Glossary

The A-Z of crypto and blockchain

All Time High

All-Time High (ATH) refers to the highest price that a financial asset has ever reached. The term is used to analyze traditional financial assets like stocks and bonds, as well as digital assets like Bitcoin.

Altcoin

Altcoins refers to any other cryptocurrency apart from Bitcoin. They are called altcoins because they are considered alternative currencies to Bitcoin.

A

Bear Market

A bear market is a lasting downward trend in the market when asset prices are declining and supply is greater than demand.

Blockchain

Blockchain is a digital ledger, capable of tracking the movement of value or information around its network. With control of this network distributed across many points, it cannot be censored.

Blockchain Bridge

A blockchain bridge connects two separate blockchain networks and enables the transfer of data and tokens between the different networks. Blockchain bridges facilitate interaction and the ability to operate between networks (commonly referred to as “interoperability”).

B

Central Bank Digital Currency (CBDC)

A Central Bank Digital Currency (CBDC) is the electronic version of a country’s fiat currency, and is issued by the central government. CBDCs are like cryptocurrencies, but their value is tied to the country’s physical currency.

Cold Wallet

A cold wallet also referred to as “cold storage” is A device or system that secures crypto private keys offline.

C

Decentralized Finance

Decentralized Finance (DeFI) refers to financial applications and services that are built on a blockchain and operate without a central governing authority (hence, “decentralized”).

DYOR

DYOR (Do Your Own Research) is a common crypto slang referring to the idea that investors should conduct extensive research before investing in a project.

D

ERC-20 Tokens

ERC-20 tokens is the technical standard for fungible digital tokens that run only on the Ethereum blockchain network. They are built on smart contracts that keep track of the tokens created on the Ethereum network.

ERC-721

ERC-721 is the token standard used on Ethereum to create non-fungible tokens (NFTs). Each token created using the ERC-721 standard is unique and not interchangeable.

E

Fear Of Missing Out (FOMO)

FOMO stands for the “fear of missing out,” which is the anxiety or fear traders experience when they think they are missing out on a profitable investment or trading opportunity.

Flash Loan

Flash loans allow you to borrow crypto assets without collateral or borrowing limits within the DeFi space. The lending condition is that you pay back the loan within the same blockchain transaction.

F

Gas

Gas in crypto refers to the fee paid by users for computational power required to complete transactions on the Ethereum network. These fees are then used to pay block rewards to the validator nodes.

Gas Fee

A gas fee is the amount you pay to complete a transaction on a blockchain.

G

Hot Storage

Hot storage, also known as a “hot wallet” is a crypto wallet that is connected to the internet, allowing users to manage their crypto assets online.

Hot Wallet

A hot wallet is a crypto wallet that secures crypto private keys within an interface that is connected to the internet.

H

Impermanent Loss

Impermanent loss is a risk that occurs when participating in DeFi liquidity pools. It happens when the price of your deposited assets change from the time you deposited them.

Interoperability

Blockchain interoperability refers to the ability to share or see information across different blockchains. It allows blockchains to communicate, share data, and build on each other’s features and use cases.

I

Jager

Jager is a unit of measurement which represents a fraction of the cryptocurrency BNB (Binance Coin).

Joy Of Missing Out (JOMO)

Joy of missing out (JOMO) is a term that describes crypto enthusiasts who are happy they missed out on a plummeting coin or trade.

J

Keylogger

A keylogger is a tool deployed by hackers to record keystrokes and access sensitive data from a victim’s computer. In the crypto industry, cybercriminals often use it as an instrument to steal important information.

Know Your Customer (KYC)

KYC or “Know Your Customer” is a procedure used within financial institutions to confirm their customers’ identities and prevent fraudulent activity.

K

Ledger

A ledger is a digital or physical log that records transactions associated with a financial system. Blockchain networks are a type of decentralized ledger system designed to store data securely.

L

Mainnet

A Mainnet is a blockchain that is independent, complete, and runs by itself, where all crypto transactions are broadcasted, verified, processed, and recorded on its distributed ledger.

Market Capitalization

Market capitalization is a measure of the total value of a cryptocurrency. It is calculated by multiplying the current market price of a coin by its available supply.

M

Non-Custodial Wallet

Non-Custodial wallets, also known as self-custodial wallets, are crypto wallets that give you complete control over your public and private keys, and subsequently full control over your crypto wallet and assets.

Non-Fungible Token (NFT)

An NFT, or non-fungible token, is a digital asset that represents ownership of a unique item or asset including art, music, in-game items, and other forms of media.

N

Off-Chain Transaction

Off-chain transactions is a transfer of value or data, including transactions, that occurs outside a given blockchain network.

Oracle

Oracles are bridges that connect blockchains and smart contracts with external systems and off-chain data. They are third-party services that transmit information from external sources into smart contracts to help them execute based on predefined conditions.

O

Paper Trading

Paper trading is the practice of simulating trades in cryptocurrencies or other financial instruments, like stocks, without investing real money. Paper trading helps users practice trading strategies before investing with actual funds.

Private Key

A private key is a string of characters that allows you to access and manage your digital assets. It is used to sign transactions and provide proof of ownership for the corresponding cryptocurrencies.

P

QR Code

A quick response (QR) code is a type of barcode with encoded information that can easily be read by a mobile or device. In crypto, a QR code can be used to share wallet addresses and make payment.

Q

Rekt

Rekt is crypto slang that means “to lose most or all of your funds due to a bad investment or trade.”

Rug Pull

A rug pull is a type of crypto scam when founders of a project bring in investors to inflate the value of a project, but later pull their inflated funds and abandon the project, leaving victims with a worthless investment.

R

Seed Phrase

A seed phrase is a collection of randomly generated words that represent all private keys associated with a given crypto wallet; the phrase enables the contents of a crypto wallet to be restored, even if access to the wallet itself is lost.

Smart Contract

A smart contract is an agreement in the form of a computer program that automatically executes when predefined conditions are met.

S

Testnet

A testnet is like a practice version of the main blockchain network. It lets developers test new ideas and features without affecting the main network.

Transactions Per Second (TPS)

Transactions Per Second (TPS) is the number of transactions that a network can process in a second. It is a measurement used to evaluate the transaction speed of a network.

T

Unspent Transaction Output (UTXO)

Unspent Transaction Output (UTXO) refers to the amount of a cryptocurrency that is leftover following a specific transaction.

Utility Token

A utility token, also known as a ‘user token’, serves a specific function that gives holders access to features of a decentralized application or ecosystem and forms the economy of that system. This could include a DEX, metaverse platform or blockchain based Web3 platform.

U

Volatility

Volatility is a measure of how much an asset’s price fluctuates over time. It describes how much and how quickly a particular asset’s value can shift.

V

51% Attack

A 51% attack is a type of attack on a blockchain network, wherein a single person or a group of people try to gain control of a network, generally in order to commit malicious acts, such as double-spending.

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