1
13th Word (Definition Only)
A common term for a BIP39 passphrase when used with a 12-word recovery phrase, providing an additional layer of security and allowing for the creation of hidden wallets.
2
25th Word (Definition Only)
A common term for a BIP39 passphrase, which acts as an extra layer of security beyond the standard 24-word recovery phrase.
5
51% Attack (Definition Only)
When a group gains control of more than half of a network's mining power to disrupt the ledger.
A
Aave (Definition Only)
A decentralized non-custodial liquidity protocol where users can participate as depositors (lenders) or borrowers.
Account Abstraction (Definition Only)
An Ethereum upgrade allowing wallets to work like smart contracts, enabling recovery or paying gas in stablecoins.
Accumulation (Definition Only)
A market phase where institutional investors buy large quantities of an asset over time, often after a period of price decline.
Adam Back (Definition Only)
The inventor of Hashcash (used in Bitcoin mining) and CEO of Blockstream; a central figure in the history of cryptography and Bitcoin.
Address (Definition Only)
A string of alphanumeric characters representing a destination on the blockchain for assets.
Air-Gapped (Definition Only)
A security measure where a device has never been connected to the internet or any other network.
Airdrop (Definition Only)
The distribution of digital assets to a large number of wallet addresses, typically used as a marketing or governance tool.
Algorithm (Definition Only)
A set of rules or instructions designed to perform a specific task, such as securing a network or maintaining a stablecoin's peg.
Algorithmic Stablecoin (Definition Only)
A stablecoin that uses algorithmic expansion and contraction of supply to maintain its price peg rather than physical reserves.
Algorithmic Trading (Definition Only)
The use of computer programs and systems to execute trading strategies at speeds and frequencies that are impossible for a human trader. This includes simple strategies like TWAP as well as complex high-frequency trading (HFT) models.
All-Time High (Definition Only)
The highest price point an asset has ever reached in its trading history.
Allowance (Definition Only)
The specific amount of tokens a user permits a smart contract to spend from their wallet, common in DeFi interactions.
Altcoin Season (Definition Only)
A period in the cryptocurrency market where altcoin prices rise significantly faster than Bitcoin's price, often accompanied by a decline in Bitcoin dominance.
AML (Definition Only)
Anti-Money Laundering; a set of laws and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income.
Automated Market Maker (AMM)
A decentralized exchange (DEX) protocol that replaces traditional order books with user-funded liquidity pools. AMMs use mathematical formulas like the Constant Product Formula ($x * y = k$) to price assets automatically.
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Amnesic Operating System (Definition Only)
A privacy-focused OS, like Tails, designed to leave no trace on the computer's hardware after the session is closed.
Anonymous (Definition Only)
A state where an individual's identity is unknown or not publicly disclosed.
Anonymous Team (Definition Only)
A project development team that does not reveal their real-world identities. While common in privacy-focused sectors, an anonymous team can increase the risk of a rug pull or scam due to a lack of legal or social accountability.
Anthony Di Iorio (Definition Only)
An early Bitcoin investor and one of the eight co-founders of Ethereum; he provided initial funding and later founded Decentral and the Jaxx wallet.
Ape (Definition Only)
Slang for an investor who buys into a project or token heavily and quickly, often without doing much due diligence.
API (Definition Only)
Application Programming Interface; a set of protocols that allows different software applications to communicate and share data.
APR (Definition Only)
Annual Percentage Rate; the yearly interest rate earned on an investment without accounting for the effect of compounding.
APY (Definition Only)
Annual Percentage Yield; the real rate of return earned on an investment, taking into account the effect of compounding interest.
Arbitrage (Definition Only)
The simultaneous purchase and sale of an asset in different markets to profit from price discrepancies.
Arweave (Definition Only)
A decentralized storage network that seeks to provide a platform for the indefinite storage of data through a 'pay-once-store-forever' model.
ASIC (Definition Only)
Application-Specific Integrated Circuit; specialized hardware designed for a single purpose, such as mining Bitcoin efficiently.
Asset-Backed Tokens (Definition Only)
Digital tokens that represent ownership of a physical or underlying financial asset, such as gold or real estate.
ATH (Definition Only)
All-Time High; the highest price an asset has ever reached in its trading history.
Atomic Swap (Definition Only)
A smart contract technology that enables the exchange of one cryptocurrency for another without the need for a centralized intermediary.
Attestation (Definition Only)
A vote cast by a validator in favor of a specific block and the network state.
Audit (Definition Only)
A formal examination of a project's code, financials, or operations to ensure security, transparency, and compliance.
Audit Scope (Definition Only)
The specific set of smart contracts, functions, and files that a security firm is hired to review. A common 'red flag' in project security is an audit that only covers a small, harmless portion of the code while leaving critical functions—like those controlling fund withdrawals or 'God Mode' privileges—completely unverified.
Avatar (Definition Only)
PFP or Profile Picture; a digital representation of a user in virtual environments or social platforms, often used in Web3 and Metaverse contexts.
Actively Validated Services (AVS) (Definition Only)
Individual services or systems secured by EigenLayer's restaking mechanism, such as oracles, sidechains, or bridges.
B
Back-Running (Definition Only)
A form of MEV where a bot places a transaction immediately after a specific target transaction to profit from the resulting state change.
Backward Compatibility (Definition Only)
A design property that allows new software or protocol upgrades to remain compatible with older versions or hardware.
Bagholder (Definition Only)
An investor who continues to hold an asset that has significantly decreased in value, often until it becomes worthless.
Base Currency (Definition Only)
The first currency quoted in a trading pair (e.g., BTC in BTC/USD), used as the reference for the transaction's value.
Base Fee (Definition Only)
The minimum amount of ETH required for transaction inclusion, which is then burned.
Beacon Chain (Definition Only)
The layer of Ethereum's PoS system that coordinates the network's validators.
Bear (Definition Only)
An investor who expects prices to fall and may seek to profit from a downward trend.
Bear Market (Definition Only)
A market condition characterized by prolonged price declines and widespread investor pessimism.
Binary Options (Definition Only)
A type of option where the payoff is either a fixed monetary amount or nothing at all, based on whether the asset meets a certain condition.
BIP (Definition Only)
Bitcoin Improvement Proposal; a formal document for proposing changes to the Bitcoin protocol or providing information to the community.
BIP32 (Definition Only)
The Bitcoin Improvement Proposal that introduced Hierarchical Deterministic (HD) wallets, allowing a tree of keys from a single seed.
BIP39 (Definition Only)
The industry standard for generating mnemonic seed phrases used by almost all modern crypto wallets.
BIP39 Passphrase
An optional user-defined string used to salt a seed phrase, creating separate, hidden wallets from the same master backup.
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BIP44 (Definition Only)
A Bitcoin Improvement Proposal that defines a logical hierarchy for deterministic wallets. It allows a single seed phrase to manage multiple accounts across multiple different cryptocurrencies (coins).
BIP85 (Definition Only)
A standard for deriving multiple new seed phrases from a master backup for improved security management.
Bit Gold (Definition Only)
A proposal for a decentralized digital currency designed by Nick Szabo in 1998; while never implemented, it introduced many concepts later used in Bitcoin, such as Proof of Work and time-stamping.
Bitcoin (Definition Only)
The foundational asset and network; the first decentralized, peer-to-peer digital currency.
Bitcoin Cash (BCH) (Definition Only)
A cryptocurrency created in 2017 through a hard fork of the Bitcoin blockchain; it was designed to increase the block size limit to allow for more transactions and lower fees.
Bitcoin Core (Definition Only)
The primary software client used to connect to the Bitcoin network and run a node; it is the direct descendant of the original software released by Satoshi Nakamoto.
Bitcoin Dominance (Definition Only)
The ratio of Bitcoin's market capitalization to the total market capitalization of all other cryptocurrencies.
Bitcoin Halving (Definition Only)
An event occurring every four years where the reward for mining new Bitcoin blocks is cut in half, reducing the rate of new supply.
Bitcoin Mining (Definition Only)
The process by which new bitcoins are entered into circulation and transactions are verified and added to the blockchain ledger through the resolution of complex mathematical puzzles.
Blacklist (Definition Only)
A list of addresses or entities identified as malicious or prohibited from interacting with a protocol or participating in certain activities.
Blind Signing (Definition Only)
The act of approving a transaction without seeing the full technical details.
Blobs (Definition Only)
Large, temporary data packets designed to make Layer-2 transactions cheaper on Ethereum.
Block (Definition Only)
A container for data on a blockchain that records a group of transactions and links to the previous block.
Block Explorer (Definition Only)
An online tool allowing anyone to view real-time and historical data on a blockchain.
Block Height (Definition Only)
The number of blocks preceding a particular block in the blockchain, representing the network's total length.
Block Reward (Definition Only)
The amount of cryptocurrency awarded by the network to a miner or validator for successfully processing a new block.
Block Size Wars (Definition Only)
A period of intense debate within the Bitcoin community (2015–2017) over scaling the network; it resulted in a hard fork and the creation of Bitcoin Cash (BCH).
Block Time (Definition Only)
The average time it takes for a blockchain network to generate and append a new block to the ledger.
Blockchain (Definition Only)
A distributed, immutable digital ledger that records transactions across a network of computers.
Blockchain Trilemma (Definition Only)
The trade-off between security, scalability, and decentralization where a network optimizes for two of three.
Blue Chip (Definition Only)
A term borrowed from traditional finance referring to assets that are considered nationally recognized, well-established, and financially sound. In the cryptocurrency market, Bitcoin (BTC) and Ethereum (ETH) are the primary blue chips, characterized by high liquidity, large market caps, and a long-standing 'track record' of security.
Botnet (Definition Only)
A network of private computers infected with malicious software and controlled as a group without the owners' knowledge.
Bots (Definition Only)
Automated software programs designed to perform repetitive tasks, such as executing trades or monitoring market data.
Bottom (Definition Only)
The lowest price point an asset reaches during a market cycle or price correction.
BRC-20 (Definition Only)
An experimental token standard for the Bitcoin blockchain that uses Ordinal inscriptions to enable the minting and transfer of fungible tokens.
Browser Extension (Definition Only)
A small software module for customizing a web browser, frequently used for Web3 wallets like MetaMask.
Browser Hijacking (Definition Only)
A form of malware that modifies a web browser's settings without a user's permission to inject ads or steal data.
Bug Bounty (Definition Only)
A program that offers financial rewards to ethical hackers ('white hats') for finding and reporting vulnerabilities in a project's code. A well-funded, active bug bounty program is a strong security signal, as it provides continuous, crowdsourced auditing.
Builder (Definition Only)
In the context of Maximum Extractable Value (MEV), a builder is a specialized entity that bundles transactions into blocks and submits them to relays to be proposed by validators.
Bull (Definition Only)
An investor who expects prices to rise and buys assets with the intention of selling them later at a higher price.
Burn (Definition Only)
The process of permanently removing tokens from circulation to manage inflation.
Burn Address / Null Address (Definition Only)
A public wallet address for which no private key exists; any tokens sent to a burn address are permanently removed from the circulating supply.
Burn Wallet (Definition Only)
A temporary, 'disposable' wallet used for interacting with unverified sites.
Burner Wallet (Definition Only)
A temporary cryptocurrency wallet used for a single transaction or short-term purpose, then discarded. It minimizes risk by holding minimal funds and avoiding reuse.
Buy Tax (Definition Only)
A transaction fee automatically deducted when purchasing a token through a smart contract. These funds are typically diverted to a project's marketing wallet or liquidity pool. While common in 'meme coin' ecosystems, users should verify that the tax is hard-coded and cannot be arbitrarily increased by an admin to 100%, which would effectively create a honeypot.
Buy Wall (Definition Only)
A large limit order or a collection of orders at a specific price level that prevents an asset's price from falling further due to high demand.
Byzantine Fault Tolerance (BFT) (Definition Only)
A system’s ability to remain operational and reach consensus despite failing or malicious nodes.
Byzantine Generals Problem
A conceptual challenge where distributed nodes must reach agreement despite the presence of malicious actors.
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C
Call Option (Definition Only)
A financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price within a specific timeframe.
Calls (Definition Only)
Financial contracts that give the buyer the right, but not the obligation, to purchase an asset at a specified price.
Candlesticks (Definition Only)
A type of financial chart used to describe price movements of an asset, showing the open, high, low, and close prices for a specific period.
Capital (Definition Only)
Financial assets or resources used for investment or production to generate further wealth or income.
