The blockchain glossary we have prepared also includes the highlights of the web3 glossary and NFT glossary of terms. Blockchain terminology is expanding daily with the increasing popularity of blockchain technology. It isn’t easy to keep up with all of it. Rather than cryptocurrencies, there are several blockchain use cases, such as blockchain gaming. You will find the one most appropriate for your needs among the 4 types of blockchain in the best blockchain platforms as we saw it in enterprise blockchain examples.
Before we get started, here is a list of the best blockchain books in 2022 for better understanding. You may have heard about the blockchain talent gap and started to ask what is a blockchain developer. But unfortunately, you find some blockchain implementation challenges and security issues. Because of that, keep a crypto dictionary handy at all times. Sometimes it isn’t easy to know what a specific term means in crypto.
Blockchain glossary (2022)
Blockchain technology is still quite unusual, and it’s understood mostly by highly skilled engineers – many of whom were early bitcoin and ether adopters. The large number of specialist terms utilized by the communities that trade in cryptocurrencies, blockchains, and NFTs is partly responsible for the complexity. So, let’s take a deep dive into them.
A 51% attack occurs when one individual or a group of people controls more than half the computer power or mining hash rate on a network.
ABI (Application Binary Interface)
ABI is an interface between two binary program modules, with one being a library and the other being a user.
A concept is an idea that exists in mind.
Your funds are “hold” by public and private key pairs. Your money is not kept in a wallet or account; it’s on the blockchain.
Accounting tokens are credit or debit entries that have been tokenized (IOU/UOM) and, like any spreadsheet-based accounting system, serve as a means of recording transactions.
An accumulation/distribution indicator determines the supply and demand level of a stock/asset/cryptocurrency by calculating the closing price of a certain time times volume.
A participant in an action or a network on the blockchain is called a node.
Adaptive State Sharding
Adaptive State Sharding is a technique that combines all sorts of sharding into one to optimize communication and performance, as utilized by Elrond.
A blockchain address is a location to or from which transactions occur on the blockchain, much like a URL is the location for or origin of web pages.
The adoption curve shows how quickly the general public takes up new technology. It may also involve segmenting the target audience to determine market interest.
Aeternity Blockchain is a blockchain that employs a hybrid consensus system, which mixes Proof of Work and Proof of Stake.
Air-gapping is a method for safeguarding computers that do not connect to the Internet or any other open networks.
Airdrop is a method for distributing cryptocurrency or tokens to wallet addresses that is common in the crypto business. Airdrops are occasionally utilized for marketing reasons in exchange for easy activities such as reshares, referrals, and app downloads.
Oracles, APIs, and API gateways are more difficult to set up than smart contracts because they have several moving pieces that need to be built from scratch. Data feeds provided by companies wanting to participate in the API3 blockchain protocol can be instantly launched using Airnode as an oracle node and API blockchain gateway.
Algo-Trading (Algorithmic Trading)
Algo-trading is a computerized trading system in which buy and sell orders are placed according to the instructions of a program or algorithm.
An algorithm is a method or set of instructions for resolving difficulties or performing calculations, generally by a computer.
Algorithmic Market Operations (AMOs)
Algorithmic Market Operations (AMOs) automatically regulate the supply of algorithmic stablecoins while enhancing scalability, decentralization, and transparency.
A computer-generated algorithmically based stablecoin, on the other hand, has an algorithmic foundation that can produce coins when the price rises and purchase them back when the price falls.
The most expensive (in terms of price and market capitalization) point a cryptocurrency has reached in history. It is the most wanted term in the blockchain glossary.
The lowest price (in value or market capitalization) that a cryptocurrency has ever been. It is the most unwanted term in the blockchain glossary.
These are issued for a particular team, group, investor, institution, or another similar entity and represent a portion of the cryptocurrency that can be earned.
An altcoin is a bitcoin competitor that is based on a blockchain. Ether, Litecoin, and Dogecoin are examples of popular Altcoins.
Amazon Simple Storage Service (S3) is a web-based cloud storage service that allows you to store and retrieve data on demand. It’s scalable, fast, and inexpensive.
An Angel Investor is a financier of a new business project or startup.
In the realm of blockchain, an anti-dumping law is a set of rules that protects investors from being taken advantage of in a pump and dump scheme. In which an investor (whale) purchases a large number of crypto assets to increase the currency’s value and then dumps them at a much higher price, resulting in investors who bought later losing money.
Anti-Money Laundering (AML)
Anti-money laundering is the study and enforcement of international laws designed to minimize the risk of cryptocurrency money laundering.
