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2018 Crypto Winter
The 2018 Crypto Winter was a major market crash that led to prolonged bearish sentiment in the blockchain and crypto space.
A
Aave
Aave is a decentralized lending and borrowing protocol built on Ethereum and other blockchains.
Aave DAO
Aave DAO is the decentralized governance body that controls upgrades and decisions for the Aave protocol.
ABI (Application Binary Interface)
The ABI defines how smart contracts interact externally by specifying available functions and their parameters.
Account Abstraction
A design pattern in Ethereum that separates account logic from the protocol, enabling customizable user accounts and flexible transaction validation.
Account Model
The account model is a blockchain data structure that tracks balances by accounts rather than unspent outputs.
Account Model
A ledger model used by blockchains like Ethereum where each account holds balances and smart contract state.
Adaptive State Sharding
A dynamic sharding technique used in blockchains to optimize scalability by adjusting shard structures based on demand.
Address (Blockchain Address)
A blockchain address is a unique identifier that allows users to send and receive digital assets on a blockchain.
Advanced Encryption Standard (AES)
A widely used symmetric encryption algorithm adopted by blockchain platforms for secure data protection.
Aggregator (Data Aggregator)
A system or protocol that collects and consolidates data from multiple sources, often used in oracles and DeFi tools.
AI and Blockchain Integration
AI and blockchain integration combines automation with decentralization to create secure, intelligent, and trustless systems.
Airdrop
An airdrop is the free distribution of cryptocurrency tokens to wallet addresses, often used for marketing, community growth, or decentralization.
Airdrop
A method of distributing cryptocurrency tokens to users, often used for promotional purposes or as part of a decentralized network's launch strategy.
Airdrop Distribution
Airdrop distribution is the process of sending free tokens to users' wallets to promote a crypto project or reward participation.
Alchemy (Blockchain developer platform)
Alchemy is a Web3 developer platform that provides APIs and infrastructure tools to build blockchain applications.
Algorithmic Governance
The use of encoded rules and algorithms to automate decision-making in blockchain protocols and DAOs.
Algorithmic Stablecoin (Seigniorage model)
Algorithmic stablecoins use smart contracts and supply algorithms to maintain a stable value without collateral.
AMM Pool
An AMM pool is a smart contract-based liquidity pool that facilitates decentralized trading without traditional order books.
Anchor Protocol
A once-popular DeFi savings protocol on Terra that offered high-yield interest on stablecoin deposits.
Anti-Fragility
A property of systems that improve in response to stress, volatility, or disorder, applied to resilient blockchain ecosystems.
API Endpoint (RPC Node)
A web address that allows users and applications to interact with blockchain data and execute remote procedure calls.
API3
A decentralized oracle protocol that enables first-party APIs to feed data directly to smart contracts.
AppChain
A blockchain optimized for a single decentralized application, enabling custom performance and governance features.
Application-Specific Blockchain
A custom-built blockchain designed to serve a single application or use case with tailored performance and governance.
Arbitrage Bot
An automated trading script that exploits price discrepancies across exchanges or blockchains to generate profit.
Arithmetic Circuit
A mathematical representation used to encode computations in zero-knowledge proofs and zk-SNARKs.
Asynchronous Messaging
A communication pattern where messages are sent without requiring an immediate response, common in cross-chain protocols.
Atomic Clock Synchronization
Atomic clock synchronization ensures precise timekeeping in blockchain networks, critical for consensus and transaction ordering.
Atomic Swap
A smart contract technology enabling the exchange of cryptocurrencies from different blockchains without intermediaries.
Atomic Swaps
Atomic swaps are smart contract-based exchanges that allow users to trade cryptocurrencies across different blockchains without the need for centralized intermediaries.
Attestation
A signed confirmation verifying a claim or event, used in identity, staking, and cross-chain communication.
Auction Mechanism
A process used in blockchains to allocate scarce resources like block space, validator slots, or token distribution.
Audit (Smart Contract Audit)
A thorough security review of blockchain smart contracts to identify vulnerabilities before deployment.
Auditability
The ability of a system to provide transparent and verifiable records for review, essential in blockchain governance and compliance.
Automated Governance
Smart contract-based systems that execute governance decisions programmatically without human intervention.
Automated Market Maker (AMM)
A decentralized exchange mechanism that uses mathematical formulas to price assets and facilitate trading without order books.
Autonomous Agent
A self-executing entity on the blockchain that acts independently based on pre-programmed logic and environmental inputs.
Availability Layer
A blockchain component responsible for ensuring that transaction data is accessible and verifiable by all nodes.
AVM (Arbitrum Virtual Machine)
A custom virtual machine developed for Arbitrum rollups to optimize smart contract execution.
B
Backrun
A type of MEV strategy where a bot places a transaction immediately after a known profitable one to capture residual gains.
Batching
A technique used in blockchain to group multiple transactions into a single operation, improving efficiency and reducing costs.
Beacon Chain (Ethereum 2.0 Consensus Chain)
The foundational PoS consensus layer of Ethereum 2.0, coordinating validators and block proposals across the network.
BEP-20
A token standard on Binance Smart Chain (BSC) similar to Ethereum’s ERC-20, defining rules for fungible tokens.
Beta
A phase in the development cycle of blockchain software or protocols where early users test new features before full release.
Bias Resistance
A property of cryptographic protocols ensuring randomness or outcomes can't be unfairly influenced or predicted.
Binance Smart Chain (BSC)
A high-performance blockchain developed by Binance offering EVM compatibility and fast, low-cost transactions.
