A Blockchain And Crypto Glossary for Beginners A-Z _ The Most Comprehensive Terminology
A
- AML: Anti-money laundering, a set of regulations and procedures designed to prevent the use of cryptocurrencies for illegal activities such as money laundering and terrorism financing.
- ASIC: Application-specific integrated circuit, a type of hardware designed to perform a specific task, such as mining cryptocurrencies.
- Address: A unique identifier that represents the destination of a cryptocurrency transaction.
- Airdrop: A distribution of free cryptocurrency to a particular community or wallet address.
- Altcoin: Any cryptocurrency other than Bitcoin.
- Atomic Swap: A type of decentralized exchange that allows for the peer-to-peer exchange of cryptocurrencies without the need for a central authority.
- Avalanche: A blockchain platform that uses a consensus mechanism called Avalanche to achieve fast and secure transactions.
B
- BFT: Byzantine Fault Tolerance, a characteristic of some blockchain networks that enables them to function even in the presence of faulty or malicious nodes.
- BIP: Bitcoin Improvement Proposal, a document that outlines changes to the Bitcoin protocol.
- Binance: One of the largest cryptocurrency exchanges by trading volume.
- Binance Coin: The native cryptocurrency of the Binance exchange, used to pay transaction fees and other services on the platform.
- Bitcoin: The first and most well-known cryptocurrency was invented by Satoshi Nakamoto in 2009.
- Bitcoin Cash: A cryptocurrency created as a result of a hard fork of the Bitcoin network, with larger block sizes and faster transaction times.
- Block: A group of transactions that have been validated and added to the blockchain.
- Block Reward: The incentive given to miners for validating a block of transactions on the blockchain.
- Blockchain: A decentralized and distributed ledger that records transactions in a tamper-evident and transparent way.
- Bounty: A reward offered for finding and reporting bugs or vulnerabilities in a blockchain project.
C
- Centralized: A system or network that is controlled by a single entity.
- Chainlink: A decentralized oracle network that provides real-world data to smart contracts on the blockchain.
- Coinbase: A popular cryptocurrency exchange that allows users to buy, sell, and store cryptocurrency.
- Cold storage: The practice of storing cryptocurrency offline, typically on a hardware wallet or paper wallet.
- Consensus: The process by which participants in a blockchain network agree on the state of the ledger.
- Consensus Mechanism: The method by which a blockchain network reaches an agreement on the state of the ledger and validates transactions.
- Crypto Exchange: A platform that allows users to buy and sell cryptocurrencies.
- Crypto Mining: The process of using computing power to validate transactions and add new blocks to the blockchain.
- Cryptocurrency: Digital or virtual currency that uses cryptography for security.
- Cryptocurrency Wallet: A digital wallet used to store, send, and receive cryptocurrencies.
- Cryptojacking: The unauthorized use of someone else’s computing resources to mine cryptocurrency.
D
- DAG: Directed Acyclic Graph – A data structure used by some cryptocurrencies to store transactions.
- DAO: Decentralized Autonomous Organization – An organization that operates on a blockchain and is governed by smart contracts.
- DLT: Distributed Ledger Technology – A type of technology that enables the decentralized and transparent recording of transactions on a blockchain network.
- Dapp: Decentralized application that operates on a blockchain and is governed by smart contracts.
- Decentralization: The process of distributing control away from a central authority or organization.
- DeFi: Decentralized finance, a movement aimed at creating financial services on a blockchain network, such as lending, borrowing, and trading.
- Digital signature: An electronic signature that verifies the authenticity of a message or transaction.
- Distributed ledger: A database that is spread across multiple nodes in a decentralized network.
- Difficulty: The measure of how hard it is to mine a new block on the blockchain.
- Digital Signature: A cryptographic technique used to verify the authenticity of digital messages and documents.
- Double Spending: The act of spending the same cryptocurrency twice, which is prevented by the blockchain’s consensus mechanism.
E
- EOS: A blockchain platform designed for the development and deployment of decentralized applications.
- ERC-20: A technical standard used for smart contracts on the Ethereum blockchain.
- EVM: Ethereum Virtual Machine is a runtime environment for executing smart contracts on the Ethereum blockchain.
- Ethereum: A blockchain platform that enables the creation of decentralized applications and smart contracts.
