrency tokens offline, thus reducing exposure to online threats such as hacking attempts. These storage solutions include hardware wallets or paper wallets that store private keys without an internet connection.

A cold wallet is a secure method for storing cryptocurrency private keys offline, shielding them from online threats.

Collateralization in blockchain is securing a loan or financial activity by pledging digital assets as insurance against default, commonly used in DeFi protocols and margin trading.

In blockchain terminology, confirmation signifies the verification of transactions by network participants through mining or validation processes depending on whether it's PoW or PoS respectively. Once confirmed sufficiently by subsequent blocks being added after it, a transaction becomes nearly impossible to reverse.

Consensus in blockchain networks describes the agreement process among nodes regarding the validity and order of transactions in the ledger. Common consensus mechanisms include PoW where miners solve complex problems for validation rights and PoS where validators stake assets for the chance to validate blocks and earn rewards.

A consensus mechanism is a blockchain protocol that ensures all participants agree on the network's ledger state, crucial for validating transactions and maintaining security.

An upgrade implemented into Ethereum's network around February 2019 aimed at improving system efficiency including cost reduction for certain types of transactions along with other enhancements preparing for future upgrades like Serenity.

The creator economy is a sector of the digital economy that allows content creators to monetize their work directly through internet platforms, often resulting in more control and potential earnings for the creators themselves.

Cross-chain refers to technologies that enable blockchains to interact and transfer assets and information, bridging the gap between different networks without the need for intermediaries.

Crypto liquidation is the process where a trader's position is closed and their assets are sold, typically due to market losses exceeding the margin requirements. It can be partial or total, voluntary or forced, depending on the situation.

A crypto whale is an individual or entity with substantial cryptocurrency holdings, capable of influencing market movements and decisions within blockchain networks.

A Crypto Winter signifies a prolonged period of declining cryptocurrency prices, marked by a stark decrease from previous high values, leading to subdued market sentiment and investor activity.

Cryptoassets encompass a wide range of digital assets on the blockchain, including cryptocurrencies, tokens, and non-fungible tokens (NFTs), each representing various forms of value and ownership.

Cryptocurrency refers to a form of digital or virtual currency that uses cryptography for security and operates on a decentralized system using blockchain technology, without the need for central authorities like governments or banks.

Cryptoeconomics combines cryptography with economic incentives underpinning activities in decentralized networks such as blockchains. It involves analyzing how protocols can incentivize desired network behaviors while discouraging malicious actions through economic rewards and penalties.

Cryptography is the practice of secure communication using codes. In blockchain, it underpins the security of transactions, ensuring that only the owner of a private key can authorize transfers.

Cryptography is the practice of securing information by converting it into a code, preventing unauthorized access, and is essential for maintaining digital security and privacy.

A custodian in blockchain is an entity that secures and manages an individual's private keys for cryptocurrency assets, ensuring safekeeping, regulatory compliance, and offering services like insurance and transaction facilitation.

Crypto custody refers to the safeguarding of cryptographic keys that are essential for accessing and managing digital assets, ensuring their security and integrity.

A Decentralized Autonomous Organization (DAO) is an entity governed by smart contracts, with decisions made by member consensus rather than a central authority, reflecting a collective management approach.

Data availability in blockchain refers to the ability of all network participants to access and verify transaction data, ensuring transparency and network integrity.

The process of distributing power away from a central point. In blockchain, it refers to the dispersal of control over a network among all participants, eliminating the need for a central authority.

An application that operates on a decentralized network of computers rather than a single server. Dapps are open-source, operate autonomously, and have their backend code running on a blockchain.

A decentralized application (dApp) is a software program that runs on a blockchain or peer-to-peer network, using smart contracts to operate independently of a single authority, ensuring user privacy, fault-tolerance, and data integrity.

A Decentralized Autonomous Organization (DAO) is a leaderless, transparent, and democratic entity where decisions are made collectively by its members, guided by smart contracts on a blockchain.

A Decentralized Exchange (DEX) is a peer-to-peer platform allowing users to trade cryptocurrencies directly without intermediaries, using smart contracts for transaction facilitation.

Decentralized Finance (DeFi) is a blockchain-based form of finance that does not rely on central financial intermediaries, offering financial services like lending, borrowing, and trading through peer-to-peer networks.

Short for Decentralized Finance, DeFi is a blockchain-based form of finance that eliminates intermediaries by using smart contracts on a blockchain, primarily Ethereum.

A deflationary asset is a digital currency that is engineered to reduce in supply over time, potentially leading to an increase in value due to its scarcity.

