Blockchain Glossary ftw

A situation where a group of miners controls more than 50% of the network's mining hash rate. This majority control allows them to manipulate the blockchain, such as double-spending coins.

A type of decentralized exchange protocol that relies on a mathematical formula to price assets. AMMs enable users to trade directly against a liquidity pool.

A unique string of characters that represents a wallet on a blockchain. Addresses are used to send and receive cryptocurrencies.

A distribution of cryptocurrency tokens to a large number of wallet addresses for free or as part of a promotional campaign. Airdrops are often used to increase awareness and adoption of a new cryptocurrency.

Any cryptocurrency other than Bitcoin. Altcoins include a wide range of coins and tokens with varying use cases and technologies.

A technology that enables the exchange of one cryptocurrency for another without the need for a centralized intermediary. Atomic swaps use smart contracts to facilitate direct peer-to-peer trades.

A token standard on the Binance Smart Chain, similar to Ethereum's ERC-20. BEP-20 tokens are used for various applications within the Binance ecosystem.

A collection of transactions recorded on the blockchain. Each block is cryptographically linked to the previous one, forming a chain.

A distributed ledger technology that records transactions across a network of computers. Blockchains are secure, transparent, and immutable.

A protocol that connects two separate blockchain networks, allowing assets to be transferred between them. Bridges facilitate interoperability between different blockchain ecosystems.

Financial services provided by centralized entities that control user funds and operations. Examples include traditional banks and centralized cryptocurrency exchanges.

A platform where users can buy, sell, and trade cryptocurrencies through a central authority. CEXs provide liquidity and user-friendly interfaces but require trust in the central operator.

A type of cryptocurrency wallet that is not connected to the internet, providing enhanced security against hacking. Cold wallets are often used for long-term storage of cryptocurrencies.

A method used by blockchain networks to achieve agreement on the state of the ledger. Examples include PoW, PoS, and Delegated Proof of Stake (DPoS).

The process by which a blockchain network agrees on the validity of transactions and the state of the ledger. Common mechanisms include Proof of Work (PoW) and Proof of Stake (PoS).

Technology that enables interoperability between different blockchain networks. Cross-chain solutions allow assets and data to move seamlessly across blockchains.

A software or hardware tool used to store, send, and receive cryptocurrencies. Wallets can be categorized as hot (online) or cold (offline).

A digital or virtual currency that uses cryptography for security. Cryptocurrencies operate on decentralized networks based on blockchain technology.

An organization governed by smart contracts on a blockchain, with decisions made by token holders. DAOs enable decentralized decision-making and governance.

A platform that allows users to trade cryptocurrencies directly with each other without intermediaries. DEXs use smart contracts to facilitate trades.

A financial system built on blockchain technology that operates without central intermediaries. DeFi includes services like lending, borrowing, trading, and investing.

A consensus mechanism where token holders elect delegates to validate transactions and secure the network. DPoS aims to improve scalability and reduce centralization risks.

A cryptographic signature that verifies the authenticity and integrity of a digital message or transaction. Digital signatures are used to secure blockchain transactions.

A very small amount of cryptocurrency, often considered insignificant. Dust can accumulate in wallets as leftover amounts from transactions.

A technical standard for tokens issued on the Ethereum blockchain. ERC-20 defines a common set of rules for fungible tokens, enabling compatibility with various dApps and wallets.

A decentralized platform that enables developers to build and deploy smart contracts and dApps. Ethereum is known for its native cryptocurrency, Ether (ETH).

A type of uncollateralized loan available in DeFi, which must be repaid within the same transaction block. Flash loans enable complex arbitrage and trading strategies.

A split in a blockchain network resulting from changes in the protocol or code. Forks can be soft (backward-compatible) or hard (not backward-compatible).

The fee required to execute a transaction or smart contract on the Ethereum network. Gas prices fluctuate based on network demand.

The maximum amount of gas a user is willing to spend on a transaction. Setting an appropriate gas limit ensures the transaction is processed efficiently.

The process of decision-making and management within a blockchain network or project. Governance can be decentralized, involving community votes and proposals.

