Glossary

A
Address: A unique string of characters that represents a wallet on a blockchain, used for sending and receiving cryptocurrency.
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Airdrop: A free distribution of cryptocurrency tokens to wallet addresses, often used to promote a project or reward users for their support or participation.
 
 
B
Block Reward: The reward given to a miner for successfully solving the mathematical puzzle and adding a block to the blockchain. This reward typically consists of newly minted coins.
 
Blockchain: A decentralized digital ledger that records transactions across many computers. Transactions are grouped into blocks and linked together in a chain, ensuring security and immutability of the data.
 
 
C
Cold Wallet: A type of cryptocurrency wallet that is not connected to the internet, making it highly secure against hacking.
 
 
D
dApps (decentralized applications): Applications that run on a blockchain or peer-to-peer network, offering transparency and autonomy.

Defi (decentralized finance): A financial system built on blockchain technology that allows people to access financial services—like lending, borrowing, and trading—without relying on traditional banks or intermediaries.
 
Digital Wallet: A software application or hardware device that allows users to store and manage their cryptocurrency. It typically contains both public and private keys.
 
 
E
Exchange: A platform where users can buy, sell, or trade cryptocurrencies. Exchanges can operate as centralized or decentralized platforms.
 
 
F
Fan Token: A type of cryptocurrency that represents membership and privileges within a specific sports team, club, or entertainment community. Fan tokens can grant holders special access, voting rights on certain decisions, and exclusive rewards or experiences.
 
Fiat: Traditional government-issued currency, such as the US dollar or the euro, that is not backed by a physical commodity (like gold) but rather by the government that issues it.

Fork: A fork in cryptocurrency is an update or change to a blockchain's protocol. It creates a split in the blockchain, leading to two potential paths: one that follows the original rules and another that adopts the new ones. Forks can be either:

1. Soft Fork: A minor update that's backward-compatible, meaning nodes (computers on the network) running the old software can still interact with the updated ones. It doesn't split the chain permanently.

2. Hard Fork: A major change that is not backward-compatible, resulting in a permanent split. If some nodes adopt the update while others don't, it creates two separate blockchains, each with its own cryptocurrency. For example, Bitcoin Cash (BCH) is a hard fork of Bitcoin (BTC).

Forks often occur to improve security, add features, or resolve disagreements within the community about the blockchain's direction.
 
 
G
Genesis Block: The first block ever mined in a blockchain, often referred to as Block 0 or Block 1.

Governance: The process by which token holders or community members participate in decision-making for a blockchain project or decentralized protocol. Governance typically involves voting on key issues, such as protocol upgrades, fee structures, and asset listings. Governance is usually conducted through governance tokens (like ONDO or COMP), where holders can propose or vote on changes, ensuring the community has a say in the project’s future direction. This approach helps decentralize control and keeps the project aligned with the interests of its users.
 
 
H
Halving: A programmed reduction in the block reward miners receive, occurring approximately every four years in Bitcoin. It reduces the rate of new supply entering the market.
 
HODL: A term originating from a misspelling of "hold," referring to the strategy of holding onto cryptocurrency rather than selling during market fluctuations.
 
 
I
Immutability: The property of blockchain that ensures once a transaction is recorded, it cannot be altered or deleted.
 
 
J
JOMO: Joy of missing out (JOMO) is the opposite of having a fear of missing out (FOMO.)It is often used by no-coiners who declare their happiness that they are not involved in cryptocurrencies, usually when prices are declining or a scam ICO is revealed.
 
 
K
KYC (Know Your Customer): A process that requires customers to verify their identity before they can use certain financial services, such as cryptocurrency exchanges.
 
 
L
Layer 2: A secondary framework or protocol built on top of an existing blockchain to improve scalability and efficiency.

Liquid Staking: Liquid staking allows users to stake their cryptocurrency and earn rewards while still keeping access to their funds. When you stake through liquid staking, you receive a “liquid” token representing your staked assets. This token can be traded, used in decentralized finance (DeFi), or held to earn rewards, providing flexibility without locking up your original assets.
 
 
M
Miner: A participant in a blockchain network who validates transactions and adds them to the blockchain by solving complex mathematical puzzles.
 
Moon: A term used to describe a sharp rise in the value of a cryptocurrency, often implying it is "going to the moon."
 
 
N
Node: A computer that participates in the blockchain network by validating and relaying transactions and blocks.
 
 
O
Off-Chain: Refers to transactions or data that are not recorded on the blockchain, often to save resources and increase efficiency.
 
Oracle: A service or system that feeds external, real-world data to a blockchain, enabling smart contracts to execute based on external events.
 
 
P
Private Key: A secret string of characters that provides access to a cryptocurrency wallet and authorizes the spending of funds.
 
Proof of Stake (PoS): A consensus mechanism where validators are chosen to create new blocks based on the number of coins they hold and are willing to "stake" as collateral.
 
Public Key: A cryptographic code used to receive cryptocurrency. It is paired with a private key but does not expose the private key.
 
 
Q
QR Code: A machine-readable code used to make cryptocurrency transactions easier. Scanning a QR code can automatically fill in transaction details, such as the recipient’s public address.
 
 
R
Rug Pull: A malicious act where developers of a cryptocurrency or decentralized application suddenly withdraw all funds, leaving investors with worthless assets.
 
 
S
Sat (Satoshi): The smallest unit of Bitcoin, named after its creator, Satoshi Nakamoto. One Bitcoin is equal to 100 million Satoshis.
 
Seed Phrase: A series of 12, 18, or 24 words generated when setting up a cryptocurrency wallet. It is used as a backup to recover access to the wallet if it is lost or damaged.
 
Stablecoin: A type of cryptocurrency that is pegged to a stable asset, like the US dollar, to reduce volatility.

Staking: Staking is the process of locking up cryptocurrency in a blockchain network to support its operations, such as validating transactions and securing the network. In return for staking, users earn rewards, usually in the form of additional tokens. It’s a way for token holders to earn passive income while helping maintain the blockchain’s integrity.
 
 
T
Token: A digital asset created on an existing blockchain. Tokens can represent a variety of assets, including digital goods, rights, or even services.
 
Trustless: Refers to a system where no trust is needed between participants because the system itself ensures fairness and transparency through its protocols and mechanisms.
 
 
U
Uniswap: A decentralized exchange (DEX) on the Ethereum blockchain that allows users to trade cryptocurrencies directly from their wallets without a central authority.
 
 
V
Validator: A participant in a blockchain network responsible for verifying and validating transactions in Proof of Stake and other consensus mechanisms.
 
 
W
Wallet Address: A unique string of characters representing a wallet on the blockchain. It is used to send and receive cryptocurrency.
 
Wrapped Token: A token that represents another cryptocurrency on a different blockchain, allowing for cross-chain functionality.
 
 
X
XRP: The native cryptocurrency of the Ripple network, used to facilitate international transactions and payments.
 
 
Y
Yield Farming: The process of earning rewards or interest by lending cryptocurrency assets to decentralized finance (DeFi) platforms or liquidity pools.
 
 
Z
ZK Rollup: A scaling solution for blockchains that bundles multiple transactions into a single one, using zero-knowledge proofs to verify them, improving efficiency and security.