The Blockchain and Cryptocurrency Acronyms Dictionary

The Blockchain and Cryptocurrency Acronyms Dictionary

In this comprehensive guide, we will cover all the important acronyms and terms that you need to know when dealing with blockchain technology and cryptocurrencies.

From A to Z, we’ll cover everything from basic terms like to more advanced concepts. 

Whether you are new to the world of blockchain and crypto or an experienced trader, this dictionary is your go-to resource for understanding the terminology used in this fast-paced and exciting industry. So let’s dive in and explore the A to Z of blockchain and cryptocurrency acronyms!

2FA: Two-factor authentication (Multi-factor authentication): A security measure that requires users to provide two or more forms of identification or verification in order to access their accounts or perform certain actions.

A

ACH – Automated Clearing House: A financial network in the United States that facilitates electronic transactions, including direct deposits, bill payments, and money transfers. ACH transfers are typically faster and less expensive than traditional paper checks.

ADAM – Association for Digital Asset Markets: A professional association and advocacy group that aims to promote fair and transparent practices in the digital asset industry. ADAM’s members include exchanges, custodians, and other service providers in the cryptocurrency ecosystem.

ADCA – Australian Digital Commerce Association: A non-profit organization in Australia that represents and supports businesses and individuals involved in the digital asset industry. ADCA advocates for the responsible growth and adoption of blockchain technology and cryptocurrencies in Australia.

ADI – Authorized Deposit-taking Institution: A type of financial institution in Australia that is licensed to take deposits from customers and provide banking services such as loans, credit cards, and savings accounts. ADIs are regulated by the Australian Prudential Regulation Authority (APRA).

ADL – Auto-deleveraging: A mechanism used by some cryptocurrency exchanges to automatically close out positions or trades that exceed a user’s margin or collateral. ADL is typically used to prevent losses or default in the event of market volatility or a sudden drop in the value of a particular asset.

ALT or Altcoin – Alternative Cryptocurrency: Any digital currency that is not Bitcoin. The term “altcoin” is often used to refer to any cryptocurrency other than Bitcoin, including popular coins like Ethereum, Litecoin, and Bitcoin Cash.

AMA – Ask Me Anything: A conversational format used on social media platforms like Reddit and Twitter, where a public figure or expert invites questions from the community and provides answers in real-time. AMAs are often used by cryptocurrency projects and industry leaders to engage with their audiences and share insights and perspectives.

AML – Anti-Money Laundering: A set of regulations and practices designed to prevent and detect the illegal use of financial systems to hide or disguise the proceeds of criminal activity. AML policies are an important part of the regulatory framework for the cryptocurrency industry and require exchanges and other service providers to implement strict know-your-customer (KYC) and reporting procedures.

AMM – Automated market maker: A type of decentralized exchange (DEX) mechanism that uses mathematical algorithms to set the price of assets based on the supply and demand of liquidity in the market. AMMs are used in popular DEXs like Uniswap and SushiSwap.

AON – All or None Order: A type of trading order that requires the entire order to be filled or none of it to be filled. AON orders are often used by traders who want to ensure that they receive the full quantity of a particular asset, rather than partial fills.

API – Application Programming Interface: A set of programming instructions and standards that enable software applications to communicate with each other. APIs are commonly used by cryptocurrency exchanges, wallets, and other service providers to provide access to their platforms and data to third-party developers.

APPT – Average profit per trade: A trading metric used to measure the average profitability of a trader’s positions over a given period of time. APPT is calculated by dividing the total profit from all trades by the total number of trades.

APR – Annual Percentage Rate: A standard measure used to calculate the interest rate on loans and other financial products over a one-year period. APR is often used to compare the cost of different loans or credit products.

APRA – The Australian Prudential Regulation Authority: is the primary regulator of banks, insurers, and other financial institutions in Australia. APRA’s mandate is to promote financial stability, competition, and efficiency, and to protect the interests of depositors, policyholders, and other consumers of financial services.

ASIC: An Application-Specific Integrated Circuit: A type of hardware designed for a specific use case, such as mining cryptocurrency. ASICs are often used to mine cryptocurrencies that are based on algorithms that are resistant to ASICs, such as Bitcoin’s SHA-256 algorithm.

ATH – All-Time High: refers to the highest price that a cryptocurrency or other asset has ever reached.

ATL – All-Time Low:  refers to the lowest price that a cryptocurrency or other asset has ever reached.

ATO – The Australian Taxation Office: The government agency responsible for administering the tax laws in Australia. The ATO is responsible for collecting taxes, processing tax returns, and enforcing tax laws.

ATR – Average True Range: A technical analysis indicator used to measure volatility in the markets. It is calculated by taking the average of the true range (the highest of the following: the distance between the current high and the current low, the distance between the previous close and the current high, and the distance between the previous close and the current low) over a specified time period.

ATS – An Alternative Trading System: A non-exchange trading venue that matches buyers and sellers of securities. ATSs are subject to regulation by the relevant financial authorities in the countries where they operate.

B

BB – Bollinger Band: A technical analysis tool that consists of two standard deviations above and below a moving average. It is used to measure volatility and identify potential buying and selling opportunities in the markets.

BCBS – The Basel Committee on Banking Supervision: A committee of banking supervisors that develops and promotes global standards for the regulation and supervision of banks and other financial institutions.

BECS – Bulk Electronic Clearing System: A payment system used in Australia for the electronic clearing of high-volume, low-value payments.

BEP-2 – Binance Chain Tokenization Standard: A token standard used on the Binance Chain blockchain. It specifies the rules for creating and managing tokens on the Binance Chain.

BEP-20 – Binance Chain Tokenization Standard: A token standard used on the Binance Smart Chain blockchain. It is similar to the ERC-20 token standard used on the Ethereum blockchain.