Capital Efficiency (Definition Only)
The ratio of how much output or profit is generated for every dollar of capital deployed, crucial in DeFi liquidity provision.
Capitulation (Definition Only)
A period of intense selling pressure where investors give up their positions, often marking the bottom of a market cycle.
Cardano (ADA) (Definition Only)
A proof-of-stake blockchain platform focused on peer-reviewed research and high-assurance code development.
Casascius Coin (Definition Only)
A physical Bitcoin collectible created by Mike Caldwell, containing a private key hidden under a tamper-evident hologram.
Central Bank Digital Currency (CBDC) (Definition Only)
A digital form of a country's sovereign currency issued and regulated by the central bank.
Censorship Resistance (Definition Only)
The property of a network that prevents any single entity from blocking transactions or removing content from the ledger.
Central Bank (Definition Only)
A national institution that manages a state's currency, money supply, and interest rates.
Centralization (Definition Only)
The concentration of control, authority, or data within a single entity or group.
Centralized Exchange (CEX) (Definition Only)
A platform managed by a central organization that facilitates the trading of cryptocurrencies and often provides custodial services.
CFD (Definition Only)
Contract for Difference; a financial derivative that allows traders to speculate on price movements without owning the underlying asset.
Commodity Futures Trading Commission (CFTC) (Definition Only)
A US federal agency that regulates the derivatives markets, including futures and options, often overseeing Bitcoin as a commodity.
Chain ID (Definition Only)
A unique numerical identifier used to distinguish between different blockchain networks and prevent replay attacks.
Chain Split (Definition Only)
A divergence in a blockchain's transaction history, occurring when two or more versions of the chain exist simultaneously, often due to a fork.
Change Address (Definition Only)
An address used in UTXO-based blockchains (like Bitcoin) to receive the remaining balance from a transaction output.
Charles Hoskinson (Definition Only)
An original co-founder and former CEO of Ethereum who later founded IOHK to develop Cardano (ADA), focusing on a research-first approach to blockchain design.
Checkpoint (Definition Only)
A specific block in PoS that validators agree upon as finalized to prevent reorganizations.
Checksum (Definition Only)
A value calculated from a block of data to verify its integrity. It’s used to detect errors that may have occurred during transmission or storage.
Child Seed (Definition Only)
A cryptographic seed derived from a parent seed in a hierarchical deterministic wallet to create separate accounts.
Circulating Supply (Definition Only)
The number of tokens that are currently available to the public and circulating in the market.
Cliff (Definition Only)
A specific duration at the beginning of a vesting schedule during which no tokens are released to the holder. Once the cliff period expires, a predetermined portion of the tokens 'vest' or unlock all at once, followed by a gradual release of the remaining assets.
CLOB DEX (Definition Only)
A Decentralized Exchange (DEX) that utilizes a Central Limit Order Book (CLOB) matching engine rather than an AMM, offering a trading experience closer to centralized exchanges while maintaining on-chain settlement.
Central Limit Order Books (CLOBs) (Definition Only)
A transparent execution method that matches all bids and offers according to price and time priority, commonly used by centralized exchanges.
Closed Source (Definition Only)
Software where the source code is not made available to the public. In cryptocurrency, closed-source protocols are a significant red flag, as they prevent the community from verifying how funds are handled, checking for 'God Mode' backdoors, or performing independent security audits. It forces users to trust the developers' word rather than the code itself.
Cloud Mining (Definition Only)
A mechanism that allows users to mine cryptocurrencies by renting hardware power from a third-party service provider rather than owning the equipment.
Code Fork (Definition Only)
A software event where developers copy existing source code to start an independent project. In DeFi, this often involves copying the smart contracts of a successful protocol (like Uniswap) to launch a competing platform (like SushiSwap). Many DeFi forks are 'low-effort' clones used by anonymous teams to quickly launch a new token and attract liquidity without providing unique technical value.
Coin-Margined Trading (Definition Only)
A type of derivative trading where the underlying cryptocurrency (like BTC) is used as the collateral and settlement currency, rather than a stablecoin.
Coinbase (Definition Only)
One of the largest and most prominent centralized cryptocurrency exchanges in the United States, providing a bridge between fiat and crypto.
Coinbase Transaction (Definition Only)
The first transaction in a Bitcoin block, created by a miner to collect the block reward and any associated transaction fees.
CoinJoin (Definition Only)
A trustless method of combining multiple Bitcoin payments from multiple spenders into a single transaction. This makes it difficult for outside observers to determine which sender paid which recipient, effectively breaking the link between specific UTXOs.
Cold Storage (Definition Only)
A cryptocurrency wallet that has never had its private keys exposed to the internet.
Collateral (Definition Only)
An asset pledged by a borrower to a lender to secure a loan, which can be seized if the borrower defaults.
Collectibles (Definition Only)
Unique digital or physical items with value based on rarity, historical significance, or aesthetic appeal.
Community (Definition Only)
The collective group of users, developers, and enthusiasts supporting a project. A project's health is often measured by the size, activity, and sentiment of its community on platforms like Discord and Telegram.
Compliance (Definition Only)
The process of adhering to laws, regulations, and guidelines. In privacy-preserving crypto, tools like viewing keys allow users to maintain 'selective disclosure,' proving compliance with tax or AML laws without exposing their entire history.
Composability (Definition Only)
The ability of different decentralized applications and smart contracts to interact and integrate with one another seamlessly. Often called 'money legos,' composability allows developers to build complex financial products by layering existing protocols (e.g., using a stablecoin from one protocol as collateral in another).
Composability Risk (Definition Only)
The danger that a vulnerability in one DeFi protocol could trigger a 'domino effect' across other interconnected protocols. Because smart contracts often interact with and rely on each other ('money legos'), a single failure or oracle exploit can compromise the security of the entire ecosystem.
Compound Interest (Definition Only)
Interest calculated on the initial principal and also on the accumulated interest from previous periods.
Computation (Definition Only)
The act of performing mathematical or logical calculations, the primary resource consumed by miners and validators.
Concentrated Liquidity (Definition Only)
A DeFi feature (pioneered by Uniswap V3) that allows LPs to provide liquidity within a specific price range rather than across the entire price curve.
Confirmation (Definition Only)
The process of a transaction being included in a block; more mean higher security.
Confirmation Time (Definition Only)
The time elapsed between the submission of a transaction to the network and its inclusion in a block with a sufficient number of subsequent blocks (confirmations).
Consensus (Definition Only)
The process by which a distributed network of nodes agrees on the validity of transactions and the current state of the blockchain.
Consensus Client (Definition Only)
The software client (like Prysm) that implements the Proof of Stake consensus algorithm, allowing a node to stay in sync with the Beacon Chain and validate blocks.
Consensus Failure (Definition Only)
When different parts of the network disagree on rules, potentially causing a blockchain split.
Consensus Layer (Definition Only)
The part of a blockchain protocol responsible for validating transactions and reaching agreement among nodes on the order and content of blocks.
Consensus Mechanism (Definition Only)
The process by which nodes agree on the validity of transactions and the state of the ledger.
Consensys (Definition Only)
A leading Ethereum software company founded by Joseph Lubin, responsible for MetaMask and Infura.
Consolidation (Definition Only)
A market phase where an asset's price trades within a narrow range after a significant move, often indicating a period of indecision before the next trend.
Consortium (Definition Only)
A group of organizations that collaborate to manage a shared private or semi-private blockchain network.
Constant Product Formula (Definition Only)
The mathematical equation (x * y = k) used by automated market makers (AMMs) to price tokens. It maintains a constant product between the quantities of two assets in a liquidity pool, ensuring that liquidity remains available regardless of trade size.
Consumer Price Index (CPI) (Definition Only)
A measure that examines the weighted average of prices of a basket of consumer goods and services to track inflation.
Contract Address (Definition Only)
A unique identifier on a blockchain that represents a specific smart contract. Unlike a wallet address, it does not have a private key and is used to interact with the contract's functions, such as minting tokens or executing trades.
Cosmos (ATOM) (Definition Only)
An ecosystem of independent blockchains that can scale and interoperate with each other through the IBC protocol.
Counterparty (Definition Only)
The other party on the opposite side of a financial transaction. In trading, it's the person or entity you're buying from or selling to.
Counterparty Risk (Definition Only)
The possibility that the other party in a financial transaction will fail to fulfill their obligations, such as not delivering assets or not making payment. It's essentially the risk that your trading partner will default or be unable to complete their side of the deal.
CPU (Definition Only)
Central Processing Unit; the primary component of a computer that performs most of the processing inside the hardware.
Cross-Chain (Definition Only)
Technology that enables the exchange of information and value between different blockchain networks, overcoming silos.
Cross Margin (Definition Only)
A margin mode where the entire balance in a trader's account is used as collateral for all open positions to prevent liquidation.
Crowdfunding (Definition Only)
The practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the internet.
Crypto-Backed Stablecoin (Definition Only)
A stablecoin that maintains its peg by being over-collateralized with other cryptocurrencies (e.g., DAI).
Crypto Exchange (Definition Only)
A platform for trading crypto or converting traditional fiat currency to cryptocurrency.
Crypto Loan (Definition Only)
A financial arrangement where digital assets are used as collateral to borrow either other cryptocurrencies or fiat currency.
Crypto Wallet
An app or device that holds the private keys that control your assets on the blockchain.
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Cryptocurrency (Definition Only)
A digital currency secured by cryptography; it can be decentralized or centralized.
Cryptographic Primitive (Definition Only)
Low-level cryptographic algorithms, such as hash functions and digital signatures, used to build security protocols.
Cryptography (Definition Only)
Securing information by encoding data mathematically, making it readable only to authorized parties.
Cryptojacking (Definition Only)
A type of cyberattack where a hacker secretly uses a victim's computing power to mine cryptocurrency without their knowledge or consent.
Crypto Wars (Definition Only)
A series of political and legal battles in the 1990s regarding the public's right to use strong encryption, which the US government initially classified as an illegal munition.
Counter-Terrorism Financing (CTF) (Definition Only)
A set of regulations and procedures designed to prevent the flow of funds to terrorist organizations, often paired with AML requirements.
Community Takeover (CTO) (Definition Only)
A situation where the original developers of a project exit or abandon it, and the community of holders takes over management and development.
Curve25519 (Definition Only)
A highly efficient elliptic curve used for digital signatures and key exchange. It is widely praised for its security and speed, and it is a core component of privacy-focused protocols like Monero, Signal, and Tor.
Custodial (Definition Only)
A setup where a third party (like an exchange) holds the private keys for the user.
Custodial Wallet (Definition Only)
A wallet where a third party (like an exchange) holds the private keys and manages the user's funds.
Custodian (Definition Only)
A financial institution or service provider that holds and manages digital assets on behalf of its clients, ensuring security and compliance.
Cypherpunk (Definition Only)
An activist group or individual advocating for the widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change.
Cypherpunks Mailing List (Definition Only)
An online forum established in 1992 where activists and cryptographers discussed privacy, technology, and politics; it served as the incubator for many ideas that led to Bitcoin.
D
DAI (Definition Only)
A decentralized, crypto-collateralized stablecoin on Ethereum managed by the MakerDAO system.
Danksharding (Definition Only)
Ethereum's roadmap focused on creating massive space for Rollup data packets.
DAO (Definition Only)
Decentralized Autonomous Organization; an organization governed by rules encoded on a blockchain.
dApp (Definition Only)
Decentralized Application; an application built on a decentralized network using smart contracts.
Dark Web (Definition Only)
A subset of the deep web that is intentionally hidden and requires specific software (like Tor) to access, often associated with anonymous activity.
Darknet Market (Definition Only)
An online marketplace operating on an encrypted network like Tor, often using cryptocurrency for anonymous transactions; historically significant in early Bitcoin adoption.
Data Availability (Definition Only)
The guarantee that data required to verify a block is accessible to all network participants.
Data Feed (Definition Only)
A continuous stream of data, such as market prices, provided by an oracle to a smart contract.
David Chaum (Definition Only)
The 'Godfather of Privacy' who invented blind signatures and created DigiCash, the first attempt at an anonymous digital currency and a precursor to Bitcoin.
Day Trading (Definition Only)
The practice of buying and selling financial instruments within the same trading day to profit from short-term price fluctuations.
DCA (Definition Only)
Dollar-Cost Averaging; an investment strategy of buying a fixed dollar amount of an asset at regular intervals, regardless of price.
DDoS (Definition Only)
Distributed Denial of Service; a malicious attempt to disrupt the normal traffic of a server or network by overwhelming it with a flood of internet traffic.
