Account Abstraction (ERC-4337 and ERC-6900)
ERC-4337 and ERC-6900 are Ethereum standards that introduce account abstraction. This allows for flexible smart contract wallets with features like gasless transactions, social recovery, and enhanced customizability.
Airdrop
The free distribution of cryptocurrency tokens to the wallets of current cryptocurrency holders is referred to as an airdrop. It is a marketing tactic that cryptocurrency projects employ to increase awareness, attract new users, or thank current holders.
Alameda Gap
In the aftermath of the collapse of Alameda Research, a significant drop in liquidity plagued global exchanges. This decline was primarily caused by the substantial losses incurred by market makers associated with the collapse. The individual behind this collapse, Sam Bankman-Fried, allegedly siphoned billions of dollars in customer funds from FTX, a prominent cryptocurrency exchange.
Alameda Research
Alameda Research, founded by Sam Bankman-Fried in 2017, was a prominent quantitative cryptocurrency trading firm known for its algorithmic strategies. At its peak, it traded between $1 billion and $10 billion worth of cryptocurrencies daily.
Algorithm
An algorithm is a step-by-step set of rules or instructions designed to solve a problem or perform a specific task in computing and mathematics. It's a logical sequence outlining how to manipulate data, perform calculations, or execute operations to achieve a desired outcome.
All-time-high (ATH)
In the cryptocurrency market, the phrase "all-time-high" (ATH) is used to denote the highest price level that a specific cryptocurrency has ever experienced.
All-time-low (ATL)
All-time-low (ATL) refers to the lowest historical price or value of a financial asset, including stocks and cryptocurrencies. It is the point at which the asset has traded for a specific amount of time or over an extended period of time at its least costly level.
Altcoin
Any cryptocurrency that is not Bitcoin is referred to as an "altcoin." It alludes to alternate coins that were produced using the same fundamentals as Bitcoin but frequently provide distinct features or technologies. The term "altcoin" refers to a wide variety of cryptocurrencies, including Bitcoin and its equivalents such as Ethereum, Litecoin, Ripple, and many others.
Anti-Dumping Policy
An anti-dumping policy is a trade measure implemented by governments to protect domestic industries from unfair competition caused by foreign companies selling goods in the domestic market at below-market prices.
Anti-Money Laundering (AML)
Anti-Money Laundering (AML) refers to a system of laws, rules, and protocols intended to stop the unauthorized conversion of illegally obtained monies into legal assets. It is a framework created to identify and prevent money laundering and other financial crimes, such as financing terrorism.
Arbitrage
Arbitrage refers to taking advantage of price disparities across several platforms or exchanges as a trading method employed in the financial markets, including cryptocurrency marketplaces.
Artificial Intelligence (AI)
Artificial Intelligence (AI) is a transformative technology revolutionizing the way we interact with machines and process information. It refers to the simulation of human intelligence in computer systems, enabling them to perform tasks that typically require human intelligence, such as learning, reasoning, problem-solving, and understanding natural language.
ASICs
ASIC stands for Application-Specific Integrated Circuit. ASIC, as used in the context of mining cryptocurrencies, refers to specialized hardware components created to carry out a particular mining algorithm.
Asset Tokenization
Asset tokenization is the process of transforming physical assets into digital tokens that can be stored, transferred, and sold on a blockchain. Examples of such physical assets include real estate, works of art, and commodities.
Bag
In cryptocurrency slang, "bag" refers to the collection or portfolio of cryptocurrencies that an investor holds. It typically implies a long-term investment strategy, where investors accumulate and hold onto various cryptocurrencies with the expectation that their value will increase over time.
Bagholder
The term "bagholder" is often used colloquially in the context of investing to refer to an individual or investor who is holding a significant amount of a particular asset (such as stocks or cryptocurrencies) that has significantly decreased in value and is unlikely to recover.
Bear Market
A bear market is marked by falling asset prices and pessimism among investors. It is frequently linked to a deteriorating economy, growing unemployment, and unfavorable attitudes. Investors sell their assets during a bad market to protect themselves from future losses due to fear and uncertainty. As selling pressure persists, prices continue to decline, escalating the unfavorable mood.
Binance
One of the biggest cryptocurrency exchanges in the world, Binance offers customers a platform to buy, sell, and trade a variety of digital assets. It was established in 2017 by Changpeng Zhao (often referred to as "CZ") and has swiftly become well-known in the cryptocurrency industry.
Bitcoin
Bitcoin, often referred to as "digital gold," is the first decentralized cryptocurrency created by a person or group of people known as Satoshi Nakamoto. Operating on a peer-to-peer network without the need for intermediaries, Bitcoin enables secure and transparent transactions that are recorded on a public ledger known as the blockchain.
Bitcoin Improvement Proposal (BIP39)
Bitcoin Improvement Proposal 39 (BIP39) is a widely adopted standard that defines the mnemonic seed phrase format used for generating deterministic wallets in Bitcoin and other cryptocurrencies. It introduces a method for creating a human-readable list of words that can represent a complex cryptographic key, making it easier for users to back up and restore their wallets securely.
Bitcoin Santa Rally
The Bitcoin Santa Rally refers to a seasonal phenomenon in the cryptocurrency market where the price of Bitcoin experiences a significant increase during the holiday season, typically in December. This surge in Bitcoin's value is often attributed to increased investor optimism, heightened trading activity, and a general sense of festivity and positivity prevalent during the year-end period.
Blob Transactions
Blob transactions represent an innovative approach to data storage within the Ethereum network, offering significant enhancements in cost-effectiveness and scalability. Unlike traditional transactions, they operate outside the realm of the Ethereum Virtual Machine (EVM), alleviating the burden on its resources.