Bit
The smallest unit of digital information, used in computing and cryptography to represent binary states.
Bitcoin (BTC)
The first and most widely used cryptocurrency, created by Satoshi Nakamoto to enable decentralized digital payments.
Bitcoin Cash (BCH)
A hard fork of Bitcoin designed to enable faster and cheaper transactions through larger block sizes.
Bitcoin Maximalism
A belief system that holds Bitcoin as the only legitimate cryptocurrency, rejecting altcoins and newer blockchains.
Block Compression
A technique used to reduce the size of blockchain blocks by eliminating redundant or unnecessary data.
Block Depth
The number of blocks added to the blockchain after a specific block, used to measure finality and security.
Block Explorer
A web-based tool that allows users to view and analyze blockchain data, including transactions, blocks, and addresses.
Block Halving (Halvening)
Block halving is a scheduled event in cryptocurrencies like Bitcoin where mining rewards are reduced by 50% to control coin issuance and inflation.
Block Headers
Metadata at the start of a blockchain block containing crucial information like hashes, timestamps, and Merkle roots.
Block Height
The number of blocks preceding a particular block in a blockchain, indicating its position in the chain.
Block Height
The numerical position of a block within a blockchain, used to track the chain’s length and transaction history.
Block Propagation
The process of distributing newly mined blocks across nodes in a blockchain network.
Block Propagation
The process of distributing newly mined or validated blocks to all nodes in a blockchain network.
Block Reward
A block reward is the cryptocurrency given to miners or validators for adding a new block to the blockchain in Proof of Work or Proof of Stake systems.
Block Reward
The compensation given to miners or validators for adding a new block to the blockchain.
Block Size
The maximum amount of data that a single block in a blockchain can contain.
Blockchain
Blockchain is a distributed and immutable ledger technology used to securely record transactions across decentralized networks.
Blockchain Explorer
A web-based interface that allows users to view and search real-time blockchain data such as transactions and blocks.
Blockchain Governance
The processes and rules that determine how changes are made to blockchain protocols and how decisions are enforced.
Blockchain Interoperability
The ability of different blockchain networks to communicate and exchange data or assets securely and seamlessly.
Blockchain Security
A multi-layered approach to ensuring the integrity, confidentiality, and availability of blockchain networks and data.
Blockchain Sharding
A scalability technique that splits a blockchain’s data and processing across multiple shards to improve performance.
Blockchain Synchronization
The process by which nodes download and validate blockchain data to stay updated with the latest network state.
Blockchain Transaction
A signed, verifiable action on a blockchain that alters the network state, such as sending tokens or calling a contract.
Blockchain Upgrade
A change or improvement to the rules or software of a blockchain network, often through forks or governance votes.
BlockDAG
A blockchain architecture where blocks form a Directed Acyclic Graph (DAG), allowing parallel validation and greater scalability.
Blocksize
The maximum amount of data that a block can contain, directly influencing transaction throughput and network performance.
Bonding Curve
A mathematical formula that defines token pricing based on supply, often used in DAOs, token sales, and DeFi markets.
Brain Wallet
A cryptocurrency wallet generated from a passphrase that is memorized by the user instead of being stored.
BRC-20
An experimental token standard for Bitcoin using Ordinals to inscribe fungible tokens onto satoshis.
Bridge (Blockchain Bridge)
A protocol that enables the transfer of assets and data between two different blockchain networks.
Bridge (Cross-Chain Bridge)
A protocol that enables the transfer of assets or data between different blockchain networks.
Bug Bounty
A program that rewards individuals for identifying and responsibly disclosing security vulnerabilities in blockchain systems.
Burn
The process of permanently removing tokens from circulation, reducing total supply and often increasing scarcity.
Buy the Dip
An investment strategy of purchasing assets after a price decline, aiming to profit from future recoveries.
Bytecode
The low-level machine-readable code that smart contracts are compiled into before being deployed on a blockchain.
Byzantine Fault Tolerance (BFT)
A property of distributed systems that ensures consensus can be reached even if some participants act maliciously or fail.
Byzantine Generals Problem
A game theory problem that illustrates the challenge of achieving consensus in distributed systems with unreliable participants.
C
CBDC (Central Bank Digital Currency) Policies
Regulatory and strategic frameworks that guide the design, issuance, and governance of central bank digital currencies.
Censorship Resistance
A blockchain property that ensures no entity can prevent valid transactions from being broadcast or included in blocks.
Chain ID
A unique identifier assigned to each blockchain network to prevent transaction replay across chains.
Chain-Based Consensus (Longest Chain Rule)
A consensus approach where the chain with the most accumulated work or stake is considered the valid blockchain.
Chainlink
A decentralized oracle network that connects smart contracts with real-world data and external APIs.
Checkpoint
A periodically created state summary in blockchains that optimizes synchronization and enhances finality.
Child Chains
Independent blockchains that run parallel to a mainchain, often secured or validated by it.
Circuit (ZK Circuit)
A computational structure used in zero-knowledge proofs to verify logic without revealing underlying data.
Claim (Airdrop/Proof Claim)
The action of redeeming tokens, credentials, or rewards based on proof of eligibility or prior activity.
Client (Blockchain Client)
Software that allows users or nodes to interact with a blockchain network, execute transactions, and validate data.
Cold Wallet
An offline cryptocurrency wallet used for secure long-term storage of private keys and digital assets.
Collateral
Assets pledged as security for borrowing or minting in DeFi protocols, used to guarantee loan repayment or stability.
