Glossary

Leading DeFi lending protocol allowing users to lend and borrow cryptocurrencies. Features innovative concepts like flash loans and delegated credit. Supports multiple networks and asset types.

The ability to use smart contracts to manage funds without requiring users to transfer control of their funds to the smart contract. Account abstraction is an important concept in blockchain, as it can substantially improve the users’ experience and security, without relinquishing full access to your wallet.

A distribution of cryptocurrency tokens or coins, usually for free, to a large number of wallet addresses. Airdrops are often used as a marketing strategy to raise awareness about a new project.

Any cryptocurrency that isn't Bitcoin. Represents thousands of alternative blockchain projects with various use cases, consensus mechanisms and token economics.

A type of decentralized exchange protocol that uses a mathematical formula to price assets. Instead of using an order book like traditional exchanges, AMMs allow users to trade against a liquidity pool.

Measures preventing automated trading at launch. Includes transaction limits and blacklists.

Application programming interfaces. Includes REST endpoints and WebSocket feeds. Enables programmatic blockchain access.

Built by former Meta engineers using Move language. Features parallel transaction execution and novel Block-STM technology for high throughput.

The effective annual rate of return considering compound interest. In crypto, often significantly higher than traditional finance due to protocol incentives and token rewards.

Leading Ethereum Layer 2 solution using optimistic rollups. Significantly reduces transaction costs while inheriting Ethereum's security.

Cryptographic proof verifying specific claims or statements about blockchain data.

Third-party security review of smart contract code to identify vulnerabilities and risks.

Professional smart contract reviewers. CertiK, PeckShield lead industry.

Decentralized, open-source Layer-1 blockchain that uniquely combines a tri-chain architecture (C-Chain, P-Chain, and X-Chain) with customizable Layer-1 networks (formerly known as “Subnets”), enabling diverse applications and sovereign blockchains within its ecosystem.

Transaction ordering strategy that places orders immediately after target transactions.

Flexible multi-token pools with customizable weights. Popular for index funds.

Coinbase-incubated Layer 2 network built on the OP Stack. Focuses on bridging mainstream users and developers to web3 through familiar tools and interfaces.

Market sentiment expecting declining prices. Characterized by increased selling pressure, lower trading volumes and defensive positioning by traders and investors.

Blockchain platform using Proof of Liquidity consensus mechanism. Incentivizes protocol-owned liquidity and features built-in concentrated liquidity market maker.

Leading cryptocurrency exchange offering spot, futures, and other services.

The pioneering cryptocurrency launched in 2009 by Satoshi Nakamoto. Known for its fixed supply of 21 million coins, proof-of-work consensus, and position as digital gold. Remains the most secure and widely recognized blockchain network.

Banned addresses prevented from trading or transferring tokens.

Fundamental data structure containing validated transactions, timestamp, previous block's hash, and metadata. Size and composition vary by blockchain, affecting network scalability and decentralization.

A decentralized, distributed ledger that records transactions across many computers in such a way that the registered transactions cannot be altered retroactively.

Binance's blockchain ecosystem focuses on high throughput and compatibility with Ethereum tools while maintaining low fees.

A tool that enables the transfer of tokens and data between different blockchain networks, allowing for interoperability between them.

Market sentiment expecting rising prices. Marked by increased buying activity, higher trading volumes and aggressive positioning in anticipation of gains.

Permanent removal of tokens from circulation by sending them to an unusable address. Used to create deflationary pressure and potentially increase value of remaining tokens.

Former Binance stablecoin, phased out after Paxos regulatory issues.

Protocol purchasing own token from market for price support.

Low-level programming instructions executed by virtual machines like the EVM.

Research-driven blockchain platform developed using peer-reviewed academic research. Uses Ouroboros proof-of-stake protocol and focuses on sustainability, scalability and transparency. Known for its methodical development approach.

First modular blockchain network focused purely on data availability. Enables scalable data storage for rollups and other Layer 2 solutions.

Traditional cryptocurrency exchange operated by a company. Offers high liquidity and advanced trading features but requires trusting the platform with custody of funds.

Chronological sequence of blocks cryptographically linked through hash pointers. Ensures immutability and creates verifiable history of all transactions.

Decentralized oracle network enabling smart contracts to securely interact with real-world data. Powers price feeds, randomness, automation and cross-chain communication for thousands of applications.

Total tokens currently available in market.