Block Height
Blockchain networks employ block height to indicate block order. The chain's height increases by one with each successive block. Block height determines the order of blockchain transactions.
Block Reward
The block reward is the mechanism through which new bitcoins are created and put into circulation in the context of Bitcoin, the most well-known cryptocurrency.
Blockchain
Blockchain is a decentralized, distributed digital ledger technology that makes it possible to securely and openly record and share data among many parties.
Blockchain Rollups
Blockchain rollups are a critical Layer-2 scaling solution designed to increase Ethereum's transaction throughput without sacrificing decentralization or security. They work by "rolling up" or bundling numerous off-chain transactions into a single, compressed representation.
Bounty Program
Organizations or projects reward individuals who find and report security flaws, bugs, or other defects in their software or systems. Bounty program participants, known as "bug bounty hunters," receive cryptocurrencies or cash for improving platform security.
Brokers
Brokers let traders and investors buy and sell financial assets, including stocks, cryptocurrencies, and commodities. Brokers enter markets and execute trades for clients, charging fees or commissions.
Bull Market
A bull market is characterized by rising asset prices and investor optimism. In a bull market, there is increased buying activity due to general economic or asset class confidence. Investors anticipate greater gains as prices rise, creating a positive feedback loop.
Burn
In cryptocurrency and tokens, burning is permanently removing a specified amount of tokens from circulation. The cryptocurrency or token becomes scarcer as a result. Burning can reduce inflation, improve token value, or align network incentives.
Byzantine Fault Tolerance (BFT)
Byzantine Fault Tolerance (BFT) is a critical concept in distributed systems, ensuring their resilience against faults and malicious actors. Stemming from the Byzantine Generals' Problem, where consensus must be reached despite potential traitorous elements, BFT addresses the challenge of faulty nodes in a network. In distributed systems like blockchains, BFT is crucial for maintaining trust and integrity.
Cardano
Cardano is a cryptocurrency project and decentralized blockchain platform. It was developed to offer a more scalable, sustainable, and secure platform for the creation of decentralized apps (DApps) and smart contracts.
ChatGPT
ChatGPT, which stands for Chat Generative Pre-trained Transformer, is a cutting-edge large language model developed by OpenAI, representing a significant leap in artificial intelligence technology.
Coinbase
Coinbase is One of the biggest and most well-known cryptocurrency exchanges in the world. It was established in 2012 and offers a simple platform for buying, selling, and storing different cryptocurrencies.
Cold Storage
In the context of cryptocurrencies, "cold storage" refers to a technique for protecting digital assets against online threats and hacking attempts by keeping them offline and away from the internet. This strategy often entails employing paper or hardware wallets, offering a safer option to putting money on exchanges or internet wallets that are vulnerable to hacker assaults. In order to reduce the danger of theft and unauthorized access, cold storage is used for retaining cryptocurrencies for an extended period of time.
Consensus
In the context of blockchain and cryptocurrencies, consensus refers to the process of coming to an understanding among network members regarding the legitimacy of transactions and the current state of the distributed ledger. The integrity and security of the blockchain depend on this agreement.
Cross-chain
Cross-chain refers to the interoperability between several blockchain networks that enables the seamless exchange of assets and data between them in the context of blockchain and cryptocurrencies. Users can now use assets from one blockchain on another blockchain directly, eliminating the need for middlemen.
Cross-Chain Bridges
Cross-chain bridges play a crucial role in expanding the interconnectedness of the blockchain world. These bridges are software solutions that enable the transfer of assets, data, or even instructions between different blockchain networks.
Crowdfunding
Crowdfunding is a technique for raising money for a project, company, or cause by receiving little contributions from lots of people, usually through internet platforms. It makes it possible for business owners, artists, or nonprofit organizations to obtain cash without having to rely on conventional funding sources like banks or investors.
Crypto Derivatives
Crypto derivatives are financial instruments whose value is derived from underlying cryptocurrency assets such as Bitcoin or Ethereum. Examples include futures contracts, options, swaps, and other complex financial products that allow investors to speculate on the price movements of cryptocurrencies without owning the underlying assets.
Crypto Exchange
A cryptocurrency exchange, or crypto exchange, is a digital marketplace where users may buy, sell, and trade different cryptocurrencies. It serves as a middleman, enabling exchanges between buyers and sellers and offering a secure setting in which to do so.
Crypto Mining
The practice of validating and adding new transactions to a blockchain while safeguarding the network using processing power is known as crypto mining, also known as cryptocurrency mining. When a tough mathematical puzzle is solved, miners use specialized computer hardware to add a new block to the blockchain and reward the first person to do so with freshly created cryptocurrency coins and transaction fees.
Crypto Wallet
A digital tool called a crypto wallet, also known as a cryptocurrency wallet, enables users to transfer, receive, and store different cryptocurrencies securely. It includes private keys that permit access to the user's blockchain funds.
Cryptocurrency
Cryptocurrency is a term used to describe a digital or virtual form of money that uses cryptography to safeguard transactions and regulate the generation of new units. It functions on decentralized networks, frequently built on blockchain technology, allowing peer-to-peer transactions without the use of middlemen like banks. Bitcoin, Ethereum, and Litecoin are a few well-known examples.
Cryptography
The study and application of methods for secure communication and data protection in the presence of adversaries is known as cryptography. It entails using mathematical algorithms and encryption techniques to jumble data into a form that is incomprehensible to unauthorized users.
Danksharding
Danksharding represents the crucial path towards achieving true scalability for Ethereum, necessitating several essential protocol upgrades to be implemented. Proto-Danksharding serves as an intermediate milestone on this journey, with the shared objective of optimizing Layer 2 transactions to ensure cost-effectiveness for users.