Collateralization Ratio
A metric that measures the value of collateral relative to the debt it secures, used to assess loan safety in DeFi.
Commitment Scheme
A cryptographic protocol that allows one party to commit to a value while keeping it hidden, with the ability to reveal it later.
Commitment Scheme (Pedersen Commitment)
A cryptographic method allowing a value to be hidden yet fixed, enabling secure proofs and privacy-preserving protocols.
Composability
The capability of blockchain systems to combine independently developed components into complex, functional applications.
Composable Finance
A design principle where DeFi protocols can interact and build on each other, enabling modular financial applications.
Compression (On-Chain Data Compression)
A technique used to reduce the storage and bandwidth requirements of on-chain data, improving blockchain scalability.
Consensus
The process by which nodes in a blockchain network agree on the validity of transactions and the state of the ledger.
Consensus Layer
The component of blockchain architecture responsible for achieving agreement on the order and validity of blocks.
Consensus Mechanism
A consensus mechanism is a method used by distributed systems and blockchains to agree on the same data without a central authority.
Consensus Mechanism
A protocol used by blockchain networks to achieve agreement on the state of the ledger and validate transactions.
Consensus Upgrade
A network-wide update that changes how consensus is achieved on a blockchain, often involving a fork or protocol enhancement.
Consortium Blockchain
A semi-decentralized blockchain managed by a group of trusted organizations rather than a single entity or the public.
Consortium Network (Federated Blockchain)
A collaborative blockchain network governed by multiple organizations with shared control over validation and governance.
Contract (Smart Contract)
A self-executing program stored on the blockchain that automatically enforces rules and conditions.
Coordinated Sequencer
An entity in rollup-based blockchains that orders transactions and proposes batches to the Layer 1 chain.
Cross-Chain
The ability for different blockchain networks to communicate, transfer assets, and execute operations between each other.
Cross-Chain Bridge
A protocol that enables token and data transfers between different blockchain networks.
Cross-Chain Communication
The ability of different blockchain networks to exchange information and value securely and reliably.
Cross-Chain Communication Protocols
Technologies that enable secure data and value exchange across independent blockchains.
Cryptographic Hash Function
A one-way mathematical function that converts data into a fixed-length output, essential for blockchain integrity.
Cryptographic Proof
A mathematical method used to verify data or computation validity without revealing underlying information.
Cryptography
The science of encoding and decoding information to secure communication, fundamental to blockchain security.
Custodial Wallet
A cryptocurrency wallet where a third party holds and manages the user's private keys on their behalf.
Custodial Wallet
A cryptocurrency wallet where a third party controls the private keys and manages funds on behalf of the user.
Cybersecurity in Blockchain
The practices and protocols used to protect blockchain systems from digital threats, attacks, and vulnerabilities.
Cypherpunk
A movement advocating the use of cryptography to protect privacy and promote individual freedoms in the digital age.
D
DAG (Directed Acyclic Graph)
A data structure used in some blockchains as an alternative to linear chains to increase scalability and speed.
DAO (Decentralized Autonomous Organization)
A DAO (Decentralized Autonomous Organization) is a blockchain-based organization governed by smart contract rules instead of a central authority.
DAO (Decentralized Autonomous Organization)
A collectively owned and operated blockchain-based entity governed by smart contracts and token-holder voting.
DAO Treasury
A collective fund controlled by DAO governance used to finance operations, grants, and development.
DAOstack (DAO Framework)
A modular framework for creating and managing DAOs using holographic consensus and smart contract templates.
dApp (Decentralized Application)
An application built on a blockchain that operates without centralized control, often using smart contracts.
DApp Browser
A web or mobile interface that allows users to interact with decentralized applications using Web3 protocols.
DApp Frontend
The user interface component of a decentralized application that interacts with blockchain smart contracts.
Dark Forest (MEV)
A metaphor describing the hostile environment of blockchain mempools where bots exploit profitable transactions before they're confirmed.
Data Availability
The assurance that all necessary blockchain data is accessible for verifying blocks and maintaining network consensus.
Data Availability
The guarantee that all necessary blockchain data is accessible to verify transactions and network state.
Data Availability Layer
A specialized blockchain component that ensures transaction data is accessible for validation, crucial for modular blockchain scalability.
Data Availability Sampling (DAS)
A probabilistic method for verifying data availability without downloading the full dataset, used in scalable blockchain designs.
DCA (Dollar-Cost Averaging)
An investment strategy where equal amounts are invested at regular intervals, reducing timing risk in volatile markets.
Decentralization
Decentralization in blockchain refers to distributing power and control across a network, avoiding reliance on any single central authority.
Decentralization
A structural principle in blockchain where power and control are distributed across many participants instead of centralized entities.
Decentralized Exchange (DEX)
A peer-to-peer platform that enables cryptocurrency trading directly between users without intermediaries.
Decentralized Finance (DeFi)
A financial ecosystem built on blockchain that offers services like lending, trading, and yield generation without intermediaries.
Decentralized Governance
A decision-making process where power is distributed across a blockchain community, often via token-based voting.
Decentralized Identity (DID)
A user-controlled digital identity framework built on blockchain that enhances privacy and interoperability.
Decentralized Network
A peer-to-peer system where no single entity has full control, ensuring resilience, openness, and censorship resistance.
Decentralized Oracle
A data service that fetches and verifies external information for smart contracts using multiple independent sources.
Decentralized Social Network
A blockchain-based platform where users own their content, identities, and data, avoiding centralized control.
