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Select a term in the column to the left to view its definition.
Account shards are a critical element of the TON Blockchain's architecture, designed to manage and process transactions for specific subsets of accounts.
Account shards enable asynchronous and parallel transaction processing by dividing the blockchain into smaller, manageable segments called shardchains. Each shardchain handles transactions for a defined group of accounts, identified by a binary prefix. This dynamic sharding mechanism ensures scalability, allowing the network to split or merge shards based on transaction load, optimizing performance and throughput.
A periodic summary of account activity that provides a detailed record of transactions over a specific time period.
When it comes to account statements in digital assets or cryptocurrencies it could be referring to your account wallet or exchange statements directly. Or maybe even some individual transaction verification or financial purpose. Situations can arise even for regulatory compliance.
Accumulation happens after the market has bottomed out, investors beginning to buy undervalued assets, anticipating a future uptrend. Prices are generally low, and market sentiment shifts from negative to neutral.
The accumulation phase is the period in an individual’s financial life when they actively save and invest to build wealth. It typically begins during their working years and continues until retirement. The focus during this phase is on consistent contributions to savings, investing in diverse assets (e.g., stocks, bonds, real estate), and leveraging compound interest to grow the portfolio over time. This phase lays the foundation for financial security in later stages, such as retirement or distribution.
An activist investor is an individual, group, or institutional investor (such as a hedge fund) that acquires a significant minority stake in a publicly traded company to influence its management, operations, or strategic direction. Their goal is often to unlock shareholder value by advocating for changes they believe will improve the company's performance.
Tactics used by activist investors include proxy contests, public campaigns, shareholder proposals, negotiations with management, and possible legal/litigation pressure.
A marketing strategy used by blockchain projects to distribute free tokens or coins to a large number of wallet addresses.
It aims to raise awareness, reward community engagement, and promote adoption of a new cryptocurrency or project. Recipients are often selected based on criteria like holding specific tokens, completing tasks (e.g., social media engagement), or participating in the ecosystem. Airdrops are typically facilitated through smart contracts or manual distribution.
Automate the process of distributing tokens to specified wallet addresses based on predefined criteria like holding certain NFTs.
Using Smart Contracts to create the tokens, eligible addresses scanned, airdrop contract then deployed, execution of contract, distribution of the tokens.
Stablecoins that are not backed by any collateral reserves but use algorithms to automatically adjust token supply based on demand. Instead, they use smart contract algorithms to automatically adjust token supply based on demand, aiming to maintain peg through controlled token issuance and burning.
Main features include decentralized stability with no reliance on central reserves and a dynamic mechanism adjusting to supply to match demand. The failure Terra Luna (UST) in 2022 was an example.
The act of distributing, apportioning, or assigning something, especially money or resources, for a specific purpose or to particular persons or things.
A smart contract or individual paying out corporate dividends or any form of compensation for holding a certain asset.
Any cryptocurrency other than Bitcoin. These coins were introduced as alternatives to Bitcoin and typically serve various purposes or have different features than Bitcoin.
These can include digital assets such as Ethereum, Cardano, XRP, Avalanche and many others.
This is a cryptocurrency designed to be an elastic-supply stablecoin that adjusts its supply daily based on market demand to maintain price stability. Unlike traditional stablecoins, it is not pegged to a specific value but aims to have a stable purchasing power over time.
Features include elastic supply mechanisms, non-dilutive supply adjustments, decentralized and autonomous, and use case.
Is the total amount of interest that will be earned on a deposit over a one-year period, taking into account the effect of compounding interest.
Certain assets and financial products with give you the ability to earn interest from holding their products through lending fixed or flexible.
Refers to the laws, regulations, and procedures aimed at preventing criminals from disguising illegally obtained funds as legitimate income. It encompasses a broad range of measures and controls that financial institutions and regulated entities must implement to detect, monitor, and report suspicious activities related to money laundering and terrorist financing.
Firms, Broker Dealers, Financial firms and almost all corporate companies have some short of AML or compliance protections setup within these places.
A security program designed to prevent, detect, and remove malicious software (malware) from computers, mobile devices, and networks.
Some applications and features include Real-Time Scanning, Malware Detection, Periodic Scanning, Quarantine and Removal, and Additional Protections.
Contain application code that enables communication and automation across different devices and systems integrated with the blockchain.