Decentraland
On the Ethereum blockchain, Decentraland is a virtual reality platform that lets users create, own, and sell digital goods and experiences. Users can explore and engage with a variety of virtual places and properties in this decentralized metaverse.
Decentralization
A system or network that lacks a centralized authority and distributes decision-making and control across numerous users or nodes is referred to as decentralized. A decentralized system is more resistant to censorship, single points of failure, and manipulation because no one organization has exclusive control over it.
Decentralized Applications (dApps)
Decentralized applications, or dApps, stand at the forefront of blockchain innovation, reshaping the digital landscape. Operating on decentralized networks, dApps leverage blockchain technology and smart contracts to offer secure, transparent, and peer-to-peer interactions.
Decentralized Autonomous Organizations (DAOs)
Decentralised Autonomous Organizations (DAOs) are blockchain-based organizations that function independently and without a central authority through predefined smart contracts. They provide for open and democratic decision-making processes because they are guided by participant consensus.
Decentralized Exchange
A decentralized exchange (DEX) runs without a central hub or middleman. Peer-to-peer transactions enable consumers to trade bitcoins right from their digital wallets. DEXs leverage blockchain and smart contracts to enable safe and transparent trading, allowing consumers more control over their assets and lowering the possibility of hacking or centralized control.
Decentralized Finance (DeFi)
A financial ecosystem known as "decentralized finance" (DeFi) is one that runs without the use of middlemen like banks or other conventional financial institutions and is based on blockchain technology. Decentralized financial infrastructure (DeFi) systems use decentralized applications (DApps) and smart contracts to offer a range of financial services, such as lending, borrowing, trading, and yield farming.
Derivatives
Derivatives are financial instruments whose value is derived from an underlying asset. They serve as tools for hedging, speculation, or gaining exposure to various markets without owning the actual asset.
Difficulty Adjustment
To maintain an average block generation time of approximately 10 minutes, Bitcoin features a difficulty adjustment algorithm. This algorithm dynamically alters the difficulty of the cryptographic puzzle miners must solve to validate blocks.
Digital Identity
The term "digital identity" describes how an individual or entity's distinctive traits, traits, and credentials are represented electronically in the digital sphere. Personal data, biometric information, and other identifiers that authenticate and validate a user's online presence and actions are all included in it.
Directed Acyclic Graph (DAG)
A data structure called a Directed Acyclic Graph (DAG) is used in blockchain technology and computer science to organize and represent information without cycles or loops. It is a graph in which no pathways lead back to the beginning point and where edges have a distinct direction.
Distributed Ledger
A decentralized network's distributed ledger is a database that is updated and synchronized across numerous nodes or computers. Without the requirement for a centralized authority, it enables participants to securely and transparently record, preserve, and amend transactions or data. Blockchain systems are based on distributed ledger technology, which offers an unchangeable and impenetrable record of all network activity.
Double Spending
When a digital currency is used fraudulently more than once before the transaction has been verified on a blockchain, it is referred to as double spending. In decentralized digital currencies like Bitcoin, where transactions must be verified by the network in order to avoid duplication, it is a serious issue.
Dusting Attack
A harmful practice known as a "dusting attack" involves sending a tiny quantity of cryptocurrency to a number of different addresses in order to deanonymize and trace user transactions. In order to learn more about users' behaviors, the attacker wants to connect these dust transactions to real identities or larger addresses.
EIP-1153 (Transient Storage Opcodes)
EIP-1153 introduces a new "transient storage" option within the Ethereum blockchain. This storage is temporary, meaning data within it is automatically deleted after a transaction finishes. It's much cheaper to use than regular storage and is ideal for passing information between different parts of a smart contract within a single transaction.
EIP-4788 (Beacon Block Root Commits)
EIP-4788 proposal integrates "Beacon Block Roots" into each Ethereum Virtual Machine (EVM) block. Beacon Block Roots are unique identifiers of blocks on the Ethereum Beacon Chain, summarizing the chain's state for security and verification purposes.
EIP-4844 (Proto-Danksharding)
EIP-4844 (proto-danksharding) is a significant Ethereum improvement proposal that introduces a new transaction type called "blob-carrying transactions." These transactions carry large "blobs" of data that are temporarily stored on the Ethereum consensus layer (beacon nodes) for a short period.
EIP-6780 (Restrict SELFDESTRUCT)
The SELFDESTRUCT opcode is a powerful tool that lets smart contracts delete themselves, sending remaining funds to a designated address. It's akin to streamlining Ethereum's internal housekeeping practices for a smoother-running network.
Encryption
Encryption transforms plaintext or readable data into ciphertext using cryptographic techniques. This makes sure that the original data is rendered incomprehensible and protected from unauthorized access while being sent or stored. The procedure can be reversed and the original data can be retrieved only by authorized persons who have the corresponding decryption key.
ERC-20
A technological standard or set of guidelines called ERC-20 is used on the Ethereum blockchain to make it easier to create and use fungible tokens. It outlines the fundamental interfaces and functionalities necessary for tokens to work with the Ethereum network, enabling seamless interoperability between various decentralized applications (DApps) and wallets.
ERC-721
On the Ethereum blockchain, a technical standard known as ERC-721 establishes the guidelines for producing and administering non-fungible tokens (NFTs). ERC-721 tokens are different and indivisible, unlike ERC-20 tokens, and they stand for discrete assets with unique features and ownership.
Escrow
Escrow is a term used to describe a financial arrangement in which a dependable third party keeps and manages money or other assets on behalf of two parties involved in a transaction. To provide security and lower risks for both parties, the monies are held in escrow until particular criteria or requirements are satisfied.