BFT – Byzantine Fault Tolerance: A consensus algorithm used in blockchain networks to ensure that the nodes in the network can reach an agreement on the state of the ledger, even in the presence of malicious actors.

BIP – Bitcoin Improvement Proposal: A proposal for improving the Bitcoin protocol. BIPs are submitted by members of the Bitcoin community and are subject to a review process before they are accepted or rejected.

BLS – Boneh-Lynn-Shacham: A digital signature algorithm used in blockchain networks to provide a high level of security and efficiency.

BP – Block Producer: A node on a blockchain network that is responsible for creating new blocks in the blockchain. BPs are typically selected through a consensus mechanism, such as Proof of Stake (PoS) or Delegated Proof of Stake (DPoS).

BTC – Bitcoin: The first and most well-known cryptocurrency. It is a decentralized digital currency that uses cryptography to secure and verify transactions on its blockchain.

BTD or BTFD – Buy The Dip (BTD) or Buy The F*****g Dip (BTFD): A slang term used in the cryptocurrency community to encourage buying an asset when its price has dropped significantly.

BTM – Bitcoin Teller Machine: A type of automated teller machine (ATM) that allows users to buy or sell Bitcoin and other cryptocurrencies using cash.

BUIDL: A slang term used in the cryptocurrency community to encourage building and creating on the blockchain, rather than just investing or trading. It is a purposeful misspelling of the word “build” for ironic effect.

 

C

CA – Certificate Authority: An entity that issues digital certificates to verify the identity of websites, servers, and individuals on the internet.

CAGR – Compound Annual Growth Rate: A measure of the annual growth rate of an investment over a certain period of time, taking into account the effects of compounding.

CAPM – Capital Asset Pricing Model: A financial model used to determine the expected return on investment based on the risk-free rate, the expected market return, and the asset’s beta.

CBDC – Central Bank Digital Currency: A digital currency issued by a central bank that operates as legal tender and is backed by the government.

CDO – Collateralized Debt Obligation: A type of financial instrument that pools together multiple loans and uses them as collateral to issue bonds to investors.

CDP – Collateralized Debt Position: A smart contract in which a user locks up collateral (usually cryptocurrency) in exchange for a loan in another cryptocurrency.

CEX – Centralized Exchange: A cryptocurrency exchange that operates on a centralized server and is controlled by a single entity.

CFD – Contract for Difference: A type of financial derivative that allows traders to speculate on the price movements of an underlying asset without actually owning the asset.

CFMM – Constant Function Market Maker: A type of automated market maker algorithm used in decentralized exchanges to maintain liquidity.

CFTC – Commodity Futures Trading Commission: An independent agency of the US government responsible for regulating futures, options, and swaps trading.

CLO – Collateralized Loan Obligation: A type of financial instrument that pools together multiple loans and uses them as collateral to issue bonds to investors.

CMC – CoinMarketCap: A website that provides information on the market capitalization, price, and trading volume of cryptocurrencies.

CME – Chicago Mercantile Exchange: One of the world’s largest options and futures exchanges, which offers Bitcoin futures contracts.

CPU – Central Processing Unit: The primary component of a computer that carries out instructions of a computer program.

CSV – Comma-Separated Values: A file format used to store data in a tabular form, where each row represents a record and each column represents a field.

CT – Crypto Twitter: A community of Twitter users who discuss cryptocurrency and blockchain-related topics.

D

DAG – Directed Acyclic Graph: A type of distributed ledger technology (DLT) used in certain blockchain networks. In contrast to a linear blockchain, a DAG uses a directed graph to represent transactions, where each new transaction references previous ones, forming a directed acyclic graph. This allows for faster transaction times and increased scalability.

DAICO – Decentralized Autonomous Initial Coin Offering: A fundraising method that combines the benefits of an ICO with the added security and transparency of a decentralized autonomous organization (DAO). DAICOs aim to address the issue of ICO scams by allowing investors to control the release of funds based on predetermined conditions and milestones.

DAO – Decentralized Autonomous Organization: An organization that is run by a set of rules encoded as computer programs on a blockchain. DAOs operate in a decentralized and transparent manner, allowing for more equitable decision-making and governance.

Dapp – Decentralized Application: An application that runs on a decentralized network, such as a blockchain. DApps are designed to be trustless, meaning that they do not require a central authority to function, and are open-source, meaning that anyone can contribute to their development.

dBFT – Delegated Byzantine Fault Tolerance: A consensus algorithm used in certain blockchain networks that combines the benefits of both proof-of-work (PoW) and proof-of-stake (PoS) algorithms. dBFT uses a small group of trusted nodes, known as delegates, to validate transactions and reach consensus.

DCA – Dollar-Cost Averaging: An investment strategy where an investor buys a fixed dollar amount of an asset at regular intervals, regardless of the asset’s price. DCA is a way to mitigate the risk of market volatility and allows for long-term investment in an asset.

DDG – Due Diligence Questionnaire: A document used by investors to gather information about a company or project before making an investment. A DDQ typically includes questions related to the company’s management team, financials, and legal compliance.

DdoS – Distributed Denial-of-Service: A cyber attack where multiple compromised systems are used to flood a network or server with traffic, making it unavailable to users. DDoS attacks are often used to extort money from companies or to disrupt online services.

DeFi – Decentralized Finance: refers to a financial system built on top of blockchain technology that aims to create a more open, transparent, and accessible financial ecosystem. DeFi applications include lending platforms, decentralized exchanges, and synthetic asset protocols.

DEX – Decentralized Exchange is a cryptocurrency exchange that operates on a decentralized network, such as a blockchain. DEXs allow for peer-to-peer trading without the need for a central authority to act as an intermediary.

DLC – Discreet Log Contract: A smart contract protocol that enables two parties to enter into a financial agreement without revealing the details of the agreement to the blockchain network. This allows for more private and efficient transactions.