Decentralized Storage
A peer-to-peer method of storing digital data using blockchain or distributed networks instead of centralized servers.
DeFi (Decentralized Finance)
DeFi, or Decentralized Finance, refers to blockchain-based financial applications that operate without banks or intermediaries.
Delegated Proof of Stake (DPoS)
A consensus mechanism where stakeholders elect a small group of delegates to validate transactions and secure the network.
Delegated Proof of Stake (DPoS)
A consensus mechanism where token holders vote for a limited set of validators to produce blocks on their behalf.
Derivative Token
A synthetic asset on blockchain that represents the value of an underlying asset, used in trading and DeFi strategies.
DeSci (Decentralized Science)
A movement using blockchain to democratize scientific research, funding, publishing, and data sharing.
Deterministic Wallet
A crypto wallet that generates all private keys from a single seed phrase, simplifying backups and recovery.
Difficulty Adjustment
Difficulty adjustment is an automatic mechanism in Proof of Work blockchains that regulates mining difficulty to maintain consistent block times.
Digital Signature
A cryptographic method used to verify the authenticity and integrity of a message or transaction.
Direct Democracy DAO
A governance model where each token holder can vote directly on all proposals without delegation.
Distributed Ledger
A distributed ledger is a shared and synchronized digital database spread across multiple locations, enabling secure and tamper-proof transaction recording.
Distributed Ledger Technology (DLT)
A decentralized database system where data is replicated, shared, and synchronized across multiple nodes.
Dusting Attack
A privacy attack in which small amounts of cryptocurrency are sent to multiple wallets to analyze their transaction behavior.
Dusting Attack
A privacy-compromising tactic where attackers send tiny crypto amounts to wallets to track and deanonymize users.
dYdX
A decentralized derivatives exchange offering perpetual contracts, margin trading, and advanced order types.
Dynamic NFT (dNFT)
A type of NFT that can change its metadata based on real-world events or on-chain activity.
E
ECDSA (Elliptic Curve Digital Signature Algorithm)
A cryptographic algorithm used in blockchain to sign transactions and verify identity securely and efficiently.
Economic Finality
A state in which reversing a blockchain transaction becomes economically irrational or infeasible due to high costs.
Ed25519
A high-performance digital signature algorithm used in blockchain for secure, compact, and fast signatures.
EIP-1559
An Ethereum upgrade that introduced a base fee mechanism and ETH burning to improve transaction efficiency and predictability.
Elliptic Curve Cryptography (ECC)
A type of public-key cryptography based on the algebraic structure of elliptic curves over finite fields.
ENS (Ethereum Name Service)
A decentralized naming system that maps human-readable names to Ethereum addresses and other resources.
Epoch
A fixed time interval used in blockchain protocols for validator rotation, rewards, or consensus checkpoints.
ERC-1155
A multi-token Ethereum standard that allows the creation of both fungible and non-fungible tokens within a single smart contract.
ERC-20
A widely adopted Ethereum token standard defining rules for fungible tokens used across DeFi and dApps.
ERC-4626
A tokenized vault standard for Ethereum that defines a uniform interface for yield-bearing tokens and DeFi vaults.
ERC-721
A token standard on Ethereum for representing unique, non-fungible assets like NFTs.
Escrow (Blockchain Escrow)
A trustless mechanism for holding and releasing assets based on predefined conditions in a smart contract.
Ethereum Virtual Machine (EVM)
A computation engine that executes smart contracts and maintains the state of Ethereum's decentralized network.
EVM (Ethereum Virtual Machine)
The runtime environment for executing smart contracts on Ethereum and compatible blockchains.
EVM Equivalence
The property of Layer 2 networks or alternative chains to precisely replicate Ethereum's execution environment for seamless compatibility.
EVM-Compatible
Refers to blockchain networks that support and run Ethereum-based smart contracts using the Ethereum Virtual Machine.
Exit Fraud
A deceptive practice where a crypto platform or project disappears with user funds, typically after building trust.
F
Faucet (Crypto Faucet)
A service that distributes small amounts of cryptocurrency for free, typically for onboarding, testing, or promotional purposes.
Fee Market
A dynamic system where users compete to pay higher transaction fees for faster blockchain confirmations.
Fee Market
A dynamic system where users compete to pay higher transaction fees for faster blockchain confirmations.
Fiat On-Ramp
A service that allows users to purchase cryptocurrencies using traditional fiat currencies like USD or EUR.
Fiat On-Ramp
A service that allows users to purchase cryptocurrencies using traditional fiat currencies like USD or EUR.
Finality
The assurance that a blockchain transaction is permanently recorded and cannot be reversed or altered.
Finality
The assurance that a blockchain transaction is permanently confirmed and cannot be reversed or altered.
Finality
The assurance that a blockchain transaction is permanently confirmed and cannot be reversed or altered.
Fork (Blockchain Fork)
A blockchain fork is a split in a blockchain network that results in two separate versions of its protocol or transaction history.
Fork (Blockchain Fork)
A divergence in blockchain protocol or history, resulting in two or more competing versions of the ledger.
Fractional NFT
A method of dividing ownership of a single NFT into multiple fungible parts, enabling shared ownership and liquidity.
Frontrunning
An exploit where a party preempts a pending blockchain transaction to profit by manipulating transaction ordering.
Frontrunning (Blockchain)
A malicious strategy where attackers exploit transaction ordering to gain unfair financial advantage.
