The most comprehensive crypto glossary out there.
Understand Web 3.0 from the inside out.
In the Ethereum blockchain, 0x protocol provides an open standard for decentralized exchanges (DEXs). It allows developers to integrate peer-to-peer exchange of digital assets into platforms and apps.
An automated market maker (AMM) that operates as a decentralized exchange (DEX). 1inch consists of a number of liquidity pools where users can deposit their tokens into these pools through a process called “liquidity mining”. The operating principles of 1inch are similar to that of the ubiquitous Uniswap (UNI) protocol.
People who own 21 bitcoins automatically become the participants of 21 Club. The name of the club comes from the number of Bitcoins that could be mined - 21 million coins. If you own 21 Bitcoin, this means you are one of a million.
Two-factor authentication, or 2FA (TFA), stands for multi-factor authentication requiring a password, username, and a piece of information only you know. In other words, this is a security layer allowing you to access a website or an app only if you present two or more pieces of evidence to an authentication mechanism.
Kind of attack, occurring when a person or a group of people get control of over 50% of a blockchain’s hashing power.
A decentralized lending and borrowing platform that operates autonomously on the Ethereum blockchain, in addition to the Polygon and Avalanche networks. Aave users can take out loans by providing cryptocurrency collateral. Aave is the pioneer of “flash loans” in the blockchain world, which allows for the uncollateralized lending of assets.
In economics, it refers to the idea that one party has an advantage over another in terms of producing/providing a specific good or service.
Place where you can manage the assets you buy, and track the financial activities.
Calculated by multiplying the closing price of a specific period with volume, the indicator shows the supply/demand level for a stock/asset/cryptocurrency.
Buying and selling assets frequently, taking advantage of seemingly good market opportunities that occur. The strategy also refers to the trading of financial assets by fund managers or brokers in order to take advantage of bull and bear markets.
Latin phrase meaning “for this purpose.” Ad hoc refers to a solution found for a particular problem or issue that should not be considered a standard solution for future use.
A string of letters and numbers to which you can send funds and on which you can receive them. You need it if you want, for example, to send bitcoin.
A slang term for an address, much like a crypto wallet address. Not to be confused with the Adamant (ADDY) token.
A private key that enables users to control money contained in smart contracts in a DApp. While the beauty of blockchains is their decentralization and self-control, DApps are developed via smart contracts that are developed and deployed by developers.
The illustration of the stages in which technological innovation is adopted in a market. Different segments of a market adopt a new product or technology at different stages and for different reasons across a range of markets.
ADX (Average Directional Index)
Tool for assessing the comprehensive strength of a trend. Whenever the market moves in the direction of a strong trend, trading increases the chances of profit and lowers the risk by a considerable margin.
The method of securing computers by preventing them from connecting to the internet or to any other open network.
Air-gaps prevent data from being infected or corrupted because the data cannot be accessed.
Distributing cryptocurrency tokens for free to a large number of wallet addresses. The purpose of an airdrop is usually to increase awareness regarding the coin or token that is being distributed, as well as to diversify the number of holders of that asset.
AISP (Account Information Service Provider)
Provider that gives third parties access to customers' accounts with the customers' permission. AISPs allow access to financial information from accounts held with other financial institutions. An AISP licensee acts as the go-between for multiple institutions.
A set of steps that defines a sequence of actions. A computer algorithm is a sequence of instructions that conduct computer programs to perform a number of different tasks.
Measure of the performance of an investment against an index or benchmark that is thought to represent the market's overall movements. Alpha is the excess return an investment generates over the return on a benchmark index.
A phase in the crypto market cycle when altcoins outperform bitcoin. Named after the 2017 bitcoin bull run when altcoin prices soared.
Describes cryptocurrencies other than Bitcoin. Alternative coins are also referred to as "tokens" rather than coins because they are digital assets.
AMA (ask me anything)
A live communication or Q&A session with a community. Coined from the r/ama subreddit. During the session, participants ask questions and get answers from the host.
AML (anti-money laundering)
Refers to the laws and regulations aimed at preventing money frauds and scams. The AML laws are designed to prevent criminals from committing financial crimes on legitimate platforms and exchanges. By implementing AML processes (along with KYC reporting), reputable crypto exchanges can stop fraud, money laundering, and market manipulation and report findings to the proper law enforcement agencies.
AMM (automated market maker)
AMM is the underlying protocol that relies on a specific mathematical formula to price assets. AMM is usually used by decentralized exchanges (DEXs) to replace traditional order books with liquidity pools. AMM allows DEXs to eliminate the need for centralized intermediaries. Some DEXs use a hybrid system, where AMM and order books are used simultaneously.
An ape is someone who buys a cryptocurrency right after the launch of a token project. Apes perform little to no research and due diligence before the purchase, and their purchase is motivated by a fear of missing out.
API (application programming interface)
Refers to a code that facilitates the exchange of information between two applications. APIs are software intermediaries that allow for dynamic communication across different networks and platforms.
APR (Annual Percentage Rate)
The interest rate charged by investors and paid by borrowers in a given year. An annual percentage rate represents the real cost of funds over a loan or investment term.
APY (annual percentage yield)
The percentage of annual compounding return on an investment or a savings deposit.
An asset that is bought in a market and then sold in another market for a higher price in order to make a profit.
A method for identifying trends in financial markets, identifying changes and corrective retracements, and gauging their strength.
ASIC (application-specific integrated circuit)
An integrated circuit that is designed for specific usage, as opposed to general-purpose circuitry, such as the CPUs that run our computers and mobile devices.
The price that a seller is willing to sell their asset on an exchange. When a trader places a market order, the highest bid and the lowest asking price in the exchange's order book are filled first. This means a market sell order matches with the highest bid, while a market buy order matches with the lowest asking price in the exchange.
An item of monetary value that can be owned and purchased. An asset is anything owned by a business, whether tangible or intangible.
Managing of assets owned by individuals or businesses. Both physical goods (such as a house, a car, or an apartment) and non-physical assets (such as copyrights, patents, cryptocurrencies) can be used to represent these assets.
Digital claims backed by a physical asset. Almost anything can be tokenized, including gold, crude oil, real estate, and equity. The value of an asset-backed token is directly influenced by the value of the underlying asset.
The process of sending a message encrypted for specific recipients in such a way that anyone can confirm the sender's authenticity, but only the intended recipient can see the contents.
Events in electronic systems that occur at different times, at different speeds, or that are independent of the main program flow.
ATH (all-time high)
The highest price is achieved by cryptocurrency in a quote currency (USD, BTC, ETH). In other words, it is the maximum price that one could have sold the particular asset for, as well as the maximum price that another trader would have been willing to pay, during that period.
Exchange-based smart contracts that automate the trade of cryptocurrencies across different blockchains.
A concept in software development that considers all possible points, avenues, or vulnerabilities in a system. The attack surface of a system is an indication of its security.
A live event during which assets are negotiated through a bidding process led by an auctioneer. A starting bid will be pitched to the audience when the auctioneer presents the item at the auction.
A balance of coins or tokens that a person is holding. The term is typically used to describe a specific cryptocurrency holding that is in significant amount of loss.
An investor who continues to invest in a cryptocurrency regardless of its performance. There are a number of reasons for this, the simplest being that the investor believes he will gain more in the long term than he will lose in the short term. It is also possible that they have fallen victim to the sunk cost fallacy.
Process by which Tezos appends new transaction blocks to its blockchain. With this delegated proof-of-stake system, bakers are rewarded for every block that is baked.
The amount of data processed on a network per second in megabytes or gigabytes. In a network with a bandwidth limit, data flows become insufficient to manage the volume, and connections slow down.
An alternative full node Bitcoin Cash implementation written in Golang.
BDoS (Blockchain denial of service)
A BDoS attack targets the blockchain’s consensus mechanism design. By slowing down or stopping mining rewards altogether, BDoS aims to discourage miners from the specific blockchain.
A metaphor for someone with pessimism towards a market. The metaphor originates from the direction a bear attacks, which is a downward swipe with the claws. A bear anticipates a downtrend in the market.
A bear market takes place when prices are dropping. During bear markets, people exit their positions en masse, waiting for the market to stabilize before reinvesting. In the sphere, the volatility can lead to dramatic downward spirals in prices.
A bearwhale is a crypto rich individual who believes the crypto markets will fail or fall. Could also refer to BearWhale, a Reddit user who advocated for Bitcoin’s SegWit upgrade in 2017.
An indicator that can be used to gauge the performance of an asset or investment portfolio. Indexes are one of the important kinds of benchmark since they represent a collection of market prices or a collection of data points.
BEP (break-even point)
The point where total costs and total revenues are equal. As such, there are no profits or losses — all expenses are paid. In more precise terms, the BEP is the amount of sales required to cover the total costs (fixed and variable).
Beta (beta coefficient)
The beta coefficient measures a particular asset's volatility relative to the fluctuations of a market or portfolio in general. Beta can be used to evaluate the risk of an investment in correlation to a benchmark, which is usually represented by a broad market index or by a specific portfolio.
Usually occurs after the alpha stage in a software development cycle. The beta testing phase occurs after the software already has all the major features and functions working, but its efficiency, usability, and security need to be improved.
The price one is willing to pay for a security, an asset, a commodity, a service, or a contract. In the context of financial markets, it refers to the price a buyer is willing to offer for a security, commodity, or cryptocurrency.
The difference between the highest price that a buyer is willing to pay and the lowest price that a seller will accept for an asset.
A symbolic representation of text, computer processor commands, or other types of information. In essence, it consists of a series of 0s and 1s that have been organized and structured so they can be received and processed by a larger computer application.
BIP (Bitcoin improvement proposal)
A document that proposes changes to the Bitcoin network in standard format. Inspired by the Python language proposal system, the first BIP was released in 2011.
BIS (Bank for International Settlements)
A global financial institution that promotes monetary stability. Since it provides banking services to institutions like the European Central Bank and the Federal Reserve, the BIS is often called the central bank for central banks.
In computing, a basic unit of information. A bit represents a logical state with one of two possible values and is a contraction of the binary digit. Only 0 and 1 are valid.
Digital money that runs on a distributed computer network (nodes). Bitcoin is also a phrase used to refer to a number of different things: the digital currency, decentralized public ledger, protocol, or the entire ecosystem.
Bitcoin ATM (BTM)
ATMs or cash points that allow you to buy and sell bitcoins. Bidirectional BATMs offer both buy and sell functionality, whereas unidirectional ATMs only offer buying options.
A community-driven open source code software that enables users to interact with the Bitcoin network. Developers from all over the world are responsible for updating and reviewing the code.
Bitcoin dominance is the ratio between bitcoin's market capitalization and that of all other cryptocurrencies, stablecoins, and tokens.
A famous story of a Florida bitcoin holder who purchased pizza with two bitcoins in 2010. This transaction is regarded as the first official use of bitcoin to purchase physical goods. Also used as an argument for HODL.
Bitcoin-NG (Bitcoin next generation)
A proposed implementation to fix Bitcoin’s scalability and TPS problem brought forth by several Ethereum blockchain contenders in 2017 and 2018.
Black swan event
An event that comes as a surprise and has significant consequences. Statistician and trader Nassim Nicholas Taleb developed the Black Swan theory.
Contains information about transactions in computer files. Blockchain refers to an endless chain of blocks that form a linear sequence.
An analytical tool that provides detailed information about a blockchain network since its first block. Users can use a block explorer to find information about individual blocks, public addresses, and transactions associated with a specific cryptocurrency through search engines and browsers.
Section of a block that summarizes the rest of the block. It is composed of all the block metadata, such as when a block was mined, the Merkle root of the included transactions, and the nonce.
The block height of a particular block is defined as the number of blocks preceding it in the blockchain.
Miner's reward for validating a new block. Besides the block subsidy, the block reward also includes the transaction fees.
Data records in digital form that are ever-growing. There are many blocks of data in such a list, all of which are arranged chronologically and are linked together with cryptographic proof.
There are two types of block size: bytes, and transactions. Bytes is simply the size of the block in bytes. Transactions largely determine block size.
Data structure that allows the user to find out if a particular item is in a set. Even if it cannot say for certain whether an element is in the set, it can say for sure if it is not.
A technical analysis tool that plots a set of trendlines very close to a simple moving average (SMA) of a security's price but can be adjusted to suit the user's preferences.
Mathematical concept that describes the relationship between the price and the supply of an asset. Bonding curves derive from the idea that when a person purchases a limited amount of an asset (such as Bitcoin), subsequent buyers will have to pay a little more for it.
Automated software for performing cryptocurrency trades. With high-frequency trading (HFT) software, trading bots have reached a zenith with many years of use on stock markets. Most advanced robots can analyze multiple markets at once, and automatically buy or sell based on changes in real-time.
A mining algorithm that requires 13 GB of RAM, making it nearly impossible to mine using zombie computers (botnet controlled).
Describes a reward placed by a group or individual to encourage certain behavior, work, or development. For example, referral programs may be considered a bounty.
Value by which the current price of a coin or asset needs to be multiplied by to reach its Breakeven Point (BEP). The Breakeven Point is the initial acquisition cost paid by a trader or investor (including trading fees).
In technical analysis, a breakout refers to a price movement above or below a resistance area. If the price of the asset breaks out, it may trend in the direction of the breakout.
Tools, companies, or projects that facilitate the transfer of tokens between blockchains. However, these bridges are always subject to trade-offs. They are usually centralized.
This term refers to buying a digital currency that has fallen in value when a trader tells others to do so.
Occurs when the price of an asset exceeds its intrinsic value. Generally, it means that one coin's price is much higher than its "real" value. Crypto skeptics think most cryptocurrencies have a real value of zero.
Rewards offered for identifying software vulnerabilities. Cryptocurrency businesses like protocol developers, exchanges, and wallet operators sometimes offer bug bounties. Bounty schemes are like friendly competitions among hackers.
Term that calls for building and contributing to the blockchain and cryptocurrency ecosystem, instead of passively holding coins.
Build and dump
In the era of "build and dump" that has arisen with BSC, meme coin investment is a game for early birds and project creators.
A metaphor for someone with optimism towards a market. The metaphor originates from the direction a bull attacks, which is an upward thrust with the horns. A bull anticipates a rise in the market.
A market with a positive price trend. A bull market occurs when prices rise, accompanied by a strong market uptrend.
A market condition when share/coin prices rise steadily. A bull run is characterized by sustained price increases.
By using bulletproofs, cryptographic proofs can be reduced to a fraction of their current size. In the next PIVX privacy protocol, its integration will be considered.
A built-in mechanism where the team behind a particular cryptocurrency asset removes tokens from the available supply, decreasing the number of tokens in circulation. This is typically done to stabilize token price.
One of the most popular programming languages today. C programming language extension allowing cross-platform development.
A block that is being mined by a mining node (miner) to receive the block reward. Candidate blocks can therefore be described as temporary blocks that will either be validated or discarded by the network.
A graph showing changes in price over time. There are four points of information available on each candle: the opening price, the closing price, the high, and the low.