DLT – Distributed Ledger Technology: A type of database that is spread across multiple nodes or computers. DLTs are used in certain blockchain networks and allow for decentralized and transparent record-keeping.

DOJ – Department of Justice: A government agency responsible for enforcing federal laws in the United States. The DOJ has played a role in regulating certain aspects of the cryptocurrency industry.

DoS – Denial of Service: A cyber attack where a network or server is flooded with traffic, making it unavailable to users. Unlike a DDoS attack, a DoS attack is typically carried out by a single system or machine.

DpoS – Delegated Proof of Stake: A consensus algorithm used in certain blockchain networks where users can vote for delegates to validate transactions and secure the network. DPoS is a more energy-efficient alternative to traditional proof-of-work (PoW) algorithms.

DYOR – Do Your Own Research: A common phrase used in the cryptocurrency and blockchain industry. It means that one should conduct their own due diligence and research before investing in a particular project or asset, instead of relying solely on the opinions of others.

E

E2EE – End-to-end encryption: A security measure used in communication systems where data is encrypted before it leaves the sender’s device and decrypted only after it reaches the intended recipient’s device. This ensures that the data cannot be intercepted or read by any third party during transmission.

ECC – Elliptic-Curve Cryptography: A type of public-key cryptography used to secure communication and transactions in cryptocurrencies. It uses the mathematical properties of elliptic curves to generate secure and unique private and public keys.

ECDS – Elliptic Curve Digital Signature Algorithm: A type of digital signature algorithm that uses elliptic curve cryptography to ensure authenticity, integrity, and non-repudiation of digital messages.

EEA – Enterprise Ethereum Alliance: is a nonprofit organization that aims to promote the adoption of Ethereum blockchain technology in enterprise settings by developing industry standards, facilitating collaboration between members, and educating businesses on the benefits of Ethereum.

EF – Ethereum Foundation: A Swiss nonprofit organization that oversees the development of the Ethereum blockchain protocol, funds research, and development, and supports the Ethereum community.

EIP – Ethereum Improvement Proposal: A proposal made by developers or members of the Ethereum community to improve the Ethereum blockchain protocol. EIPs are submitted for review and consideration by the Ethereum Foundation and can be accepted or rejected.

EIP-1559 – Ethereum Improvement Proposal 1559: A major upgrade to the Ethereum blockchain protocol that aims to improve the user experience, reduce network congestion, and stabilize transaction fees by introducing a new fee-burning mechanism and a base fee algorithm.

EIPIP – EIP Improvement Proposal: A term used to refer to a proposal that seeks to improve a previously submitted Ethereum Improvement Proposal.

ELI5 – Explain It Like I’m 5: A term used in the cryptocurrency and blockchain space to request a simple explanation for a complex topic or concept, in a way that a five-year-old child would understand.

EM – Emerging Market: A term used to describe developing economies that are experiencing rapid growth and industrialization, with a high potential for investment opportunities.

EMA – Exponential Moving Average: A technical analysis indicator used to track the price movement of an asset by calculating the average price over a specified time period, with more weight given to recent prices.

ENS – Ethereum Name Service: A decentralized domain name service built on the Ethereum blockchain that allows users to register human-readable domain names for their Ethereum addresses.

EOA – Externally Owned Account: A type of Ethereum account that is controlled by a private key, typically owned by an individual or organization, and can be used to send and receive Ether and other Ethereum-based tokens.

ERC – Ethereum Request for Comments: A protocol used to propose and discuss technical standards for the Ethereum blockchain.

ERC-20 – Token standard for Ethereum: A technical standard used for smart contracts on the Ethereum blockchain that defines a set of rules for the creation and management of tokens.

ERC-721 – Token standard for NFT (non-fungible tokens): A technical standard used for creating unique, non-interchangeable digital assets, such as collectibles or art, on the Ethereum blockchain.

ESMA – European Securities and Markets Authority: A European Union financial regulatory agency that works to ensure the integrity, transparency, and stability of the financial markets in the EU.

ETF – Exchange-Traded Fund: A type of investment fund that trades on a stock exchange and tracks the performance of an underlying asset, such as stocks, bonds, or commodities.

ETH – Ether: The native cryptocurrency of the Ethereum blockchain, used to pay for transaction fees and to execute smart contracts.

ETP – Exchange-Traded Product: A type of financial product that trades on a stock exchange and tracks the performance of an underlying asset, such as a commodity or a basket of assets.

EVM – Ethereum Virtual Machine: A software environment in which smart contracts are executed on the Ethereum blockchain, providing a secure and deterministic way to run decentralized applications.

F

FA – Fundamental Analysis: A method of evaluating an asset by analyzing its intrinsic value through examining financial and economic factors such as revenue, earnings, and industry trends.

FATF – Financial Action Task Force: An intergovernmental organization that sets global standards and guidelines for combating money laundering, terrorist financing, and other threats to the integrity of the global financial system.

FDIC – Federal Deposit Insurance Corporation: A US government agency that provides insurance to depositors in case their bank fails.

FIAT – Conventional government-issued currency: Refers to money that is not backed by a physical commodity such as gold, but by the government that issued it.

FinCEN – Financial Crimes Enforcement Network: A bureau of the US Treasury Department that combats money laundering, terrorist financing, and other financial crimes by collecting, analyzing, and disseminating financial intelligence.

FINRA – Financial Industry Regulatory Authority: A non-governmental organization that regulates the securities industry in the US, including brokers, broker-dealers, and trading platforms.

FOK – Fill or Kill: A type of trade order where the entire order must be filled immediately or the order is canceled.

FOMO – Fear of Missing Out: A psychological state in which individuals fear missing out on a potentially profitable or exciting opportunity.

FOSS – Free and Open Source Software: Software that is distributed under a license that allows users to access and modify the source code for their own use.