To “ape” something is to invest rashly in the hopes of obtaining a quick profit. Everyone understands that frauds exist, and cautious investors conduct research to ensure a cryptocurrency or NFT project is safe. To “ape” into a project is to notice its value increasing, hoping for the best outcome.
Arbitrage is purchasing and reselling the same asset in different places to profit from price disparities. It is one of the most curious terms in the blockchain glossary.
The Aroon Indicator is a method for detecting, analyzing, and assessing the strength of an ongoing trend in financial markets.
An “Application Specific Integrated Circuit” is a chip that has been created to do one thing. They are designed to solve SHA-256 hashing challenges to create new bitcoins using ASICs. CPUs and GPUs are less efficient than ASICs (application-specific integrated circuits). Mining bitcoin with a regular computer is ineffective and leads to higher electricity costs.
Astroturfing is the practice of presenting commercial campaigns or other sponsor-sponsored messages as the spontaneous sentiments of genuine community members.
A register or account book is created for the express purpose of supporting/evidence of particular transactions. The attestation ledger is often used to confirm that a transaction was completed or authenticate items or transactions.
Authentication is confirming a user’s identity using passwords, SMS codes, fingerprints, and other types of ownership proofs before allowing access to sensitive or personal data.
Average Directional Index (ADX)
The average directional index (ADX) is a technical indicator that uses price moving averages to assess the strength of a market trend and is represented by numbers ranging from 1 to 100, with a higher value indicating a stronger trend.
It’s the act or process of buying a large amount of something, as in “I’m going to invest in crypto.” Alternatively (but less frequently), it can refer to the assets within someone’s cryptocurrency portfolio.
Tezos utilizes the technique of baking to append new blocks of transactions to its blockchain.
Banking as a Service (BaaS)
BaaS platforms expose banks to a wider range of financial transparency alternatives by enabling third parties to utilize their APIs.
When used in the realm of cryptocurrencies, a basket is a collection of digital currencies kept as a single asset.
One component of the infrastructure being developed to scale Ethereum is the Beacon Chain (always capitalized), which serves as the basis for transitioning from a Proof of Work (PoW) consensus mechanism to Proof of Stake. For further information, see this tutorial.
A bear is a person who thinks that the price of something will drop over time. A person who fits this description might be called a “bear.”
When prices on assets in a market decline by 20% or more from previous highs, it is known as a bear market. Investor confidence plummets, and the economy and market turn pessimistic. It is one of the most feared terms in the blockchain glossary.
Bear Trap manipulates a cryptocurrency’s price, driven by a group of traders.
A bearwhale is a cryptocurrency investor who artificially lowers the price of their portfolio by using their large account to drive it down and profit from it.
Benchmarking is a method of comparing the performance of your asset or investment portfolio to that of comparable assets to determine whether there is a gap that growing performance indicators can close.
A benchmark index is important equity that is used as a yardstick or standard to measure the progress of the market as a whole.
BEP-2 (Binance Chain Tokenization Standard)
BEP-2 is a technical standard for Binance Chain’s tokens.
The BEP-20, also known as Binance Smart Chain, is a blockchain standard designed to be extended from ERC-20.
The BEP-721 is a Binance Smart Chain (BSC) token standard that allows the creation of non-fungible tokens (NFTs). It’s an expansion of ERC-721, one of the most popular NFT standards.
BEP-95 (Bruno Hard Fork Upgrade)
The Binance Evolution Protocol, also known as the BEP-95 (Bruno hard fork upgrade), aims to expedite the process of destroying BNB tokens.
“Big Tech” refers to the four or five most significant technological corporations, particularly Facebook, Apple, Google, and Amazon (though not necessarily in that order), because they dominate their sectors.
Binance Labs is a blockchain and cryptocurrency initiative that aims to support, invest in, and develop projects, initiatives, and communities. A social impact fund is also part of this project.
Binance Launchpad is a venture capital program that allows crypto-startups to access millions of Binance ecosystem investors and raise funds.
Bitcoin is the first cryptocurrency created on a Proof of Work (PoW) blockchain. Satoshi Nakamoto, a pseudonym for an individual whose real identity is unknown, invented bitcoin in 2009 and wrote the paper “Bitcoin: A Peer-to-Peer Electronic Cash System” to formalize the concept of cryptocurrency. For the blockchain/network, use “Bitcoin”; for the currency, use “bitcoin.” The bitcoin is just one bitcoins; BTC is used as an abbreviation with a space: I have 250 BTC. It is the beginning of the blockchain glossary.
Bitcoin ATM (BTM)
An automated teller machine (ATM or cashpoint) where Bitcoin may be purchased and sold.
