A comprehensive dictionary of cryptocurrency terms and slang in plain language with 596 definitions, covering basic blockchain concepts, mining and consensus mechanisms, types of assets and tokens, trading, DeFi, security, Layer 2 solutions, and crypto slang. Use the section navigation and search form to quickly find the term you need.

No results found

Basic Concepts and Blockchain Architecture

Account Abstraction
an architectural approach in Ethereum that turns an account from a simple container of keys into a programmable object with built-in logic. Allows implementation of social recovery, batched transactions, and gas payment in tokens.
Adaptive State Sharding
a mechanism for the dynamic redistribution of data between shards depending on load. Automatically scales throughput without stopping the network.
Archive Node
a specialized full node that stores not only the current state but also all historical states of the blockchain. Necessary for deep analysis and data indexing.
AVS (Actively Validated Services)
protocols in the EigenLayer ecosystem that delegate security to existing validators. Allow startups to use shared stake.
Backend
the infrastructure hidden from the end user that ensures the application's operation, data processing, and business logic, the server. In the Web3 paradigm, the concept of backend is transformed: in fully decentralized networks its functions are taken over by the blockchain itself (smart contracts act as the server logic, and nodes as distributed servers). However, in practice most modern DApps use a hybrid architecture (Web2.5), where the traditional backend solves tasks that are too heavy for the blockchain: it indexes data, stores heavy media files in decentralized storage, manages oracles to deliver external data to smart contracts, and provides a REST/GraphQL API for aggregating information before sending it to the frontend.
BFT (Byzantine Fault Tolerance)
from the name of the Byzantine problem (Byzantine Generals Problem), the property of a distributed system to function correctly even in the presence of malicious or faulty nodes (up to a certain threshold). The theoretical foundation of consensus.
Bitcoin
the first decentralized cryptocurrency, created by Satoshi Nakamoto in 2009. Runs on Proof of Work with a limited supply of 21 million coins.
Bitcoin ATM
a physical device for buying and selling cryptocurrency for cash or cards. Requires identity verification and charges a fee higher than exchanges.
Block
a structural unit of the blockchain containing a batch of confirmed transactions, a timestamp, and the hash of the previous block, which guarantees the integrity of the entire chain.
Block Candidate
a block proposed by a validator or miner for inclusion in the chain. Passes consensus verification before confirmation.
Block Confirmation
the number of blocks added to the chain after the block containing the transaction. The more confirmations, the lower the risk of the operation being reversed. For Bitcoin, 6 confirmations, taking about 60 minutes, is considered sufficient.
Block Explorer
a web tool for exploring transactions, addresses, and blocks of a specific blockchain. Analogous to a search engine for the public ledger.
Block Header
the metadata of a block, including the software version, the hash of the previous block, the Merkle root, timestamp, difficulty, and nonce. Used by miners or validators to confirm the block's validity.
Block Height
the sequential number of a block in the chain, starting from the genesis block (zero height). Serves as a universal identifier of a transaction's position in the network's history.
Block Producer
a node responsible for collecting transactions and creating a new block. In PoW — a miner, in PoS — a validator.
Block Reward
the economic incentive for network participants (miners or validators), consisting of newly issued coins and transaction fees included in the found block.
Block Size
the maximum amount of data (in bytes or megabytes) that a single block can contain. This parameter directly affects network throughput and the degree of its decentralization.
Block Time
the average interval between the creation of two consecutive blocks in the network. Determines the speed of transaction confirmation and the finality of settlements.
Blockchain
a digital data registry structured as a sequential chain of blocks that are cryptographically linked to each other. The technology provides decentralized storage of information without the possibility of altering it retroactively.
Blockchain Tribalism
a social phenomenon of forming competing communities around different projects. Reinforces identity but hinders objective assessment of technologies.
Blockchain Trilemma
a concept by Vitalik Buterin stating that a blockchain cannot simultaneously maximize decentralization, security, and scalability; one property must always be sacrificed.
Border Nodes
nodes in mesh networks or L2 that handle interaction with external networks and bridges. Critically important for the security of cross-network transfers.
Bot (abbreviation of Eng. "robot")
an autonomous program that executes a predefined algorithm of actions without direct human involvement in each operating cycle. Key categories of crypto bots: trading bots, MEV bots (Maximal Extractable Value) — high-frequency search algorithms that scan the mempool for arbitrage opportunities, liquidations in lending protocols, and "sandwich attacks"; service bots in Telegram and Discord — tools for notifying about "whale" movements, price changes, on-chain analytics signals, and wallet management.
Censorship Resistance
the property of a blockchain network to process transactions without discrimination by participants or third parties. Ensured by decentralization and encryption.
Centralization
a management model in which power, data, or infrastructure is controlled by a single entity or a narrow group of people. In crypto it is often considered a risk of vulnerability and censorship.
Chain Split
the physical division of a blockchain into two independent networks as a result of a hard fork, when part of the community refuses to accept the new rules.
Cloud Mining
a service for renting computing power from a provider for mining without buying equipment. Profitability depends on hashrate and fees.
Cold Storage
storage of crypto assets on devices without a constant internet connection. Hardware wallets and paper media.
Confirmation
validation of a transaction by the network through inclusion in a block. The number of confirmations determines the irreversibility of the operation.
Consensus
from Lat. consensus (agreement), a set of rules and algorithms that allow independent network nodes to reach agreement on the single true state of the ledger without trusting each other.
Consensus Mechanism
an algorithm for reaching agreement among independent nodes about the state of the registry. Determines the network's security, speed, and energy consumption.
Consortium Blockchain
a blockchain managed by a pre-approved set of nodes (banks, corporations). Combines elements of decentralization with participant control.
Contract
in a crypto context most often a smart contract: self-executing program code deployed in the blockchain that automatically executes the agreed terms of a deal. Unlike a traditional legal contract, a smart contract does not require third parties for enforcement.
Contract Account
an account managed by smart contract code. Has no private key, is activated only by incoming transactions, and executes the embedded logic.
Corporate Blockchain
private or consortium solutions for business, optimized for internal processes. Focused on efficiency rather than decentralization.
Crypto Protocol
a set of rules and algorithms defining the operation of a blockchain network or decentralized application. Includes consensus, encryption, and message format.
Custody
a service for holding crypto assets by a third party. Can be custodial (the exchange is responsible for security) or non-custodial.
DAO Summoning
the process of initiating the creation of a DAO, including deploying contracts and recruiting initial participants. Determines the organization's initial parameters.
Decentralization
an architectural principle in which control over the system, data, and decision-making is distributed among many independent participants rather than concentrated in a single center.
Decentralized Governance
a decision-making model through voting by token holders without a central authority. Ensures transparency but may suffer from low turnout.
Deploy
the process of publishing and activating program code in a target execution environment. In the context of blockchain and cryptocurrency, the term has several specialized meanings: (1) deployment of a smart contract — a transaction that places the compiled bytecode of the contract in the blockchain; (2) deployment of a node or validator — installation and launch of a full-function network node to participate in consensus, validate transactions, or provide an RPC interface; (3) deployment of a DApp or protocol to the mainnet. In classic IT infrastructure, deploy means deploying a web application or service to a production server.
Distributed Ledger
a database synchronized among many independent nodes. Blockchain is a special case of DLT.
Distributed Ledger Technology / DLT
a general term for distributed data storage technologies in which the ledger is synchronized among many independent nodes. Blockchain is only one type of DLT.
EOA (Externally Owned Account)
an account managed by the user's private key. Can initiate transactions but contains no executable code.
Erasure Coding
a data storage method in which outdated fragments are automatically deleted to save space. Used in some L2 and archive nodes.
Escrow Contract
a specialized smart contract that locks digital assets at an intermediate address until predefined conditions are met or confirmation is received from authorized parties. Unlike classic escrow, where a trusted third party (bank, notary, lawyer) acts as guarantor, in the blockchain this function is taken over by immutable program code.
Ethereum Mainnet
the base layer (Layer 1) and main production blockchain network of the ecosystem, where transactions with real financial value are recorded and smart contracts are executed. Unlike test environments, assets and actions in the mainnet have economic significance.
EVM (Ethereum Virtual Machine)
from Ethereum Virtual Machine, the standard Ethereum virtual machine that has become the de facto industry standard for executing smart contracts. Supported by many L1 and L2 networks.
Fork
a change to the blockchain protocol that leads to a divergence of the chain. It can be a planned update or the result of an irreconcilable conflict in the community.
Framework
a standardized infrastructure platform and set of libraries that defines the architectural skeleton for software development and handles routine low-level tasks. The key difference between a framework and an ordinary library is inversion of control: it is not the developer's code that calls the framework's functions, but the framework itself that manages the execution flow, dictating strict rules for organizing the architecture.
Fraud Proof
a mechanism in Optimistic Rollup that allows participants to challenge a suspicious block during the challenge period. Guarantees validity without daily proofs.
Frontend
the user interface and interaction logic of an application running on the client side (in a browser or mobile app). In the Web3 ecosystem, the frontend of decentralized applications (DApps) not only displays data but also provides cryptographic communication with the blockchain: it integrates non-custodial wallets (e.g., MetaMask or Rabby) for transaction signing and uses specialized libraries (ethers.js, viem, web3.js) to read smart contract state and send transactions to the network.
Full Node
a node that downloads and verifies the entire blockchain history from the very beginning. Independently verifies all consensus rules and does not trust other participants.
Fungibility
the property of an asset in which each unit is equivalent to any other of the same nominal value. Bitcoin has limited fungibility due to the transparency of its history.
Gas
a unit of measurement of the computational effort required to execute operations in EVM-compatible networks. Separates the cost of computation from the price of the native coin.
Gas Limit