Frozen Asset (Blockchain Context)
A crypto asset that has been locked or restricted from transfer due to smart contract logic, regulation, or platform policy.
Fungible Token
A digital asset that is interchangeable with any other unit of the same type, commonly used for currencies or utilities.
G
Gas
The unit of computational cost used to execute operations and smart contracts on the Ethereum network.
Gas (Blockchain Gas Fee)
The unit of computational effort required to execute operations on a blockchain, especially Ethereum.
Gas (Transaction Fee)
Gas is the unit used to measure and pay for the computational cost of executing transactions or smart contracts on blockchain networks like Ethereum.
Gas Limit
The maximum amount of computational effort a user is willing to spend on a blockchain transaction.
Gas Price
The amount of cryptocurrency a user is willing to pay per unit of gas to execute operations on a blockchain.
Gas Token
A tokenized asset used to pay transaction fees on blockchain networks, often representing native tokens like ETH.
Gas War
A competitive bidding situation where users raise gas fees to gain transaction priority, often during NFT mints or token launches.
Genesis Block
The very first block in a blockchain, serving as the foundation from which all other blocks are linked.
Genesis Block
The very first block of a blockchain, from which all subsequent blocks derive their lineage and security.
Governance Token
A type of token that grants holders the right to vote on decisions affecting a blockchain protocol or DAO.
Governance Token
A cryptocurrency that gives holders voting rights in decentralized protocols, often used in DAOs and DeFi platforms.
GraphQL
A flexible query language used to retrieve data efficiently, commonly adopted in Web3 projects like The Graph.
Gwei
A denomination of Ether used to measure gas prices in the Ethereum network, where 1 Gwei equals 0.000000001 ETH.
Gwei
A denomination of Ethereum used to measure gas prices, equal to one billionth of one ETH.
H
Halving (Block Halving)
A programmed reduction in the block reward given to miners, typically occurring at fixed intervals in Proof of Work cryptocurrencies.
Hard Fork
A hard fork is a non-backward compatible change to a blockchain protocol that creates a permanent split into two separate networks or cryptocurrencies.
Hard Fork
A major blockchain upgrade or split that results in two incompatible versions of the chain, often leading to a new cryptocurrency.
Hard Fork
A major protocol change in a blockchain that creates an incompatible chain split, often resulting in a new cryptocurrency.
Hash
A fixed-size alphanumeric output derived from input data using cryptographic algorithms, foundational to blockchain integrity.
Hash Function
A cryptographic algorithm that maps input data to a fixed-length hash, ensuring data integrity and security.
Hash Function (Cryptographic Hash)
A mathematical algorithm that converts data into a fixed-size string, ensuring integrity and security in blockchain systems.
Hash Rate
A measure of computational power used in blockchain mining, indicating how many hash operations are performed per second.
HD Wallet (Hierarchical Deterministic Wallet)
A wallet system that generates all keys from a single seed phrase, simplifying backup and key management.
HFT (High-Frequency Trading)
An algorithmic trading strategy that executes numerous trades in milliseconds, increasingly used in crypto markets.
HODL
A crypto slang term originating from a typo, now representing a long-term investment strategy of holding assets through volatility.
Hot Wallet
A cryptocurrency wallet connected to the internet, allowing fast access but with increased exposure to hacking risks.
Hybrid Consensus
A blockchain consensus mechanism that combines features of multiple models like Proof of Work and Proof of Stake.
I
Immutability
Immutability means blockchain data can’t be changed or deleted once recorded, ensuring transparency and trust in decentralized systems.
Impermanent Loss
A temporary loss in value that occurs when providing liquidity to AMMs due to price divergence between assets.
Indexer
A node or service that processes and organizes blockchain data for fast and efficient querying, often used in Web3 infrastructure.
Inflationary Token
A cryptocurrency with an increasing supply over time, often used to incentivize participation or secure a network.
Initial Coin Offering (ICO)
A fundraising mechanism where projects sell new tokens to early investors, typically before listing on exchanges.
Initial DEX Offering (IDO)
A fundraising model where new tokens are launched directly on decentralized exchanges to reach users without intermediaries.
Instant Finality
A property of some blockchains where transactions are confirmed immediately and cannot be reversed once included in a block.
Interoperability
The ability of different blockchain networks to communicate, exchange data, and operate together seamlessly.
InterPlanetary File System (IPFS)
A decentralized peer-to-peer storage protocol for sharing and preserving files across a distributed network.
IPFS Hash
A unique identifier generated by IPFS to represent a file based on its content using cryptographic hashing.
IRDrop (Interest Rate Drop)
A situation in decentralized lending platforms where interest rates are reduced due to high liquidity or low borrowing demand.
Isolated Margin
A margin trading mode where each position is managed separately, limiting risk exposure to a specific trade.
Isomorphic Rollup
A rollup architecture where the Layer 2 environment mirrors Layer 1 execution logic, enabling seamless compatibility and composability.
Issuance
The process by which new tokens or coins are created and introduced into a blockchain’s circulating supply.
J
Jailing
A punishment mechanism in Proof of Stake blockchains where misbehaving validators are temporarily removed from consensus.
JSON-RPC
A lightweight remote procedure call protocol used by blockchain nodes to communicate and interact with client applications.
Just-In-Time Liquidity (JIT Liquidity)
A DeFi strategy where liquidity is added moments before a trade and removed immediately after to capture fees or price impact.
K
Keypair
A cryptographic set of private and public keys used to secure and authenticate blockchain transactions.
