Airdrop: A crypto airdrop is a marketing method employed by startups in the cryptocurrency space. It involves delivering bitcoins or tokens to the wallets of current cryptocurrency traders, either for free or in exchange for a small promotional service.
Altcoin: The term “altcoin” is shorthand for “alternative coins” and simply means cryptocurrencies other than Bitcoin.
Atomic swap: An atomic swap refers to across-chain transaction between cryptocurrency wallets. The exchange is called “atomic” because there are only two possible outcomes of the trade. Either both parties get their desired cryptocurrencies, or they both remain with their original cryptocurrencies.
B
Bitcoin: Bitcoin is a digital currency that has been created without the intervention of a central bank. While the Federal Reserve is responsible for the US’s monetary system, bitcoin does not have a single person or organization in charge.
Bitcoin Maximalist: Bitcoin maximalists believe that Bitcoin,which is the world’s most popular cryptocurrency, is the only digital asset that will be needed in the future. Maximalists believe that all other digital currencies are inferior to Bitcoin.
Blockchain: A blockchain is a digital, public ledger that records online transactions. Blockchain is the core technology for cryptocurrencies like bitcoin. A blockchain ensures the integrity of a cryptocurrency by encrypting, validating, and permanently recording transactions.
Blockchain Application: Blockchain applications go far beyond cryptocurrency and bitcoin. They have the ability to create more transparency and fairness while also saving businesses time and money, the technology is impacting a variety of sectors in ways that range from how contracts are enforced to making government work more efficiently.
BTFD: The abbreviation BTFD is used with the meaning “Buy The F*cking Dip” as a recommendation to an investor to buy a cryptocurrency when the price is low.
Byzantine fault tolerance (BFT): Byzantine Fault Tolerance, or BFT, is one of the most important concepts in blockchain and perhaps one of the least known. Without it, blockchain technology as we know it would not be possible. BFT is the property of a system that can resist the class of failures derived from the Byzantine Generals’ Problem, which is a logical dilemma that illustrates how a group of Byzantine generals may have communication problems when trying to agree on their next move. Thus, a BFT system can continue to operate even if some of the nodes fail or act maliciously.
C
CBDC (Central bank digital currency): A CBDC is a digital form of central bank money that is widely available to the general public. CBDC is money that a government establishes and backs through its central bank in a virtual form. Central bank digital currencies could be the future of money, but they still have a long way to go.
Cold Wallet: A cold wallet, otherwise known as a hardware wallet or cold storage, is a physical device that keeps your cryptocurrency completely offline.
Consensus protocol(algorithm or mechanism): Essentially, the consensus protocol makes sure that every new block that is added to the blockchain is the one and only version of the truth that is agreed upon by all the nodes in the blockchain.
Consortium blockchain: Consortium blockchain or federated blockchain is a blockchain technology where multiple organizations govern the platform instead of only a single organization. It’s not a public platform it is a permissioned platform.
Cross-chain: Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. In doing so, it breaks the siloed nature of blockchains to create an intertwined distributed ecosystem.
Crypto Tokens: Crypto tokens are a type of cryptocurrency that represents an asset or specific use and reside on their own blockchain. Tokens can be used for investment purposes, to store value, or to make purchases.
Crypto Whale: Whale investors in cryptocurrencies are big investors that can change the price of a cryptocurrency by buying or selling a large amount of that cryptocurrency.
Cryptocurrency: A cryptocurrency is an encrypted data string that denotes a unit of currency. It is monitored and organized by a peer-to-peer network called a blockchain, which also serves as a secure ledger of transactions, e.g., buying, selling, and transferring. It operates independently of a central bank. Many cryptocurrencies such as bitcoin are decentralized networks based on blockchain technology.
Cryptocurrency agnostic: Blockchain agnosticism is simple: it refers to a single platform that allows multiple different chains. Projects are built to work with a multitude of tokens, cryptos, and altcoins, which allow users from different ecosystems to participate, further expanding building capacity across existing and new cryptocurrency projects.
Cryptoeconomics: Cryptoeconomics brings together the fields of economics and computer science to study the decentralized marketplaces and applications that can be built by combining cryptography with economic incentives.