the maximum amount of gas the user is willing to spend on executing a transaction. Protects against infinite loops and unforeseen costs.
Gas Price
the cost of one unit of gas in the network's native currency that the user is willing to pay. Determines the priority of a transaction in the mempool queue.
Genesis Block
the first block in any blockchain, created manually by the developer. It has no reference to a previous block and often contains a symbolic message or the initial parameters of the network.
Gwei
a denominated unit of ether (1 Gwei = 0.000000001 ETH), traditionally used to indicate gas price due to the convenience of perceiving small values.
Hard Fork
a non-backward-compatible change to the protocol rules that requires updating all nodes. Often leads to the creation of a new independent chain (e.g., Bitcoin Cash).
Hash
the result of a cryptographic hash function, an algorithm that transforms input data of arbitrary size (a message, file, or transaction) into a unique fixed-length string called a hash sum.
Hash
the result of a one-way cryptographic function that transforms an arbitrary array of data into a fixed string of characters. Any change to the source data completely changes the hash, which is used to verify integrity.
Hash Rate / Hashrate
the computing power of equipment or an entire network, measured in the number of hash operations per second. A key security indicator of Proof of Work networks.
Heavyweight Wallet
a wallet with full blockchain validation and additional audit functions. Requires significant resources but provides maximum security.
Hot Storage
storage of crypto assets on devices with internet access (wallets, exchanges). Convenient for frequent operations but increases the risk of cyberattacks.
Immutability
from Lat. immutabilis (unchanging), the property of a blockchain that guarantees that once recorded and confirmed, data cannot be deleted or altered without the consent of the majority of the network and colossal computational costs.
Interoperability
the ability of different blockchain networks to exchange assets, data, and messages without centralized intermediaries.
L2-rollup
a blockchain scaling technology that aggregates ("rolls up") hundreds or thousands of transactions, executes them outside the main blockchain, and publishes only compressed data and a cryptographic proof of correct execution to the base layer (L1).
Ledger
a system for recording transactions. In crypto — a distributed blockchain that ensures immutability and transparency.
Light Node
a node that stores only block headers and requests full data from other nodes as needed. Suitable for mobile devices and resource-constrained wallets.
Mainnet
the working version of a blockchain where real transactions with economic value are processed. Contrasted with test networks.
Masternode
a privileged node in some blockchains that performs additional functions (e.g., private transactions or governance) and requires locking a significant amount of coins as collateral.
Mempool
a buffer zone of pending unconfirmed transactions before their inclusion in a block. Miners select transactions from it, usually prioritizing those with higher fees.
Merkle Root
from the name of the inventor Ralph Merkle, the single hash at the top of the Merkle tree that summarizes all transactions in the block. It is written into the block header for compact integrity verification.
Merkle Tree
from the name of the inventor Ralph Merkle, a tree-like data structure in which each leaf is the hash of a transaction and each branch is the hash of a pair of child nodes. Allows efficient and secure verification of the presence of a specific transaction in a block.
Nakamoto Consensus
from the surname of Bitcoin's creator (Satoshi Nakamoto), the Proof of Work consensus algorithm in which the validity of a block is determined by the majority of computational power. Solves the double-spending problem in the absence of trust.
Network
the totality of all active nodes, protocols, and rules that ensure the functioning of a specific blockchain and data exchange between participants.
Node
a computer or device connected to a blockchain network that stores a copy of the ledger and participates in verifying, transmitting, or creating blocks.
Non-regulated Ledger
an ecosystem that does not fall under the regulatory restrictions of traditional financial institutions. Most often decentralized.
Nonce
a unique numeric value in the block header that miners iterate through to obtain a hash satisfying the network's difficulty condition. It is proof of the computational work performed.
Off-chain
operations and data processed outside the main blockchain to reduce load. Require on-chain finalization mechanisms.
On-chain
operations and data occurring directly in the blockchain and recorded in the ledger. Unlike off-chain solutions, provides maximum security.
Open Source (open source code)
a software development model in which the project's source code is freely available and can be studied, modified, and distributed by any user. In the context of blockchain and cryptocurrency, open source is the foundation of decentralized trust: it allows independent researchers and the community to verify cryptographic algorithms, smart contracts, and consensus mechanisms for vulnerabilities or hidden backdoors, implementing the principle of "trust, but verify".
Orphan Block
a valid block that was found but not included in the main chain because another block was accepted by the network earlier. The reward for it is canceled.
P2P (Peer-to-Peer)
a network architecture in which all participants are equal and interact directly without a central server. The basis of communication in blockchain networks.
Parallel Transaction Processing
an architectural approach in which multiple transactions are processed simultaneously in different threads or shards. Increases throughput.
pBFT (Practical Byzantine Fault Tolerance)
a concrete implementation of the BFT algorithm, optimized for performance in asynchronous networks. Used in some permissioned and PoS blockchains.
Permissionless
the property of a network where anyone can participate without prior permission. The foundation of public blockchains.
Premine
the generation of part of the coin issuance by the project team before the mainnet launch. Often criticized for unfair distribution.
Protocol
a set of formal rules defining the format and order of interaction between network nodes. A fundamental concept of network technologies.
Proxy
in Web3 architecture and smart contracts a multifaceted term describing an intermediary entity that delegates actions or requests. Its most critical application is the "proxy contract" pattern, which solves the fundamental problem of blockchain immutability. Since the deployed smart contract code in the network cannot be changed, proxy architecture separates the contract into two parts: the proxy (stores state and user balances) and the implementation (contains business logic). The proxy redirects calls to the current implementation version. When an update is needed, developers change the implementation address in the proxy, preserving all historical user data.
Pseudonymity
the principle of identification in public blockchains, where users act under cryptographic addresses rather than real names. At the same time, the history of operations remains open.
Public Blockchain
a blockchain open for reading and participation to all who wish, without a central administrator. Examples: Bitcoin, Ethereum.
Reorg / Reorganization
the process of replacing one or more of the latest blocks in the canonical chain with an alternative branch with greater cumulative difficulty or stake. Transactions in the rejected branch return to the mempool.
Scalability
the ability of a blockchain network to increase throughput and reduce costs as the number of users grows without harming security and decentralization.
Secured Ledger
a blockchain with additional security measures, including phased deployment and automated contract testing. Implies a proven infrastructure.
Shard
a horizontally allocated segment of a distributed database or blockchain network that stores and processes a subset of the overall state (for example, a specific set of accounts, smart contracts, or transactions). In blockchain architecture, a shard functions as an autonomous chain with its own validators, allowing the network to process transactions in parallel rather than sequentially.
Sharding
a method of horizontal scaling of a blockchain network or distributed system, which consists of dividing a single data registry into several independent parts (shards). Unlike traditional L1 networks, where every node must store and verify absolutely every transaction in history (which creates a "bottleneck" as load grows), sharding distributes computational tasks and the stored data volume among groups of nodes.
Smart Contract
an autonomous computer program deployed in the blockchain that automatically executes the terms of an agreement upon the occurrence of specified events without intermediaries.
Soft Fork
a backward-compatible protocol update: old nodes continue to accept new blocks but cannot use the new features. If part of the nodes do not update, a soft fork can lead to a split of the chain into two branches.
State
the complete set of all balances, smart contract data, and protocol parameters at a specific moment in time. Stored in the State Trie structure.
State Transition
a deterministic function that takes the current state and a transaction and returns a new correct state. The basis of consensus in account-based blockchains.
Taproot
a large-scale Bitcoin protocol upgrade activated in November 2021 that combined three improvement proposals (BIP340, BIP341, BIP342). Key architectural changes: the introduction of Schnorr cryptography (replacing ECDSA), which allows aggregating multiple signatures into one, and the use of MAST (Merkelized Abstract Syntax Trees). The main innovation of Taproot is a construction that allows hiding complex smart contracts: if all participants agree, spending occurs via the "key path" and looks like a normal transaction, while the "script path" is revealed only in case of a dispute. This radically improved privacy, reduced fees for complex scenarios, and laid the cryptographic foundation for the flourishing of L2 solutions (Lightning Network) and subsequent innovations such as Ordinals.
Testnet
a parallel copy of the mainnet used by developers for experiments and debugging without the risk of losing real funds. Its coins have no value.
Token Locking
a mechanism for the temporary locking of tokens in a smart contract to participate in promotions, staking, or governance. Guarantees a predictable issuance model.
Token Sale
any primary placement of tokens to raise funding. Includes ICO, IEO, IDO, and other formats.
Transaction
an atomic operation that changes the state of the blockchain (transfer of funds, contract call), signed with the sender's private key and awaiting inclusion in a block.
Transaction Fee
a fee paid by the user to miners or validators for processing and including the transaction in a block. Depends on network load and data size.
Transparency
the ability of any network participant to independently verify the history of all transactions and the state of the ledger through public block explorers.
Turing Completeness
from the name of Alan Turing + complete (complete), the ability of a system to perform any computation that a Turing machine can. The Ethereum EVM is Turing-complete, which allows complex logic but requires a resource-limiting mechanism (gas).
Uncle Block
a term in Ethereum for orphaned blocks that still receive a partial reward for their contribution to network security, despite not being included in the main chain.
Validator Node
a node in Proof of Stake networks that is responsible for proposing new blocks and voting on their validity, risking its own deposit (stake).
Verkle tree
a cryptographic data structure for storing and verifying blockchain state, in which classic hash trees are replaced by vector commitments (most often based on KZG polynomial schemes). The main architectural difference from a traditional Merkle tree is that the size of the cryptographic proof of existence of a specific element does not depend on the width or depth of the tree.
Virtual Machine
an isolated execution environment for smart contracts inside each blockchain node. Guarantees a deterministic result of code execution regardless of hardware.