A "degen" is a crypto trader who takes high-risk, speculative actions, often disregarding in-depth analysis in favor of quick, gut-driven decisions.

Delegated proof-of-stake (DPoS) is a blockchain consensus mechanism where users vote for delegates to validate transactions, offering a democratic, efficient, and faster alternative to proof-of-work and proof-of-stake systems.

Delegated proof-of-stake (DPoS) is a blockchain consensus mechanism where users vote for delegates to validate transactions, offering a democratic, efficient alternative to proof-of-work and proof-of-stake systems.

A depeg occurs when a stablecoin's value diverges from the asset it's pegged to, due to factors like market volatility, liquidity issues, or regulatory changes.

A depeg occurs when a stablecoin's value no longer aligns with the asset it's pegged to, often due to market conditions, liquidity issues, or regulatory changes.

Derivatives in cryptocurrency are contracts that derive their value from the price movements of underlying digital assets, allowing traders to speculate on these assets without direct ownership.

A design flaw attack is a cyberattack exploiting software vulnerabilities to steal or compromise users' cryptocurrency assets.

A desktop wallet is a software application that stores and manages cryptocurrency private and public keys on a personal computer, providing an interface to interact with the blockchain.

A digital signature is a cryptographic tool that authenticates the identity of the sender and ensures the integrity of digital messages or transactions, akin to a handwritten signature in the digital realm.

A distributed ledger is a decentralized network that records transactions across multiple locations simultaneously, ensuring transparency and security.

Dollar Cost Averaging (DCA) is a strategy where a fixed amount of money is invested in an asset at regular intervals, aiming to reduce the impact of volatility and potentially lower the total average cost of investment.

Double spending refers to the fraudulent act of using the same digital currency for multiple transactions. It's a significant concern for digital currencies but is effectively prevented by blockchain technology.

Dynamic NFTs are digital tokens that can change their properties or metadata in real-time based on coded conditions, providing a more interactive and evolving digital asset experience.

DYOR (Do Your Own Research) is a crucial practice in crypto investing that involves thorough research to make informed decisions and avoid scams.

An eclipse attack is a network security breach where a malicious actor isolates and manipulates a single node to disrupt its operations and control the flow of information.

Entropy in the context of cryptocurrency refers to the randomness used to secure a crypto wallet, typically represented as a large random number that is the basis for a wallet's secret recovery phrase.

The ERC-1155 is a versatile Ethereum token standard that enables a single smart contract to manage multiple token types, including fungible, non-fungible, and semi-fungible tokens, optimizing efficiency and reducing transaction costs.

ERC-20 tokens are a type of digital asset on the Ethereum blockchain, adhering to a specific standard that ensures interoperability and functionality within the Ethereum ecosystem.

A technical standard for Ethereum smart contracts, defining a common list of rules for Ethereum tokens to follow, allowing seamless interaction with other smart contracts and decentralized applications.

ERC-721 is a blockchain standard for creating unique, non-fungible tokens on the Ethereum network, each with distinct properties and not interchangeable with others.

Ethereum 2.0 signifies an upgrade to the Ethereum network, transitioning to proof-of-stake to improve scalability, security, and efficiency.

An Ethereum Improvement Proposal (EIP) is a formal mechanism for suggesting enhancements to the Ethereum network, allowing for community participation and consensus in the network's development.

The Ethereum Virtual Machine (EVM) is the computational engine that enables smart contracts and decentralized applications to run on the Ethereum blockchain. It operates across a global network of nodes, ensuring security and consensus through computation fees known as gas.

Currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Its value is derived from the relationship between supply and demand.

Fiat money is government-issued currency that is not backed by a physical commodity but by the trust in and stability of the issuing government.

A flash loan is a DeFi financial instrument allowing for collateral-free, instant borrowing and repayment within the same blockchain transaction.

The Flippening refers to the hypothetical scenario where Ethereum surpasses Bitcoin in market capitalization, a possibility driven by Ethereum's flexible blockchain technology and its wide array of applications.

FOMO, or Fear Of Missing Out, is the anxiety that investors feel when they believe they are missing out on a profitable investment or trading opportunity in the cryptocurrency market.

A fork in blockchain refers to a divergence in the protocol, where the original code is either updated or a new, separate blockchain is created, often due to enhancements, security, or community disagreements.

FUD is an acronym for "Fear, Uncertainty, and Doubt," a disinformation strategy used to influence perception by spreading negative, misleading, or false information about a cryptocurrency.

A full node is a computer that fully enforces all the consensus rules of a blockchain, contributing to the network's security and data accuracy by validating transactions and blocks.