Cryptographic hashing: Cryptographic hashing is the procedure of repeatedly inserting a random string of digits into hashing formula until finding a desirable output. It produces a single fixed length output. Some examples of hash function algorithms are MD5, MD4, or SHA-256.
Cryptography: Cryptography is a mathematical algorithm used to encrypt and decrypt information. In blockchain, it is used for creating wallets, signing transactions, and verifying the block.
Cypherpunk: A cypherpunk is someone who believes in privacy-enhancing technology.
D
dApps – Decentralized Applications: Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or peer-to-peer (P2P) network of computers instead of a single computer. DApps (also called “dapps”) are outside the purview and control of a single authority.
DAO – Decentralized autonomous organization: A DAO (decentralized autonomous organization), sometimes called a DAC (decentralized autonomous corporation), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.
DeFi – Decentralized Finance: DeFi (decentralized finance) refers to the infrastructure, processes, and technologies used to democratize financial transactions. DeFi uses emerging technology to remove third parties in financial transactions and is an attempt to replace the current, centralized financial system. With no middlemen, users will control their assets, using them at their will without hefty transaction fees and cutting processing times. This also removes the need for approvals from banks or governments. Powered by the blockchain, every transaction will be permanent with the DeFi services accessible with just an internet connection. In addition, DeFi works without any personal identification. The easiest and the oldest application of DeFi is Bitcoin. It lets you control your funds, making you the sole authority without any intermediary.
Decentralized network: In blockchain, decentralization refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group thereof) to a distributed network. Decentralized networks strive to reduce the level of trust that participants must place in one another, and deter their ability to exert authority or control over one another in ways that degrade the functionality of the network.
DHT– Distributed hash table: A DHT (Distributed Hash Table) is a decentralized data store that looks up data based on key-value pairs. Every node in a distributed hash table is responsible for a set of keys and their associated values. The key is a unique identifier for its associated data value, created by running the value through a hashing function. The data values can be any form of data.
Digital Fiat – CBDC: A central bank digital currency (CBDC) (also called digital fiat currency or digital base money) is a digital currency issued by a central bank, rather than by a commercial bank.
Distributed ledger:Distributed ledgers are the databases shared across a network and spread over various geographical locations. A ledger is a collection of financial accounts and, in such a case, distributed means spread out and controlled globally. Thus, distributed ledgers are held and reorganized by multiple parties in different locations and institutions.
Double Spending: Double-spending occurs when someone alters a blockchain network and inserts a special one that allows them to reacquire a cryptocurrency.
DPos – Delegated Proof of Stake: DPoS is a consensus protocol that provides dependable verification and approval of transactions in a blockchain.
E
Encryption: Encryption refers to the process of converting data to an unrecognizable or “encrypted” form. A common use of encryption is to protect sensitive information so that only authorized parties can view it.
F
Fork: In blockchain, a fork is defined variously as: “what happens when a blockchain diverges into two potential paths forward” “a change in protocol”, or. a situation that “occurs when two or more blocks have the same block height.”
G
Genesis Block: Genesis block is the name of a blockchain’s first block. It is the prototype of all other blocks in the blockchain as the common ancestor of them. If any block is followed the chain backward in time, it eventually leads to the genesis block.
H
Halving: Halving is a periodic reduction in the mining rewards. For example, Bitcoin mining rewards are halved every 210,000 blocks. In 2009, the reward for mining a single block was 50 BTC. At present, after three halving events, it currently stands at 6.25 BTC. The next such event is scheduled somewhere in 2024, which will bring down this value to 3.125 BTC. The sole purpose of halving is to push the value of a coin upwards by inducing artificial deflation.
Hard Cap:A hard cap is the limit placed by a blockchain’s code on the absolute maximum supply of a particular cryptocurrency. A hard cap doesn’t allow any further creation/circulation of its units.
Hard Fork: A hard fork occurs when a cryptocurrency on a distributed ledger undergoes a protocol change resulting in a permanent diversion from the legacy or existing distributed ledger. This radical change to the protocol of a blockchain network makes previously invalid blocks/transactions valid or vice versa. A hard fork is a backward-incompatible upgrade to the blockchain network.