Capital refers to a type of asset that can be quickly invested or utilized to improve future value. This can be cash, near-cash investments, equipment, property, and/or skills being used to make money.
A blockchain with a proof of stake consensus mechanism and smart contract functionality. Cardano is known for its high transactions per second throughput and an energy-efficient “Ouroboros” consensus. The native token of the Cardano network is ADA, which is used to pay for transactions and for the execution of smart contracts on the platform.
Money in the form of physical coins and banknotes. These may include bank accounts and government securities.
Language for developing smart contracts on the Bitcoin Cash (BCH) network.
A combination of CeFi and DeFi. Combines traditional centralized finance with decentralized applications, blending traditional regulations with modern finance.
CeFi (centralized finance)
CeFi is short for centralized finance, and was coined during the development of DeFi. It is mainly used to explain blockchain or crypto projects that are not truly or completely decentralized. It is the opposite of DeFi.
A feature of decentralized cryptocurrency networks like Bitcoin. Decentralized projects like Bitcoin are public, distributed, and do not belong to any nation, company, or individual. As long as a party follows the network protocol, they can transact on the network.
Controls and manages the monetary policy of a nation. By issuing fiat currency, it manages a country's money supply (and sets interest rates). Central banks provide monetary policy to maintain price stability.
The top-down delegation of authority and power within an organization or a network. As a result of centralization, a system's planning and decision-making mechanisms are concentrated in a single area. Centralized organizations are operated by a single person or group of people.
CEX (centralized exchange)
A platform where trades are conducted and overseen by a middleman who handles the assets. In a centralized exchange, you can exchange one coin for another without the transfer taking place directly between you and the other party. A CEX handles the trade for you.
CFTC (Commodity Futures Trading Commission)
A U.S. agency responsible for overseeing and regulating the derivatives markets, which include options, swaps, and futures contracts. Established in 1974, it took over the responsibilities of its predecessor, the Commodity Exchange Authority (CEA).
A breach of the digital recordings, called blockchain, created by computers using cryptocurrencies.
The process of encrypting or decrypting a text message by following a series of defined instructions. Encryption is the process of converting clear information into an unreadable form.
Coins or tokens on the market that are publicly available and circulating. Cryptocurrencies can have an increasing or decreasing supply over time. According to the Bitcoin protocol, the maximum number of bitcoins will be 21 million before the circulating supply increases.
Also known as proprietary software or code. Closed source is not available to the general public and is distributed with private modifications, copying, and republishing restrictions to authorized users under a licensing agreement.
Resources made available via the internet to multiple users. The resources include data storage, computing power, and different types of services, applications, networks, and servers.
Using computing hardware to secure the operations of a blockchain in return for rewards paid out in newly created coins by the network.
Digital money or cryptocurrency that is independent of any blockchain or platform. Coins serve as currencies, and the term can also be used to describe cryptocurrency assets that aren't tokens.
A software service that breaks down funds into smaller sets and mixes it with other transactions. Used to make it difficult for third-parties to trace and track transactions. Since they are used by money launderers and tax dodgers, coin mixers have been banned by centralized exchanges (for interfering with KYC/AML policies and procedures).
Wallets that are not connected to the internet, such as hardware non-custodial wallets, USBs, or paper wallets.
Cryptocurrency wallets that are disconnected from the internet or other unsecure networks when they are not in use. A hot wallet is a software wallet stored on the desktop of a user, which can be accessed through a web interface or accessed from a service provider's servers, but with an additional layer of security.
A borrower’s pledge to the lender that is used to secure the repayment of a loan. If a borrower takes out a loan, they may put their car up as collateral. In the event of a default, the vehicle serves as a safeguard or warranty.
A common facility where multiple individuals and companies can store their IT equipment and specialized hardware. Colocation refers to a dedicated space inside a stock exchange's data center for high-frequency trading (HFT).
Before the rise of stablecoins, colored coins were designed to improve the functionality of the Bitcoin blockchain. Colored coins were tokens representing real world assets like house deeds, stocks, precious metals, and intellectual property on the blockchain.
Costs associated with executing scripts or smart contracts.
Using confidential transactions, senders can encrypt bitcoin amounts in transactions with random strings of numbers known as "blinding factors."
An elapsed period of time between when a blockchain transaction is submitted to the network and when it is finally added to a confirmed block. Essentially, it represents the amount of time the user has to wait until the transaction is collected and confirmed by a miner node.
In a blockchain, consensus occurs when all the participants agree on the order and content of the blocks. An organization with centralized authority makes all decisions. To record all economic transactions that a company engages in, all companies use a centralized accounting ledger.
A network in which members who can participate in the consensus mechanism have been pre-selected. As a type of blockchain, this type is considered partially decentralized to the extent that the identities of the miners are known, and have the option of whether to publicly disclose transactions.
A core wallet has the ability to contain the entire blockchain instead of just a piece of it, and allows users to both receive, store and send digital money, alongside the program or with it.For example, Bitcoin transactions are kept on a digital ledger known as a blockchain which is maintained by a multitude of computers across the globe.
CPI (Consumer Price Index)
Number of assets whose price is tracked to gain insights into market segments. An index is an indicator of the performance of a stock, such as the S&P 500, the NASDAQ Composite, or the DJIA.
CPU (central processing unit)
A computer's electronic circuitry that interprets instructions from programs and executes basic operations according to those instructions. Calculations, logical operations, controlling operations, and input/output operations (I/O) are the basic operations.
When the market does not clearly move up or down. When it is neither a bear or bull market, it’s a crab market. The metaphor has to do with the crabwalk.
Information about an individual. This may include username, password, e-mail address, qualifications, etc.
Virtual currency that is secured by cryptography and used as a medium of exchange within a peer-to-peer (P2P) digital economic system. Cryptographic methods guarantee that these systems cannot be hacked or forged. The first cryptocurrency was Bitcoin.
Cryptocurrency pairs are essentially comparisons of two crypto assets. ETH/BTC is the most popular cryptocurrency pair. The Bitcoin value of one Ethereum token reflects in this cryptocurrency pair. Trading pairs measure how much of one token can be purchased with a given amount of a different token.
Science of keeping information hidden. The main objective of modern cryptography is to encrypt and decrypt data or to guarantee the integrity and authenticity of information through mathematical theories and computations.
Mining cryptocurrency on someone's computer without their permission.
Assets held on behalf of clients by some form of institution. An asset holder may find custodial services desirable, as they mitigate security risks like theft and loss.
DAC (decentralized autonomous cooperative)
Shareholder-controlled organization rather than one controlled by a central authority.
DAG (directed acyclic graph)
The signatures of earlier transactions are included in every new transaction. The inclusion of its parents results in the indirect confirmation of the parents of its parents, the parents of its parents, etc.
DAO (decentralized autonomous organization)
A set of hard-coded rules that determine actions taken by a decentralized organization. There is also the possibility that DAO refers specifically to an organization called "The DAO," which was created using the Ethereum blockchain back in 2016.
DApp (decentralized application)
An application or program that exists and runs on a blockchain network or peer-to-peer system, rather than on a single computer. The Ethereum platform is often used to develop DApps, which can be used for several purposes including gaming, finance, and social media.
Dark web platform that operates via private channels like Tor and I2P.
Responsible for handling sensitive data in the context of data protection and security. Data privacy and protection refers to the act of handling personal information by an individual or party who must adhere to all applicable privacy laws.
DAU (daily active users)
An indicator that measures the number of live users per day.
Making a profit off intraday changes in the price of an asset by frequently buying and selling it. To conduct the best trades possible, day traders utilize a variety of tools and techniques.
DCA (dollar cost averaging)
A regular investment strategy in which a fixed amount is invested at a regular interval (for example, $50 each week). Investing in this way reduces the impact of volatility on investments, and therefore reduces risk exposure.
Dead cat bounce
Refers to a brief rise in the price of a declining asset, followed by a continuation of its decline. The term is said to originate from the idea that even a dead cat will bounce after falling from a high height. It was popularized on Wall Street and applied to situations where you may see a small rebound after a big decline.
When an operator becomes incapacitated, this event triggers. The term originally referred to a physical switch that, when released, ceased a machine's operation.
Embedding control of a system in many equal locations that can act on a peer-to-peer basis.
A set of interdependent but distinct elements that interact with one another without the need for centralized power or servers. Communication between nodes is enabled without a central authority to monitor it, thus enabling the decentralization element.
Reversing an encryption process to make previously encrypted information visible or accessible. The process involves converting unreadable (ciphertext) data into readable (plaintext).
Parts of the world wide web that are hidden from search engines. Unlike Google, Bing, and DuckDuckGo, it does not index pages. Also known as the "hidden web" or the "invisible web," the deep web is the opposite of the "surface web."
DeFi (Decentralized Finance)
A collection of financial applications that are being developed on top of blockchain technology. As a movement, DeFi aims to create multiple types of financial products and services using decentralized networks and open source software.
When prices for goods and services are declining, the economy is in deflation. A deflationary cryptocurrency refers to the kind of cryptocurrency with a depreciating supply in coins through burning or halving events. As the number of coins issued decreases, the value rises.
A pejorative term used to describe degenerate gamblers. Frequently used to describe yield chasers in DeFi who buy unaudited projects.
The act of removing an asset from an exchange. There can be several reasons for this; it can be a request from the project's team or it could be a result of the asset's team or its own inability to meet the listing requirements provided by the exchange.
Security whose value is based on or derived from an underlying asset or group of assets, or a benchmark. Derivatives are contracts between two or more parties, and their prices are derived from changes in the underlying asset.
DEX (decentralized exchange)
An exchange that does not require users to deposit funds before they can trade, and doesn’t hold the user's funds. Trades are made directly from the user's wallet.
Ability to generate, store, as well as process data in two states, positive or negative. Positive information is expressed or represented using the number 1 while negative information is expressed or represented using the number 0. Digital data is transmitted or stored as a string of 1s or 0s.
Media and art created with digital technology. The Ethereum blockchain network, which is typically used by NFTs, has made digital art more valuable and desirable than ever. The cryptocurrency community has developed entire digital art marketplaces to sell digital memorabilia, including art and media.
Digital representations of valuable things. A distributed ledger can assist in verifying and registering this value by tokenizing it and resulting in tokens representing either full or partial ownership.
Decentralized ledgers that store data across a network of nodes. There are different types of distributed ledgers, including permissioned and private ledgers.
Indicator that shows the market price of an asset moving in the opposite direction of another piece of data. Investors and traders use divergence to determine if a market trend is weakening, which might lead to a consolidation period or a trend reversal.
DMM (dynamic market maker)
It is the primary market maker selected by the exchange for a particular security. DMMs maintain quotes and process purchase and sale transactions. Some market makers deal with several hundred listed stocks at once.
When a given amount of coins are spent more than once. Usually as a result of a race attack or a 51% attack.
DYOR (do your own research)
Reduces uninformed investment in cryptocurrencies. Researching and understanding a cryptocurrency before investing will enable them to answer why they are investing in that currency and supporting that project.
The computer that forms the connection between a user and another node.
EEA (Enterprise Ethereum Alliance)
The industry’s first global standards organization to deliver an open, standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum.
EIP (Ethereum Improvement Proposal)
Standards for the Ethereum platform, including the protocol specification, client APIs, and contract specifications.There are some types of EIPs: the Standard Track, core and networking.
It means "explain like I'm five." Based on a subreddit of the same name. A great way to learn concepts in crypto.
EMA (exponential moving average)
Technical indicator that emphasizes the recent price movement and data points of an asset/stock/cryptocurrency while keeping the older chart observations.
Technique used to trick users into thinking that a message came from a different person. Spoofing attacks involve sending emails with forged header information, which client software displays as the actual sender address. Most people take this at face value.
EMH (efficient market hypothesis)
EMH is an economic theory stating that the financial markets reflect all available information on the price of assets at any given time. When new info comes into the market it is automatically priced in, making technical analysis and fundamental analysis arbitrary.
New coins are launched and produced at a rapid rate. There are some cryptocurrencies that do not have a set issuance rate, so new units can be created upon request.
A block with one transaction: the coinbase reward that allocates 12.5 bitcoins to the miner. The community views empty blocks as a waste of resources, since those blocks could have contained multiple bitcoin transactions.
Transforming clear information into code so that it cannot be accessed by unauthorized parties. Encryption techniques are used by governments, businesses, and individuals to protect their personal information and prevent fraud.
In machine learning, an epoch is the complete execution of a data set through an algorithm. An epoch is a loop of the entire training dataset in an artificial neural network. In general, training a neural network takes a lot of time.
Mining algorithm used by ZCash, Horizen, Komodo, Pirate Chain, HUSH, Bitcoin Private, Commercium, and ZCoin.
Refers to the value of an asset after subtracting the value of liabilities attached to the asset.
Data is stored in multiple locations after it has been segmented, expanded, and encoded with redundant information. Erasure coding provides a safe storage solution. It is a form of data dispersal algorithm that helps to distribute data among multiple storage devices.
On the Ethereum blockchain, this is the standard used to issue and implement tokens. The standard specifies a common set of rules for tokens in the Ethereum ecosystem that should be followed.
On the Ethereum blockchain, this is the standard allowing to transfer tokens securely to digital wallets using smart contracts.
On the Ethereum blockchain, this is the standard used to issue and implement tokens. Tokens based on the ERC-721 standard are non-fungible, as opposed to those based on the ERC-20 standard.
The ERC-20 tradeable token standard provides a new way for token contracts to be interacted with while being backward compatible.
Standard ETH token that addresses the existing limitations of ERC 20 in particular when it comes to implementing calls in transfers and approvals.
Standard that makes it possible to create tradable ERC-20 tokens that are linked to the shares of a Delaware corporation.
Mineable token, inspired by 0xBTC.
Ethereum token protocol specifically designed for subscription-based transactions.
A financial instrument that entails the holding of assets or funds by a third party while a sale is finalized.
ETF (Exchange-Traded Fund)
ETFs are marketable securities that track an index, a commodity, bonds or a basket of assets, such as an index fund. Unlike mutual funds, ETFs trade on stock exchanges like common stocks.
A proof-of-work algorithm used to mine Ethereum and ETH-based cryptocurrencies. Ethash, a method for proof of work (PoW) mining used by Ethereum, is the foundation for the whole protocol.
Payment method used by Ethereum for its distribution application platform. Ether refers to the cryptocurrency that runs on Ethereum - the second-largest cryptocurrency on the planet. Ethereum is the blockchain platform.
Cryptographically signed instructions for initiating an Ethereum transaction. The simplest transaction is when one ETH account transfers funds to another.
EVM (Ethereum Virtual Machine)
A virtual machine that enables the execution of code exactly as intended. It is the runtime environment for smart contracts. Ethereum's entire operating structure is based on this virtual machine.
Trading platform for financial instruments, including cryptocurrencies, commodities, and securities. Alternatively, an exchange may operate on a digital platform or in a real-world facility.
When the creators/promoters of a cryptocurrency disappear with investors’ money after an ICO. Essentially, whales pump the price of coins while advertising and promoting, then dump them later.
