Account Model
A ledger design where balances are tracked by accounts rather than discrete outputs.
Address
A public identifier used to receive cryptocurrency on a blockchain network.
Air-gapped Wallet
A wallet kept on a device that has never been connected to the internet.
Airdrop
A strategic distribution of complimentary tokens to stimulate interest and engagement in a cryptocurrency asset.
Algorithmic Stablecoin
A stablecoin that targets a peg using algorithmic supply rules rather than full collateralization.
All Time High (ATH)
The peak historical price of a traded asset.
All Time Low (ATL)
The lowest historical price of a traded asset.
Altcoin
A cryptocurrency that serves as an alternative to the dominant coin in its category.
Altseason
A market phase characterized by a surge in altcoin investments.
AMM (Automated Market Maker)
A decentralized trading platform that uses smart contracts and algorithms to determine asset prices.
Annual Percentage Rate (APR)
The yearly interest rate without accounting for compound interest.
Annual Percentage Yield
The projected annual return, factoring in compound interest.
Anti-Money Laundering
Laws and processes that aim to prevent illicit funds from being disguised as legitimate.
Ape
Slang for entering a trade or project quickly with high conviction and limited due diligence.
Arbitrage
The practice of profiting from price discrepancies of the same asset across different markets.
ASIC
Specialized hardware designed for efficient cryptocurrency mining.
Asset
A resource with economic value expected to provide future benefit.
Atomic Swap
A trustless exchange of assets across chains using time-locked contracts.
Backup
A redundant copy of critical wallet data (seeds, descriptors, keys) stored to recover funds if a device is lost.
Bagholder
An investor holding onto depreciating assets.
Batching
Combining many payments into a single transaction to reduce fees and chain load.
Bear Market
A prolonged period of declining prices and negative sentiment.
Bearish
A market condition characterized by falling prices and pessimistic sentiment.
Bech32
An address encoding format with error-detection used by Bitcoin and others.
Bid-Ask Spread
The difference between the highest bid and lowest ask price for an asset.
BIP39 Passphrase
An optional secret added to a BIP39 seed that creates a different wallet; losing it means losing access.
Bit
A sub-unit of Bitcoin, equivalent to 100 satoshis.
Bitcoin (BTC)
Bitcoin (BTC) is the first and most secure peer-to-peer electronic cash system, underpinned by blockchain technology.
Bitcoin Cash (BCH)
A cryptocurrency designed for peer-to-peer electronic cash transactions.
Bitcoin Improvement Proposal (BIP)
A design document proposing changes or standards for Bitcoin.
Block
A collection of transactions confirmed on the blockchain, each block building upon the previous one.
Block Explorer
A website or tool for viewing blockchain data like transactions, addresses, and blocks.
Block Height
The number of blocks preceding a particular block in a blockchain.
Block Reward
The reward given to a miner for validating a new block on the blockchain.
Blockchain
A decentralized, peer-to-peer ledger system composed of a continuous chain of blocks.
Bridge
Infrastructure that enables moving assets or messages across blockchains.
Bug Bounty
A program offering rewards to security researchers who responsibly disclose vulnerabilities.
Bull Market
A prolonged period of rising prices and optimistic sentiment.
Bullish
A term used to describe positive market sentiment, characterized by rising prices and investor confidence.
Burn
The intentional or unintentional destruction of cryptocurrency tokens, permanently removing them from circulation to affect supply.
Buy High Sell Low
A counterproductive investment strategy of buying an asset at a high price and selling it at a low price, often driven by emotional decision-making.
Buy Low Sell High
An investment strategy of purchasing an asset at a low price and selling it at a high price to maximize profit in markets.
Buy The Dip (BTD)
An investment strategy of purchasing an asset after a significant price decrease.
Canonical Transaction Ordering
A rule in Bitcoin Cash that orders transactions within a block by their transaction ID, enabling faster lookup and mining optimizations.
CashAddr
The native address format for Bitcoin Cash (BCH), using a human-readable prefix and Base32 encoding with strong error detection.
CashFusion
A privacy-enhancing protocol on Bitcoin Cash that obfuscates transaction trails to enhance user privacy without requiring trusted setup.
CashShuffle
A privacy protocol on Bitcoin Cash that enhances user privacy by shuffling coins into uniform denominations.
CashTokens
A native token and covenant capability on Bitcoin Cash enabling fungible and non-fungible tokens without smart-contract gas.