Fundamental analysis in cryptocurrency is the evaluation of a digital asset's intrinsic value by examining economic, financial, and other qualitative and quantitative factors.

Crypto futures are contracts that allow traders to speculate on the price of cryptocurrencies at a future date, offering opportunities for hedging and portfolio diversification but also carrying the risk of significant losses due to market volatility and leverage.

GameFi is an innovative blend of gaming and blockchain, where players earn real rewards through gameplay and asset management.

A unit that measures the amount of computational effort required to execute operations like transactions and smart contracts on the Ethereum network. Gas fees are paid in ETH.

A gas fee is the payment made to conduct a transaction on a blockchain, compensating for the computational resources used.

The maximum amount of computational effort a user is willing to expend on a transaction on the Ethereum network, measured in gas units.

Gas in the context of Ethereum is the unit that measures the computational effort necessary to execute transactions and smart contracts, with gas fees paid to validators for their computational services.

The amount of ether a user is willing to pay per unit of gas to have their Ethereum transaction processed. It is denominated in gwei.

The very first block in a blockchain, which is hardcoded into the software of the applications that utilize its blockchain.

A genesis block is the inaugural block on a blockchain, known as Block 0 or Block 1, which is hardcoded into the network's software and contains no reference to a preceding block.

A Graphical Processing Unit (GPU) is a powerful computer component primarily used for rendering graphics and increasingly for parallel computing tasks, such as cryptocurrency mining, due to its high processing capabilities.

A denomination of ether used to measure transaction fees on the Ethereum network. One gwei equals 0.000000001 ETH.

Gwei is a unit of ether used to calculate transaction fees on the Ethereum network, equal to one billionth of an ETH.

Halving in cryptocurrency is an event that cuts the reward for mining new blocks by half, aiming to control inflation and increase scarcity. It occurs periodically, ensuring a gradual release of new coins until the maximum supply is reached.

A hard cap in cryptocurrency is the predetermined maximum supply of tokens set in a project's code, ensuring no more can be created to preserve value and prevent inflation.

A significant change to a blockchain's protocol that makes previously invalid blocks or transactions valid, or vice-versa. This requires all nodes to upgrade to the latest version of the protocol software.

A hard fork is a protocol upgrade that permanently diverges a blockchain into two chains when nodes do not reach consensus on the new version.

A hard fork is a protocol upgrade that permanently splits a blockchain into two incompatible chains when nodes do not agree on the new version.

A Hardware Security Module (HSM) is a secure device that manages and protects cryptographic keys, crucial for safeguarding sensitive digital transactions and assets.

A Hardware Security Module (HSM) is a secure physical device that manages and protects cryptographic keys, crucial for operations like encryption, decryption, and authentication.

A hardware wallet is a physical device that secures cryptocurrency private keys offline, offering protection against online threats and enabling self-custody of digital assets.

A function that converts an input of letters and numbers into an encrypted output of a fixed length. In blockchains, hashes are used to secure transactions and control data structure.

A hash is a fixed-length string that uniquely represents data, created through a mathematical function for security and integrity in digital transactions.

Hash rate is the measurement of the computational power used by a blockchain network to process transactions and mine new blocks, expressed in hashes per second.

A Hierarchical Deterministic (HD) Wallet is a crypto wallet that generates all its keys from a single seed phrase, ensuring enhanced security and simplified backup. It uses a tree-like structure to produce a vast array of key pairs, making it easier to manage multiple addresses and accounts.

HODL is a crypto community term that encourages holding onto digital assets long-term, despite market fluctuations, originally stemming from a forum typo.

Hot storage, or a hot wallet, is a digital crypto wallet connected to the internet, facilitating online management of blockchain assets but with increased risk of cyber threats.

A hot wallet is an internet-connected crypto wallet used for storing private keys and managing digital assets with convenience, though at a higher risk of online threats.

The process of validating a user's identity on a blockchain network, often required in platforms adhering to KYC (Know Your Customer) regulations.

Identity Verification (IDV) ensures the authenticity of an individual's identity by validating personal details to secure digital asset recovery and prevent fraud.

In blockchain, immutable means that once data is entered into the ledger, it cannot be altered, ensuring the ledger's permanence and reliability.

A blockchain characteristic where once data is written, it cannot be altered or deleted, ensuring a permanent and unchangeable record of all transactions.

Impermanent loss is the potential reduction in value of staked assets in a liquidity pool due to market price changes compared to simply holding the assets.

Inflation in the blockchain context refers to the decrease in purchasing power of a currency, leading to higher asset prices, while cryptocurrencies like Bitcoin are designed to be resistant to inflation due to their decentralized nature and capped supply.