Hash Rate: Hash rate is the computational power that miners contribute to secure the network in exchange for block rewards and transaction fees.
Hashing: Hashing is a mathematical function that miners perform on blocks to make the network secure. It is a transaction’s unique identifier.
HODL: While it looks like an acronym – one of those terms like FBI or KFC that abbreviates a word into its initials – HODL is simply a misspelling of the word hold, albeit one that caught on for the silliness of its mistake. But “HODL” has gained popularity among crypto enthusiasts, and has come to mean “hold on for dear life”. Crypto HODLers, like buy-and-hold stock investors, pride themselves on “holding on” by not selling their cryptocurrency, no matter what happens in the crypto markets.
Hot Wallet: A hot wallet is an online portal that allows investors or merchants to access crypto holdings via an online platform or application.
Hybrid blockchain: A hybrid blockchain is a mix of public and private blockchains. It can host an application or service on an independent permissioned blockchain while leveraging a public blockchain for security and settlement.
Hybrid – Proof of Work/PoS – Proof of Stake: A hybrid PoW/PoS consensus mechanism uses elements of both PoW and PoS models when determining transaction validation rights.
Hyperledger: Hyperledger is an open-source project created to support the development of blockchain-based distributed ledgers. Hyperledger consists of a collaborative effort to create the needed frameworks, standards, tools, and libraries to build blockchains and related applications.
I
ICO – Initial Coin Offering: An ICO is a mechanism used to raise external funding like an IPO (Initial Public Offering) through the emission of tokens in exchange for cryptocurrencies. It is often a form of crowdfunding but a private ICO that does not seek public investment is also possible.
Immutability: Immutability is the inability of a block to be deleted or modified once it is in the blockchain.
Interoperability: Interoperability refers to the exchange of data and information compatibly across varied complex systems.
IPFS – InterPlanetary File System: The InterPlanetary File System (IPFS) is a protocol and peer-to-peer network for storing and sharing data in a distributed file system.
L
Lightning Network: The Lightning Network allows users to send or receive Bitcoin quickly and cheaply by moving transactions off the main blockchain — you can think of it as being a little like an HOV lane on a highway.
M
Miner: A miner is a node on the network that is actively involved in the consensus process used to verify transactions before these transactions are batched in blocks. Miners participate in performing the block verification process by determining whether each transaction is legitimate. Miners are incentivized to participate in this process with the ability to earn compensation from either confirming blocks as they are added to the blockchain or processing transactions.
Mining:Mining is the process of adding new transaction records to a block and verifying a block created by other miners. It allows nodes to reach a secure, tamper-resistant consensus. Miners collect transaction fees and are rewarded for their services.
N
NFT – non-fungible token: An NFT is a non-fungible token, a token that bears some unique information; NFTs are often considered collectible tokens.
Node: A node is any kind of device such as a computer, laptop, or server that connects to the blockchain network. It stores. spreads, and preserves the blockchain data. All nodes on a blockchain network are connected and constantly exchange the latest data with each other.
Nonce: A nonce, an abbreviation for “number only used once,” is an arbitrary number or string that can be used only once in a cryptographic communication.
Non-fungible: Non-fungible is the quality of an asset indicating that the asset cannot be exchanged for another asset of a similar or identical type without any significant loss occurring to the holder; to be non-fungible tokens must bear some unique information.
O
Off-chain: Off-chain transactions refer to those transactions occurring on a cryptocurrency network that move the value outside of the blockchain. Due to their zero/low cost, off-chain transactions are gaining popularity, especially among large participants.
Onboarding: Onboarding is the process of adding a new client to the existing group of clients or members of an organization and familiarizing the client or member with services, products, and processes.
On-chain: On-chain refers to a cryptocurrency transaction that occurs on the blockchain.
On-chain transaction: On-chain transactions are transactions that occur on a blockchain that are reflected on the distributed, public ledger. On-chain transactions are those that have been validated or authenticated and lead to an update to the overall blockchain network.
Online wallet: or digital wallet or electronic wallet…is a financial transaction application that runs on mobile devices. It securely stores your payment information and passwords.