Bitcoin Dominance (BTCD)
The Bitcoin dominance metric is a number that indicates how much of the overall cryptocurrency market share is held by Bitcoin.
Bitcoin Improvement Proposal (BIP)
BIP is a common document format for suggesting modifications to Bitcoin.
The notorious transaction in which a guy named Laszlo Hanyecz paid 10,000 Bitcoins for two pizzas is called Bitcoin Pizza.
A Bitcoin bull.
The most popular online forum for Bitcoin, cryptocurrency, and blockchain technology is Bitcointalk.
Consider a blockchain as a ledger continuously updated and synchronized across numerous nodes (indeed, “distributed ledger technology” is another term for it).
When a sufficient number of transactions have been added to the ledger and agreement has been reached among the nodes that the transactions are genuine, they are cryptographically locked into a “block” and officially recorded. This “block,” the foundation for the following one, are linked together in this manner: they are all connected via a chain.
Future blocks directly or indirectly refer to a block included in the main blockchain. Blocks that are not canonical may have been correct, but the corresponding canonical block overwrote them.
The first block in a blockchain. The genesis block has a zero-height value and is thus directly linked to all subsequent blocks.
A blockchain explorer is a web-based software that allows you to watch and track the real-time activity on the blockchain of a specific cryptocurrency. Block explorers may be used for blockchain analysis, giving figures like total network hash rate, coin supply, transaction growth, etc.
A miner’s share of crypto-currency is awarded for processing transactions in a given block. Because the Bitcoin network’s security and stability are dependent on the creation (or “mining”) of blocks, the protocol contains a mechanism to encourage individuals to mine. Every time a block is added, the person who discovered it is rewarded with 12.5 BTC (this amount will change at the next halving in 2020).
Block size in blockchain technology refers to the quantity of data about transactions that a single block in the chain can contain.
The block time is the time it takes for a blockchain-based system to make a new block.
A block trade is a complex trade in which the buyer and seller of securities execute their transactions outside of an open market. It uses blockhouse, a financial middleman, to assist investors with risk management.
A mathematical structure for recording digital transactions or data in a tamper-proof, distributed, decentralized digital ledger made up of blocks linked by strong cryptography that is nearly difficult to fake, hack, or break.
The first generation of blockchain technology, known as Blockchain 1.0, focused on executing simple token transactions. Chains in Blockchain 1.0 are narrow in terms of scope and functionality.
The second generation of blockchain technology, called Blockchain 2.0, concentrated on allowing smart contracts and generalized processing functions. With the Turing-complete programming languages used in Blockchain 2.0, chains are created that have a broader range of capabilities than simple peer-to-peer (P2P) value exchange.
The next generation of blockchain technology, which is currently in vogue, emphasizes achieving greater interoperability and scaling with blockchain apps. Although Blockchain 3.0 has no pioneers today, the chains under development may improve smart contracts’ functionality.
People may exchange fiat money and bitcoins at this cash point.
A blockchain explorer is a search engine that allows users to explore blockchain.
Blockchain Transmission Protocol (BTP)
The Blockchain Transmission Protocol (BTP) is a protocol that allows isolated blockchains to operate as a fully decentralized settlement layer by securely anchoring transactions with a protocol that is applicable across the board.
The blockchain trilemma refers to blockchains’ three challenges: decentralization, security, and scalability.
The Bollinger Bands are a price analysis method that John C. Bollinger created to assist in recognizing systemic pattern recognition. In some instances, it is a brand that is plotted two standard deviations away from the simple moving average or exponential moving average.
Bored Ape Yacht Club
The most popular NFT collection has a floor value of $390,000 as of this writing. It launched in April 2021 and has since become a brand transcending the NFT community, with owners including Jimmy Fallon and Eminem.
A cryptocurrency bounty is a monetary incentive given to users who complete tasks assigned by a blockchain or project.
A blockchain connection enables the seamless movement of data or tokens between two separate blockchain projects.
Brute Force Attack (BFA)
A password or key that has been cracked through automated trial and error.
Bug Bounty is a bonus given for reporting flaws in computer software.
A bug exploit is a method of attacking a system’s flaws.
A “bullish” investor is confident in the market’s future price increases and is optimistic about the market.
In a bull market in cryptocurrency, stock markets, and other asset markets, the prices of assets rise significantly. Investors and customers benefit from the existence of these markets. This is not a fixed condition, although it may endure for months or even years. It is one of the most wanted terms in the blockchain glossary.
A bull run (also known as a bull trend) is a time in the financial market when certain assets’ values constantly rise.