A decentralized crowdfunding platform uses an ALC to automatically release funds to a project if it reaches its funding goal and refund contributions if the goal is not met within a specified time.
A unique identifier used to authenticate and authorize a user, developer, or calling program to an API.
Some benefits from APIs include facilitates interoperability between different systems, saves development time by leveraging existing functionalities, and Promotes scalability and flexibility in application design.
An increase in value of an asset over time. This can occur due to various factors such as market demand, economic conditions, or the asset's inherent value.
Some of the direct benefits of appreciation include Wealth Growth for the net worth of the asset holders and gives inventive to invest for future profit on store of value.
A decentralized exchange of one cryptocurrency for another without the need for a centralized intermediary or third party. Peer to Peer transfers or trading.
Some of the applications used by atomic swaps include Decentralized Trading, Cross-Chain Interoperability, Fee Reduction, and Increased Security.
A comprehensive review and analysis of a protocol's smart contract code to identify potential security vulnerabilities, coding flaws, and inefficiencies before deployment.
Will be used in situations like Financial Audits, Smart Contract Auditing, IT Security Audits, and Operational Audits are just some examples.
A decentralized exchange protocol that uses liquidity pools and mathematical formulas to facilitate automated trading of cryptocurrencies without relying on traditional order books or intermediaries.
Some benefits include decentralization, 24/7 liquidity, and efficiency execution of trades.
The ability to execute automatically and independently, without relying on external triggers or intermediaries, based solely on the predefined conditions and rules encoded in their code.
In Decentralized Finance (DeFi): Platforms and protocols that operate without central authority, using smart contracts to autonomously manage transactions and assets. A good example of this is a DeFi lending platform that autonomously manages loans and collateral.
The name given to the original proof-of-stake blockchain that was launched by Ethereum in 2020 as part of the transition to Ethereum 2.0.
Ethereum has gone through many phases but one of the biggest changes was from Proof-Of-Work to Proof-Of-Stake.
Refers to a downtrend in the prices of a market. Usually negative sentiment.
Some characteristics of bear markets include declining prices, negative sentiment, and lower trading volume.
The percentage of the total cryptocurrency market capitalization that is held by Bitcoin alone.
In some situations traders use Bitcoin market dominance as an indicator for when to move into smaller altcoins.
A rare, surprising, and unexpected occurrence that has a major impact and is rationalized in hindsight as being predictable.
Some events such as the COVID-19 Pandemic which disrupted global supply chains and accelerated some digital transformation.
Each block on a blockchain is a container that holds a record of transactions, ensuring secure and transparent record-keeping.
Used within cryptocurrency transactions recording the sender and receiver on the immutable ledger. Can help with supply chain management, and real estate for transparency.
A web-based tool that allows users to search, view and analyze data on a blockchain network. Takes raw data from blockchain nodes directly creating a search engine for blockchain.
Blockchain explorers provide transparency and accountability in decentralized systems by making complex blockchain data accessible to everyone. They are essential tools for developers, researchers, investors, and everyday users navigating the blockchain ecosystem.
Each block contains a unique hash of its data and the hash of the previous block, forming a sequential and immutable chain. This structure ensures the integrity, security, and chronological order of transactions within the blockchain.
Hash functions link blocks together in a blockchain, making it difficult to alter previous blocks without being detected and in most situations cannot be done after confirmation helping overall trust.
The incentive given to miners or validators for successfully validating a new block of transactions and adding it to the blockchain. It serves as a key incentive mechanism in blockchain networks, ensuring security, decentralization, and transaction validation.
Block rewards are fundamental to blockchain ecosystems, balancing incentives for participants while managing cryptocurrency supply and demand dynamics. Bitcoin rewards via Proof of Work, Ethereum rewards via Proof of Stake.
Block verification is the process of confirming the validity and authenticity of transactions and data within a block before it is added to the blockchain. Validators or miners ensure that all transactions adhere to the network's rules and consensus mechanisms, preventing fraudulent or invalid data from being incorporated into the blockchain.
Transaction occurs and other nodes on the network verify the new block, and if valid, it is added to the blockchain.
A decentralized, distributed ledger technology that records transactions across multiple computers in a way that ensures security, transparency, and immutability.
Will and can be used for so many different industries. Supply chain management, Healthcare, Finance & Banking, Real Estate, Voting Systems, Energy Sector and many more to come.