De-Anonymization (Definition Only)
The process of using data mining and metadata analysis to link a pseudonymous blockchain address to a real-world identity.
Dead Cat Bounce (Definition Only)
A temporary recovery in asset prices after a major decline, which is often followed by a continued downward trend.
Death Cross (Definition Only)
A bearish technical indicator that occurs when a short-term moving average crosses below a long-term moving average.
Decentralization (Definition Only)
The distribution of power across a network rather than being controlled by a single central authority.
Decentralized ID (DID) (Definition Only)
A self-sovereign digital identity that allows users to control their personal data without a central authority.
Decentralized Order Book (Definition Only)
A trading mechanism that matches buy and sell orders directly on a blockchain or peer-to-peer network rather than through a central authority.
Decentralized Web (Definition Only)
An evolving concept for a new internet where users control their own data and identity through P2P protocols.
Deep Web (Definition Only)
The portion of the internet not indexed by standard search engines, including private databases, password-protected sites, and legal but unlisted content.
DeFi (Definition Only)
Decentralized Finance; permissionless financial services built without traditional banks.
Deflation (Definition Only)
A decrease in the general price level of goods and services or, in a crypto context, a reduction in the total supply of a token over time. Deflationary tokens often use 'burn' mechanisms or buy-backs to permanently remove coins from circulation, theoretically increasing scarcity and value.
Degen (Definition Only)
Short for 'degenerate'; slang for a trader who engages in high-risk, speculative crypto investments, often with little research or caution.
Depeg (Definition Only)
The situation where a stablecoin's market price deviates significantly from its intended fixed value, such as dropping below $1.00 USD.
DePIN (Definition Only)
Decentralized Physical Infrastructure Networks; projects that use tokens to incentivize the building and operation of real-world physical infrastructure.
Depth Chart (Definition Only)
A visual representation of an order book that shows the cumulative volume of buy and sell orders at different price levels.
Derivation Path (Definition Only)
The mathematical 'map' a wallet uses to generate specific addresses from a single seed phrase.
Derivatives (Definition Only)
Financial contracts whose value is derived from an underlying asset, such as futures, options, or swaps.
Deterministic Wallet (Definition Only)
A type of wallet that derives all its private keys from a single starting point, known as a seed or mnemonic phrase, making backups easy.
Developer (Definition Only)
An individual or group responsible for writing code and building software, protocols, or decentralized applications.
DEX (Definition Only)
Decentralized Exchange; a platform for trading crypto directly via smart contracts.
DEX Aggregator (Definition Only)
A service that searches across multiple decentralized exchanges to provide traders with the best possible prices and lowest slippage for their trades.
Diamond Hands (Definition Only)
A slang term for an investor who refuses to sell an asset despite high volatility or significant price drops.
Difficulty (Definition Only)
A measure of how hard it is to find a hash below a given target in a proof-of-work blockchain, which adjusts to maintain consistent block times.
Difficulty Adjustment (Definition Only)
A protocol feature that recalibrates the computational effort required to mine a block to keep block times consistent.
DigiCash (Definition Only)
An early electronic cash company founded by David Chaum in 1989; it pioneered blind signatures to provide untraceable digital transactions but ultimately failed due to its centralized nature.
Digital Artifacts (Definition Only)
A term often used to describe Bitcoin Inscriptions (Ordinals). Unlike standard NFTs, which often point to external storage, digital artifacts are stored entirely on-chain, making them immutable and permanent.
Digital Assets (Definition Only)
Any item of value that exists in a binary format, including cryptocurrencies, tokens, and digital collectibles.
Digital Currency (Definition Only)
A form of currency that exists only in digital or electronic form, encompassing both centralized (CBDCs) and decentralized (cryptocurrency) assets.
Digital Identity (Definition Only)
A digital representation of an individual or entity, often managed on a blockchain to provide secure, verifiable, and sovereign control over personal data.
Digital Signature (Definition Only)
A mathematical scheme used to demonstrate the authenticity of a digital message or transaction.
Discord (Definition Only)
A communication platform widely used for cryptocurrency community building and project updates. Because of its popularity, it is a primary target for phishing attacks, malicious bots, and fake 'moderator' accounts.
Distributed Ledger (Definition Only)
A digital system for recording transactions where the data is replicated and synchronized across multiple independent nodes in a network.
Diversification (Definition Only)
A risk management strategy that mixes a wide variety of investments within a portfolio.
Distributed Ledger Technology (DLT) (Definition Only)
A digital system for recording the transaction of assets in which the transactions and their details are recorded in multiple places at once.
DOJ (Definition Only)
The United States Department of Justice; the federal agency responsible for enforcing laws and investigating financial crimes, including crypto fraud.
Domain Spoofing (Definition Only)
An attack where a malicious website mimics the appearance and URL of a legitimate site to deceive users. This is often used in conjunction with wallet drainers to steal assets from unsuspecting visitors.
Doxxing (Definition Only)
The act of revealing the real-world identity of an otherwise anonymous individual or team. In the context of project security, a 'doxxed team' is often considered more credible than an anonymous one.
dPOS (Definition Only)
Delegated Proof of Stake; a consensus mechanism where token holders vote for a small number of delegates to validate transactions and secure the network.
Drainer (Definition Only)
A type of malicious script or contract designed to siphon all assets from a user's wallet once they approve a transaction.
Due Diligence (Definition Only)
The process of thoroughly investigating a project, team, or asset before committing capital or trust. In cryptocurrency, this involves auditing smart contracts, verifying team credentials (track record), analyzing tokenomics, and scrutinizing community sentiment to identify potential red flags or scams.
Dust (Definition Only)
Tiny amounts of cryptocurrency that are so small they cost more in transaction fees to spend than they are worth. Malicious actors sometimes use 'dust' to perform 'dusting attacks' aimed at de-anonymizing wallet owners.
Dusting Attack (Definition Only)
A type of attack where a malicious actor sends tiny amounts of crypto (dust) to many wallets to track their movements and deanonymize users.
DYOR (Definition Only)
Do Your Own Research; a common phrase in the crypto community encouraging individuals to investigate projects before investing.
E
eCash (Definition Only)
An early digital cash system created by David Chaum, pioneering the use of blind signatures for privacy.
Elliptic Curve Cryptography (ECC) (Definition Only)
Advanced math that creates secure keys using smaller file sizes than traditional encryption, making blockchains faster and more efficient.
Eclipse Attack (Definition Only)
A network-level attack where a malicious actor isolates a specific node by surrounding it with attacker-controlled nodes. This prevents the victim node from receiving legitimate data from the rest of the network, potentially leading to double-spend attacks.
Ecosystem (Definition Only)
A network of interacting projects, developers, users, and protocols built around a specific blockchain.
Electronic Frontier Foundation (EFF) (Definition Only)
A leading nonprofit organization founded in 1990 to defend civil liberties in the digital world, focusing on privacy, free expression, and consumer rights.
EigenLayer (Definition Only)
A middleware protocol on Ethereum that enables 'restaking,' allowing ETH stakers to secure other services.
EIP (Definition Only)
Ethereum Improvement Proposal; a formal document describing a proposed change or new feature for the Ethereum network.
EIP-1559 (Definition Only)
An upgrade to Ethereum's fee market that introduced a burned 'base fee' for transactions.
EIP-4844 (Definition Only)
Also known as Proto-Danksharding, it introduces 'blobs' to Ethereum to significantly reduce Layer 2 transaction costs.
Email Spoofing (Definition Only)
A technique used in phishing attacks where the sender's email address is forged to make the message appear as if it came from a trusted source.
Emission (Definition Only)
The rate at which new tokens are created and released into circulation according to a project's predefined schedule.
Encryption (Definition Only)
The process of converting information or data into a code to prevent unauthorized access.
Enterprise Blockchain (Definition Only)
A private or permissioned blockchain used by businesses for supply chain, logistics, or internal record-keeping.
Entropy
A measure of randomness used to ensure that a private key cannot be guessed by a computer.
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Entropy Exhaustion (Definition Only)
When a computer runs out of high-quality random data because too many programs are requesting it at once, forcing the system to use lower-quality, more predictable numbers.
EOA (Definition Only)
An Externally Owned Account is a cryptocurrency wallet controlled by a private key held by a user, rather than by smart contract code. EOAs can initiate transactions, interact with dApps, and sign messages, making them the primary entry point for individuals to the blockchain.
Epoch (Definition Only)
A period of 32 slots (roughly 6.4 minutes) on Ethereum where validators attest to blocks.
Equity (Definition Only)
The value of an ownership interest in a company or asset, representing the amount that would be returned to shareholders if all assets were liquidated.
ERC (Definition Only)
Ethereum Request for Comments; a technical document used by developers to define standards for the Ethereum ecosystem, such as ERC-20.
ERC-20 (Definition Only)
The technical standard used for creating fungible tokens on the Ethereum network.
ERC-4337 (Definition Only)
The Ethereum standard for Account Abstraction, enabling smart contract wallets to function like standard accounts.
ERC-721 (Definition Only)
The technical standard used for creating non-fungible tokens (NFTs) on Ethereum.
Escrow (Definition Only)
A financial arrangement where a third party holds assets on behalf of two other parties who are in the process of completing a transaction.
ETF (Definition Only)
Exchange-Traded Fund; an investment fund traded on stock exchanges that tracks the price of an underlying asset or index.
ETH (Definition Only)
Ether; the native cryptocurrency used to pay for transactions and secure the Ethereum network.
Ethereum (Definition Only)
A global, open-source platform for decentralized applications and smart contracts.
Ethereum Founders (Definition Only)
A group of eight individuals, including Vitalik Buterin, Gavin Wood, and Charles Hoskinson, who co-founded the Ethereum protocol to enable decentralized applications and smart contracts.
EVM (Definition Only)
The Ethereum Virtual Machine; the environment where all smart contracts live and interact.
Exchange Hack (Definition Only)
A security breach of a centralized platform where hackers steal funds from company wallets.
Exchange Traded Products (ETPs) (Definition Only)
Investment vehicles that track underlying assets and trade on traditional stock exchanges, such as ETFs.
Execution Client (Definition Only)
The software client (like Geth) that manages the Ethereum Virtual Machine (EVM), processes transactions, and maintains the current state of the blockchain.
Execution Layer (Definition Only)
The component of the Ethereum network (formerly 'Eth1') responsible for transaction execution, smart contract processing, and state management.
Exit Queue (Definition Only)
A mechanism in Proof of Stake networks that limits how many validators can leave the network at once, ensuring network stability and preventing sudden mass withdrawals.
Exit Scam (Definition Only)
A fraudulent practice where project founders or exchange operators disappear with users' funds after building trust or a large user base.
Exploit (Definition Only)
The use of a software bug or security vulnerability by an attacker to cause unintended behavior or steal assets from a protocol.
F
Fair Launch (Definition Only)
A cryptocurrency launch where everyone has equal access to acquire the coins without pre-mines or insider allocations.
Falling Wedge (Definition Only)
A bullish chart pattern characterized by a narrowing price range and downward-sloping trendlines, often preceding an upward breakout.
Faucet (Definition Only)
A website or application that distributes small amounts of cryptocurrency for free, often used to introduce new users to a network.
Fiat (Definition Only)
Government-issued currency not backed by a physical commodity (e.g., USD, EUR).
Fiat-Backed Stablecoin (Definition Only)
A stablecoin where each token is backed 1:1 by a reserve of traditional currency held in a bank (e.g., USDC).
Finality (Definition Only)
The point at which a transaction is considered irreversible and cannot be removed from the ledger.
Flash Loan (Definition Only)
A type of unsecured crypto loan that requires borrowers to repay the full amount within the same transaction block. Flash loans are used for arbitrage, collateral swapping, and self-liquidation.
Flashbots (Definition Only)
A research and development organization focused on illuminating and democratizing Private Order Flow (MEV) to prevent centralization risks on Ethereum.
FPGA (Definition Only)
Field-Programmable Gate Array; an integrated circuit designed to be configured by a customer or a designer after manufacturing.
Fraud Proof (Definition Only)
A challenge mechanism where participants prove a transaction batch is invalid.
Front-Running (Definition Only)
The practice of placing a transaction in a queue with the knowledge of a pending future transaction to gain an advantage, often executed by bots in a mempool.
FUD (Definition Only)
Fear, Uncertainty, and Doubt; spreading negative info to influence market sentiment.