Method of keeping cryptocurrency offline in hardware wallets or paper wallets. Provides maximum security against hacking but reduces convenience of access.

A process used by blockchain networks to achieve agreement on a single data value or a single state of the network among distributed processes or systems. Examples include Proof of Work (PoW) and Proof of Stake (PoS).

Publishing source code on block explorer for transparency.

Ecosystem of independent parallel blockchains that can scale and interoperate. Uses Tendermint consensus and Inter-Blockchain Communication protocol (IBC) to enable cross-chain transactions.

Interaction between different blockchain networks.

A digital or virtual currency that uses cryptography for security and operates independently of a central authority.

Automated market maker specialized in stable asset trading. Uses mathematical models to enable efficient stablecoin and wrapped asset trading with minimal slippage.

Service where a third party controls private keys. Common in centralized exchanges and institutional solutions, sacrificing self-custody for convenience and regulation.

Decentralized stablecoin overcollateralized by crypto assets. MakerDAO governed.

An organization represented by rules encoded as a computer program that is transparent, controlled by organization members, and not influenced by a central government.

Investment strategy of buying fixed amounts at regular intervals. Reduces impact of volatility and emotional trading decisions by automating purchases.

A blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments.

Networks incentivizing deployment of physical infrastructure like wireless coverage, computing resources and sensors. Creates decentralized alternatives to traditional infrastructure providers.

Process of publishing smart contract code to blockchain network.

Platform that sources liquidity from multiple decentralized exchanges. Finds best prices across DEXs and optimizes trading routes for lowest slippage.

Platform for token analysis, charts, and trading information.

Minimal amounts of cryptocurrency too small to trade due to transaction fees. Often accumulated from partial fills or airdrops, can be consolidated through specialized dust collection features.

Decentralized exchange focused on perpetual contracts and margin trading. Offers up to 20x leverage and advanced trading features through a fast Layer 2 implementation.

Restaking protocol allowing ETH stakers to secure multiple networks simultaneously. Creates shared security market for crypto networks.

Initial token allocation reserved for specific purposes like development or ecosystem growth.

Multi-token standard supporting fungible/non-fungible. Features batch operations and efficient storage. Popular in gaming.

A standard for tokens on the Ethereum blockchain, defining a set of rules that all Ethereum-based tokens must follow.

Standardized yield-bearing vault interface. Includes deposit/withdrawal functions and yield accounting. Simplifies yield integration.

Non-fungible token standard. Includes unique IDs, metadata, and transfer mechanics. Used for digital collectibles.

Third-party service holding funds during transactions. Used in peer-to-peer trading and complex smart contracts to reduce counterparty risk.

Blockchain network that enables developers to launch their own tokens and build decentralized applications (DApps) using smart contracts. Supports thousands of decentralized applications through its EVM. Transitioned to Proof of Stake in 2022 via The Merge, significantly reducing energy consumption.

The runtime environment for smart contracts in Ethereum. It allows developers to create decentralized applications (dApps) that interact with the Ethereum blockchain. Many chains use a fork of the Ethereum Virtual Machine, so the EVM is a concept that you may also hear referenced on non-Ethereum networks, e.g. Binance Smart Chain, Arbitrum etc.

Price ratio between different cryptocurrencies or fiat currencies. Influenced by market supply and demand, trading volume and external events.

Malicious use of contract vulnerabilities for profit.

Equal-access token distribution. No pre-mine, team allocation, or early investor advantages. Aims for maximum decentralization.

The practice of staking or lending crypto assets to generate returns or rewards in the form of additional cryptocurrency.

Cryptographic technique allowing computation on encrypted data without decryption. Enables private smart contracts and confidential transactions.

Point at which transaction cannot be reversed or reorganized.

Uncollateralized loan that must be borrowed and repaid within single transaction. Used for arbitrage and complex DeFi strategies, requires deep understanding of smart contract interactions.

Psychological pressure to enter positions due to rising prices or perceived opportunities. Often leads to buying at market tops and emotional trading decisions.

Modular settlement layer focusing on institutional DeFi. Features purpose-built execution environment for complex financial operations.

Partial collateral model combining reserves with algorithmic supply control.

Modular execution layer with parallel transaction processing. Uses custom virtual machine and UTXO model for improved performance.

The ability of an asset to be exchanged or replaced with another asset of the same kind, such as Bitcoin or Ethereum.