Open API: An open API, a publicly available API, is an application programming interface made publicly available to software developers. Open APIs are published on the internet and shared freely, allowing the owner of a network-accessible service to give universal access to consumers.
Open-source – open source: Open source for blockchain means that it is a very public, transparent way to keep records. This should all but eliminate any kind of operator tampering or revisions.
Oracle: An oracle is a bridge between the blockchain and the real world. They act as on-chain APIs you can query to get information into your smart contracts. This could be anything from price information to weather reports. Oracles can also be bi-directional, used to “send” data out to the real world.
Orphan block:An orphan block is a block that has been solved within the blockchain network but was not accepted by the network. There can be two miners who solve valid blocks simultaneously. The network uses both blocks until one chain has more verified blocks than the other. Then, the blocks in the shorter chain are orphaned.
P
P&D – Pump and Dump:A manipulative scheme to boost the price of a security through fake recommendations based on false, misleading, or exaggerated statements.
P2P – peer-to-peer: Peer-to-peer refers to the direct exchange of some asset, such as a digital currency, between individual parties without the involvement of a central authority.
Paper wallet: A paper wallet is a printed piece of paper containing keys and QR codes used to facilitate your cryptocurrency transactions. Because they are removed from the internet, at one point, paper wallets were considered to be more secure than other forms of cryptocurrency storage.
Payment gateway: A cryptocurrency payment gateway is a payment processor for digital currencies, similar to the payment processors, gateways, and acquiring bank credit cards use. Cryptocurrency gateways enable you to accept digital payments and receive fiat currency immediately in exchange.
PayTech: A paytech is an organization that uses technology to enable the electronic transfer of value.
Peer-to-peer: Peer-to-peer refers to the direct exchange of some asset, such as a digital currency, between individual parties without the involvement of a central authority.
PIN: A PIN is a numeric or alphanumeric password or code used in many electronic financial transactions for authenticating or identifying a user to a system and/or a system to a user.
Pitch: A pitch is a business plan delivered verbally by an entrepreneur to potential investors or other parties.
Plasma: Plasma refers to a framework that allows the creation of ‘child’ blockchains that use the main Ethereum chain as a trust and arbitration layer
Platform: Crypto-trading platforms are exchange platforms that permit the interchange of a digital currency for another.
POA – Proof of activity: POA is another hybrid of PoW and PoS that attempts to combine the best features of both mechanisms.
PoB – Proof of Burn: Proof-of-burn (PoB) is a blockchain consensus mechanism with minimal energy consumption, compared to proof-of-work (PoW).
POC – Proof of Concept – Proof of Principle: The Blockchain Proof of Concept is a process of determining whether a Blockchain project idea can be feasible in a real-world situation — a common type of consensus algorithm for blockchain. This process is necessary to verify that the idea will function as envisioned.
PoEt – Proof of Elapsed Time: Proof of Elapsed Time in blockchain uses a time-lottery-based consensus mechanism, distributing wait time to each participating node in the network.
POP – Proof of Principle: A proof of concept or a proof of principle is a realization of a certain method or idea(s) to demonstrate its feasibility, or a demonstration in principle, whose purpose is to verify that some concept or theory is probably capable of being useful.
PoR – Proof of Retrievability: PoR is a compact proof by a file system (prover) to a client (verifier) that a target file is intact in the sense that the client can fully recover it.
PoS – Proof of Stake: PoS is a consensus algorithm that asks users to prove a certain amount of currency that is their stake in the currency. PoS gives the miners who hold coins the ability to mine or validate transactions. In other words, the power of mining is proportional to the amount of coins a miner owns. Thus, the PoS process rewards larger stakeholders in the network.
PoW – Proof of Work: Proof of work is the original crypto consensus mechanism, first used by Bitcoin. Proof of work and mining are closely related ideas. The reason it’s called “proof of work” is because the network requires a huge amount of processing power. Proof-of-work blockchains are secured and verified by virtual miners around the world racing to be the first to solve a math puzzle. The winner gets to update the blockchain with the latest verified transactions and is rewarded by the network with a predetermined amount of crypto.