Full Node (Definition Only)
A node that stores the entire history of a blockchain and independently validates all rules of the network.
Fully Diluted Valuation (FDV) (Definition Only)
The total market value of a cryptocurrency project assuming all possible tokens are in circulation; calculated as Price x Maximum Supply.
Fundamental Analysis (Definition Only)
A method of evaluating an asset by examining related economic, financial, and other qualitative and quantitative factors.
Funding Rate (Definition Only)
A periodic payment made between long and short traders in perpetual futures to keep the contract price close to the spot price.
Fungible (Definition Only)
A property of an asset where individual units are interchangeable and indistinguishable from each other, like Bitcoin or cash.
Futures (Definition Only)
Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.
G
Gas (Definition Only)
The unit of measurement for computational effort required to execute a transaction on Ethereum.
Gas Limit (Definition Only)
The maximum amount of gas that a user is willing to spend on a particular transaction on the Ethereum network; if exceeded, the transaction fails but the gas is still consumed.
Gas Price (Definition Only)
The amount of ETH a user is willing to pay per unit of gas for a transaction.
Gavin Andresen (Definition Only)
The developer hand-picked by Satoshi Nakamoto to lead the Bitcoin project; he served as the primary maintainer of the Bitcoin core code during its early growth.
Gavin Wood (Definition Only)
The co-founder and former CTO of Ethereum who proposed the Solidity programming language and authored the Ethereum Yellow Paper; he later founded Polkadot.
Genesis Block (Definition Only)
The very first block ever recorded on a specific blockchain network.
Geth (Definition Only)
Short for 'Go Ethereum,' Geth is the most popular execution client for the Ethereum network. It allows users to run a full node, mine ether, and interact with the Ethereum blockchain.
GitHub (Definition Only)
A web-based platform used for version control and collaboration, hosting the source code for most blockchain projects.
God Mode (Definition Only)
A high-level administrative privilege within a smart contract that allows a developer or 'Admin' to bypass standard rules. While often used for emergency migrations or bug fixes, 'God Mode' is a critical red flag in decentralized finance (DeFi) as it can be exploited to mint infinite tokens, drain liquidity, or freeze user accounts.
Golden Cross (Definition Only)
A bullish technical indicator that occurs when a short-term moving average crosses above a long-term moving average.
Gossip Protocol (Definition Only)
The peer-to-peer communication method used by nodes to spread information (like new transactions or blocks) across a decentralized network. It ensures that data reaches every participant quickly without requiring a central server.
Governance (Definition Only)
The system of rules, practices, and processes by which a project or decentralized organization is directed and controlled.
Governance Token (Definition Only)
A token giving holders voting rights on the future development and rules of a protocol.
GPG Encryption (Definition Only)
GNU Privacy Guard; an open-source tool for encrypting and signing data and communications, providing high-level privacy and authentication.
GPU (Definition Only)
Graphics Processing Unit; a specialized electronic circuit designed to accelerate image creation, often used for cryptocurrency mining.
Guardian (Definition Only)
A trusted entity (person or device) in social recovery wallets that can help a user regain access to their account.
Gwei (Definition Only)
A small denomination of ETH used for gas prices; one gwei is one-billionth of an ETH.
H
Hal Finney (Definition Only)
A legendary cryptographer and cypherpunk who was the first person to receive a Bitcoin transaction from Satoshi Nakamoto and created the first reusable proof-of-work (RPOW) system.
Hard Fork (Definition Only)
A major network upgrade that is not backward-compatible, requiring all participants to upgrade.
Hardware (Definition Only)
The physical components of a computer system, including the devices used for mining or securing private keys.
Hardware Wallet
A physical device that stores private keys offline, protecting them from online hacking attempts.
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Hash (Definition Only)
A unique digital fingerprint of data; even a tiny change in data creates a totally different hash.
Hash Function (Definition Only)
A mathematical algorithm that maps data of arbitrary size to a bit string of a fixed size.
Hash Rate (Definition Only)
The total computational power being used to mine and process transactions on a Proof of Work blockchain.
Hashcash (Definition Only)
A proof-of-work system invented by Adam Back in 1997 to limit email spam and denial-of-service attacks; it later became a foundational component of Bitcoin's mining algorithm.
Hashrate (Definition Only)
The number of calculations a miner or network performs per second in Proof-of-Work mining.
HD Wallet (Definition Only)
Short for Hierarchical Deterministic wallet; it generates a tree of keys from a single seed phrase for easier management.
Hedge (Definition Only)
An investment position intended to offset potential losses or gains that may be incurred by a companion investment.
High-Frequency Trading (HFT) (Definition Only)
A method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions, often performed by specialized market makers.
History (Definition Only)
The recorded timeline of transactions and blocks that form the immutable ledger of a blockchain.
Honeypot (Definition Only)
A type of scam smart contract designed to trap investors' funds by allowing them to buy a token but preventing them from selling it.
Hosted Wallet (Definition Only)
A cryptocurrency wallet managed by a third-party service provider, which holds the private keys on behalf of the user.
Hot Wallet (Definition Only)
A crypto wallet connected to the internet, offering convenience but higher vulnerability to malware.
Howey Test (Definition Only)
A legal test used in the United States to determine whether a transaction qualifies as an 'investment contract' and is thus a security.
Hashed Timelock Contract (HTLC) (Definition Only)
A type of smart contract used in atomic swaps and the Lightning Network to lock a transaction until certain conditions are met within a timeframe.
I
I2P (Definition Only)
The Invisible Internet Project (I2P) is a decentralized P2P network layer designed for censorship-resistant communication. While Tor focuses on anonymous access to the clearweb, I2P is built for internal 'eepsite' communication using garlic routing.
ICO (Definition Only)
Initial Coin Offering; a fundraising method where a project sells new tokens to investors in exchange for established cryptocurrencies.
Initial Dex Offering (IDO) (Definition Only)
A fundraising method where a project launches its token through a decentralized liquidity exchange.
Immutable (Definition Only)
Unchangeable or unable to be modified after creation. In blockchain, it refers to data that cannot be altered once recorded.
Impermanent Loss (Definition Only)
The temporary loss liquidity providers face when the price of deposited assets changes.
Incentive (Definition Only)
Economic rewards, such as block rewards or fees, designed to motivate participants to act in the network's best interest.
Infinite Approval (Definition Only)
A setting in smart contracts that grants a protocol permission to spend an unlimited amount of a specific token from a user's wallet.
Inflation (Definition Only)
The rate at which the general level of prices for goods and services rises, resulting in a decrease in purchasing power. In crypto, inflation refers specifically to the increase in a token's total circulating supply, which can dilute the value of existing holdings unless offset by increased demand or 'burning' mechanisms.
Inflation Bug (Definition Only)
A technical flaw that could theoretically allow the creation of more than the 21 million BTC limit.
Inflation Rate (Definition Only)
The rate at which new supply is added to a cryptocurrency's total supply over a specific period, often expressed as an annual percentage.
Inflation Schedule (Definition Only)
The predetermined rate at which new tokens are created and entered into circulation. In crypto, this is often managed by a protocol's code (e.g., Bitcoin’s halving) and is a core component of tokenomics that dictates the long-term scarcity or dilution of the asset.
Infrastructure (Definition Only)
The underlying hardware, software, and services (like nodes and RPCs) that allow a blockchain network to operate.
Inscriptions (Definition Only)
The specific data (images, text, JSON) embedded into a satoshi's witness field via the Ordinals protocol, creating a permanent on-chain artifact.
Institutional Custody (Definition Only)
Professional storage services for digital assets, designed to meet the security and regulatory needs of large organizations.
Interest Rates (Definition Only)
The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.
Intermediary (Definition Only)
A third party, such as a bank or broker, that facilitates a transaction between two entities in a traditional financial system.
Interoperability (Definition Only)
The ability of different blockchain networks to communicate, share data, and exchange assets with one another seamlessly.
Intrinsic Value (Definition Only)
The perceived or calculated true value of an asset based on its underlying utility, characteristics, and fundamental factors.
Investment Trust (Definition Only)
A company that owns a portfolio of assets (like Bitcoin) and sells shares to investors, such as Grayscale Bitcoin Trust.
IP Address (Definition Only)
A unique numerical label assigned to each device connected to a computer network, used for identification and location addressing.
InterPlanetary File System (IPFS) (Definition Only)
A peer-to-peer network for storing and sharing data in a distributed file system, making the web faster, safer, and more open.
Initial Public Offering (IPO) (Definition Only)
The process by which a private company offers shares to the public for the first time on a traditional stock exchange.
Isolated Margin (Definition Only)
A margin mode where the risk is limited to a specific position, preventing a single trade's losses from affecting the rest of the account balance.
Issuance (Definition Only)
The process of creating and distributing new coins or tokens according to a protocol's monetary policy.
J
Jeffrey Wilcke (Definition Only)
A co-founder of Ethereum who led the development of Geth (Go Ethereum), the primary software implementation used by the majority of the network's nodes.
Just-In-Time (JIT) Liquidity (Definition Only)
A strategy to provide liquidity to a decentralized exchange (DEX) only when a trade occurs, rather than continuously locking funds in a liquidity pool. This aims to reduce impermanent loss and capital inefficiency by only exposing assets to risk when actively facilitating swaps.
Joseph Lubin (Definition Only)
A co-founder of Ethereum and founder of ConsenSys; he has been a central figure in building the infrastructure, such as MetaMask, that powers the Ethereum ecosystem.
K
Keylogger (Definition Only)
A type of surveillance software that records every keystroke made on a computer, often used by hackers to steal passwords and seed phrases.
Keys (Definition Only)
The cryptographic pairs (public and private) used to send, receive, and secure digital assets.
KYC (Know Your Customer) (Definition Only)
Mandatory identity verification used by regulated platforms to confirm user identity and prevent financial crimes like money laundering.
L
Laszlo Hanyecz (Definition Only)
An early Bitcoin contributor famous for the first real-world BTC transaction (the 10,000 BTC pizza) and for being the first to implement Bitcoin mining on GPUs.
Launchpad (Definition Only)
A platform that helps new cryptocurrency projects raise capital and gain exposure to early-stage investors.
Layer-1 (L1) (Definition Only)
The foundational layer of a blockchain network (e.g., Bitcoin) that handles final settlement.
Layer-2 (L2) (Definition Only)
Secondary frameworks built atop a base layer to increase throughput without compromising security.
Ledger (Definition Only)
A decentralized, immutable record of all transactions across a network, maintained by distributed nodes.
Lending Pool (Definition Only)
A decentralized pool of assets where users can lend their crypto to earn interest or borrow assets by providing collateral.
Leverage (Definition Only)
The use of borrowed funds to increase a trading position's potential return (and risk) beyond what is possible with capital alone.
Leveraged Tokens (Definition Only)
Assets that use derivatives and debt to amplify the returns of an underlying index or cryptocurrency without the need for manual margin management.
Light Node (Definition Only)
A node that downloads only the headers of blocks, relying on full nodes for transaction details.
Lighthouse (Definition Only)
An open-source Ethereum consensus client written in Rust. It plays a critical role in the Proof of Stake system by managing the logic of validators and ensuring network consensus.
Lightning Network (Definition Only)
A 'Layer 2' scaling solution for Bitcoin that enables fast, low-cost transactions by conducting them off-chain and settling them on-chain later.
Limit Order (Definition Only)
An order to buy or sell an asset at a specific price or better, which is not executed until the market price reaches that level.
Lindy Effect (Definition Only)
A concept stating that the future life expectancy of a non-perishable thing (like a technology or an idea) is proportional to its current age. In crypto, the Lindy Effect suggests that the longer a protocol like Bitcoin survives without a major failure, the more likely it is to persist into the future.
LINK (Chainlink) (Definition Only)
The native token of the Chainlink network, used to pay for decentralized oracle services that provide real-world data to smart contracts.
Liquid Network (Definition Only)
A Bitcoin sidechain designed for traders and exchanges that enables faster, confidential transactions and the issuance of digital assets. Operating as a 'federation,' it allows users to 'peg-in' Bitcoin to receive Liquid Bitcoin (L-BTC), which can be settled in minutes and features 'Confidential Transactions' that hide the asset type and amount from public view.
Liquid Staking (Definition Only)
A protocol allowing users to stake ETH and receive a tradable token representing their stake.
Liquid Staking Derivatives (Definition Only)
Tokens that represent a staked asset, allowing users to earn staking rewards while still being able to use the liquidity in other DeFi protocols.