Centralized Exchange (CEX)
A custodial platform that matches orders and holds user funds.
Chain Reorganization
A network event where the active chain tip switches to a different branch with more accumulated work.
Chain Split
A permanent divergence into two or more incompatible blockchain histories.
Checksum
A small piece of data derived from a message to detect errors in transmission or entry.
CheckTemplateVerify
A proposed Bitcoin opcode that would enable simple covenants by committing to a template of future transactions.
Circulating Supply
The total number of coins or tokens that are actively available in the market.
Coin Age
The time since a UTXO was created; used in analysis, privacy, and some staking systems.
Coin Control
Manual selection of specific UTXOs when creating a transaction.
Coin Selection
The algorithm a wallet uses to choose which UTXOs to spend, impacting fees, privacy, and change.
CoinJoin
A privacy technique that combines multiple users’ inputs and outputs in a single transaction.
Cold Storage
Keeping private keys offline to reduce risk of remote compromise.
Collateral
Assets pledged to secure a loan or position.
Composability
The ability for applications and protocols to permissionlessly build on and integrate with each other.
Confirmations
The number of blocks added to the blockchain since a transaction was included.
Consensus
The process used by blockchain networks to agree on the state of the distributed ledger.
Covenant
A script technique that restricts how coins can be spent in the future, enforcing policies at the UTXO level.
CPFP
A fee-bumping technique where a new transaction spends an unconfirmed output and pays a high fee to incentivize miners to include both.
Cryptocurrency Exchange
A platform that facilitates the buying, selling, and trading of cryptocurrencies. Exchanges can support crypto-to-crypto or crypto-to-fiat transactions and serve as crucial infrastructure in the digital asset ecosystem.
Custodial Wallet
A wallet where a third party controls the private keys on your behalf.
DAO (Decentralized Autonomous Organization)
A DAO is an on-chain governance structure where rules are encoded in smart contracts and decisions are made collectively by token holders or members.
Dead Cat Bounce
A temporary recovery in prices during a prolonged bear market.
Death Spiral
A potential scenario where a blockchain's functionality grinds to a halt due to a sudden decrease in hash power.
Decentralization
The distribution of power and control across many participants, reducing single points of failure or authority.
Decentralized Application (DApp)
A decentralized application (DApp) is a software application that runs on a distributed computing system, most commonly a blockchain.
Decentralized Exchange
A decentralized exchange (DEX) is a platform that allows users to trade digital assets directly with each other, without the need for an intermediary, such as a brokerage or bank.
DeFi
DeFi, or Decentralized Finance, is a revolutionary sector in the blockchain industry that uses smart contracts to create permissionless financial services that are open to everyone and operate without intermediaries.
Delegated Proof of Stake (DPoS)
A consensus mechanism where token holders vote for a limited set of delegates who produce blocks on behalf of the network.
Depeg
When a pegged asset (like a stablecoin) deviates significantly from its target price (e.g., $1).
Derivation Path
The structured path notation (e.g., m/44'/0'/0'/0/0) used to derive keys and addresses from a hierarchical deterministic (HD) wallet seed.
Deterministic Wallet
A wallet that derives all keys and addresses from a single seed phrase, enabling easy backup and recovery.
Diamond Hands
A term used in the investing community to describe an investor's strong will to hold onto their investments, even in the face of significant price drops or volatility.
Difficulty Adjustment Algorithm (DAA)
The consensus rule that periodically recalibrates mining difficulty so average block time stays near the target despite hash rate changes.
Distributed Ledger
A database replicated across many nodes where participants share a synchronized, append-only record of transactions or state.
Dollar Cost Averaging (DCA)
A systematic investment strategy that involves buying a fixed dollar amount of an asset at regular intervals, regardless of its price.
Double Spend
A fraudulent technique where the same digital currency is spent more than once, exploiting the digital nature of cryptocurrency transactions.
Dump
A trading term referring to the rapid selling off of a cryptocurrency or other asset, often causing its price to drop significantly.
Dust
A minuscule amount of a crypto asset that is less than the minimum transaction fee, rendering it economically impractical to transfer.
Dust Limit
The minimum output value a node or miner relays because smaller outputs cost more to spend than they are worth.
Dusting Attack
A privacy attack where tiny amounts of coins (dust) are sent to many addresses to try to link them when spent.
DYOR (Do Your Own Research)
A reminder to independently verify information and evaluate risks before investing or using a crypto project.