FPGA – Field-programmable gate array: A type of integrated circuit that can be reprogrammed after manufacturing to perform specific functions, often used in mining cryptocurrencies.

FSA – Financial Services Agency: The Japanese regulatory agency that oversees banking, securities, and exchange markets in Japan.

FSB – Financial Stability Board: An international body that monitors and makes recommendations about the global financial system.

FSOC – Financial Stability Oversight Council: A US government organization that monitors and addresses risks to the stability of the US financial system.

FUD – Fear, Uncertainty and Doubt: A tactic used in marketing and propaganda to create a sense of fear or doubt in consumers or the public.

FUDster – A person who spreads Fear, Uncertainty and Doubt: A term used to describe someone who spreads negative or false information about a particular cryptocurrency or project.

FX – Foreign exchange: The market for trading currencies of different countries.

G

GHOST – Greediest Heaviest Observed Subtree: A consensus mechanism that was proposed as an alternative to Bitcoin’s original consensus mechanism, Proof of Work (PoW). GHOST is designed to reduce block times and increase the throughput of a blockchain network by allowing stale blocks to be included in the blockchain. This approach reduces the risk of orphaned blocks and allows for faster confirmations.

GMRA – Global Master Repurchase Agreement: A standard agreement used in the financial industry for the sale and repurchase of securities. It is a legal document that outlines the terms and conditions of the transaction, including the type of securities involved, the price, the maturity date, and other important details.

GPU – Graphics Processing Unit: A specialized type of processor that is designed to handle complex graphics and visual processing tasks. In the context of blockchain and cryptocurrency, GPUs are often used to mine cryptocurrencies such as Bitcoin and Ethereum.

GRANDPA – GHOST-based Recursive ANcestor Deriving Prefix Agreement: A consensus mechanism used in the Polkadot blockchain network. GRANDPA is designed to achieve finality in a more efficient and secure manner than traditional consensus mechanisms such as Proof of Work or Proof of Stake.

H

HDD – Hard disk drive: A type of storage device that uses spinning disks to store data. In the context of blockchain and cryptocurrency, HDDs are often used to store blockchain data and other related files.

HF – Hard Fork: A significant change to a blockchain protocol that is not backward-compatible. Hard forks can be contentious and often result in the creation of a new blockchain network, such as Ethereum Classic, which was created as a result of a hard fork in the Ethereum network.

HFT – High-frequency trading: A type of trading that uses advanced algorithms and technology to execute trades at very high speeds. HFT is often used by large financial institutions to gain a competitive advantage in the market.

HODL – Hold On for Dear Life: A term used in the cryptocurrency community to encourage long-term investment in a particular cryptocurrency. The term is often associated with Bitcoin and has become a popular meme in the community.

HPS – Hashes per Second: A measure of the processing power of a blockchain network. It refers to the number of cryptographic hashes that can be computed by the network in one second.

HQLA – High-quality liquid assets: are assets that can be easily converted into cash in a short period of time without significant loss of value. In the context of banking and finance, HQLA is often used to meet regulatory requirements for liquidity.

HSM – Hardware Security Module: A specialized hardware device that is used to securely store and manage cryptographic keys and other sensitive information. HSMs are often used in the context of blockchain and cryptocurrency to enhance security and protect against hacking and other attacks.

HTLC – Hashed Timelock Contract: A smart contract used in blockchain networks to enable trustless and secure cross-chain transactions. HTLCs use a combination of cryptographic hashes and time locks to ensure that the transaction is only executed if certain conditions are met.

HW – Hardware Wallet: A type of cryptocurrency wallet that stores private keys on a secure hardware device. HW wallets are designed to provide enhanced security compared to other types of wallets, as the private keys are never exposed to the internet or other potential vulnerabilities.

I

iBFT – Istanbul Byzantine Fault Tolerance: A consensus algorithm used in the Ethereum blockchain after the Istanbul hard fork. It is an improvement on the earlier Byzantine Fault Tolerance (BFT) algorithm and is designed to increase transaction speed and reduce network latency.

IBO – Initial Bounty Offering: A fundraising mechanism similar to an ICO where participants receive tokens or coins in exchange for completing specific tasks or challenges.

ICMA – International Capital Market Association: A trade association that represents the global capital market industry. It provides standards, guidelines, and market data to its members and advocates for the interests of the capital market industry.

ICO – Initial Coin Offering: A type of fundraising where a company issues new cryptocurrency tokens or coins in exchange for funding. Investors buy these tokens with other cryptocurrencies or fiat currency, and the company uses the proceeds to develop a new project or platform.

IDO – Initial DEX Offering: is similar to an ICO but takes place on a decentralized exchange (DEX) instead of a centralized one. This allows for greater transparency and eliminates the need for intermediaries.

IEO: Initial Exchange Offering: A type of fundraising where a company issues new tokens or coins on a centralized exchange. This allows the exchange to handle the sale and distribution of the tokens, which can help with regulatory compliance and reduce the risk of fraud.

IFO – Initial Future Offering: A type of fundraising where a company issues futures contracts that are settled in their own cryptocurrency. This allows investors to speculate on the future value of the company’s cryptocurrency without actually owning it.

IICO – Interactive Initial Coin Offering: A type of ICO that uses smart contracts to create a more dynamic and interactive fundraising process. This can include features like variable pricing or tiered rewards for different levels of investment.

IPFS – InterPlanetary File System: A decentralized storage system that allows files to be stored and accessed on a distributed network of computers. This can improve file redundancy and reduce the risk of data loss or censorship.

IRA – Individual Retirement Account: A type of investment account that allows individuals to save for retirement while receiving tax benefits. Some cryptocurrency platforms offer IRA accounts that allow investors to hold cryptocurrencies within their retirement accounts.