Is defined by not tied to any single blockchain network. This allows it to provide oracle services across various blockchain platforms, enhancing its utility and adoption. Also having the built from the ground up approach, gives better ability to fix issues from the core source or getting ahead of these problems.
Some applications with these types of tools would be Metamask which is a wallet that supports multiple blockchains and layer-2 networks. Chainlink also provides decentralized oracles across various blockchains.
A mechanism that facilitates interoperability between two or more separate blockchain networks, allowing the transfer of assets and data between them.
These bridges address the lack of interoperability between blockchains, allowing users to move tokens, interact with decentralized applications (dApps), and share information across ecosystems. Though major vulnerabilities dop exist from exploits on these specific types of projects.
The first miner or node to solve the puzzle gets to create a new block containing the verified transactions and is rewarded with newly minted token. Can have different methods of achieving these solutions depending on the blockchain
An example would be with bitcoin mining which payments are received per block and uses the transaction fees.
Blockchain governance encompasses the decision-making processes and coordination mechanisms for blockchain projects, while blockchain voting leverages the technology for secure and transparent electronic voting systems.
Blockchain governance and voting mechanisms are critical for maintaining decentralized ecosystems while enabling efficient decision-making. However, they require careful design to balance decentralization, security, and fairness. Participation and the easy access to these systems for users, is a current issue commununites are facing.
These companies develop blockchain solutions, provide blockchain-as-a-service, or are otherwise involved in blockchain technology.
Ripple or XRP doing international money transfers on there ledger through Bank of America.
Can also known as a destination tag or memo field, is an additional piece of information attached to certain cryptocurrency transactions.
They are essential tools for ensuring accurate fund transfers in shared wallet environments like exchanges. While they add an extra step to certain cryptocurrency transactions, their role in preventing errors and misallocations makes them invaluable for efficient crypto operations.
A bridge currency is a digital asset used to facilitate the transfer of value between two or more blockchain networks. This process eliminates the need for maintaining multiple nostro/vostro accounts and pre-funding in various currencies.
XRP serves as a bridge currency, allowing financial institutions to convert fiat currencies into XRP, transfer it across borders, and then convert it back into the desired fiat currency at the destination.
A broker is an individual or firm that acts as an intermediary between buyers and sellers in various markets, such as stocks, real estate, forex, or commodities. Brokers facilitate transactions by connecting parties, executing trades, and providing additional services like market analysis or investment advice. They earn compensation through fees or commissions.
Brokers are essential in ensuring efficient market operations across various sectors while providing valuable services to both individual and institutional clients.
Brokers will be required to report investor sales and exchanges of digital assets starting in 2025 assets results in capital gains or losses, which are reported on Form 8949 and summarized on Schedule D of the Form 1040.
Laws and Regulations will continue to develop within the digital asset space during 2025 starting with classifications, and applications of laws in the U.S.
A type of financial account that allows individuals to buy, sell, and hold a variety of investment securities such as stocks, bonds, mutual funds, and ETFs.
Brokerage accounts are versatile tools for achieving financial goals, offering access to diverse investment options with the potential for significant growth while requiring careful management of risks and taxes.
A bull market refers to a prolonged period of rising asset prices, typically rising recent lows, across financial markets such as stocks, real estate, bonds, or cryptocurrencies. It is characterized by investor optimism and confidence in continued growth, often coinciding with strong economic performance and low unemployment rates.
Bull markets signal economic strength and provide opportunities for portfolio growth, but they require careful planning to mitigate risks associated with sudden downturns.
The process of permanently removing a cryptocurrency or token from circulation by transferring it to an address or smart contract from which it cannot be retrieved or spent.
Crypto burning is a widely used deflationary tool in tokenomics, helping projects manage supply, incentivize holders, and stabilize ecosystems. However, its effectiveness depends on broader market dynamics and project execution.
Refers to how effectively a company utilizes its invested capital to generate revenue growth.
Capital efficiency is crucial for businesses of all sizes, ensuring sustainable growth, profitability, and resilience in changing market conditions.
The sale or exchange of digital Reporting Requirements: Taxpayers must maintain detailed records of digital asset transactions, including date, U.S. dollar value, and purpose.
For more detailed guidance: IRS Publication 544: "Sales and Other Dispositions of Assets" IRS Publication 550: "Investment Income and Expenses" IRS Schedule D Instructions Understanding capital gains and losses is essential for effective tax planning and compliance with IRS regulations and laws will drastically change these rules.
