Cryptocurrency Glossary

Cryptocurrency can be a confusing and complex world, especially for beginners. With all the technical jargon and acronyms, it’s easy to feel overwhelmed. That’s why we’ve created this comprehensive cryptocurrency glossary to help you navigate the world of digital currencies with ease.

Whether you’re a seasoned crypto investor or just starting out, having a solid understanding of key cryptocurrency terms is essential, and this glossary is a great place to start.

So, here’s a look at over 250+ of the most common terms related to cryptocurrencies and digital assets:

51% Attack

A 51% attack is when a miner or mining pool controls more than 50% of the computing power on a blockchain network. With majority control, the attacker can manipulate transactions by reversing payments, preventing confirmations, and double spending coins.

A 51% attack undermines the decentralized nature and security of a blockchain by giving centralized control to the attacker. The goal is often financial gain through currency manipulation or undermining confidence in the system.

Airdrop

An airdrop is a method used by cryptocurrency projects to distribute free tokens or coins to a specific group of users. These distributions are typically promotional or as part of a network upgrade.

Airdrops can occur on existing blockchains, like Ethereum, where holders of a specific cryptocurrency receive new tokens, or they can happen on new blockchain networks. Recipients usually need to meet certain criteria or hold a minimum amount of the cryptocurrency to qualify.

Algorithm

In the context of cryptocurrencies, an algorithm refers to the mathematical process used to secure the network, validate transactions, and add them to the blockchain.

The most common cryptocurrency algorithm is the SHA-256 used by Bitcoin. These algorithms are fundamental to the consensus mechanism, ensuring the integrity and security of the blockchain.

Altcoin

An altcoin, short for “alternative coin,” refers to any cryptocurrency other than Bitcoin. Altcoins aim to provide different features or improvements compared to Bitcoin.

Examples include Ethereum (with smart contract capabilities) and Litecoin (offering faster transaction confirmation times). Altcoins are often created through a process called forking, where a new blockchain is created by modifying an existing one.

Address

In the cryptocurrency world, an address is a unique identifier that represents a location on the blockchain where you can send or receive cryptocurrency. It’s like a bank account number in the traditional financial system.

Cryptocurrency addresses are usually a combination of letters and numbers and are used to ensure that transactions are correctly routed to the intended recipient.

AML (Anti-Money Laundering)

AML refers to the set of laws, regulations, and procedures put in place to prevent and detect illegal activities related to money laundering and terrorist financing within the cryptocurrency industry.

Cryptocurrency exchanges and service providers often implement AML practices to verify the identities of their users and monitor transactions for suspicious activity, helping to maintain the integrity of the financial system.

Angel Investor

An angel investor is an individual who provides capital to startups or early-stage companies, including those in the cryptocurrency and blockchain space, in exchange for ownership equity or convertible debt.

These investors often offer financial support, mentorship, and industry connections to help the businesses grow. In the cryptocurrency world, angel investors play a crucial role in funding innovative projects, allowing them to develop their technology and bring it to market.

Anonymization

Anonymization is the process of concealing or obfuscating the identity of individuals involved in cryptocurrency transactions.

While cryptocurrencies are often touted as pseudonymous (transactions are linked to addresses, not real-world identities), various techniques like coin mixing or privacy coins aim to make transactions more private and unlinkable, enhancing user privacy and security.

API (Application Programming Interface)

An API is a set of rules and protocols that allows different software applications to communicate and interact with each other.

In the context of cryptocurrency, APIs are crucial for exchanges, wallets, and other services, as they enable developers to access and integrate blockchain data, execute trades, and build applications that interact with blockchain networks.

ASIC (Application-Specific Integrated Circuit)

An ASIC is a specialized piece of hardware designed for a specific computing task.

In the world of cryptocurrencies, ASIC miners are devices built specifically for the process of mining, which involves solving complex mathematical puzzles to validate transactions and add them to the blockchain. ASIC miners are highly efficient at this task and are commonly used for mining Bitcoin and other cryptocurrencies.

ASIC Miner

An ASIC miner is a piece of hardware designed for the sole purpose of cryptocurrency mining.

These devices are highly specialized, optimized for specific mining algorithms, and are significantly more efficient than general-purpose computers or GPUs. ASIC miners have become the standard for large-scale cryptocurrency mining operations due to their superior hashing power and energy efficiency.

Bagholder

A bagholder is a term used in the cryptocurrency community to describe an investor who is left holding a substantial amount of a cryptocurrency that has significantly decreased in value and is unlikely to recover.

Bagholders often face losses due to poor investment decisions or being stuck with assets from a project that failed or suffered a severe price decline.

Bank Book

In the context of cryptocurrencies, a “bank book” typically refers to a ledger or record of cryptocurrency transactions, much like a traditional bank statement.

It provides a history of transactions, including deposits, withdrawals, and balances, allowing users to track their cryptocurrency holdings and activities.

Bid-Ask Spread

The bid-ask spread represents the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) for a specific cryptocurrency or asset on an exchange.

It’s a key indicator of liquidity and market efficiency. A narrow spread suggests a highly liquid market with minimal price discrepancies, while a wider spread may indicate lower liquidity and potential price volatility.

Bitcoin

Bitcoin (BTC) is the pioneering and most well-known cryptocurrency. It was created by an anonymous entity or group known as Satoshi Nakamoto and introduced in a 2008 whitepaper.

Bitcoin operates on a decentralized network, using a blockchain to record and verify transactions. It’s often referred to as “digital gold” and is used as a store of value and a medium of exchange in various online and offline transactions.

Bitcoin Cash

Bitcoin Cash (BCH) is a cryptocurrency that emerged as a result of a hard fork from the original Bitcoin blockchain in 2017.

It was created to address scalability issues by increasing the block size limit, allowing for faster and cheaper transactions. Bitcoin Cash shares some similarities with Bitcoin but has its own separate blockchain and network of users.

Bitcoin Halving

Bitcoin halving is an event that occurs approximately every four years, reducing the reward that miners receive for validating and adding new transactions to the Bitcoin blockchain.

This process is hard-coded into the Bitcoin protocol to control the inflation rate and ensure a limited supply of coins. The halving reduces the block reward by half, impacting miners’ profitability and potentially affecting the overall supply and demand dynamics in the Bitcoin market.

Bitcoin Mining

Bitcoin mining is the process by which new bitcoins are created and transactions are added to the blockchain.

Miners use powerful computers to solve complex mathematical puzzles, and the first one to solve it gets the right to add a new block to the blockchain and is rewarded with newly created bitcoins and transaction fees. Mining is essential for maintaining the security and decentralization of the Bitcoin network.

Block

In the context of blockchain technology, a block is a fundamental unit of data that contains a group of transactions.

These blocks are linked together sequentially to form a chain, hence the name “blockchain.” Each block typically includes a unique identifier (hash) of the previous block, creating a secure and tamper-resistant ledger of all transactions.

Block Height

Block height is a numerical value that represents the position or number of a specific block within a blockchain. It serves as a way to identify and reference a particular block in the blockchain’s history. For example, “block height 700,000” refers to the 700,000th block added to the blockchain.

Block Reward

The block reward is the amount of cryptocurrency, such as Bitcoin, that miners receive as a reward for successfully mining and adding a new block to the blockchain.

This reward consists of newly created coins (often called the “coinbase reward”) and transaction fees paid by users for including their transactions in the block. The block reward serves as an incentive for miners to secure the network and validate transactions.

Block Size

Block size refers to the maximum amount of data that can be included in a single block of a blockchain. In the context of Bitcoin, for example, the block size was initially set at 1 MB.

However, debates and discussions around block size have led to protocol upgrades, with Bitcoin’s Segregated Witness (SegWit) and Bitcoin Cash increasing their respective block sizes to accommodate more transactions and reduce congestion.

Blockchain

A blockchain is a distributed ledger technology that records transactions across a network of computers in a secure and tamper-resistant manner. It consists of a chain of blocks, each containing a group of transactions.

Blockchain technology is decentralized, transparent, and immutable, making it suitable for various applications beyond cryptocurrencies, such as supply chain management, voting systems, and more.

Bonus

In the cryptocurrency context, a bonus typically refers to an additional reward or incentive offered to participants in an initial coin offering (ICO) or token sale. Bonuses can come in various forms, including extra tokens, discounts, or early access, and are often used to encourage early participation and investment in a project.

Bot

A bot, short for “robot,” is a computer program that can perform automated tasks. In the cryptocurrency space, trading bots are commonly used to execute buy and sell orders on exchanges based on predefined algorithms. These bots can analyze market data, track price movements, and make trading decisions in real-time, often aiming to capitalize on market fluctuations.

Burn

 In the context of cryptocurrencies, “burn” refers to the deliberate and permanent removal of a certain amount of cryptocurrency tokens or coins from circulation.

This process reduces the total supply of the cryptocurrency, which can affect its scarcity and potentially impact its value. Burning can be done for various reasons, including improving tokenomics, increasing scarcity, or aligning the token’s utility with the ecosystem.