- Exchange: A platform that allows users to trade one cryptocurrency for another.
- Ethereum Classic: A cryptocurrency created as a result of a hard fork of the Ethereum network, maintaining the original codebase.
- Etherscan: A blockchain explorer for the Ethereum blockchain.
- Explorer: A tool used to view the contents of a blockchain.
- Escrow: A contract where a third party holds funds or assets until certain conditions are met.
F
- FOMO: Fear of Missing Out – A psychological phenomenon where people feel compelled to participate in investment due to the fear of missing out on potential gains.
- FUD: Fear, Uncertainty, and Doubt – A marketing tactic aimed at spreading negative information about a particular cryptocurrency or blockchain project.
- Fiat Currency: Government-issued currency that is not backed by a commodity like gold or silver, such as the US dollar or the euro.
- Fork: A change in the protocol of a blockchain that results in the creation of a new blockchain with a different set of rules.
- Full node: A node in a blockchain network that stores a complete copy of the blockchain and validates transactions.
G
- GPU: Graphics Processing Unit – The specialized hardware that can be used for mining some cryptocurrencies.
- Gas: The unit of measurement for the amount of computational effort required to execute a transaction on the Ethereum blockchain.
- Genesis Block: The first block in a blockchain network, created by the network’s creator.
- Governance: The process by which decisions are made in a blockchain network.
- Governance Token: A type of token used for on-chain governance of decentralized protocols and applications.
- Gold-backed cryptocurrency: A cryptocurrency that is backed by gold reserves.
- Gwei: A smaller unit of Ether, similar to a cent.
H
- HODL: A term used to describe holding onto cryptocurrencies for the long term, rather than selling them for short-term gains.
- Halving: The event that occurs when the block reward for mining a cryptocurrency is cut in half.
- Hard fork: A permanent divergence in the blockchain network, resulting in two or more versions of the blockchain that are incompatible with each other.
- Hash: A mathematical function that converts data of arbitrary size into a fixed-size output, used in blockchain networks for data integrity and security.
- Hash Rate: The rate at which a miner can compute a hash function, used to measure the computing power of a mining network.
I
- ICO: Initial Coin Offering – A type of crowdfunding campaign used to raise funds for new cryptocurrency projects.
- IEO: Initial Exchange Offering – A type of fundraising where a cryptocurrency exchange offers tokens for sale to its users.
- JIT: Just-In-Time – a method of compiling code at runtime, used in some blockchain networks to improve the efficiency of smart contract execution.
- IOTA: A cryptocurrency designed for the Internet of Things.
- JPM Coin: A cryptocurrency developed by JPMorgan Chase for use in its wholesale payments business.
- JSON: JavaScript Object Notation – a lightweight data interchange format commonly used in blockchain development.
- JVM – Java Virtual Machine – a runtime environment for executing Java code on the blockchain.
- Jaxx: A multi-cryptocurrency wallet that allows users to store and manage multiple cryptocurrencies in a single application.
- Immutable: Data that cannot be changed or altered once it has been recorded on the blockchain.
- Input: An important component of blockchain transactions, as they ensure that funds are being transferred securely and accurately.
- Interoperability: The ability of different blockchain networks to communicate and work with each other.
K
- KYC: Know Your Customer is a set of regulations and procedures designed to verify the identity of users of cryptocurrency exchanges and other financial institutions.
- Key pair: A pair of cryptographic keys used to encrypt and decrypt data or to sign and verify transactions.
- Kusama: A blockchain platform developed by the creators of Polkadot, designed for experimentation and testing.
- Kraken: A cryptocurrency exchange that offers trading in multiple fiat and cryptocurrencies.
- Kryptonite: A proof-of-work algorithm used by some cryptocurrencies such as Vertcoin.
L
- Layer-2: A scaling solution that operates on top of a blockchain network, improving its scalability and transaction speed.
- Ledger: A record of all transactions on a blockchain network, maintained by nodes on the network.
- Lightning Network: A layer-2 scaling solution for Bitcoin and other blockchain networks, enabling fast and cheap micropayments.
- Limit order: An order to buy or sell cryptocurrency at a specific price or better.
- Litecoin: A cryptocurrency created as a fork of the Bitcoin network, with faster transaction times and lower fees than Bitcoin.