The total amount of greenhouse gasses, primarily Carbon Dioxide and Methane, emitted by an individual, organization, or activity over a specific period.
Understanding and managing carbon footprints is essentially used tracking pollution, for combating climate change and achieving sustainability goals.
The process of concentrating authority and decision-making power within a central group or location.
Centralization is ideal for organizations seeking efficiency, consistency, and strong oversight. Understanding its benefits and limitations helps businesses determine whether centralization aligns with their goals.
A digital platform that facilitates the trading of cryptocurrencies and other digital assets, where transactions are managed and executed by a central authority or entity.
Centralized exchanges are essential on-ramps for newcomers to cryptocurrency, bridging the gap between traditional finance and digital assets. However, their centralized nature raises questions about trust, security, and alignment with blockchain's decentralized principles. As such, they coexist with decentralized exchanges (DEXs), which offer alternative trading models without intermediaries.
Traditional financial systems and services that are controlled and regulated by centralized authorities, such as governments, banks, and other financial institutions.
CeFi plays a crucial role in connecting traditional financial systems with the emerging blockchain ecosystem. It provides a gateway for users to access cryptocurrencies while offering the convenience and security of centralized platforms. However, it contrasts with DeFi's decentralized ethos by relying on intermediaries, making it more suitable for those seeking simplicity over complete control of their assets.
provides a verifiably tamper-proof source of randomness for blockchain applications. It works by combining block data that is still unknown when the request is made with the Chainlink oracle node's pre-committed private key to generate a random number and a cryptographic proof.
Imagine creating a random number generator or rolling dice for a game and need some type of random outcome.
Off-chain transaction paths that allow participants to conduct numerous transactions privately, with the final state settled on-chain, optimizing for high transaction throughput and low costs.
Channels are essential for efficient communication, secure data sharing, and customer engagement. Whether through traditional tools or emerging technologies like blockchain, leveraging the right channels can improve operations, enhance user experience, and maintain compliance in a rapidly evolving digital landscape.
The current amount of a token, cryptocurrency, or any asset that is circulating in the market and available to the public.
Understanding circulating supply is essential for evaluating an asset's market position, liquidity, and potential price movements. It provides investors and analysts with insights into how accessible and scarce a digital asset is within the market.
Once a transaction is completed the chain connected between the lightning nodes will close to reduce congestion on-chain, with the process starting again once another transaction is headed for approval.
Channel closure is essential for maintaining trust lessness and finality in blockchain systems. It ensures that off-chain interactions are securely resolved on-chain while minimizing costs and improving scalability.
Applications or services that are hosted, accessed, and operated remotely via the internet, with data storage and processing performed on remote servers rather than on local devices, providing scalability, accessibility, and flexibility to users.
Cloud-based software drives innovation by enabling businesses to operate more efficiently, scale effortlessly, and adopt cutting-edge technologies like AI and data analytics. It’s an essential tool for modern organizations aiming to stay competitive in a digital-first world.
is a method of securely storing cryptocurrencies offline, away from internet-connected devices, to protect private keys from cyber threats like hacking, phishing, and malware. It is considered one of the more secure options for safeguarding digital assets, especially for long-term holdings.
Cold storage is essential for anyone prioritizing security over convenience in managing cryptocurrency assets. It is particularly suitable for high-value holdings and long-term investments, offering peace of mind against evolving cyber threats.
Refers to the concept of staking coins on a wallet that is not connected to the internet. This is often done with an offline hardware setup or wallet.
By combining the security of offline storage with the earning potential of staking, cold storage staking offers a robust solution for securing digital assets while participating in blockchain networks. However, careful planning and validator selection are crucial for maximizing returns and minimizing risks.
A physical hardware wallet that usually looks like a USB thumb drive or a small gadget with a screen and USB port. It offers users the ability to keep their digital assets offline and in a secure physical space, safe from online hacking.
Cold wallets provide peace of mind by significantly reducing the risk of unauthorized access and online threats. While they require careful handling and setup, they remain the gold standard for securing digital assets in the cryptocurrency space.
Collateral is an asset that a borrower pledges to a lender as security for a loan. It serves as a safeguard for the lender, ensuring they can recover their funds if the borrower defaults on repayment.