IRS – Internal Revenue Service: The US government agency responsible for collecting taxes. Cryptocurrency investments are subject to taxation, and the IRS has issued guidance on how to report cryptocurrency transactions on tax returns.

ITM – In the money: A term used in options trading to describe an option that has intrinsic value. This means that the option’s strike price is better than the current market price, making it profitable to exercise.

ITO – Initial Token Offering: A type of fundraising where a company issues new tokens on an existing blockchain instead of creating a new one. This can reduce the development costs and time needed to launch a new platform.

 

J

JOMO – Joy of Missing Out: A play on the FOMO acronym that describes the feeling of happiness or relief that comes from not participating in a particular activity or investment.

 

K

KFTC – Korea Fair Trade Commission: A regulatory body in South Korea that aims to protect consumer interests and promote fair competition in the market.

KYC: Know Your Customer: A regulatory requirement for businesses to verify and authenticate the identity of their clients/customers.

L

L1 – Layer One: refers to the underlying blockchain infrastructure, including the consensus mechanism, network protocol, and block validation.

L2: Layer Two: refers to any additional layer built on top of the L1 infrastructure to enhance the scalability, speed, and functionality of the blockchain network.

Lambo: A term used in the cryptocurrency community to express the hope of becoming rich enough to afford a Lamborghini.

LBP – Liquidity Bootstrapping Pool: A mechanism that ensures a fair distribution of tokens while allowing for price discovery and liquidity provision.

LCR – Liquidity Coverage Ratio: A regulatory requirement for financial institutions to hold sufficient liquid assets to cover their short-term obligations.

LP – Liquidity Provider: An entity that adds liquidity to an exchange or market by providing assets for buying and selling.

LpoS – Liquid Proof of Stake: A consensus mechanism used in some blockchain networks that combines the benefits of PoS (Proof of Stake) and PoW (Proof of Work) to enhance security, speed, and scalability.

LN – Lightning Network: A Layer Two solution that enhances the speed and scalability of Bitcoin by allowing for off-chain transactions.

LND – Lightning Network Daemon: An open-source software that enables the use of the Lightning Network on the Bitcoin blockchain.

LIC – Listed Investment Company: A type of investment vehicle that is listed on a stock exchange and invests in other companies’ securities.

LFT2 – Loop Fault Tolerance 2.0: A consensus algorithm used in the Harmony blockchain that ensures high throughput and scalability while maintaining security and decentralization.

LIC – Listed Investment Company: A type of investment fund that is traded on a stock exchange. It is a closed-end fund that issues a fixed number of shares and invests in a diverse range of assets.

LN – Lightning Network: A Layer 2 payment protocol that is built on top of the Bitcoin blockchain. It allows for faster and cheaper transactions by creating payment channels between users, without the need for on-chain transactions.

LND – Lightning Network Daemon: The software implementation of the Lightning Network. It allows users to set up and manage payment channels and send transactions on the Lightning Network.

LP – Liquidity Provider: A person or entity that provides liquidity to a market by buying and selling assets. In the cryptocurrency market, liquidity providers are often market makers who profit from the difference between the buy and sell price.

LpoS – Liquid Proof of Stake: A consensus mechanism used in some blockchain networks to validate transactions and create new blocks. In LPoS, validators hold a certain amount of cryptocurrency as a stake, which is used as collateral to validate transactions and create new blocks on the blockchain.

M

MACD – Moving Average Convergence Divergence: A technical analysis tool used to identify trends and momentum in financial markets. It consists of two moving averages, the MACD line, and the signal line, which are used to generate buy and sell signals.

Market Cap – Market Capitalization: The total value of a company’s outstanding shares of stock. In the cryptocurrency world, it refers to the total market value of a particular cryptocurrency.

MAST – Merkelised Abstract Syntax Tree: A proposed upgrade to the Bitcoin protocol that allows for more complex smart contracts and increased privacy.

MBS – Mortgage-backed securities: Type of financial instruments that are created by pooling together mortgages and selling them to investors as securities.

MBT – Micro Bitcoin Futures: A type of futures contract offered by the CME Group that allows traders to speculate on the price of Bitcoin with smaller contract sizes than traditional futures contracts.

mBTC – Millibitcoin: A unit of Bitcoin currency equal to one-thousandth of a Bitcoin (0.001 BTC).

MCAP – Market Capitalization: A financial metric that represents the total value of a company or asset based on the current market price and the total outstanding shares or units.

MCD – Multi-collateral Dai: A decentralized stablecoin system built on the Ethereum blockchain that allows users to collateralize various cryptocurrencies in exchange for the Dai stablecoin.

MoE – Medium of Exchange: A type of asset or currency that is widely accepted as payment for goods and services.

MPC – Multi-party computation: A cryptographic technique that enables multiple parties to jointly perform a computation on their private data without revealing their inputs to each other.

mREIT – Mortgage Real Estate Investment Trust: A type of investment vehicle that pools funds from multiple investors to invest in real estate mortgages.

MTO – Micro Token Offering or Milestone Token Offering: two different types of fundraising models used by blockchain-based projects to raise funds by selling their native tokens or digital assets to interested investors.

MVRV – Market Value to Realised Value: A ratio used to evaluate the profitability of Bitcoin investments by comparing the current market value of Bitcoin to the realized value of all previously mined Bitcoin.

 

N

NAV – Net Asset Value: A financial term used to describe the value of a fund’s or investment company’s assets minus its liabilities, divided by the number of outstanding shares.

NEP – NEO Enhancement Proposal: A proposal for a change or improvement to the NEO blockchain. It is similar to a BIP (Bitcoin Improvement Proposal) or EIP (Ethereum Improvement Proposal).

NFT – Non-Fungible Token: A type of cryptocurrency token that represents a unique asset, such as a digital artwork or collectible, that cannot be exchanged for another token on a one-to-one basis because each NFT is unique.