Mining and consensus mechanisms

ASIC (Application-Specific Integrated Circuit)
a specialized microchip designed exclusively for mining a specific algorithm. It provides maximum hashrate but lacks versatility.
Bakers
participants in the consensus of the Cosmos network (Cosmos Hub) who create blocks and validate transactions. They earn fees and staking rewards.
Beacon chain (Beacon Chain)
the coordination layer in Ethereum PoS that manages the validator registry, slot assignment, and block finalization.
Coinbase transaction (generation transaction)
a special first transaction in every new block of a Proof-of-Work blockchain (e.g., Bitcoin). Its fundamental function is the primary issuance of new coins (block reward) and their transfer to the miner who successfully solved the cryptographic puzzle, together with the sum of all transaction fees included in that block.
CPU Miner
software for mining on central processors. Less efficient but universal for ASIC-resistant algorithms.
CPU mining (CPU Mining)
mining using central processors. Relevant only for algorithms specifically designed to resist specialized equipment.
Delegated staking (Delegated Staking)
the transfer of validation rights to another participant without transferring control over the assets. Delegators receive a share of the validator's reward.
Difficulty adjustment (Difficulty Adjustment)
an algorithm for the automatic recalculation of mining difficulty at set intervals, compensating for changes in the network's total hashrate.
DPoS (Delegated Proof of Stake)
a variant of PoS where token holders vote for a limited number of delegates who produce blocks on behalf of the entire network. It increases speed but reduces decentralization.
Epoch (Epoch)
a fixed period of time or number of slots in PoS networks, at the end of which the validator set is updated and rewards are paid.
Full Pay-Per-Share (FPPS)
a reward calculation method in a mining pool that includes transaction fees from each found block. A maximally transparent scheme.
GPU
a specialized chip for parallel computations. The main equipment for mining ASIC-resistant algorithms.
GPU mining (GPU Mining)
the use of graphics processors to mine ASIC-resistant algorithms. A more flexible but less efficient mining method.
Halving (Halving)
a programmed event that reduces the block reward by half after a certain number of blocks. The main inflation-control mechanism in Bitcoin. Detailed article about halving.
Hashrate
a measure of the computational power of the network or an individual mining device, measured by the number of hash operations (computations of a cryptographic hash function) performed per second.
Hybrid PoW/PoS
a consensus mechanism combining Proof of Work for block production and Proof of Stake for their validation. It reduces energy consumption compared to pure PoW.
Liquid Proof of Stake (LPoS)
a variant of delegated staking where holders retain token liquidity while participating in validation. Characteristic of Tezos and Cosmos.
Liquid staking (Liquid Staking)
protocols that issue a derivative token (LST) in exchange for staked assets. It allows staked capital to be used in DeFi while retaining yield.
Mineable
a characteristic of a cryptocurrency that supports mining as a mechanism of issuance and consensus. Contrasted with premined.
Miner (Miner)
a participant in a PoW network who provides computational resources to find blocks and receives a reward for successfully solving a cryptographic puzzle.
Mining (Mining)
the process of using computational power to find a valid block hash, confirm transactions, and issue new coins in Proof of Work networks.
Mining Contract
an agreement for a share of hashrate from a cloud mining provider. It fixes profitability but requires verification of transparency.
Mining farm / Mining rig (Mining Rig)
a collection of many mining devices. Usually includes graphics cards or ASIC chips.
Mining pool (Mining Pool)
a union of miners for joint block search and proportional reward distribution. It reduces income variance for individual participants.
Network difficulty (Difficulty)
a dynamic parameter that determines how hard it is to find a valid block hash. It is automatically adjusted to maintain stable block time.
Pay-Per-Last N Shares (PPLNS)
a payout scheme that counts only shares submitted within the window of the last found block. It incentivizes miner loyalty.
Pay-Per-Share (PPS)
a payout scheme to a mining pool for each valid hash, regardless of the outcome of block search. Guarantees stable income.
PoA (Proof of Authority)
a consensus mechanism where the right to validate is granted to a pre-approved list of trusted nodes based on their reputation. Used in private and test networks.
PoB (Proof of Burn)
a consensus mechanism in which participants "burn" coins by sending them to an irrevocable address and gain the right to mine or validate proportionally to the destroyed value. It is considered an alternative to energy-intensive PoW.
PoC (Proof of Capacity)
a consensus mechanism that uses pre-computed solutions (plots) stored on a hard drive for fast block search. It reduces energy consumption during mining compared to PoW.
PoET (Proof of Elapsed Time)
a consensus mechanism for permissioned networks, where the waiting time is generated in a trusted execution environment (TEE). Honesty is guaranteed by hardware.
PoH (Proof of History)
a cryptographic construction that creates verifiable passage of time through sequential hashing. It accelerates consensus but is not a standalone security mechanism.
Pool mining
the union of miners to jointly search for blocks, distributing the reward proportionally to Contribution. It reduces income variance.
PoS (Proof of Stake)
a consensus mechanism where the probability of creating a block is proportional to the amount of locked coins (stake) and the time they are held. An energy-efficient alternative to PoW.
PoSA (Proof of Staked Authority)
a hybrid of PoS and PoA where validators are elected by staking rather than only by reputation. Used in BSC.
PoW (Proof of Work)
a consensus mechanism where the right to create a block goes to the participant who solved a complex cryptographic puzzle. Security is ensured by the economic costs of electricity and equipment.
Proof of Developer (Proof-of-Developer)
a mechanism for confirming a project's real existence through verification of its creators' activity. An early indicator of legitimacy.
Proof of Space and Time
a consensus mechanism that uses free disk space and proof of data storage over time as a resource to secure the network (e.g., Chia).
Restaking (Restaking)
the reuse of already staked assets (or LST) to simultaneously secure additional protocols and services. It increases yield but also slashing risks.
Sharding
a method of horizontal scaling of a blockchain network or distributed system that consists of dividing a single data registry into several independent parts (shards). Unlike traditional L1 networks, where every node is obliged to store and verify absolutely all transactions in history (creating a "bottleneck" as load grows), sharding distributes computational tasks and stored data volume among groups of nodes. A classic example is the architecture of Zilliqa or the original Ethereum 2.0 plan, although in practice the industry (including Ethereum) has shifted focus from execution sharding to data availability sharding in combination with L2 solutions (rollups) that take on the main load of transaction processing.
Sidechain (Sidechain)
an independent blockchain running in parallel with the main network and connected to it by a two-way bridge. It has its own consensus and security parameters.
Slashing (Slashing)
a mechanism for punishing validators for violating protocol rules (downtime, double signing) by confiscating part of their stake.
Slot (Slot)
the minimal unit of time in PoS consensus, during which the assigned validator has the right to propose a new block.
Solo Staker
a validator operating independently, without attracting delegated funds. Requires sufficient stake and technical competence.
Staking (Staking)
the process of locking cryptocurrency in a protocol to participate in consensus and earn passive income. It serves a security function similar to mining in PoW.
Super Staker
a professional validator with a high reputation who accepts delegated funds. It increases the efficiency of staking in the network.
Validator (Validator)
a participant in a PoS network who has locked up coins and is responsible for verifying transactions and creating blocks. Bears financial risks for dishonest behavior.

Assets, Tokens and Tokenomics

Airdrop
from the English "air drop", the free distribution of tokens to users for performing certain actions or activity criteria. A tool for marketing and decentralized ownership.
Algorithmic Stablecoin
from the English "algorithmic" + "stablecoin", a stablecoin that maintains its peg solely through supply-control algorithms without full backing. Historically high-risk.
Alpha (alpha return)
from the English "alpha", the excess return of a portfolio over its benchmark index. Achieved through information analysis or market structure.
Altcoin
from the English "alternative" + "coin", a general term for all cryptocurrencies except Bitcoin. Includes both technological innovations and speculative assets.
Anomalous return
a statistically significant deviation of actual return from expected return. Indicates an unexpected event or change in fundamental conditions.
ARC-20
an asset tagging protocol on Bitcoin via Atomic Ordinals systems. Allows embedding metadata into transactions.
BEP-1155
a multi-token standard on BSC supporting fungible and non-fungible assets in a single contract. Efficient for games and marketplaces.
BEP-2
from "Binance Chain Evolution Proposal", a technical standard for tokens on Binance Chain. Simpler than ERC-20.
BEP-20
a token standard in BNB Smart Chain, fully compatible with ERC-20 but running on Binance's cheaper and faster network.
BEP-721
a non-fungible token standard on Binance Smart Chain. Similar to ERC-721.
BEP-95
a mechanism for real-time BNB burning on BSC via transaction fees. Algorithmically controls deflation.
Blue-chip tokens
from the English "blue chips", high-capitalization tokens with a proven track record and liquidity (BTC, ETH). Analogous to blue chips on the stock market.
BNB
from "Build and Build", the native token of Binance Smart Chain. Used for fees, staking, and governance.
BNSOL
Binance's liquid staking token for Solana. Issued to users when depositing SOL into Binance Staking.
BRC-20 tokens
an experimental token standard on Bitcoin via Ordinals. Has limited functionality and sparks debates about optimal blockchain usage.
BToken
a token of the BTSE platform, used for trading and receiving exchange discounts.
cc0 NFT
an NFT in the public domain with a waiver of copyright via the Creative Commons Zero license. Completely free to use.
Central Bank Digital Currency (CBDC)
from the English "Central Bank Digital Currency", a digital form of national currency issued by the central bank. Combines electronic efficiency with state control.
Circulating Supply
from the English "circulating" + "supply", the number of tokens freely circulating in the market. Excludes locked, reserved, and burned coins.
Cliff
from the English "cliff", the initial vesting period during which tokens are not unlocked at all. After the cliff comes the first major unlock.
Coin
from the English "coin", the native asset of its own blockchain, used to pay fees and secure the network (e.g., BTC, ETH). Does not depend on another platform.
Composite Token
from the English "composite", a token whose value depends on a basket of assets or an index. Provides diversification.
Crypto-Collateralized Stablecoin
from the English "crypto" + "collateral", a stablecoin backed by overcollateralization in cryptocurrencies via smart contracts. Decentralized but exposed to liquidation risks if the collateral drops.
Cryptocurrency
from the English "crypto" + "currency", a digital asset functioning as a medium of exchange based on cryptography and a decentralized network. Not issued by a central bank. Detailed article on what cryptocurrency is.
Debt obligation (IOU)
from the English "I Owe You", proof of a debt; in crypto, a token or record of a debt. May be centralized or decentralized.
Deflationary model
from the English "deflationary", a tokenomics in which supply shrinks over time (via burning or buyback), creating scarcity at stable demand.
Depeg
from the English "de-" + "peg", a deviation of a stablecoin's price from its target rate. May be caused by insufficient collateral, panic, or an attack.