Collateral is a cornerstone of both traditional and decentralized lending systems, enabling borrowers to secure funding while providing lenders with assurance against default risks. However, borrowers should carefully assess the risks of pledging valuable assets before entering into secured loan agreements.
A crucial concept in decentralized finance (DeFi) lending and borrowing. It refers to the maximum percentage of the collateral value that can be borrowed against a specific asset.
This metric plays a critical role in managing risk and ensuring the stability of DeFi lending platforms.
CDP protocols allow users to lock up cryptocurrency or token as collateral to generate stablecoins or other assets. The collateral must be maintained above a certain value to avoid liquidation, ensuring the stability of the issued assets.
CDPs are a cornerstone of DeFi, enabling users to unlock liquidity while retaining ownership of their digital assets. They provide a decentralized alternative to traditional loans, fostering financial inclusion and innovation in blockchain-based ecosystems.
Loans secured by digital assets, with borrowers usually depositing more collateral than the loan amount to negate lender risk.
Collateralized loans are vital tools for accessing capital while minimizing risk for lenders. They enable borrowers to secure favorable terms and higher borrowing limits by leveraging valuable assets responsibly.
Specifically refers to a cryptographic protocol in some blockchain applications, where data is first committed (hashed and submitted) to the blockchain, and later revealed & confirmed by the blockchain itself (nodes or other ways of approval).
Understanding the concept of "commit" across contexts is crucial for navigating legal systems, managing financial agreements, and ensuring effective collaboration in technology projects.
Commodities are raw materials or primary goods that are either consumed directly or used as inputs in the production of other goods.
Commodities are essential building blocks of the global economy and offer unique opportunities for investors to diversify portfolios and hedge against inflation. However, they come with risks like volatility and storage costs that require careful consideration before investing.
Stablecoins backed by reserves of commodities like precious metals or other real-world assets.
These stablecoins aim to combine or bridge the stability of tangible assets with the flexibility and accessibility of blockchain technology, offering a unique investment, transactional tool, and another form of liquidity in digital markets.
Community participation refers to the active involvement of individuals, groups, and organizations in decision-making processes that affect their lives and communities.
In a Decentralized Autonomous Organization community focuses on things like Social engagement, DAO contributions, tickets & support help, community participation badges, identification verification confirmation.
The act of adhering to rules, regulations, guidelines, or specifications. It involves conforming to a set of standards or requirements imposed by external authorities or internal policies.
Compliance is essential for maintaining operational integrity, protecting stakeholders, mitigating risks across industries, and heavily regulated when it comes to anything that involves money transferring in general.
Compound Interest is the interest calculated on both the initial principal and the accumulated interest from previous periods.
It occurs when interest is added to the principal sum of a loan or deposit, so that interest is earned on the interest from that moment on.
Consensus in blockchain refers to the process by which all nodes (computers) in a distributed network agree on the validity and order of transactions.
Decentralized systems operate efficiently with Consensus mechanisms, they are crucial for maintaining trust, security, and functionality in blockchain networks.
A system used in blockchain networks to achieve agreement among distributed participants on the state of the network and the validity of transactions.
Some examples of mechanisms are Proof of Work (POW), Proof of Stake (POS), Delegated Proof of Stake (POS), and Delegated Proof of Stake (DPoS).
A consensus model is a framework or mechanism that enables decentralized networks, like blockchains, to agree on the validity of transactions and the current state of the ledger.
It ensures that all participants (nodes) in a distributed system reach a unified agreement without relying on a central authority.
Contributor is an individual or entity that actively participates in a project, organization, or community by providing their time, skills, resources, or expertise to achieve a common goal.
Contributors play a vital role in driving the success of initiatives across various domains, from corporate environments to community projects. Their active participation fosters collaboration and innovation while driving progress toward shared goals. Can also be specifically for a blockchain project be focused on developers or individuals actively working on and submitting code commits to open-source projects, with their level of contribution often used as an indicator of the project's development activity, health, and sustainability.
The exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something, such as a literary, musical, or artistic work. It is a form of intellectual property protection that gives the creator of an original work the right to control how their work is used and distributed.
Copyright ensures that creators retain control over their original works while fostering innovation and cultural development by protecting intellectual property rights. The digitization of art with the Non-Fungible Assets or NFT craze brought a wider eye to having an understanding of what is allowed by copyright law.
The risk that one party involved in a financial transaction or contract may fail to fulfill its obligations, resulting in an economic loss for the other party.