A type of token that grants holders voting rights in a blockchain project's governance decisions. Governance tokens enable decentralized decision-making in DAOs and DeFi protocols.

An event in which the reward for mining new blocks is reduced by half. Halvings occur at regular intervals in some blockchains, like Bitcoin, to control supply and inflation.

A fixed-length alphanumeric string generated by a hash function, representing data in a unique way. Hashes are used to secure and verify blockchain transactions.

A fundraising method where new cryptocurrencies are sold to early investors. ICOs are used to raise capital for blockchain projects.

A fundraising method where new cryptocurrencies are sold to early investors. ICOs are used to raise capital for blockchain projects.

The ability of different blockchain networks to communicate and interact with each other. Interoperability is crucial for the integration of diverse blockchain ecosystems.

The ability of different blockchain networks to communicate and interact with each other. Interoperability is crucial for the integration of diverse blockchain ecosystems.

A process used by financial institutions to verify the identity of their customers. KYC is essential for compliance with regulatory requirements.

A process used by financial institutions to verify the identity of their customers. KYC is essential for compliance with regulatory requirements.

A record of financial transactions that cannot be altered or deleted. In blockchain, ledgers are distributed and maintained by a network of nodes.

A record of financial transactions that cannot be altered or deleted. In blockchain, ledgers are distributed and maintained by a network of nodes.

A pool of tokens locked in a smart contract to facilitate trading on a decentralized exchange. Liquidity pools provide liquidity and enable automated trading.

A pool of tokens locked in a smart contract to facilitate trading on a decentralized exchange. Liquidity pools provide liquidity and enable automated trading.

The process of validating and recording transactions on the blockchain through computational work. Miners are rewarded with new cryptocurrency tokens.

The process of validating and recording transactions on the blockchain through computational work. Miners are rewarded with new cryptocurrency tokens.

A security feature requiring multiple private keys to authorize a transaction. Multi-Sig wallets enhance security by reducing the risk of a single point of failure.

A security feature requiring multiple private keys to authorize a transaction. Multi-Sig wallets enhance security by reducing the risk of a single point of failure.

A unique digital asset that represents ownership of a specific item or piece of content. NFTs are used in art, gaming, and collectibles.

A unique digital asset that represents ownership of a specific item or piece of content. NFTs are used in art, gaming, and collectibles.

A computer that participates in a blockchain network by validating and relaying transactions. Nodes maintain the integrity and security of the blockchain.

A computer that participates in a blockchain network by validating and relaying transactions. Nodes maintain the integrity and security of the blockchain.

Services that provide external data to smart contracts on the blockchain. Oracles enable smart contracts to interact with real-world events and data.

Services that provide external data to smart contracts on the blockchain. Oracles enable smart contracts to interact with real-world events and data.

A consensus mechanism that selects validators based on the number of tokens they hold and are willing to "stake." PoS is more energy-efficient than PoW.

A consensus mechanism that selects validators based on the number of tokens they hold and are willing to "stake." PoS is more energy-efficient than PoW.

A consensus mechanism that requires miners to solve complex mathematical puzzles to validate transactions. PoW secures the network but is energy-intensive.

A consensus mechanism that requires miners to solve complex mathematical puzzles to validate transactions. PoW secures the network but is energy-intensive.

A secret code used to sign transactions and access cryptocurrency funds. Private keys must be kept secure to prevent unauthorized access.

A secret code used to sign transactions and access cryptocurrency funds. Private keys must be kept secure to prevent unauthorized access.

A set of rules and standards that define how data is transmitted and received on a network. Blockchain protocols ensure interoperability and security.

A set of rules and standards that define how data is transmitted and received on a network. Blockchain protocols ensure interoperability and security.

A cryptographic code that allows users to receive cryptocurrency. The public key is derived from the private key and can be shared openly.

A cryptographic code that allows users to receive cryptocurrency. The public key is derived from the private key and can be shared openly.

A financial system focused on regenerative and sustainable economic practices. ReFi aims to create positive environmental and social impacts through blockchain technology.