Provides users with the option to opt-in to blocks of transactions with different validation rules.
FA (Fundamental Analysis)
The process by which investors and traders determine the intrinsic value of a business or asset primarily by evaluating qualitative and quantitative factors, including company management, reputation, industry health, market capitalization, and other economic factors. It determines whether or not the price of an asset is overvalued or undervalued using fundamental analysis.
When a trader enters a position expecting a price movement that ultimately does not materialize. Usually, a fakeout refers to a situation where the price goes in the opposite direction of the trade idea or signal. Fakeouts may also be defined as "fake breakouts," or false breakouts, in which price breaks out of a technical price structure, only to reverse shortly thereafter.
Buying assets that are rapidly declining in value. Such a prediction is usually based on the idea that the price will bottom out just before a Dead Cat Bounce or price reversal occurs.
Important trend indicating a future upward trend. Initially wide, it narrows as the price falls. The reaction highs and lows form a cone whose slope is downward as the price action converges.
Sport-specific cryptocurrency that allows its holders to participate in the governing activities and receive exclusive rewards and discounts.
FATF (Financial Action Task Force)
AML/CFT are global standards which are set to prevent money laundering and terrorist financing. In 1989, the G7 established the FATF.
FATF Travel Rule
The FATF Travel Rule (aka FATF Recommendation #16) is an international regulation designed to strengthen AML laws. Financial institutions and crypto firms are required to collect personal data on participants involved in transactions exceeding $1,000.
System for rewarding users with cryptocurrency when they accomplish certain tasks via a website or app.
The fees that crypto exchanges charge investors when they deposit or withdraw their money and execute trades.
Valid form of money that is typically supported by a government regulation declaring it legal tender. Fiat is derived from the Latin and refers to a government order, decree, or resolution.
Exchanges or other types of services that allow you to convert fiat money into cryptocurrency. You can convert fiat money into cryptocurrencies using an on-ramp.
An asset, token, or coin that is registered on a blockchain and linked to a government or bank-issued currency.
Fibonacci retracement level
Represents a set of key numbers (Fibonacci retracement levels) derived by considering two extremes of the ratios. Some of these are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
An assurance or guarantee that cryptocurrency transactions cannot be altered, reversed, canceled, or reversed after they have been performed. A blockchain's latency will have a significant impact on its finality rate.
Financial Crime Enforcement Network (FinCEN)
The U.S. Treasury's federal regulatory agency. As part of Egmont Group, an entity that promotes cooperation among international financial intelligence units (FIUs), FinCEN is the United States' Financial Intelligence Unit (FIU).
Describes how a country's tax rates and spending levels are adjusted. By defining how public funds are collected and used, they are in a position to monitor and ultimately influence the economy of a nation.
Usually at the mercy of whales who move the market up and down, someone who holds insignificant amounts of cryptocurrency.
Charlie Lee coined the term in early 2018 to describe when Litecoin (LTC) became the second most valuable cryptocurrency behind Bitcoin Cash (BCH).
This is a market condition where the price of an asset drops extremely quickly within a very brief period and then returns to previous levels within an equally short period.
A form of DeFi loan that is processed, acquired, and repaid within a short period of time without collateral.
Flash Loan Attack
Decentralized finance (DeFi) exploits are exploits where a smart contract designed to provide flash loans is hacked in order to siphon assets from a particular pool.
This may happen in the future when Ethereum's market capitalization surpasses Bitcoin's. However, this has never happened before.
FMA (first-mover advantage)
This refers to the advantage of being the first to enter an unexplored market or industry with a service or product. When you are the first to launch, you have the advantage of building brand recognition, market share, and consumer loyalty before other entities enter the space as competitors.
FOK (fill or kill order)
According to this concept, an order must be filled immediately and completely or it cannot be executed. As such, it is closely related to the "All or Nothing" (AON) order type, in which all orders must be filled or none at all.
Refers to the global market where currencies can be bought and sold. In terms of trading volume, the Forex market is undoubtedly the most liquid and largest financial market in the world.
During a fork, a chain splits into two versions, creating two blockchains that can run simultaneously. The blockchain network forks when two different versions of the network are created.
Source code of an open source program is used to create an entirely new program. The fork creates a new path for the software, splitting it into different versions.
Proving certain properties of cryptographic algorithms and blockchain mechanisms mathematically rigorously.
This is a brand new stablecoin form that partially is collateralized and partially is algorithmically stabilized. Fractional stablecoins are backed by two kinds of collateral: collateralized and algorithmically modified.
Decentralized method for creating bonds that utilizes Optimistic Rollups. The term fraud proof is used in the world of blockchain to describe a technical method that is critical to enabling on-chain scalability (such as by sharding and creating larger blocks) while simultaneously ensuring that on-chain data is available.
Queueing a transaction with knowledge of its future execution. On a blockchain platform, front running is typically done when a miner who knows about pending trades places an order to earn a profit from it.
A person who spreads false information motivated by fear, uncertainty, and doubt.
The computer that implements the entire rules of a blockchain network and validates all transactions and blocks on the blockchain.
Fully homomorphic encryption
A type of encryption scheme that allows computations to be performed on encrypted data. This allows computations to be performed on ciphertexts without requiring intermediate steps to be decrypted.
Fungible assets are interchangeable, which means they are indistinguishable from one another. If each unit of the asset class has the same validity and market value, then the asset class is fungible. In other words, a pound of pure gold is just as valuable as any other pound of pure gold, regardless of its shape.
Future contracts, or futures, bind traders to buy and sell assets at a certain price and date in the future. Hedgers and speculators use these instruments as a way to potentially anticipate the direction of price movements, either to hedge against risks or to profit from them.
Appraise the value of something. Profits, also called gains, are derived from selling an asset, whether physical or digital, for a higher price than it was originally purchased for.
Blockchain-based gaming is the newest innovation in the world of blockchain technology, as it eliminates the waiting time for confirmation of a block.
The process of creating a simplified interactive environment (a 'game') where researchers can model how people and entities are likely to respond to certain actions.
This term is an abbreviation of decentralized finance (DeFi) and gaming (gaming). This kind of game is also called play-to-earn (P2E). GameFi is based on blockchain technology, gaming, and a variety of decentralized financial solutions, such as non-fungible tokens (NFTs), yield farming, borrowing, and lending, and algorithmic stablecoins.
The fee for completing a transaction or executing a smart contract on the Ethereum Blockchain. It is used for allocating the resources of the EVM.
An Ethereum blockchain user's maximum price for sending a transaction, such as executing a smart contract, on the Ethereum blockchain.
A general way of describing approximate transaction fees on the Ethereum blockchain, the gas price refers to how much ETH (in a small unit called gwei) miners must receive to process transactions. Gwei is equivalent to 10-9 ETH or 0.000000001.
Term used to describe relatively unknown low-cap coins with vast potential or that are grossly undervalued. Potential gems are difficult to identify since they don't have any specific attributes aside from the fact that they will eventually pump.
General public license
Software that is free and copyleft licensed. Any person may use, read, copy, share, modify, and distribute a computer program or other work under this license.
Block 0 or Block 1 refers to the first block ever recorded on a blockchain network. Generally, genesis blocks are hardcoded into software since there is no prior block to reference.
Display 3D versions of street art and their associated geolocation. A number of famous street arts across the globe are associated with geographic coordinates through this concept.
The GoEthereum command-line interface allows developers to create and run Ethereum nodes, mine the cryptocurrency, and run smart contracts.
Hosting and development platform that allows users to upload their own files, documents, and computer code. GitHub lets registered users access, download, and even contribute to files and source code repositories uploaded by non-registered users.
A digital asset whose value is allegedly secured by gold's equivalent price. Generally, each gold-backed cryptocurrency defines a token as having an equivalent value of certain grams or troy ounces of gold, which means that this equivalent is deposited in the vaults or reserves of the company or a trusted custodian as collateralized assets.
An example of a chart pattern in which a shorter-term moving average (MA) crosses above a longer-term moving average. These crosses are usually bullish signals.
Mobile-based verification software that generates one-time codes based on your cell phone's timer.
Computers and other digital devices use this type of peer-to-peer (P2P) communication. The term was coined as a way to refer to the conventional form of gossip prevalent in social groups.
The process by which a set of transaction and block verification rules are designed, implemented, and enforced for a blockchain ecosystem. On-chain governance enables a decentralized community to update a blockchain by voting directly on-chain. Off-chain governance functions when core stakeholders give unanimous approval to perform updates and changes.
Tokens created by developers that give token holders a say in how the future of the protocol is shaped. Owners of governance tokens can influence project decisions, such as proposing or voting on new feature proposals or even changing the governance system itself.
Creating 3D images with this chip is efficient for mining cryptocurrencies.
Greater fool theory
Burton Malkiel first discussed the greater fool theory, which says that as an investor, you can buy stocks that are clearly overvalued and still make money. According to him, people are generally drawn to assets whose prices are rising because of biases in human behavior. This problem is exacerbated by the herd mentality, in which stories of immediate success by others tend to spur others to follow suit. A "greater fool" is always available to purchase an asset, the theory suggests.
The process of combining the computational resources of several individuals or entities to mine together. This can allow miners with less resources to maximize profits, share rewards, and mitigate security risks.
The ETH denomination in which gas is paid. 0.000000001 ETH is one Gwei.
The process of using computer software to access and manipulate another entity’s computer system or software without the user’s consent and authorization. The purpose of a hack is most usually ill-intentioned, such as stealing a user’s personal information, identification, and funds that are stored in the digital environment, or performing an action in the user’s computer system, browser, or any form of digital account, which would be harmful for the user.
A hacker is generally a malicious actor who utilizes their software coding skills to break into computer systems or networks to steal or modify data such as personal information, identification, and digital funds stored online.
In mineable cryptocurrencies, miners get rewarded in the form of new coins as a return for the resources they spend to validate transactions. Halving is the drop in these new coin rewards by 50%, which is aimed to reduce inflation in the network’s coin supply.
A hard cap is the maximum possible coin supply enforced by a cryptocurrency’s source code when it is first released. Due to this source code, it is not possible to ever create more coins than the hard cap limit.
A hard fork is an event on the blockchain, where a new blockchain spins off from the existing blockchain. A hard fork occurs when new rules are introduced on the original blockchain, which are not compatible with the blockchain’s original operating rules. This change forces participants to switch to the new blockchain in order to sustain their participation in the network.
A fixed currency rate that is applied to maintain a currency’s value against another currency. In the world of cryptocurrencies, a hard peg is most usually used for stablecoins, which keeps their value fixed against a national (fiat) currency like the US Dollar or the Euro, in an effort to facilitate cryptocurrency trading in a more practical fashion.
A non-custodial cryptocurrency wallet, which typically looks like a USB drive. You connect a hardware wallet to your computer in order to move funds in and out to exchanges or decentralized applications. A hardware wallet is regarded as the most secure way to store your cryptocurrency because it stays offline, unlike software or browser wallets.
The output for a mathematical function, which is a unique alphanumeric string with a fixed length. A hash verifies the authenticity of data in a block on the blockchain and confirms transactions.
Hashed timeclock contract
A special type of smart contract that operates on payment networks. Its most frequent use is in atomic swap transactions, where it acts as a virtual lock for funds and HashLocks are used to unlock those funds during an atomic swap transaction.
Hashes per second
The unit of measurement (h/s) for the hashrate on a Proof-of-Work blockchain network.
The processing power of a blockchain in a Proof-of-Work consensus mechanism. A hashrate is the number of hashes created per second and its most common unit of measurement is terahashes per second (TH/s). The hashrate of a blockchain determines the speed of mining and transaction processing.
Head and shoulders chart pattern
Head and shoulders is a pattern that forms on price charts, where the shape of the chart makes a left shoulder first, then a head, followed by a right shoulder. Head and shoulders formations typically constitute a trend reversal pattern, in which the price makes an absolute top and eventually reverses trend by crashing down from the right shoulder.
An initial coin offering (ICO) strategy where the fundraising blockchain team does not disclose the maximum fundraising goal.
Hierarchical-Deterministic (HD) Wallet
A cryptocurrency wallet that generates a new cryptographic key pair or address from an initial seed phrase every time a new deposit is made to the wallet. The purpose is to increase the security of a wallet by distributing the user's total cryptocurrency balance across many different keys.
Automated market trading strategy that deploys a set of algorithms to buy and sell a large quantity of cryptocurrency orders in fractions of seconds.
“Hodl” is originally a spelling mistake made by a user on BitcoinTalk, where the user actually meant to say they are “holding” Bitcoin. The misspelling evolved into a slang in the cryptocurrency community, which now means investors hold on to their cryptocurrency regardless of the price, and eventually became an acronym for “hold on for dear life.”
A peer-to-peer distributed platform to build decentralized applications. In contrast to similar cryptocurrency projects, Holochain does not use blockchain technology. Instead, each Holochain application creates its own peer-to-peer network between users.
Honest Geppetto attack
An attack in which a hacker runs a large number of nodes in a blockchain network for a sufficient period of time to gain the trust of other nodes. The hacker eventually takes their nodes offline which could disrupt the operation of the network and cause security breaches.
Adding more nodes to a blockchain network in order to increase its transaction per second capacity.
A cryptocurrency wallet that is connected to the internet. In a hot wallet, assets are stored and signed online, in contrast to a cold wallet.
A test used by the U.S. Securities and Exchange Commission (SEC) to determine whether an asset qualifies as a security. There are four elements to the Howey test. If the four elements are met, it is legally considered a security and is regulated as such.
A combination of both a public and a private blockchain. A hybrid blockchain typically involves a main public chain, supplemented by private side-chains that are connected to the main chain.
A consensus mechanism that uses both proof of work and proof of stake consensus mechanisms in the same blockchain network. The purpose of a hybrid PoW/PoS consensus is to synthesize the better security features of PoW networks with the governance and energy efficiency of PoS networks.
An umbrella project for popular open-source blockchains in order to bring their collaborative effort for distributed ledger development. While Bitcoin and Etherum operate on public, permissionless blockchains, the Hyperledger Foundation seeks to develop private and permissioned enterprise blockchains.
An automated buying or selling strategy carried out by institutional investment companies. The algorithm of an iceberg order divides a very order into smaller orders and executes them individually, so that the market price is not affected due to the size of the original order.
The core feature of any blockchain network. It describes the condition that data cannot be modified, reversed, or censored in the distributed ledger of a blockchain upon the execution of transactions in its network.
Temporary loss of funds in a liquidity pool due to price volatility. Impermanent loss equals how much more money an investor would have made if they just held on to their tokens and did not deposit the tokens into a liquidity pool.
In the money
The expression used when the market price is higher than the strike price in an options contract.
Infinite mint attack
A hacker mints an astronomical amount of token supply in the blockchain protocol, which increases the total supply to an unsustainable amount and debases the token’s value. Hackers dump all the newly minted tokens on the market and cause the price of the token to collapse.
Initial coin offering (ICO)
A crowdfunding event administered on the blockchain, which involves the creation and sale of a new token. The goal of selling a token is to raise capital for early-stage blockchain projects. Instead of selling equity to their participants, an ICO sells tokens that claim future utility in the product to be developed. It is the cryptocurrency equivalent of an Initial Public Offering (IPO).