Liquidation (Definition Only)
The forced closing of a trader's position by an exchange when their collateral (margin) is no longer sufficient to cover their potential losses.
Liquidations (Definition Only)
The forced closing of a trader's position by an exchange when the margin drops below the required level.
Liquidity (Definition Only)
The ease with which an asset can be bought or sold in the market without significantly affecting its price.
Liquidity Mining (Definition Only)
A DeFi strategy where users provide liquidity to a protocol and are rewarded with the project's native tokens.
Liquidity Pool (Definition Only)
Crowd-sourced tokens locked in a smart contract that enable trading on a DEX.
Liquidity Provider (Definition Only)
A user who funds a liquidity pool with assets to facilitate trading in a decentralized exchange.
Liveness (Definition Only)
The guarantee that a distributed system continues to process transitions and never permanently stalls or freezes.
Loan-to-Value (LTV) (Definition Only)
The ratio of a loan to the value of the collateral provided, used to determine the health of a DeFi loan.
Long (Definition Only)
A trading position that profits from an increase in an asset's price; 'going long' involves buying an asset with the expectation that its value will rise.
Liquidity Provider (LP) (Definition Only)
A user who provides assets to a liquidity pool to facilitate trading on decentralized exchanges, usually in exchange for a portion of the trading fees.
LP Token (Definition Only)
Short for Liquidity Provider token; it represents a user's share of a liquidity pool and is used to claim rewards.
Liquid Staking Derivative (LSD) (Definition Only)
A token that represents staked assets (like ETH), allowing the user to remain liquid while earning staking rewards.
Liquid Staking Token (LST) (Definition Only)
Another term for LSD; tokens like stETH that provide liquidity for staked capital.
LTV (Definition Only)
Loan-to-Value; a ratio used by lenders to express the amount of a loan compared to the value of the assets securing the loan.
Loss-Versus-Rebalancing (LVR) (Definition Only)
A metric used to evaluate the efficiency of liquidity provision in Automated Market Makers (AMMs). LVR compares the impermanent loss experienced by liquidity providers to the cost of continually rebalancing a portfolio to maintain a desired ratio of assets.
M
Mainnet (Definition Only)
The primary, live version of a blockchain where actual value transactions take place.
Maker (Definition Only)
A trader who provides liquidity to an exchange by placing limit orders that are not immediately matched, adding to the order book.
Maker Fee (Definition Only)
A transaction fee paid by a trader who provides liquidity to an order book by placing a limit order.
Malicious Contract (Definition Only)
A smart contract designed to drain a wallet once granted permission.
Malware (Definition Only)
Malicious software specifically designed to disrupt, damage, or gain unauthorized access to a computer system or crypto wallet.
Manipulation (Definition Only)
Intentional conduct designed to deceive investors by controlling or artificially affecting the price of an asset.
Margin (Definition Only)
Collateral that a trader must deposit with a broker or exchange to cover the credit risk they pose when trading with borrowed funds.
Margin Trading (Definition Only)
The practice of using borrowed funds from a broker or exchange to trade a larger position than would be possible with the trader's own capital.
Market Cap / Market Capitalization (Definition Only)
The total value of a cryptocurrency; calculated by price multiplied by circulating supply.
Market Correction (Definition Only)
A short-term price decline of at least 10% for an asset or market, often viewed as a healthy adjustment after a period of significant growth.
Market Cycle (Definition Only)
The recurring patterns of growth and decline in a financial market, typically consisting of accumulation, bull, distribution, and bear phases.
Market Depth (Definition Only)
A property of an order book that refers to the market's ability to sustain relatively large orders without significantly impacting the price of the asset.
Market Maker (Definition Only)
A firm or individual that provides liquidity to an exchange by maintaining both buy and sell orders in the order book. They profit from the 'bid-ask spread' and help ensure that other participants can execute trades quickly without causing massive price swings.
Market Order (Definition Only)
A request to buy or sell an asset immediately at the best available current price in the market.
Marketing Wallet (Definition Only)
A project-controlled wallet designated for expenses like exchange listings, development, and advertising. In scam scenarios, especially during 'Community Takeovers' (CTOs), these wallets are often drained by developers under the guise of marketing costs, leaving the project without funds.
Maximalism (Definition Only)
The belief that a specific cryptocurrency (most commonly Bitcoin) is the only project with long-term value and that all other digital assets are unnecessary or inferior.
Maximum Supply (Definition Only)
The absolute limit on the number of tokens that will ever exist for a specific cryptocurrency, often hard-coded into the protocol.
Medium of Exchange (Definition Only)
An intermediary instrument (like currency) used to facilitate the sale, purchase, or trade of goods between parties.
Memecoin (Definition Only)
A cryptocurrency inspired by internet memes or social media trends, often characterized by high volatility and community-driven marketing.
Mempool (Definition Only)
The 'waiting room' where unconfirmed transactions sit before being picked up.
Merkle Root (Definition Only)
The single hash at the top of a Merkle Tree that summarizes all the data in the underlying nodes.
Merkle Tree (Definition Only)
A mathematical structure used to efficiently verify transaction inclusion in a block.
Metadata Leakage (Definition Only)
The unintentional disclosure of secondary data (metadata) that can be used to identify a user or their activities, even if the primary content is encrypted. In crypto, this often includes IP addresses, transaction timestamps, or browser fingerprints.
MetaMask (Definition Only)
The most popular browser extension and mobile wallet used to interact with the Ethereum blockchain and dApps.
Metaverse (Definition Only)
A collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space.
MEV (Definition Only)
Maximal Extractable Value; profit gained by reordering or including transactions in a block.
MEV Arbitrage (Definition Only)
A form of MEV where bots identify price discrepancies for the same asset across different decentralized exchanges and execute simultaneous trades to capture the profit.
MEV-Boost (Definition Only)
An open-source middleware implemented by Flashbots for Ethereum validators to access a competitive market for block building, maximizing staking rewards.
MEV Relay (Definition Only)
A trusted intermediary that aggregates blocks from builders and passes the most profitable ones to validators (proposers) via MEV-Boost.
MEV Sandwich / Sandwich Attack (Definition Only)
A specific MEV strategy where a bot 'sandwiches' a user's transaction between its own buy and sell orders to profit from the resulting price slippage.
Miner (Definition Only)
A network node that solves computational puzzles to validate and secure blockchain transactions through Proof of Work.
Mining (Definition Only)
The process of using computational power to verify transactions and secure a Proof of Work blockchain in exchange for rewards.
Mining Algorithm (Definition Only)
The specific set of cryptographic rules used by a blockchain to validate transactions and secure the network, such as Bitcoin's SHA-256.
Mining Pool (Definition Only)
A group of miners who share their processing power over a network to split the reward for mining a block proportionally.
Mining Reward (Definition Only)
The combination of newly minted coins (block reward) and transaction fees paid to a miner for successfully adding a block to the blockchain.
Minting (Definition Only)
The process of creating new cryptocurrency tokens or coins on a blockchain.
Mixer (Definition Only)
A service that blends identifiable crypto funds with others to obscure the trail.
Mnemonic (Definition Only)
A human-readable version of a private key, typically presented as a 12 or 24-word seed phrase.
Mnemonic Phrase (Definition Only)
A series of words used as a human-readable representation of a wallet's private key, allowing for easy backup and recovery.
Monero (XMR) (Definition Only)
A privacy-focused cryptocurrency that uses stealth addresses and ring signatures to hide transaction details.
Monetary Policy (Definition Only)
The rules set by a protocol or central bank to manage the supply and distribution of a currency.
Money Laundering (Definition Only)
The process of making large amounts of money generated by criminal activity appear to have come from a legitimate source.
Moore's Law (Definition Only)
The observation that the number of transistors on a microchip doubles approximately every two years, driving the rapid advancement of computing power.
Moving Average (MA) (Definition Only)
A technical indicator used to smooth out price action by calculating the average price over a specific number of periods.
MPC (Definition Only)
Multi-Party Computation; a cryptographic protocol that allows multiple parties to jointly compute a function while keeping their inputs private, often used in key management.
Multichain (Definition Only)
The concept of a future where users and applications interact seamlessly across many different blockchain networks.
Multisig
Short for multi-signature; a wallet requiring two or more private keys to authorize a transaction.
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N
Nethermind (Definition Only)
A high-performance Ethereum execution client built on .NET. It is known for its fast sync speeds and is widely used by node operators and enterprises to interact with the Ethereum blockchain.
Network Latency (Definition Only)
The delay in communication between nodes or users on a network, which can affect the speed of transaction propagation and confirmation.
NFT Metadata (Definition Only)
The data (often JSON) associated with an NFT that describes its attributes and points to the location of the media file.
NGMI (Definition Only)
Slang for 'Not Gonna Make It,' used to describe an individual or strategy that is likely to fail in the crypto market.
Nick Szabo (Definition Only)
A computer scientist and legal scholar known for his research in digital contracts and digital currency; he designed 'Bit Gold,' a direct precursor to Bitcoin’s architecture.
Node (Definition Only)
A computer that participates in a blockchain network by maintaining a copy of the ledger and validating transactions.
Non-Custodial (Definition Only)
A setup where the user has total control over their private keys and assets.
Non-Fungible (Definition Only)
A property of an asset that makes it unique and not interchangeable with other assets of the same type.
O
US Office of Foreign Assets Control (OFAC) (Definition Only)
A division of the US Treasury that administers and enforces economic sanctions to protect national security and foreign policy goals.
Off-Chain (Definition Only)
Transactions or processes that occur outside the main blockchain to improve speed, lower costs, or increase privacy.
Off-Chain Governance (Definition Only)
Decision-making processes that happen outside the blockchain, such as developer discussions and community meetings.
On-Chain (Definition Only)
Transactions or activities that are recorded directly on the blockchain and are permanently visible to the public.
On-Chain Governance (Definition Only)
A decentralized voting system where stakeholders use tokens to vote on and automatically implement changes to a blockchain's protocol.
Onion Routing (Definition Only)
A technique for anonymous communication over a computer network, famously used by the Tor browser.
Open Source (Definition Only)
Software with source code that is made freely available for anyone to inspect, modify, and enhance, which is a core tenet of most blockchain projects.
Optimistic Rollup (Definition Only)
A Layer 2 solution that assumes transactions are valid unless challenged by fraud proofs.
Options (Definition Only)
Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an asset at a specific price within a set timeframe.
Oracle Manipulation (Definition Only)
A type of exploit where an attacker artificially inflates or deflates the price of an asset on a specific exchange (often via flash loans) to trick a protocol's 'oracle' into reporting an incorrect price. This allows the attacker to drain funds by borrowing against undervalued assets or liquidating overcollateralized positions.
Order Book (Definition Only)
An electronic list of buy and sell orders for a specific asset on an exchange, organized by price level.
Ordinals (Definition Only)
A protocol that allows individual satoshis to be numbered, tracked, and inscribed with data, essentially enabling NFTs directly on the Bitcoin blockchain.
Orphaned Block (Definition Only)
A valid block that was successfully mined but was not accepted into the main blockchain because a competing block was found first.
OTC (Definition Only)
Over-the-Counter; trading that occurs directly between two parties without the supervision of an exchange.
Out of Gas Error (Definition Only)
An error that occurs in Ethereum when a transaction's gas limit is too low to complete the requested computation.
Over-Collateralization (Definition Only)
The practice of providing collateral that is worth more than the value of the loan being taken, common in decentralized lending protocols.
Overbought (Definition Only)
A market condition where an asset has experienced a significant upward price move and is perceived to be trading above its true value.
Oversold (Definition Only)
A market condition where an asset has experienced a significant downward price move and is perceived to be trading below its true value.
P
P2P (Definition Only)
Peer-to-peer; a network where participants interact directly without a central middleman.
P2P Lending (Definition Only)
Peer-to-Peer lending; a decentralized method of borrowing and lending assets directly between individuals without a traditional bank intermediary.
Pair (Definition Only)
A trade between two different assets, such as BTC/USD, representing the price of one asset relative to the other.
Paper Trading (Definition Only)
Simulated trading that allows individuals to practice buying and selling assets without risking real money.
Paper Wallet (Definition Only)
An offline mechanism for storing wallet keys by printing or writing them down on a physical medium.
Passphrase (Definition Only)
An optional 13th or 25th word added to a seed phrase to create a separate, hidden wallet.
PayJoin (Definition Only)
A specialized type of CoinJoin where both the sender and the receiver contribute inputs to a transaction. Unlike standard CoinJoins, PayJoin transactions look like normal Bitcoin transfers, making them much harder for chain analysis companies to identify and flag.