- Liquidity: The degree to which an asset or security can be bought or sold in the market without affecting its price.
M
- Market capitalization (market cap): The total value of a cryptocurrency is calculated by multiplying the current price by the total number of coins in circulation.
- Masternode: A full node in a cryptocurrency network that performs additional functions such as validating transactions and voting on governance issues.
- MetaMask: A popular browser extension that allows users to interact with decentralized applications on the Ethereum blockchain.
- Merkle Tree: A data structure used in blockchain networks to verify the integrity of large amounts of data.
- Mining: The process by which new cryptocurrency is created and transactions are verified on the blockchain.
- Multi-signature (multi-sig): A type of wallet that requires multiple signatures to authorize a transaction, increasing security and reducing the risk of theft.
N
- NEM: A blockchain platform designed for enterprise use, featuring customizable smart contracts and a native cryptocurrency.
- NEO: A blockchain platform that enables the creation of decentralized applications and smart contracts.
- NFT: Non-fungible Token – A unique digital asset that is stored on a blockchain and cannot be replicated or exchanged for something else.
- Nakamoto consensus: The consensus mechanism used in the Bitcoin network, based on proof-of-work.
- Nano: A cryptocurrency that uses a block-lattice structure to enable fast and feeless transactions.
- Network congestion: A situation where the number of transactions on a blockchain network exceeds its processing capacity.
- Node: A computer connected to a blockchain network that helps to validate transactions and maintain the blockchain.
- Node operator: A person or organization that runs a full node on a blockchain network.
- Non-custodial: A type of cryptocurrency wallet where the user has full control over their private keys and funds.
O
- Off-chain: Transactions or data that are not recorded on the blockchain but instead are processed outside of it.
- Omni: A layer built on top of the Bitcoin blockchain that enables the creation of custom tokens.
- Open-source: Software that is freely available and can be modified and redistributed by users.
- Oracle: A trusted data source that provides information to a smart contract on the blockchain.
- Order book: A list of all buy and sell orders for a particular cryptocurrency on an exchange.
P
- P2P: Peer-to-peer – A decentralized network where nodes communicate directly with each other without the need for a central authority.
- PoW: Proof-of-work – A consensus mechanism used in many blockchain networks, where miners compete to solve cryptographic puzzles to add a new block to the blockchain.
- PoS: Proof-of-stake – A consensus mechanism where validators are chosen to create new blocks based on the amount of cryptocurrency they hold.
- Permissioned Blockchain: A type of blockchain network where access is restricted to authorized participants.
- Privacy Coin: A type of cryptocurrency that emphasizes user privacy and anonymity.
- Private key: A secret code that allows access to a cryptocurrency wallet and authorizes transactions.
- Public key: A code that can be shared with others to receive cryptocurrency and verify digital signatures.
Q
- Quantum resistance: A property of a blockchain network that makes it resistant to attacks by quantum computers.
- Quick Response (QR) code: A two-dimensional barcode that can be scanned to quickly and easily transfer cryptocurrency addresses or payment information.
- Quorum: A permission blockchain platform developed by JPMorgan Chase for use in financial applications.
- Quantstamp: A blockchain security company that provides smart contract audits and verification.
- Quantum Computing: A type of computing technology that may one day be able to break the cryptography used in blockchain networks.
- Qtum: A blockchain platform that combines the security of the Bitcoin network with the flexibility of smart contracts.
R
- RSK: A smart contract platform that operates as a sidechain to the Bitcoin network.
- Raiden Network: A layer-two scaling solution for the Ethereum network that enables off-chain transactions.
- Rarible: A marketplace for buying and selling NFTs.
- Ring Signature: A cryptographic technique used in privacy-focused cryptocurrencies to hide the identity of the signer.
- Ripple: A cryptocurrency and payment protocol designed for fast and low-cost international money transfers.
- Root Hash: A hash value used in Merkle trees to represent all the data in the tree.
S
- Satoshi: The smallest unit of Bitcoin, named after the pseudonymous creator of the cryptocurrency.
- Satoshi Nakamoto: The pseudonym used by the unknown creator of Bitcoin.
- SegWit: Segregated Witness is a soft fork of the Bitcoin network that separates transaction signatures from the rest of the transaction data to increase transaction capacity.