Burn Reserve

A burn reserve is a designated pool of cryptocurrency tokens or coins set aside by a project or organization to be intentionally destroyed (burned) at a later time. Burn reserves are often used to create deflationary pressure, increase token value, or redistribute value within a cryptocurrency ecosystem.

Buy Wall

A buy wall is a significant volume of buy orders for a particular cryptocurrency at a specific price level on an exchange.

It appears as a wall of buy orders on the order book, indicating strong demand at that price. Buy walls can influence market sentiment and serve as a psychological support level, as traders may expect the price to bounce off that level if it approaches it.

Byzantine Fault

The Byzantine fault is a term used in computer science and distributed systems to describe a situation where nodes or participants in a network may fail or act maliciously.

In the context of cryptocurrencies, Byzantine faults are essential to consider in the design of consensus mechanisms to ensure that the network can reach agreement even in the presence of potentially unreliable or malicious nodes.

Byzantine Fault Tolerance

Byzantine Fault Tolerance (BFT) is a property of a distributed network or system that can continue to function correctly and reach consensus even when a certain percentage of its nodes are faulty or behave maliciously.

BFT consensus algorithms are crucial for ensuring the security and reliability of blockchain networks, as they allow nodes to agree on the state of the blockchain despite potential adversarial actions.

CCI30 Crypto Currencies Index

The CCI30 Crypto Currencies Index is a cryptocurrency market index that tracks the performance of the top 30 cryptocurrencies by market capitalization.

It provides a snapshot of the broader cryptocurrency market and is often used as a benchmark to gauge the overall performance of the industry. The CCI30 helps investors and analysts assess the trends and movements of the most significant cryptocurrencies in the market.

Central Ledger

A central ledger is a traditional ledger or record-keeping system in which a central authority or organization maintains and controls all transaction records and balances.

In contrast, blockchain technology operates without a central ledger, relying on a decentralized network of nodes to maintain a distributed ledger. Cryptocurrencies like Bitcoin use decentralized ledgers to eliminate the need for a central authority.

Circulating Supply

The circulating supply of a cryptocurrency refers to the total number of coins or tokens that are currently available and actively in circulation in the market.

It excludes coins that are locked or held by the project’s team, reserves, or other entities. Understanding the circulating supply is essential for assessing a cryptocurrency’s market capitalization, pricing dynamics, and overall supply-demand factors.

Coin

A coin in the cryptocurrency world refers to a digital or virtual representation of value that can be used as a medium of exchange, similar to traditional physical coins or cash.

Coins are individual units of a cryptocurrency and have a distinct value. Bitcoin (BTC) and Ethereum (ETH) are examples of cryptocurrencies that have coins as their primary units of value.

Coin Burn

Coin burn is the process of permanently removing a specific quantity of a cryptocurrency from circulation. This is typically done by sending the coins to an address where they cannot be spent or retrieved, effectively reducing the total supply of the cryptocurrency.

Coin burns are often used to create deflationary pressure, increase scarcity, or improve tokenomics by aligning the token’s supply with its ecosystem’s needs.

Cold Storage

Cold storage in the context of cryptocurrencies refers to a secure method of storing digital assets offline. It typically involves using hardware wallets, paper wallets, or other physical devices that are not connected to the internet.

Cold storage is highly secure because it protects cryptocurrencies from online threats like hacking and malware. It’s often used for long-term storage of significant amounts of cryptocurrency.

Cold Wallet

A cold wallet is a type of cryptocurrency wallet specifically designed for cold storage. It is a physical device or offline software that securely stores private keys and enables users to keep their cryptocurrency holdings offline, away from potential online threats.

Colored Coin

A colored coin is a digital token that represents ownership of a real-world asset or has a unique set of attributes and characteristics.

These attributes can be “colored” onto a cryptocurrency token, allowing it to represent assets like real estate, stocks, or commodities on a blockchain. Colored coins enable the tokenization of real-world assets and enhance their transferability and divisibility on blockchain networks.

Commit

In the context of blockchain technology, “commit” refers to the process of finalizing and recording a set of transactions or data onto a blockchain. Once transactions are committed to a block and added to the blockchain, they become immutable and part of the blockchain’s permanent history.

Comparison Site

A comparison site in the cryptocurrency space is a website or platform that allows users to compare various aspects of different cryptocurrencies, such as price, market capitalization, trading volume, and features. These sites provide valuable information to investors and traders looking to make informed decisions about which cryptocurrencies to buy, sell, or trade.

Complementary Currency

A complementary currency is a form of currency that exists alongside and complements the official or national currency of a region or country.

In some cases, cryptocurrencies can serve as complementary currencies, offering unique features or benefits that the official currency may not provide. Complementary currencies are often used in local economies, community projects, or as a means of promoting specific economic behaviors.

Computationally Universal

Computationally universal refers to the property of a computing system, such as a blockchain network or computer program, that can perform any computation or execute any task that can be described algorithmically.

A computationally universal system is capable of solving a wide range of problems and running diverse applications, making it highly versatile and powerful.

Consensus Mechanism

A consensus mechanism is a set of rules and protocols used by a blockchain network to achieve agreement among its participants regarding the state of the ledger.

Different blockchain networks employ various consensus mechanisms, such as Proof of Work (PoW) and Proof of Stake (PoS), to validate transactions and maintain the integrity of the blockchain.

Consensus Process

The consensus process in a blockchain network involves the collective decision-making by network participants to agree on the validity of transactions and the order in which they are added to the blockchain.

It is a fundamental aspect of blockchain technology, ensuring that all nodes in the network have a consistent and verifiable record of transactions.

Cosmos Network

The Cosmos Network is a blockchain ecosystem designed to enable the interoperability and seamless communication between different blockchains.

It achieves this through the use of a hub-and-spoke model, where multiple blockchains (called “zones”) can connect to a central blockchain (the “hub”) and exchange data and assets. The Cosmos Network aims to address scalability and interoperability challenges in the blockchain industry by facilitating the transfer of value and information between blockchains.

Crowd Sale

A crowd sale, also known as a crowdsale or token sale, is a fundraising method commonly used by blockchain and cryptocurrency projects.

In a crowd sale, project developers offer digital tokens or coins for sale to the public, usually in exchange for cryptocurrencies like Bitcoin or Ethereum. Participants in the crowd sale contribute funds to support the project and receive tokens as a form of ownership or access to the project’s services or products.

Crowdfunding

Crowdfunding is a broader fundraising concept that includes various methods for raising capital from a large number of people.

In the context of cryptocurrencies and blockchain, crowdfunding often involves Initial Coin Offerings (ICOs) and Security Token Offerings (STOs), where individuals and investors contribute funds to support blockchain projects and receive tokens or securities in return.

Crypto Exchange

A cryptocurrency exchange is an online platform that allows users to buy, sell, and trade cryptocurrencies.

These platforms serve as intermediaries, providing order matching and liquidity for users looking to trade digital assets. Some popular cryptocurrency exchanges include Coinbase, Binance, and Kraken.

Crypto Index (CRIX)

The Crypto Index (CRIX) is a mathematical index that tracks the performance of a basket of cryptocurrencies over time. It provides a comprehensive view of the cryptocurrency market by calculating a weighted average of various digital assets. The CRIX helps investors and analysts assess the overall market trends and changes in the cryptocurrency space.

Crypto Protocol

A cryptocurrency protocol refers to the set of rules and standards that govern how a specific blockchain or cryptocurrency operates.

These protocols define various aspects, including how transactions are validated, how new coins are created and distributed, and how consensus is reached within the network. Cryptocurrency protocols are essential for maintaining the integrity and security of blockchain ecosystems.

Cryptocurrency

A cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology.

They are often used for various purposes, including online payments, investments, and as a store of value. Examples of cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

Cryptographic Nonce

A cryptographic nonce, short for “number used once,” is a random or pseudo-random number that is used only once in a cryptographic operation.

Nonces are commonly used in blockchain technology, especially in the Proof of Work (PoW) consensus mechanism, to create unique hash values for each block. They help prevent replay attacks and ensure that miners must perform significant computational work to find valid blocks.

Custodian

A custodian in the cryptocurrency industry is an entity or service provider responsible for safeguarding and managing digital assets on behalf of individuals or institutions. Custodians offer secure storage solutions for cryptocurrencies, including cold storage and multi-signature wallets, and often implement strict security measures to protect clients’ assets.

Cybersecurity

Cybersecurity encompasses practices, processes, technologies, and measures designed to protect digital systems, networks, and data from theft, damage, or unauthorized access.

In the context of cryptocurrencies and blockchain, cybersecurity is of paramount importance to protect digital assets and prevent security breaches or hacking attempts.

Cypherpunk

Cypherpunks are individuals who advocate for the widespread use of strong cryptography and privacy-enhancing technologies to promote personal freedom and privacy in the digital age. They have played a significant role in the development and adoption of cryptographic tools and cryptocurrencies as means to achieve greater online privacy and security.