Standardized contracts for future settlement. Includes expiration dates, margin requirements, and settlement procedures. Used for hedging/speculation.

Blockchain gaming incorporating financial elements like play-to-earn, tradeable assets and tokenized in-game economies. Evolving towards sustainable economic models and improved gameplay.

Integrating game mechanics into DeFi. Examples: prediction markets, NFT staking.

A unit that measures the amount of computational effort required to execute transactions and smart contracts on the Ethereum network.

First block in a blockchain, containing network configuration parameters.

Decentralized perpetual trading platform known for its multi-asset pool design. Offers zero price impact trades and shared liquidity across markets.

Protocol decision-making through token voting.

A token that represents voting power on a blockchain project, often used in DAOs to make decisions on the future of the project.

Unit of Ethereum gas price measurement.

Emergency shutdown of smart contract or protocol during critical issues.

A radical change to a blockchain’s protocol that makes previously invalid blocks/transactions valid (or vice-versa). It requires all nodes or users to upgrade to the latest version of the protocol software.

Cryptographic fingerprint of blockchain data.

The total computational power used to mine and process transactions on a blockchain network.

DAG-based network using hashgraph consensus. Popular for enterprise applications with high throughput requirements.

Investment strategy of holding cryptocurrency long-term regardless of market conditions. Originally a misspelling that became popular slang, represents belief in long-term value appreciation.

Token contract preventing sells through hidden code.

Cryptocurrency wallet connected to internet for active trading. Offers convenience at expense of security, should only hold amounts needed for regular transactions.

pecialized Layer 1 blockchain built for decentralized perpetual futures trading. Features an on-chain orderbook design and unique validator-oracle hybrid system for price feeds.

A type of funding using cryptocurrencies, typically by newly established cryptocurrency ventures to raise capital.

A fundraising mechanism through which many projects and startups raise funds by selling tokens on Decentralized Exchanges (DEXes) without undergoing the process of an ICO.

Risk faced by liquidity providers when asset prices change after deposit. Can outweigh trading fees earned, particularly in volatile trading pairs.

Blockchain data organization system. Features custom indexes and query optimization. Essential for efficient data access.

App-specific blockchain optimized for DeFi. Features built-in exchange functionality and CosmWasm smart contracts.

Traditional financial institutions entering crypto through custody, trading and investment products. Driving development of regulatory frameworks and enterprise infrastructure.

Process of adding blockchain or token support to platform. Involves technical implementation, security audits and often governance approval.

High-level description of desired transaction outcome, interpreted by intent processors.

The ability of different blockchain networks to communicate and work together, enabling the transfer of assets or information across chains.

IOTA is the first distributed ledger built for the “Internet of Everything” - a network for exchanging value and data between humans and machines.

The opposite of FOMO (Fear of Missing Out), where investors are content with not participating in potentially risky or overhyped investment opportunities.

Encrypted file containing private key information.

A process of verifying the identity of a user or client, often required in the context of exchanges and other financial services to comply with regulatory requirements.

Time between transaction submission and confirmation.

A secondary framework or protocol built on top of an existing blockchain to improve its scalability and efficiency.

Using borrowed funds to increase position size and potential returns. Amplifies both gains and losses, requires careful risk management to avoid liquidation.

Largest liquid staking protocol allowing users to stake assets while maintaining liquidity. Issues staked derivatives like stETH that can be used in DeFi while earning staking rewards.

Forced closing of leveraged position due to insufficient collateral. Results in loss of position and often additional penalties, common during high volatility.

Smart contract that locks LP tokens for a set period, preventing early withdrawal. Features vesting schedules and multi-sig protection.

A pool of tokens locked in a smart contract that facilitates trading on a decentralized exchange (DEX) by providing liquidity.

Protocols allowing users to stake assets while receiving tradeable derivatives. Solves the capital efficiency problem of traditional staking while maintaining network security.

Time period during which LP tokens remain locked in a locker contract. Typically ranges from 6 months to several years.

Pioneer of decentralized stablecoins through its DAI token. Uses a complex system of smart contracts, collateral types, and governance to maintain DAI's dollar peg without centralized reserves.

Total value of cryptocurrency, calculated as circulating supply times current price. Used to compare relative size of different cryptocurrencies and assess market dominance.

Cryptocurrency created primarily for entertainment/community. Often features dog themes, viral marketing, and large supply. Examples: DOGE (started as Bitcoin parody), SHIB (self-proclaimed "Dogecoin killer"), PEPE (based on Pepe the Frog meme).