Digital currency
an umbrella term for electronic money, including both centralized (CBDC) and decentralized (cryptocurrency) forms.
Equity
funds belonging to a project after covering all liabilities. In DeFi it shows the protocol's solvency.
ERC-1155
from the English "Ethereum Request for Comments" + "1155", a multi-token standard in Ethereum allowing management of both fungible and non-fungible assets in a single contract. Efficient for games.
ERC-20
from the English "Ethereum Request for Comments" + "20", the basic standard for fungible tokens in the Ethereum ecosystem. Defines mandatory functions for compatibility with wallets and exchanges.
ERC-223
an extended Ethereum token standard with protection against sending to a contract without a handler. Improved security compared to ERC-20.
ERC-404
an experimental standard for partially fungible tokens (semi-fungible). Combines properties of ERC-20 and ERC-721.
ERC-721
from the English "Ethereum Request for Comments" + "721", the standard for non-fungible tokens (NFTs) in Ethereum. Each token has a unique ID and metadata.
ERC-777
an improved Ethereum token standard with support for operators and hooks for automation. Backward compatible with ERC-20.
ERC-827
an extension of ERC-20 that allows passing data together with tokens within approve and transfer.
ERC-884
a standard for stock tokens in Ethereum with mandatory compliance requirements. Automatically verifies regulatory compliance.
ERC-948
an Ethereum subscription token standard. Defines an interface for recurring payments and managed subscriptions.
Ethereum Classic (ETC)
the original Ethereum chain continued after the 2016 hard fork (DAO hack). Preserves the principle of blockchain code immutability.
Fan token
from the English "fan" + "token", a token for interacting with sports or entertainment brands. Usually grants access to exclusive content and voting.
Faucet
from the English "faucet", a web service that distributes small amounts of cryptocurrency for free. Used to attract newcomers and test networks.
Fiat-Collateralized Stablecoin
from the English "fiat" + "collateral", a stablecoin backed by fiat currency reserves at a 1:1 ratio held by a custodian (e.g., USDT, USDC).
Flux (FLUX)
a decentralized cloud computing network providing computational resources for dApps. A competitor to Akash and Render.
Fully Diluted Valuation, FDV
from the English "fully" + "diluted" + "valuation", an estimate of the project assuming all planned tokens are issued at the current price. Shows potential future capitalization and selling pressure.
Fungible Token
from the English "fungible" + "token", a token whose units are mutually interchangeable (ETH, USDC). The opposite of an NFT.
Gold-backed cryptocurrency
a digital asset backed by physical gold reserves. Each token unit is confirmed by bullion held by a custodian.
Governance Token
from the English "governance" + "token", a token granting voting rights in a DAO or protocol for decisions on project development, treasury allocation, and parameter changes.
Howey Test
a legal criterion from the SEC v. W.J. Howey Co. (1946) precedent that determines whether an asset is a security. In crypto it is used by regulators to assess token status.
ICO (Initial Coin Offering)
from the English "Initial Coin Offering", the primary token placement conducted by a project independently via a smart contract. Popular in 2017–2018, now less common due to regulatory risks.
IDO (Initial DEX Offering)
from the English "Initial DEX Offering", a decentralized primary token placement via liquidity pools on a DEX. Ensures instant listing and fair price discovery.
IEO (Initial Exchange Offering)
from the English "Initial Exchange Offering", a token placement conducted on a centralized exchange platform, which acts as a guarantor and performs KYC on participants.
Inflationary model
from the English "inflationary", a tokenomics in which supply constantly grows through new issuance. Requires a constant inflow of demand to maintain price.
Inscription
from the English "inscription", a method of writing data onto a unit of cryptocurrency (especially satoshis in Bitcoin via Ordinals). Enables the creation of NFTs and BRC-20 tokens.
Liquid Staking Tokens (LST)
from the English "Liquid Staking Token", a derivative token issued in exchange for staked assets. Allows the capital to be used in DeFi.
Market Capitalization
from the English "market" + "capitalization", the product of the asset's current price and circulating supply. The main metric for comparing the relative valuation of crypto assets. Detailed article on cryptocurrency capitalization.
Max Supply
from the English "maximum" + "supply", the absolute limit of tokens that will ever be created according to the protocol. May be absent in inflationary models.
Meme Coin
from the English "meme" + "coin", a cryptocurrency created based on an internet meme or joke, whose value is determined mostly by community attention rather than fundamental utility.
Microtransactions
from the English "micro" + "transaction", financial operations with small amounts that are uneconomical under traditional fees. Solved via L2s and state channels.
Mint
from the English "mint", the process of creating a new digital asset (token, NFT, stablecoin) and its initial recording on the blockchain by calling the corresponding smart contract function.
Native Token
from the English "native" + "token", the built-in currency of a blockchain, required to pay for gas and staking. Exists at the protocol level, not the smart contract level.
NFT (Non-Fungible Token)
from the English "non-fungible" + "token", a unique digital ownership certificate recorded on the blockchain. Non-interchangeable, unlike ordinary tokens.
NFT Floor Price
from the English "floor" + "price", the minimum price of an NFT in a specific collection on a marketplace. An indicator of liquidity and market sentiment.
ORC-20 tokens
an improved token standard on Bitcoin that solves BRC-20 problems through a better ownership model and smart contracts.
Ordinals
from the English "ordinal", a numbering protocol and standard proposed in January 2023 that assigns a unique ordinal number to each individual satoshi in the Bitcoin network. By tracking the transfer of satoshis from input to output (UTXO) according to FIFO (First-In, First-Out) rules, the protocol allows identifying specific BTC units and "embedding" arbitrary data (images, videos, HTML code) into them. Technically this became possible thanks to the SegWit and Taproot upgrades, which increased the data limit. Ordinals effectively created a native non-fungible token (NFT) standard in Bitcoin's base layer, which sparked a surge of network activity, rising miner fees, and sharp debates about the permissibility of "spam load" on a blockchain positioned as digital gold.
Peg curve
a graphical representation of the algorithm that maintains a stablecoin's peg, usually by changing supply depending on price deviation. A basic element of stablecoin economics.
Pegged currency
an asset whose rate is fixed relative to a base asset (fiat, commodity, another cryptocurrency) through a collateral mechanism or algorithm.
Privacy Coin
from the English "privacy" + "coin", a cryptocurrency with built-in mechanisms to hide the sender, recipient, and transaction amount (Monero, Zcash).
Recursive inscription
an inscription that references other inscriptions or shares content with them, improving storage efficiency and interaction. Within the Ordinals protocols.
Roadmap
from the English "road" + "map", a public plan for project development with stages and approximate timelines. An indicator of the team's ambition and discipline.
Runes
from the English "rune" (a secret symbol), a protocol for issuing native fungible tokens on the Bitcoin network, launched by Ordinals creator Casey Rodarmor simultaneously with the Bitcoin halving in April 2024 (at block 840000).
RWA (Real World Assets)
a class of digital blockchain tokens representing tokenized rights to traditional financial or physical assets existing outside the crypto ecosystem. Unlike ordinary crypto assets, the value of RWAs is backed by real objects: treasury bonds, corporate debt, real estate, commodities (gold, oil), or art.
Security Token
from the English "security" + "token", a digital asset representing ownership rights to an external asset (shares, real estate, debt) and subject to securities regulation.
SPL
from "Solana Program Library", a standard for tokens and programs in the Solana ecosystem. Includes SPL Token and SPL Token-2022 with extended capabilities.
SPL Token
a token standard in the Solana Program Library ecosystem. Characterized by high speed and low creation cost.
SRC-20 tokens
a token standard for the Stacks network running on top of Bitcoin. Offers extended smart contract functionality.
Stablecoin
from the English "stable" + "coin", a crypto asset whose value is pegged to a stable base asset (fiat, gold, currency basket) to minimize volatility.
stETH
from "Liquid Staking Token ETH", Lido's liquid staking token for Ethereum. Backed 1:1 by staked ETH and generates rewards.
STO (Security Token Offering)
from the English "Security Token Offering", a regulated placement of security tokens complying with securities legislation requirements.
Stock-to-Flow
a metric of the ratio of existing stock to annual production volume. Used for long-term Bitcoin price forecasting.
T-address (Zcash)
from the English "transparent" + "address", a public address in Zcash similar to Bitcoin. Unlike a Z-address, it does not provide privacy by default.
Terahashes per second
a unit of hashrate measurement equal to one trillion hash operations per second. A standard for comparing ASIC power.
TGE (Token Generation Event)
from the English "Token Generation Event", the technical event of creating and initially distributing tokens. Often coincides with listing but not necessarily.
The Graph (GRT)
from the English "The Graph", a decentralized blockchain data indexing protocol. Allows querying data via GraphQL for dApps.
Token
from the English "token", a digital asset issued on top of an existing blockchain via a smart contract. May represent utilities, governance rights, or external assets.
Token and coin creation
the process of issuing new crypto assets on a network. May be preset (hard cap) or inflationary (unlimited issuance).
Token Burn
from the English "token" + "burn", the irreversible sending of tokens to an inaccessible address to reduce total supply. A mechanism to increase scarcity or return value to holders.
Token merge
from the English "merge" + "token", the process of combining two or more tokens into one. May be initiated by a DAO vote.
Token standards
sets of rules (ERC, BEP, SPL) defining token behavior on a specific blockchain. Ensure compatibility with wallets and exchanges.
Tokenization
from the English "tokenization", the process of representing a right to a real or digital asset as a token on a blockchain. Simplifies transfer and shared ownership.
Tokenomics
from the English "token" + "economics", the economic model of a token, including issuance, distribution, utilities, burning mechanisms, and incentives. Determines the project's long-term sustainability. Detailed article on tokenomics.
Total Supply
from the English "total" + "supply", all existing tokens minus burned ones. Includes not-yet-unlocked vesting tokens.
TRC-20
a token standard on the TRON network, technically similar to ERC-20. Popular for stablecoin transfers thanks to low fees.
TrueUSD (TUSD)
from the English "True" + "USD", a stablecoin fully backed by dollars with regular audits.
Utility Token
from the English "utility" + "token", a token granting access to a product's or service's functionality (discounts, service payments, API access). Not intended as an investment instrument.
Vesting
from the English "vesting", a schedule for gradually unlocking tokens for the team, investors, and advisors. Prevents mass sales immediately after launch.
Wei
named after cryptographer Wei Dai, the smallest unit of ETH. 1 ETH = 10^18 Wei. Used for gas calculations and precise operations.
Whitepaper
from the English "white" + "paper", a project's technical document describing the problem, solution, architecture, tokenomics, and roadmap. The main source of fundamental information.
Wrapped Token
from the English "wrapped" + "token", a token representing an asset from another blockchain in the target network (e.g., wBTC on Ethereum). Backed by a reserve of the original asset at a custodian or via a bridge.