Emission Schedule
The predefined timeline and rate at which new coins are minted or released into circulation.
Entropy
The measure of randomness used to generate secure seeds, keys, and nonces in cryptographic systems.
ERC-20 Token
A standard for fungible tokens on the Ethereum blockchain, defining a common list of rules for all Ethereum tokens to follow.
ERC-721 Token
A standard for non-fungible tokens (NFTs) on the Ethereum blockchain, often used for unique digital assets and collectibles.
Escrow
A trust arrangement where a neutral party holds funds until agreed conditions are met; in crypto, often implemented with multi-signature or time-locked contracts.
Ethash
Ethash is Ethereum's Proof-of-Work (PoW) hashing algorithm, designed to be ASIC-resistant and memory-intensive to promote decentralization.
Ethereum (ETH)
Ethereum (ETH) is a decentralized, open-source blockchain network featuring smart contract functionality.
Ethereum Improvement Proposal (EIP)
The standard process for proposing and specifying changes or standards for the Ethereum ecosystem.
Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine (EVM) is the runtime environment for executing smart contracts on the Ethereum blockchain and EVM-compatible networks.
Exchange Token
A token issued by an exchange to provide fee discounts, rewards, or governance rights within that platform's ecosystem.
Exit Liquidity
Traders who buy near the top, enabling earlier holders to sell; colloquially, the late buyers who become the sellers’ liquidity.
Extended Private Key (xprv)
A master private key in HD wallets that can derive all child private keys; extremely sensitive.
Extended Public Key (xpub)
A master public key in HD wallets used to derive many child public keys/addresses without exposing private keys.
Extended Public Key (YPub) (ypub)
A versioned extended public key format used by some wallets to indicate a specific script type (e.g., P2WPKH-in-P2SH).
Externally Owned Account (EOA)
An Ethereum account controlled by a private key (as opposed to a contract account), used to send transactions and hold ETH/tokens.
Fair Launch
A token or project distribution with no insider allocations, private sales, or pre-mines—everyone can participate equally from the start.
Faucet
A faucet is a method of distributing small amounts of free cryptocurrencies to users, often as a promotional strategy or educational tool to introduce new users to blockchain technology.
Fee
The amount paid to include a transaction in a block; incentivizes miners/validators and helps prevent spam.
Fee Market
The competitive market for limited block space where users bid fees for inclusion; determines transaction prioritization and costs.
Fee Rate
A fee expressed per unit of transaction size (e.g., satoshis per vbyte) used to prioritize inclusion in blocks.
Fiat Currency
Fiat currency is a type of currency that is declared as legal tender by a government, and it is not backed by a physical commodity like gold or silver.
Finality
The point at which a transaction is considered irreversible and economically infeasible to revert.
Flash Loan
An uncollateralized on-chain loan that must be borrowed and repaid within a single transaction, enabled by composable DeFi.
Flippening
The Flippening refers to the hypothetical future event when a cryptocurrency surpasses Bitcoin in market capitalization, becoming the most valuable cryptocurrency.
FOMO (Fear Of Missing Out)
Fear Of Missing Out (FOMO) is an emotional response in trading, driving individuals to invest due to the fear of missing out on potential profits.
Fork
A fork is a divergence in a blockchain that results in two or more separate paths, often due to changes in consensus rules or protocol updates.
Front-Running
Executing a trade or transaction in anticipation of a known pending order to gain advantage; in crypto, often via observing the public mempool.
FUD (Fear, Uncertainty, and Doubt)
FUD, or Fear, Uncertainty, and Doubt, refers to the spread of negative, misleading, or false information to harm the reputation of a cryptocurrency or project.
Full Node
Software that fully validates blocks and transactions, enforcing consensus rules independently.
Funding Rate
A periodic payment exchanged between longs and shorts on perpetual futures to keep contract prices anchored to spot.
Fungible Token
A token where each unit is interchangeable with any other unit of the same type, like currency.
Futures
A derivatives contract to buy or sell an asset at a predetermined price at a future date; in crypto, perpetual futures (no expiry) are most common.
Gas
The unit of computational work on EVM chains; users pay gas in the native token to execute operations in smart contracts.
Gas Limit
The maximum amount of gas a transaction or block is allowed to consume on EVM chains.
Gas Price
The amount paid per unit of gas (e.g., gwei) to incentivize transaction inclusion on EVM chains.
Genesis Block
The Genesis Block, also known as Block 0, is the first block of a blockchain, marking the inception of a new cryptocurrency.