KYC (Know Your Customer)
A regulatory process requiring users to verify their identity before accessing financial or crypto services.
L
L2 Rollup
A Layer 2 scaling solution that executes transactions off-chain and posts compressed data to Layer 1 for security.
Liquid Staking
A staking method that allows users to earn rewards while maintaining liquidity through tradable derivative tokens.
Liquidation
A process in lending protocols where collateral is sold when a borrower’s position becomes undercollateralized.
Liquidity Mining
A DeFi strategy where users earn tokens for supplying liquidity to decentralized exchanges or protocols.
Liquidity Pool
A smart contract-based reserve of token pairs used to facilitate decentralized trading without traditional order books.
Liquidity Provider (LP)
A user who supplies tokens to a liquidity pool in exchange for a share of trading fees and LP tokens.
Liveness
A core property of blockchain consensus ensuring the network continues to make progress by producing and confirming new blocks.
LP Token
A token received by liquidity providers representing their share in a DeFi liquidity pool and used to claim rewards.
M
Mainnet
The fully operational and live version of a blockchain network where real transactions occur using actual tokens.
Maker (Order Book Context)
A trader who places a limit order that adds liquidity to the market, as opposed to a taker who removes it.
MakerDAO
A decentralized organization that governs the DAI stablecoin system using smart contracts and community governance.
Maximal Extractable Value (MEV)
The maximum value that validators or miners can extract from blockchain users by reordering, inserting, or censoring transactions.
Merkle Proof
A cryptographic proof that verifies the inclusion of a data element within a Merkle tree without revealing the entire dataset.
Merkle Tree
A hierarchical data structure that enables efficient and secure verification of large datasets using cryptographic hashes.
Meta-Transaction
A transaction model where a third party pays gas fees on behalf of a user, enabling gasless or simplified user experiences.
MetaMask
A popular browser and mobile crypto wallet for managing Ethereum accounts and interacting with Web3 dApps.
Micropayment
A very small financial transaction, often enabled by blockchain to minimize fees and reach new economic models.
Mining
The process by which new blocks are added to a Proof of Work blockchain, involving solving complex cryptographic puzzles.
Mining (Proof-of-Work Mining)
Cryptocurrency mining is the process of validating transactions and adding them to the blockchain using computational power, typically under Proof of Work systems.
Minting
The process of creating new tokens or digital assets on a blockchain, commonly used for NFTs and tokenized assets.
Modular Blockchain
A blockchain design that separates core functions like execution, consensus, and data availability across specialized layers.
Monero (XMR)
A privacy-focused cryptocurrency that uses advanced cryptographic techniques to obscure transaction details.
Monolithic Blockchain
A blockchain where all core functions—execution, consensus, and data availability—are performed on a single layer.
Multisig Wallet
A wallet that requires multiple private keys to authorize a transaction, enhancing security and collective control.
N
NFT (Non-Fungible Token)
NFTs are unique digital assets stored on a blockchain that prove ownership of a specific digital or physical item.
NFT Marketplace
A platform that allows users to buy, sell, mint, and trade NFTs across various blockchain networks.
Node (Network Node)
A node is a computer or device in a blockchain network that stores a copy of the ledger, validates transactions, and helps maintain decentralization.
Non-Custodial Wallet
A crypto wallet that gives users full control over their private keys and funds without relying on third parties.
Nonce
A unique number used once to ensure transaction uniqueness and order in blockchain systems.
O
Off-Chain
Any data, transaction, or computation that occurs outside the main blockchain network.
Off-Chain Computation
A method where heavy or complex calculations are executed outside the blockchain to enhance scalability and efficiency.
On-Chain
Any transaction, operation, or data that is directly recorded and verified on a blockchain network.
On-Chain Governance
A blockchain-based governance system where protocol upgrades and decisions are made via token holder votes recorded on-chain.
One-Way Peg
A mechanism that allows assets to move from one blockchain to another but not back in the opposite direction.
Optimistic Rollup
A Layer 2 scaling solution that assumes transactions are valid by default and only runs fraud proofs if challenged.
Oracles (Blockchain Oracles)
Blockchain oracles are services that connect smart contracts to off-chain data sources, enabling blockchains to interact with real-world information.
Order Book
A list of buy and sell orders organized by price level, used by exchanges to facilitate trading.
Ownership Proof
A verifiable method to prove control or possession of a digital asset, wallet, or on-chain identity.
P
Paper Wallet
A printed or handwritten document containing a cryptocurrency private key and public address for offline storage.
Peer-to-Peer (P2P)
A decentralized communication model where participants interact directly without intermediaries.
Permissioned Blockchain
A blockchain where access to participation or data is restricted to approved entities.
Permissionless Blockchain
An open blockchain network where anyone can participate without prior approval.
Permissionless vs. Permissioned
Compares open, decentralized blockchain networks with restricted, access-controlled systems based on participation rights.
Plasma
A Layer 2 scaling solution for Ethereum that uses child chains to offload transaction processing from the main chain.
POAP (Proof of Attendance Protocol)
A digital badge protocol that issues NFTs to verify attendance at events, activities, or milestones.
Privacy Coin
A type of cryptocurrency that uses advanced cryptographic techniques to hide transaction details for greater anonymity.
Private Key
A secret cryptographic key that allows users to access, control, and sign transactions from a blockchain wallet.
Proof of Authority (PoA)
A consensus mechanism where pre-approved validators create new blocks, offering speed and control over decentralization.
Proof of Burn (PoB)
A consensus mechanism where participants destroy tokens to gain the right to mine or validate new blocks.