Initial Dex offering (IDO)
A fundraising event that is administered by a decentralized cryptocurrency exchange (DEX), instead of a crowdfunding event directly held on a blockchain platform. When launching a new cryptocurrency or token project, many teams prefer IDOs to ICOs because IDOs offer reaching potential investors through a more secure and reputable platform. A token sale through a DEX also offers immediate liquidity and trading activity from day one.
Initial exchange offering (IEO)
A fundraising event that is administered by a centralized cryptocurrency exchange, instead of a direct crowdfunding event in an Initial Coin Offering (ICO). An IEO allows project teams to launch their new cryptocurrency or token project on a time-tested exchange platform, which increases their chances to receive funding from a broader and a more professional investor clientele.
Initial farm offering (IFO)
A fundraising tool that allows new DeFi projects to raise capital by yield farming in decentralized exchanges (DEX). Investors in return receive the new project’s tokens for committing liquidity in the DEX.
Initial public offering (IPO)
Selling shares of a private company on the stock market for the first time. An IPO turns a private company into a publicly-traded entity by offering shares that represent a fraction of ownership in the company.
A person or a group of people possessing non-public and critical information about a company and trading the company’s shares by using that information to their advantage. Insider trading is an illegal activity.
A network that allows traders to exchange digital assets in real-time all around the world.
A company or any other legal entity that trades their clients’ funds in the market on behalf of them. Hedge funds, pension funds, and commercial banks are some of the prominent institutional investors in the investing ecosystem.
Intercontinental exchange (ICE)
The exchange that connects global exchanges, which facilitate their operations by providing them financial data, technological data, and listings services. The ICE operates and owns a large number of exchanges for financial, derivatives, and commodity markets around the world.
Interest bearing asset
An asset that generates an interest income for its holder. In the cryptocurrency world, Interest bearing assets are collectively offered under the decentralized finance (DeFi) products.
The rate at which an individual or institution earns or pays money over a specific amount of lent or borrowed capital during a specific period. An interest rate is generally expressed in annual percentage terms in terms of its cost.
Internet Computer Protocol (ICP)
The name of the blockchain in the DFINITY project. ICP is a competitor to Ethereum, Cardano, Solana, and Polkadot, which claims it can process transactions at web speed while being infinitely scalable.
A humorous image, video or a short text that gets viral on social media usually in a short period of time. Memes are usually satirical, which tend to mock something that a community commonly experiences.
Internet of things (IoT)
Physical devices that are connected to each other via the internet. IoT-compatible devices include home appliances, media systems, and security systems, which communicate with each other to execute collective functionalities.
The ability to make direct transactions across different blockchain networks, such as sending cryptocurrency coins and tokens.
InterPlanetary File System (IPFS)
A distributed, peer-to-peer network to store and transfer data. Used by Filecoin.
The value of an asset that is calculated by financial modeling, as opposed to its market price.
A form of margin trading that allows the trader to limit capital losses by setting a margin limit (isolated margin) for each trade position. In that case, if the position is liquidated, the maximum amount that can get liquidated will be the isolated margin amount.
A general purpose programming language used to develop client-server web applications.
Java virtual machine (JVM)
A type of virtual machine that translates Java programming language into machine code so that codes can be processed by the operating system.
A programming language that is used to develop web applications.
Creator of the Bollinger Bands indicator in technical analysis. Bollinger bands have a high and a low price point on a price chart with a middle price line between the two. Bollinger bands are used to measure an asset’s volatility at a given time and can indicate whether the asset is overbought or oversold.
A cross-chain decentralized finance (DeFi) lending platform that allows users to borrow USDX stablecoins and deposit a variety of cryptocurrencies to earn a yield. Kava is built on the Cosmos blockchain.
A string of bits used in an encryption algorithm in order to convert an encrypted text into its original form. Keys are most usually a long and random sequence of numbers and letters.
A malicious software program that records the keystrokes of a user as they input something through their keyboard on a computer or a mobile device. The purpose of keyloggers is to steal sensitive user information such as passwords, pin numbers, and other confidential data in order to hack into a bank account, a crypto wallet, or a computer network.
The price difference of Bitcoin between South Korean cryptocurrency exchanges and global exchanges.
A testnet blockchain for Polkadot, which allows developers to experiment new applications or blockchains before launching them on the Polkadot blockchain. Kusama acts as a testbed for developers looking to test pre-launch versions of Polkadot projects, albeit with real cryptocurrency transactions.
A DeFi protocol that runs on the Ethereum blockchain and aggregates token liquidity from across the Ethereum ecosystem without an intermediary. Fees are paid with the Kyber Network Crystal (KNC).
KYC (know your customer)
A compliance process mandated by regulators, for which businesses must verify the identity and risk level of their customers. The process requires all types of customers to provide official identity verification using a state-issued ID.
A shorthand slang for the exotic car, Lamborghini, which has been the dream car of the crypto community that they aspire to buy if and when their digital assets rise exponentially in the future.
Class of cryptocurrencies that have a market capitalization value of over $10 billion.
The time elapsed between submitting a transaction to a network and the execution of that transaction. In trading, it refers to the time elapsed between the placement of an order and the execution of that order.
A layer that runs beneath the main blockchain network. Layer 0 is the first layer in a blockchain, thus constituting the backbone of the entire ecosystem.
A main blockchain network such as Bitcoin, Ethereum, Cardano, or Solana, which contains a set of solutions over the layer 0 base protocol.
A blockchain scaling protocol that integrates on top of Layer 1 blockchains as a separate side-chain. Layer 2 protocols enable a much higher transaction throughput, which significantly drives down transaction fees in a blockchain network. The most important examples of Layer 2 chains are Bitcoin's Lightning Network and the Polygon Network that runs on top of Ethereum.
A digital record of financial transactions that cannot be altered. Blockchains are in practice distributed ledgers.
Borrowing money to fund an investment. In trading, a trader uses leverage, in other words borrows money from an exchange, to open far larger positions than their capital allows, which could be as high as 100x of their capital.
A Layer-2 scaling protocol that operates on top of the Bitcoin blockchain. The Lightning Network takes transactions off the main blockchain, records them as one transaction on a side-chain, and then executes them on the main chain as a single transaction. This in return drops transaction times and fees significantly.
A type of order placed in an exchange to buy or sell an asset when it reaches a specified price. If a trader places a limit buy order, it would typically be a lower price than the current market price, and if they place a limit sell order, it would typically be higher than the market price.
A blockchain layer that allows blockchains to securely interact with external/off-chain data feeds, events and payment methods to facilitate a digital agreement between the interacting parties. LINK is the native token of Chainlink platform's decentralized network of oracles.
A market with high liquidity. Liquidity is the ability to buy or sell an asset instantaneously at current market prices.
Conversion of a leveraged trade position to cash or its equivalents like stablecoins, due to losing the entirety of a trader’s capital so that there will not be a loss in the borrowed funds.
The ease with which an asset can be bought or sold without impacting its price during the process. The more liquid an asset is, the easier it is to buy or sell it at the current market prices.
A protocol that accumulates liquidity from different centralized and decentralized exchanges, in order to increase asset liquidity and reduce price slippage when trading in its platform.
A protocol which enables participants to supply their cryptocurrency into liquidity pools and get rewarded as a return with fees and tokens, based on their share in the pool’s total liquidity. Liquidity pools consist of cryptocurrency pairs or token pairs.
A crowdsourced pool of cryptocurrencies or tokens, which facilitates trading between the currency pairs of those assets in the pool.
A compensation offered to investors to invest in assets with poor liquidity, or when the liquidity of a liquid asset drops substantially.
A user who deposits tokens into a liquidity pool, which supplies liquidity for the pool. In return for taking this risk, the user is typically awarded with liquidity provider (LP) tokens.
Liquidity provider tokens (LP)
A token that is created and awarded to liquidity providers. LP tokens represent the share of the liquidity pool that a liquidity provider owns.
A cryptocurrency created in 2011 by forking Bitcoin's source code. Litecoin was aimed to be an improved version of Bitcoin with faster transaction processing and lower network fees. Litecoin is considered to be the first “altcoin” of the cryptocurrency market.
Loan-to-value ratio (LTV)
The ratio of a financial loan to the value of collateral that is given against the loan.
Exposure to a financial asset, where an investor or a trader profits by increases in the asset’s market price.
LPoS (liquid proof of stake)
A consensus mechanism derived from the concept of liquid democracy. Liquid democracy is a direct form of democracy, where participants can vote directly on issues or assign delegates to vote on their behalf.
An independent blockchain that operates in its own network with its own technology and protocol. Layer-1 blockchains constitute the typical mainnets, like Bitcoin and Ethereum.
The governance token of MakerDAO, which is a decentralized finance (DeFi) platform running on the Ethereum blockchain. The MKR governance token allows participants and investors to vote on proposals, which typically involve adding new collateral assets into the platform and updating the platform’s existing protocols.
Maker Protocol (MakerDAO)
A decentralized finance (DeFi) platform that operates on the Ethereum blockchain. MakerDAO facilitates collateral-backed cryptocurrency loans without an intermediary. The platform also issues Dai, a stablecoin pegged to the value of the US Dollar, which is used as the digital representation of the US Dollar in USD-denominated loans and collaterals.
Any type of malicious, ill-intentioned software that is designed to damage computers and networks, and steal personal data and funds.
The native currency of the Decentraland metaverse platform. MANA can be used to buy virtual plots of land in the Decentraland universe, as well as in-game goods and services.
A communication received from a trader’s broker when the value of their margin account falls below the exchange's required minimum amount. A trader can receive a message or a call from the broker or the exchange, by which they are demanded to deposit additional funds to restore their margin account to the minimum required value or face liquidation.
Trading with borrowed funds from a broker or an exchange, which provides leverage and thus more buying power for a trader. Leverage used in margin trading can change from 2 to 150 times the collateral of the trader. The higher the leverage is, the higher the liquidation risk will be.
The total value of the circulating supply of a cryptocurrency or token, which is calculated by multiplying the price of a single coin (or token) by the total number of coins (or tokens) in circulation.
The density of large market orders for a financial asset, which corresponds to the total number and size of open orders. If an asset has a high market depth, then it requires very large buy or sell orders in order to have its price substantially impacted to the upside or downside.
An individual or institution that periodically buys and sells large amounts of a financial asset to ensure its market liquidity. In return for providing liquidity, the market maker takes a profit from the bid–ask spread of all transactions that involve the asset.
An order type given at an exchange, which demands to buy or sell an asset instantaneously at the current market price. A market buy is buying an asset at the instantly available market price and a market sell is selling an asset at the instantly available market price.
The overall psychology of investors in the market, which swings between fear and greed. As the pendulum swings from fear to greed, investor sentiment drives bear and bull market cycles.
A market participant who buys and sells financial assets from currently existing orders. When a trader buys with a market order, they become market takers.
A type of server, which functions as a component of a blockchain network and is responsible for processing transactions on the blockchain. As a return, a masternode receives a reward. Masternodes on a blockchain usually require staking a minimum amount of the blockchain’s native coins in order to benefit from rewards.
The native cryptocurrency of the Polygon network (previously Matic Network), which is a Layer-2 side-chain protocol that runs on the Ethereum network. Matic is used for staking and paying for transaction fees in the Polygon network.
Maximum number of coins or tokens that can exist in the lifetime of a cryptocurrency. Maximum supply of a cryptocurrency is the equivalent of a stock’s number of fully-diluted shares.
A cryptocurrency based on a viral joke. A memecoin serves no real-world purpose and it entirely relies on social media hype to attract users and investors, due to which it can reach astronomical price levels within only a couple of days. Dogecoin is the original memecoin.
A pool of unconfirmed transactions on a blockchain. Transactions on a blockchain with higher paid fees supersede transactions with lower fees. A mempool acts as a waiting room for those lower fee transactions until they are confirmed on the network.
A web3 crypto wallet that operates as a plug-in extension for web browsers. MetaMask is designed to manage, deposit, and transfer tokens that use the Ethereum, Avalanche, and Binance Smart Chain blockchains. MetaMask users can directly interact with DApps through their browser.
A virtual universe in the digital environment that contains all aspects of the real, physical world. Users in the metaverse interact with each other to work, play, do business, and socialize with other users just like in the physical world.
A class of cryptocurrencies that have a market capitalization below $100 million. Micro cap cryptos are commonly referred to as “gems” in the crypto community.
One millionth of a Bitcoin (0.000001).
A class of cryptocurrencies with a market capitalization value between $100 million and $10 billion.
A type of cryptocurrency that is created by a mining consensus, like proof of work. The most common mineable cryptocurrency is Bitcoin.
Validators of transactions on a PoW consensus blockchain. Miners validate transactions by solving complex math problems, which creates new coins. Miners are rewarded with a fraction of these newly minted coins every time a new block is mined on the blockchain.
Mining is the process of using computing power to verify and record blockchain transactions. Mining also results in the creation of new coins, which miners earn as a reward for their efforts. Mining is utilized in PoW blockchains.
A cryptographic algorithm that runs on a PoW blockchain, which collectively requires a very large amount of computational power. Mining algorithm secures a blockchain’s network and rewards miners for running the algorithm with their own computational resources.
Mining as a Service (MaaS)
A cloud service that allows people to lease mining power from a cloud provider for a certain period of time and a certain processing capacity (megahashes per second).
A physical farm that stores a large number of high-capacity computers and processors, which are designed to mine cryptocurrencies. Bitcoin is the most commonly mined cryptocurrency in mining farms.
Digital cryptographic pools that cryptocurrency miners join and combine their hash rates in order to mine a larger number of blocks together and distribute more rewards as a return. The goal is to allow smaller mining farms to compete with larger farms.
Rewards distributed to miners in a Proof-of-Work consensus blockchain as a return for their mining blocks of transactions. New coins are created and added into circulation as a result of mining blocks, which are then distributed to miners as a reward.
An equipment to mine cryptocurrency coins, which can vary from a simple personal computer to a professional-grade computing device.
A process to create new tokens on a blockchain network. Unlike mining, minting requires negligible computational resources, which is carried out by validator nodes in a Proof-of-Stake (PoS) blockchain.
A list of words used in sequence in a non-custodial cryptocurrency wallet in order to access or restore cryptocurrency assets.
A cryptocurrency wallet that runs on a smartphone. Mobile wallets are hot wallets if they are connected to the internet.
A term used in the crypto community for the dramatic price increase of a cryptocurrency in a short period of time.
Moving average (MA)
A technical indicator that reacts to price movements of an asset, which calculates the average price of an asset over a specified period of time. Moving averages are used by traders to determine the trend of an asset and predict the future direction for its price.
Moving average convergence divergence (MACD)
A momentum indicator used in technical analysis to find confluences or divergences between moving averages and price action of a financial asset.
Multi-Factor Authentication (MFA)
A two-factor authentication (2FA) method, which a device user needs to input when accessing a website or an application.