Governance
The processes by which blockchain protocols and communities make and enforce decisions, on-chain or off-chain.
Governance Token
A token granting voting power or proposal rights in protocol governance, typically used by DAOs and DeFi platforms.
Gwei
A denomination of ETH equal to 10^9 wei, commonly used to quote gas prices.
Halving
Halving is a pre-scheduled event in a blockchain where the reward for mining new blocks is halved, decreasing the rate at which new tokens are generated.
Hard cap
A hard cap is the maximum number of coins or tokens that will ever be issued by a cryptocurrency, enforced by protocol rules.
Hardware wallet
A hardware wallet is a dedicated physical device that securely stores private keys and signs transactions offline to protect against malware and remote attacks.
Hash
A hash is a fixed-size output produced by a one-way function that maps any input to a seemingly random value, used for integrity, addressing, and proof-of-work.
Hash rate
Hash rate refers to the computational power used in mining and validating transactions on a blockchain network.
Hashed Time-Locked Contract (HTLC)
An HTLC is a contract that escrows funds with a hashlock and a timelock, enabling trust-minimized atomic payments across channels or chains.
Hodl
Hodl, a misspelling of 'hold', is a slang term in the crypto community for holding onto a cryptocurrency long-term regardless of price volatility, reflecting conviction in its future value.
Hot wallet
A hot wallet is a software wallet connected to the internet, offering convenience for frequent transactions but higher exposure to malware and phishing.
Hyperinflation
Hyperinflation is an extremely rapid price increase in an economy, typically defined as >50% monthly inflation, caused by runaway money supply growth and loss of currency trust.
ICO
An ICO, or Initial Coin Offering, is a fundraising mechanism in which new projects sell their underlying tokens in exchange for established cryptocurrencies like Bitcoin, Bitcoin Cash, or Ethereum.
IEO
An IEO, or Initial Exchange Offering, is a fundraising event where a cryptocurrency exchange facilitates the sale of tokens for a new project, providing additional security and credibility compared to traditional ICOs.
Immutability
Immutability is the property of a blockchain where confirmed data cannot be altered without redoing the underlying consensus work, preserving historical integrity.
Impermanent loss
Impermanent loss is the loss LPs experience when providing liquidity to AMMs compared to holding assets, due to price divergence from the deposit ratio.
Indexer
An indexer parses blockchain data and serves structured queries for apps, enabling fast lookups beyond what a raw full node provides.
Inflation
Inflation is the sustained increase in the general price level, often caused by money supply growth outpacing real output, reducing purchasing power.
Instamine
Instamine refers to a large portion of a cryptocurrency's maximum supply being mined shortly after its launch, potentially leading to unfair distribution and centralization concerns.
Interoperability
Interoperability is the ability of blockchain networks and applications to exchange data and value across systems, enabling cross-chain use cases.
IPFS
IPFS is a peer-to-peer network for storing and sharing files using content-addressing, where data is retrieved by its hash rather than a location.
J-curve
The J-curve describes trajectories that dip before rising sharply, used to explain early underperformance followed by growth in projects and token economies.
JIT liquidity
JIT liquidity is the practice of adding and removing liquidity around a trade in AMMs to capture fees with minimal exposure to price risk.
JoinMarket
JoinMarket is a CoinJoin implementation that coordinates makers and takers to create collaborative Bitcoin transactions improving privacy.
JOMO (Joy Of Missing Out)
JOMO, or Joy Of Missing Out, refers to the satisfaction derived from not participating in a potentially risky investment, even if it proves successful for others, emphasizing strategic restraint in trading decisions.
JSON-RPC
JSON-RPC is a lightweight remote procedure call protocol used by blockchain nodes and tools to expose methods like sending transactions and querying chain data.
Jurisdictional arbitrage
Jurisdictional arbitrage is the practice of choosing favorable legal or regulatory environments for operating crypto businesses or protocols.
Keccak-256
Keccak-256 is a cryptographic hash function used widely in the Ethereum ecosystem and related tooling.
Key pair
A key pair consists of a private key and a corresponding public key used for digital signatures and addresses in cryptocurrencies.
Keystore
A keystore is an encrypted file that stores private keys, typically protected by a password and used by software wallets.
Kimchi premium
The Kimchi premium is the persistent price difference where crypto trades at higher prices on South Korean exchanges compared to global markets.