Trading and Exchanges

24h Volume
the total trading volume over the last 24 hours. A standard metric of activity and interest in an asset.
Arbitrage
from French "arbitrage" or English "arbitrage", a strategy of profiting from the price difference of one asset across different venues or markets. Helps equalize prices.
Ask
an order in the order book to sell an asset at a certain price. The lowest ask determines the best sell price.
ATH (All-Time High)
the historical maximum price of an asset over its entire existence. A psychologically important resistance level.
ATL (All-Time Low)
the historical minimum price of an asset. A level below which the asset has never traded.
Bakkt
a platform for crypto futures and derivatives, created with the support of ICE (Intercontinental Exchange). Designed for institutional access to crypto.
Bear Market
a market phase with prolonged price decline, pessimism, and capital outflow. Also called a bearish trend.
Bid
an order in the order book to buy an asset at a certain price. The highest bid determines the best buy price.
Binance Labs / Binance Launchpad
the investment division and project launch platform of Binance. Provides mentorship and access to liquidity.
BitLicense
a regulatory license for virtual currency issued by the NYDFS (New York State Department of Financial Services). Required for companies serving New York residents.
Bollinger Bands
a volatility indicator consisting of an SMA and two standard deviations. Narrowing of the bands foreshadows a strong price impulse.
Breakout
the price breaking out beyond the boundaries of an established support or resistance range with increased volume. A signal of the start of a new trend.
Bull Flag Pattern
a continuation pattern on the chart, looks like a flag on a flagpole after a sharp rise. Usually leads to a continuation of the upward movement.
Bull Market
a market phase characterized by sustained price growth, participant optimism, and capital inflow. Also called a bullish trend.
Candlestick
a graphical representation of price movement over a period, showing the open, close, high, and low. The basis of technical analysis.
Cascade Liquidations
a chain reaction of forced position closures that amplifies price movement. A risky phenomenon in high-leverage markets.
CEX (Centralized Exchange)
a centralized exchange operated by a company that custodies users’ funds and acts as an intermediary. Requires KYC and provides high liquidity.
Chart
a technical analysis tool that displays price movement over a period. A basic tool for decision-making.
Consolidation
sideways price movement within a certain range after a strong trend. A period of gathering strength before the next impulse.
Copy Trading
a feature for automatically copying the trades of successful traders. Simplifies entry for beginners but requires due diligence.
Correction
a temporary price decline of 10–20% after a period of growth. A healthy market reaction to relieve overheating.
Crypto ETF (Exchange Traded Fund)
exchange-traded investment funds that track the price of a crypto asset. They give institutional investors access to cryptocurrency through traditional markets.
Crypto Fear and Greed Index
a psychological market indicator ranging from 0 (extreme fear) to 100 (extreme greed). Based on a multitude of metrics.
Death Cross
a bearish signal when the short moving average crosses the long one from above downward. A warning of the start of a downtrend.
Derivatives
financial instruments whose value depends on an underlying asset (cryptocurrency, index). Include futures, options, swaps.
DEX (Decentralized Exchange)
a decentralized exchange operating via smart contracts. Users retain control of their assets; trading occurs on-chain.
Dip
a local price decline within a broader trend. Often viewed as a buying opportunity ("buy the dip").
Doji
a candle where the open and close prices are nearly equal. A signal of market indecision and a possible trend reversal.
Dust Wallet
a wallet with token balances too small for commercial withdrawal. Often created accidentally or left over from contracts.
Elasticity
a measure of the sensitivity of supply or demand to a change in price. Critical for understanding the liquidity and volatility of assets.
EMA (Exponential Moving Average)
a moving average that gives more weight to recent prices. Reacts faster than SMA to trend changes.
ETF
from "Exchange Traded Fund", an investment instrument that tracks an asset or index. A crypto ETF allows investing through traditional brokerage accounts.
Exchange
a platform for exchanging crypto assets, providing order matching, liquidity, and trading infrastructure.
Exchange Fee
an economic fee charged by a crypto exchange or decentralized protocol for providing trading services, executing orders, and maintaining infrastructure. On centralized exchanges (CEX), the fee is the platform’s main source of revenue and is structurally divided into several types: trading fee, withdrawal fee, and deposit fee.
Falling Wedge Pattern
a chart pattern in the shape of a narrowing triangle with downward-sloping boundaries. On an uptrend it is considered a bullish reversal pattern, on a downtrend a continuation pattern.
Fiat
from Latin "fiat" (let it be), real currency: ruble, dollar, euro, etc.
Fiat Gateway
infrastructure for transferring between fiat and cryptocurrencies. For example, payment gateways that support bank cards.
Fibonacci Retracement Levels
horizontal levels on the chart based on Fibonacci proportions. Used to forecast support and resistance zones.
Flat
a market state in which the asset price moves within a narrow horizontal corridor without a clear upward or downward trend. Characterized by low volatility and the absence of a clear direction. Also called sideways or consolidation.
FOMO (Fear Of Missing Out)
a psychological state of fear of missing out on profit, leading to impulsive buying at the peak. A common cause of beginners’ losses.
Forced Liquidation
automatic closure of a position by the exchange when funds are unavailable to maintain margin requirements. Often executed via market orders.
Frontrunning
the practice of placing a transaction ahead of a known large trade to profit from price impact. Ultra-fast execution.
FUD (Fear, Uncertainty, Doubt)
the spread of negative or false information to create panic and lower the asset’s price. A tool of information warfare.
Fundamental Analysis (FA)
assessment of an asset’s value through the analysis of economic, financial, and other factors. Includes studying protocols, the team, and tokenomics.
Funding Rate
periodic payments between short and long positions in perpetual contracts. Keeps the price close to the spot index. Detailed article on funding
Futures
a derivative contract to buy or sell an asset at a predetermined price in the future. Allows speculating on price without owning the underlying asset.
Golden Cross
a bullish signal when the short moving average crosses the long one from below upward. Indicates the start of an uptrend.
Goldilocks Principle
an economic concept about the need for balanced conditions for stable growth. In crypto, it applies to the monetary policy of protocols.
High-Frequency Trading (HFT)
a form of algorithmic trading characterized by extremely high order execution speed (measured in microseconds) and a huge number of trades within a short session. HFT algorithms use complex mathematical models to identify and exploit short-term market inefficiencies, such as cross-exchange arbitrage or micro-spreads in the order book. A critical element of HFT infrastructure is colocation — the physical placement of servers in close proximity to exchanges’ matching engines to minimize network latency. In the crypto industry, HFT bots provide liquidity on centralized venues and constantly analyze the market for arbitrage opportunities.
Iceberg Order
a large order split into many small visible parts to hide the true volume and avoid moving the market.
Indicator
a mathematical calculation based on price and volume that helps identify trends and entry points. Examples: RSI, MACD.
Interest Rates
the price of using borrowed funds or the yield from deploying capital. In DeFi, rates are determined algorithmically based on the current supply and demand ratio in the liquidity pool.
Leverage
a multiplier showing the ratio of the trader’s own funds to the total position size. Leverage of x10 means the position is 10 times larger than the deposit.
Limit Order
an order to execute at the specified or better price. Guarantees price but not execution; adds liquidity to the order book.
Liquidity
the ability of an asset to be quickly bought or sold without significantly affecting the price. Determined by order book depth and trading volume.
MACD
a trend indicator showing the relationship between two EMAs. Signals are generated when the MACD line and signal line cross.
Maker
a market participant who places a limit order in the order book at a price different from the current market price. Such an order is not executed instantly but is added to the book, thereby creating (making) liquidity for other participants. On most centralized exchanges, makers receive a reduced fee (maker fee) or a rebate as a reward for providing market depth. Maker status does not require institutional status — any retail trader using limit orders instead of market orders can become one.
Margin Call
a demand from the exchange or broker to additionally top up a margin position when the margin falls below the maintenance level. Failure to do so leads to liquidation.
Margin Trading
trading using borrowed funds from the exchange or other users to increase a position. Amplifies both profit and loss.
Market Maker
an institutional market participant (a specialized company or fund) that, under contract with the exchange, undertakes to constantly maintain the liquidity of a trading instrument by placing two-sided limit buy and sell orders. A market maker earns on the bid/ask spread and rebate rewards from the exchange for providing order book depth. Unlike an ordinary maker trader, a market maker bears fiduciary obligations to the venue and uses high-frequency algorithms (HFT) to hedge risks. On decentralized exchanges (DEX), the function of market makers is performed by liquidity providers who place assets in AMM protocol pools.
Market Order
an order for immediate execution at the best available price. Guarantees speed but not price; subject to slippage.
Matching Engine
the exchange’s engine that matches buyers’ and sellers’ limit orders. Determines execution prices based on price and time priority.
Momentum
the rate of change of an asset’s price. A technical factor that predicts the continuation of movement in the direction of the momentum.
Moving Average (MA)
an indicator that averages the price over a given period to smooth out noise and identify a trend. Can be simple (SMA) or exponential (EMA).
Moving Average Ribbon
a technical indicator representing several moving averages with different periods. Shows trend strength and crossover points for signals.
the total value of a portfolio minus liabilities. Used to assess investment funds and shares.
On-Chain Metrics
quantitative indicators of activity in the blockchain: the number of active addresses (DAA), transaction volume, fees, hashrate, and other data obtained directly from the ledger. They allow assessing the real usage of the network independently of exchange quotes.
Options
a contract that gives the right (but not the obligation) to buy or sell an asset at the strike price until a certain date. Used for hedging and complex strategies.
Order Book
a visualization of active buy and sell orders in the order book. Shows market depth and liquidity levels.
Order Book
a list of active limit buy and sell orders that shows market depth and current supply/demand levels.
OTC
from "Over-the-Counter", trading directly between parties without placing orders in the book. Used for large trades to avoid slippage.
Perpetual Contract
a type of futures without an expiry date. The price is kept close to spot through the funding rate mechanism.
PnL
from "Profit and Loss", the financial result of a position. Can be realized (closed trade) or unrealized (open position).
Pump and Dump
a manipulation scheme in which the price is artificially inflated through aggressive advertising, after which the organizers sell the asset, crashing the price.
Quantitative Easing (QE)
a monetary policy of central banks that increases the money supply by purchasing assets. Affects the value of fiat and the crypto market.
Quantitative Tightening (QT)
the opposite of QE policy of reducing the central bank’s balance sheet. Usually accompanied by rising interest rates.
Rebate
a universal economic mechanism for returning part of the funds paid by a user, applied in various forms to stimulate activity. In the crypto industry, several key types of rebates are distinguished: (1) trading rebates on centralized exchanges — a negative fee that the platform pays to makers and market makers for every executed limit order added to the order book; (2) referral rebates — a percentage of fees returned to the user who invited a new trader via an affiliate link, or to the invited user under a welcome program; (3) promotional and coupon rebates — temporary promo mechanisms in which an exchange or protocol returns part of trading fees via a special promo code, NFT coupon, or within a limited campaign (for example, a refund of up to 50% of fees on trading pairs during the listing of a new asset). The unifying principle of all types of rebate is post-factum compensation for part of the expenses, which turns the user’s costs into a tool for loyalty, audience retention, or stimulation of certain behavior (providing liquidity, attracting referrals, testing new products).
Resistance Level
a price zone where selling pressure historically exceeds demand, preventing further price growth. If the price breaks through the level, it often becomes new support.
Revenge Trading
an emotional trading strategy triggered by a losing trade. Often leads to additional, even larger losses.
Risk Premium
the additional return required by an investor for taking on increased risk. In crypto it is especially significant for altcoins.
RSI (Relative Strength Index)
a momentum indicator measuring the speed and change of price movements in the range 0–100. Zones >70 — overbought, <30 — oversold.
SAFU (Secure Asset Fund for Users)
an investor insurance protection fund created by exchanges from fees. Guarantees compensation in case of hacks.
Sandwich Trading
a front-running strategy that consists of placing orders before and after the target transaction to profit from slippage. Prohibited on ethical exchanges.
Scatter Plot
a chart displaying the correlation between two variables (for example, performance and risk). A portfolio analysis tool.
SEC
from "U.S. Securities and Exchange Commission", the main financial regulator of the United States. Influences the crypto market through decisions on ETH ETFs and token statuses.
Slippage
the difference between the expected and actual execution price of an order. Occurs with insufficient liquidity or high volatility.
SMA (Simple Moving Average)
the arithmetic mean of prices over a period. Weighs all data points uniformly and reacts slower than EMA.
Smart Contract Wallets
a wallet controlled by smart contract code. Includes multisig and AA wallets with programmable logic.
Social Recovery Wallet
a wallet that allows restoring access through trusted contacts without a seed phrase. Improves UX without compromising security.
Soft Landing
a situation where an asset, after rapid growth, declines gradually without a sharp collapse. Often forms a consolidation pattern for further growth.
Spot Trading
the buying and selling of assets with immediate delivery and settlement. Ownership of the asset transfers to the buyer immediately.
Spread
the difference between the best buy price (bid) and the best sell price (ask). A liquidity indicator: the smaller the spread, the more liquid the market.
Stop-Loss Order
a protective order that activates when a set price is reached to limit losses. Can be executed as a market or limit order.
Support Level
a price zone where demand historically exceeds supply, stopping the price decline. The more times the price touches this level, the stronger it is.
Take-Profit Order
an order to automatically lock in profit when the target price is reached. Part of risk management.
Taker
a market participant who executes a trade at the market price, instantly "taking" liquidity from the order book created by makers. A taker uses market orders or limit orders with a price that crosses opposing orders in the book. For consuming liquidity, a taker generally pays an elevated fee (taker fee). In the context of trading, anyone who executes a trade with a market order is a taker. In the context of DeFi protocols, any user performing a swap through a liquidity pool becomes a taker: they take one asset out of the pool and put in another, paying a fee to the protocol and liquidity providers.
Technical Analysis
a method of analyzing the market situation and estimating the probable future price movement based on studying the chart’s history: trading volumes, candles, levels, technical indicators. Based on three postulates: price reflects all available information, movement occurs in trends, history repeats itself. It is not a guarantee of profit, but it helps assess probabilities and manage risks.
Ticker
a unique alphabetic code for identifying a trading instrument. For example, BTCUSD.
TPS (Transactions Per Second)
a measure of blockchain throughput. The number of transactions processed per second.
Trading
the activity of buying and selling financial assets with the aim of profiting from price fluctuations. In crypto, it includes spot, derivatives, and arbitrage.
Trend
a sustained direction of an asset’s price movement over a given time interval. Three types are distinguished: upward (bullish), downward (bearish), and sideways (flat). Identifying the trend is the basis of technical analysis.
Triangular Arbitrage
arbitrage between three trading pairs on a single exchange, exploiting cross-rate discrepancies.
Volatility
the variability of an asset’s price over a certain period of time. High volatility - large and rapid price movements, hype. Low volatility - a slow market, sideways, flat.
Volume
the quantity of assets or monetary equivalent traded over a certain period. Confirms the strength of a trend.
Wash Trading
fictitious trading in which the same participant simultaneously buys and sells an asset to create false volume. Prohibited on regulated venues.
Web3 Wallet
an interface for interacting with decentralized applications. Usually a browser extension or mobile app.
Whale
a holder of a significant volume of an asset whose trades can substantially affect the market price.
Win Rate
the share of profitable trades out of the total number. An important metric for the effectiveness of a trading strategy.
Wyckoff Method
a market theory that identifies accumulation and distribution phases through the analysis of price patterns and volume. Applicable to crypto analysis.