A bull trap occurs when a regularly declining asset appears to reverse and rise but then resumes its decline.
Bitcoins and most other cryptocurrencies are “burned” by being delivered to a wallet that can only receive them but not send them. To create a deflationary influence, burn mechanisms are commonly used: the fewer tokens in circulation are, the rarer the ones investors own becomes.
Buy the dip
After the price of an asset falls, it’s often referred to as “buying on the dip.” An example is when a bitcoin holder might “buy the dip” if the price drops by $10,000.
Green and red candlesticks plot price trends in cryptocurrency graphs, showing green for a price rise and red for a price drop.
The most popular definition of capital is the huge sum of money you’d want to put into a business.
An algorithm combining proof of work and stake is called a consensus mechanism. Ethereum will utilize Casper as a steppingstone to proof of stake.
CeDeFi is a hybrid centralized-decentralized system that is interpreted as the fusion of CeFi and DeFi. It’s a novel approach that aims to combine the best elements of DeFi and CeFi to modernize conventional financial management. Binance, the world’s largest cryptocurrency exchange, has launched the DeCeFi movement with its Binance Smart Chain.
CeFi is a regulated financial service that provides one-stop purchasing and selling across multiple exchanges. CeFi aims to guarantee fair trades, enhance order processing and transaction volume, and increase other business activities.
Central Bank Digital Currency (CBDC)
The term “CBDC” refers to a group of central bank-issued digital currency proposals. Even though the term is not well-defined, it refers to a new type of central bank money.
One in which a single node or a few of them are in command of an entire network is referred to as a centralized organizational structure.
Centralized Exchange (CEX)
A centralized exchange (CEX) is a type of cryptocurrency market that is operated by a firm that owns it in a centralized way.
Certificate Authority (CA)
A single entity holds and maintains the public/private key pair in private key infrastructure.
Certificate of Deposit (CD)
A certificate of deposit (CD) is a financial service that allows consumers to earn a higher interest rate by investing.
Another term for cryptocurrency splits is “fork.” The splitting of a single starting currency into several distinct projects is known as a fork.
Changpeng Zhao (CZ)
Binance’s founder, Changpeng Zhao (CZ), is a Chinese entrepreneur who has invested in other cryptocurrency firms.
The total number of coins available to the public for trading in a cryptocurrency is known as the circulating supply. Cryptocurrency developers may lock, burn, or reserve some of their tokens, making them inaccessible for public trading.
Mining for fiat currencies requires significant hardware and electricity expenditures. Cloud mining firms seek to make mining available to everyone. Simply logging in to a website will allow you to invest money in a firm with mining data centers. The company handles the finances and invests the funds in mining equipment. Investors receive a share of the profits. Users are disadvantaged by cloud mining because it provides worse returns than traditional mining.
A coin is a personal, independent blockchain-based creation that represents the value of a digital asset.
Cryptocurrency wallet providers that do not hold your funds on their servers include online wallets, mobile apps, hardware non-custodial wallets (USBs), offline computers, and paper wallets.
Consensus is a procedure used by a blockchain network’s nodes to agree on the validity of transactions accepted onto the network. Proof of Work (PoW) and Proof of Stake are common consensus algorithms.
A majority mechanism is a fundamental technology that underlies all blockchain technology’s major features, making them an essential operating feature of every cryptocurrency.
ConsenSys is a blockchain technology firm that provides both developer platforms and enterprise solutions.
Consumer Price Index (CPI)
The CPI is a kind of index that measures the prices of a selection of goods and services to gain insight into consumer market segments.
A contract is a legal agreement between two parties in the traditional financial world. Smart contracts execute tasks on the blockchain in cryptocurrencies.
A contract account is a Bitcoin wallet with associated source code.
The term “CPU mining” refers to creating or mining cryptocurrency using a central processing unit (CPU).
Also known as “Spread Margin,” this margin technique utilizes the full amount of money in the available balance to avoid liquidations. Any realized profit and loss statement (P&L) from other positions may help you add a margin to a losing position.
Cross-chain technology allows information and value to be transmitted across blockchain networks.
Cryptocurrencies, also known as blockchain-based currencies or cryptocurrencies, are a new form of secure and decentralized money using blockchain technology.
Cryptocurrency Money Laundering
Cryptocurrency laundering is a technique criminals use to cleanse funds by converting fiat money into digital currency and sending it through numerous channels. It’s an attempt to avoid detection from any authorities who might be looking at the flow of funds. It is one of the most interesting terms in the blockchain glossary.
Exchanges use cryptocurrency pairs to enable the exchange of different cryptocurrencies.