Wallets that require more than one key to authorize transaction requests.
An open-source Layer-1 blockchain platform established in 2014, which is widely considered to be China’s answer to Ethereum. NEO is the native currency for the Neo blockchain. The currency acts as a medium of exchange for transactions on the network and gives holders the right to vote on network proposals.
A type of decentralized network that deploys a mainnet blockchain along with an interconnected web of secondary side-chains.
Net interest income
The total interest earned over an individual’s or an institution’s assets minus the total interest paid for their liabilities.
Net present value (NPV)
A measurement of future cash flows that is expected to be generated over a specific time period. NPV is calculated by subtracting future cash outflows from future cash inflows of an individual or a company.
An unusual spike of transaction volume in a network, which exceeds the processing capacity of the network and clogs its channels as a consequence.
Growth of a network by an increase in the utility of goods and services offered. The internet itself constitutes the greatest network effect in history. In the blockchain world, Bitcoin and Ethereum have the greatest network effect, due to their very high levels of adoption and the utility they provide to their adopters.
NFT (non-fungible token)
A special format of digital and cryptographic file that resides on a blockchain network, in which you can record items like unique collectibles or artwork that contains some sort of intellectual property. The non-fungible token represents authentication and ownership to that recorded property.
An NFT marketplace owned by the Winklevoss twins.
A cluster of computers or participants that are connected to a blockchain network in order to validate transactions, maintain security of the network, and receive newly minted coins as a reward. An initial investment is required to establish a node, so node operators earn their rewards as a fraction of their initial investment against the total value of funds in the network.
A cryptocurrency wallet whose private keys are possessed only by the person who created the wallet. In that sense, only the creator of a non-custodial cryptocurrency wallet can access and control the wallet, unlike an exchange wallet.
Transactions that are handled off of the blockchain. These transactions are often settled more quickly and at cheaper costs.
Transactions that are handled directly on the blockchain and recorded on its ledger. On-chain transactions are more secure than off-chain transactions in most cases.
The making public of a bit of information or process. It is often used in relation to source code of networks and applications, which allows their composition to be freely viewed and edited.
A decentralized marketplace to buy and sell rare digital goods in the form of NFTs. These digital goods include online gaming items, digital collectibles, and art. OpenSea is the most popular NFT marketplace, which runs on the Ethereum network.
A layer 2 scaling solution that is used to track and record transactions made off chain.
A contract giving its owner the option, but not the obligation, to buy or sell a crypto asset at a specified price on a specified date.
A third-party information service provider that streams external real-world data to a blockchain protocol using smart contracts. The external data platforms held off the blockchain (off-chain data) can be brought online. Oracles are used to execute smart contracts based on the outcome of real world events, like sports betting.
A digital list of all buy and sell orders for a specific asset.
OTC (over the counter)
Transactions handled off of an exchange. OTC trades are often peer-to-peer and settled directly between two entities.
The state of a financial asset when it has been repeatedly bought by buyers in the market.
A collateral value that is higher than the loan value, in other words a lower loan-to-value ratio. Overcollaterization is a mandatory practice in cryptocurrency loans, due to the high volatility that crypto assets are exposed to.
The state of a financial asset when it has been repeatedly sold by sellers in the market.
P&L (profit and loss)
A P&L statement or report is a business’ ability to generate sales, manage expenses, and create profits. P&L can also reflect the amount of capital gained or lost through trading for an individual or institution.
P2P (Peer to peer)
Interactions that happen directly between two individual parties, without an intermediary. In the blockchain world, a P2P network constitutes a distributed network architecture that divides assignments between two or more participants directly. Participants are able to transact with each other without depending on an intermediary or any single point of failure.
A process of lending cryptocurrency to an individual or an enterprise using a decentralized service platform, which matches lenders with borrowers without using any centralized intermediary. The objective of peer-to-peer lending services is to lower any operational overheads and provide better transparency.
A pair of two cryptocurrencies that are traded against each other in a cryptocurrency exchange. It is commonly referred to as a trading pair. Trading pairs in an exchange show which cryptocurrencies can be directly exchanged with another.
A document containing the private keys of a wallet.
Layer-1 blockchains that operate on top of the Polkadot Network, which is a Layer-0 blockchain. Parachains are application-specific structures that run in tandem with each other and connect collectively to Polkadot’s Relay Chain.
The main chain on a blockchain network ecosystem. Parent chains are usually Layer-1 blockchains that maintain the consensus of the network and run subnetworks or side chains on top of the parent chain.
Movements of a financial asset’s price on a price chart, which resembles certain shapes such as channels, triangles, flags, wedges, and etc. Patterns are useful in identifying potential trends with assets.
Pax Dollar (USDP)
An ERC-20 stablecoin that is pegged to the US Dollar at 1:1 ratio. Every single USDP coin in existence is backed by US Dollar reserves, which are regularly audited by the authorities.
PAX Gold (PAXG)
An ERC-20 stablecoin that is the virtual representation of gold. Purchasing PAXG allows investors to make profit from gold’s price movements without having to buy physical gold. Each PAX Gold coin is pegged at 1:1 ratio with one ounce of gold.
A fixed exchange rate between two assets. Pegs are most commonly used in currencies.
A fixed exchange rate for a stablecoin. Prices of most assets fluctuate with market forces, but stablecoins are pegged to fiat currencies like the US Dollar to maintain price stability and protect investors against market volatility.
A type of blockchain with an access control layer, which allows only certain parties to join and transact in the network. In a permissioned ledger, tasks can be carried out only with pre-determined access, which make such blockchains very different from public blockchains like Bitcoin and Ethereum.
A system with no governing entity to detail when, how, or why it should be used. In a permissionless blockchain, there is no entity that regulates who can use the network and how it can be used.
Perpetual futures contract
A derivative contract similar to futures, albeit one without an expiration date.
A computer-based attack which steals sensitive personal information like email addresses, private keys, and credit card information from an unknowing victim. Phishing attacks are made by malicious parties that impersonate trustworthy entities like official customer services.
An off-chain, Layer-2 scaling solution for the Ethereum network. In that sense, a plasma chain is a network of side chains that seek to increase the efficiency of the Ethereum network by taking the bulk of transactions out of the main chain and allocating them to smaller chains.
Any type of distributed blockchain network that developers can create and run applications on top of it.
Play to earn (P2E)
A gaming concept in which an online game platform incentivizes its users to play games. In return for playing, players are able to earn from in-game assets that can be exchanged in the real, physical world as a valuable resource.
A decentralized, layer-0 blockchain network protocol, which allows independent, layer-1 blockchains to operate and transact with each other using Polkadot’s cross-chain interoperability. To establish such an intricate network, Polkadot employs a nominated proof of stake (NPoS) consensus methodology. DOT is the network’s native currency, which is used to pay for transactions and establish governance parameters in the Polkadot ecosystem.
A fraudulent investment or scam, which usually promises unrealistically high rates of return with a minimal risk for investors. In a typical Ponzi scheme, profits are given to earlier investors from funds received from later investors.
A collection of diverse financial investments like cryptocurrencies, stocks, bonds, exchange traded funds (ETFs) etc. The risk appetite of an investor determines the level of diversification in an investment portfolio. A portfolio is either managed by its owner or by a financial advisor or an institution.
The instance in which all or a portion of a network's coins are mined before they are sold to the public and added into circulation.
The instance in which all or a portion of a network's coins are sold to a specified group of investors before they are made publicly available.
Price discovery happens when the price of a traded asset makes a new all-time high or all-time low price. In such a circumstance, market players try to establish an equilibrium price by frequently trading the asset back and forth.
The original amount of funds borrowed in a loan agreement, without any interests incurred.
A type of cryptocurrency that seeks to preserve the privacy of its users and its network protocol. A privacy coin conceals the identity and transaction information of its users as they exchange crypto assets. This is made possible with the use of zero-knowledge proofs (zk-SNARKs), which are a type of immutable and tamper-proof cryptographic proof. Monero and Zcash are the two most popular privacy coins.
A variable in cryptography that is used with an asymmetric algorithm to encrypt and decrypt data. Private keys are numbers that allow users to sign transactions and generate receiving addresses. In that sense, they secure a user’s funds stored in a wallet.
An initial round of fund raising by a cryptocurrency startup, which is before the pre-sale and Initial Coin Offering (ICO) rounds. The goal of a private sale is to allow institutional investors to invest large amounts of capital in order to headstart the early development of projects.
Proof of authority (PoA)
A consensus mechanism that merits identity and reputation, instead of cryptographic assets and computational power. In contrast to a proof of stake mechanism, PoA relies on a small number of nodes to verify transactions. At the cost of decentralization, PoA networks have exceptional scalability and transaction speeds compared to other consensus mechanisms.
Proof of stake (PoS)
A decentralized consensus mechanism that rewards block validators according to the number of native coins that they invested in the network. Block validators are selected based on the number of coins they are committing to the network. PoS was invented as an alternative to the Proof-of-work (PoW) of Bitcoin and Ethereum 1.0.
Proof of work (PoW)
A decentralized consensus mechanism that requires computing effort and thus energy to solve unpredictable mathematical puzzles. The collective computing power consumed in the network forms a blanket of security, which prevents a single entity from gaining control of the entire network. Bitcoin constitutes the most popular PoW consensus network.
Pseudo-anonymity is used to describe websites and networks that are designed to be anonymous, but are actually not. Bitcoin is an example of a pseudo-anonymous network, because while users can have a Bitcoin address without giving away their personal identifiers, everything that occurs on the blockchain is publicly available and trackable.
An address in a blockchain network that is used to send and receive payments to/from other parties.
A blockchain that is available for public use. It is a permissionless system which allows anyone to participate in the network. Public blockchains generally employ cryptocurrencies that are censorship resistant and borderless. The two largest and most popular public blockchains are Bitcoin and Ethereum.
Pump and dump
A pump and dump is an illegal scheme used by one or more market participants. The market participants will buy up an asset and deploy false and misleading information designed to cause a buying frenzy. Once the price of the stock or crypto is pumped up, the trader will then dump their asset at the artificially high price.
An option to sell assets at an predefined price on or before a particular date.
Short for Quick Response, QR codes are a type of barcode that is easy to read with digital devices. They store information as a series of pixels on a square grid. For cryptocurrencies, QR codes are often used to easily share wallet addresses with others.
Qualitative analysis is used to examine the value or prospects of a company based on information that we cannot count, such as management experience, industry cycles, research and development results, labor relations, etc.
Quantitative analysis is a methodology that uses mathematical and statistical modeling and research, which is mainly used to predict the prices of various financial instruments. The method is quite similar to the technical market analysis.
Quantitative trading strategies are based on quantitative analysis, which uses mathematical calculations and number processing to determine trading opportunities.
Quantum bit (qubit)
A quantum bit (qubit) is a basic unit of measurement in quantum computing similar to the classical binary bit used in traditional computing.
Quantum computers are machines that use the properties of quantum physics to store data and perform computations. They can vastly outperform even the best classical computers.
Race attack is simply an artificial "race" between two transactions created at almost the same time. The idea is to replace the first transaction with another and return funds to the wallet before the transaction is confirmed.
Range (technical formation)
A technical tool that measures the difference between the high and low prices for a given trading period. The range is marked on the charts for one trading period as high and low points on a candlestick or bar.
A pattern in technical analysis (TA) where an asset’s price remains in a specific range. Assets that are range-bound typically bounce between a high resistance price that they cannot break above and a low support price that they won't drop below.
Ransomware is a type of malware that encrypts files on the victim’s computer. The attacker then demands a ransom to restore access to the data after payment. The best way to protect yourself from ransomware is to prepare beforehand. Install security software to all your devices and regularly back up your important data.
A form of erasure coding used in computer science to split data into encoded chunks (blocks of data) so that they can be safely sent elsewhere. Sometimes it is used in blockchains.
This term refers to how rare an NFT is. Some NFTs are available for purchase in the thousands, so they are considered a low rarity. However, if only one NFT is minted on the blockchain, it is very rare and therefore more valuable.
A market capitalization option in which each unspent transaction output (UTXO) is valued based on the price at the time of the last move, rather than its current value. Thus, it represents the realized value of all coins on the network, not their market value.
Rebalancing is a process of periodically renewing the number of assets in a portfolio to maintain a desired level of asset allocation or risk. The distribution of funds across several assets allows you to partially offset the effects of the asset decline through the activities of others. This can provide a certain level of portfolio stability.
The circulating supply of rebase (or price-elastic) tokens is automatically adjusted (increased or decreased) in accordance with fluctuations in the price of the token. The amount of tokens in each wallet will increase or decrease accordingly. Yet, the total value of each wallet does not change.
Reciprocally analogous virtual machine (VM)
A type of virtual machine that is designed to interact with another virtual machine or blockchain/computer system. A virtual machine is a cloud simulation of a computer system based on various types of computer architecture and provides the functionality of a physical computer system. VMs can be created to simulate types of specialized hardware, software, or a combination of both.
The recovery seed phrase is a cryptographic security code made up of a list of 12-14 random words. It stores information for recovering your wallet and coins. Users should keep it in a safe place, because anyone who can access your recovery phrase can obtain your funds or steal them outright.
A function that allows automating the purchase of cryptocurrency. It is a dollar value averaging (DCA) investment strategy that allows users to choose the asset, the amount, and frequency of the purchases.
In terms of data storage, redundancy refers to either the deliberate or accidental practice of storing multiple copies of a given piece of data, often in several different locations. Data redundancy is considered best practice to ensure that data is stored securely and will not be irrevocably lost in the event of a single host or single copy of data disappearing.
The ability to simultaneously perform the function of a smart contract several times. If an attacker can control an untrusted contract, they can recursively call the original function, repeating transactions.
The management of regulatory processes within the financial industry. The main functions of regtech include regulatory monitoring, reporting, and compliance.
The process of ensuring that a business complies with certain guidelines imposed by government agencies such as the Securities and Exchange Commission (SEC) in the United States. These guidelines are designed to protect investors, ensure consumer confidence, promote transparency, efficiency, and fairness in markets, and reduce financial crime and systemic risk.
The practice of banks and brokers using assets that were pledged by their clients for their own purposes. Customers who have allowed their collateral to be reissued can be compensated either through a lower borrowing cost or through a discount on fees.
In the world of blockchain and cryptocurrencies, rekt is used to describe serious financial losses caused by a failed trade or investment. Often used to describe unsuccessful trading or someone who got liquidated after losing a high leverage trade.
A relay is a contract on chain A that functions as a light client of chain B. Relay using chain B’s standard verification procedure to verify block headers fed into the contract. This gives chain A the ability to understand event changes on chain B. Instead of having a federation that verifies events on another chain, relays allow the chains to do this themselves.
A remittance is a payment from one place to another, and in most cases involves an individual transferring capital to an overseas contact. Blockchain remittance is a financial solution that incorporates blockchain technology into the various needs of the remittance economy.