Cryptography

Cryptography is the science of secure communication and data protection through the use of mathematical algorithms and encryption techniques.

In the context of cryptocurrencies, cryptography is essential for securing transactions, verifying identities, and protecting the integrity of blockchain networks. Public and private keys, cryptographic hashing, and digital signatures are key components of cryptocurrency cryptography.

Crypto Tokens

Crypto tokens are digital representations of assets or utility on a blockchain network.

These tokens can represent a wide range of assets, including physical goods, services, or even ownership in a specific project or organization. They are often used within blockchain ecosystems to facilitate transactions, access services, or participate in decentralized applications (dApps).

Decentralized Application (dApp)

A decentralized application, or dApp, is a software application that operates on a blockchain or distributed ledger network. Unlike traditional applications, dApps are decentralized, meaning they don’t rely on a central authority or server.

They use blockchain technology for data storage, transaction processing, and user interaction. Examples of dApps include decentralized finance (DeFi) platforms, blockchain-based games, and token exchanges.

Decentralized Autonomous Organization (DAO)

A Decentralized Autonomous Organization, or DAO, is a type of organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government.

DAOs are typically run on blockchain networks and use smart contracts to execute rules and decisions. They are often used for decentralized governance, investment pools, and crowdfunding.

DAG (Directed Acyclic Graph)

A Directed Acyclic Graph, or DAG, is a data structure used in some blockchain alternatives, such as IOTA and Nano.

Unlike traditional blockchains, which use linear blocks to record transactions, DAGs use a branching structure where transactions are directly linked to multiple previous transactions. DAGs aim to improve scalability and transaction speed while eliminating miners and transaction fees.

DAICO (Decentralized Autonomous Initial Coin Offering)

A DAICO is a hybrid fundraising model that combines elements of an ICO (Initial Coin Offering) with features of a DAO (Decentralized Autonomous Organization).

In a DAICO, contributors have more control over the release of funds to a project based on the project’s development milestones and objectives. This model aims to enhance transparency and reduce the risk of fraudulent or mismanaged projects.

Data Anonymization

Data anonymization is a process of removing or altering personally identifiable information (PII) from data sets to protect the privacy of individuals.

In the context of cryptocurrencies, data anonymization techniques are used to enhance user privacy when conducting transactions or sharing information on the blockchain. Methods like zero-knowledge proofs and ring signatures enable transactions to be verified without revealing specific user identities.

Directed Graph (DG)

A Directed Graph, often denoted as DG, is a mathematical structure used to represent relationships and connections between nodes or vertices.

In blockchain technology, directed graphs are used to illustrate the flow of transactions, smart contract interactions, and data propagation within a blockchain network. They help visualize the order and dependencies of events on a blockchain.

Diaas (Digital Identity as a Service)

Digital Identity as a Service, or Diaas, is a service model that offers digital identity management and verification solutions to individuals and organizations. It allows users to establish and prove their identities online securely.

In the context of cryptocurrencies, Diaas can play a crucial role in complying with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, ensuring the legitimacy of users in cryptocurrency transactions.

Digital Asset

A digital asset is any type of value or ownership represented in a digital form. This can include cryptocurrencies, tokens, digital representations of physical assets (e.g., real estate or art), and other digital financial instruments. Digital assets are often issued and traded on blockchain networks, providing transparency and security in ownership and transfer.

Digital Asset Array (DAA)

A Digital Asset Array (DAA) is a collection or portfolio of various digital assets, including cryptocurrencies and tokens. DAAs are managed by investment platforms or funds, allowing users to invest in a diversified selection of digital assets, reducing risk, and potentially increasing returns.

Digital Currency

Digital currency is a type of currency that exists purely in digital or electronic form, without a physical counterpart like paper money or coins. Cryptocurrencies, such as Bitcoin and Ethereum, are examples of digital currencies. They can be used for online transactions, investments, and as a store of value.

Digital Currency Exchanges

Digital currency exchanges are online platforms where users can buy, sell, and trade digital currencies. These exchanges provide liquidity for cryptocurrencies and facilitate the conversion between different digital assets. Examples include Coinbase, Binance, and Kraken.

Digital Identity

Digital identity refers to the digital representation of an individual’s identity and attributes. It includes personal information, biometrics, and credentials used for online verification and authentication. Blockchain technology can enhance digital identity by providing secure and self-sovereign identity solutions.

Digital Money

Digital money, also known as electronic money or e-money, is a form of currency that exists only in electronic form. It can be used for online payments, transfers, and purchases. Digital money includes both traditional digital payment methods (e.g., credit cards) and cryptocurrencies.

Digital Payment

Digital payment refers to the process of transferring money or value electronically, typically using digital wallets, mobile apps, or online banking systems. Cryptocurrencies have expanded the options for digital payments, offering faster and more secure transactions.

Digital Security

Digital security encompasses measures, protocols, and technologies used to protect digital systems, data, and assets from cyber threats, hacking, and unauthorized access. Strong digital security is essential in the cryptocurrency industry to safeguard users’ funds and sensitive information.

Digital Security Offering (DSO)

A Digital Security Offering (DSO) is a fundraising method that involves the issuance of digital securities or tokens representing ownership in an asset or company. DSOs are subject to securities regulations and are designed to provide investors with financial rights and benefits.

Digital Signature

A digital signature is a cryptographic technique used to verify the authenticity and integrity of digital documents or transactions. It provides a way for parties to confirm that a document or message has not been altered and was indeed created or approved by a specific entity.

Digital Token

A digital token is a unit of value or utility that is created, issued, and managed on a blockchain or distributed ledger. Tokens can represent various assets, rights, or access to services within a blockchain ecosystem.

Digital Wallet

A digital wallet is software or hardware designed to store, manage, and interact with digital assets, including cryptocurrencies and tokens. Digital wallets provide secure storage, transaction capabilities, and access to blockchain networks.

Distributed Ledger

A distributed ledger is a decentralized database or record-keeping system that maintains a continuously growing list of transactions across multiple nodes or computers. Blockchain technology is one example of a distributed ledger, providing transparency and security in recording transactions.

DLT (Distributed Ledger Technology)

Distributed Ledger Technology (DLT) refers to the broader category of technologies that includes blockchain. DLT encompasses various decentralized data-sharing and consensus mechanisms used to record and verify transactions in a distributed network.

Double Spending

Double spending is a potential issue in digital currencies, where a user can spend the same cryptocurrency twice, leading to fraudulent transactions. Blockchain networks prevent double spending through consensus mechanisms and transaction verification.

Double-Spending Attack

A double-spending attack is an attempt to spend the same digital currency or token more than once, usually by exploiting vulnerabilities in a blockchain or payment system. Such attacks can undermine the trust and integrity of a cryptocurrency network.

Ecosystem

An ecosystem in the context of cryptocurrencies and blockchain refers to the interconnected network of participants, projects, services, and technologies that collectively support and operate within a particular blockchain or cryptocurrency environment.

EEA (Enterprise Ethereum Alliance)

The Enterprise Ethereum Alliance (EEA) is a consortium of companies and organizations that collaborate to develop and promote Ethereum-based blockchain solutions for enterprise applications. EEA aims to accelerate the adoption of Ethereum technology in various industries.

Electronic Money

Electronic money, or e-money, is a digital representation of fiat currency issued and regulated by central authorities or financial institutions. E-money is used for online transactions and digital payments, and it is often stored in electronic wallets or accounts.

Encryption

Encryption is the process of encoding data or messages in such a way that only authorized parties can read it. It converts plaintext to ciphertext using cryptographic techniques. Encryption protects data confidentiality and integrity. It is widely used in blockchain to secure transactions.

Enterprise Ethereum Alliance

The Enterprise Ethereum Alliance is a member-driven standards organization focused on developing open, blockchain specifications for business use cases. It aims to align enterprises, startups, academics, and technology vendors to build, promote, and broadly support Ethereum-based technology best practices, standards, and reference architectures.

ERC (Ethereum Request for Comments)

An ERC is a proposal to improve Ethereum that adheres to coding and documentation standards. ERCs allow the Ethereum community to discuss, design, and implement changes to Ethereum. Examples include ERC-20 for fungible tokens and ERC-721 for non-fungible tokens.

ERC-1400

ERC-1400 is a standard for issuing Security Tokens on the Ethereum blockchain. It allows information like regulatory compliance to be embedded into tokens themselves. ERC-1400 provides a standard interface and methods to enhance regulatory oversight and legal certainty over token transactions.

ERC-20

The ERC-20 standard defines a common interface for fungible tokens on the Ethereum blockchain. These include functions like totalSupply(), balanceOf(), transfer() and transferFrom(). ERC-20 provides a standard template and rules for creating new tokens and enhances interoperability between applications.

ERC-721

ERC-721 is a standard interface for non-fungible tokens on Ethereum, like cryptocollectibles or digital artwork. It implements functions like ownerOf(), transfer(), approve(), to enable unique digital assets with provable scarcity and ownership. The standard provides a foundation for interoperability of NFTs.