Proof of History (PoH)
A time-based consensus mechanism that uses cryptographic timestamps to verify the sequence of blockchain events.
Proof of Humanity (PoH)
A decentralized identity system designed to verify that a person is a unique human through community-backed validation.
Proof of Reserves (PoR)
A cryptographic method for verifying that a centralized entity holds the assets it claims on behalf of users.
Proof of Stake (PoS)
Proof of Stake (PoS) is a blockchain consensus mechanism where validators are chosen based on how much cryptocurrency they hold and stake.
Proof of Stake (PoS)
A consensus mechanism where validators are selected based on the amount of cryptocurrency they stake in the network.
Proof of Work (PoW)
Proof of Work (PoW) is a blockchain consensus mechanism where miners solve computational puzzles to validate transactions and add new blocks.
Proof of Work (PoW)
A consensus algorithm where miners solve computational puzzles to validate transactions and secure the blockchain.
Public Key
A cryptographic key used to receive funds and verify signatures, publicly linked to a private key.
Public Key Infrastructure (PKI)
A framework that manages cryptographic keys and certificates to enable secure communication and identity verification.
Q
Quantum Computing
A new computing paradigm that uses quantum bits to solve problems beyond the capabilities of classical computers.
Quantum Resistant Ledger (QRL)
A blockchain designed to be secure against future quantum computer attacks using post-quantum cryptography.
Quorum
A permissioned blockchain platform derived from Ethereum, designed for enterprise use with enhanced privacy and performance.
R
Ransomware
A type of malicious software that encrypts files and demands cryptocurrency payment to restore access.
Reentrancy Attack
A smart contract vulnerability where an external call reenters the same contract before its previous execution completes.
Regen Network
A blockchain platform focused on ecological data, carbon credits, and regenerative finance (ReFi).
Relayer
An off-chain actor or service that submits transactions on behalf of users in systems like rollups, bridges, and meta-transactions.
Reorg (Blockchain Reorganization)
A temporary blockchain fork where a previously accepted chain segment is replaced by a longer competing version.
Restaking
A process where staked assets are reused to secure additional protocols or services, extending utility and earning potential.
Reversible ICO (rICO)
A fundraising model that allows investors to withdraw unallocated funds during a token sale for added protection.
Rich List
A ranked list of the blockchain addresses or wallets holding the most tokens or cryptocurrencies.
Ring Signature
A privacy-preserving cryptographic technique that hides the true signer among a group of possible signers.
Roadmap
A strategic timeline outlining the future plans, features, and milestones of a blockchain or crypto project.
Rollup
A Layer 2 scaling solution that executes transactions off-chain and posts compressed data to the base blockchain.
Rug Pull
A type of crypto scam where developers withdraw liquidity or abandon a project after collecting user funds.
S
SAFU
An acronym for 'Secure Asset Fund for Users', popularized by Binance as a crypto safety fund and meme for asset protection.
Sandbox (in Blockchain)
An isolated environment used to test blockchain applications or simulate smart contract behavior without affecting live systems.
Satoshi
The smallest unit of Bitcoin, named after its creator, representing 0.00000001 BTC.
Satoshi Nakamoto
The pseudonymous creator of Bitcoin and author of its original whitepaper.
Scalability Trilemma
A concept that describes the trade-off between scalability, security, and decentralization in blockchain design.
Scam Token
A fraudulent or deceptive cryptocurrency created to trick investors into losing funds.
Scrypt
A memory-intensive hashing algorithm used as a consensus mechanism in several cryptocurrencies.
Seed Phrase
A human-readable backup phrase used to recover a cryptocurrency wallet and its associated private keys.
Segregated Witness (SegWit)
A Bitcoin protocol upgrade that separates signature data from transaction data to improve scalability and security.
Self-Custody
The practice of personally holding and managing your own crypto assets without relying on third-party custodians.
Sharding
A blockchain scalability technique that splits the network into smaller partitions (shards) to process transactions in parallel.
Sidechain
An independent blockchain that runs in parallel to a main chain and is interoperable through a bridge.
Signature
A cryptographic proof that validates the authenticity of a message or transaction in blockchain systems.
Slashing
A penalty mechanism that removes a portion of a staker’s funds for malicious behavior or protocol violations.
Slippage
The difference between the expected and actual price of a trade due to market movement or liquidity constraints.
Smart Contract
A smart contract is a self-executing agreement with terms written directly into blockchain-based code.
Smart Contract
A self-executing program on a blockchain that automatically enforces the terms of an agreement.
Snapshot
A record of blockchain state at a specific block height, used for airdrops, voting, and token distribution.
SNARK (Succinct Non-Interactive Argument of Knowledge)
A cryptographic proof system that allows one party to prove possession of information without revealing it, using compact and efficient proofs.
Soft Fork
A soft fork is a backward-compatible blockchain update that restricts protocol rules without splitting the chain or creating a new cryptocurrency.
Soft Fork
A backward-compatible protocol upgrade that introduces new rules without requiring all nodes to update.
Solidity
A high-level programming language used to write smart contracts on Ethereum and other EVM-compatible blockchains.
Soulbound Token (SBT)
A non-transferable NFT that represents personal achievements, identity, or reputation on the blockchain.
Stablecoin
A type of cryptocurrency pegged to a stable asset like the US dollar to reduce price volatility.
Staking
The process of locking crypto assets to support network operations and earn rewards in Proof of Stake systems.