Remote file inclusion (RFI)
An attack aimed at vulnerabilities in web applications that dynamically link to external scripts. Remote file inclusion (RFI) occurs when the web application downloads and executes a remote file. The goal of an attacker is to use the link function in an application to download malware
Remote procedure call (RPC)
A set of protocols and interfaces with which a client interacts with a blockchain system. The user can request information related to the blockchain (such as block number, blocks, node connection, etc.) and send a transaction request through the RPC interface. RPC is the most straightforward form of an API which allows developers to communicate to a server in order to remotely execute code.
A chain reorganization (reorg) takes place when a node receives blocks that are part of a new longest chain. A node will deactivate blocks in its old longest chain in favor of the blocks that build the new one.
Replace by fee
A method that allows the sender to replace a stuck or unconfirmed transaction with a new one with a higher fee. This is to ensure that the transaction is confirmed as quickly as possible.
Also known as a man-in-the-middle attack. A replay attack occurs when a hacker discovers a secure network connection or transmission of data, intercepts it, and then retransmits (or replays). The idea is to try and trick the person on the other end of the line. For example, a hacker can intercept a customer's credit card information and then re-transmit it over the Internet to make fraudulent purchases.
A ledger with one master (authoritative) copy of the data, and many slave (non-authoritative) copies. Sharing a single copy is risky and undesirable, so replicated ledgers share the verified information about the records. They do not have a single point of failure, because a source blockchain can be replicated more than once.
Institutional investment reporting is the process by which analysis tools are used to generate reports and collect other data to track various aspects of a portfolio's performance. Dedicated reporting tools enable institutional investment firms to analyze profit and loss (P&L) data, performance data, position size, type of entry, and exposure.
Allows the user to increase or decrease the number of shards in the stream to accommodate changes in the data rate. Resharding is typically performed by an administrative application that monitors the processing metrics of the shards’ data.
A resistance level is a point on a price chart at which an upward price trajectory inhibits traders' overwhelming desire to sell an asset. If the market price approaches the resistance level, traders mostly close their long positions.
REST API (representational state transfer API)
REST is a type of software architecture that a developer can follow for client-server communication. Since this data is accessed by more than one client, a provider can deliver them with access to the data directly. An application programming interface (API) establishes an online connection between a data provider and an end-user.
Implemented in most of the proof-of-work blockchains. Retargeting ensures that the average block creation time is maintained by increasing the difficulty of the hashing puzzle. It is created by dividing the hash target of the first block by the hash target of the current block. The constant retargeting means that miners require more processing power over time.
Return of investment (ROI)
It’s a measure used to evaluate the performance or return on investment or compare the performance of a number of different investments. To calculate the return on investment, the profit (or return) is divided by its initial or current value. The result is expressed as a percentage or ratio.
These tokens entitle their holders to a portion of the revenue or fees generated on or through the host platform. Such revenues can be distributed on-chain periodically or through a mechanism called buy and burn. The last one is about removing tokens from the circulating supply to increase the perceived value of the remaining ones.
A cryptocurrency traders term that is used to describe a trader who always makes mistakes in predicting price movements.
Reversible ICO (rICO)
An initial coin offering method that allows investors to reserve tokens in one stage of the offer and then buy them over time in a second stage. If investors decide that they no longer want to support the project for any reason, they can issue the remaining reserved tokens and receive back the corresponding ETH.
A common term used to describe the top accounts holding the most amount of coins of any blockchain.
Ride (programming language)
A straightforward, developer-friendly functional programming language for smart contracts and decentralized applications (dApps) on the Waves blockchain.
In cryptography, a ring signature is the one that can be performed by any member of a group of users with cryptographic keys. A ring-signed transaction message is verified by someone from a specific group of people, without disclosing the public key of the sender. Other details like recipient, signer, or any of the other members of the group, and the amount of the transaction are also kept anonymous.
A visual depiction of the tradeoff between risk and return among investments. The curve denotes that lower-risk investments, plotted to the left, will carry a lesser expected return. Riskier investments plotted to the right, will have a greater expected return.
A strategic plan of a business project that defines a goal or desired outcome and includes key steps or milestones required to achieve them. The roadmap for launching a blockchain project must start with a clear understanding of the benefits that you can reap, with approximate dates of releases.
Digital platforms that provide automated algorithmic investment services with minimal human oversight. They are best for simple investing and are not the best options for more complex matters such as real estate planning.
A Roth IRA is a special IRA where you pay taxes on the money that goes into your account and then all subsequent withdrawals are tax-deductible. There is not a specific Internal Revenue Service (IRS) account designed for cryptocurrencies. Thus, when investors refer to crypto or Bitcoin IRA they mean a portfolio that includes Bitcoin or other digital currencies.
An attack on the Internet Service Provider level to affect uptime or participation in a web-enabled system, such as a blockchain. An attacker can split a network into two (or more) non-overlapping components. By preventing nodes inside a component from communicating with nodes outside of it, an attacker forces parallel blockchains to be created.
The right of the owner of a patent or intellectual property to receive payment of a sum of money from anyone who uses the asset for commercial purposes. When the NFT is sold and the transaction is confirmed on the blockchain, the new owner receives a digital confirmation of the purchase.
RSI (relative strength index)
RSI is an oscillator that calculates high and low bands between two opposite prices. Basically, it estimates the size and speed of price variation. Traditionally, RSI estimates the change in the price of a cryptocurrency over a 14-period default time frame. It can also be measured in weeks, days, hours, or even minutes.
A malicious maneuver in the crypto industry where cryptocurrency developers abandon a project and run away with investor funds. Rug pull thrives on DEX because these types of exchanges allow users to place tokens for free and without auditing.
A multi-paradigm programming language designed for performance and safety, especially safe concurrency. Rust is similar to C++ but can guarantee memory safety by using a borrow checker to validate references.
Involves “sandwiching” a user's transactions in between two attacker's transactions. Two attacker orders are before and after the users' order (hence the name sandwich), generating a loss for the user and gain for the attacker. Sandwich attacks typically take place on decentralized exchanges (DEXs) and result in price manipulation.
The smallest unit of Bitcoin, as defined by the Bitcoin protocol. This equates to one hundred millionth bitcoin or 0.00000001 BTC. It was named after the creator of Bitcoin, Satoshi Nakamoto.
The pseudonym of the creator or creators of the bitcoin protocol and whitepaper. This name was used by the creator of Bitcoin in emails, forum posts, and publications. The name is clearly of Japanese origin, but since the person wrote in perfect English, many believe that Satoshi comes from an English-speaking country.
A change in size or scale to handle a network’s increasing load of transactions, as well as increasing the number of nodes. A system with good scalability can process more transactions per second than other existing systems by changing its consensus mechanism and adjusting some of the parameters.
Scalp trader (Scalper)
A type of investor who's strategy is profiting off of small price changes and making a fast profit off reselling. In day trading, scalping is a term for a strategy to prioritize making high volumes of small profits. Scalpers typically enter and exit positions very quickly — usually within the span of minutes or seconds.
A trading style that specializes in making a profit from small price changes with reselling. Scalping requires a trader to have a strict exit strategy because one big loss can wipe out the many small profits.
An illegal trick, usually with the purpose of getting money from people or avoiding paying tax.
A fake cryptocurrency that was created to make money by stealing funds from the people who backed the coin and invested in it.
A person who commits or participates in a fraudulent scheme or financial and/or any other type of scam.
A malware tactic that makes users believe they need to download or buy malicious, sometimes useless, software. Scareware uses social engineering, most often triggered by pop-up ads, to take advantage of people’s fear by persuading them to install fake antivirus software.
A digital signature scheme that allows for multi-signature aggregation, while also providing both scaling and privacy benefits.
A hash function that converts an input of symbols into an encrypted output. Scrypt is one of the first hashing algorithms implemented on blockchain networks. It was developed as a solution to mitigate the growing dominance of ASIC mining platforms and the subsequent centralization of cryptocurrency mining.
A set of solutions built on top of a public blockchain to extend its scalability and efficiency, especially for micro-transactions or actions. Examples include Plasma, TrueBit, Lightning Network and more.
The term refers to the traditional stock market. It is known as the secondary market because before bonds, stocks, derivatives, and other financial instruments are sold on the stock market, they are sold on the primary market. In a broader context, a secondary market is any trading platform that is used to exchange goods or assets that are not used for their primary purpose (for example, corn for ethanol instead of food or livestock feed).
Secret smart contract
A type of smart contract that allows private data to be used in decentralized applications without revealing the raw data.
Securities and Exchange Commission (SEC)
An independent U.S. government agency that is responsible for regulating and monitoring securities markets (such as stocks and bonds). One of the main goals of the SEC is to prevent and supervise market manipulation and fraud.
A process of pooling an asset into a security. These can include residential and commercial mortgages, car loans, credit card debt, and other forms of debt, which are packaged, bought, securitized, and sold to prospective investors. Securitization often comes in the form of mortgage-backed securities (MBS) and asset-backed securities (ABS).
Security (financial asset)
A fungible, negotiable financial instrument that holds some type of monetary value. It can be any tradable financial asset like a stock, bond, commodity, or derivative. However, the term varies by geographical location because different jurisdictions use different legal classifications to determine what constitutes a security. Even some cryptocurrencies are considered securities in different regions.
Systematic analysis to assess how secure a blockchain or a crypto platform is against attacks or technical failures. It consists of the systematic analysis of the system and database to assess its reliability and security. In the context of blockchains, a security audit consists of a peer review of a smart contract or blockchain code to identify potential bugs or flaws.
Tokenized ownership of any asset whose value is recorded in the blockchain ledger. In the context of corporate ownership, security tokens are analogous to corporate shares or shares/multiples of the value of shares.
A form of financing in which an investor invests in a startup in exchange for a share in capital, convertible bonds, or tokenized company assets. Initial funding is generally considered a very early investment to support a startup until it is operational and starts generating cash flow.
A seed phrase is a series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet. Also known as backup code, recovery phrase, and mnemonic seed.
An act of uploading previously downloaded content for others to download. A computer connected to a P2P network generally becomes a seed after it has the desired file. Multiple seeds with the same file allow a user to download the file much faster than they would be able to form a single party.
Seems rare (NFT)
A common response to a newbie's question when asked for opinion and/or comment on their non-fungible token. Mostly used sarcastically.
SegWit (segregated witness)
The process by which the signature data of a transaction is decoupled from a Bitcoin transaction. This is an improvement used by the existing Bitcoin blockchain. SegWit reduces the size required to store transactions in a block and allows for faster transaction processing.
Definitely means providing money for a project or course of action oneself. Self-funded blockchain uses a built-in mechanism in which part of the block reward goes to funding the development.
A strategy that involves the formation of a cartel of miners who "hide" their generated blocks from the main blockchain. It’s proved that miners can earn more bitcoins by hiding newly generated blocks from the main blockchain and creating a separate fork.
The term means one very large or collection of sell limit orders at the same price level in the order book. Although a sell wall can be created by a single order, a sum of several orders placed at the same price level can also form it. Usually, when a wall is created by one trader, they are called whales.
A version of the World Wide Web that can expand on the parameters set by the World Wide Web Consortium (W3C). The semantic web is designed to allow Internet data to become machine-readable, leading to a much richer experience for transacting, data usage, and the sharing of information.
In computer science, a semaphore is a variable or abstract data type used to control access to a common resource by multiple threads and avoid critical section problems. It's also zero-knowledge proof which allows Ethereum users to prove their membership of a set which they had previously joined without revealing their original identity.
The general attitude of the community towards cryptocurrency or within investors towards a particular financial market, which usually shows a very subjective perception of market conditions. This is a common emotion in relation to the price behavior of a particular asset.
The process of converting data objects, represented in complex structures, into a stream of bytes in order to easily store, transmit, and distribute it on physical devices. Ethereum internally uses an encoding format called recursive-length prefix encoding (RLP).
Stands for Secure Hash Algorithm 256-bit. It is the hash function and mining algorithm of the Bitcoin protocol, referring to the cryptographic hash function that outputs a 256 bits long value.
The voice of a token holder with no economic interest in the protocol. This can be achieved by borrowing a governance token, voting for it, and then returning it to the lender. An attacker issues a flash loan, votes and returns the loan in one atomic transaction, without incurring capital maintenance or interest payments.
The process of dividing the entire network into several parts called shards. Each shard will contain its own independent state, which means a unique set of account balances and smart contracts. Sharding contributes to better blockchain scalability, enabling the network to process more transactions per second.
This is the ratio that investors and economists use to estimate the potential return on investment (ROI) in relation to risk. Technically, it measures the past performance of a portfolio - or its expected future performance - by taking into account the excess risk that the investor has taken on.
Implicit advertising of cryptocurrency by someone with a status or reputation, or a promoter of the project. The goal is to draw attention to the project so that investors flock to the cryptocurrency, driving up demand and driving up the price.
The term refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose.
SHO (strong holder offering)
A fundraising mechanism where investors are selected based on their online activity. This method allows the project to attract funding from persons who are holders of its cryptocurrency.
An order to sell cryptocurrency at a higher price, with the aim of repurchasing it at a lower price later on. This is called short because traders are short on their digital assets and actually don't own the cryptocurrency that they are going to profit from.
An unusual condition causes rapidly rising prices in the cryptocurrency market. For a short squeeze to occur, an asset must have an unusual degree of short sellers holding positions in it.
A separate blockchain compatible with Ethereum. While a sidechain is a scaling tool of sorts, it is simply a way to transfer cryptocurrency faster and with lower fees than using the main network. Sending tokens from the side chain to the main Ethereum network can result in token loss. That’s why it often required routing tokens through a dedicated portal or bridge.
Cryptographic proof systems that can help in establishing trust on the blockchain. When initiating a crypto transaction, the user must sign it with their personal unique signature, also called a private key.
A former online black market that was launched in February 2011 and served as a platform for selling illegal commodities and data. The website is also famous for accepting payments in bitcoin (BTC). It was subsequently shut down in October 2013 by the FBI.
In general meaning, it is someone who tries way too hard to impress a person they like. In the crypto community, snipping means when an NFT creator tries to get the attention of an NFT whale.
A mechanism built into the Proof of Stake consensus to discourage improper validator behavior. The two main misbehaviors that pruning entails are downtime and double-signature. A slashing condition is one that causes the validator’s deposit to be destroyed when they trigger it.
A difference between the expected and the real price at which the trade is executed. Slippage is most common during periods of increased volatility.
A computer program or transaction protocol that is designed to automatically execute, control, or document significant events and actions in accordance with the terms of a contract or agreement. Smart contracts are used to exchange currencies, shear, property, or anything that has value. It also can be a middleman between the sellers and buyers.
A variant of a phishing attack using deceptive SMS or text messages. Text messages involved in a smishing attack often contain malicious links, fraudulent customer support, or a reputable phone number designed to allow a target to click or call.
Means to purchase an NFT quickly for a low price, also known as sniping.
A record of the state of a blockchain ledger, storage device, or computer system at a particular point in time. Snapshots are commonly used during airdrop before each round. In this case, snapshots are taken to record the balance of each token holder at a certain point in time.
A slang term for the transfer of data and electronic files between computers via removable media (such as hard drives, flash drives, and optical disks).