NONCE – Number Only Once: A random number that is generated by a miner in the process of solving a mathematical puzzle in order to add a new block to the blockchain.

NpoS – Nominated Proof of Stake: A consensus algorithm used by the Polkadot network, in which token holders nominate validators who are then randomly selected to create new blocks and validate transactions.

NPP – New Payments Platform: An Australian payments system that allows for real-time bank transfers between different banks and financial institutions.

NVT – Network Value to Transactions: A ratio that is used to evaluate the valuation of a cryptocurrency network. It is calculated by dividing the network’s market capitalization by the total value of transactions on the network over a specific period of time.

O

OCO – One-Cancels-Other: A type of trading order that allows traders to place two orders at the same time, one to buy and one to sell, with the stipulation that if one order is executed, the other will be automatically canceled.

OFAC – Office of Foreign Assets Control: An agency of the US Treasury Department that is responsible for enforcing economic sanctions against countries, individuals, and entities that are deemed to be a threat to US national security.

OHLC – Open High Low Close: A charting technique used in technical analysis to represent the price movement of an asset over a period of time. It shows the opening, high, low, and closing prices of the asset for each time period.

OTC – Over-the-Counter: A type of trading that takes place directly between two parties, outside of an exchange or regulated market. It is often used for large transactions that may not be able to be executed on a traditional exchange.

OTM – Out of the money: An option contract that has no intrinsic value, meaning that the option holder would not make a profit if the option were exercised at the current market price.

P

P2E – Play-to-Earn: A concept where gamers can earn cryptocurrency or other digital assets while playing video games. This is done by integrating blockchain technology and cryptocurrency into the game’s economy, allowing players to buy, sell, and trade in-game items using digital currencies.

P2EP – Pay to Endpoint: A Bitcoin protocol improvement that allows users to send funds directly to a particular address without revealing the entire chain of previous transactions. This feature improves privacy and reduces the risk of third-party surveillance.

P2P – Peer-to-Peer: refers to a network architecture where computers or nodes communicate and exchange information directly with each other without intermediaries. In the context of blockchain and cryptocurrency, P2P networks are used to facilitate transactions and maintain the integrity of the blockchain.

P2SH – Pay to Script Hash: A Bitcoin protocol improvement that allows users to send funds to a script rather than to a public key. This enables more complex transaction scripts and increases the flexibility of the Bitcoin protocol.

P2TR – Pay to Taproot: A proposed Bitcoin protocol upgrade that improves the privacy and efficiency of transactions by enabling more complex smart contracts and multi-signature transactions.

P2WPKH – Pay to Witness Public Key Hash: A Bitcoin transaction format that enables the use of Segregated Witness (SegWit) technology. This improves the efficiency and scalability of the Bitcoin network by separating transaction signatures from the transaction data.

P2WSH – Pay to Witness Script Hash: A Bitcoin transaction format that allows for even more complex transaction scripts and smart contracts than P2SH. It also uses SegWit technology to improve network efficiency.

Pbft – Practical Byzantine Fault Tolerance: a consensus algorithm used in distributed systems, including blockchain networks. It allows a network of nodes to reach a consensus on a single state without relying on a central authority, even in the presence of faulty or malicious nodes.

PGP – Pretty Good Privacy: A data encryption and decryption program used for secure communication over the internet. It uses a combination of public key and symmetric key cryptography to protect data privacy and authenticity.

PIPE – Private investment in public equity: refers to a type of fundraising where a private company sells shares of its stock to a select group of institutional investors rather than to the general public.

PKI – Public Key Infrastructure: A system used to manage public key encryption and digital certificates. It includes a set of protocols and procedures for creating, distributing, and revoking public key certificates, which are used to authenticate users and secure communication.

PnD – Pump-and-Dump scheme: A fraudulent trading strategy used to manipulate the price of a security or asset. It involves inflating the price of an asset through false or misleading information and then selling it for a profit when the price reaches a certain level.

PoA – Proof of Authority: A consensus mechanism used in some blockchain systems, where a small group of pre-selected nodes or validators are given the authority to validate transactions and create new blocks. This is different from Proof of Work (PoW) or Proof of Stake (PoS), where anyone can participate in the validation process.

PoB – Proof of Burn: A consensus mechanism where participants destroy or “burn” a certain amount of cryptocurrency to prove their commitment to the network. This reduces the available supply of the cryptocurrency and thus increases its value.

PoD – Proof of DevelopeR: A consensus mechanism where developers are the validators, and they demonstrate their commitment to the network by making contributions such as code improvements or bug fixes.

PoS – Proof of Stake: A consensus mechanism where validators are chosen based on the amount of cryptocurrency they hold and “stake” in the network. Validators are then chosen at random to create new blocks and validate transactions. This is different from Proof of Work (PoW), where validators are chosen based on their computing power.

PoW – Proof of Work: A consensus mechanism where validators compete to solve complex mathematical problems in order to create new blocks and validate transactions. This requires significant computing power, and the first validator to solve the problem is rewarded with newly-created cryptocurrency.

PSD2 – Payment Services Directive 2: An European Union regulation that aims to increase competition and innovation in the payment services industry while ensuring the security of transactions and protecting consumers.

PWA – Progressive Web Application: A type of software application that is delivered over the web but provides a user experience similar to that of a native mobile or desktop application.

R

REIT – Real Estate Investment Trust: A type of investment vehicle that invests in real estate properties and distributes the income generated by those properties to investors.

REKT: is a slang term used in the cryptocurrency community to describe someone who has suffered significant losses on their investments.

REST – Representational State Transfer: A software architectural style that defines a set of constraints to be used when creating web services. RESTful web services are designed to be simple, lightweight, and scalable.