An Initial DEX Offering (IDO) is a crowdfunding method where blockchain projects offer tokens through a decentralized exchange, providing immediate liquidity and open participation.

A fundraising event where a cryptocurrency project launches a token sale through an established exchange, leveraging the exchange's user base and trust.

The ability of different blockchain systems to communicate and transact with each other without intermediaries, enabling a seamless exchange of information and value.

Blockchain interoperability is the ability of different blockchain networks to exchange data and value with each other, akin to sending emails across various providers.

The InterPlanetary File System (IPFS) is a decentralized, peer-to-peer protocol for storing and accessing files, ensuring data permanence and efficient distribution across a global network.

A peer-to-peer network for storing and sharing data in a distributed file system, often used in conjunction with blockchain to enhance decentralization.

A Jager represents the smallest fraction of a Binance Coin (BNB), equivalent to one hundred-millionth of a BNB, enabling the division of BNB for transactions of any size.

JOMO, or Joy of Missing Out, refers to the satisfaction felt when one avoids participating in unwise crypto investments, particularly during market downturns.

A keylogger is a surveillance tool that records every keystroke made on a computer, often used by cybercriminals to capture sensitive information such as cryptocurrency wallet credentials.

Know Your Customer (KYC) is a regulatory process used by financial institutions, including crypto service providers, to verify customer identities, prevent fraud, and ensure compliance with anti-money laundering (AML) laws.

Layer 0 is the foundational infrastructure of blockchain technology, providing a base for other layers to build upon and addressing key challenges such as scalability, interoperability, and usability.

Layer 1 blockchain is the foundational layer of a blockchain network, providing the essential infrastructure for transaction processing and network governance.

In the world of blockchain, a ledger is essentially a record-keeping book. But hold on — this isn't your ordinary ledger. It's a digital ledger that records all transactions across a network of computers. Every participant can see the whole history, making it incredibly transparent. Now, imagine a system so secure that once something is written, it's set in stone. That's the blockchain ledger for you — tamper-proof and immutable. Because of this, it has become the backbone for cryptocurrencies like Bitcoin. But there's more! These ledgers aren't just about money exchanges; they're capable of tracking anything of value. We're talking property titles, legal contracts, even votes! Let’s dive into how it works. Transactions are bundled into blocks and chained together (hence "blockchain"). Each transaction includes vital details — who sent what to whom and when. Cryptography is key here — pun intended! Users sign transactions with private keys, ensuring security at every step. Now, consider the implications beyond finance. Blockchain ledgers could redefine transparency and trust in various sectors.

Leverage in cryptocurrency refers to using borrowed funds to increase potential investment returns, amplifying both potential profits and risks.

In cryptocurrency circles, LFG typically stands for 'Let's Fucking Go' or 'Let's Freaking Go,' an expression of excitement and support for crypto projects or market movements.

A light node is a blockchain component that holds only block headers, enabling it to operate with minimal resources and rely on full nodes for detailed information.

The Lightning Network is a layer-2 protocol on the Bitcoin blockchain, enabling fast, low-cost transactions through off-chain payment channels. It aims to improve transaction speed and scalability while reducing fees and energy consumption.

The Lightning Network is a second-layer protocol that enables fast, low-cost transactions on the Bitcoin blockchain, aiming to solve scalability issues by allowing off-chain transactions.

A limit order is a directive to buy or sell a cryptocurrency at a specified price, providing control over the transaction price but not guaranteeing execution.

A liquidity pool is a collection of tokens locked in a smart contract to enable efficient and automated transactions on a DeFi platform.

A Mainnet is an independent, fully functional blockchain network where actual cryptocurrency transactions are recorded and verified.

Margin trading in crypto refers to the practice of using borrowed funds from a broker to trade a cryptocurrency, allowing for greater purchasing power and potential for increased gains or amplified losses.

Market capitalization in crypto is the total market value of a cryptocurrency's circulating supply, calculated by multiplying the number of coins by the current price.

Maximal Extractable Value (MEV) is the practice by which miners or validators maximize profits by manipulating transaction order in a blockchain block, which can affect network users and the blockchain's integrity.

A mempool is a digital waiting area for unconfirmed transactions on a blockchain, where they are stored and validated before being added to the blockchain.

A Merkle tree is a data structure that organizes data into a tree format where each leaf node is a hash of data, and each non-leaf node is a hash of its child nodes, culminating in a single top hash, the Merkle root, which represents the entirety of the data.

Metadata is a set of data that provides information about other data, such as the context, content, and structure, often used in blockchain to detail the attributes of digital assets like NFTs.