DeFi (Decentralized Finance)

Aggregator
a protocol that combines liquidity from many sources (DEXs, pools) to give the user the best execution price.
AMM (Automated Market Maker)
a protocol that replaces the order book with a mathematical formula (x*y=k) to automatically determine prices and provide liquidity.
Annual Percentage Rate (APR)
the nominal rate without regard to compounding frequency. A lower figure than APY for the same base.
Annual Percentage Yield (APY)
the effective annual rate taking compound interest into account. The standard for comparing returns in DeFi.
Atomic Swap
a direct exchange of assets between different blockchains without intermediaries, using hash time-locked contracts (HTLC). Executes fully or not at all.
Band Protocol
an alternative oracle network built on Cosmos, offering cross-chain compatibility and customizable data sources.
Bond
a debt security that in crypto may be tokenized. Usually pays a fixed interest rate and returns the principal at maturity.
Borrowing
obtaining assets as a loan against collateral in DeFi. Interest is determined algorithmically based on supply and demand.
Bridge
a protocol for transferring assets and messages between different blockchains. Can be trusted or trustless.
CeDeFi
a hybrid model combining the efficiency and UX of centralized finance with the transparency and innovation of DeFi. Often implies institutional protocols with KYC.
a decentralized oracle network that is the industry standard for securely delivering off-chain data to smart contracts.
Collateral
assets locked in a smart contract as a guarantee of loan repayment. If collateral value falls, the position is subject to liquidation.
Collateralized Debt Position (CDP)
a smart contract that allows borrowing against cryptocurrency collateral. The primary instrument for generating stablecoins in MakerDAO.
Collateralized Stablecoin
a stablecoin backed by reserves of fiat currency or cryptocurrency in a smart contract. Maintains its peg through reserve transparency.
Compound Interest
a mechanism of earning interest on interest (compound interest). In DeFi it automatically reinvests rewards, increasing effective yield.
Concentrated Liquidity
a Uniswap V3 mechanism that lets LPs place liquidity within a chosen price range. Increases capital efficiency but raises IL risk.
Contango and Backwardation
contango: when the futures price exceeds the spot price; backwardation: when spot is more expensive than futures. Arbitrage opportunities between the market and derivatives.
Cross-Chain
technologies and protocols enabling interaction between independent blockchains. The foundation of the multichain ecosystem.
Cross-Chain Bridges
protocols for transferring assets and data between independent blockchains. They can be trusted (centralized) or trustless.
DAO (Decentralized Autonomous Organization)
an organization governed by rules encoded in smart contracts and collective voting by token holders. Without a hierarchical structure.
DApp (Decentralized Application)
an application whose backend runs on a decentralized network (blockchain), while the frontend can be anything. Resistant to censorship and downtime. Detailed article about Dapps in cryptocurrency.
Decentralized indices
protocols that automatically compute metrics (prices, TVL) via on-chain data. Examples: The Graph, Pyth.
DeFi (Decentralized Finance)
an ecosystem of financial applications on the blockchain that replicates traditional services (lending, exchange, insurance) without intermediaries via smart contracts.
Direct Market Access (DMA)
the ability of a trader to interact directly with the order book without an intermediary. Available on most CEXs.
EigenLayer
a restaking protocol that allows Ethereum validators to simultaneously secure other services (AVSs). Increases stake utilization.
Flash Loan
an uncollateralized loan that must be taken and repaid within a single transaction. Used for arbitrage and refinancing.
Impermanent Loss
the loss of a liquidity provider relative to simply holding, arising when the price ratio of assets in the pool changes. Realized only upon exiting the pool.
Insurance Protocol
a DeFi service providing coverage against risks of smart contract exploits, stablecoin depegs, and other on-chain events.
Lending Protocol
a decentralized platform that allows lending assets against collateral and earning interest without bank intermediation.
Liquidation (forced)
the process by which an exchange or protocol closes an undercollateralized position to prevent losses. Often occurs at a discount.
Liquidity Crisis
a situation where a market or protocol cannot meet all withdrawal requests without significantly affecting the price. Often leads to cascading liquidations.
Liquidity Mining
an incentive program where the protocol additionally rewards liquidity providers with its own governance tokens.
Liquidity Pool
a smart contract holding a pair of tokens supplied by users to enable trading on an AMM. Providers receive a share of fees.
Liquidity Provider (LP)
a user who has deposited assets into a liquidity pool. Receives LP tokens as proof of share and right to fees.
Liquidity Ratios
metrics of a protocol's or market's ability to meet obligations without slippage. Include volume, order book depth, and asset ratios.
Marketplace (trading platform)
a digital platform that provides infrastructure for interaction between independent sellers and buyers. In the Web3 and cryptocurrency ecosystem, marketplaces have evolved into decentralized protocols running on smart contracts. The most well-known segment is NFT marketplaces, where users trade digital assets without intermediaries. They also include DeFi protocol aggregators, platforms for initial token offerings, and marketplaces for buying tokenized real-world assets (RWA).
Moving Average Envelopes
the area between two moving averages (e.g., SMA50 and SMA200), indicating trend strength and potential reversals. A technical volatility indicator.
Oracle
a service that delivers external data (prices, weather, event outcomes) to the blockchain. Critical infrastructure for DeFi.
Over-collateralization
the requirement to post collateral exceeding the loan amount (usually 150–200%). Compensates for the volatility of crypto assets.
PancakeSwap
a leading DEX on Binance Smart Chain operating on an AMM (automated market maker) model. Popular thanks to low fees.
Proto-danksharding
a temporary solution for Ethereum (EIP-4844) that introduces blob transactions to reduce L2 fees. Preparation for full danksharding.
Spot (as a contract type)
a transaction with immediate delivery of the underlying asset. Unlike derivatives, it transfers ownership immediately.
Stableswap
a specialized AMM algorithm for exchanging assets with close prices (stablecoins, wrapped tokens). Minimizes slippage via a flat curve.
Synthetic Assets
tokens that track the value of external assets (stocks, commodities, fiat) via oracles and collateral mechanisms.
TradFi
from Traditional Finance, the ecosystem of traditional financial institutions (banks, exchanges, insurers). Contrasted with DeFi.
Treasury Bills (T-Bills)
short-term debt obligations of the US government. Represented in tokenized form in DeFi to access risk-free yield.
TVL (Total Value Locked)
the total value of assets locked in a protocol's smart contracts. A key metric of trust and scale of a DeFi project.
Uniswap
the largest decentralized exchange (DEX) in the Ethereum ecosystem and EVM-compatible networks. The protocol operates on an Automated Market Maker (AMM) model: instead of an order book it uses liquidity pools where asset prices are determined algorithmically based on their ratio within the pool. Uniswap's architecture has evolved from the basic V1 to V4 (launched in 2024), which introduced a hooks system — programmable modules that let pool creators define pool behavior (dynamic fees, filters, and order orchestration). The protocol is also known for its own UNI governance token and the UniswapX mechanism, which implements intent-based trading settled by specialized resolver agents.
Vault
a smart contract in optimizers where users deposit assets for an automated earning strategy. Issues vault tokens as a share.
Venture Capital
funds that invest in early-stage projects with high growth potential. Key investors in crypto startups.
Virtual AMM (vAMM)
a market maker without a real liquidity pool that simulates pricing via a formula. Used in derivative DEXs.
Yield Farming
a strategy for maximizing returns by moving capital between various DeFi protocols to collect rewards and fees.
Yield Optimizer
a protocol that automatically reinvests farming rewards to maximize compound interest. Saves the user gas and time.