A financial system focused on regenerative and sustainable economic practices. ReFi aims to create positive environmental and social impacts through blockchain technology.

The smallest unit of Bitcoin, equivalent to 0.00000001 BTC. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.

The smallest unit of Bitcoin, equivalent to 0.00000001 BTC. Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto.

The ability of a blockchain network to handle an increasing number of transactions. Scalability is crucial for widespread adoption and usability.

The ability of a blockchain network to handle an increasing number of transactions. Scalability is crucial for widespread adoption and usability.

A self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically enforce and execute agreements.

A self-executing contract with the terms of the agreement directly written into code. Smart contracts automatically enforce and execute agreements.

A type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar. Stablecoins are used for trading and as a store of value.

A type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar. Stablecoins are used for trading and as a store of value.

The process of participating in a PoS blockchain by locking up tokens to support network operations. Stakers earn rewards for validating transactions.

The process of participating in a PoS blockchain by locking up tokens to support network operations. Stakers earn rewards for validating transactions.

A security threat where an attacker creates multiple fake identities to gain control of a network. Sybil attacks can undermine the integrity of decentralized systems.

A security threat where an attacker creates multiple fake identities to gain control of a network. Sybil attacks can undermine the integrity of decentralized systems.

A digital asset issued on a blockchain, representing ownership or access to a service. Tokens can be fungible (like ERC-20) or non-fungible (like NFTs).

A digital asset issued on a blockchain, representing ownership or access to a service. Tokens can be fungible (like ERC-20) or non-fungible (like NFTs).

The study of the economics and design of a cryptocurrency or token. Tokenomics includes aspects like supply, distribution, and incentive mechanisms.

The study of the economics and design of a cryptocurrency or token. Tokenomics includes aspects like supply, distribution, and incentive mechanisms.

The cost required to process a transaction on a blockchain network. Fees compensate miners or validators for their work in securing the network.

The cost required to process a transaction on a blockchain network. Fees compensate miners or validators for their work in securing the network.

A participant in a PoS blockchain who validates transactions and creates new blocks. Validators are chosen based on the amount of cryptocurrency they stake.

A participant in a PoS blockchain who validates transactions and creates new blocks. Validators are chosen based on the amount of cryptocurrency they stake.

The process of gradually releasing tokens or shares to recipients over time. Vesting schedules are used to incentivize long-term commitment and performance.

The process of gradually releasing tokens or shares to recipients over time. Vesting schedules are used to incentivize long-term commitment and performance.

The degree of variation in the price of a cryptocurrency over time. High volatility can present both opportunities and risks for investors.

The degree of variation in the price of a cryptocurrency over time. High volatility can present both opportunities and risks for investors.

A digital tool used to store, send, and receive cryptocurrencies. Wallets can be software-based (hot wallets) or hardware-based (cold wallets).

A digital tool used to store, send, and receive cryptocurrencies. Wallets can be software-based (hot wallets) or hardware-based (cold wallets).

A term used to describe an individual or entity that holds a large amount of cryptocurrency. Whales can influence market prices through their trading activities.

A term used to describe an individual or entity that holds a large amount of cryptocurrency. Whales can influence market prices through their trading activities.

An authoritative report or guide that explains the technology, purpose, and mechanics of a cryptocurrency project. Whitepapers are used to inform potential investors and stakeholders.

An authoritative report or guide that explains the technology, purpose, and mechanics of a cryptocurrency project. Whitepapers are used to inform potential investors and stakeholders.

The practice of earning rewards by providing liquidity to DeFi protocols. Yield farmers earn interest or tokens by locking their assets in smart contracts.

The practice of earning rewards by providing liquidity to DeFi protocols. Yield farmers earn interest or tokens by locking their assets in smart contracts.

A cryptographic method that allows one party to prove to another that a statement is true without revealing any additional information. Zero-knowledge proofs enhance privacy and security.

A cryptographic method that allows one party to prove to another that a statement is true without revealing any additional information. Zero-knowledge proofs enhance privacy and security.