- Sidechain: A separate blockchain network that operates parallel to the main blockchain network, allowing faster and more efficient transactions.
- Smart contract: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
- Stablecoin: A cryptocurrency whose value is pegged to an external asset such as a fiat currency or a commodity.
- Synthetix: A decentralized platform that enables the creation of synthetic assets on the Ethereum network.
T
- Taproot: A Bitcoin soft fork that enhances privacy and reduces transaction fees by combining multiple transaction scripts into one.
- Tether: A stablecoin pegged to the US dollar, designed to provide price stability for cryptocurrency traders and investors.
- Tezos: A blockchain platform that uses a delegated proof-of-stake consensus mechanism and on-chain governance.
- Theta Network: A decentralized video delivery network that uses blockchain technology.
- Token: A unit of value created and managed on a blockchain network, used to represent assets or access to services.
- Tokenomics: The economic and financial principles governing the use and distribution of tokens on a blockchain platform.
- Transaction fee: The amount of cryptocurrency paid to miners to prioritize and process a transaction on the blockchain.
- Tron: A blockchain platform that aims to create a decentralized internet.
- Trustless: A characteristic of blockchain networks that allows parties to transact with each other without the need for a trusted intermediary.
U
- UI: User interface – The visual interface that users interact with when using a blockchain platform or application.
- UTXO: Unspent Transaction Output – A term used in Bitcoin and other UTXO-based blockchains to refer to unspent transaction outputs.
- USDC: A stablecoin pegged to the US dollar, developed by Circle and Coinbase.
- Uniswap: A decentralized exchange that allows for the swapping of tokens on the Ethereum network.
- Utility token: A type of token that provides access to a particular product or service on a blockchain platform.
V
- VM: Virtual machine – A software environment that emulates the hardware of a computer system and enables the execution of smart contracts on a blockchain.
- Validator: A node on a blockchain network that checks and verifies transactions, maintaining the security and integrity of the ledger.
- Vanity Address: A customized public key or address used in cryptocurrency transactions, often used for branding or personalization purposes.
- VeChain: A blockchain platform designed for supply chain management and product tracking.
- Vitalik Buterin: The co-founder of Ethereum and a prominent figure in the blockchain and cryptocurrency space.
- Volatility: The degree of variation in the price of a cryptocurrency over a given period of time.
- Voting token: A type of token that enables users to participate in on-chain governance and decision-making processes.
W
- WTBC: Wrapped Bitcoin – A token that represents Bitcoin on the Ethereum network.
- Wallet: A software or hardware device used to store, send, and receive cryptocurrencies.
- Waves: A blockchain platform that enables the creation and trading of custom tokens.
- Web3: The next evolution of the internet, characterized by decentralized applications and blockchain-based services.
- Whitepaper: A document that outlines the technical specifications and features of a blockchain platform or cryptocurrency project.
X
- XRP: The native cryptocurrency of the Ripple network, used for facilitating fast and low-cost international payments.
- XLM: The native cryptocurrency of the Stellar network, used for cross-border payments and asset transfers.
- XBT: The ISO currency code for Bitcoin.
- XMR: The ticker symbol for Monero, a privacy-focused cryptocurrency.
- Xenon: A blockchain platform designed for decentralized applications and smart contracts.
Y
- YFI: The native token of the Yearn.finance platform, used to govern the platform’s development and management.
- Yield curve: A graph that shows the relationship between the interest rates of bonds with different maturities.
- Yield farming: A process where users can earn rewards in the form of cryptocurrency by providing liquidity to decentralized exchanges and other platforms.
- Yearn. finance: A decentralized finance (DeFi) platform that automates yield farming strategies across multiple protocols.
- YottaChain: A blockchain platform designed for secure and scalable data storage.
Z
- ZK-SNARKs: Zero-knowledge succinct non-interactive arguments of knowledge, a type of cryptographic proof used to enable private transactions on blockchains.
- Zcash: A privacy-focused cryptocurrency that uses zero-knowledge proofs to enable private transactions.
- ZenCash: A privacy-focused cryptocurrency that combines features of Bitcoin and Zcash.
- Zero-Knowledge Proof: A type of cryptographic proof that allows one party to prove knowledge of a certain value or information without revealing that information to the other party.
- Zilliqa: A blockchain platform designed for high-throughput and scalable smart contracts.