Software that places a bid on an online auction just seconds before the scheduled close of bidding.
A wide range of malicious techniques that exploit psychological factors such as fear, trust, panic, lack of information, and confusion to influence the victim of the scam. What makes social engineering especially dangerous is that it is based on human error, not software and operating system vulnerabilities. Errors made by legitimate users are much less predictable, making them harder to detect and prevent than a malware-based intrusion.
Social finance (SoFi)
A category of financial services that seeks to leverage private capital to address issues in areas of social and environmental needs.
A cryptocurrency built around a specific brand, community, or individual. Social tokens represent social media influencers and other popular figures. Typically, they provide their owners with some kind of enhanced access to the brand, community, or the person they represent - a line of communication, exclusive products, access to events, or management rights.
A fraudulent account used to lure investors into fake investment services. They are typically used for block evasion, creating false majority opinions, vote stacking, and other similar pursuits.
A fundraising established minimum specified by the project team (ICO, IEO, etc.). If a team cannot raise funds in excess of the set soft cap limit, they sometimes return funds to their investors, while others continue to develop the project with the collected money.
A software update that is backward compatible with older versions. This means that members who have not updated to the new software will still be able to participate in the validation of the transactions. However, previously confirmed blocks/transactions and all transactions performed on the old blockchain version are not valid in the new network. This can result in a potential divider in the blockchain, as the old software still generates blocks.
A type of exchange rate regime applied to a currency to keep its value stable against a reserve currency or a basket of currencies. Soft-pegged currencies are halfway between stablecoins and currencies with floating exchange rates.
A software program that allows you to store your crypto and allow for the sending and receiving of crypto transactions.
A method to mine crypto without joining the mining pool. The miner attempts to generate new blocks on his own, with the proceeds from the block reward and transaction fees going entirely to himself.
Source code is a language or sequence of words, numbers, letters, and symbols that a computer programmer uses. Basically, source code is the basic state of the software at the time it was written. Bitcoin and most of the blockchains have open-source nature, meaning the code is publicly accessible.
A high-risk investment focused on price fluctuations. An investor buys a traded commodity in an attempt to profit from changes in market value.
A type of blockchain fork where the new cryptocurrency inherits the account balances of an existing cryptocurrency. It allows a new project to add its own features to the previous software, whilst still allowing the users of the existing protocol to participate in it.
A public financial market in which the trades are immediately settled and delivered. Spot markets arise when sellers and buyers come together to exchange cryptocurrency. The spot market is unique as you can trade without margin or leverage.
A process of buying and selling assets without using leverage. It’s different from trading financial derivatives such as futures or options. Spot trading is considered to be much less risky than derivatives trading as it does not involve leverage and potential liquidation of assets.
SPV (simplified payment verification)
A blockchain payments technique described in Satoshi Nakamoto’s paper. SPV allows a lightweight client to verify a transaction without downloading the entire blockchain.
A special type of malware designed to record, track and collect as much information as possible on an infected device. Spyware can be harmful to crypto users because it can steal data, personal wallet keys, and other information that can be used to steal funds.
SSL (secure sockets layer) certificate
A technological standard used to enable a secure connection between a website and a user on the internet. SSL certificates scramble transmitted data through encryption algorithms in order to prevent malicious actors from being able to access data as it moves from one system to another.
A type of cryptocurrency that is designed to maintain a stable value, rather than experiencing significant price changes. Most stablecoins use the USD as a benchmark asset, but many are also pegged to other fiats, precious metals, and other cryptocurrencies. Thus, the price of stablecoins fluctuates very little because it changes only when the value of pledged asset rises or drops.
The process of regularly accumulating small amounts of bitcoins over time by buying, receiving, or mining BTC. "Sats" refers to Satoshi, the smallest unit of Bitcoin.
A group of token holders is merging their resources to increase their chances of block validation and staking rewards. As a rule, a bet must be locked for a certain period and usually has a de-linking or unlinking time set by the protocol.
Blocks that have been successfully mined but are not included in the current chain. Typically, a stale block occurs when another block of the same height is first added to the chain.
A process in which users transact with each other directly outside of the blockchain, or ‘off-chain’. It greatly minimizes their use of ‘on-chain’ operations. It’s one of the Ethereum scaling solutions in development.
A technique for obscuring public blockchain transactions by generating one-time addresses. Stealth addresses operate by creating a one-time address for every transaction, even if the same recipient receives multiple transactions.
A technical indicator for generating overbought and oversold signals. It compares the specific closing price of an asset to its price range over a specific period of time.
An order placed with a broker to buy or sell a specific asset as soon as the price reaches a specific value. In fact, a stop loss closes a trading position and helps limit potential losses.
Store of value
A property of an asset that can avoid depreciation over an extended period of time. Thus, to be considered a store of value, the value of an asset must either be stable or increase over time but never decline.
The strike price is the value at which a derivative contract can be bought or sold. The strike price is a key variable in call and put options. For example, the buyer of a call option will have the right, but not the obligation, to buy the underlying asset in the future at the specified strike price.
Money that has already been spent and cannot be returned. For example, in a manufacturing firm is the cost of machinery, equipment, and the cost of renting a factory. In business and investment, a sunk cost fallacy is an error of a decision-maker considering that further investments into a certain activity are justified so those earlier investments in that activity will not have been in vain.
The computer or virtual machine with the highest performance available at any given time. Initially, such computers were used primarily for scientific and engineering work requiring extremely high-speed computing.
Supply and demand
In economics, it is the relationship between the amount of a good that producers want to sell at different prices and the amount that consumers are willing to buy. This is the main pricing model used in economic theory.
A network of people and businesses involved in creating and distributing a particular product or serving a particular customer. Blockchain technologies offer solutions for efficient management of supply chains, like automated and transparent tracking.
A price level that an asset does not fall below for a certain period of time. An asset's support level is created by buyers entering the market whenever the asset drops to a lower price. In technical analysis, a simple support level can be plotted on the chart by drawing a line along with the lowest lows in the time frame in question.
Swap (derivative swap)
A derivative contract in which one party exchanges or “swaps” the cash flows or value of one asset for another. Most swaps involve cash operations such as a loan or bond.
Stands for Society for Worldwide Interbank Financial Telecommunication. It's a global network connecting banks to communicate messages about activities like money transfer safely and securely.
Swing failure pattern (SFP)
A trend reversal indicator that can be used to discover a weakness in the current trend and identify early reversal signs.
A trading style that attempts to generate short or medium-term profit on an asset over a period of several days to several weeks. Swing traders mainly use technical analysis to find trading opportunities.
a kind of security threat in an online system when one person tries to take over the network by creating multiple accounts, nodes, or computers. In terms of cryptocurrencies, a relevant example is when someone launches multiple nodes on the blockchain network.
One that is used both to encrypt and decrypt information. This means that to decrypt information, one must have the same key that was used to encrypt it. Blockchain technology uses an asymmetric keys system with public and private keys.
Communication when messaging is only possible in real time. This requires the transmitter and receiver to be at the same time and/or in the same place. Examples of synchronous communication are phone calls or video calls. Blockchains can be asynchronous or semi-synchronous networks.
A combination of cryptocurrencies and traditional derivatives. In other words, synthesizers are tokenized derivatives.
The percentage of cryptocurrency in the account that can be tracked. The concept of taint suggests that some bitcoins are riskier or less acceptable due to their previous owners or possible links to criminal activity.
A trader who buys or sells the asset immediately at the current market price. They execute the available order in the order book instead of adding a new one, that’s why they are called takers.
A list of transactions that may consist of payments or transfers of an asset. Blockchain is a ledger that is fundamentally tamper-proof. Once a transaction is confirmed and entered into the ledger, the entry cannot be changed without detection.
Assets with a real transactional value and usually has a physical form. They include cash, inventory, vehicles, equipment, buildings and investments.
An innovative type of Distributed Ledger Technology (DLT) specifically designed for the Internet of Things (IoT) environment.
A slang describing the strong negative performance of a particular asset. Thus, an asset is considered “tanking” when its price falls very quickly. An asset or portfolio is considered "in the tank" if its financial results significantly decrease in value over a long period of time.
Technical analysis (TA)
A method of assessing the performance of an asset by analyzing certain patterns on charts, such as price and trading volume. Technical analysts try to extrapolate future price movements based on various historical data.
A specific mathematical mostly pattern-based signal formed on the historical price chart of a cryptocurrency. Technical indicators are commonly used by traders to predict future price movements and constitute a fundamental component of technical analysis (TA).
A company-creator of the Proof-of-Stake (PoS) Tendermint Core Byzantine Fault Tolerant (BFT) consensus mechanism that was initially built for the Cosmos Hub blockchain protocol. Tendermint functions as the gateway to the Cosmos blockchain ecosystem.
Tendermint Core Byzantine Fault Tolerance (BFT)
A language-independent consensus method developed by the Tendermint team. It aims to be a more scalable, secure, and decentralized version of the Practical Byzantine Fault Tolerance (pBFT), State Machine Replication (SMR), and Depth Limit Search (DLS) algorithms. Tendermint Core supports state machines written in any programming language and provides a high degree of completeness.
Determines the value of a business or project beyond the forecast period when future cash flows can be estimated. This allows financial models to value a business with a greater degree of accuracy.
TES (technology-enabled service)
A business can be defined as a 'technology-enabled service' if it uses technology to better deliver the service it provides. For a TES, technology is the primary input, as opposed to labor.
An alternative blockchain, usually a fork of the mainnet, that can be used for testing. Testnet coins are separate from native network tokens and should never be of any value. This allows app developers or network testers to experiment without using real funds and worrying about breaking the main chain.
A physical or digital storage solution provided and managed by an outside entity such as a bank, centralized cryptocurrency exchange, or web service.
This Is Gentlemen
Slang used to refer to positive things currently happening in the cryptocurrency markets.
A measurement of how fast a blockchain is able to process transactions. This is typically an indicator of transactions per second (TPS). As a rule, blockchain networks using proof of stake (PoS) consensus mechanisms tend to have higher throughput than those using proof of work (PoW) mechanisms.
A shortcode used to spot a company that issues stocks or securities. In cryptocurrencies, this is a trading symbol or shortened name that refers to a coin or token on a trading platform. For example BTC, ETH, etc.
Time-Weighted Average Price (TWAP)
A measure of the average price of an asset over a predetermined period of time. TWAP trading algorithms aim to optimize the average trade price when executed over a given period of time.
One of the practical features of Bitcoin, allowing you to program actions according to a number of parameters. It’s a kind of smart contract primitive, which refers to what block height or specific time a particular transaction may be included by miners on the blockchain.
An information stored in each block in the form of a unique serial number, the main function of which is to determine the exact moment when the block was mined and verified by the blockchain network.
TINA is short for "there is no alternative". The TINA effect can be seen in markets experiencing asset price bubbles. In this situation, the markets continue to rise, despite the fundamental factors, only because there is no alternative to investing dollars somewhere else.
To The Moon
A slang that refers to a strong belief that certain cryptocurrency is soon going to rise significantly in price.
Digital units issued on the blockchain that can hold value or can be exchanged for assets. The biggest difference between a crypto coin and a token is that coins are the native assets of a blockchain such as BTC, RBTC, or ETH, whereas tokens are created on an existing blockchain, mostly using smart contracts.
An event when a number of tokens are removed from the circulating stock. This is done either by sending tokens to a record address with the very unlikely possibility of generating a private key, or to a smart contract designed to delete tokens. The burning of coins reduces the supply, making the tokens of this cryptocurrency rarer.
Token generation event (TGE)
An event in which new tokens are created and distributed to the public. Creators generally refer to token sales as token generation events or TGEs rather than ICOs because of an increased focus from regulatory authorities to rule ICOs as security. Token generation events are aligned not to be securities in order not to be subject to tax penalties.
A period of time during which the tokens or coins cannot be transferred or sold. Typically, such locks are used as a preventive strategy to maintain a stable long-term value for a particular asset. It is used to prevent massive sell-ups after the ICO events that often cause the price drop.
A process of moving a cryptocurrency’s coins or tokens from one blockchain to another. This often happens when a project transitions from using a third-party blockchain (such as Ethereum) to operating its own network.
A limited period of sale of a predefined number of crypto tokens to the public. Typically new tokens are available in exchange for major cryptocurrencies (mainly Bitcoin and Ethereum). The term is also commonly referred to as an initial coin offering (ICO).
Direct exchange of one crypto asset to another. As a rule, a token swap happens between two users and is facilitated through a special exchange service or decentralized exchange (DEX).
A method of replacing sensitive data with unique identification characters, phrases, or words called tokens. This process preserves all confidential information without compromising the security of the data. It can be used to enhance the security of e-commerce transactions without the additional cost of industry compliance and government regulation.
Basic cryptocurrency token attributes that encourage users to adopt the ecosystem of the token project. Among cryptocurrency investors, this term is commonly used in terms of how the token is used in the project's ecosystem, or how the token will follow monetary policy as the project develops.
Tokyo Stock Exchange (TSE)
Largest stock exchange in Japan and Asia and the third-largest stock exchange in the world by market capitalization at the time of writing. As of September 2021, TSE lists 3,786 companies, including Japanese corporations Toyota, Sony, Keyence Corp, Softbank, Mitsubishi, Honda, and others.
A set of software programming tools designed to simplify complex development tasks, or to help create specific types of software programs and applications. This is a general term and should not be confused with VeChain's ToolChain, which is a Blockchain-as-a-Service (BaaS) offering tailored for enterprise use.
Total market capitalization
A measurement used to determine the market capitalization of a particular asset or asset class, such as gold. The total market cap of all cryptocurrencies is determined by summing the respective market caps of all individual cryptocurrencies.
A number of coins or tokens that currently exist and are either in circulation or locked somehow. It is the sum of coins that were already mined (or issued) minus the total of coins that were burned or destroyed.
Total value locked (TVL)
A number of assets that are currently staked in a protocol or the total quantity of underlying amount of funds that a Decentralised finance protocol has secured.
A degree to which a third party is able to track the details of a transaction. For instance, blockchain can improve the traceability of supply chains allowing instantaneously tracing the entire lifecycle of food products.
Small files placed there by "third party" advertisers to track a user's browsing habits. They’re generally considered an invasion of privacy.
A trading bot is an application that executes trades automatically within pre-configured parameters. The specific parameters each trading bot is set to can be configured in accordance with its operator's personal trading strategy and proclivities.
A systematic methodology for buying and selling traditional or digital assets. A trading strategy is based on predefined rules and criteria used in making trading decisions. It’s usually built on results of technical and fundamental analysis.
The total number of assets that were bought and sold during a specified period of time. Usually, a trading volume is measured in a 24-hours time frame. Investors often use trading volume to confirm the existence or continuation of a trend or its reversal.
Traditional asset tokens (TATs)
Digital claims to a physical asset and backed by that asset. Gold, crude oil, real estate, stocks, soybeans, or any other real physical asset can be tokenized and become an asset-backed token.
Traditional finance (TradFi)
Standard retail, commercial and investment banks, as well as FinTechs (technology companies operating in the field of finance).