Cryptographic Hash Function
Cryptographic hash functions take a variable-sized transaction input and generate a fixed-size hash value from it.
The study of cryptography, also known as ciphers or encryption, is a scientific method for safeguarding communications. Only the sender and receiver of messages can read them because these codes are secure.
CryptoPunks is a set of 10,000 8-bit characters published in 2017, considered the first-ever NFT collection.
In most general terms, money is any kind of currency used as a means of exchange. In simple words, currency refers to money in any form when it’s used as a medium of exchange. Every nation has its currency, such as the United States dollar is the currency of the United States.
Daedalus Wallet is a multi-platform, open-source, hierarchical-deterministic wallet that generates an infinite number of keys from a single seed.
A Digital Decentralized Autonomous Organization (DAO, pronounced like the Chinese term for “autonomous organization”) is a robust and adaptable organizational structure based on a blockchain.
Dead Cat Bounce
Dead Cat Bounce is price changes back to its original level, usually after a lengthy decline.
A bearish technical trading signal known as the death cross occurs when the 50-day moving average falls below the 200-day moving average, suggesting a large sell-off.
The transfer of power and authority from a central body, such as a government or political party, to an decentralized network.
Decentralized application (dApp)
dApps is an open-source software program with backend code running on a decentralized peer-to-peer network rather than a centralized server. The following are some other spellings: dApps, DApps, Dapps, and so on.
Decentralized exchange (DEX)
A decentralized exchange (also known as a smart contract-based cryptocurrency exchange) is a platform for trading cryptocurrencies that runs on the blockchain and uses smart contracts. The trading is direct peer-to-peer or between pools of liquidity. A centralized exchange, in contrast, is more like a bank or investment firm specializing in cryptocurrencies. Significant technical and regulatory distinctions between the two are constantly changing. It is one of the most interesting terms in the blockchain glossary.
Decentraland is a virtual world based on Ethereum that allows players to engage in various games and activities. It’s also one of the first movers to include metaverse as part of its core product, and it was one of the first communities to begin selling its land early through an LDA.
DeFi is a paradigm shift in the economy driven by decentralization, especially in blockchain networks. DeFi highlights the dramatic move from centralized and closed financial systems to open economies.
The process of removing an asset/stock/cryptocurrency from a trading exchange is called delisting.
A person’s or entity’s identifying information is used to identify them to a computer or network.
Users generate private keys, which are used to sign transactions digitally. Every time a transaction is sent on the blockchain, it is signed by the user’s private key. The signed transaction is broadcasted over the network and the user’s public key. Each miner may check the signature by comparing it to the public key.
A database has been designed to be distributed/multiplied across many nodes on a network. Blockchain is a type of decentralized ledger.
Billy Markus, an IBM software developer, and Adobe engineer Jackson Palmer launched a cryptocurrency as a joke in 2017. It has since grown to be one of the most successful cryptocurrencies ever developed, with a market capitalization of over $20 billion at the time of writing. The first meme coin is considered to be this. It is one of the most funny terms in the blockchain glossary.
Dominance is a Bitcoin value in terms of the larger cryptocurrency market.
EMA (Exponential Moving Average)
An exponential moving average (EMA) is a technical indicator that displays the most recent price changes and data points of an asset/stock/cryptocurrency while preserving earlier chart observations.
Encryption, in its most basic form, is the process of combining the text being encrypted (plaintext) with a shorter piece of data known as a “key” to generate an output (ciphertext). Someone with the key can “decrypt” the finished product into plaintext.
The use of distributed ledger technology for non-speculative commercial purposes is known as enterprise blockchain. These chains might be private or public, depending on the demands of businesses. It is one of the most promising terms in the blockchain glossary.
Enterprise Ethereum Alliance (EEA)
A collection of Ethereum core developers, companies, and enterprises collaborating to commercialize and utilize the Ethereum blockchain for various commercial purposes. Website here.
ERC-20 Token Standard
The formal name for ERC is Ethereum Request for Comment, and it follows the standard’s assignment number. The ERC-20 technical standard is a set of standards for smart contracts that establishes the criteria a token must meet to be legally permissible on the Ethereum network. This list of regulations specifies what qualities a token must possess to comply with and operate lawfully within the Ethereum network.
ERC-721 Token Standard
This is another Ethereum smart contract standard for non-fungible tokens, or NFTs. This token standard represents a unique digital asset that is not tradable.
Ethereum Virtual Machine (EVM)
Every smart contract is programmed with a Turing-complete virtual machine that lets the code execute exactly as intended; it’s the runtime environment for all smart contracts.