Know Your Customer (KYC)
KYC, or Know Your Customer, is a regulatory requirement for businesses to verify the identity of their customers, aimed at preventing illegal activities and ensuring compliance with financial regulations.
KYT (Know Your Transaction)
KYT, or Know Your Transaction, is the practice of monitoring and analyzing blockchain transactions to assess risk and support AML compliance.
Lambo
A term in crypto culture referring to the aspiration of wealth and luxury, symbolized by owning a Lamborghini.
Layer-1
Layer-1 refers to the base blockchain layer that provides consensus, data availability, and settlement for transactions and smart contracts.
Layer-2
Layer-2 solutions build on top of Layer-1 to increase throughput and reduce costs, settling results back to the base chain.
Leverage
Leverage uses borrowed funds to increase position size, amplifying both gains and losses.
Lightning Network
A second layer solution on Bitcoin's blockchain enabling fast, low-cost transactions through payment channels.
Limit Order
A trading instruction to buy or sell an asset at a specified price or better.
Liquidation
Liquidation is the forced closure of a leveraged position when collateral is insufficient to cover losses, protecting the exchange or lenders.
Liquidity
The ease with which a crypto asset can be bought or sold without affecting the market price.
Liquidity mining
Liquidity mining is the distribution of tokens to users who provide liquidity to pools or protocols, bootstrapping depth and usage.
Liquidity pool
A liquidity pool is a smart contract that holds token reserves to enable automated market making (AMM) without order books.
Locktime
A parameter in a transaction that specifies when it can be added to the blockchain.
Mainnet
Mainnet is the live, production blockchain where real-value transactions occur, as opposed to test networks.
Majority Attack
A potential attack on a blockchain network where a single entity gains control of the majority of the network's hash rate.
Maker-taker fees
Maker-taker fees differentiate between adding liquidity (maker) and removing liquidity (taker), with different fee schedules and rebates.
Market Cap
The total value of all circulating units of a particular cryptocurrency.
Market maker
A market maker quotes buy and sell prices to provide liquidity, earning the spread and/or incentives.
Market Order
A type of order to buy or sell a security at the best available price in the current market.
Masternode
Specialized servers on a blockchain network that perform advanced functions, require significant coin collateral, and receive rewards for their services.
Maximalist
An individual or entity who strongly believes in the superiority of a specific cryptocurrency and primarily or exclusively invests in and advocates for it.
Maximum Supply
The predetermined total number of a cryptocurrency that will ever exist, enforced by the protocol's rules.
Mempool
A temporary storage space in a node for pending transactions that have not yet been included in a confirmed block.
Mempool Pinning
A tactic that makes an unconfirmed transaction difficult to replace or fee-bump, delaying confirmation.
Merkle tree
A Merkle tree is a binary tree of hashes that enables efficient verification of large data sets, used in blockchains for transaction inclusion proofs.
MEV (Maximal Extractable Value)
MEV is the value that block producers or transaction sequencers can extract by reordering, inserting, or censoring transactions.
Microtransaction
A microtransaction is a very small-value payment enabled by low fees and fast confirmations, useful for tipping, content, and IoT.
Miner
A miner is a participant who provides computational work to find blocks and secure proof-of-work blockchains.
Mining
The process by which new coins or tokens are minted and transactions are confirmed on a blockchain through computational work.
Mining Difficulty
The measure of how difficult it is to find a new block for a blockchain. It is regularly adjusted to maintain the target block time.
Mining Pool
A collective of miners who pool their computational resources to mine blocks more consistently and share the rewards proportionally.
Miniscript
A structured language for expressing Bitcoin script spending policies that are easier to analyze, compose, and secure.
Minting Baton
A unique token that grants the ability to create more of a specific SLP token, commonly used in the Bitcoin Cash ecosystem.
Mnemonic
A sequence of words used to generate and recover a private key, typically 12 or 24 words long.
Mooning
A term used when a crypto asset experiences a rapid and significant increase in value.
Multi Signature
A type of digital wallet that requires signatures from multiple private keys to authorize transactions.
Nakamoto Consensus
A probabilistic consensus mechanism using proof-of-work where the longest valid chain is considered authoritative.
Native Asset
The primary built-in currency of a blockchain used for fees, incentives, and security.
Network Effects
When a product or network becomes more valuable as more people use it.
Node
A device that participates in a blockchain network, with roles varying from transaction validation to block creation.
Non-custodial Wallet
A wallet where you control the private keys, without relying on a third party to hold your funds.