Collection of unconfirmed transactions waiting to be processed.

Profit miners/validators can extract by reordering transactions. Includes arbitrage, sandwich attacks and other sophisticated trading strategies.

The process of creating new tokens or coins and adding them to the total supply, typically through mining or staking.

Architecture separating consensus, execution, data availability and settlement into specialized layers. Enables better scaling and optimization of each component.

High-performance blockchain optimized for DeFi applications. Uses parallel transaction execution and VM design to achieve higher throughput while maintaining EVM compatibility.

A type of digital signature that allows multiple users to sign a single document, commonly used in cryptocurrency wallets for added security.

Sharded blockchain with dynamic resharding. Uses Nightshade technology for parallel processing.

Cost of blockchain transaction processing.

A unique digital asset that represents ownership of a specific item or piece of content, verified through blockchain technology. Usually using an ERC-721 token standard rather than an ERC20.

A computer that participates in a blockchain network by maintaining a copy of the blockchain and helping to validate new transactions.

Counter preventing transaction replay attacks.

Service where users maintain control of private keys. Enables true ownership and self-custody but requires responsible key management.

Transactions or data that occur outside of the blockchain network, often to increase efficiency and reduce costs.

Individual instruction in smart contract bytecode.

Leading Layer 2 solution pioneering the OP Stack for modular rollup development. Known for its retroactive public goods funding, governance model, and SuperchainOS vision for unified L2 ecosystem. Created the OP token and Optimism Collective governance structure.

A third-party service that provides smart contracts with external information, such as real-world data, enabling them to execute based on conditions outside the blockchain.

List of all buy and sell orders for an asset. Shows market depth, potential price impact of large trades and overall trading interest.

Protocol enabling inscription of digital artifacts directly on Bitcoin. Sparked renewed interest in Bitcoin's capabilities beyond simple value transfer.

Direct trading between parties outside exchanges. Common for large trades to minimize market impact and get better prices.

A decentralized communication model in which each party has equal capabilities and can initiate a communication session, often used in the context of cryptocurrency exchanges.

Major DEX on BNB Chain. Features farming, lottery, NFTs, and IFO launchpad. Fork of Uniswap with enhanced functionality.

Multi-chain network allowing cross-chain transfers of any data type. Uses parallel processing through parachains to achieve scalability. Developed by Ethereum co-founder Gavin Wood.

Comprehensive scaling platform for Ethereum. Includes various solutions like PoS chain, zkEVM, and Supernets. Recently acquired by Microsoft to advance web3 infrastructure.

Built-in smart contracts with optimized functionality.

Token sale before public launch. Often includes vesting, lockups, and minimum/maximum contributions. Requires careful due diligence.

A secret key used in cryptography, allowing the owner to access and manage their cryptocurrency.

Permissioned validators with known identities. Used in private/consortium chains. Sacrifices decentralization for performance.

Mining using storage resources instead of computation. Includes challenges, plotting, and farming processes. More sustainable than PoW.

Validator selection based on token stake. Features slashing conditions, reward distribution, and delegation mechanics. More energy efficient than PoW.

Consensus through computational puzzles. Uses hashrate-based leader selection and longest chain rule. High security but energy intensive.

Cryptographic address derived from private key. Safe to share publicly, used to receive funds and verify ownership.

A machine-readable code used to store cryptocurrency addresses, allowing for quick and easy transactions via scanning.

Minimum number of participants required for consensus decisions.

Solana's leading DEX combining AMM with Serum's order book. Offers concentrated liquidity, staking, and accelerator program for new projects.

Bringing traditional financial assets like real estate, bonds and private credit on-chain. Uses tokenization to increase liquidity and accessibility of previously illiquid assets.

Slang for suffering significant losses in crypto trading. Often result of leverage liquidations or failed trading strategies.

Chain restructuring when longer valid chain is found.

Protocol allowing reuse of staked assets as security for additional services. Improves capital efficiency by enabling multiple yields from single staked position.

Canceling token spending approval.

Measure of investment profitability comparing gains to costs. Important metric for evaluating trading strategies and project investments.

A Layer 2 scaling solution that bundles multiple transactions into a single transaction, reducing the load on the main blockchain.