RIXO – Reverse Initial Coin Offering: A fundraising model where investors propose a project and set a funding target. If the target is met, the project is launched, and investors receive a proportional share of the newly-created cryptocurrency.

RITS – Reserve Bank Information & Transfer System: The real-time settlement system used by the Reserve Bank of Australia for high-value payments between banks and other financial institutions.

ROI – Return on Investment: A metric used to measure the profitability of an investment. It is calculated by dividing the profit or loss of an investment by its cost, and expressing the result as a percentage.

RSA – Rivest–Shamir–Adleman: A widely-used encryption algorithm that is used to secure communications and data storage. It is named after its inventors Ron Rivest, Adi Shamir, and Leonard Adleman.

RSI – Relative Strength Index: A technical indicator used in trading to measure the strength of a security’s price action. It is calculated by comparing the average gains and losses of a security over a specified period of time.

S

SaaS – Software as a Service: A software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet.

SAFT – Simple Agreement for Future Tokens: A type of investment contract used in initial coin offerings (ICOs) to allow investors to invest in a project in exchange for future tokens that will be delivered once the project is completed.

SATS – Satoshis: The smallest unit of a bitcoin, named after the pseudonymous creator of bitcoin, Satoshi Nakamoto. One Satoshi is equal to 0.00000001 BTC.

SC – Smart Contract: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist on a decentralized blockchain network.

SEC – Securities and Exchange Commission: A US government agency that regulates securities markets and protects investors.

SegWit – Segregated Witness: A protocol upgrade for the Bitcoin network that separates the digital signature data (witness data) from the transaction data in a block, resulting in more efficient use of block space and improved scalability.

SF – Soft Fork: A type of protocol upgrade where only a majority of the mining hash power is required to adopt the new rules.

SHA – Secure Hash Algorithm: A cryptographic hash function used by Bitcoin and other cryptocurrencies to secure transactions and blocks in the blockchain.

SMA – Simple Moving Average: A technical analysis indicator that calculates the average price of a security over a specified period of time by constantly updating the average price as new data is added and old data is dropped.

Smpc – Secure Multi-Party Computation: A cryptographic protocol that enables multiple parties to compute a function collaboratively without revealing their inputs to each other.

SMR – State Machine Replication: A technique for replicating a distributed system across multiple servers, ensuring that each server processes the same sequence of operations in the same order, and providing fault tolerance and scalability.

SMSF – Self-Managed Superannuation Fund: A type of retirement savings account in Australia that is managed by the account holder and offers a high degree of flexibility and control over investment decisions.

SNARKs – Succinct Non-Interactive Arguments of Knowledge: A cryptographic technique used to prove the validity of a statement without revealing any additional information beyond the statement itself. SNARKs are used in privacy-focused cryptocurrencies like Zcash to hide transaction details while still allowing verification of the transaction’s validity.

SoV – Store of Value: A term that describes a digital asset that is used primarily as a long-term investment vehicle or as a way to preserve wealth over time, similar to gold or other precious metals.

SPAC – Special Purpose Acquisition Company: A type of investment vehicle that is created specifically for the purpose of acquiring or merging with another company, typically within a specified timeframe.

SSD – Solid-State Drive: A type of computer storage device that uses solid-state memory to store data, instead of traditional magnetic disks.

SSL – Secure Sockets Layer: A security protocol used to establish a secure and encrypted connection between a web server and a web browser.

STARKs – Scalable Transparent Arguments of Knowledge: A type of cryptographic proof system that is used to verify the integrity of data without revealing any sensitive information.

STO – Security Token Offering: A type of fundraising mechanism in which companies issue digital tokens that represent ownership or interest in a real-world asset or financial instrument, such as equity or debt.

T

TA – Technical Analysis: A method used by traders and investors to analyze market trends and make investment decisions based on the historical price and volume data of a given asset.

TARP – Troubled Asset Relief Program: A program created by the U.S. government in response to the 2008 financial crisis, which provided financial assistance to banks and other financial institutions.

TBC – Token Bonding Curve: A mechanism used to determine the price of a digital asset based on the supply and demand of the market, where the price of the asset increases as more people buy it and decreases as more people sell it.

TCR – Token Curated Registry: A type of decentralized platform that uses a community-based system to curate and verify information, such as a list of reputable vendors or service providers.

TEE – Trusted Execution Environment: A hardware-based security technology that creates a secure and isolated environment for running sensitive applications and data, such as cryptographic keys and biometric information.

TGA – Treasury General Account: A financial acronym used in the blockchain and cryptocurrency field that refers to the bank account where the government deposits and withdraws its funds.

TLS – Transport Layer Security: A security protocol that ensures the confidentiality and integrity of data exchanged over a computer network. It is commonly used in the blockchain and cryptocurrency field to secure communication between nodes and wallets.

TLT – Think Long Term: A conversational acronym that implies taking a strategic, long-term view of a situation, rather than focusing on short-term gains.

TOR – The Onion Router: A network of servers that anonymizes internet traffic and hides the user’s identity. It is commonly used in the blockchain and cryptocurrency field to maintain privacy and anonymity while using the internet.

TPS – Transactions Per Second: An architecture acronym that measures the processing speed of a blockchain network. It is an important metric for evaluating the scalability of a blockchain protocol.

TVL – Total Value Locked: An Ethereum acronym that represents the total amount of cryptocurrency that is currently locked in smart contracts on the Ethereum blockchain.

Tx – Transaction: A financial acronym that refers to the transfer of cryptocurrency from one address to another on a blockchain network.

TxID – Transaction Identification: A financial acronym that refers to a unique identifier assigned to a transaction on a blockchain network. It can be used to track and verify the status of a transaction.

TZIP – Tezos Interoperability Proposal: Standards acronym that refers to a proposal for improving the interoperability of the Tezos blockchain with other blockchain networks.