Pre-mined: Cryptocurrency pre-mining refers to the act of mining and distributing a cryptocurrency before it officially launches to the public.
Pre-Sale: Pre-selling is a practice performed by some crypto projects ahead of an initial coin offering, in which tokens are sold to interested parties at a certain price.
Private blockchain – Permissioned blockchain: A private blockchain allows only selected entry of verified participants; the operator has the right to override, edit, or delete the necessary entries on the blockchain. A permissioned blockchain has properties of both private and public blockchains.
Private key:A private key is an extremely large number that is used in cryptography, similar to a password. Private keys are used to create digital signatures that can easily be verified, without revealing the private key. Private keys are also used in cryptocurrency transactions in order to show ownership of a blockchain address.
Private sale: A private sale is an early-stage investment round for strategic investors with a considerable amount of investible funds. Also, a fundraising method in which new projects will sell their cryptocurrency to investors.
ProgPow – Programmatic Proof of Work: ProgPow is a blockchain protocol consensus algorithm designed to reduce the mining efficiency advantage of specialized hardware like ASIC miners over less-advanced machines like a standard CPU, meaning average individual crypto participants can mine coins.
Proof of Address: A proof of address serves as evidence of the registered residence of a user.
Proof of Capacity: Proof-of-capacity (PoC), also known as proof-of-space (PoSpace), is a way of showing that one has a legitimate interest in a service (such as sending an email) by allocating a non-trivial amount of memory or disk space to solve a challenge presented by the service provider.
Proof ofIdentity:A blockchain verifies identity by looking at decentralized public identifiers (DIDs) and comparing them against the current credential or identity an individual is trying to verify.
Proof of Storage: Proof-of-storage (PoS) is a cryptographic protocol used primarily to verify the integrity of a remote file. This is done by sending an encoded copy of the data to a server and then executing a challenge-response protocol to check the data’s integrity.
Proof-of-keys: The proof of keys is a movement, rallying for investors to remove all their coins and tokens from third-party crypto exchanges and other third-party service providers on a specific date. The event compels the service providers to evidence that they hold the crypto funds they claim to store for the client and that they are thus in possession of the users’ private keys. Its goal is to encourage cryptocurrency investors to move their funds from exchanges to their personal wallets. By taking full control over one’s own private keys, they’re ensuring no one but themselves can access their funds.
Protocol: Protocols are basic sets of rules that allow data to be shared between computers. For cryptocurrencies, they establish the structure of the blockchain — the distributed database that allows digital money to be securely exchanged on the internet.
PSD2 – Payment of Services Directive 2: PSD2 is the second Payment Services Directive, set forth by the European Union which aims at improving consumer protection with regard to online payments, promoting the development and use of innovative online and mobile payments, and making European cross-border payments more secure.
PSP – Payment service provider: A payment service provider (PSP) is a third-party company that assists businesses to accept a wide range of online payment methods, such as online banking, credit cards, debit cards, e-wallets, cash cards, and more. They ensure customer’s transactions make it from point A to point B, safely and securely.
Public blockchain – permissionless: A public blockchain is a blockchain that is open to the public and that anyone can join without specific permission. All people who join the network can read, write, and participate in this network that is not controlled by anyone.
Public address: A public or permissionless blockchain is a decentralized ledger that is accessible to any user. Users do not need permission from anyone on the network to perform certain actions such as joining the network, receiving/sending transaction data, and participating in the consensus process to determine what blocks get added to the chain.
Public key: A public key is a cryptographic code that allows users to receive cryptocurrencies into their accounts. The public key and the private key are the tools required to ensure the security of the crypto economy.
Pump and Dump:A manipulative scheme to boost the price of a security through fake recommendations based on false, misleading, or exaggerated statements.
Pumping: The term “pumping” is used to indicate the purchasing of large quantities of coins to push the demand and price of a respective coin up. Then, they release the assets at a higher price to rake in a high return on investment.
R
Race attack: Race attacks are simply a “race” between two transactions that have been broadcast at near-identical times. The idea is to replace the first transaction with another one that returns the funds to a wallet you control, prior to the first transaction being written on the blockchain.