A type of scam where developers abandon a project and run away with investors’ funds, unfortunately frequently these are often seen in the DeFi space.

zkEVM rollup focusing on EVM equivalence. Uses custom proving system for efficient verification.

urpose-built blockchain for trading applications. Features built-in orderbook and parallel transaction processing optimized for trading operations.

Entity ordering transactions in Layer 2 systems.

Price difference between expected and actual trade execution. Higher in illiquid markets or during volatile periods, can significantly impact large trades.

Self-executing contracts with the terms of the agreement directly written into code, running on a blockchain.

Decentralized social networks combining social media with financial incentives. Features include tokenized followers, content monetization and reputation systems.

High-performance blockchain using proof-of-history and proof-of-stake consensus mechanisms. Capable of processing 65,000+ TPS with sub-second finality. Popular for DeFi and NFTs due to its speed and low transaction costs.

Independent Layer 2 networks with their own economic security and governance. Enables specialized chains optimized for specific use cases while leveraging Layer 1 settlement.

Feature allowing partial release of locked liquidity according to predefined schedule.

Direct exchange of cryptocurrencies at current market prices. Most basic form of trading, settles immediately without leverage.

Cryptocurrency maintaining peg to fiat (usually USD). Types: fiat-backed (USDT, USDC), crypto-backed (DAI), algorithmic (FRAX).

ZK rollup platform using Cairo programming language. Provides strong provable security guarantees.

Token launch without prior announcement to prevent front-running and ensure fair distribution.

High-throughput Layer 1 built by former Meta employees. Uses object-centric data model and parallel transaction execution to achieve horizontal scalability.

Uniswap fork with yield farming, lending, and cross-chain support.

Study of price patterns and indicators to predict future movements. Combines chart patterns, indicators and market psychology.

EVM-compatible blockchain focusing on speed and sustainability. Features governance mechanisms and resource allocation model designed for enterprise applications.

Maximum transaction processing capacity of network.

Digital asset on blockchain. Can be fungible (ERC-20) or non-fungible (ERC-721). Represents value, utility, or ownership.

Process of creating new tokens. Can be fixed supply or dynamic with controlled emission.

The economic model of a cryptocurrency token, including its distribution, supply, demand, and incentives.

Telegram-affiliated blockchain with unique smart contract architecture. Features infinite sharding and fast finality.

A measure of how many transactions a blockchain network can process each second.

Restrictions on transaction size and frequency to prevent manipulation.

Two cryptocurrencies that can be exchanged directly. More liquid pairs typically involve major cryptocurrencies or stablecoins.

A popular decentralized exchange (DEX) protocol that uses an automated market maker (AMM) model to facilitate token swaps.

Percentage of time network operates without interruption.

Regulated USD stablecoin by Circle/Coinbase. Monthly audited, fully backed by cash and T-bills. Growing institutional adoption.

Largest stablecoin ($80B+ market cap). Claims 100% backing but faced controversy over reserve composition.

A type of token that provides users with access to a product or service within a specific ecosystem, often used to incentivize participation.

A participant in a blockchain network that validates transactions and secures the network, often through staking in Proof of Stake (PoS) systems.

The process of locking tokens for a specific period, typically to incentivize long-term commitment to a project.

Gradual release of locked tokens over time. Can be linear, cliff-based, or custom.

Magnitude of price changes over time. Characteristic of crypto markets, creates both trading opportunities and risks.

Total amount of asset traded within specific timeframe. Indicates market activity and liquidity, helps validate price movements.

A digital tool that allows users to store, send, and receive cryptocurrencies securely.

Next generation internet built on blockchain technology. Emphasizes decentralization, user ownership of data and native digital assets.

Approved addresses eligible for token sales or NFT mints. Often requires early participation or meeting specific criteria.

Mandatory waiting period between requesting and executing liquidity withdrawal.

A token that represents another cryptocurrency on a different blockchain, allowing for cross-chain compatibility.

Token standard for creating fungible tokens on XRP Ledger. Similar to ERC-20 but optimized for XRPL's consensus mechanism and features.

A graph that shows the relationship between interest rates and the maturity of different debt instruments.

The practice of staking or lending crypto assets to earn rewards in the form of additional cryptocurrency.

A cryptographic method that allows one party to prove to another that a statement is true without revealing any specific information about the statement itself.

A specific type of zero-knowledge proof that is used to enable private transactions on certain blockchains, like Zk-cash.

Leading zkEVM rollup with native account abstraction. Pioneered numerous Layer 2 scaling innovations.