Ether
The Ethereum blockchain's native coin, Ether (ETH), is used to power transactions and smart contracts on the system. It serves as a financial incentive for miners to verify transactions by being used to pay for computational services and transaction fees.
Ethereum Blockchain
Developers can create and implement smart contracts and decentralized applications (DApps) on the open-source, decentralized Ethereum network. Participants in the decentralized computer network that runs it validate and log transactions on the blockchain.
Ethereum Improvement Proposals (EIPs)
Ethereum Improvement Proposals (EIPs) are standards outlining proposed changes or enhancements to the Ethereum network. These proposals cover a wide range of topics, from technical upgrades to changes in network governance.
Ethereum Name Service (ENS)
The Ethereum Name Service (ENS) is a decentralized domain name system on the Ethereum blockchain that allows users to associate human-readable names with complex Ethereum addresses, simplifying the process of sending and receiving cryptocurrencies and interacting with smart contracts.
Ethereum Virtual Machine (EVM)
Ethereum Virtual Machine (EVM) is a crucial element of the Ethereum blockchain network. Smart contracts, which are self-executing programs written in Solidity or other programming languages supported by Ethereum, are executed in this virtual runtime environment.
Etherscan
A popular blockchain explorer and analytics application created exclusively for the Ethereum blockchain is called Etherscan. On the Ethereum network, it enables users to look up, view, and validate transactions, smart contracts, and addresses.
Exchange Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) in the realm of cryptocurrency have emerged as innovative financial instruments, providing investors with exposure to the digital asset market within a traditional, regulated framework.
Federal Reserve
The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. It is responsible for conducting monetary policy, regulating financial institutions, and overseeing the stability of the financial system.
Fiat Currency
Any government-issued currency that is not backed by a tangible good like gold or silver is referred to as fiat currency. Instead, money derives its worth from the people who use it, their faith in it, the support of the government, and its status as legal cash.
Flash Loan
Flash loans are a particular kind of decentralized finance (DeFi) loan that lets users borrow money from a lending protocol without the requirement for collateral, as long as the borrowed money is paid back in the same transaction.
FOMO
FOMO is an acronym that stands for "Fear of Missing Out.
Fork
In the world of blockchain technology and cryptocurrencies, a fork is the division of the primary blockchain into two distinct branches.
FUD
FUD is an acronym that stands for "Fear, Uncertainty, Doubt." Spreading false or untruthful information about a certain subject or investment is a method used to frighten away potential users or investors.
Full Node
A full node is a computer or other device that maintains an accurate and complete copy of the whole blockchain in the context of blockchain networks.
Fungible Tokens
Digital assets with equal value and fungibility are referred to as fungible tokens. In other words, each unit of a fungible token is interchangeable with every other unit of the same token and is not distinct from them.
Game-Fi
Game-Fi, an abbreviation for "Game Finance," is a blockchain-based concept that blends aspects of decentralized finance (DeFi) with gaming. It entails combining in-game assets, virtual economies, and non-fungible tokens (NFTs) with financial protocols.
Gamma Squeeze
In the realm of cryptocurrency trading, a gamma squeeze occurs when a surge in call option purchases drives market makers to hedge their positions by buying the underlying digital assets. This increased demand for the cryptocurrency prompts a rise in its spot market price, creating a feedback loop.
Gas Fee
A petrol price is a transaction cost in blockchain networks that users pay to execute smart contracts or perform network functions. It is represented in a cryptocurrency such as Ether by the computational resources required to perform the transaction.
Gas Limit
The maximum amount of computing labor or operations allowed for a transaction on a blockchain network is referred to as the gas limit. It is measured in units of gas and serves as a safeguard against infinite loops or excessive resource consumption.
Generative AI
Generative AI, a transformative branch of artificial intelligence, involves algorithms that create new and unique content, mimicking human creativity. Its rise has been marked by significant advancements in deep learning techniques, enabling machines to generate realistic images, videos, music, and even text. In various fields, generative AI finds applications, ranging from art and entertainment to healthcare and design.
Genesis Block
The Genesis Block is the initial block in the ledger of a blockchain network. It is designed to help the blockchain get started and contains no references to prior blocks.
Governance Token
A governance token is a cryptocurrency token that entitles holders to vote in a decentralized network or platform's decision-making process. Changes to the network's protocols, features, and policies can be proposed and voted on by token holders.
GPU Mining
The technique of validating and adding new blocks to a blockchain using graphics processing units (GPUs) is known as GPU mining. Miners utilize GPUs to solve complicated mathematical puzzles and compete to be the first to find a valid block.
Halving
In the context of Bitcoin, halving refers to a pre-programmed event in which the block reward provided to miners for validating transactions is cut by half. This practice is repeated at regular intervals, often every four years, and is intended to manage inflation while progressively reducing the issuance of new coins.
Hard Cap
In the context of fundraising and token sales, a hard cap refers to the greatest amount of money that a project or corporation hopes to raise. It denotes the maximum amount of money that the project is ready to accept during an initial coin offering (ICO) or token sale.
Hard Fork
A hard fork is a severe and irreversible divergence in the protocol of a blockchain network that renders previously valid blocks or transactions invalid. It happens when the network's rules are modified or changed, resulting in a split from the previous blockchain.
Hash
A hash is a fixed-size alphanumeric string produced by a hash function, which accepts any size of input data and produces a unique, deterministic result. This cryptographic technique maintains data integrity and is frequently used to validate files, passwords, and digital signatures.
Hash Rate
The computing power or processing speed of a blockchain network or cryptocurrency mining operation is referred to as hash rate. It quantifies the amount of cryptographic hashes computed per second by a miner or network.