Raiden Network: The Raiden Network is a scaling layer built on top of the Ethereum blockchain. It allows users to initiate fast and low-cost transactions.
Rating: At the core of the Crypto Rating Council is the rating framework, a points-based rating system built upon a set of factual questions that assess each element of the legal test for investment contracts that courts use to determine whether an asset is a security.
Record SHA-256: A record is a combination of transactions. SHA-256 stands for Secure Hash Algorithm 256-bit, and it is used for cryptographic security. SHA-256 generates an almost-unique 256-bit signature for a text. Bitcoin uses SHA-256 for mining and creating addresses.
Reddit: Reddit is a United States social news aggregation, web content, rating, and discussion website; the user community can submit as well as vote on content as diverse as links, text posts, images, and more.
RegTech: Regtech is also known as regulatory technology. Regtech companies collaborate with financial institutions and regulatory bodies, using cloud computing and big data to share information. Cloud computing is a low-cost technology wherein users can share data quickly and securely with other entities.
Regulatory sandbox: A crypto regulatory sandbox is a live-like testing environment used to ensure regulatory compliance and security checks for financial operations, including cryptocurrencies and blockchain networks
Rekt: REKT (or rekt) is a misspelling of “wrecked”. “Getting rekt” refers to a cryptocurrency trader who is utterly ruined and destroyed due to losses from a recent price crash. Rekt is what happens when crypto traders get swept up by FOMO (Fear of Missing Out) and end up becoming the victim of a pump and dump.
Relay chain: The relay chain is a blockchain that lends security to attached parachains and ensures secure message-passing between them.
Restricted countries: Countries that have banned or restricted the use of cryptocurrency.
ROI – Return on Investment: ROI is a metric used by cryptocurrency traders to measure the performance and the efficacy of a crypto investment, or to compare the performance of multiple crypto investments in a portfolio.
S
Satoshu Nakamoto: Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database. Satoshi Nakamoto holds around 1.1 million Bitcoins, which is valued at US$70 billion today. In 2021, even the biggest Bermuda Triangle uncertainty has come to a convincible end. However, the mystery behind the identity of Satoshi Nakamoto still remains in the shadow.
SATS – see Satoshi Nakamoto
Scam – fraud: A cryptocurrency scam is a type of investment fraud that involves criminals stealing money from people hoping to invest in digital currencies such as bitcoin and others. Various types of scams exist including deceptive ICOs where the company has little more to offer than a white paper, to unjustified fees and costs charged by unregulated crypto exchanges, and malware using devices to mine coin without the user’s consent.
Secret Key: A secret key generally refers to the key in a secret-key cryptography system, in which both sides usethe same key.
Security Token: Security tokens are similar to the certificates issued for stocks. For stocks, ownership information is entered into a document as an official certificate of ownership. For security tokens, similar information is recorded, the major difference being that it is recorded on the blockchain and represented by a token.
Segwit – Segregated Witness: The main purpose of SegWit is to improve transaction throughput on a blockchain network. It is worth noting that the first cryptocurrency to implement the SegWit layer was not Bitcoin, but Litcoin. In essence, SegWit reduces the weight of transactions in a block on the blockchain by segregating a transaction into two sections; effectively increasing the number of transactions one can include in a block of the same size.
Sell wall: The term sell wall refers to a very large limit sell order or a cumulation of sell orders at one price level on an order book. It is the opposite of a buy wall, which refers to a large buy order or a cumulation of buy orders at one price level.
Shard – Sharding: A shard is a portion of a blockchain network that has been split into multiple shards, which have their own data. Sharding is a method for distributing a single dataset across multiple databases, which can then be stored on multiple machines. This allows for larger datasets to be split into smaller chunks and stored in multiple data nodes, increasing the total storage capacity of the system.
Shilling: P&D – Pump and Dump: A manipulative scheme to boost the price of a security through fake recommendations based on false, misleading, or exaggerated statements.
Shitcoin:The term ‘shitcoin’ is an umbrella covering all the spin-offs of failing or already failed cryptocurrencies. Usually devoid of any identifiable purpose, these currencies have no basis for existence and lack fundamentals to back them.