U

UASF – User-Activated Soft Fork: A Bitcoin acronym that refers to a soft fork in which the nodes of the network activate the fork through user consensus rather than miner consensus.

Ubtc – MicroBitcoin: A financial acronym that refers to one-millionth of a bitcoin (0.000001 BTC).

UI – User Interface: A software acronym that refers to the graphical user interface (GUI) of a program or application.

UoA – Unit of Account: A financial acronym that refers to the basic unit of measurement for a currency or asset.

UTC – Coordinated Universal Time: A miscellaneous acronym that refers to the primary time standard by which the world regulates clocks and time.

UTXO – Unspent Transaction Output: An architecture acronym that refers to the amount of cryptocurrency that is unspent and available for use in a transaction.

UX – User Experience: A software acronym that refers to the overall experience and satisfaction of a user while using a program or application.

UXTO – Unspent Transaction Output: A financial acronym that refers to the amount of cryptocurrency that remains unspent after a transaction.

V

vAMM – Virtual Automated Market Maker: A decentralized trading platform that uses an algorithm to create a market for users to buy and sell digital assets.

VASP – Virtual Asset Service Provider: A company or individual that offers services related to virtual assets, such as cryptocurrency exchanges, wallet providers, and other similar businesses.

VC – Venture Capital: A type of financing where investors provide funding to early-stage, high-potential companies in exchange for an equity stake in the company.

VDF – Verifiable Delay Function: A cryptographic algorithm that allows for the creation of a delay that can be verified by others without requiring the use of a trusted third party.

VIX – Volatility Index: A measure of the market’s expectation of volatility over the next 30 days.

VPN – Virtual Private Network: A secure connection that allows users to access the internet securely and privately.

VRF – Verifiable Random Function: A function that generates random numbers that can be verified by others without requiring the use of a trusted third party.

VWAP – Volume-Weighted Average Price: A trading benchmark used to assess the execution efficiency of trades.

W

WASM – Web Assembly: A binary instruction format for a stack-based virtual machine designed for web browsers.

WBTC: Wrapped BitcoiN: An ERC-20 token on the Ethereum blockchain that represents Bitcoin (BTC) on a 1:1 basis. It is used to enable Bitcoin to be traded on decentralized exchanges and other Ethereum-based protocols that support ERC-20 tokens.

WETH – Wrapped Ether: A token that represents Ether (ETH) on the Ethereum network, enabling it to be traded and used in decentralized applications (dApps).

WIF – Wallet Import Format: A standard format used to represent private keys for Bitcoin and other cryptocurrencies. It is a string of letters and numbers that can be easily copied and pasted or scanned to import a private key into a wallet.

WP – Whitepaper: A document that outlines the technical details and proposed implementation of a new blockchain or cryptocurrency project.

X

XRP – Ripple: A digital currency and payment protocol designed for fast and low-cost international money transfers. It is used by financial institutions and payment providers to settle cross-border payments in real-time.

XLM – Stellar Lumens: The native digital currency of the Stellar blockchain. It is used for fast and low-cost international money transfers and also supports the creation and trading of other digital assets.

XTZ – Tezos: A decentralized blockchain platform that allows developers to create and deploy smart contracts and decentralized applications (dapps). It uses a proof-of-stake consensus mechanism to secure the network.

 

Y

YAM – Yam Finance: A decentralized finance (DeFi) protocol that allows users to earn rewards by providing liquidity to the platform. It uses an elastic supply mechanism that automatically adjusts the total supply of YAM tokens in response to changes in demand.

YFI: yearn.finance: A decentralized finance (DeFi) protocol that automates yield farming by moving funds between different liquidity pools in order to maximize returns for users.

YTD – Year to Date: The period of time from the beginning of the current year up to the present day.

 

Z

ZEC – Zcash: A privacy-focused digital currency that uses advanced cryptography to protect the privacy of its users. Transactions on the Zcash blockchain can be shielded or transparent, depending on user preferences.

ZIL – Zilliqa: A high-throughput blockchain platform that uses sharding to improve scalability and transaction throughput. It is designed to support smart contract development and decentralized application (dapp) deployment.

ZK – Zero Knowledge: A cryptographic protocol that allows for secure communication between two parties without revealing any information other than the fact that communication took place.

ZKP – Zero-Knowledge Proof: A cryptographic proof that allows for the verification of the authenticity of a statement without revealing any additional information other than the fact that the statement is true.

zkSNARK – Zero-Knowledge Succinct Non-Interactive Argument of Knowledge: A type of zero-knowledge proof that allows for the verification of the authenticity of a statement without revealing any additional information other than the fact that the statement is true, and it does so in a very efficient and succinct way. It is used in various blockchain applications, such as privacy-preserving transactions and identity verification.

ZRX – 0x Protocol: An open protocol for decentralized exchange (DEX) on the Ethereum blockchain. It allows for the peer-to-peer exchange of ERC-20 tokens without the need for a centralized intermediary, such as a cryptocurrency exchange.

 

Blockchain and cryptocurrency have taken the world by storm in recent years. As this innovative technology and new financial system continues to grow and evolve, it’s essential to have a clear understanding of the terminology and concepts involved.

This dictionary aims to provide a comprehensive guide to the various terms, acronyms, and definitions in the blockchain and cryptocurrency space. 

Whether you’re a seasoned blockchain and cryptocurrency enthusiast or just starting, this dictionary will help you navigate the complex and ever-changing landscape of this exciting new field. With clear, concise definitions and explanations, this resource will help you gain a deeper understanding of blockchain and cryptocurrency and stay up-to-date on the latest developments.

Whether you’re exploring the potential of blockchain technology, looking to invest in cryptocurrency, or simply curious about this new field, this dictionary is an essential resource to have at your fingertips.

You also can check: A Blockchain And Crypto Glossary for Beginners A-Z _The Most Comprehensive Terminology

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