Security, Wallets, and Identification

51% Attack
a scenario in which an attacker controls more than half of the network's computing power, allowing them to rewrite history and carry out double-spends. Practically unattainable for large networks thanks to economic incentives.
Address
a string of characters derived from the public key, serving as an identifier for receiving funds. Analogous to a bank account number.
Algorithm (Algorithm)
a set of mathematical instructions for performing a task. In cryptography it defines encryption, hashing, and signature schemes.
AML (Anti-Money Laundering)
from Anti-Money Laundering, a set of measures and legislative requirements to prevent the legalization of criminal proceeds through financial systems.
Backdoor
a hidden mechanism, vulnerability, or special function in software code, a smart contract, or a cryptographic algorithm that allows bypassing standard security procedures and gaining unauthorized access to a system. In the Web3 context, backdoors are most often found in smart contracts: unscrupulous developers embed functions that grant them the unilateral right to mint unlimited tokens, freeze transactions, or withdraw funds from liquidity pools (the so-called "admin keys"). The presence of a backdoor completely destroys the principle of trust in the execution environment, turning a decentralized protocol into a tool of total control. In classical cryptography, the term also applies to deliberately weakened encryption algorithms that allow third parties to bypass mathematical protection without knowing the private key.
Bounty
a targeted reward program that a crypto project or protocol publishes for completing specific tasks: finding code vulnerabilities, creating content, translating documentation, testing the network, or attracting new users.
Bug
a logical inaccuracy, defect, or error in the source code of software or a smart contract that leads to its incorrect execution and deviation from the intended architecture. In the classical IT industry, bugs are fixed by releasing updates. However, in the Web3 and blockchain ecosystem the cost of an error multiplies due to the immutability of deployed code and direct control over digital assets.
Bug Bounty
a reward program for discovering and responsibly disclosing vulnerabilities. It incentivizes white-hat hackers to help the project.
Byzantine Fault (Byzantine Fault)
from the name of the Byzantine Generals Problem — a system failure in which individual nodes act maliciously or incorrectly. A critical scenario for consensus.
CFT (Counter-Financing of Terrorism)
from Counter-Financing of Terrorism, measures to counter the financing of terrorism, complementing AML regulation in the crypto industry.
Cold Wallet
a wallet that never connects to the internet (hardware device, paper). Maximum security for long-term storage.
Cosigner
a person who co-signed a transaction or message. In multisig wallets, several cosigners are required for authorization.
Crypto Mixer
a service for anonymizing transactions by mixing the assets of many users. Often associated with money laundering, but has legitimate uses.
Cryptographic Hash Function
a mathematical function that transforms data of arbitrary size into a fixed-length string (hash). It has the properties of one-wayness and the avalanche effect.
Cryptography
the science of methods for protecting information. In blockchain it ensures transaction authenticity and ledger immutability.
Cryptojacking
hidden mining on a victim's device via malicious code or vulnerabilities. Uses resources without consent.
Custodial Wallet
a wallet where private keys are held by a third party (exchange). The user trusts the provider with security.
DDoS
a cyberattack in which attackers use many compromised devices (botnet) to send a huge volume of fake requests to a target server, network, or blockchain node. The goal is to exhaust the system's resources and make it unavailable to legitimate users. In the crypto industry, such attacks are often aimed at centralized exchanges, RPC nodes, or payment gateways to paralyze trading, disrupt transactions, or cause market panic.
Decoy (Decoy)
a fake output in a blockchain. The mechanism is best known thanks to the Monero network, but the concept is also applied in other areas of cryptography. The wallet algorithm randomly selects decoys from the blockchain history and combines them with the real output into a ring signature (Ring Signature). This is used to generate cryptographic noise and hide the true sender of funds, creating a structure in which every ring element appears as an equal and equally probable source of the transaction.
Desktop Wallet
a program for a computer. Safer than web wallets but depends on OS cleanliness.
Digital Signature
an asymmetric cryptographic construction that proves the authenticity of the sender and the integrity of the data. The foundation of transaction security.
DoS/DDoS Attack
an attack on the infrastructure of network resources by overloading it. In crypto it targets nodes, exchanges, and pools.
Dusting Attack
sending microscopic amounts to many addresses to de-anonymize owners via transaction clustering analysis.
Electronic Signature (e-signature)
a legally significant electronic form of signature. In crypto — a digital signature created with a private key.
ENS (Ethereum Name Service)
from Ethereum Name Service, a decentralized naming system that replaces complex addresses with human-readable names (name.eth). It also stores profile metadata.
Exit Scam
the sudden disappearance of a project team with the collected investor funds without fulfilling obligations.
False Breakout
an artificial price movement above a resistance level to trigger stop-losses, followed by a reversal. A manipulative tactic of traders with large positions.
Fraud
a broad range of intentional actions in the cryptocurrency and Web3 space aimed at the illegal seizure of digital assets, market manipulation, or bypassing smart-contract logic. Unlike a scam, which is more often associated with creating an obviously fake project, fraud also covers manipulative practices on legitimate platforms: inflating fake trading volume, artificially pumping a price before dumping, phishing attacks, social engineering, and insider schemes. Countering fraud requires deep on-chain data analysis, tracking abnormal fund movement patterns, and regular code audits for hidden vulnerabilities.
Fully Homomorphic Encryption
a technology for performing arbitrary computations on encrypted data. Potential for private smart contracts.
Hardware Wallet
a physical device that stores private keys in isolation. Signing happens inside the device; the keys never leave it.
Honeypot
a malicious smart contract that allows buying a token but blocks its sale. A trap for greedy traders.
Hot Wallet
a wallet connected to the internet (extension, mobile app). Convenient for frequent operations but vulnerable to online attacks.
Keccak
from the name of its creator (Keccak), a family of cryptographic hash functions including SHA-3. Used in Ethereum for addresses and hashes.
KYC (Know Your Customer)
from Know Your Customer, an identity verification procedure required by regulated services to prevent money laundering. Contradicts the principle of anonymity.
Mobile Wallet
an application for smartphones. Convenient for everyday payments and scanning QR codes.
Multisig / Multi-signature
a wallet requiring M of N signatures to authorize a transaction. Increases security and is used for treasury management.
Non-custodial Wallet
a wallet where the user solely owns the private keys. Full responsibility and control.
Offline Signing Orchestrator (OSO)
a system managing offline signing in multi-key infrastructure. Simplifies key management.
Phishing
a fraudulent practice of gaining access to seed phrases or signing malicious transactions via fake sites and messages.
Private Key
a secret cryptographic key granting full right to dispose of assets at the corresponding address. Must never be shared.
Proof of Reserves (PoR)
an audit of an exchange or protocol's reserves to confirm the real backing of deposits. Increases transparency.
Public Key
a cryptographic key derived from the private key, used to generate an address and verify signatures. Can be shared freely.
Reentrancy
a class of critical vulnerabilities in the architecture of smart contracts on EVM-compatible networks, arising when an external call (e.g., sending ETH or interacting with a third-party contract) allows the called address to recursively access the original contract before the initial function execution and its internal state update complete. The vulnerability mechanics are based on a violation of operation ordering: if asset transfer happens before changes are committed to storage, the recursive call reads outdated data, allowing the attacker to withdraw funds repeatedly.
Reentrancy Attack
a vulnerability in which an external contract recursively calls the target contract's function before the first call completes. The cause of many major hacks.
Replay Attack
exploitation of the reuse of a transaction signature in another network or context. Protected against by including chain-id.
Ring Signature
a technology for hiding the sender among a group of users. Used in Monero.
Rug Pull
a type of fraud in which developers suddenly pull liquidity from a pool or block sales, leaving investors with worthless tokens.
Salt (Cryptography)
random data added to a password or hash to protect against rainbow-table attacks. Unique for each user.
Scam
the deliberate theft of user funds under the guise of a legitimate crypto project, token, or investment offer. Unlike startups that may lose value due to market conditions or tokenomics errors, a scam is built into the architecture or business model from the start with the aim of enriching the creators. Typical attack vectors include developers forcibly pulling liquidity (rug pull), smart contracts that forbid selling assets (trap tokens), as well as fake listings and phishing wallets. Detecting a scam requires checking the contract source code, analyzing token distribution, and studying the contract owner's rights, which may allow the team to unilaterally change the protocol's operating logic.
Scrypt
a memory-hard hash function designed to resist ASIC mining. Used in Litecoin and Dogecoin.
Secure Asset Fund for Users (SAFU)
from Secure Asset Fund for Users, an exchange insurance fund to compensate user losses in incidents. An industry standard after the 2019 hacks.
Seed Phrase / Mnemonic Phrase
a set of 12–24 words that is a human-readable representation of the private key. A backup for wallet recovery.
Segregated Witness (SegWit)
from Separated Witness, a Bitcoin upgrade that separates signature data from transaction data to increase block capacity. It eliminated the transaction malleability problem.
Self-custody
the practice of independently managing private keys without trusting third parties. A fundamental principle of sovereignty in crypto.
SHA-256
from Secure Hash Algorithm 256-bit, a cryptographic hash function used in Bitcoin and many other systems. Produces a 256-bit fingerprint of data.
SIM Swapping
intercepting control of a victim's phone number via the mobile operator to bypass 2FA and access accounts.
Smart Contract Audit (Audit)
a professional review of code for vulnerabilities and compliance with the specification by a third-party firm. It does not guarantee security but reduces risks.
Social Engineering
manipulating people into voluntarily disclosing confidential information or performing dangerous actions. The weak link in security.
Software Wallet
an application for PC or smartphone that manages keys in software. A balance between convenience and security.
Sybil Attack
from the name Sybil, an attack in which a single entity creates many fake identities to manipulate consensus, airdrops, or governance.
Two-Factor Authentication (2FA)
a protection method requiring two independent proofs of identity. Reduces the risk of account compromise.
Wallet
a tool for managing private keys, signing transactions, and interacting with the blockchain. The wallet itself does not store coins; they reside in the ledger.
Web Wallet
a wallet running in a browser. The most vulnerable type due to dependence on site and extension security.
Zero-Knowledge Proof (ZKP)
a cryptographic method of proving knowledge of information without disclosing it. The foundation of privacy in Zcash and ZK-rollups.

Layer 2, Scaling and Web3

Airnode
from the English air (air) + node (node), a decentralized oracle without a token, operating via an API Gateway. A simple oracle solution.
Arbitrum
from the English arbitrum (arbiter, judge), the leading Optimistic Rollup for Ethereum with high TVL and a developed dApp ecosystem. EVM-compatible.
Artificial Intelligence (AI)
from the English Artificial Intelligence, the creation of systems capable of performing tasks that require human intelligence. In crypto — for analysis and automation.
Arweave
from the English archive (archive) + weave (weaving), a blockchain for permanent data storage with one-time payment. Guarantees perpetual data availability.
BitVM (abbreviation of Bitcoin Virtual Machine)
a computational paradigm and framework proposed in October 2023 that enables arbitrary (Turing-complete) computations and smart contracts on top of the Bitcoin network without changing the base protocol. BitVM uses binary scripts and an optimistic verification model: the computations themselves occur off-chain, while only cryptographic commitments are recorded on L1. If one party attempts to cheat, the other can initiate an on-chain dispute resolved via predefined scripts. BitVM is considered a potential breakthrough for the ecosystem, capable of unlocking full-fledged L2 networks, trusted bridges, and complex financial contracts on Bitcoin, while preserving its fundamental security and decentralization.
ChatGPT
from Generative Pre-trained Transformer, an AI assistant for generating text, code, and analytics. Used for project research and automation.
Decentralized Identity
from the English identity (identity), a self-sovereign identity system where the user controls their data and reputation without central providers.
Decentralized Identity (DID)
from Decentralized Identifier, an identifier controlled by the user without a central registry. A W3C standard for self-sovereign identity.
DID / Decentralized Identifier
from the English Decentralized Identifier, a W3C-standardized identifier independent of central registries. The basis of verifiable credentials.
Directed Acyclic Graph (DAG)
from the English directed (directed) + acyclic (acyclic) + graph (graph), a data structure for distributed ledgers without sequential blocks. Used in IOTA, Hashgraph.
Ethereum Foundation
a non-profit organization supporting the development of Ethereum. Funds research and core development.
Filecoin
from the English file (file) + coin (coin), a decentralized data storage network that incentivizes disk-space providers through the FIL token. Complements IPFS.
Flashbots
a research organization and service for private transactions in Ethereum. Protects against frontrunning via a private mempool.
GameFi
from the English game (game) + finance (finance), a synthesis of gaming and DeFi where in-game assets are tokenized and players earn through Play-to-Earn mechanics.
Geth
from Go Ethereum, an Ethereum client written in the Go language. The most widely used execution layer client.
Hashgraph
from the English hash (hash) + graph (graph), a distributed consensus algorithm via a gossip protocol. Offers high speed and fairness.
Hyperledger
a Linux Foundation project for enterprise blockchains. Includes libraries and tools for permissioned networks.
Immutable X
from the English immutable (immutable) + X (designation), a ZK-Rollup optimized for NFT gaming with zero fees for users and instant trading.
IPFS (InterPlanetary File System)
from the English InterPlanetary (interplanetary) + File System (file system), a decentralized file storage protocol using content-addressing instead of location-addressing. Censorship-resistant.
Layer 1 / L1
from the English layer (layer) + 1 (first), the base blockchain providing consensus, security, and transaction finality (Bitcoin, Ethereum, Solana).
Layer 2 / L2
from the English layer (layer) + 2 (second), an overlay on top of L1 that processes transactions off-chain and periodically publishes proofs to L1. Scales the base network without changing its rules.
Learn-to-Earn
from the English learn (to learn) + to (in order to) + earn (to earn), an educational model where users receive tokens for completing courses and quizzes about crypto projects.
Lightning Network
from the English lightning (lightning) + network (network), a payment L2 channel on top of Bitcoin for instant micropayments with minimal fees. Solves the BTC scalability problem.
Loopring
a ZK-Rollup specializing in DEX and payments. One of the first working ZK solutions on Ethereum.
Metaverse
from the English meta- (beyond) + universe (universe), a virtual space with a persistent economy, digital identity, and social interactions, often built on blockchain.
Move-to-Earn
from the English move (to move) + to (in order to) + earn (to earn), a model that rewards physical activity (walking, running) with tokens. Example: STEPN.
opML
from optimistic ML, an optimistic rollup for machine learning tasks. Uses fraud proofs to validate Compute results.
Optimism
from the English optimism (optimism), an Optimistic Rollup focused on public goods and the modular OP Stack architecture. The basis of the superchain ecosystem.
Optimistic Rollup
from the English optimistic (optimistic) + rollup (bundling), a rollup that assumes transaction validity by default but allows challenges during the challenge period. Simpler to implement, but slower finality.
Plasma
from the English plasma, an early L2 technology creating child chains with periodic commits to L1. Obsoleted in favor of rollups due to data availability issues.
Play-to-Earn / P2E
from the English play (to play) + to (in order to) + earn (to earn), a model where players receive cryptoassets for gameplay activity. Changes the paradigm of in-game item ownership.
Polygon PoS
from the English polygon (polygon) + PoS (Proof of Stake), an Ethereum sidechain with PoS consensus, offering low fees and high speed. One of the most popular L2-like solutions.
Raiden Network
from the English Raiden (a name from anime) + network (network), an analog of the Lightning Network for Ethereum, enabling off-chain payments and microtransactions in the ERC-20 token network.
ReFi
from the English regenerative (regenerative) + finance (finance), a DeFi direction aimed at funding environmental and social projects through regenerative economic models.
Rollup
from the English roll up (to roll up, bundle), an L2 technology that "rolls up" many transactions into one and publishes the data to L1. Security is inherited from the base network.
SDK
from Software Development Kit, a set of tools for developing applications on a specific platform. Simplifies integration with APIs and smart contracts.
SocialFi
from the English social (social) + finance (finance), decentralized social networks where users own their content, connection graph, and monetize attention directly.
Solidity
an object-oriented programming language for the Ethereum Virtual Machine. The standard for smart contract development.
Soulbound Token / SBT
from the English soulbound (bound to the soul/non-transferable) + token (token), a non-transferable NFT representing achievements, reputation, or identity. Cannot be sold or transferred.
StarkNet
a ZK-Rollup based on the Cairo VM (Cairo Virtual Machine), offering high throughput and an execution environment different from the EVM.
State Channel
from the English state (state) + channel (channel), an off-chain channel between participants for an unlimited number of instant transactions. The final state is settled on-chain. Requires being online.
Tangle (IOTA)
from the English tangle (ball of yarn), a distributed ledger without blocks, based on a DAG for IoT. Its features are no mining and infinite scalability.
UTC Time
from Coordinated Universal Time, the international time standard. Used for timestamps of blocks and transactions.
Validium
from the English valid (valid) + arium (suffix denoting a place/system), an L2 solution using ZK proofs but storing data off-chain. Lower cost, but weaker security guarantees than ZK-rollups.
Volition
from the English volition (will, choice), a hybrid solution allowing users to choose between storing data on-chain (rollup) and off-chain (validium) for each asset.
YTD
from Year-to-Date, a periodization of financial reporting. Shows the change in price or portfolio since January of the current year.
Zero-Knowledge Proofs / ZKP
from the English zero-knowledge (zero knowledge) + proofs (proofs), a cryptographic method of proving knowledge of information without revealing the information itself. The foundation of privacy and scaling.
ZK-Rollup
from the English zero-knowledge (zero knowledge) + rollup (bundling), a rollup using zero-knowledge proofs to validate transaction batches. Instant finality, but harder to develop.
zk-SNARKs
from the English zero-knowledge Succinct Non-interactive ARgument of Knowledge, compact ZK proofs requiring a trusted setup. Widely used in Zcash and early ZK-rollups.
zk-STARKs
from the English zero-knowledge Scalable Transparent ARgument of Knowledge, ZK proofs without a trusted setup, transparent and post-quantum, but more bulky. Used in StarkNet.
zkML
from zero-knowledge machine learning, the application of ZK proofs to machine learning. Ensures privacy of model inference.
zkOracle
from zero-knowledge + oracle, an oracle that provides data with correctness proofs without revealing sources. Improves DeFi security.
zkSync
a ZK-Rollup with native support for account abstraction and paymasters, focused on UX and mass adoption.