Exchange Traded Fund (ETF)
A security that is tracked by a basket of assets such as stocks, bonds, and cryptocurrencies but may be treated as a single stock.
A fan token is a cryptocurrency created by a sports team that allows its holders to participate in governance activities and get special benefits and discounts. It is one of the most popular terms in the blockchain glossary.
A faucet is a software that disburses cryptocurrency on test networks, but it may also be an incredibly basic or more complex website. Developers use these faucets to test dapps or smart contracts before putting them on the Ethereum Mainnet and users who want to try something out without taking risks. Test tokens dispensed by a faucet stay on the test networks and can’t be exchanged for real money.
The term “fiat money” refers to a currency backed by a central government with its own banking system, such as fractional reserve banking. It might be represented physically or electronically, such as by bank credit.
Fibonacci Retracement Level
The Fibonacci retracement approach utilizes a set of important numbers known as Fibonacci ratios to identify the support and resistance levels for an asset, stock, or cryptocurrency.
“FOMO” is an acronym for “Fear of Missing Out.”
A fork is a way to create an alternative blockchain, which is frequently done on purpose to apply upgrades across a network. Soft Forks produce two chains with some level of compatibility, while Hard Forks create a new chain that must be adopted to stay active. When it comes to a contentious Hard Fork, this may lead to the creation of two separate blockchain networks. See “hard fork” for further details.
Fundamental analysis is the most basic form of coin valuation that relies only on observed economic and financial data. The fundamental analysis also examines the underlying reasons behind project creation and market sentiments.
Traders make funding payments to one another regularly.
Fungibility is the degree to which one item may be substituted for another without an important difference in value being detected.
Play-to-earn (P2E) games, also known as free-to-play or free-to-win games, are a relatively recent phrase in gaming and cryptocurrency. It refers to games incorporating blockchain and cryptocurrency elements such as economic and financial autonomy for players to generate money.
The maximum amount you’re prepared to pay for any transaction through the Ethereum network is the gas limit. Another way of looking at it is a “rough estimate” of how much computing power your transaction will require.
The number of tokens to be charged as a fee for each unit of gas used by a smart contract’s function in the blockchain industry.
Electricity prices can be rapidly deployed to handle evolving bandwidth demands based on market conditions. It is one of the most hated terms in the blockchain glossary.
The term gem describes low-cap cryptocurrencies with a lot of potential or severely undervalued. It is one of the most wanted terms in the blockchain glossary.
The first block of data that is processed and validated to create a new blockchain, often known as block 0 or block 1.
A golden cross is a bullish technical trading indicator that indicates the imminent price rise of an asset, stock, or cryptocurrency when the 50-day moving average crosses the 200-day moving average.
The word “governance” describes people or organizations with decision-making authority over a project in the realm of cryptocurrencies.
Greater Fool Theory
Professor Burton Malkiel first introduced the greater fool theory. It implies that a “larger fool” will always be willing to buy an overvalued asset from you.
A green candle shows that the price has exceeded the opening value. The green candle signals market optimism at the time of the trade. A wide-body with a tiny tail on top suggests a strong upward trend in the market.
The value of GWEI is used to represent the cost of gas. As a reference, when GWEI is below 50, gas will be inexpensive, and when it’s above 100, it will be expensive.
Cryptocurrencies are digital assets with a finite quantity of coins in circulation, making them highly sought-after commodities. Bitcoin is one such example; the total number of Bitcoins that will ever be generated is 21 million. Every four years, the bitcoin creation rate is decreased by half.
Hard Fork updates the blockchain data in a public blockchain. All nodes in a network must upgrade and agree on the new version, which all nodes must download.
A hash is a function that transforms inputs into specific, yet seemingly random, outputs. Hash functions are utilized to identify data by producing hashes from it quickly.
HODL is used to encourage consumers to keep their tokens during a price decline. It is one of the most used terms in the blockchain glossary.
An online wallet is linked to the internet and has a high degree of risk. This is a hot wallet type when Bitcoin or Altcoins are kept at an exchange.
IBM’s private (permissioned) blockchain toolset.
The concept of immutability refers to data’s resistance to change. It’s a key feature of blockchain systems and ensures that data recorded on a blockchain ledger can’t have tampered with i.
ICO is the first sale of a blockchain currency or token. It is one of the most used terms in the blockchain glossary.
InterPlanetary File System (IPFS)
IPFS is a decentralized file storage and referencing system for the Ethereum blockchain. IFPS is an open-source protocol that allows storing and exchanging hypermedia (text, audio, and visual) in a distributed manner without relying on a single point of failure. Thanks to this distributed file system, applications may run faster, safer, and more transparently.