Paymaster (Definition Only)
A smart contract entity in the ERC-4337 (Account Abstraction) standard that can pay for another user's transaction gas fees, enabling sponsored transactions.
Practical Byzantine Fault Tolerance (pBFT) (Definition Only)
A consensus algorithm that allows distributed systems to reach agreement despite some nodes failing or acting maliciously.
Peer-to-Peer (P2P) (Definition Only)
A decentralized model where participants interact directly with each other without the need for a central intermediary.
Peg (Definition Only)
A fixed exchange rate between two assets, such as a stablecoin maintaining a 1:1 value with the US Dollar.
Permanent Storage (Definition Only)
Data storage solutions, like Arweave, where information is stored indefinitely through a one-time payment model.
Permaweb (Definition Only)
A decentralized, permanent layer of the internet built on top of Arweave where all data and applications are stored forever.
Permissioned (Definition Only)
A blockchain where access to the network is restricted to a specific group of authorized participants.
Permissionless (Definition Only)
The ability for anyone to use a network or run a node without needing approval from an authority.
Perpetual Futures (Perps) (Definition Only)
A type of futures contract that does not have an expiration date, allowing traders to hold positions indefinitely.
Pretty Good Privacy (PGP) (Definition Only)
An encryption program created by Phil Zimmermann in 1991 that provides cryptographic privacy and authentication for data communication, often used to secure emails.
Phil Zimmermann (Definition Only)
The creator of PGP (Pretty Good Privacy); his defense of encryption as free speech during the 1990s Crypto Wars established the legal right to use strong cryptography.
Phishing (Definition Only)
A scam where an attacker tricks users into revealing seed phrases via fake websites.
Physical Bitcoins (Definition Only)
Physical items, like coins or cards, that contain a private key or seed phrase providing access to a specific amount of digital Bitcoin.
Platform (Definition Only)
A foundational blockchain or software environment upon which developers can build decentralized applications or issue tokens.
Polkadot (DOT) (Definition Only)
A multichain protocol that connects specialized blockchains, allowing them to interoperate at scale.
Polygon (MATIC) (Definition Only)
A scaling platform for Ethereum that provides sidechains and rollups to reduce fees and increase speed.
Ponzi Scheme (Definition Only)
A fraudulent investment scam that generates returns for earlier investors with money taken from newer investors.
Proof of Reserves (PoR) (Definition Only)
A public audit or cryptographic verification showing that a custodian or exchange actually holds the assets it claims to have for its users.
Portfolio (Definition Only)
The collection of all digital assets and investments held by an individual or entity.
Position Size (Definition Only)
The specific amount of capital allocated to a single trade or investment within a larger portfolio.
PoW Mining (Definition Only)
Proof of Work mining; a consensus mechanism where participants (miners) use computational power to secure a network and prevent double-spending in exchange for mining rewards paid in cryptocurrency.
Pre-Mine (Definition Only)
The minting of a portion of a cryptocurrency's total supply before the project is launched to the public, often reserved for developers or early investors.
Pre-Sale (Definition Only)
A fundraising event where tokens are sold to a limited group of investors at a discounted price before the public initial coin offering (ICO).
Presale (Definition Only)
A fundraising event where a project sells its tokens to a limited group of early investors before the official Initial Coin Offering (ICO) or public exchange listing. While presales offer lower entry prices, they carry significant risk, as the project is often in its infancy and may lack a functional product or verified track record.
Price Impact (Definition Only)
The change in an asset's price caused directly by a specific trade. In an AMM, larger trades shift the pool's internal ratio, resulting in a less favorable execution price for the trader.
Priority Fee (Definition Only)
An optional tip paid to validators to incentivize transaction prioritization.
Privacy (Definition Only)
The ability of an individual or group to seclude themselves or information about themselves from public view.
Privacy Coin (Definition Only)
A cryptocurrency designed specifically to hide transaction details like sender and receiver.
Private Blockchain (Definition Only)
A permissioned distributed ledger where access and participation are controlled by a single entity or a specific group of organizations.
Private Key
An alphanumeric string serving as proof of ownership for a wallet address and its assets.
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Probabilistic (Definition Only)
Systems or processes based on probability and likelihood rather than certainty, where outcomes are predicted statistically rather than guaranteed.
Proof of Burn (Definition Only)
A consensus mechanism where miners 'burn' coins by sending them to an unspendable address to earn the right to mine blocks.
Proof of Reserve (PoR) (Definition Only)
An independent audit that proves a centralized entity (like an exchange) actually holds the assets it claims to have.
Proof of Stake (PoS) (Definition Only)
A consensus mechanism where validators secure the network by locking up native tokens.
Proof of Work (PoW) (Definition Only)
A consensus mechanism requiring miners to solve puzzles to validate blocks.
Propagation Delay (Definition Only)
The time it takes for a new block or transaction to be broadcast and validated across the entire network.
Proposer (Definition Only)
A validator who has been randomly selected to propose a new block to the network. In an MEV-boost environment, proposers often receive pre-built blocks from builders via relays.
Proto-Danksharding (Definition Only)
EIP-4844; an upgrade lowering L2 fees by introducing temporary 'blobs' of data.
Protocol (Definition Only)
A set of rules governing how data is transferred and validated across a computer network or blockchain.
Pruning (Definition Only)
The process of removing old or unnecessary blockchain data from a node to save disk space while remaining functional.
Prysm (Definition Only)
A popular Ethereum consensus client written in Go. It implements the proof-of-stake specification, allowing users to run beacon nodes and validator clients to participate in network consensus.
PSBT (Definition Only)
Partially Signed Bitcoin Transaction; the standard format allowing transactions to be signed across multiple devices.
Pseudonymous (Definition Only)
A system where users are identified by an alias rather than their real identity.
Psychology (Definition Only)
The study of human behavior and sentiment that drives market cycles, such as fear (FUD) and greed (FOMO).
Public Key
An alphanumeric string that serves as your location to receive funds on the blockchain.
Read the full definition page
Pump and Dump Scheme (P&D) (Definition Only)
A form of market manipulation where the price of an asset is artificially inflated through false or misleading statements before being sold off by the manipulators.
Put Option (Definition Only)
A financial contract that gives the holder the right, but not the obligation, to sell an asset at a specified price within a specific timeframe.
Puts (Definition Only)
Financial contracts that give the buyer the right to sell an asset at a specified price before a certain date.
Pyramid Scheme (Definition Only)
A fraudulent investment model that recruits members via a promise of payments for enrolling others into the scheme.
Q
QR Code (Definition Only)
The visual bridge between physical and digital data used to quickly share blockchain addresses.
Quantitative Easing (Definition Only)
The full term for QE; a strategy used by central banks to inject liquidity into the financial system.
Quantitative Tightening (Definition Only)
The full term for QT; used by central banks to decrease liquidity and cool an overheating economy.
Quantum Computing (Definition Only)
A type of computing that uses quantum-mechanical phenomena, which potentially poses a future threat to current cryptographic standards like SHA-256.
Quorum (Definition Only)
A minimum required number of participants needed to reach a decision or authorize a transaction.
Quote Currency (Definition Only)
The second currency in a trading pair (e.g., USD in BTC/USD), representing the price of the base currency.
R
Randomness (Definition Only)
The lack of pattern or predictability in events, often generated on-chain for fair distributions or gaming.
Ransomware (Definition Only)
Malicious software designed to block access to a computer system or data until a sum of money, often in cryptocurrency, is paid.
Real World Assets (RWA) (Definition Only)
Physical or traditional financial assets, like real estate or bonds, that are brought onto the blockchain via tokenization.
Rebalancing (Definition Only)
The process of realigning the weightings of a portfolio's assets to maintain a target level of risk and return.
Rebase (Definition Only)
A mechanism where a token's total supply is adjusted automatically across all wallets to maintain a target price peg.
Red Flag (Definition Only)
A specific warning sign or suspicious pattern indicating a high risk of a scam or project failure. Common red flags include anonymous teams with no track record, locked social media comments, lack of a vesting schedule, and 'Admin' imposters demanding token transfers during a relaunch.
Reentrancy (Definition Only)
A common smart contract vulnerability where an external attacker recursively calls a contract's function to drain funds before the original execution can update its internal balance.
Regulated (Definition Only)
Digital assets or platforms that operate under the oversight and rules of government financial authorities and legal frameworks.
Regulatory (Definition Only)
Pertaining to the laws and rules established by government agencies to oversee and control the cryptocurrency industry.
Rehypothecation (Definition Only)
The practice where a lender uses assets pledged as collateral by a borrower for their own purposes, often increasing systemic risk.
REKT (Definition Only)
Slang for 'wrecked,' used to describe a trader who has suffered a massive financial loss, often due to a liquidation or a scam.
Relaunch (Definition Only)
Starting a project over with a new token (V2). While sometimes used to upgrade technology, it is frequently used by scammers to trick users into sending old tokens to an 'imposter' wallet to 'qualify' for the new version, or as a way for developers to reset a failing track record.
Renewable Energy (Definition Only)
Energy from sources that are naturally replenished, such as solar or wind, increasingly used to power sustainable cryptocurrency mining operations.
Reorg (Definition Only)
Blockchain reorganization; occurs when a node switches to a longer version of the chain.
Replay Attack (Definition Only)
A security threat where a valid data transmission is maliciously intercepted and then repeated or delayed to defraud the receiver or duplicate a transaction.
Reserve (Definition Only)
A supply of assets held by an institution to meet future liabilities or to back the value of a stablecoin.
Resistance (Definition Only)
A price level where an asset's upward trend is frequently interrupted by a concentration of selling interest.
Restaking (Definition Only)
A mechanism that allows users to utilize their already-staked assets to secure additional protocols or services, earning extra rewards in the process.
Radio Frequency Identification (RFID) (Definition Only)
A technology that uses radio waves to identify and track tags attached to objects, often integrated with blockchain for supply chain transparency.
Ring CT (Confidential Transactions) (Definition Only)
A privacy technology used in Monero to hide the specific amounts being sent in a transaction while maintaining network verifiability.
Ring Signatures (Definition Only)
Privacy technology that groups a sender with others to hide the specific identity of a transaction signer.
Rising Wedge (Definition Only)
A bearish chart pattern characterized by a narrowing price range and upward-sloping trendlines, often preceding a downward breakout.
Risk (Definition Only)
The possibility of losing money or encountering an unfavorable outcome in a financial transaction.
Risk Management (Definition Only)
The process of identifying, analyzing, and taking steps to reduce or eliminate the risks involved in trading.
Roadmap (Definition Only)
A strategic document that outlines the goals, milestones, and planned future developments of a cryptocurrency project over time.
ROI (Definition Only)
Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.
Rollback (Definition Only)
A rare event where participants agree to ignore recent blocks to fix a major protocol error.
Rollup (Definition Only)
A scaling solution that bundles transactions off-chain and posts compressed data to Layer-1.
Rootstock (RSK) (Definition Only)
A smart contract platform that is connected to the Bitcoin blockchain as a sidechain, secured by merged mining.
RPC (Definition Only)
Remote Procedure Call; the protocol allowing a wallet to talk to a blockchain node.
Reusable Proof of Work (RPOW) (Definition Only)
An early digital cash prototype created by Hal Finney in 2004 that allowed Proof of Work tokens to be transferred and reused, serving as a key predecessor to Bitcoin.
RSI (Definition Only)
Relative Strength Index; a momentum indicator that measures the speed and change of price movements to identify overbought or oversold conditions.
Rug Pull (Definition Only)
A type of scam where developers abandon a project and run away with investors' funds, typically by draining liquidity pools.
RWA (Definition Only)
Short for Real World Assets; the tokenization of tangible assets for use in decentralized finance.
Real World Assets (RWAs) (Definition Only)
Physical or traditional financial assets, such as real estate or treasury bills, that are brought onto the blockchain via tokenization.
S
Safety (Definition Only)
In consensus theory, the guarantee that two nodes will not agree on different values at the same time.
Sandwich Attack (Definition Only)
A form of MEV where a trade is 'sandwiched' between two transactions by a bot to profit from slippage.
Sat (Definition Only)
Short for Satoshi; the smallest unit of Bitcoin, equal to 1/100,000,000 of a BTC.
Satoshi (Definition Only)
The smallest unit of Bitcoin (0.00000001 BTC), named after the network’s creator.
Scaling (Definition Only)
The process of increasing a blockchain network's capacity to handle more transactions without compromising decentralization or security.