Staking (Proof-of-Stake Validation)
Staking is the process of locking up tokens on a proof-of-stake blockchain to help validate transactions and earn rewards.
Staking Derivatives
Tradable tokens representing staked assets, allowing liquidity while still earning staking rewards.
State Channel
A Layer 2 scaling solution that allows parties to transact off-chain and settle the final state on-chain.
Stealth Address
A privacy feature that allows users to receive crypto without exposing their public address on-chain.
Subnet
A custom blockchain network within a larger ecosystem, offering scalability and application-specific configurations.
Supply (in Crypto)
The total amount of a cryptocurrency token that exists, categorized as circulating, total, or maximum supply.
Synthetic Asset
A tokenized representation of a real-world asset or derivative, tracked via smart contracts and collateral.
T
Taproot
A Bitcoin protocol upgrade enhancing privacy, scalability, and smart contract flexibility via Schnorr signatures.
Testnet
A public blockchain network used for testing applications and smart contracts without risking real assets.
The Graph Protocol
A decentralized indexing and querying protocol for blockchain data, enabling efficient access for dApps and developers.
Token
A digital unit of value issued on a blockchain, representing assets, utility, or governance rights.
Token Burn (Coin Burn)
Token burning is the permanent removal of cryptocurrency tokens from circulation by sending them to an unspendable address to reduce supply.
Token Gating
A Web3 mechanism that restricts access to content, services, or experiences based on token ownership.
Tokenomics
The economic model and distribution logic governing a cryptocurrency token's supply, demand, and utility.
Tor (The Onion Router)
An anonymity network that routes internet traffic through multiple relays to conceal user location and activity.
Total Value Locked (TVL)
A metric that measures the total amount of assets deposited in a DeFi protocol or ecosystem.
Transaction
A transaction is a recorded exchange of value or data on a blockchain, such as sending cryptocurrency or interacting with a smart contract.
Transaction Fee
A fee paid by users to process and validate transactions on a blockchain network.
Transaction Finality
The assurance that a blockchain transaction is permanently recorded and cannot be reversed or altered.
Transaction Hash
A unique identifier assigned to each blockchain transaction, used for tracking and verification.
Transparency
Transparency in blockchain means anyone can audit and verify transactions in real time via a public, decentralized ledger.
Trustlessness
A core blockchain principle where systems operate without requiring users to trust central authorities.
Turing Complete
A system capable of performing any computation given enough resources and time, including smart contract platforms like Ethereum.
TVL Ratio (Market Cap to TVL)
A metric comparing a protocol's market capitalization to its total value locked, used to assess valuation.
Two-Factor Authentication (2FA)
A security method requiring two forms of verification before granting access to an account or system.
U
UBI (Universal Basic Income in Web3)
A blockchain-based distribution model that provides recurring income to users, often tied to identity verification.
Under-Collateralization
A lending condition where the collateral value is lower than the loan value, introducing higher risk.
Uniswap
A decentralized exchange protocol that allows users to trade tokens directly via automated market makers (AMMs).
Unstoppable Domains
A Web3 platform offering blockchain-based domain names that are censorship-resistant and NFT-owned.
Utility Token
A type of blockchain token used to access products, services, or functions within a specific ecosystem.
V
Validator
An entity in Proof of Stake systems responsible for proposing and validating new blocks on the blockchain.
Vampire Attack
A strategy where a new DeFi protocol incentivizes users to switch from an existing platform by offering rewards.
Verifiable Delay Function (VDF)
A cryptographic function that requires a guaranteed minimum time to compute and is easily verifiable.
Vesting
A process by which tokens or assets are gradually released to recipients over a set time period.
Vitalik Buterin
Co-founder of Ethereum and one of the most influential figures in the blockchain and cryptocurrency space.
Voting Power
The weight of a participant’s influence in a blockchain governance decision, often based on token holdings or delegation.
W
Wallet
A digital tool that allows users to store, manage, and interact with their blockchain assets and identities.
Wallet (Cryptocurrency Wallet)
A cryptocurrency wallet is software or hardware that stores private keys used to access and manage digital assets on blockchain networks.
WalletConnect
An open protocol that allows users to connect crypto wallets to decentralized applications securely.
Watch-Only Wallet
A type of wallet setup that allows users to monitor crypto balances and transactions without private key access.
Web3
A vision for a decentralized internet where users own their data, identities, and digital assets through blockchain technology.
Web3 Browser
A browser or browser extension that allows users to interact directly with decentralized applications (dApps).
Web3 Identity
A self-sovereign identity system based on blockchain that allows users to own and control their digital credentials.
Web3 Storage
Decentralized file storage systems that allow users to store and retrieve data on blockchain-based networks.
Wei
The smallest denomination of Ether, representing one quintillionth of an ETH (10^-18 ETH).
Wrapped Token
A crypto token that represents another asset on a different blockchain, allowing cross-chain interoperability.
Z
Zero-Knowledge Proof
A method by which one party proves to another that a statement is true without revealing the underlying information.
Zero-Knowledge Proofs (ZKPs)
Zero-Knowledge Proofs (ZKPs) let someone prove a statement is true without revealing the underlying data, enhancing privacy in blockchain and cryptography.
ZK-Rollup
A layer 2 scaling solution that uses zero-knowledge proofs to batch transactions securely and efficiently.
zk-SNARK
A cryptographic proof that allows one party to prove it knows a value without revealing it, using zero knowledge.
zk-STARK
A zero-knowledge cryptographic proof system offering transparency and scalability without a trusted setup.