An asset or security that can be divided into smaller parts and subsequently sold to investors. The term is often used to describe a particular class of bonds, where each tranche is associated with a different degree of risk.
A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets in exchange for money. In computer programming, a transaction usually refers to a sequence of information exchange and related work.
Transaction cost analysis (TCA)
A process of examining trade prices to determine whether past trades were arranged at favorable prices. TCA is based on the difference between the value of the transaction at the time the manager decides to complete it and the actual value.
Payment to the network for recording the transaction on the blockchain. Confirming transactions on a blockchain requires computing power provided by miners, powerful computers that form part of the network and confirm its transactions. Miners receive a reward for each confirmed transfer, as well as for a block of transactions.
Transaction ID (TXID)
A unique character string that marks each transaction in the blockchain. Also called a transaction hash. Users can search for any past transactions using the appropriate transaction ID, usually using the Blockchain Explorer.
Transaction input (TxIn)
A part of a transaction that specifies where to find the source of the currency being sent.
A process of changing the unique identifier of a transaction by first changing the digital signature used to create it.
Transaction output (TxOut)
Data that contains instructions for sending bitcoins, like the amount and destination wallet address.
A list of all transactions that have been propagated through a network but not yet included in a block. A transaction pool or mempool contains transactions that have not been mined but have been validated by a transaction processor (or miner).
Transactions per second (TPS)
A number of transactions a blockchain can process per second. This indicator shows the network speed and scalability. For example, there are 10 transactions of Bitcoin per minute. The TPS is 10 transactions/60 seconds = ~0.17 TPS.
Treasury bill (T-Bill)
A short-term debt secured by the U.S. Treasury with a maturity of up to one year. Treasury bills are considered a safe and conservative investment because they are backed by the government.
Treasury bond (T-Bond)
Debt securities issued by the U.S. federal government with a maturity of more than 20 years. Treasury bonds earn periodic interest until maturity, after which the holder is also paid a face amount equal to the principal.
A trend refers to the overall direction of a financial market or an asset’s price. In technical analysis, trends are identified by trend lines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend.
A methodology in technical analysis (TA) used to predict future price movements by observing overall trend data. Trend analysis helps traders and investors make better decisions based on the overall market sentiment.
A line that is drawn on a price chart to signify trends in price action for a specific timeframe. Trend lines are commonly used to determine the upward, sideways, or downward momentum of a price trend.
Triangle (technical formation)
A continuation pattern on a chart that forms a triangular shape. Connecting the start of the upper trendline to the start of the lower trendline completes the two corners. An upper trendline is formed by connecting highs, and a lower trendline is formed by connecting lows.
Any type of malware that hides its true intentions in order to gain unauthorized access to a targeted device or network. In most cases, Trojans look like harmless programs or discretely attach themselves to other software.
Something that doesn’t require trust. No actor has power over the system, and a consensus is reached between the participants who do not need to trust each other. Members of trustless systems don’t know each other. A system uses verifiable information or actions to operate and verify the quality of other participants.
Two-Way Peg (2WP)
A mechanism that allows transferring BTC from the Bitcoin chain to the secondary blockchain and vice versa. In fact, bitcoins are not transferred but are temporarily locked on the Bitcoin blockchain, while the same number of equivalent tokens are unlocked on the secondary blockchain.
A form of cybersquatting targeting people that accidentally mistype a website address directly into their web browser URL field.
The term defines adults who do not use or do not have access to any traditional financial services, including savings accounts, credit cards, or personal checks.
A block on the Ethereum network that is discarded because two blocks were mined almost simultaneously and only one can be verified and become part of the ledger. Ethereum's uncle block is similar to Bitcoin's orphan block. However, miners who generate uncle blocks in Ethereum are rewarded, while miners who mine orphan blocks are not.
A transaction that failed to receive a confirmation on the blockchain within 24 hours.
Individuals who manage their finances through cash transactions instead of established financial services such as checking accounts, savings accounts, credit cards, and loans.
The process by which an individual or legal entity assumes the risk associated with a venture for a fee. Underwriters work in the banking, insurance, and stock markets.
The concept that buyers are more interested in buying a whole unit of a given currency rather than a fractional amount. The term is used to explain why some people buy cheap tokens, although fundamental valuation can show that tokens are not reliable.
Unit of account
A monetary unit of measure of value (such as a coin) in which accounts are maintained and value is stated. Allows you to measure and compare the value of different things.
A ledger that anyone can access and download. Users can send messages to processes and even participate in authentication, verification, and consensus protocol processes.
Unrealized profit & loss
A metric that is used to keep track of the profit or loss of open trading positions on a platform. Generally, unrealized P&L is calculated from when a position is opened until it is closed.
A crypto wallet used for proof of burn consensus. When coins are sent to unspendable addresses, they are not really destroyed or burned but fall into a black hole and can no longer be spent or accessed.
Unspent transaction output (UTXO)
An amount of cryptocurrency that remains after a transaction is executed. A generated result is referenced in a future transaction to spend the funds. The desired payment amount is assigned to the recipient's address, and the unspent tokens are returned to the owner's address.
A service that allows users to send and receive tokens using a specific and easy-to-use self-selected domain name instead of an alpha-numeric wallet address. Unstoppable Domains is powered by the Ethereum and Zilliqa blockchains.
User activated hard fork (UAHF)
A mandatory rule set added by developers to change the node software. These changes make previously invalid blocks become valid after a flag day, which does not require a majority of hash power to be enforced.
User activated soft fork (UASF)
A mechanism where the activation time of a soft fork occurs on a specified date enforced by full nodes; a concept sometimes referred to as the economic majority.
User interface (UI)
User interface (UI) is the point at which human users interact with a computer, website, or application. The goal of an effective user interface is to make the user experience simple and intuitive, requiring minimal effort on the part of the user to get the maximum desired result.
A cryptocurrency that is issued in order to fund the development of the project behind it and that can be later used to purchase a good or service offered by the issuer.
A blockchain validator is someone who is responsible for validating transactions on the blockchain. After the transaction is confirmed, they are added to the distributed ledger. The term mostly identifies the participant of a proof of stake network, in the proof of work concept validators are called miners.
Evidence that a state transition is correct. The presence of validity proofs helps to make sure that the blockchain reflects a correct L2 state, and that a new state can be relied upon and used.
An investment strategy that involves selecting assets that appear to be trading at a price below their intrinsic or book value. Value investors actively seek out assets that they believe are undervalued by the market.
A personalized address created based on a number of parameters set by the owner. They are easily identifiable, but without giving up the blockchain security.
Software or hardware that has been advertised but is not yet available for purchase, either because it is only a concept or because it is still being written or developed. In crypto, vaporware are projects that are never actually developed.
A part of the blockchain architecture used for storing, depositing, and withdrawing various types of cryptocurrency assets, especially in decentralized finance (DeFi) protocols. For example, when a user stakes, lends, borrows, or mints various crypto assets, the DeFi protocol should automatically exchange the correct amount of assets between different parties using smart contracts.
The term is used to describe fintech service providers as they work with financial service firms. Blockchain vendors are companies that provide services to other startups or businesses aiming to use blockchain.
A form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.
Verifiable delay function (VDF)
A cryptographic primitive is built to run a given number of sequential steps which allows the end result to be efficiently verified. To achieve their desired result within a distributed system, verifiable delay functions generally involve three main processes: setup, evaluation, and verification.
Verifiable random function (VRF)
A cryptographic primitive consisting of three related algorithms: key generation, evaluation, verification. This function uses the validation key and other values to ensure that the result of the evaluation function could only be produced by someone with an associated secret key.
Digitally generated code that is sent to a user's email account, mobile device, or computer to validate a login attempt. Verification codes are usually sent via email, text message, or obtained using two-factor authentication (2FA) services such as Google Authenticator.
The ability of a network or device to extend existing hardware or software capabilities by adding additional resources. Vertical scalability can be achieved in a variety of ways, depending on the network/device configuration and the nature of the intended upgrade.
In the context of blockchain, entitlement transfer is the process of issuing tokens that have been postponed for a certain period of time. These tokens are usually intended for the team, partners, and other participants in the blockchain project who actively help in the development of the project.
A Bitcoin that has been received by a miner as a block reward, and has never been spent.
Debit or credit cards created entirely online. They work just like traditional payment cards without the need for physical card.
A computer resource that uses software instead of a physical computer to run programs and deploy applications.
Someone who has acquired 1% of 1% (0.01%) of the maximum supply of a cryptocurrency. It was first mentioned on the BitcoinTalk forum when user Vladimir suggested that owning 1% of 1% of the maximum bitcoin supply was a good idea.
The degree of uncertainty or risk associated with the magnitude of the change in the value of an asset. It shows how quickly and how much the price of an asset changes and is usually calculated in terms of standard deviations of the asset's annual return over a given period of time.
Volume Weighted Average Price (VWAP)
A benchmark that calculates the average price at which an asset has traded throughout the day, based on both volume and price. VWAP can serve as a benchmark for identifying various support and resistance levels by automatically averaging the intraday closing prices of an asset over time.
Vulnerability rewards program (VRP)
An initiative offered by many websites that rewards individuals for discovering and reporting software bugs. Important for crypto industry where security needs to be on the highest level possible.
Stands for we are going to make it. The acronym is widely used by the crypto community to build confidence, and encourage the community to not lose hope.
A digital wallet that allows users to store, manage, and trade their cryptocurrencies. Different types include software wallets, hardware wallets, and paper wallets.
A personally defined list of values to watch over for activity or changes. Also, it’s a feature of some websites where users can create their own lists of cryptocurrencies to follow.
Traders or investors who lack the confidence to hold their assets or to follow their trading plans. A slang that describes people that panic and sell crypto instead of continuing to hodl as the value of the asset goes down.
A requirement found on Proof of Stake (PoS) blockchains, where nodes need to rely on other nodes to determine what is the current state of the system.
An investment advisory service that combines other financial services to meet the needs of high net worth clients. The consultant gathers information about the client's desires and develops an individual strategy using appropriate financial products and services.
A category of electronic devices that can be worn as accessories, embedded in clothing, implanted in the user's body, or even tattooed on the skin. The devices are hands-free gadgets with practical uses, powered by microprocessors and enhanced with the ability to send and receive data via the internet. In crypto, hardware wallets can often be in different forms and shapes.
The term used to refer to the first stage of development on the World Wide Web that was characterized by simple static websites. In Web 1.0 data was primarily read-only pages connected with hyperlinks. Also known as “read-only” web.
Web 2.0 describes the state of the Internet that has more user-generated content and more usability for end-users than its predecessor, Web 1.0. Web 2.0 is also known as the “read and write” web.
Web 3.0 represents the next after Web 2.0 iteration or phase in the evolution of the Web/Internet. Web 3.0 is built on the core concepts of decentralization, openness, and ownership.
A type of cryptocurrency wallet that is accessible via a web browser. Many web wallets are custodial services run by cryptocurrency exchanges.
An advanced technology that allows you to open a two-way interactive communication session between the user's browser and the server. With this API, you can send messages to the server and receive event-driven responses without having to poll the server for a response.
Wedge (technical formation)
A pattern in technical analysis (TA) that is forming at the top or bottom of the trend. It often signifies a reversal in the price.
The smallest possible unit of Ether (ETH). One ether = 1,000,000,000,000,000,000 Wei (1018). The other way to look at it is one Wei is one quintillionth of an ether.
Wen is the term used by NFT enthusiasts to signal their curiosity about the next steps of a project or roadmap.
An individual or organization that holds a large number of Bitcoins or other cryptocurrencies. Whales can influence the market price by trading large amounts simultaneously.
A slang referring to the moment when cryptocurrency holders become rich enough to buy a Lamborghini. Often asked by the community after some good news in expectations of coin price increase.
The vertical lines that run above and below the body of a candlestick price chart. The whiskers represent the highest and lowest points recorded within the chosen period.
White hat computer hacker
Someone who uses hacking skills to identify security vulnerabilities in hardware, software, or networks while complying with the rule of law applicable to hacking. A hacker that looks for weaknesses to help you protect yourself instead of exploiting it.
Products that are manufactured by one company and sold by other companies under different brand names. Often related to different digital finance products that can be bought as whitelabel solutions.
A list of trusted people, organizations, computer systems, or even cryptocurrency addresses. Whitelists are typically associated with a certain program, incident, or piece of material.
An introductory document for a brief explanation of a problem and possible solution. Each cryptocurrency has this technical document that contains all the information about it. The whitepaper sheds light on two main aspects of the crypto project - its purpose and the technology behind it.
Banking services between commercial banks and other financial institutions. This type of banking deals with larger clients such as large corporations and other banks, while retail banking caters to individuals or small businesses.
A line on a candlestick chart that is used to indicate where the price of an asset fluctuates in relation to its open and close prices. A vertical line that helps you visualize the upper and lower ranges of price action.
A process of returning DeFi tokens to their original form, which involves multiple platforms as well as other tokens.
Crypto can be wrapped for use in DeFi and DApps. Wrapping a token is necessary to make it compatible with Ethereum-based networks. The difference between a BTC and wBTC (wrapped bitcoin) is that the latter is an ERC20. If a user decides they want to unwrap their wBTC, the issuer of the wBTC will burn it and return the BTC back to the user’s wallet.
Year to date (YTD)
A term that covers the period between the beginning of the year and the current date. YTD covers the first day of the year in question up to the day of calculation. Used on charts setting for different assets.
A simple graph that shows the interest rates on U.S. Treasury bonds over time. The U.S. Treasury updates yield curve rates daily, and investors and economists use the data to draw conclusions about the growth trajectory of the economy.
A means of earning interest on cryptocurrency, similar to savings accounts. Yield farming involves lending or staking cryptocurrency in exchange for interest and other rewards.
Abbreviation of You Only Die Once. The opposite of YOLO. As in “Hey let’s buy that coin, YOLO!” a possible reply “No, YODO dude.”
Is short for You Only Live Once. In the crypto world, YOLO means you are going all in on trading a coin that you hope will be a huge success.
Zero basis risk swap (ZEBRA)
Also called a perfect or actual rate swap. It is a swap between the municipal government and a financial intermediary. Essentially, the municipality agrees to receive from the intermediary a floating (variable) interest rate on a specified amount of the principal. In return, the municipality pays a fixed interest rate to the financial intermediary.
Zero confirmation transaction
Unverified blockchain transaction. A zero-confirmation transaction carries the risk of being overwritten and invalid until mined and should never be considered final when a transactional transaction is executed.
Evidence that the transactions are valid without disclosing any information about these transactions. It ensures the confidentiality of the transaction while maintaining its legitimacy.
An acronym that stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Zk-Snark is cryptographic proof that allows one party to prove that it has certain information without disclosing that information. This proof was made possible using a secret key generated before the transaction took place.
Stands for Zero-Knowledge Scalable Transparent Argument of Knowledge. In simple terms, a zero-knowledge proof can prove something is true without having to reveal what exactly it is proving. More technically, it is a type of cryptographic proof that enables users to share validated data or perform computations with a third party without sharing data with this third party.