It’s a common programming language that’s been dubbed the blockchain space’s premier language.
“Joy of Missing Out.”
Know Your Customer (KYC)
Know Your Customer (KYC) checks are forms that crypto exchanges and trading platforms must complete to verify the identification of their clients. It is one of the most used terms in the blockchain glossary.
Layer 0 is the network structure that runs beneath the blockchain. It comprises protocols, connections, hardware, miners, and other components of the blockchain ecosystem’s foundation.
Layer 2 is a term used to describe a scaling technique that allows for high transaction volume while maintaining the blockchain’s security.
A ledger is a record or account maintained to track transactions. A blockchain network has many nodes, each of which has its copy of the ledger.
Lightning Network is a second-layer protocol that aims to alleviate Bitcoin’s scalability issue by allowing transactions to proceed more quickly.
The liquidity of a company or market is defined as the number of liquid assets available to it. An asset is deemed more liquid if it can easily convert into cash. The greater the ability to convert an asset into cash, the less liquid the asset. Stocks are considered relatively liquid assets since they may be quickly changed to money, whereas real estate is considered illiquid. The liquidity of an asset affects its risk potential and market price.
The primary network on which real transactions take place on a specific blockchain. The public blockchain for Ethereum, for example, is the mainnet.
A cryptocurrency trade is conducted using borrowed funds from a broker.
Market Cap is the market value of a firm’s outstanding shares, as determined by the total dollar value of a company’s outstanding shares. The market cap for a public corporation is the overall dollar value of a company’s issued shares. The total market capitalization reflects present inventory times the current price, while Bitcoin and Ethereum have total markets caps that reflect the existing amount combined with their current pricing. It is one of the most used terms in the blockchain glossary.
Market Order/Market Buy/Market Sell
A cryptocurrency is purchased or sold on an exchange at the current best price.
In the Meme Economy, memes are discussed in financial language as commodities or capital assets with various values, much like a meme economy.
Some cryptocurrencies aim to provide usefulness or purpose. Memecoins are useless and exist only as speculative assets. Dogecoin is the most well-known, but there are many others.
A data tree where each branch (leaf) has its unique identifier and every branch is labeled with all of the leaves and sub-branches on it, forming a complete data tree. This redundancy ensures that anyone with the tree can verify its genuine and consistent information by simply looking at the leaves.
In a conventional blockchain, the leaves of the Merkle tree are transactions, while the branches are blocks.
Users can store, send, and receive Ethereum using an online digital wallet that acts as an add-on to a standard browser.
The term “Metaverse” refers to a shared virtual world based on three-dimensional objects and virtual spaces that provide an interactive, collaborative, and immersive experience. The examples of the metaverse are apparent in massive online social games such as Fortnite or user-generated virtual worlds like Minecraft. It is one of the most used terms in the blockchain glossary.
The process by which new blocks are incorporated into a blockchain and transactions are verified. It’s also the mechanism through which brand-new bitcoin or alternative cryptocurrencies are generated.
A mining farm is when a group of miners mines together for various advantages, like energy use.
A mining pool is a group of miners who collaborate to share their processing power over a network and agree to share the rewards of a new block discovered in the pool.
The earnings that miners earn after finding and validating a block.
Mining equipment is a specialized computer system that performs the complex mathematical calculations necessary for cryptocurrency mining.
The term “minting” refers to validating data and recording it as a block on a blockchain. It is one of the most used terms in the blockchain glossary.
A moon occurs when the price of an asset rises dramatically. “To the moon” is a well-known expression.
The latest blockchain-powered idea, move-to-earn, is a concept that encourages users to be physically active by rewarding them with crypto tokens.
Moving Average (MA)
The moving average (MA) is a technical indicator that reacts to market trends and is used by market experts to forecast the future trend of an asset.
Node (full node)
A computer connected to the blockchain network is referred to as a node. A full node is a computer that can completely validate transactions and download the entire data of a specific blockchain. A “lightweight” or “light” node, on the other hand, does not have access to all pieces of data from a blockchain and uses a different validation.
“Fungibility” refers to an object’s capacity to be exchanged for another when talking about Non-Fungible Tokens (NFTs). For example, a single dollar is fungible because we can exchange dollars with one another. Paintings, sculptures, and masterpieces are generally considered non-fungible since they are often uneven in quality or value. It is one of the most used terms in the blockchain glossary.
An off-chain storage mechanism in which transaction data is kept outside the blockchain in a nonpublic location. In an off-chain system, transactions must be authorized. Off-chain transactions are more private and faster than on-chain alternatives.