Error avalanche

Error avalanche refers to small errors compounding into large systemic failures in a blockchain network. A minor technical glitch can snowball into broader consensus failures. This risk increases with greater complexity. Avoiding central points of failure mitigates error avalanches.

Ether

Ether is the native cryptocurrency that powers the Ethereum network. It is digitally scarce, fungible, transferable and can be programmatically controlled. Ether is used to pay for gas fees on transactions and computational services on Ethereum. It provides economic incentives for a distributed network of nodes.

Ethereum

Ethereum is a decentralized, open source blockchain featuring smart contract functionality. It provides a distributed virtual machine that can execute peer-to-peer contracts using a cryptocurrency called ether. Ethereum enables developers to build and deploy decentralized applications.

Ethereum Classic

Ethereum Classic is a fork of Ethereum created in 2016 after the DAO hack. It preserved the original Ethereum blockchain and did not implement a hard fork to return funds lost in the DAO. Ethereum Classic’s ideology favors immutability and lack of censorship over reversing transactions.

Exchange

A cryptocurrency exchange is a platform that allows customers to trade digital currencies for other assets like conventional money or other digital currencies. Exchanges are a primary tool for accessing cryptocurrencies and provide valuable liquidity to the market.

Fabric

Hyperledger Fabric is an open source enterprise-grade permissioned distributed ledger technology (DLT) platform. It allows participants to collaborate in a trusted network, where privacy and confidentiality are built in. Designed for use cases across multiple industries.

Fiat money

Fiat money refers to government-issued currency that is not backed by a physical commodity, but rather by the faith and credit of the economy. Fiat money like the US Dollar or Euro is declared by a government to be legal tender. Its value stems from government regulation and law.

Fiat ramp

A fiat ramp or fiat gateway allows users to exchange fiat currencies like dollars for cryptocurrencies and vice versa. Ramps provide liquidity between crypto ecosystems and traditional finance. They are necessary for mainstream adoption as most salaries are still paid in fiat.

Financial inclusion

Financial inclusion refers to individuals and businesses having access to useful and affordable financial products and services. Blockchain technology can promote inclusion by lowering costs, removing middlemen, and reaching underbanked regions.

Finney

A finney is a fraction of the cryptocurrency ether, equal to 10^15 wei or .001 ether. Named after computer scientist Hal Finney, who was one of the first people to use the Bitcoin network. The finney provides a more convenient denomination for smaller amounts of ether.

First-mover advantage (FMA)

First-mover advantage refers to the competitive edge gained by the first company to enter a market or use a new technology. In crypto, Bitcoin has benefitted from being the first usable cryptocurrency and Ethereum from pioneering smart contracts. FMA allows establishing norms, branding, network effects.

Flappening

Flappening refers to Litecoin overtaking Bitcoin Cash in market capitalization to become the 4th largest cryptocurrency after Bitcoin, Ethereum, and XRP. This change in position occurred in mid-2018 amidst a bear market.

Flippening

The flippening refers to a hypothetical future event where Ethereum overtakes Bitcoin to become the largest cryptocurrency by market capitalization. This would represent a major shift in crypto dominance. Nobody knows when this will happen or if it will ever happen.

Fork

A fork is a change to the software protocol of a blockchain network that forms an alternative version of the blockchain, either permanently (hard fork) or temporarily (soft fork). Forks may be implemented to add new features or reverse transactions.

Hard Fork

A hard fork is a permanent divergence from a blockchain’s existing protocol; nodes must upgrade to the new protocol to remain part of the network. Hard forks often aim to improve technology or fix security risks but can have the side effect of splitting the network.

Soft Fork

A soft fork is a temporary divergence in a blockchain’s protocol that is backwards compatible. Nodes can still participate without upgrading, as soft forks only restrict not add functionality. Soft forks aim to improve blockchain by adding features incrementally.

FPGA (Field Programmable Gate Array)

An FPGA is an integrated circuit designed to be configured after manufacturing. In crypto mining, FPGAs allows miners to quickly switch between algorithms, but are more expensive than GPUs. ASICs made FPGA mining uncompetitive for Bitcoin and Ethereum.

Fraud

Fraud refers to intentional deception to secure unfair gain. Blockchains are resistant but not immune to certain fraud schemes and scams. These include Ponzi schemes, fake ICOs, phishing, sybil attacks, 51% attacks, pump and dumps, spoofing, and more. Vigilance is key.

FUD (Fear, Uncertainty, Doubt)

FUD refers to spreading misinformation that causes fear, uncertainty and doubt about cryptocurrencies, often for profit. FUDsters may try to manipulate prices by dismissing technology, slandering founders, calling projects scams, exaggerating risks, etc.

FUDster

A FUDster is someone who deliberately spreads FUD (fear, uncertainty and doubt) about cryptocurrencies to damage reputations, manipulate prices, or simply for their own amusement. Most FUDsters act anonymously and dishonestly.

Full node

A full node is software that fully validates transactions and blocks on a blockchain. It enforces consensus rules, keeps the network decentralized, and provides increased security and privacy for users. Full nodes are distinguished from light nodes with partial blockchain validation.

Fungible

Fungibility refers to the interchangeability of assets. Fungible cryptocurrency tokens can freely substitute for one another, while non-fungible tokens have unique attributes. Bitcoin and ether are fungible. Cryptokitties and CryptoPunks are non-fungible.

Gas

Gas refers to the fee required to successfully conduct a transaction or execute a contract on Ethereum. Gas is paid in ether, and the gas cost is based on the computational complexity of the action and network demand. Gas prevents network abuse.

Gas limit

The gas limit sets the maximum amount of gas that can be used by a transaction on Ethereum. It prevents runaway code from hogging network resources. Gas limit is set by miners, while gas price is set by the sender as an incentive to prioritize transactions.

Gas price

Gas price refers to the fee in ether that a user pays per unit of gas to execute an operation on Ethereum. Senders can set a higher gas price to incentivize miners to prioritize confirmations during times of high network activity and backlogs.

General ledger

A general ledger is an accounting book or digital file that records all financial transactions of an organization. It provides a comprehensive record of all debit and credit transactions and their balances. Blockchains serve as shared, distributed ledgers.

Genesis block

The genesis block is the first block in a blockchain. For Bitcoin, it was mined by Satoshi Nakamoto on January 3, 2009. The genesis block is hardcoded into the software and launches the blockchain. It has a predefined hash as it cannot reference a previous block.

Git

Git is a free and open source distributed version control system used to manage source code. Git keeps track of code changes and allows coordinated work among multiple developers. Most cryptocurrency and blockchain projects use Git via platforms like GitHub.

Github

GitHub is a global software development platform built on top of Git. It provides developer tools and cloud services for version control, issue tracking, wikis, documentation and more. Many blockchain projects host open source code repositories on GitHub for public collaboration.

Gwei

Gwei is a denomination of the cryptocurrency Ether, equivalent to 10^-9 ether. It is commonly used to specify gas prices for Ethereum transactions measured in small fractions of ether. Gwei allows more precise tuning of gas pricing.

Halving

Halving refers to periodic reductions in the block reward miners receive on proof-of-work blockchains like Bitcoin and Litecoin. Halving limits new supply issuance and provides deflationary pressure. Bitcoin rewards halve every 210,000 blocks.

Here are 150 word explanations for each term:

Hard cap

A hard cap is the maximum amount that a cryptocurrency crowdsale will raise. The cap is often defined in number of tokens to be sold multiplied by the price per token. Hard caps help prevent overfunding and manage expectations. Hard caps also create scarcity which can help drive up demand. Once the hard cap amount is reached, no more contributors can participate in the crowdsale.

Hard fork

A hard fork is a permanent divergence in a blockchain’s protocol that requires all nodes to upgrade to the new rules. Otherwise, non-upgraded nodes will no longer be accepted by the upgraded network. Hard forks enable substantial protocol changes and additions like moving to a new hashing algorithm or reversing historical transactions. However, contentious hard forks can also split the community as occurred with Bitcoin and Bitcoin Cash.

Hardware wallet

A hardware wallet is a special secure, offline device designed to store cryptocurrency private keys and sign transactions. As private keys are kept offline, they are less vulnerable to hackers. Leading hardware wallets include Trezor and Ledger. Hardware wallets offer one of the safest methods for cryptocurrency storage and transactions.

Hash

A hash is the output of a hash function that takes an input and converts it into a fixed length alphanumeric string. Hashes represent large amounts of data as smaller numeric values. Blockchains like Bitcoin and Ethereum rely heavily on cryptographic hashing for proof-of-work mining and to link blocks together in an immutable chain.

Hash code

A hash code is the short alphanumeric string output produced by feeding data through a cryptographic hash function. Hash codes represent the original data in a condensed format. Blockchains use hash codes extensively for mining and to fingerprint blocks and transactions immutably. Hash codes should be random, uniform, and unpredictable.

Hash function

A hash function is a cryptographic process that takes arbitrary data as input and generates a fixed length alphanumeric hash value or hash code as output. It effectively scrambles the input into a random string. Hash functions enable creating digital fingerprints of data like blocks and transactions that can be independently verified.