Non-fungible Token (NFT)
A unique on-chain token representing distinct assets, rights, or collectibles.
Nonce
A value in block headers miners vary to find a valid proof-of-work.
Not Your Keys, Not Your Coins
A warning that if you don’t control the private keys, you don’t truly control the funds.
Off-chain
Activity that occurs outside the base blockchain, often for speed, privacy, or cost efficiency.
On-chain
Activity recorded directly on the blockchain and finalized in blocks.
OP_RETURN
An opcode in Bitcoin's scripting language that allows data to be written onto the blockchain, while marking the output as unspendable.
Opcode
A fundamental element of Bitcoin's scripting language that enables complex transactions.
Open Interest
The total number of outstanding derivative contracts (not yet closed or settled).
Opt-in RBF
A Bitcoin policy allowing unconfirmed transactions to be replaced by a higher-fee version from the same inputs.
Options
Derivatives granting the right, not the obligation, to buy (call) or sell (put) an asset at a specified strike price by a certain date.
Oracle
A system that supplies on-chain smart contracts with trustworthy off-chain data.
Order Book
A real-time list of buy and sell orders organized by price level on an exchange.
Ordinals
A method of assigning serial numbers to satoshis and attaching data (inscriptions) to them.
Orphan Block
A valid block which is not included in the current longest blockchain and thus does not contribute to the consensus protocol.
Output
A spendable unit of cryptocurrency created by transactions; referenced as an input when later spent.
Output Descriptor
A text representation that describes how to derive addresses and spend policies for a set of keys.
Over-the-counter (OTC)
Trades conducted directly between parties rather than through a public order-book exchange.
P2PK
Pay-to-Public-Key — an early Bitcoin output type that locks coins directly to a public key.
P2PKH
A common script type where the output can be spent by proving knowledge of the private key corresponding to a hashed public key.
P2SH
A script type where the output is locked to the hash of a redeem script, enabling features like multi-sig.
P2TR
A SegWit v1 output type introduced with Taproot that commits to a public key and optional script tree.
Package Relay
The ability for nodes to relay groups of related transactions together so miners evaluate fees on the package total.
Paper Wallet
A physical printout or handwritten record of keys or a mnemonic used to control cryptocurrency funds.
Peer-to-peer (P2P)
A network model where participants interact directly without central intermediaries.
Permissionless
Open to anyone to use or participate without needing approval from a central authority.
Perpetual Swap
A derivative similar to a futures contract but without expiry, kept near spot via funding payments.
Premining
The act of mining or allocating a portion of cryptocurrency coins before the blockchain is publicly launched or officially released to the general public.
Price Discovery
The process by which markets determine an asset’s price through supply, demand, and information flow.
Privacy
The ability to transact without revealing sensitive information about identity, balances, or counterparties.
Privacy Coins
Cryptocurrencies that prioritize secure, private, and anonymous transactions through specialized cryptographic techniques.
Private Key
A cryptographic key used to sign blockchain transactions and derive public keys; ultimate proof of control over funds.
Proof of Stake
A consensus algorithm where one's stake in the cryptocurrency is used to validate transactions and create new blocks, offering an energy-efficient alternative to Proof of Work.
Proof of Work (PoW)
A consensus algorithm where computing power is used to solve complex problems, verify transactions, and create new blocks.
Protocol
The formal set of rules that define how participants in a network communicate and reach consensus.
Protocol Upgrade
A coordinated change to network rules that nodes adopt to gain new features or fixes.
PSBT
A standard format for exchanging unsigned or partially-signed transactions between wallets and signers.
Public Key
A cryptographic identifier derived from a private key; used to verify signatures and derive addresses.
Pump and Dump
A manipulative scheme to inflate the price of an asset and then sell it to unsuspecting investors.
QR Code
A machine-readable square barcode commonly used to share wallet addresses and payment requests.
Quadratic Funding
A matching mechanism that amplifies broad community support by weighting many small contributions more than a few large ones.
Quantitative Easing (QE)
A monetary policy where central banks create money to purchase assets, increasing liquidity and lowering interest rates.
Quantitative Tightening (QT)
A monetary policy where central banks reduce their balance sheets or raise rates to decrease liquidity.
Quantum Resistance
The ability of cryptographic systems to remain secure against attacks by quantum computers.
Quorum
The minimum number of participants required to make a decision or validate an action.
Quote Currency
The currency in which an asset’s price is denominated in a trading pair.