HODL
HODL is a bitcoin community term derived from a misspelling of "hold." It is the practice of keeping one's bitcoin assets for an extended period of time, regardless of market swings or short-term price volatility.
Hot Wallet
A hot wallet is a cryptocurrency wallet that is actively utilized for frequent transactions and is connected to the internet. It enables customers to rapidly and easily access their funds for trading, spending, or other uses.
Hybrid Blockchain
A hybrid blockchain is one that includes elements from both public and private blockchains. It supports both open and permissioned participation, giving you more flexibility and control over data visibility and access.
Hyperledger
Hyperledger is a Linux Foundation open-source collaborative initiative that intends to promote cross-industry blockchain technologies. It offers a modular framework and tools for developing enterprise-grade, permissioned blockchain applications for a wide range of industries.
Immutable
Immutable data or information cannot be changed, interfered with, or destroyed once it is stored in a blockchain or other decentralized ledger systems. Once data is added to a block and validated by network consensus, it is fixed and immutable.
Initial Coin Offering (ICO)
An Initial Coin Offering (ICO) is a way of generating cash utilized by cryptocurrency entrepreneurs. During an ICO, a company sells its own digital tokens or coins in exchange for established cryptocurrencies such as Bitcoin or Ethereum, as well as fiat currency.
Initial Exchange Offering (IEO)
An Initial Exchange Offering (IEO) is a fundraising event held directly on cryptocurrency exchanges by cryptocurrency projects. During an IEO, the exchange serves as a facilitator, hosting the token sale on its platform and performing due diligence on investors' behalf.
Initial Public offerings (IPOs)
In the realm of cryptocurrency, Initial Public Offerings (IPOs) take on a distinctive form compared to traditional financial markets. Unlike traditional IPOs where companies go public by issuing shares, crypto IPOs often involve the launch of new tokens through Initial Coin Offerings (ICOs) or Token Generation Events (TGEs). These events allow blockchain projects to raise capital by selling a portion of their native tokens to early investors.
Interoperability
The capacity of multiple blockchain networks or systems to communicate, interact, and share data seamlessly is referred to as interoperability. It allows for the transfer of assets and information across different blockchain platforms, enabling collaboration and synergy across diverse decentralized applications and networks.
InterPlanetary File System (IPFS)
The InterPlanetary File System (IPFS) is a peer-to-peer distributed file system that aims to make the internet more resilient and decentralized. It enables users to store and exchange files in a distributed manner, accessing data via content-based addressing rather than traditional location-based URLs.
JOMO
JOMO stands for "Joy of Missing Out." It is the sensation of contentment and enjoyment that results from disconnecting or refraining from social engagements, events, or online distractions.
JSON-RPC
JSON-RPC (JavaScript Object Notation - Remote Procedure Call) is a lightweight, language-independent RPC protocol. It allows clients to request services or perform operations on a server across a network by using JSON as the message data format.
Key Derivation
The process of generating one or more cryptographic keys from a single master key or passphrase is known as key derivation. It uses mathematical algorithms, such as key stretching and key expansion, to generate unique and safe keys for various purposes or users.
Key Pair
A key pair is made up of two cryptographic keys, one public and one private, that are used in asymmetric encryption systems. The public key is freely disseminated and used to encrypt data or verify digital signatures, whereas the private key is kept hidden and used to decrypt data or create digital signatures.
Kimchi Premium
Kimchi premium refers to the phenomenon in the cryptocurrency market where the price of a particular digital asset, such as Bitcoin or Ethereum, is significantly higher on South Korean exchanges compared to global exchanges.
Kraken
Kraken is a well-known bitcoin exchange platform that was created in 2011. It enables users to purchase, sell, and trade bitcoins using various fiat currencies.
KYC
KYC is an abbreviation for "Know Your Customer." Businesses and financial institutions use it to verify and collect information about their clients' identities and financial activity.
Large Language Models (LLMs)
Large Language Models (LLMs) are advanced AI models designed to comprehend and generate human-like text at scale. These models, such as GPT-3 and BERT, consist of billions of parameters, enabling them to understand context, grammar, and meaning from vast amounts of text data.
Ledger Nano
The Ledger Nano is a compact hardware wallet that synchronizes with a smartphone or computer. This sophisticated device serves as a fortified vault for safeguarding one's cryptocurrency holdings. Its primary functions encompass secure storage and efficient trading of various cryptocurrencies, all facilitated through the intuitive Ledger Live app.
Ledger Wallet
A Ledger wallet is a hardware wallet designed and manufactured by the Ledger company. These hardware wallets support multiple cryptocurrencies and are utilized for securely storing offline private keys. Their hardware wallets include Ledger Stax, Ledger Nano X and Ledger Nano S.
Legal Tender
From a general perspective, legal tender refers to currency recognized by a government as valid payment. For instance, the US dollar is recognized as legal tender in the United States.
Lightning Network
The Lightning Network is a solution designed to address the scalability challenges of the Bitcoin blockchain. At its core, it is a payment channel network operating at the layer-two level on the blockchain. The Lightning Network was introduced by Joseph Poon and Thaddeus Dryja in a paper published in January 2016.
Limit Order
In cryptocurrency trading, a limit order is a type of order placed by a trader to buy or sell a specified amount of a digital asset at a predetermined price or better.
Liquidity
In business, economics, or investment, market liquidity refers to a characteristic of a market in which an individual or company can swiftly buy or sell an asset without significantly impacting the asset's value.
Liquidity Mining
Liquidity mining is a DeFi mechanism where users provide liquidity to a decentralized exchange or protocol in exchange for rewards, typically in the form of tokens. Users deposit their assets into liquidity pools, which are then used to facilitate trading on the platform.