Hash value

A hash value or hash code is the output produced by inputting data through a hash function. Hash values represent large amounts of data as smaller numeric fingerprints. In blockchains like Bitcoin, the hash value is the 64-character string that identifies a block and the transactions it contains. New blocks must reference the hash of the previous block.

Hashed

‘Hashed’ refers to data that has been processed through a hash function, thereby producing a hash value or hash code. The data is hashed to generate a unique, fixed-length fingerprint that cryptographically represents the original material. In blockchains, sensitive data like passwords are normally hashed for additional security.

Hashgraph

Hashgraph is an alternative distributed ledger technology secured through a gossip protocol and virtual voting consensus instead of mining. Transactions are hashed and shared through a peer-to-peer network, enabling fast, inexpensive, and fair consensus without proof-of-work. It can achieve higher throughput than conventional blockchains.

Hashing

Hashing refers to the act of processing data through a hash function to generate a hash value or hash code. This serves to fingerprint the original data in a shortened, scrambled format. Blockchains rely extensively on hashing for proof-of-work mining and to immutably link blocks together in a chain through referencing previous block hashes.

Hashrate

Hashrate refers to the total combined computational power used to mine blocks and process transactions on a proof-of-work blockchain network. Hashrate is measured in the number of hash calculations the network can perform per second. More hashrate means greater security and resistance to 51% attacks.

HFT (High-Frequency Trading)

High-frequency trading refers to algorithmic trading systems that rapidly buy and sell securities to capitalize on small price changes. HFT firms use speed to advantage against slower traders. Blockchain’s transparency could reduce some HFT advantages; however exchanges offer colocation services.

HODL

HODL is a slang term in the cryptocurrency community that means holding digital assets long-term rather than actively trading them. It originated from a misspelling of “hold” on a Bitcoin forum. HODLing indicates believing in the long-term potential of an asset regardless of volatility.

Hot storage

Hot storage refers to cryptocurrency wallets connected to the internet. While more convenient, hot wallets are more vulnerable to hacking attacks than offline cold storage. Holding large amounts of crypto in hot wallets is not recommended for optimal security. Examples of hot wallets are web, desktop, and mobile wallets.

Hot wallet

A hot wallet is a cryptocurrency wallet connected online enabling faster access to funds at the cost of increased hack risk. Hot wallets hold smaller amounts for active use while larger holdings reside in more secure cold storage. Leading hot wallets include web wallets like Blockchain and Coinbase.

Hyperledger

Hyperledger is an umbrella project by the Linux Foundation creating open source enterprise blockchain frameworks, platforms and tools. Hyperledger focuses on permissioned blockchains for corporate applications. Prominent projects include Hyperledger Fabric for modular private blockchains and Hyperledger Sawtooth.

Hyperledger Fabric

Hyperledger Fabric is an enterprise-grade permissioned distributed ledger framework for developing enterprise blockchain applications and solutions. It offers modular architecture, succinct contracts, and private channels between subset blockchains. Designed for scalability, confidentiality, flexibility and security.

IaaS (ICO as a Service)

ICO as a Service platforms offer turnkey solutions for startups to launch and execute initial coin offerings. They aim to make launching an ICO easy by providing templates, compliant frameworks, and modular services like know-your-customer (KYC) checks, smart contracts, legal advice, and marketing.

ICO (Initial Coin Offering)

An initial coin offering is a funding model where a startup sells cryptographic tokens in exchange for cryptoassets like bitcoin or ether. ICOs provide capital for project development similar to an initial public offering for stocks, while typically offering investors potential utility like platform access.

ICO Advisor

An ICO advisor is an expert who provides guidance to blockchain projects launching initial coin offerings. Advisors offer credibility to projects and token sales based on their industry reputation, connections, or expertise in areas like computer science, business development, marketing and law.

IEO (Initial Exchange Offering)

An Initial Exchange Offering is a token offering conducted on a cryptocurrency exchange platform instead of directly launching and administering the sale. IEOs provide startups incremental security benefits, access to exchange users, and simpler purchase experience for participants.

Immutability

Immutability means that once data is written to a blockchain, it cannot be altered retroactively without a hard fork. This permanence provides consistency and security benefits. Transactions and records cannot be tampered with. However, true immutability also has drawbacks like inability to recover lost private keys.

Incubator

A blockchain incubator assists startups in the early stages of developing blockchain-based products and services. Incubators may provide workspaces, networking, technical resources, mentorship, marketing, funding connections and other services to help prepare startups for launch and growth.

Initial coin offering (ICO)

An initial coin offering is a blockchain-based funding model where a startup sells cryptographic tokens in exchange for cryptoassets like bitcoin or ether. ICOs provide capital for project development similar to an initial public offering for stocks, while typically offering investors potential utility like platform access.

Initial Token Offering (ITO)

An Initial Token Offering is fundamentally similar to an ICO but involves specifically selling cryptographic utility tokens to investors rather than more generalized coins. Tokens sold in an ITO typically represent access rights to a network upon launch. ITOs face stricter regulations than altcoin ICOs.

IPO (Initial Public Offering)

An initial public offering refers to the process of offering shares in a private corporation to the public in a new stock issuance. It allows raising capital from public investors. IPOs are regulated by security laws while ICOs attempt to avoid such legislation around securities trading and issuance.

Know your customer (KYC)

Know your customer refers to a financial institution’s procedures for verifying the identity of customers. KYC confirms customers are who they claim to be and aim to prevent fraud and money laundering. Many crypto exchanges and ICOs incorporate KYC checks on users to enhance security and regulatory compliance.

Lambo

In crypto culture, “lambo” refers to buying a Lamborghini, implying someone has highly profited from cryptocurrency investing. The luxury sports car exemplifies the aspirational lifestyle and wealth that early Bitcoin and crypto investors were able to actualize from exponential price appreciation.

Ledger

A ledger is a financial account book that records transactions and balances. Since blockchains act as distributed digital ledgers, the terms ledger and blockchain are sometimes used interchangeably. However, blockchain technology utilizes specialized data structures and cryptography compared to basic accounting ledgers.

Ledger Nano

The Ledger Nano is a popular hardware wallet for securely storing the private keys to cryptocurrency assets offline. The credit card sized device offers robust physical data protections against hacking and theft. Private keys stored on the device are accessed safely when making transactions.

Lightning Network

The Lightning Network (LN) is a Layer 2 solution that uses payment channels and smart contracts to facilitate fast, inexpensive blockchain transactions off-chain with minimal fees and cryptographic proofs of enforcement. Prominent for Bitcoin, LN aims to support large scale applications.

Lightweight Node

A lightweight node is cryptocurrency wallet that does not download and validate the full blockchain ledger. Light nodes conserve local storage space but rely on other nodes for transaction verification. The tradeoffs make them suitable for low power and low trust environments like mobile phones.

Litecoin

Litecoin is a peer-to-peer digital currency launched in 2011 as a faster alternative to Bitcoin. Litecoin pioneered the use of scrypt mining proof-of-work and incorporated changes such as faster block times. LTC continues to be a leading cryptocurrency accepted by merchants globally.

Majority attack

A majority attack refers to a bad actor controlling 51% or more of the computing power on a proof-of-work blockchain. This dominance enables manipulating transactions, reversing payments, double spending funds, and monopolizing mining rewards, severely undermining the system.

Maker fee

A maker fee is the trading fee paid by makers who place orders that provide liquidity on a cryptocurrency exchange order book. Maker fees are paid when the order is filled by a taker. Exchanges offer discounted maker fees to incentives liquidity provision which enables trading.

Market capitalization (market cap.)

Market capitalization refers to the total value of all the cryptocurrency units that have been minted and are circulating in the public market. Market cap is calculated by multiplying the current market price by total supply. High market caps indicate more valuable networks.

Master Node

A masternode is a server on a cryptocurrency network that has satisfied specific requirements set by the network regarding factors such as server specifications, staking collateral, and up-time. Masternodes perform advanced network functions in return for compensation.

Math-based currency

A math-based currency refers to a digital asset whose issuance and transaction validation ultimately relies on cryptographic proofs and network consensus rules rather than centralized third parties like banks and governments. Math-based trustlessness is a core feature of Bitcoin.

Maximum supply

The maximum supply is the total number of cryptocurrency units that will ever exist in its entire lifetime. Maximum supplies vary across cryptocurrencies but are set upon launch. Once maximum supply is reached, no new cryptocurrency units will be minted.

Here are 150 word explanations for each term:

Meta Mask

MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access decentralized applications (dApps) in their browser without running a full Ethereum node. MetaMask includes a browser extension and mobile app that manages private keys andblockchain interactions.

MEW (My Ether Wallet)

MyEtherWallet (MEW) is a free, open source interface for interacting with the Ethereum blockchain. It allows users to manage Ethereum wallets and ERC-20 tokens without running a full node. MEW offers a web wallet and offline paper wallet generation. Users retain control of private keys.

