The most comprehensive crypto glossary for Advanced level
The most comprehensive crypto glossary out there.
Oracle
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.
Category:
Level: Advanced
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.
Category:
Level: Advanced
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.
Category:
Level: Advanced
MetaMask
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.
Category:
Level: Advanced
Liquidity mining
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.
Category:
Level: Advanced
Link (Chainlink)
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.
Category:
Level: Advanced
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.
Category:
Level: Advanced
Vertical scalability
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.
Category:
Level: Advanced
Vesting
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.
Category:
Level: Advanced
Lightning Network
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.
Category:
Level: Advanced
Layer 2
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.
Category:
Level: Advanced
Layer 1
A main blockchain network such as Bitcoin, Ethereum, Cardano, or Solana, which contains a set of solutions over the layer 0 base protocol.
Category:
Level: Advanced
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.
Category:
Level: Advanced
Weak subjectivity
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.
Category:
Level: Advanced
Kyber Network
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).
Category:
Level: Advanced