Scaling Solution (Definition Only)
A technology or protocol (like Lightning Network or Rollups) designed to improve a blockchain's performance and throughput.
Scam (Definition Only)
A fraudulent scheme designed to trick individuals into giving away their assets or private information.
Scarcity (Definition Only)
The limited availability of an asset, a key driver of value for assets like Bitcoin with a capped supply.
Schnorr Signatures (Definition Only)
A cryptographic signature scheme introduced to Bitcoin via the Taproot upgrade. It allows multiple signatures to be merged into one, improving privacy and reducing the size of complex transactions.
Scrypt (Definition Only)
A memory-intensive proof-of-work algorithm used by cryptocurrencies like Litecoin to make ASIC mining more difficult and expensive.
Secure Element (SE) Chip (Definition Only)
A tamper-resistant microcontroller designed to securely store private keys and execute cryptographic operations, often used in hardware wallets and mobile devices.
SEC (Definition Only)
The U.S. Securities and Exchange Commission; the primary regulatory body responsible for protecting investors and maintaining fair and orderly markets.
Secp256k1 (Definition Only)
The specific elliptic curve used by Bitcoin to implement its public-key cryptography.
Securitization (Definition Only)
The process of taking an asset and transforming it into a security, often through tokenization on a blockchain.
Security (Definition Only)
The protection of a network or wallet against unauthorized access, attacks, or theft.
Security Token (Definition Only)
A digital token that represents an investment in a project and is subject to federal securities regulations.
Seed Phrase
A series of 12 or 24 random words that acts as a master key to recreate your entire wallet. Anyone who has the seed phrase can control the wallet's assets.
Read the full definition page
Seed Phrase Security (Definition Only)
The practices and methods used to protect a recovery phrase from being lost, stolen, or compromised.
Seed Storage (Definition Only)
The practice of securing a seed phrase physically to protect against damage.
SegWit (Definition Only)
Short for Segregated Witness; a Bitcoin protocol upgrade that increased block capacity by separating signature data from transaction data, also fixing the transaction malleability bug.
Seigniorage (Definition Only)
The difference between the value of money and the cost to produce it; in crypto, often related to algorithmic stablecoins.
Self-Custody (Definition Only)
The practice of holding your own private keys, ensuring total control over your assets.
Self-Sovereign Identity (SSI) (Definition Only)
A digital identity model where individuals have full ownership and control over their identity data.
Selfish Mining (Definition Only)
A mining strategy where a miner or group keeps discovered blocks private to gain an advantage over the network's honest miners.
Sell Tax (Definition Only)
A fee charged by a smart contract when a user sells a token on a decentralized exchange. While sometimes used to fund development or provide 'buy-backs,' an excessively high sell tax (e.g., >10%) is a major red flag, as it can be used to prevent users from exiting a position or to slowly drain liquidity from holders.
Sell Wall (Definition Only)
A massive limit order or group of orders at a specific price that creates significant resistance against an asset's price rising.
Sequencer (Definition Only)
A specialized node on a Layer 2 that orders and batches transactions for the Layer 1.
Settlement Layer (Definition Only)
The base layer of a blockchain (Layer 1) where transactions are finalized and recorded permanently.
SHA-256 (Definition Only)
Secure Hash Algorithm 256-bit; the cryptographic hash function used in Bitcoin's mining process and to secure its addresses.
Shamir's Secret Sharing (Definition Only)
A cryptographic method that splits a single seed phrase into multiple shares to eliminate single points of failure.
Sharding (Definition Only)
A database scaling technique splitting the network into pieces to process in parallel.
Shielded Address (Definition Only)
A privacy-enhanced address that uses zero-knowledge proofs to hide transaction details, such as the sender, receiver, and amount.
Shielded Pool (Definition Only)
The collection of addresses and transactions on the Zcash network that utilize zero-knowledge proofs to hide the sender, recipient, and amount. It consists of different 'eras' of technology, such as Sprout, Sapling, and Orchard.
Shielded Transaction (Definition Only)
A blockchain transaction where the metadata is encrypted, ensuring that only the parties involved can see the specific details.
Shilling (Definition Only)
The act of heavily promoting a cryptocurrency to create hype and drive up its price. Shilling is often performed by individuals or bots with a hidden financial interest in the project, frequently without disclosing their bias.
Short (Definition Only)
A trading position that profits from a decrease in an asset's price; 'shorting' involves selling a borrowed asset to buy it back later at a lower price.
Short Squeeze (Definition Only)
A market phenomenon where a rapid increase in a cryptocurrency's price forces short sellers to close their positions (often through liquidations), fueling further upward price momentum.
Sidechain (Definition Only)
An independent blockchain running parallel to a main chain with its own consensus mechanism.
Simple Interest (Definition Only)
Interest calculated only on the initial principal of a loan or deposit.
Slashing (Definition Only)
A penalty mechanism in Proof of Stake networks where a validator loses a portion of their staked tokens due to malicious behavior or downtime.
Slashing Risk (Definition Only)
The danger of losing a portion of staked assets due to a validator's malicious behavior or technical failure.
SLIP39 (Definition Only)
A standard for 'Shamir's Secret-Shared Mnemonic Phrases,' which allows a user to split a master seed phrase into multiple unique shards. A specific threshold of these shards (e.g., 2-of-3) is required to recover the wallet.
Slippage (Definition Only)
The difference between the expected price of a trade and the price at which the trade is actually executed, often occurring during high volatility.
Slippage Tolerance (Definition Only)
A user-defined setting in decentralized exchanges that determines the maximum percentage of price movement a trader is willing to accept for a transaction to execute.
Slot (Definition Only)
In Ethereum's PoS, a 12-second period during which a validator can propose a new block.
Smart Contract
Self-executing code on a blockchain that automatically runs when specific conditions are met.
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Smart Contract Audit (Definition Only)
A technical review of a project's code by security experts to identify vulnerabilities, bugs, or 'God Mode' backdoors. While an audit improves security, it is not a guarantee of safety, as it only reflects the state of the code at the time of the review.
Smart Contract Risk (Definition Only)
The possibility of financial loss due to bugs, vulnerabilities, or logical errors in a smart contract's code.
Smart Contract Wallet (Definition Only)
A cryptocurrency wallet that is controlled by a smart contract rather than a private key, allowing for features like social recovery and multi-signature security.
Smart Order Routing (SOR) (Definition Only)
An automated process used by aggregators to find the best price for a trade across multiple liquidity sources.
Snapshot (Definition Only)
A record of the state of a blockchain at a specific block height, often used for airdrops or governance voting.
Sniping (Definition Only)
The use of automated bots to buy tokens at the exact moment of a liquidity launch or to place a winning bid at the last second of an auction.
Social Recovery (Definition Only)
A security feature allowing wallet recovery through a group of trusted 'guardians' or devices.
Social Finance (SocialFi) (Definition Only)
The integration of social media dynamics with decentralized finance, allowing users to monetize their social interactions and content.
Soft Fork (Definition Only)
A backward-compatible network upgrade where non-upgraded nodes can still process transactions.
Software Wallet
An application on a phone or computer that manages keys; often called a 'hot wallet'.
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Solidity (Definition Only)
The primary object-oriented programming language used for writing smart contracts on the Ethereum blockchain.
Solvency (Definition Only)
The ability of an entity to meet its long-term financial obligations and continue operating.
SOR (Definition Only)
Short for Smart Order Routing; the technology used to optimize trading across decentralized exchanges.
Spam (Definition Only)
Unsolicited or excessive messages or transactions sent across a network, often mitigated in blockchain protocols through proof-of-work or transaction fees.
Spot Market (Definition Only)
A public financial market in which digital assets are traded for immediate delivery and payment.
Spread (Bid/Ask Spread) (Definition Only)
The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask).
SPV (Definition Only)
Short for Simplified Payment Verification; a method for light clients to verify transactions without downloading the full blockchain.
Stablecoin (Definition Only)
A cryptocurrency designed to have a stable value, usually pegged to a fiat currency like the US Dollar or a commodity.
Staking (Definition Only)
The process of locking up assets to participate in network security and earn rewards; also refers to locking tokens in a smart contract.
Staking Pool (Definition Only)
A collaborative group of token holders who combine their resources to increase their chances of being selected as validators and earning rewards.
Staking Risk (Definition Only)
The various risks associated with locking up assets to secure a network, including slashing and price volatility.
Stale Block (Definition Only)
A successfully mined block that is not included in the main blockchain, usually because another block was found and propagated faster.
State (Definition Only)
The current 'snapshot' of all accounts, balances, and smart contract data on the network.
State Channel (Definition Only)
A solution allowing off-chain transactions that only settle the final state on-chain.
State Root (Definition Only)
A single hash representing the entire current state of the blockchain at a specific block.
Stealth Address (Definition Only)
A one-time-use address allowing a receiver to remain anonymous on a public blockchain.
Steel Backup (Definition Only)
Physical resilience against fire, flood, and decay achieved by engraving seeds into fireproof metal.
Stock-to-Flow (Definition Only)
A ratio used to measure the scarcity of a commodity by comparing its current supply (stock) to its annual production (flow).
Stop-Loss Order (Definition Only)
An order placed with an exchange to sell an asset automatically when it reaches a certain price, intended to limit potential losses.
Store of Value (Definition Only)
An asset that maintains its purchasing power over time without significant depreciation, like gold or Bitcoin.
Supply (Definition Only)
The total amount of a specific cryptocurrency that currently exists or will ever be created.
Supply and Demand (Definition Only)
The fundamental economic model describing the relationship between the availability of an asset and the desire of buyers for it.
Support (Definition Only)
A price level where a downtrend tends to pause due to a concentration of demand or buying interest.
Swing Trading (Definition Only)
A trading strategy that seeks to capture short-to-medium-term gains over several days or weeks.
Sybil Attack (Definition Only)
When an attacker creates many fake identities to gain disproportionate influence over a network.
Sybil Resistance (Definition Only)
The mechanism by which a decentralized network prevents a single entity from gaining disproportionate influence by creating multiple fake identities. Common methods include Proof of Work (PoW) and Proof of Stake (PoS).
Systemic Risk (Definition Only)
The possibility that a failure of one entity, protocol, or market segment will trigger a widespread collapse across an entire financial system. In crypto, systemic risk is often amplified by high levels of leverage and the interconnected nature of 'composability,' where a single stablecoin de-peg or protocol hack can impact dozens of other platforms.
T
Tails (OS) (Definition Only)
An amnesic, security-focused operating system designed to leave no trace on the host computer.
Take-Profit Order (Definition Only)
A limit order that specifies the exact price at which to close an open position for a profit.
Taker (Definition Only)
A trader who removes liquidity from an exchange by placing orders that are immediately matched with existing orders on the order book.
Taker Fee (Definition Only)
A transaction fee paid by a trader who removes liquidity from an order book by placing a market order.
Taproot (Definition Only)
A major Bitcoin protocol upgrade (BIP 341) that improves privacy, efficiency, and smart contract capabilities by making complex transactions appear as standard single-signature transactions.
Technical Indicators (Definition Only)
Mathematical calculations based on an asset's price and volume, used by traders to predict future market trends.
Telegram (Definition Only)
An encrypted messaging app that serves as a hub for crypto project news and community discussion. Users must be cautious of fake groups and 'direct messages' from scammers impersonating project support.
Terra (LUNA) (Definition Only)
A decentralized blockchain ecosystem that gained notoriety for the 2022 collapse of its algorithmic stablecoin, UST, and its native token, LUNA.
Testnet (Definition Only)
An alternative version of a blockchain used by developers to test applications without using real funds.
Tether (USDT) (Definition Only)
The most widely used fiat-backed stablecoin, issued by Tether Limited and pegged to the US Dollar.
Token Generation Event (TGE) (Definition Only)
The moment when a project's tokens are technically created and distributed to the initial holders.
The Merge (Definition Only)
The 2022 event when Ethereum transitioned from Proof of Work to Proof of Stake.
Throughput (Definition Only)
The number of transactions a network can process within a specific timeframe, typically measured in Transactions Per Second (TPS).
Ticker (Definition Only)
A unique set of letters used to identify a cryptocurrency on exchanges, such as BTC for Bitcoin or ETH for Ethereum.
Time Lock (Definition Only)
A smart contract feature that restricts the execution of certain actions until a specific date or block height is reached. In crypto, time locks are essential security tools used to manage vesting schedules, delay protocol upgrades (giving users time to exit if they disagree), and protect 'marketing wallets' from sudden liquidations.