Miner

A cryptocurrency miner uses special software to add transaction records to a blockchain’s public ledger and solve complex math puzzles. Miners provide the computing power to validate and process transactions on proof-of-work blockchains. They are rewarded with new coin issuance along with transaction fees.

Minimum viable product (MVP)

A minimum viable product is a development approach to release a basic version of a product with sufficient features to satisfy early users and gain feedback. Startups use MVPs to validate products before full development. They provide crucial early stage feedback and traction.

Mining

Cryptocurrency mining refers to using computing hardware to process transactions, secure a blockchain network, and add new blocks to the blockchain in proof-of-work models. Miners provide processing power in exchange for newly minted cryptocurrency as rewards plus transaction fees.

Mining rig

A mining rig refers to a computer system with specialized hardware designed specifically to mine cryptocurrencies. Mining rigs house multiple powerful graphics cards to maximize hashing computational power in order to maximize profits and mining rewards from proof-of-work blockchains.

Mobile payment

Mobile payment refers to paying for goods or transferring funds using a mobile phone instead of cash, credit, or checks. Cryptocurrency mobile wallets enable direct peer-to-peer crypto payments from phone to phone anywhere with internet access. No bank account is required.

Mobile wallet

A mobile wallet is a cryptocurrency wallet app designed for smartphones and other mobile devices. They are more convenient than desktop or web wallets, allowing on-the-go access and payments using crypto. However, they are also more vulnerable to loss or theft of the mobile device.

Money laundering

Money laundering refers to disguising the origins of illegally obtained money by hiding transactions or making funds appear legitimate. Cryptocurrencies have been used to launder money, but blockchain analysis makes this more traceable than cash and exposes illicit patterns.

Mooning

In cryptocurrency culture, mooning means a dramatic, meteoric increase in the price and market capitalization of a coin. HODLers hope for their holdings to go “to the moon.” A moon can multiply investment value many times over in a short period due to the volatility.

Multichain

Multichain refers to interconnecting different blockchains together through protocols enabling inter-blockchain communication and token exchange. Multichain architecture aims to allow different ledgers to coexist and share information without compromising autonomy and security.

Multisig (multisignature)

Multisignature or multisig refers to requiring more than one private key to authorize a cryptocurrency transaction. It divides up responsibility for possession of private keys as a security measure. All participants must endorse a transaction before funds can be transferred.

MVP

MVP stands for minimum viable product, which is a development approach focused on releasing a basic version of a product with sufficient features to gain user feedback for iterative improvement. MVPs enable startups to launch and validate products quicker than exhaustive upfront development.

Mwallet

A mobile wallet, or mwallet, stores private keys and allows transacting cryptocurrencies and tokens through a mobile device. Mwallets enable payments on-the-go using a phone’s internet connection. However, they are less secure than hardware wallets and can be lost or stolen along with the phone.

NFT (Non-Fungible Token)

Non-fungible tokens or NFTs are unique cryptographic assets with identification data recorded on blockchains. Unlike fungible tokens, NFTs cannot be directly replaced by another identical token. They digitally represent unique tangible or intangible items like art, collectibles, avatars, or real estate.

Node

A node is software on a computer that connects to a blockchain network. It validates transactions, maintains a copy of the ledger, and participates in consensus mechanisms like mining or staking. Nodes allow users to send transactions and submit new data to blockchains while also providing decentralized infrastructure.

Nonce

A nonce is an arbitrary number used as an input to a cryptographic hash function. Nonces ensure that hashes are random and unpredictable, even when input data stays the same. Blockchains use nonces in proof-of-work mining to vary block hashes. Accounts have a nonce to prevent replay attacks.

Non-fungible

Non-fungible refers to items that cannot be mutually exchanged due to unique properties. Non-fungible tokens or NFTs have distinct identifying data that prevents direct replacement by another identical token. In contrast, fungible assets can substitutes for one another, like Bitcoin tokens or dollars.

Off-chain

Off-chain refers to blockchain transaction processing and data storage that occurs external to the main blockchain. Off-chain processing such as batching can increase transaction throughput. Payment channels are an example of off-chain transactions that minimize main chain actions.

On-chain

On-chain refers to activities occurring directly on a blockchain such as transactions, state changes, code execution, and data storage. On-chain activities are slower and more resource intensive than off-chain but provide maximal transparency, trust, and decentralization benefits of blockchains.

Onboarding (client onboarding)

Onboarding refers to the process of getting new users set up on cryptocurrency exchanges, wallets, dApps, protocols, platforms, and other blockchain solutions. Good onboarding provides the necessary educational foundation and practical tools to start actively using the ecosystem.

Online Wallet

An online wallet, or web wallet, is a cryptocurrency wallet accessed through web browsers or mobile apps. They are convenient and easily accessible but also more vulnerable to hacking compared to offline hardware wallets. Online wallets are recommended for smaller amounts due to security risks.

Open API

An open API (application programming interface) allows third parties to access and integrate with an application or platform. Open blockchain APIs enable developers to build applications that interact with the blockchain network and expand its functionality and use cases.

Open source

Open source software has source code freely available for public use, modification, and peer review. The principle aligns with permissionless blockchains’ ethos. Bitcoin and most crypto projects are open source fostering transparency and collaborative development.

P2P (Peer-to-Peer)

Peer-to-peer refers to systems where users interact directly rather than through intermediaries. In P2P networks, participants connect with each other instead of centralized servers. Blockchain architecture is peer-to-peer, enabling direct financial transactions without banks or third parties.

Paper wallet

A paper wallet is a hardcopy containing essential information to access cryptocurrency funds, usually public and private key pairs. They keep keys offline and printed for security against digital theft. Paper wallets can be used for long-term storage but are not practical for frequent transactions.

Parachain (parallelizable chain)

Parachains are external customizable blockchains tethered to the security model of a main “relay chain” in a multichain system. They enable scalable transactions between chains. The Polkadot and Cosmos networks feature parachain architectures.

Payment gateway

A payment gateway is a service for processing online digital payments, like credit card purchases. Payment gateways could integrate to facilitate crypto commerce like accepting Bitcoin on e-commerce websites. Exchanges essentially act as crypto payment gateways.

PayTech

PayTech refers broadly to companies applying technology innovations to payment processing and financial services. Blockchain-based payment innovations for faster, global, lower cost transfers qualifies as FinTech and PayTech applicable to banking, remittances, and money transfers.

PIN

A PIN or personal identification number is a numeric password used to authenticate a user to a device or account. Cryptocurrency hardware wallets often require an access PIN as an additional security layer for use. Selecting a PIN not used elsewhere enhances security.

Plasma

Plasma is a framework for incentivized and enforced execution of smart contracts scalable to a significant amount of state updates per second (potentially billions) enabling transaction throughput similar to payment processors like Visa.

Platform

A blockchain platform refers to the combination of core blockchain technology and additional features designed to enable specific functionality for certain applications. Ethereum provides a programmable smart contract platform. Interoperability platforms connect different blockchains.

POC (Proof of Concept)

A proof of concept demonstrates the feasibility and potential of a project, idea, technology, or product in a basic experimental form. Many startups create POCs to validate the functionality and business model prior to full product development. POCs help secure funding.

POP (Proof of Principle)

A proof of principle demonstrates the essential technical possibility or approach of a concept, project, or technology but not all required features. POPs validate technical viability and core mechanics before full development. Smart contract and protocol POPs are common in crypto.

PoS (Proof of Stake)

Proof-of-Stake is a blockchain consensus mechanism for validating transactions based on staked tokens instead of mining power. Participants stake crypto to become validators. PoS aims for similar decentralization but greater efficiency and scalability compared to PoW blockchains.

PoW (Proof of Work)

Proof-of-Work refers to computational mining and consensus models where miners compete to add new blocks to a blockchain by solving mathematical puzzles. PoW relies on mining compute power rather than staked capital. The Bitcoin blockchain uses a PoW system.

Pre-mined

Pre-mined refers to cryptocurrencies where a portion of the total supply is generated and allocated before public mining starts. Pre-mines may unfairly benefit founders and early participants. However, some pre-mining may be legitimate to properly launch and bootstrap networks.

Pre-sale

A token pre-sale is an exclusive early stage offering that occurs before the main crowdsale where project insiders, major investors and early community supporters can contribute at discounted token prices before wider public participation.

Private key

A private key is a long cryptographic code that allows an individual to access cryptocurrency they own. Wallets contain private keys that grant control over funds. Keeping private keys secret is extremely important, as loss or theft enables irrevocable loss of crypto assets.

Private sale

A private sale is an invitation-only fundraising event for accredited or select investors before a cryptocurrency project conducts a public crowdsale. Private sales enable raising funds from major investors often at discounted token prices in exchange for their expertise, connections and reputation.

Proof of address

Proof of address refers to providing documentation to prove residence or locality. Cryptocurrency exchanges and services may require scanned utility bills, bank statements, or other proof of address as part of identity verification and KYC/AML compliance efforts.