Liquidity Pool
A liquidity pool is a collection of cryptocurrency locked in a smart contract, enabling quicker transactions. Liquidity pools benefit yield farming and blockchain games. They incentivize liquidity providers (LPs) who receive rewards called liquidity provider tokens (LPTs) proportional to the contribution made by LPs, usable in various ways within the DeFi network.
Litecoin
Litecoin (LTC) is a digital currency engineered to facilitate swift, secure, and cost-effective transactions through the utilization of blockchain technology. It initially drew inspiration from the Bitcoin (BTC) protocol and distinguishes itself through variations in its hashing algorithm, maximum supply, block processing times, and other key parameters.
Long Position
In finance, having a long position in a financial instrument signifies ownership of a positive quantity of that instrument, with an anticipation of its value appreciation over time. This conviction stems from the anticipation of favorable market conditions, economic developments, or fundamental strengths associated with the asset.
Mainnet
Mainnet is the term used in blockchain technology to refer to the production or live network of a cryptocurrency or blockchain platform.
Maker Orders
In the realm of cryptocurrency trading, maker orders function similarly to those in traditional markets. They are instructions placed by traders to buy or sell digital assets at specific prices, contributing liquidity to the exchange's order book.
Market Cap
Market capitalization, often referred to as market cap, is a financial metric used to assess the total value of a cryptocurrency.
Market Order
A market order in cryptocurrency trading is an order to buy or sell a digital asset at the best available current market price. Unlike limit orders, which specify a particular price, market orders execute immediately at the prevailing market price.
Mempool
Mempool (short for "memory pool") is a component found in the blockchain serving as a temporary storage area for pending transactions awaiting validation and inclusion in the next block of the blockchain.
Merkle Tree
Merkle Tree is a computer science term found in cryptocurrencies like Ethereum. It condenses large datasets into a single hash called the Merkle root. This root is included in a block's header, enabling easy verification of transaction authenticity.
Merkle Trees
Merkle trees are a fundamental data structure used in blockchain technology for efficiently verifying data integrity. Leaves at the bottom hold data chunks, and parent nodes store the hash of their combined child node hashes.
Meta Transactions
Meta transactions are a mechanism used in blockchain networks to allow users to perform transactions without directly paying transaction fees in the network's native cryptocurrency.
MetaMask
MetaMask is a cryptocurrency wallet and browser extension that allows users to manage their digital assets and interact with decentralized applications (DApps) on the Ethereum blockchain.
MicroStrategy
MicroStrategy is a publicly traded business intelligence company known for its significant investments in Bitcoin. Led by CEO Michael Saylor, MicroStrategy made headlines in 2020 when it announced its decision to adopt Bitcoin as its primary treasury reserve asset and subsequently purchased billions of dollars worth of Bitcoin for its corporate treasury.
Mining Pool
A mining pool refers to a collective group of miners combining their computational resources to increase the chances of successfully validating transactions and earning rewards in cryptocurrency.
Monero (XMR)
Monero (XMR) was launched in 2014, designed to improve privacy and security features. Monero is a cryptocurrency characterized by its focus on enhanced privacy and anonymity features.
Nakamoto Consensus
The consensus method employed by the majority of blockchain networks, including Bitcoin, is known as the "Nakamoto consensus." In order to authenticate and concur on the order of transactions in a secure and trustless manner, it depends on a decentralized network of nodes (computers) cooperating.
Natural Language Processing (NLP)
Natural Language Processing (NLP) refers to AI's ability to comprehend, interpret, and generate human language. It encompasses a range of techniques allowing machines to understand text and speech, enabling tasks like sentiment analysis, language translation, and chatbots.
Node
Node refers to a fundamental component within a computer network or blockchain system. Nodes play important roles validating transactions, maintaining a copy of the blockchain ledger, and participating in network consensus.
Non-fungible Tokens
Non-fungible tokens are a type of cryptocurrency token that represent unique, indivisible digital assets. Unlike cryptocurrencies like Bitcoin (BTC) or Ether (ETH), NFTs are not interchangeable on a one-to-one basis.
Off-chain
Transactions or data that occur outside the main blockchain network and act as solutions designed to alleviate some of the limitations of on-chain transactions, affecting scalability and high fees.
On-chain
Actions or data that are directly recorded and processed on the main blockchain network. When a transaction or smart contract execution occurs "on-chain," it means that the information is permanently and immutably stored on the blockchain ledger. On-chain actions are transparent, secure, and decentralized, and they contribute to the overall transparency and trustworthiness of blockchain networks.
Open-source
A software or project development approach that makes the source code of a program or project publicly available for inspection, use, modification, and distribution.
Oracles
Blockchain oracles are important in connecting blockchain networks with external data sources. They offer a bridge between the on-chain and off-chain worlds of blockchain technology and serve as third-party services that retrieve, verify, and authenticate external data. With this bridge smart contracts can utilize real-world data outside the blockchain network.
Over-the-counter
A type of financial market where trading occurs directly between parties, typically outside of a centralized exchange. In OTC markets, participants buy and sell financial instruments, such as stocks, bonds, currencies, or derivatives, directly with each other, often through brokers or dealers.
Paper Wallet
Paper wallets were a popular method to store cryptocurrency offline. These paper wallets consisted of a piece of paper with QR codes representing the private and public keys.
Peer-to-peer (P2P)
Peer-to-peer (P2P) refers to a decentralized communication and computing model in which participants in a network, often referred to as "peers," interact directly with one another without the need for a centralized intermediary.
Prague/Electra Upgrade
The anticipated Prague/Electra upgrade encompasses a set of improvements still in active development. It's envisioned as a two-part upgrade with distinct functionalities for the execution layer (Prague) and the consensus layer (Electra) of the Ethereum blockchain.