The metaverse is an immersive virtual space, enabling users to interact, socialize, and conduct activities with real-world value, powered by blockchain technology.

A miner fee is a charge applied to cryptocurrency transactions to compensate the network participants for processing and validating the transactions on the blockchain.

A miner fee is the cost associated with processing and confirming transactions on a blockchain network, paid to miners who validate each transaction.

A miner is an individual or entity that engages in the process of validating transactions and creating new blocks in a cryptocurrency network, often receiving cryptocurrency as a reward for their contributions.

Mining is the decentralized process of confirming and adding transactions to a blockchain, also issuing new cryptocurrency units through solving complex puzzles.

A mining pool is a collective of crypto miners who pool their computing power to heighten their chances of mining a block and receiving rewards, with earnings shared based on each miner's contribution.

Minting in blockchain is the creation and distribution of new coins or tokens, often as rewards for validators in a decentralized network.

A mobile wallet is a smartphone application that stores private keys for cryptocurrencies, enabling users to manage and transact their digital assets securely and conveniently.

A multichain refers to an application or cryptocurrency asset that operates or exists across multiple blockchain networks, enabling interchain communication and asset transfer without centralized bridges.

Multisignature, or multisig, refers to a security feature in cryptocurrency that requires multiple signatures to authorize a single transaction, enhancing security by distributing control among several parties.

Network effects in blockchain refer to the increase in value and utility of a cryptocurrency or technology as more people adopt and use it, often leading to a virtuous cycle of growth and adoption.

A network fee is a charge paid by users to blockchain miners or validators for processing transactions, incentivizing them to maintain the network's security and efficiency.

A node in blockchain is a computer that connects to the network, responsible for validating, relaying, or mining data, ensuring decentralized and secure transactions.

A non-custodial wallet is a type of cryptocurrency wallet where the user has exclusive control over their private keys and, therefore, their funds, without relying on third-party services.

A Non-Fungible Token (NFT) is a blockchain-based digital asset that represents unique ownership of a specific item or piece of media, with verifiable authenticity and non-interchangeable value.

A nonce in blockchain is a one-time-use number that miners must find to create a valid hash and add a new block to the chain.

An off-chain transaction is a value exchange that occurs outside of a blockchain network, offering speed and efficiency without the need for direct blockchain confirmation.

Offline storage, or 'cold storage', refers to the practice of securing cryptocurrency private keys on devices that are not connected to the internet, thus protecting them from online threats and granting users full control over their digital assets.

On-Chain refers to transactions that are recorded and verified on a blockchain network, visible to all and immutable, ensuring transparency and security within the network.

Online storage, or 'hot storage', is a method of storing cryptocurrency private keys on an internet-connected device, allowing for easy access but increasing the risk of cyber threats.

'Oops!' refers to an error message indicating that the requested content on a blockchain website cannot be found, often leading to a 404 page. It's a reminder to users that they may need to search again or check the URL they've entered.

Open source signifies a development paradigm that promotes the free distribution, modification, and use of software's source code. It's central to blockchain technology, fostering innovation, transparency, and community-driven progress.

Options in cryptocurrency are contracts that give traders the right to buy or sell an underlying digital asset at a predetermined price within a specific timeframe, without the obligation to execute the purchase or sale.

In blockchain, an oracle is a system that provides external data to smart contracts, allowing them to execute based on real-world information. They act as a bridge between on-chain and off-chain environments.

An order book is an electronic list of buy and sell orders for a trading pair on an exchange, revealing real-time market activity and price levels.

Ordinals are unique, NFT-like digital assets inscribed directly onto the Bitcoin blockchain, offering a way to create and transfer non-fungible content on Bitcoin's network.

An orphan block is a valid block that is not part of the main blockchain due to the absence of a recognized parent block, often resulting from two blocks being mined simultaneously.

Over-the-counter (OTC) trading in crypto is a decentralized transaction method where trades are conducted directly between two parties, often for large amounts, outside formal exchanges, though it carries additional risks like less transparency and higher counterparty risks.

Paper trading is a simulated trading process where individuals can practice buying and selling cryptocurrencies without using real money, allowing for risk-free strategy testing and learning.

Pedersen Verifiable Secret Sharing (PVSS) is a cryptographic protocol for dividing a secret into shares and verifying the integrity of these shares without revealing the secret itself.

Peer-to-peer (P2P) refers to a decentralized network where nodes, or computers, directly share data and tasks without a central server, ensuring a resilient and efficient system for distributing information and assets.