Ransomware
Malware that encrypts a victim’s data and demands payment—often in cryptocurrency—for decryption.
Redeem Script
The script that defines spending conditions for a P2SH output; revealed and executed when the coins are spent.
Rekt
Slang for suffering heavy losses, often quickly, due to volatility, leverage, or liquidations.
Replace By Fee (RBF)
A Bitcoin node policy (BIP125) allowing an unconfirmed transaction to be replaced by a new one that pays a higher fee.
Replay Attack
When a valid transaction from one chain is maliciously or accidentally broadcast and accepted on another chain after a fork.
Replay Protection
Protocol or wallet techniques that prevent transactions from one chain being valid on another after a split.
Return on Investment (ROI)
A measure of profitability calculated as net gain divided by initial cost, often expressed as a percentage.
Ring Signature
A signature scheme that hides the true signer among a group, providing signer ambiguity.
Rollup
A Layer-2 technique that executes transactions off-chain and posts compressed proofs or data to the base chain.
Rug Pull
When project insiders drain liquidity or abandon a token, leaving holders with near-worthless assets.
Satoshi Nakamoto
Pseudonymous creator of Bitcoin and architect of modern cryptocurrency.
Satoshis (Sats)
The smallest unit of Bitcoin, equivalent to one hundred millionth of a Bitcoin.
Scalability Trilemma
The trade-off that blockchains struggle to optimize decentralization, security, and scalability simultaneously.
Schnorr Signatures
A digital signature algorithm that optimizes transaction size, enhances privacy, and resolves malleability issues.
Seed Phrase
A list of words that backs up a wallet; it can recreate all keys and addresses.
SegWit
A protocol upgrade that separates transaction data into two segments, mitigating transaction malleability and increasing block capacity.
Self-Custody
Controlling your own private keys rather than relying on a third party.
SHA-256
A cryptographic hash function used extensively in cryptocurrencies like Bitcoin (BTC) and Bitcoin Cash (BCH).
Shamir's Secret Sharing
A cryptographic method to split a secret into multiple shares so any threshold subset can reconstruct it.
Shill
A person or action promoting a specific cryptocurrency, often for personal gain.
Shitcoin
A derogatory term for a cryptocurrency considered worthless or doomed to fail.
Sidechain
An independent blockchain that runs in parallel to a main chain and is linked via a bridge or pegging mechanism.
Sighash
Flags that specify which parts of a transaction are covered by a signature.
Signature
A cryptographic proof that a message was authorized by the holder of a private key.
Simplified Payment Verification (SPV)
A method that allows Bitcoin wallets to verify transactions with minimal data, reducing reliance on centralized servers.
Slippage
The difference between expected trade price and actual execution price.
Smart Contract
Programmatic rules executed by the blockchain to enforce agreements without intermediaries.
Soft Fork
A backward-compatible protocol change where upgraded nodes enforce stricter rules without splitting the network.
Spread
The difference between the best bid and best ask in an order book.
Stablecoin
A cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like USD.
Staking
Locking tokens to help secure a network or protocol in exchange for rewards.
Staking Rewards
The payouts validators or delegators earn for securing a PoS network or staking in a protocol.
Stop Limit Order
A type of order that combines the features of stop order and limit order. It becomes active once a certain price is reached, known as the stop price.
Taproot
A Bitcoin upgrade that enables more private and efficient spending using Schnorr signatures and script path commitments.
Testnet
A parallel network to the main blockchain, used for testing and development purposes, where the coins have no real-world value.
Throughput
The rate a blockchain processes transactions or data over time (e.g., TPS).
Timelock
A constraint that prevents a transaction or output from being spent until a specified time or block height.
Token
Tokens are programmable digital assets residing on a blockchain, often representing a variety of tangible and intangible assets.
Tokenomics
The economic design of a token - issuance, supply schedule, distribution, utility, and incentives.
Total Supply
The total amount of coins or tokens that currently exist, including both circulating and non-circulating supply.
Total Value Locked (TVL)
The total value of assets deposited in a DeFi protocol or ecosystem.
Transaction
The fundamental unit of data exchange on a blockchain, representing transfers of cryptocurrency or executions of smart contracts.
Transaction Fee
Payment included in cryptocurrency transactions to incentivize miners or validators to process and include the transaction in a block.
Transaction ID (TXID)
The unique identifier of a transaction, typically the double SHA-256 hash of its serialized data.