Privacy Coin
A privacy coin is a type of cryptocurrency designed with a focus to enhance the privacy and anonymity of its users' transactions.
Private Key
A Private Key is a confidential cryptographic key in asymmetric encryption systems, such as those used in blockchain technology and secure communications. It remains known only to the key holder and is used to authenticate, authorize, and sign transactions, ensuring data privacy and security.
Proof-of-stake (PoS)
Proof-of-Stake (PoS) is a blockchain consensus mechanism in which validators are chosen to create new blocks and secure the network based on the amount of cryptocurrency they "stake" or lock up as collateral.
Proof-of-work (PoW)
Blockchain networks use the PoW consensus technique to verify transactions and secure the network. PoW was first presented as a key component of the Bitcoin blockchain by its creator, Satoshi Nakamoto.
Public Key
A public key is a component of an asymmetric key pair in cryptographic systems. It is openly shared and serves as an identifier and means for verifying digital signatures and encrypting messages.
QR Code
A two-dimensional barcode called a QR code, or quick response code, stores data in a pattern of black squares on a white square grid.
Quantitative Easing (QE)
Quantitative Easing (QE) is a monetary policy tool employed by central banks to stimulate the economy when standard measures like lowering interest rates become ineffective.
Recession
A recession is an economic downturn characterized by a significant decline in economic activity, often measured by a contraction in GDP, increased unemployment, and reduced consumer spending.
Rekt
Rekt" is internet slang derived from "wrecked." It's commonly used in the cryptocurrency and online gaming communities to describe a situation where someone has suffered significant losses or setbacks, often in trading or gaming. Being "rekt" implies a humorous or exaggerated way of expressing failure or defeat.
Restaking
Restaking in the realm of Ethereum staking involves taking your accumulated staking rewards and adding them back to your staked Ether (ETH) balance. This process compounds your earnings as you now earn rewards on the initial staking deposit plus the increased amount from reinvesting rewards.
Return On Investment (RoI)
Return On Investment is a financial metric used to evaluate the profitability of an investment. It is calculated by dividing the net gain or profit from an investment by the initial cost or investment amount, expressed as a percentage.
Ripple
Ripple, now known as Ripple XRP, is a blockchain-based payment protocol and cryptocurrency created by Ripple Labs. It facilitates fast and low-cost cross-border transactions for financial institutions, using XRP as a bridge currency.
Robinhood
Robinhood is a popular commission-free online brokerage and trading platform that offers stock, cryptocurrency, and options trading. It gained popularity for democratizing financial markets and making trading accessible to a broader audience.
Rug Pull
A "rug pull" in the world of cryptocurrency refers to a fraudulent practice where the creators of a cryptocurrency project suddenly abandon it, taking away investors' funds and leaving the project worthless.
Satoshi
Satoshi is the mysterious individual or group behind Bitcoin's creation, introducing the groundbreaking cryptocurrency concept in 2008 via a whitepaper.
Sats
Sats, short for "satoshis," are the smallest unit of Bitcoin, representing one hundred millionth of a single Bitcoin (0.00000001 BTC). Named after Bitcoin's pseudonymous creator, Satoshi Nakamoto, sats are used to denominate and measure tiny amounts of Bitcoin in transactions and account balances.
Script
Bitcoin employs a simple, stack-based scripting language to define the conditions under which funds from a transaction can be spent. A standard script ensures authorization by requiring the corresponding private key.
Securities And Exchange Commission (SEC)
The SEC is a US regulatory agency tasked with overseeing and enforcing securities laws. It plays a pivotal role in regulating financial markets, including cryptocurrencies and blockchain-related activities.
Smart Contract
A smart contract is a self-executing contract that automates agreements and transactions using predefined code on blockchain platforms like Ethereum. They enable trustless, decentralized interactions, executing when specific conditions are met.
Social-Fi
Social-Fi represents the convergence of social media and decentralized finance (DeFi), aiming to integrate social interactions, content creation, and financial services on blockchain platforms. Social-Fi projects explore novel ways to blend these elements, redefining the relationship between social media and financial ecosystems.
Solana
Solana is a blockchain platform known for its high transaction throughput and scalability. It supports decentralized applications (dApps) and DeFi projects, utilizing innovative technologies like Proof of History (PoH) for consensus and speed.
Solidity
Solidity is a high-level programming language for creating smart contracts on Ethereum and other compatible blockchain platforms. It empowers developers to build decentralized applications and programmable tokens while utilizing blockchain's capabilities.
Stablecoin
A stablecoin is a cryptocurrency designed to maintain a stable value, typically pegged to a reserve asset like the US dollar.
Staking
Staking involves locking up cryptocurrency assets in a blockchain network to support its operations and earn rewards. Stakers help secure the network, typically in Proof of Stake (PoS) systems, and receive incentives for their contributions.
Standard & Poor's (S&P)
Standard & Poor's (S&P) is a financial services company known for its stock market indices, credit ratings, and research services. It is one of the three major credit rating agencies, along with Moody's and Fitch Ratings, and is widely regarded as a leading provider of independent credit analysis and risk assessment.
Taker Orders
A taker order in crypto is an instruction placed by a trader to buy or sell digital assets at the prevailing market price, immediately matching with existing orders on the order book.
Tether (USDT)
Tether (USDT) is a stablecoin that intends to keep its value stable by tying its price to a certain reserve asset, frequently the US dollar (USD).
The Sandbox
Users can develop, own, and make money off of their gaming experiences and assets using the blockchain-based virtual environment and game platform known as The Sandbox. Users can create, customize, and exchange virtual goods and experiences within the platform's metaverse by using non-fungible tokens (NFTs) and blockchain technology.