Pegged refers to an asset, especially in cryptocurrency, that maintains its value by being directly tied to another asset, such as fiat currency or gold, to achieve stability in its valuation.

A permissioned blockchain is a private, restricted-access ledger where only authorized individuals can engage with the network, offering a blend of control, privacy, and efficiency for its users.

Play to Earn (P2E) refers to a gaming model where players can earn real-world rewards, such as cryptocurrency or NFTs, for in-game achievements within blockchain-based games.

A Ponzi scheme is a fraudulent investment scam offering high returns with little to no risk, paying profits to earlier investors with the capital of new investors, leading to inevitable collapse.

Privacy coins are cryptocurrencies that provide enhanced privacy by concealing transaction details and user identities, ensuring that activities within their networks remain untraceable.

A private blockchain is a restricted network managed by a single entity, designed for specific users and focused on privacy and efficiency, but potentially less secure than its public counterparts.

A secret alphanumeric code that proves ownership of a blockchain address and allows the user to sign transactions, ensuring their authenticity and preventing fraud.

A private key is a secret alphanumeric code that allows a user to access and manage their cryptocurrency holdings securely.

Proof of Attendance Protocol (POAP) is a blockchain-based digital badge that serves as verifiable proof of an individual's attendance at an event.

Proof of Knowledge is a cryptographic protocol where a prover convinces a verifier that they possess certain information, without revealing the information itself.

Proof of Reserves (PoR) is a method that verifies a crypto exchange's liquidity and solvency by demonstrating it holds the digital assets it claims to, ensuring the security of user funds.

Proof of Stake (PoS) is a consensus mechanism where validators are chosen to process transactions and create new blocks based on the amount of cryptocurrency they stake, offering a more energy-efficient alternative to traditional mining.

Proof of Work (PoW) is a consensus mechanism used in blockchain networks to validate transactions and secure the system, where miners solve complex puzzles to add new blocks and are rewarded for their 'work'.

A public address is a unique alphanumeric code that allows individuals to receive cryptocurrency into their digital wallets.

A public blockchain is an open, decentralized network where anyone can participate and all transactions are transparent and immutable.

A cryptographic code that allows a user to receive cryptocurrencies into their account. It's derived from the private key and can be shared publicly.

A public key is an alphanumeric code used to receive cryptocurrency, paired with a private key for secure transactions. It is essential for blockchain operations and is publicly shareable without compromising the associated private key.

A pump and dump scheme is a manipulative market practice where perpetrators inflate an asset's price through hype, then sell off their holdings at the peak, causing the price to crash.

A QR code in cryptocurrency is a scannable matrix barcode that holds wallet addresses, enabling easy and error-free transactions.

Quantum computing leverages the principles of quantum mechanics to process data exponentially faster than classical computers, using qubits for parallel processing and potentially impacting cryptography and Bitcoin mining.

Recursive inscriptions are a blockchain process where data from existing inscriptions is reused to create new inscriptions, enabling more complex data structures without exceeding Bitcoin's data size limits.

In cryptocurrency, 'rekt' refers to a significant financial loss due to a poor investment or trade.

The Relative Strength Index (RSI) is a technical analysis tool that measures the speed and magnitude of price movements of a cryptocurrency, indicating overbought or oversold conditions that could presage a price reversal.

A relay chain is the central chain in the Polkadot network, enabling interoperability and parallel processing across multiple blockchains.

Return on Investment (ROI) is a financial metric that calculates the percentage gain or loss of an investment relative to its initial cost.

A ring signature is a cryptographic tool that ensures anonymity by obscuring the identities of parties in a transaction, commonly used in privacy-focused cryptocurrencies to prevent tracing the sender or recipient.

In cryptocurrency, a royalty is a payment to creators from each resale of their digital asset, calculated as a preset percentage of the secondary market sale price.

A rug pull in cryptocurrency is a scam where developers abandon a project and run off with investors' funds, leaving them with a valueless asset.

Satoshi Nakamoto is the pseudonym used by the unknown person or people who developed Bitcoin, authored the Bitcoin white paper, and created and deployed Bitcoin's original reference implementation. As part of the implementation, they also devised the first blockchain database.

A Schnorr signature is a digital signature method that consolidates multiple signatures into one, improving blockchain privacy, efficiency, and scalability, particularly after its integration into the Bitcoin network with the Taproot upgrade.

A Secure Element (SE) is a microprocessor chip that ensures the secure storage and processing of sensitive data, such as biometric and transaction information, and is crucial in protecting against cyber threats and physical tampering.