Here are 150 word explanations for each of the terms:

Proof of burn

Proof of burn refers to permanently destroying cryptocurrency coins by sending them to a verifiably unspendable address to demonstrate proof of sacrifice. Proof of burn is an alternative consensus mechanism to proof of work and proof of stake that allows minting new coins in proportion to the number of coins burned.

Proof of identity

Proof of identity refers to providing credentials like photo IDs, addresses, social security numbers, etc. to satisfy KYC (know your customer), AML (anti-money laundering) or identity verification requirements. Exchanges require proof of identity to comply with regulations and mitigate fraud risks.

Proof-of-keys

Proof-of-keys is the practice of individuals proving ownership of their cryptocurrency assets by signing a message with their private keys. It spreads awareness of “not your keys, not your coins” as assets on exchanges are still controlled by the exchange, not the trader.

Protocol

A blockchain protocol refers to the core design specifications, rules, and processes that govern a blockchain network’s operation. Protocols include consensus mechanisms (eg. proof-of-work, proof-of-stake), formatting, cryptographic primitives, governance, etc.

PSD2 (Payment Services Directive 2)

The PSD2 is an EU directive to promote innovation and security of retail payments and transaction transparency. By mandating banks’ account access APIs, PSD2 could enable new blockchain FinTech entrants to compete using distributed ledger technologies.

PSP (Payment Service Provider)

A payment service provider offers services like merchant accounts, payment gateways, card issuance, fraud detection, and more to assist merchants in accepting digital payments. PSPs could readily integrate blockchain transactions like Bitcoin to streamline crypto commerce.

Public address

A public address or public key is a cryptographic code that identifies where a cryptocurrency payment is being sent on a public blockchain network. Public addresses are openly shared to receive payments but do not reveal private keys which prove ownership.

Public key

A public key is a cryptographic code that other users can utilize to verify signature validity without providing access to private keys. The private key can only be determined by the owner who generated the key pair. Public keys enable restricted access digital communication.

Pump and dump (P&D)

A pump and dump scheme tries to artificially inflate the price of an asset temporarily through false, misleading, or exaggerated claims in order to sell at the top and profit before the inevitable crash. Pump and dump tactics are illegal in regulated markets.

Pumping

In crypto markets, pumping refers to coordinated efforts to aggressively buy or promote a cryptocurrency or token to increase its market demand, trading volume and price. Pumps often rely on spreading misinformation and are similar to boiler room schemes.

Race attack

A race attack exploits the delay between new blocks propagating through a blockchain network. Transactions still unconfirmed can be illegitimately replaced with conflicting ones that get earlier confirmations. Miner collusion enables race attacks to favour certain transactions.

Raiden Network

The Raiden Network is an off-chain scaling solution for fast, inexpensive, and scalable ERC20 token transfers for Ethereum. It uses payment channels and payment channel networks managed by a network of automated smart contracts compliant with Ethereum.

Rating

Ratings are metrics of projects’ viability and credibility based on analytical assessments of factors like teams, artificial intelligence evaluation of white papers, achievable milestones, community feedback, etc. Ratings enable quantitative comparison of crypto investments.

Reddit

Reddit is a network of online communities where users submit posts, links, and multimedia enabling voting-based social news aggregation and discussion. Many blockchain projects have specific subreddits for community engagement, announcements, assistance, meme creation and governance discussions.

RegTech

RegTech refers to technology innovations designed to improve regulatory monitoring, reporting, and compliance. Blockchain-powered solutions like directly accessible ledger records offer new RegTech capabilities for auditing, data security, KYC, AML, regulatory reporting and more.

Relay chain

A relay chain coordinates consensus and communication between parachains and the wider network in a multichain blockchain system. Relay chains enable pooled security between chains while allowing customized transaction processing and data parameters on individual parachains.

Restricted countries

Restricted countries refers to jurisdictions where specific blockchain and cryptocurrency activities may be partially or completely prohibited or face limitations. Exchanges may block access from restricted countries with sanctions, embargo, or comprehensive crypto bans.

ROI (Return on Investment)

Return on investment measures the gain or loss made versus the cost of an investment. Cryptocurrencies can enable extremely high ROIs from exponential price gains but also total loss. Calculated by (Current Value – Cost) / Cost, positive ROIs indicate profits. Maximizing ROIs drives investors.

SAFT (Simple Agreement for Future Tokens)

A SAFT is a legal contract offered to accredited investors which promises delivery of tokens following mainnet launch. SAFTs enable funding startups by selling tokens before they hold appreciable value or functional utility beyond speculative trading.

Sandbox

In regulations, a sandbox allows limited testing of innovations not meeting normal standards. Crypto sandboxes exempt startups or activities from certain legal requirements to foster innovation. sandboxes allow regulators to monitor crypto markets without fully halting development.

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous creator of Bitcoin and author of its whitepaper. Nakamoto introduced the cryptocurrency in 2009 and was involved for several years before disappearing from public involvement. Many speculate about their identity and multiple people have been suspected.

Scam (fraud)

In cryptocurrencies, scams refer to intentional deception for financial gain often through misleading others. Common crypto scams include fake ICOs, pump and dumps, Ponzi schemes, phishing attacks, fraudulent wallets, rigged contests, and promising unrealistic guaranteed returns.

Secret key

The secret key in public key cryptography is the private key only known to its holder. It can generate the related public key and validate signatures made by it but cannot be reverse calculated from public data. Secret keys prove ownership and control over digital assets.

Security token

A security token represents an investment contract into an underlying investment asset or enterprise. Security tokens may promise equity, dividends, profit share, voting rights, or other benefits. As investment contracts, security tokens are tightly regulated unlike cryptocurrencies.

Segregated Witness (Segwit)

Segregated Witness or SegWit is a protocol upgrade proposal that separated signature data from transactions to increase Bitcoin block capacity. Segwit optimizes space usage through a transaction malleability fix alongside enabling Layer 2 networks like Lightning.

Sell wall

A sell wall refers to a disproportionately large limit sell order placed on cryptocurrency exchanges far above or below current prices. Sell walls indicate resistance levels for rising prices. They can sap buying demand but can also be removed as a price manipulation tactic.

Shard

Sharding is a database partitioning technique for horizontal scaling of distributed ledgers. Shards partition states and transaction verifications to spread workload across multiple groups of nodes to enhance throughput beyond single chain limits.

Sharding

Sharding is a database partitioning technique for horizontal scaling of distributed ledgers. Shards partition states and transaction verifications to spread workload across multiple groups of nodes to enhance throughput beyond single chain limits.

Shilling (pumping)

Shilling means aggressively promoting or advertising a cryptocurrency or blockchain project to generate hype and drive up prices without disclosing potential incentives or ownership. Shilling tries to alter perceptions and attract investment dollars.

Shitcoin

Shitcoin is a slang term for low value, useless, and often scammy altcoins with no unique value proposition. Shitcoins lack technological innovation and represent attempts to capitalize on speculative trading and hype to enrich founders.

Side chains

Side chains are companion blockchains interoperable with a parent blockchain through two-way transfer mechanisms. They enable moving tokens and data between chains with different characteristics and purposes. Side chains expand functionality and scale while benefiting from main chain security.

Signature

A cryptographic signature is a mathematical scheme proving identity and affirming transactions digitally. Signatures bind signers to transactions they originated using their private keys without revealing them. Valid signatures cannot be forged without secret private keys.

Smart contract

Smart contracts are programmatic scripts stored and executed on blockchains to execute conditional business logic and enforce contractual terms directly in code. They enable trusted, transparent agreements and automation through software without centralized enforcement.

Soft cap

The soft cap is the minimum amount that a cryptocurrency crowdsale aims to raise. If the soft cap is not reached, the crowdsale may be cancelled and funds returned. Soft caps establish minimum goals and help gauge initial interest level for offerings.

Soft fork

A soft fork is a temporary divergence in a blockchain’s protocol that is backwards compatible. Non-upgraded nodes still validate new blocks from soft forks adhering to stricter older rules. Soft forks expand possibilities without community fragmentation.

Software wallet

A software wallet stores private keys or signs transactions on internet-connected devices like computers, mobile phones, or tablets. Software wallets are convenient and easily accessible, but more vulnerable to hacking, malware, and theft than hardware wallets.

Solidity

Solidity is the primary object-oriented programming language used for writing smart contracts deployed to the Ethereum Virtual Machine. Designed for simplicity and similarity to JavaScript, Solidity is statically typed, supports inheritance, libraries, and complex user-defined types.

Spoofing

Spoofing means disguising communication to appear as someone else. Blockchain spoofing tricks users into actions like false phishing links by mimicking trusted entities. Effective spoofing can enable serious consequences like stolen keys. Authentication safeguards help prevent spoofing.

Stable coin

Stablecoins are cryptocurrencies designed to minimize price volatility and maintain a consistent value, typically through fiat currency or exchange-traded commodity collateralization or algorithms managing supply and demand. Stablecoins enhance utility for payments and preserving account values.