Timelocks
Timelocks introduce a time-based element to Bitcoin transactions. They function as programmable restrictions, preventing the movement of funds until a specified condition is met.
Tokenization
Tokenization, in the realm of blockchain and digital assets, is the process of converting rights to an asset into a digital token on a blockchain.
Tokenomics
Tokenomics is a portmanteau of "token" and "economics" and refers to the study of the economic aspects and principles governing the behavior and dynamics of cryptocurrencies or tokens within a blockchain ecosystem.
Trading Volume
The entire amount of assets, such as stocks or cryptocurrencies, traded on a given market or exchange over a specific time period is referred to as trading volume. Trading volume is often expressed in terms of the number of units traded or the total value of assets traded.
Transaction Fee
The cost of executing and verifying a transaction on a blockchain network is known as a transaction fee. Users frequently have to pay miners or validators a fee in order for them to prioritize and add their transactions to the blockchain.
Trustless
The word "trustless" describes a feature of blockchain and decentralized systems where users can communicate and conduct transactions without having to believe in a centralized authority or middleman. To guarantee the legitimacy and security of transactions, it uses smart contracts, consensus procedures, and cryptographic techniques.
Uniswap
Built on the Ethereum blockchain, Uniswap is a decentralized cryptocurrency exchange (DEX). Users can exchange a variety of Ethereum-based tokens directly from their wallets without the aid of a middleman or order book thanks to this automated market maker (AMM) that works in this manner.
Unspent Transaction Output (UTXO)
UTXO, or Unspent Transaction Output, represents the basic building block of blockchain-based cryptocurrencies like Bitcoin. In essence, UTXOs are individual units of cryptocurrency, each representing a portion of a user's balance that has not yet been spent.
Utility Token
A cryptocurrency called a utility token is primarily made to allow users access to and use of a particular blockchain network or decentralized application (dApp). Utility tokens do not represent ownership in an underlying asset or business, in contrast to security tokens.
Validator
A validator is a participant in a blockchain network who validates and verifies transactions and blocks using a consensus algorithm, often Proof of Stake (PoS) or Delegated Proof of Stake (DPoS).
Verkle Trees
Verkle trees are a more advanced type of Merkle tree, taking up significantly less storage space. In a regular Merkle tree, each non-leaf node stores the hashes of its child nodes.
Virtual Currency
A digital representation of value utilized as a means of trade within a particular virtual or digital ecosystem is known as virtual money. These currencies often only exist in digital form and are decentralized.
Volatility
Volatility is the degree to which the price or value of a financial item, like a stock or cryptocurrency, changes or fluctuates over time. Low volatility signifies relatively consistent and predictable price swings, whereas high volatility suggests considerable and swift changes in the asset's price.
Wallet
A wallet is a software or hardware device that lets users store, control, and communicate with their digital assets in the context of cryptocurrencies. Users can access and manage their cryptocurrency holdings, execute transactions, and keep track of balances thanks to the securely stored private keys.
Wash Trading
A trader or corporation participates in wash trading, a dishonest activity in financial markets, including cryptocurrency exchanges, where they buy and sell the same commodity to inflate transaction volume and price movements.
Web3
The third generation of the internet, also known as Web3, has a focus on decentralized and blockchain-based technology. In order to provide consumers with more control over their data and online interactions, it strives to establish a more user-centric, open, and trustless internet.
Whale
In the cryptocurrency world, a "whale" refers to an individual or entity that holds a significant amount of a particular cryptocurrency. These whales typically possess large quantities of digital assets, often representing a considerable portion of the total circulating supply.
Worldcoin
Worldcoin is a pioneering cryptocurrency project founded with the vision of providing a universal basic income (UBI) to every individual globally. Started in 2021, the initiative was established by Sam Altman, a renowned entrepreneur, investor, and former president of the startup accelerator Y Combinator. On July 24, 2023, it transitioned from beta, rolling out across 11 orb locations in the U.S., with ambitious expansion plans encompassing 35 cities in 20 countries.
Yield Farming
The Decentralized Finance (DeFi) approach, known as "yield farming," involves cryptocurrency investors providing liquidity to decentralized platforms in exchange for incentives or interest.
Yield Token
A yield token denotes ownership of a share of the yield produced by a platform or DeFi protocol that generates yield. These coins are frequently given as rewards or incentives to liquidity providers.
ZCash
Zcash, a privacy-focused cryptocurrency, employs zero-knowledge proofs (also known as zk-SNARKs) to support private and anonymous transactions.
Zero-Knowledge Proof (ZKP)
A zero-knowledge proof is a cryptographic technique that enables one person (the prover) to convince another party (the verifier) that they are aware of a secret or truth without disclosing the real secret or any other information.
1000 Finney
A Finney, named after the influential cypherpunk Hal Finney, is a convenient unit of Bitcoin representing one-thousandth of a BTC (0.001 BTC). Notably, Finney, a cryptographic pioneer and early Bitcoin adopter, was the recipient of the first-ever Bitcoin transaction from Satoshi Nakamoto.
21 Million Club
The "21 Million Club" is a colloquial term within the cryptocurrency space, specifically associated with Bitcoin. It refers to the predetermined maximum supply of Bitcoin, capped at 21 million coins as per the Bitcoin protocol.
401(k) Plan
A 401(k) plan is a tax-advantaged retirement savings account offered by employers to their employees in the United States. Through a 401(k) plan, employees can contribute a portion of their pre-tax income to a retirement savings account, which is then invested in a variety of assets such as stocks, bonds, and mutual funds.
51% Attack
51% attack is a significant security concern in the cryptocurrency world. It occurs when a single entity or group gains control of more than 50% of a blockchain network's computational power.
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