A security audit is an in-depth review process aimed at detecting and resolving security vulnerabilities within a blockchain network, ensuring the system's integrity and compliance with regulatory standards.

A seed phrase is a series of random words that allows users to access or recover their cryptocurrency wallet and its contents.

Segregated Witness (SegWit) is a Bitcoin network upgrade that increases block size limits by separating signature data from transaction data, improving scalability and security.

Self custody in crypto means having complete control over one's digital assets without relying on third-party intermediaries.

Self custody in blockchain refers to individuals having full control over their digital assets by managing their private keys, without relying on third-party intermediaries.

SHA-256 is a cryptographic hash function used to secure and verify transaction data on Proof-of-Work blockchains like Bitcoin, ensuring the integrity and continuity of the blockchain.

Shamir Secret Sharing is a cryptographic method that breaks down a secret into encrypted parts, requiring a minimum number of parts to reconstruct the original secret.

The Shanghai Upgrade refers to a significant update on the Ethereum network that enables stakers and validators to unstake and withdraw their staked Ether, marking the completion of Ethereum's transition to a proof-of-stake consensus and introducing various technical improvements.

A shard in blockchain technology is a smaller, self-sufficient segment of a larger network that processes a subset of transactions, enhancing efficiency and security.

Sharding in blockchain is the process of dividing the network into smaller partitions, or shards, to enhance scalability and transaction processing speed.

Shitcoin refers to a cryptocurrency with little to no value, utility, or credibility, often associated with speculative trading and market manipulation.

A sidechain is an independent blockchain connected to a main blockchain, allowing assets and information to be transferred between them through a two-way peg, improving scalability and enabling interoperability.

Slashing is the act of penalizing validators on PoS networks by reducing their staked cryptocurrency as punishment for dishonest or abnormal behavior, ensuring network integrity.

Slippage in crypto trading is the difference between a trade's expected price and the actual execution price, often caused by market volatility and liquidity issues.

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller directly written into lines of code, which automatically enforces and executes the terms when predetermined conditions are met.

Self-executing contracts with the terms of the agreement directly written into lines of code, which automatically enforce and execute the terms when conditions are met.

Social engineering is a manipulative technique where cybercriminals trick individuals into giving away sensitive information or access to assets, such as cryptocurrency accounts, by exploiting human psychology.

A soft fork is a backward-compatible upgrade to a blockchain that allows new features or fixes without a complete overhaul, requiring only a majority of miners to update.

A software wallet is a digital application that stores private keys for cryptocurrency transactions, enabling users to manage their digital assets on various devices.

Solidity is an object-oriented, high-level programming language for creating smart contracts on blockchain platforms like Ethereum. It combines syntax from C++, Python, and JavaScript with the ability to interact with the Ethereum Virtual Machine.

Source code is the collection of computer instructions, often written in high-level programming languages, that defines how software operates. In blockchain, it can be open source, allowing public access and collaborative development, or proprietary, kept private by its creators.

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a less volatile asset, such as fiat currencies or commodities, offering a middle ground between traditional stability and digital innovation.

Staking is the process of locking up cryptocurrency to support a blockchain network's security and transaction validation, earning rewards in return.

A staking pool is a collaboration where crypto holders combine their assets to increase their staking weight in a PoS blockchain, enhancing their chances of earning validation rewards.

A stop-loss order is an automatic trade execution set to occur when a cryptocurrency reaches a specified price, limiting potential losses or locking in profits.

A subnet in blockchain is a smaller, autonomous network within a larger blockchain network, designed to improve scalability, efficiency, and performance by handling specific transactions and smart contract executions.

A Sybil attack is when a node in a network creates numerous fake identities to undermine the network's integrity and control.

Taproot is a Bitcoin blockchain upgrade that improves privacy, scalability, and efficiency by introducing Schnorr Signatures and streamlining complex transactions.

Technical analysis in crypto is the study of past market data, like price and volume, to predict future price movements and inform trading decisions.

A testnet is a blockchain network used for testing and development, allowing developers to experiment with new features and smart contracts without impacting the main network.

A crypto ticker is a unique combination of letters that identifies a specific cryptocurrency, akin to a digital shorthand for the asset's name used in trading and tracking.

A timestamp in blockchain is a secure digital record indicating the exact moment a block is mined and validated, essential for maintaining data integrity and chronological order of transactions.

'To the moon' refers to the belief that a cryptocurrency's value will significantly and rapidly increase.

Tokens are digital assets on a blockchain, representing value or utility, enabling ownership, access, and participation in decentralized networks and applications.

Tokenization is the process of converting real-world assets into digital tokens on a blockchain, allowing for secure, immutable, and fractional ownership and trade.