Side chains: A sidechain is a separate blockchain network that connects to another blockchain – called a parent blockchain or mainnet – via a two-way peg.
Signature: Digital signatures cryptographically bind an electronic identity to an electronic document and the digital signature cannot be copied to another document.
Smart Contract: Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without an intermediary’s involvement or time loss.
Soft cap: Softcap refers to the minimum defined limit for the collection of funds specified by a project’s team for its fund-raising (ICO, IEO, etc.). It is speculative in nature and arbitrarily defined. This is in contrast to a hard cap, which is the maximum possible funding that a team is looking to collect.
Soft fork: In blockchain technology, a soft fork is a change to the software protocol where only previously valid transaction blocks are made invalid. Because old nodes will recognize the new blocks as valid, a soft fork is backwards-compatible.
Software wallet: Software wallets are the most commonly used type of crypto wallet. Crypto wallets include hardware and software wallets, depending on the approach for the storage of crypto assets. Hardware wallets store the private keys of users in offline environments, thereby ensuring better security for crypto. Hardware wallets, however, present issues of scalability, software wallets do not.
Solidity: Solidity is an object-oriented programming language created specifically by the Ethereum Network team for constructing and designing smart contracts on Blockchain platforms. It’s used to create smart contracts that implement business logic and generate a chain of transaction records in the blockchain system.
Spoofing: Cryptocurrency spoofing is the process by which criminals attempt to artificially influence the price of a digital currency by creating fake orders. Spoofing is accomplished by creating the illusion of pessimism (or optimism) in the market
Spread: When you buy or sell cryptocurrency, the spread is the difference between the current market price for that asset and the price at which you buy or sell that asset.
Stablecoin: A stablecoin is a type of cryptocurrency that relies on a more stable asset as a basis for its value. Most commonly, people refer to stablecoins as linked to a fiat currency, such as the U.S. dollar, but they can also have a value linked to precious metals or other cryptocurrencies
Staking: Staking via a cryptocurrency exchange means that you make your crypto available via an exchange for use in the proof-of-stake process. In essence, it enables holders to monetize their crypto holdings that would otherwise lie idle in their crypto wallet
Startup: A startup is a business that is in the process of being set up or one that has just recently begun operation. Crypto, or (more broadly) blockchain, startup refers to companies built on a blockchain, which is a decentralized and immutable ledger enabling peer-to-peer crypto transactions and networking.
State channels: State channels refer to the process in which users transact with one another directly outside of the blockchain, or ‘off-chain,’ and greatly minimize their use of ‘on-chain’ operation.
STO – Security token offering: An STO, also known as a Security Token Offering, is a digital token supported by blockchain technology that represents a stake in an asset. STOs enable digital funding, while still complying with government regulations. Security tokens require extensive regulations, so they are not traded on regular token exchanges.
T
Taker Fee: Taker fees are transaction costs that occur when orders are placed and filled. They are the fees an exchange charges, or reimbursements, in exchange for the use or provision of liquidity on the platform’s order book.
Tangle: Tangle is a technology that is used for cryptocurrency transactions like Blockchain. Here, a directed acyclic graph (DAG) is used, which resembles a distributed ledger. DAG is not under the control of any external authority such as a bank or any financial institution.
Tap: TAP is a suite of services in application: users can access a secure wallet, trade, and transact. While TAP offers a lot of convenience by offering an umbrella of services in one platform, its greatest utility is the provision of a payment system for Crypto holders.
Telegram: Telegram is an instant messaging application available in mobile and in desktop versions that is focused on speed and security. It is the go-to platform for cryptocurrency projects when kickstarting their supporter base. You can reply to, forward, pin, and link messages in a group.
TFA– Two factor authentication: Two-factor authentication (2FA), sometimes referred to as two-step verification or dual-factor authentication, is a security process in which users provide two different authentication factors to verify themselves. 2FA is implemented to better protect both a user’s credentials and the resources the user can access.
Timestamp: A timestamp is a small data stored in each block as a unique serial whose main function is to determine the exact moment in which the block has been mined and validated by the blockchain network.
Timestamping: Timestamping is the process of proving that a certain event occurred at a certain point in time; timestamping based on blockchain timestamps is particularly trustworthy since timestamps on the blockchain are subject to immutability.