Staking

Staking is the process of holding funds in a cryptocurrency wallet or staking pool to contribute to network security and validation in proof-of-stake blockchain systems. In exchange for locking up stake, participants earn staking rewards on top of holding the base cryptocurrency.

Startup

A blockchain startup is an early stage business launching innovative blockchain software products, services, protocols, platforms, applications, or native cryptocurrencies and tokens. Startups drive most innovation given the nascent stage of blockchain technology with many unexplored use cases.

State channels

State channels move blockchain transactions and contract executions off-chain to minimize actions on the main chain. Only final settlement results are committed to the chain. Channels enhance scalability for frequent interactions by minimizing congestion, latency, and fees.

STO (Security Token Offering)

STO stands for Security Token Offering, which is a regulated offer and sale of security crypto tokens. STOs adhere to securities regulations for investor protections like mandatory disclosures, verification, and trade restrictions. STOs can offer advantages of blockchain technologies for traditional securities.

Szabo

A szabo is a unit denomination equal to 10^12 wei or 0.00000001 bitcoin named after Nick Szabo, a computer scientist known for research on digital contracts and currency prior to Bitcoin’s release. Szabo is among the potential candidates speculated to be Satoshi Nakamoto.

Taker fee

A taker fee is a trading fee applied when an order is matched quickly with an existing order in the order book on an exchange. Takers “take” liquidity, so taker fees are usually higher than maker fees that provide liquidity. High taker fees can deter speculation.

Tangle

The tangle is a directed acyclic graph data structure used by distributed ledgers like IOTA to store transactions. Tangles aim to enable high scalability with fast, feeless consensus by requiring two previous transactions to be referenced and validated for each new transaction.

Tap

Tap refers to the process of wrapping and converting mainnet cryptocurrency coins like Bitcoin and Ethereum to create tokens on other interoperable blockchains like Binance Chain while retaining convertibility between equivalents. Tap enables cross-chain interoperability.

Telegram

Telegram is a popular encrypted messaging app used widely by blockchain communities for official project announcements, discussion, networking, and assistance. Its clean interface, security, and channels suit crypto conversation. Telegram also enables token pre-sales.

TFA (Two-Factor Authentication)

Two-factor authentication adds a secondary layer of user authentication requiring not just a password but also identity verification through a mobile app code, biometric scan, hardware token, SMS code, or other method. TFA enhances security against account takeovers and identity theft.

This is it, gentlemen

“This is it, gentlemen” was the message Satoshi Nakamoto sent as the title of the original Bitcoin white paper email on October 31, 2008 to the Cryptography Mailing List announcing Bitcoin’s release. This quote is widely commemorated among crypto enthusiasts.

Timestamp

A timestamp records the date and time an event occurred. Blockchain timestamps document when blocks were added and transactions occurred with granular precision. Timestamps enable correlating off-chain events to on-chain records, which is useful for verifying timing and proof of existence.

Timestamping

Timestamping in blockchains refers to widely witnessed recording of the exact date and time a transaction occurred on the ledger. Timestamps enable proving with cryptographic certainty that specific data existed at an earlier point in time.

Token

Tokens are programmable digital assets built on an existing blockchain like Bitcoin or Ethereum. Tokens implement functionality beyond base crypto assets and have specialized purposes like governance, utility, rewards, work proofs or collective ownership.

Token basket (token set)

A token basket or token set combines multiple tokens or cryptocurrencies together as a single tradable asset enabling diversified exposure rather than relying on just one asset. Index tokens can be market cap weighted or equal weighted token baskets benchmarked to an index.

Token contract

The token contract is the smart contract governing the programming logic for how a token and its transactions behave in accordance with predefined specifications like total supply and balances. Token contracts allow issuing tokens atop existing major blockchain platforms.

Token contract address

The token contract address is a unique cryptographic identifier where the token contract is deployed and recorded on a blockchain. The contract address allows verifying and interacting with the token and associated smart contract.

Token gravity

Token gravity refers to analyzing trajectories of developer activity and network adoption to predict rising crypto assets. Similar to social gravity models, token gravity posits blockchain technologies with best fundamentals will attract crypto mass and value.

Token sales

Token sales are fundraising events where crypto-assets called tokens are sold to raise capital, often for project funding and network launches. Major token sale types include initial coin offerings (ICOs), initial exchange offerings (IEOs) and security token offerings (STOs).

Token set

A token set or token basket combines multiple tokens or cryptocurrencies together as a single tradable asset enabling diversified exposure rather than relying on just one asset. Index tokens can be market cap weighted or equal weighted token sets benchmarked to an index.

Tokenization

Tokenization is the process of converting rights to assets like real estate, art, company shares or commodities into digital tokens tracked on blockchains and tradable. Tokenization enables fractional ownership and automates asset administration through blockchain.

Tokenomics

Tokenomics involves analyzing cryptoassets’ token models, token distribution, network incentives and other design attributes that may determine value. Robust tokenomics align network participants to grow the ecosystem and derived value for stakeholders. Weak tokenomics risk failure.

Total supply

Total supply refers to the maximum possible quantity that can ever exist of a particular cryptocurrency or token. The total supply must be defined upon launch and is typically distributed through an initial generation, mining, and minting.

TPS (Transactions Per Second)

Transactions per second or TPS measures throughput or the number of transactions a blockchain network can process each second. Higher TPS indicates greater capacity, speed, and scalability to support use as a widespread payment system.

Trading bot

Trading bots are software programs that use automated algorithmic trading to buy and sell assets in financial markets. Crypto trading bots analyze market actions and data to execute trades aiming to generate consistent returns on set strategies.

Transaction fee

The transaction fee is cryptocurrency paid to process and validate transactions. Fees incentivize miners or validators to confirm transactions into new blocks. Higher fees may expedite confirmations during times of heavy network use resulting in backlogs.

Trezor

Trezor is a popular hardware wallet providing offline cold storage and transaction signing for Bitcoin, Ethereum, ERC20 tokens and more. Trezor features robust encryption, 2 factor authentication, malware protection and multiple backup options for securely managing private keys.

Turing complete

Turing complete refers to programming languages with computational universality enabling implementation of any algorithmic logic expressible by a Turing machine. Ethereum executes Turing complete smart contract code enabling flexible conditional transaction logic.

Unbanked

The unbanked are individuals without access to conventional financial services typically from lack of assets, unstable income, lack of documentation, geographic isolation or distrust. Blockchain financial services can support greater access given fewer barriers to participate.

Underbanked

The underbanked have nominal access to mainstream financial services but limited options, convenience and features of traditional banking and payments. Cryptocurrencies provide alternative solutions accessible anytime from mobile phones that can better serve the underbanked.

Utility token

Utility tokens provide access rights to a blockchain network, often prior to mainnet launch. Utility includes accessing services, paying fees, early contributor rewards, or enabling a participatory economy. Utility tokens are more loosely regulated than security tokens representing shares.

Vesting

Vesting restricts sale of tokens allocated to project founders, developers, advisors etc to incentivize long-term commitment. Vesting gradually unlocks token supply over time through milestones and schedules. Vesting indicates team skin in the game for success.

Virtual currency

Virtual currency is any non-physical accounting unit used as a medium of exchange, unit of account or store of value. Cryptocurrency operates independently of central banks as opposed to centralized electronic money and commercial bank-issued digital money.

Vitalik Buterin

Vitalik Buterin is a co-founder of Ethereum and outspoken leader in the blockchain industry. He authored the Ethereum whitepaper in 2013 and has overseen technical research and evangelism efforts since then as a Bitcoin Magazine co-founder and through the Ethereum Foundation.

Wallet

A cryptocurrency wallet stores private and public keys enabling users to send, receive, and manage their digital currency holdings. Wallets come in many forms like desktop software, hardware devices, paper printouts, mobile apps, and web browsers.

Wash Trade

A wash trade is a form of market manipulation in which a trader simultaneously buys and sells an asset to create misleading, artificial activity in the market. Wash trades distort trading volumes to suggest greater demand.

Weak Hands

Weak hands refers to investors prone to panic selling at the first sign of price declines or volatility. Weak handed investors lack conviction, patience, and emotional control. Strong handed investors with long-term conviction are less likely to sell in fear.

Wei

The wei is the smallest denomination of ether, equivalent to 10^-18 ether. Wei allows extremely fine divisions of ether for paying nominal transaction fees on the Ethereum network. The denomination is named after Wei Dai, a cryptocurrency researcher.

Whale

A whale refers to cryptocurrency investors or traders with exceptionally large holdings and transaction volumes, capable of triggering big price movements. Whale actions often represent institutional trading. Retail traders warn each other when whales appear to be accumulating or dumping.

White Paper

A white paper is an authoritative report outlining details and vision on topics like technology, finance, or government policy. In crypto, white papers explain characteristics and technology behind blockchain projects to inform and attract investors, users, developers etc.

Whitelisting

Whitelisting is the process of explicitly allowing participation in a token sale or platform that requires approval due to regulatory requirements or network integrity concerns. Participants first submit KYC details to be vetted before inclusion on the whitelist for participation eligibility.