Transactions Per Second (TPS)
A metric that measures how many transactions a blockchain network can process each second, indicating its throughput and scalability.
Trustless
A property where participants don’t need to trust each other or a central party; correctness is enforced by the protocol.
Two-Factor Authentication (2FA)
An additional security layer requiring two different types of verification to access an account.
two-of-three multisignature
A wallet policy requiring any 2 of 3 keys to sign a transaction, balancing redundancy and security.
Uncle Block
A valid block that was not included in the canonical chain due to a competing block at the same height; may still receive partial rewards.
Unconfirmed Transaction
A transaction accepted into the mempool but not yet included in a block; confirmation count is zero.
Universal 2nd Factor (U2F)
A hardware-based two-factor authentication standard using physical keys for phishing-resistant login.
Unspent Transaction Output (UTXO)
A fundamental blockchain data structure representing unspent value that can be used in future transactions.
User Activated Soft Fork (UASF)
A soft-fork activation method where economic nodes enforce new rules at a set time, pressuring miners to comply.
UTXO Consolidation
The practice of combining many small unspent outputs into fewer, larger ones to reduce future fees and input bloat.
UTXO Set
The complete collection of all unspent transaction outputs at a given point in time.
Validator
A participant in a Proof of Stake (or similar) system who proposes and attests to blocks, often bonded by a stake.
Value Overflow Bug
A critical bug where arithmetic overflow creates or destroys coins unintentionally.
Vanity Address
A cryptocurrency address with a customized prefix or pattern, found by trial-and-error.
Vault
A wallet design that adds on-chain time delays or guardians to reduce the risk of theft.
Velocity of Money
The rate at which money circulates in the economy; how often one unit changes hands.
Verifiable Delay Function (VDF)
A function that takes a guaranteed minimum time to compute, with fast publicly verifiable proofs.
Verifiable Random Function (VRF)
A function that produces a random-looking output with a proof that can be publicly verified.
Verkle Tree
A commitment tree using vector commitments, enabling smaller proofs than Merkle trees for large state.
Version Bits
A mechanism for miners to signal readiness for soft-fork upgrades using bits in the block version field (BIP9).
Vesting
A schedule that releases tokens over time to founders, teams, or investors, often with cliffs and linear unlocks.
View Key
A key that lets someone view your transactions or balances without spending authority.
Virtual Machine
An execution environment that runs smart contract code deterministically across nodes (e.g., EVM).
Volatility
The degree of variation in an asset’s price over time; higher volatility implies larger and more frequent price swings.
Volume
The total amount of a cryptocurrency or asset that has been traded within a specific timeframe.
Wallet
A tool that stores private keys and allows users to interact with blockchain networks.
Watch-Only Wallet
A wallet that can view balances and transactions but cannot spend funds because it lacks private keys.
Weak Subjectivity
In PoS systems, nodes need a recent finalized state to avoid certain long-range attacks.
Web3
A term for the user-owned web built on blockchains, smart contracts, and wallets instead of centralized platforms.
Wei
The smallest unit of Ether; 1 ETH = 10^18 wei.
Whale
An individual or entity that holds a significant amount of a particular cryptocurrency, capable of influencing market prices through large transactions.
Whitepaper
A document describing a project’s purpose, design, and economics—often high level and promotional compared to a yellow paper.
Witness
In SegWit, the witness holds signatures and related data outside the traditional transaction structure.
Wrapped Token
A tokenized representation of an asset on another chain, usually backed 1:1 and redeemable.
Yellow Paper
A formal, technical specification of a protocol (famously Ethereum’s Yellow Paper) detailing state transitions and execution rules.
Yield
The return earned on crypto assets over time, typically expressed as APR or APY.
Yield Farming
Moving capital between protocols to maximize on-chain returns from incentives, fees, and interest.
Yul
A low-level intermediate language for the Ethereum toolchain targeting the EVM and eWASM.
Zero Confirmation
Transactions that have been broadcast to the network but not yet included in a block.
Zero-Knowledge Proof (ZKP)
A method to prove a statement is true without revealing any information beyond the truth of the statement.
zk-Rollup
A Layer 2 that batches transactions off-chain and posts succinct validity proofs on-chain for correctness.
zk-SNARK
A succinct non-interactive zero-knowledge proof system with small proofs and fast verification, but typically requiring a trusted setup.
The Cryptionary
Cryptocurrency dictionaryTerms are regularly updated as the cryptocurrency ecosystem evolves.