Crypto Slang and Culture

Altseason
from the English "alternative" + "season", a period when altcoins show higher returns than Bitcoin. Expected after BTC rises.
Anarcho-capitalism
a political philosophy combining individualism and a free market without state intervention. Historically linked to the early crypto community.
Anon
from the English "anonymous", the standard identity in crypto, reflecting the value of privacy and equality regardless of status.
Aping In
from the English "ape" + "in", an impulsive purchase of an asset without proper research, often under the influence of FOMO. High-risk behavior.
Ashdraked
from the name Ash (a meme character), a state of total loss of funds after a market crash. An ironic term describing a zero balance.
Bagholder
from the English "bagholder" (person with a bag), someone left holding worthless tokens after a decline. Often the result of FOMO or a scam.
Based
approval of a bold and independent decision. In crypto — freedom from groupthink and following one's own research.
Binance community member (Binancian)
a member of the Binance ecosystem who actively uses the platform and related products. Often characterized by brand loyalty.
Bitcoin Dominance
from the English "dominance", the share of BTC's capitalization relative to the entire crypto market. An indicator of capital rotation.
Bitcoin maximalists
supporters of the idea that Bitcoin will become the only dominant cryptocurrency, while altcoins will depreciate in the long run.
Bitcoiner
an enthusiast and user of Bitcoin, often with a deep understanding of its technology and philosophy. May be a radical supporter of Satoshi's principles.
Bloodbath
from the English "bloodbath", a description of a mass decline in prices and liquidations. An emotional reaction to a bear market.
BUIDL
from "build", the principle of creating rather than speculating. A counterpart to HODL, calling for active contribution to the ecosystem.
Buy the Dip (BTFD)
a sticker phrase urging one to buy falling assets in anticipation of a subsequent rise. An aggressive version of "buy the dip".
Chad
an idealized image of a successful, confident trader. A counterpart to "virgin", used in memes for contrast.
Community
from the English "community", the social foundation of a crypto project. Community strength is often more important than technology for success.
Copy-Paste Code
from the English "copy-paste", criticism of projects that use others' code without understanding. A sign of a lack of originality and potential vulnerabilities.
Crypto winter
a prolonged period of low prices and low activity in the crypto market. An analogy with the winter season, when projects survive.
Cypherpunk
from "cypher" (cipher) + "punk", a movement advocating the use of cryptography to protect privacy. The foundation of modern cryptography.
Dead Cat Bounce
from the English "dead cat bounce", a temporary price rise after a sharp decline, misleading for buyers. A technical analysis pattern.
Degen
from the English "degenerate", self-identification of participants who take extreme risks for high returns. Part of the DeFi and NFT subculture.
Diamond Hands
from the English "diamond" + "hands", a metaphor for the resilience of an investor who does not sell assets during a decline. The opposite of paper hands.
Doxxing
from the English "docs" (documents) + "-xing", the publication of a participant's personal data without consent. A serious violation of ethics and security.
DYOR (Do Your Own Research)
from the English "Do Your Own Research", a call for independent analysis before investing. A fundamental principle of responsible participation.
Flippening
a potential event in which Ethereum surpasses Bitcoin by market capitalization. A topic of constant debate since 2017.
Forked Project
from the English "fork", a project created by copying another's code. Can be a legitimate improvement or a lazy clone.
Fren
a distorted form of "friend", a term of address for the community. Emphasizes the informal and supportive nature of crypto togetherness.
GM / GN (Good Morning / Good Night)
from "Good Morning / Good Night", ritual greetings in crypto communities that maintain a sense of belonging and daily engagement.
Goblin Town
a period of extremely low market prices, named by analogy with the goblin tavern from the meme. An emotional characterization of a bear market.
Hal Finney
a developer and cryptographer, the first person to receive a Bitcoin transaction from Satoshi. An active Cypherpunk participant and PGP contributor.
Hey Hey Hey
a meme phrase, the motto of the Solana community. Originated from a viral video and became a symbol of optimism.
HODL (Hold On for Dear Life)
from the misspelling of "hold" on the BitcoinTalk forum in 2013, which became a meme. The culture of holding assets long-term despite volatility.
Influencer
from the English "influence" + "-er", an opinion leader who shapes narratives and influences prices. Can be both helpful and manipulative.
IYKYK
from "If You Know You Know", a phrase for information understood only by those in the know. Creates an "in-the-club" feeling.
Jeet
from "jeet" (a distorted "cheetah"), someone who sells at the slightest profit or panic, violating the community's social norms. Condemned in the culture.
KOL (Key Opinion Leader)
from the English "Key Opinion Leader", an expert with deep knowledge and authority whose opinion is valued above superficial influencing.
Lambo (When Lambo)
an ironic expression of hope for a sharp rise in a cryptocurrency that would allow one to buy a Lamborghini. A symbol of getting rich quickly.
LFG (Let's F***ing Go)
from "Let's F***ing Go", an emotional exclamation of enthusiasm and readiness to act. Expresses collective energy.
Money Printer Go Brrr
a meme illustrating quantitative easing policy and its inflationary effect. Used to criticize monetary policy.
Moon / Mooning
from the English "moon", a metaphor for rapid growth associated with flying to the Moon. The goal of many investors.
Mt. Gox
an exchange that lost 850,000 BTC in 2014. A symbol of the inadequate security of the early market.
NFA (Not Financial Advice)
from the English "Not Financial Advice", a mandatory disclaimer that removes liability for financial recommendations. Legal protection for content authors.
NGMI (Not Gonna Make It)
from "Not Gonna Make It", a pessimistic assessment of a project's or person's chances. Often used to criticize bad decisions.
Normie
from the English "normal", a person outside crypto culture who does not understand the slang and context. Often the target of explanations or mockery.
Paper Hands
from the English "paper" + "hands", a derogatory description of those who sell at the first dip out of fear. Considered a weakness in crypto culture.
PFP
from "Profile Picture", an NFT used as a profile image on social media. The starting form of NFT adoption.
REKT
from "wrecked", slang describing catastrophic losses. A sign of experience and risk acceptance in the culture.
Satoshi (unit)
the smallest unit of measurement of Bitcoin, equal to 0.00000001 BTC. Named after the creator.
Satoshi Nakamoto (person)
the pseudonym of the creator of Bitcoin, whose real identity is unknown. A fundamental figure in crypto history.
Ser
an ironic form of address "sir", imitating English eBay and Telegram slang. Emphasizes cultural identity.
Shilling
from the English "shill" (a promoter), aggressive promotion of an asset, often for a reward. Condemned as unethical behavior.
Shitcoin
from the English "shit" + "coin", a derogatory name for projects without real value or technology. A subjective assessment.
To the Moon
from the English "to the moon", a battle cry and expression of hope for exponential growth of an asset.
Truly decentralized
a statement emphasizing genuine decentralization as opposed to pseudodecentralized projects. Often used in L1 vs L2 debates.
Vaporware
from the English "vapor" + "ware", a project that exists only in marketing materials without a working product. A red flag for investors.
Vitalik Buterin
programmer, cryptographer and one of the co-founders of the Ethereum blockchain platform (launched in 2015), author of the original White Paper that set out the concept of a universal blockchain supporting arbitrary smart contracts. Unlike Bitcoin, which is focused exclusively on monetary transfers, the architecture proposed by Buterin turned the distributed ledger into a global computational layer on which DeFi protocols, NFT marketplaces and DAOs were subsequently built.
WAGMI (We're All Gonna Make It)
from "We're All Gonna Make It", an optimistic manifesto of faith in the community's shared success. Strengthens solidarity in hard times.
When Moon
a rhetorical question about when a token's price will explode: "When are we going to the moon already?". Often carries an ironic undertone.