Token: Crypto tokens are a type of cryptocurrency that represents an asset or specific use and reside on their own blockchain. Tokens can be used for investment purposes, to store value, or to make purchases.
Token basket– Token set: A token basket or set, when used in the cryptocurrency space, refers to a collection of digital currencies managed as a single asset, minimizing the need for holders to monitor individual currencies continuously. A crypto basket is also used interchangeably with a crypto index fund.
Token contract: A token contract is a smart contract on the Ethereum network.
Token contract address: A token contract address is the location of the actual token contract that manages the logic for tokens.
Token gravity: Token gravity is a concept that details how tokens can be expected to move within a given digital ecosystem.
Token sales: A token sale refers to the initial offering of a cryptocurrency token to a private pool of investors before it officially goes on the market.
Token set– Token basket: A token set or basket, when used in the cryptocurrency space, refers to a collection of digital currencies managed as a single asset, minimizing the need for holders to monitor individual currencies continuously. A crypto basket is also used interchangeably with a crypto index fund.
Tokenization: Tokenization refers to the process of converting tangible and non-physical assets into blockchain tokens.
Tokenomics: Tokenomics is a catch-all for the elements that make a particular cryptocurrency valuable and interesting to investors. That includes everything from a token’s supply and how it’s issued to things like what utility it has.
Total supply: Total supply refers to thenumber of coins or tokens that currently exists and are either in circulation or locked somehow. It is the sum of coins that were already mined (or issued) minus the total of coins that were burned or destroyed.
TPS– Transactions per second:The number of transactions that a blockchain network is capable of processing each second.
Trading bot: Cryptocurrency trading bots are automated trading systems that make crypto-trading easier by simplifying the process of investing.
Trezor: Trezor is a hardware wallet providing advanced security for handling Bitcoin and other cryptocurrencies private keys.
Turing complete: Turing Complete refers to a machine that, given enough time and memory along with the necessary instructions, can solve any computational problem, no matter how complex.
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Unbanked: An “unbanked” person is someone that does not have a checking or savings account with an insured (FDIC) institution.
Underbanked: Underbanked is a characteristic describing people who do not have sufficient access to mainstream financial services and products typically offered by retail banks and thus regularly rely on cash and checks as a mean of funding rather than bank-related methods such as credit cards or loans
Utility Token: A utility token is a crypto token that serves some use case within a specific ecosystem. These tokens allow users to perform some action on a certain network. A utility token is unique to its ecosystem
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Vesting: The vesting period, also called the token lockup period, refers to a period of time in which the tokens sold in the pre-sale of ICO stage are prevented from being sold for a specific period of time. In most cases, tokens are transferable immediately upon receipt, but this is not the case with all projects.
Virtual currency: Virtual currencies are a subset of digital currencies and include other types of digital currencies, such as cryptocurrencies and tokens issued by private organizations. The advantages of virtual currencies include faster transaction speeds and ease of use.
Vitalik Buterin: Vitalik Buterin is a Russian-Canadian developer best known as a co-founder of Ethereum.
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Wallet: A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions.
Wash Trading: Wash trading is the illegal process of buying shares of a company through one broker while selling shares through a different broker.
Weak Hands: “Weak hands” is a term often used to describe traders and investors who lack conviction in their strategies or lack the resources to carry them out.
Wei: Wei is the smallest denomination of ether—the cryptocurrency coin used on the Ethereum network. One ether = 1,000,000,000,000,000,000 wei (1018). The other way to look at it is one wei is one quintillionth of an ether.
Whale: The largest hodlers are called whales, who hold over $1 million worth of crypto in their wallets. Hodling is an industry term for users who hold large amounts of crypto without selling them, in hopes of future profits
White Paper: A whitepaper is a document released by developers that explains the technology and purpose of the project they are working on. It tells prospective investors how the cryptocurrency was conceived and highlights its purpose. A crypto whitepaper contains various forms of data like statistics, diagrams, and formula
Whitelisting: The term whitelist refers to a list of allowed and identified individuals, institutions, computer programs, or even cryptocurrency addresses.