On-chain is a mechanism for publicly accessible transaction data. Using this procedure, each node on the chain must examine the transition before it can be recorded in the network’s public ledger.
A software development firm based in California that develops enterprise-level systems. It is notable for having created the Java programming language, which millions of people worldwide have utilized.
Oracles are required to provide input for which there is no feasible alternative verification, such as temperature readings. Oracles typically rely on the trustworthiness of a credible source rather than the security of trustless computing.
OpenSea is a decentralized P2P marketplace for trading in unique digital assets, such as gaming items, artworks, and more. It is one of the most used terms in the blockchain glossary.
For example, the trading pair BTC/ETH. Trading between two cryptocurrencies is referred to as cross-chain trading.
Simulated trading, sometimes known as paper trading, is the act of conducting transactions in a simulated reality environment without utilizing real money.
P2P refers to interactions between two parties, usually two separate people. A P2P network may include any number of people. Individuals on a blockchain network can transact or interact with one another without depending on an intermediary or single point of failure.
The play-to-earn business model promotes an open economy and pays players who contribute value to the metaverse. It is one of the most used terms in the blockchain glossary.
A private blockchain is a blockchain in which only one business has control of the network.
Private Key/Secret Key
A private key is a string of numbers that, in MetaMask, represents one single-wallet account. Private keys function as a password that allows you to access your cryptocurrency account. Never disclose your private key to anyone because the holder of the secret controls the funds in your crypto account. You lose access to your crypto account if you misplace your private key.
A blockchain’s consensus mechanism, in addition to Proof-of-Work, ensures the integrity of the blockchain.
A blockchain uses a computationally intensive puzzle-solving mechanism to authenticate and validate transactions and create new blocks. A Proof-of-Stake (PoS) approach is similar but does not require miners to invest their own money. It is one of the most used terms in the blockchain glossary.
A “rug pull” is crypto or crypto-token-based fraud in which the token’s creators create hype by pumping liquidity into their currency, airdropping, and other methods, and when investors flood in and push the price of the token to a certain point, the creators sell their portion of the tokens, leaving their investors with almost nothing. It is one of the most used terms in the blockchain glossary.
Satoshi Nakamoto refers to the individuals or people who designed Bitcoin. It is one of the most used terms in the blockchain glossary.
Seed (phrase) / Secret Recovery Phrase
The seed phrase, mnemonic, or Secret Recovery Phrase is a crucial element of public blockchain technology, first developed for Bitcoin, and known by various names. They all refer to a set of ordered words representing values in order.
A secondary blockchain is a separate blockchain that has been established to connect to a primary blockchain. This adds more transaction processing pathways to the network, allowing for faster and larger transactions.
A smart contract is a computer program or code that allows two parties to exchange assets without needing an intermediary, commonly known as a transaction bridge, to mediate. It is one of the most used terms in the blockchain glossary.
Stablecoin is a cryptocurrency that keeps the price of the stablecoin steady compared to an asset or asset. Stablecoin is defined against a known quantity of an asset, so it remains constant.
Staking is a mechanism by which you can earn interest on your cryptocurrency holdings. In many cryptocurrencies, you may stake a lump sum of tokens in exchange for receiving a percentage of that sum at regular intervals for as long as the token is staked.
Soft forks are modifications to blockchain software that are backward compatible with prior/outdated versions. While older versions accept new blocks as valid, the newly forked code will see blocks produced by prior software as invalid.
The term “tokenization” refers to the translation of business goods, strategies, or services into discrete units that can be traded and recorded on a blockchain.
The Merge (Ethereum 2.0)
The merge is a scheduled network upgrade that will combine the Ethereum mainnet and the Beacon Chain, moving from proof-of-work consensus to proof-of-stake.
A token that is designed to provide a service or perform a task. These could be access to an application, a service, or a game. Filecoin, for example, provides access to blockchain-based digital storage and link connects smart contracts of off-chain data types.
The next stage on the Internet, as imagined by blockchain supporters, is Web3. The Internet was initially a read-only medium until around 2005. The arrival of content creators and bloggers marks the transition from Web2 to Web3. Imagine having your social media postings represented as NFTs, with ether instead of dollars as a global currency, and your wallet replacing your email address and password. It is one of the most used terms in the blockchain glossary.
A whale is a big cryptocurrency investor or trader.
A list of potential investors for cryptocurrencies and NFTs that have been pre-approved to buy the asset ahead of time. Whitelisted investors may purchase the asset before it becomes publicly available, usually at a reduced price. It is one of the most used terms in the blockchain glossary.
“We’re all going to make it.” It is one of the most used terms in the blockchain glossary.