Time Warp Attack (Definition Only)
An attack where a miner manipulates the timestamps of blocks to slow down the difficulty adjustment and mine faster.
Timestamp (Definition Only)
A digital record of the time an event occurred, used in blockchain to prove the existence and order of transactions.
Token (Definition Only)
Digital assets issued on a blockchain representing value or utility within a specific platform.
Token Issuance (Definition Only)
The process of creating and distributing new tokens into the ecosystem, governed by the protocol's monetary policy.
Token Lockup (Definition Only)
A period during which tokens cannot be sold or transferred, often applied to team members or early investors to ensure long-term alignment.
Token Standard (Definition Only)
A set of rules that define how a token functions on a specific blockchain, such as Ethereum's ERC-20 or ERC-721.
Token Unlocks (Definition Only)
The release of previously restricted tokens into the circulating supply after a vesting period or cliff has expired. Large token unlocks are significant market events, as they increase supply and can lead to downward price pressure if early investors or team members choose to sell.
Tokenization (Definition Only)
The process of converting rights to an asset into a digital token on a blockchain.
Tokenized Identity (Definition Only)
A digital identity system where personal attributes are represented by tokens, allowing for secure, sovereign, and private verification.
Tokenized Securities (Definition Only)
Digital representations of traditional financial assets, such as stocks or bonds, issued and traded on a blockchain.
Tokenomics (Definition Only)
The economic framework of a cryptocurrency, including its supply, distribution, utility, and incentive mechanisms.
Tor (The Onion Router) (Definition Only)
Privacy-focused networking that anonymizes internet traffic by routing it through multiple encrypted layers.
Total Supply (Definition Only)
The total number of tokens that currently exist, including those that are locked or held in reserve, minus any tokens that have been burned.
Toxic Waste (Definition Only)
A slang term for the private cryptographic data generated during a trusted setup. If this data is not destroyed, it could be used by a malicious actor to create counterfeit tokens without detection. Zcash famously held a 'Ceremony' to ensure the destruction of this data.
Transactions Per Second (TPS) (Definition Only)
A metric that measures the throughput of a blockchain network, indicating how many transactions it can process every second.
Track Record (Definition Only)
The documented history of a project's developers or founders. A strong track record of successful, honest deployments reduces the risk for investors, while a history of failed or abandoned projects is a major red flag.
TradFi (Definition Only)
Traditional Finance; the legacy financial system consisting of centralized institutions like banks, stock exchanges, and insurance companies.
Trading (Definition Only)
The process of buying, selling, or exchanging assets in financial markets. In cryptocurrency, trading occurs on both centralized (CEX) and decentralized (DEX) platforms, utilizing various strategies such as day trading, arbitrage, and long-term holding.
Trading Bots (Definition Only)
Software programs that connect to exchanges and automatically execute buy or sell orders based on predefined strategies.
Trading Pair (Definition Only)
The combination of two assets that can be traded against each other on an exchange (e.g., ETH/BTC).
Trading Simulator (Definition Only)
A software platform that allows users to practice trading using virtual funds in a real-world market environment.
Transaction (Definition Only)
An exchange of value or data between two parties on a blockchain, which is recorded permanently and transparently once validated by the network.
Transaction Malleability (Definition Only)
A technical quirk once used to change a transaction's ID to trick exchanges into duplicate payments.
Transparency (Definition Only)
The degree to which information about transactions, code, and reserves is accessible and verifiable by the public.
Transparent Address (Definition Only)
A Zcash address (starting with 't') that functions similarly to a Bitcoin address, where transaction details are publicly visible on the blockchain. These are often used for compatibility with exchanges.
Treasury (Definition Only)
The funds held by a project or DAO used to finance development, marketing, and ecosystem growth.
Tribalism (Definition Only)
Strong loyalty to a specific cryptocurrency project or community, often leading to conflict with supporters of rival projects.
Trusted Setup (Definition Only)
A one-time procedure used to generate the initial parameters for certain cryptographic protocols, such as zk-SNARKs. If the participants in the setup are honest and destroy the 'toxic waste' (private data used during the setup), the system is secure; otherwise, fake proofs could be created.
Trustless (Definition Only)
The ability of a system to operate without requiring participants to know or trust each other, relying instead on cryptographic proofs and consensus rules.
Turing-Complete (Definition Only)
A property of a system or programming language that can solve any computational problem, given enough time and resources, like the Ethereum Virtual Machine.
TVL (Definition Only)
Total Value Locked; a metric representing the total amount of assets currently staked or deposited in a DeFi protocol.
Time-weighted Average Price (TWAP) (Definition Only)
A trading indicator calculated by averaging the price of an asset over a specific period, used to minimize market impact for large trades.
Two-Factor Authentication (2FA) (Definition Only)
A security layer that requires users to provide two different forms of identification to access an account, significantly reducing the risk of unauthorized access.
Two Generals Problem (Definition Only)
The impossibility of two parties reaching 100% agreement over an unreliable network because messages may never be delivered.
Transaction ID (TXID) (Definition Only)
A unique string of characters assigned to every transaction on a blockchain, used to track and verify its status.
Typosquatting (Definition Only)
A form of social engineering where attackers register domain names that are misspellings of popular sites (e.g., 'coinbase.cm' instead of '.com'). This is used to trick users into entering seed phrases or credentials on a fake site.
U
Uncle Block (Definition Only)
A block that was successfully mined but not included in the main blockchain; similar to a 'stale' block in Bitcoin.
Uniswap V3 (Definition Only)
The third version of the Uniswap protocol, which introduced concentrated liquidity for better capital efficiency.
Unit of Account (Definition Only)
A standard numerical monetary unit of measurement of the market value of goods, services, and other transactions.
Unix Time (Definition Only)
A system for describing a point in time, defined as the number of seconds that have elapsed since January 1, 1970.
Unstaking (Definition Only)
The process of withdrawing assets from a staking contract or protocol. This often involves a 'de-bonding' or waiting period before the funds become liquid and transferable.
URL (Definition Only)
Uniform Resource Locator; the address of a web page. In crypto security, carefully inspecting the URL is the first line of defense against phishing, domain spoofing, and typosquatting.
USDC (Definition Only)
A fully collateralized US Dollar stablecoin issued by Circle and regulated as a stored value instrument.
Utility Token (Definition Only)
A digital asset that provides users with access to a specific product or service within a blockchain-based ecosystem.
UTXO (Definition Only)
Unspent Transaction Output; the method by which Bitcoin balances actually exist on the ledger.
V
Validation (Definition Only)
The process of verifying that a transaction or block conforms to the rules of the protocol before it is added to the ledger.
Validator (Definition Only)
A participant in a Proof of Stake network who proposes and votes on new blocks.
Validity Proof (Definition Only)
Cryptographic evidence (Zero Knowledge Proofs) ensuring off-chain transactions follow protocol rules.
Value Overflow Incident (Definition Only)
A 2010 exploit where a bug allowed the creation of 184 billion BTC; fixed via a soft fork.
Verification (Definition Only)
The process of checking that a transaction or block follows the rules of the network protocol before it is accepted into the ledger.
Vesting (Definition Only)
The process of locking tokens for a predetermined period before they can be fully accessed or sold by the holder. In crypto, vesting schedules are used to ensure long-term commitment from founders, team members, and early investors, preventing them from 'dumping' their tokens immediately after a project launches.
Vesting Period (Definition Only)
A period during which tokens are locked and released gradually to founders, team members, or investors to ensure long-term alignment with the project.
Viewing Key (Definition Only)
A specialized key that allows the holder to see the details of shielded Zcash transactions without granting the ability to spend the funds. This allows for 'selective disclosure' for auditing or regulatory compliance.
Vitalik Buterin (Definition Only)
The co-founder of Ethereum and a prominent figure in the cryptocurrency space, known for his contributions to blockchain research and development as well as authoring the Ethereum Whitepaper
Volatility (Definition Only)
The frequency and severity of price swings in an asset over a short period.
Volume (Definition Only)
The total amount of an asset that has been traded over a specific period, serving as an indicator of market interest and liquidity.
Voting (Definition Only)
The process by which stakeholders in a DAO or protocol use their tokens to decide on proposals and upgrades.
VPN (Definition Only)
Virtual Private Network; a tool that encrypts internet traffic and masks your digital location.
Vulnerability (Definition Only)
A flaw or weakness in code or protocol design that could be exploited to cause harm or financial loss.
VWAP (Definition Only)
Volume-Weighted Average Price. A trading benchmark that calculates the average price an asset has traded at throughout the day, based on both volume and price. It provides traders with insight into both the trend and value of a security.
W
WAGMI (Definition Only)
Slang for 'We're All Gonna Make It,' used within the crypto community to express optimism and solidarity about the future of a project or the market.
Wallet Address (Definition Only)
A public string of alphanumeric characters that serves as a destination for receiving cryptocurrency.
WalletConnect (Definition Only)
An open-source protocol that allows mobile wallets to connect and interact with dApps via a QR code or deep link.
Wallet Drainer (Definition Only)
A malicious script or piece of software designed to automatically withdraw all assets from a cryptocurrency wallet once the user grants it permission through a deceptive smart contract interaction.
Wallet Standards (Definition Only)
Technical specifications (like BIP39 or BIP44) that ensure different wallets can interoperate and recover the same keys.
Wasabi Wallet (Definition Only)
A popular open-source, non-custodial Bitcoin wallet that integrates CoinJoin via the WabiSabi protocol. It is designed to provide automated privacy by making it easy for users to anonymize their UTXOs.
Wash Trade (Definition Only)
A form of market manipulation where an entity simultaneously buys and sells the same asset to create artificial trading volume and misleading price action.
Watch-Only Wallet (Definition Only)
A wallet that allows you to monitor the balance and transactions of an address without containing the private keys.
WBTC (Definition Only)
Short for Wrapped Bitcoin; an ERC-20 token on Ethereum that is backed 1:1 by Bitcoin held in custody.
Web3 (Definition Only)
The vision for a decentralized internet built on blockchain technology, where users own their data, identities, and digital assets.
Web 2.0 (Definition Only)
The current iteration of the internet, characterized by user-generated content, social media, and centralized platforms that control user data.
Wei (Definition Only)
The smallest denomination of Ether (ETH); one ETH is equal to 1,000,000,000,000,000,000 Wei (10 to the power of 18).
Wei Dai (Definition Only)
A computer scientist and cypherpunk known for creating 'b-money,' an early proposal for an anonymous, distributed electronic cash system cited in the Bitcoin whitepaper.
Wences Casares (Definition Only)
Known as 'Bitcoin's Patient Zero,' he founded Xapo and was instrumental in introducing early Silicon Valley and Wall Street leaders to the concept of Bitcoin.
WETH (Definition Only)
Short for Wrapped Ether; an ERC-20 compliant version of Ether used for trading on decentralized exchanges.
Whale (Definition Only)
An individual or entity holding a massive amount of crypto, capable of moving prices.
Whitelist (Definition Only)
A list of approved or authorized entities, addresses, or individuals who are granted special access to a project, sale, or network.
Whitepaper (Definition Only)
A foundational document explaining a project's technical goals and economic model.
Withdrawals (Definition Only)
The process of moving staked ETH and earned rewards from the Ethereum Beacon Chain back to the execution layer, enabling liquidity for validators.
Wrapped Token (Definition Only)
A digital asset that allows the value of a native asset from one blockchain to be used on another blockchain.
X
XPUB (Definition Only)
An Extended Public Key; a master key that can generate every public address for a wallet.
Y
Yield (Definition Only)
The earnings generated from an investment over a period of time, often expressed as a percentage (APY).
Yield Farming (Definition Only)
Staking or lending crypto assets in DeFi protocols to generate high returns.
Z
Zcash (ZEC) (Definition Only)
A privacy-focused cryptocurrency that uses zk-SNARKs to allow users to shield their transaction details.
Zcash Ceremony (Definition Only)
The multi-party computation (MPC) ritual performed to conduct a trusted setup for Zcash. Participants in different locations around the world contributed to the generation of public parameters while ensuring the 'toxic waste' was destroyed.
Zero-Knowledge Proof (ZKP) (Definition Only)
A method where one can prove knowledge of information without revealing the info itself.
ZK Rollup (Definition Only)
A Layer 2 solution using zero-knowledge proofs to prove transaction validity to Layer 1.
Social Engineering (Definition Only)
Psychological manipulation of people into divulging confidential information.