Tokenomics is the study of the economic principles and incentives that govern a cryptocurrency's creation, distribution, and overall management, which ultimately influence its market value.

Total supply of a cryptocurrency is the number of coins or tokens that currently exist, including both circulating and non-circulating ones, but excluding any that have been burned or destroyed.

Total Value Locked (TVL) is the cumulative value of all assets staked or locked in a DeFi protocol, indicating its liquidity and health.

TradFi, short for 'traditional finance,' refers to the conventional financial system that operates through centralized institutions such as banks and stock markets, which are regulated by government authorities.

A trading bot is a software program that automates the buying and selling of cryptocurrencies based on predetermined strategies, enabling traders to operate in the market continuously without the need for constant monitoring.

Trading volume in crypto is the total amount of a cryptocurrency traded within a specific time period, reflecting market activity and liquidity.

A transaction fee is a charge for processing transactions on a blockchain or exchange, varying with network activity and providing incentives for miners.

Transactions Per Second (TPS) is the number of transactions a blockchain network can process in one second, indicating its speed and scalability.

Turing Complete refers to a system's ability to perform any calculation given enough resources, akin to a theoretical Turing machine capable of solving any problem with the right code and instructions.

An unconfirmed transaction is a blockchain transfer awaiting validation, not yet recorded on the ledger, often due to factors like network congestion or low fees.

An Unspent Transaction Output (UTXO) is the remaining portion of cryptocurrency that has not been spent after a transaction is completed.

A utility token is a cryptocurrency that provides users with access to services or features within a specific blockchain ecosystem, without representing ownership or investment.

Vesting in cryptocurrency refers to the process of locking tokens for a period, releasing them based on specific conditions to ensure market stability and reward investor loyalty.

A vesting period in crypto is a set time during which tokens or assets are locked and released gradually to prevent immediate selling and encourage long-term investment.

Volatility in cryptocurrency refers to the extent of price changes an asset undergoes, indicating its stability and investment risk level.

Volume in cryptocurrency denotes the quantity of a particular digital asset traded within a set period, reflecting market activity and liquidity.

WAGMI, meaning 'We're All Gonna Make It,' is a term of solidarity and confidence among crypto enthusiasts, often used to express a collective belief in the success of the crypto market.

A digital file that holds coins and tokens held by the owner. The wallet also has a blockchain address to which transactions can be sent.

A digital tool that allows users to store, send, and receive cryptocurrencies. Wallets can be software-based, like mobile or desktop applications, or hardware-based for added security.

A wallet address is a unique string of characters that functions as a destination for sending or receiving digital assets on a blockchain, comparable to a postal address for digital currency.

A wallet in cryptocurrency is a digital tool that stores your private and public keys, allowing you to perform transactions like sending and receiving digital assets, while also monitoring your balance. It's a reflection of your activity on the blockchain rather than a storage of the assets themselves.

Wash trading is a deceptive practice where an investor artificially inflates an asset's trading volume and price by repeatedly buying and selling it to themselves.

The term 'weak hands' refers to an investor with low risk tolerance who is prone to sell their assets swiftly due to market volatility or decline in value, often influenced by emotion rather than strategic planning.

Web 1.0, the first iteration of the internet from the 1990s to early 2000s, featured static, text-heavy, and non-interactive websites, creating a read-only environment for users.

A wallet address is a distinctive alphanumeric string that facilitates the sending and receiving of cryptocurrencies within the blockchain network—your secure gateway to digital asset transactions.

A whitepaper in cryptocurrency is a foundational document that outlines a project's technical and economic details, serving as a guide for potential users and investors to understand its objectives, tokenomics, use cases, and development roadmap.

Wrapped Ether (WETH) is an ERC-20 token that represents Ether on a 1:1 basis, enabling Ether's use in decentralized finance by ensuring compatibility with ERC-20 standards and simplifying transactions.

Year to date (YTD) is the period from the start of the current calendar or fiscal year to the present day, used to measure an asset's performance during this time.

Yield farming is the practice of staking or lending cryptocurrency assets in a DeFi protocol to earn interest or rewards, incentivizing liquidity provision.

A zero confirmation transaction is a transaction that has been sent to the network but not yet included in a block, leaving it unverified and at risk of being double-spent or dropped.

Zero-knowledge proof (ZKP) is a cryptographic method that allows one party to prove the truth of a claim without revealing any underlying information, ensuring privacy and security in transactions.

Zk-SNARKs are cryptographic tools that enable someone to prove the truth of information without revealing the information itself, essential for privacy in blockchain transactions.