Counterparty risk is an essential consideration in any financial transaction involving mutual obligations. Proper assessment and management—through credit evaluations, collateralization, diversification, and regulatory compliance—are critical for mitigating potential losses and ensuring stability within financial markets. Extremely important for businesses in finance, investors and situations where their is a party lending money.
The transfer of funds or value between individuals, businesses, or financial institutions located in different countries or jurisdictions, typically involving currency conversion and international transaction processing.
Cross-border payments are evolving rapidly thanks to technological innovations like blockchain's transparency, AI-driven compliance tools, digital currencies, and real-time payment networks at faster speeds.
Developed by Chainlink, this protocol aims to facilitate seamless communication and transactions between different blockchain networks.
By enabling seamless communication between blockchains while prioritizing security and efficiency, CCIP opens new possibilities for decentralized applications, DeFi protocols, gaming ecosystems, and enterprise solutions.
The communication and exchange of data or messages between different blockchain networks or protocols, enabling interoperability and interaction between disparate blockchain ecosystems.
Some blockchains that have these types of systems include Chainlink CCIP (Cross-Chain Interoperability Protocol), Cosmos IBC (Inter-Blockchain Communication Protocol), Polkadot Relay Chain, and Axelar Network.
A mechanism that enables the exchange of tokens issued on one blockchain for tokens issued on a different blockchain without a centralized intermediary.
Through technologies like atomic swaps, wrapped tokens, and cross-chain bridges, it enables decentralized, secure, and efficient trading across ecosystems while enhancing liquidity and user experience.
A messaging format and language used for communication between different consensus systems, enabling interoperability among parachains and other blockchains.
XCM is a transformative innovation that addresses one of blockchain's biggest challenges: interoperability across diverse ecosystems.
Shards will be able to communicate with each other, allowing for seamless interaction between dApps and smart contracts across different shards.
Cross-shard communication is a critical component of sharded blockchain systems, enabling scalability without sacrificing interoperability or user experience.
Banks, financial institutions, or payment companies that offer crypto-related services or have exposure such as custody of cryptocurrencies or digital assets,
Navigating regulatory challenges and ensuring robust security will be critical for widespread adoption and trust in this emerging sector.
It is a financial product that allows users to borrow fiat currency or stablecoins by collateralizing their cryptocurrency holdings. Unlike traditional loans, these lines of credit are flexible, enabling borrowers to access funds as needed without selling their crypto assets.
While they offer significant advantages like tax efficiency and lower interest rates, borrowers must carefully manage risks such as market volatility and liquidation thresholds.
Companies involved in cryptocurrency mining operations, manufacturing mining hardware, or providing related services.
Crypto mining remains an important part of blockchain technology especially with Bitcoin, with publicly traded companies, and hardware manufacturers continuously innovating to meet growing demands while addressing sustainability challenges.
A type of virtual currency that uses cryptography to secure transactions. Examples include Bitcoin and other decentralized digital currencies.
The IRS defines cryptocurrency as a type of digital asset and treats it as property for federal tax purposes, not as currency. This classification has significant implications for how cryptocurrency transactions are taxed and reported. (Laws changing in 2025*)
Cryptocurrency exchanges or Trading Platforms are the new "digital platform" that facilitate the buying, selling, and trading of cryptocurrencies.
Cryptocurrency exchanges are critical gateways into the digital asset ecosystem, offering diverse tools for beginners and seasoned traders alike.
Stablecoins backed by other cryptocurrencies like Ethereum or Bitcoin that are locked up as collateral in smart contracts. They often require over-collateralization to account for volatility.
These are commonly used for DeFi Protocols that are lending, borrowing, and yield farming due to stability in nature.
Investment funds or products that provide exposure to cryptocurrencies or blockchain companies.
Cryptocurrency and blockchain investment vehicles offer diverse opportunities for investors seeking exposure to this dynamic asset class, though until the industry evolves more with the product side and regulations worldwide proceed with caution.
A mathematical mechanism or technique used to verify the authenticity, integrity, or validity of data or transactions on a blockchain network through the use of cryptographic algorithms and techniques, ensuring security and trust in the system.
Cryptography is essential for securing modern digital communications, protecting sensitive data, and enabling trust in online interactions.
A mathematical function that takes an input of any size and produces a fixed-size output, known as a hash value or message digest.
Used for Data Integrity Verification, Password Storage, Digital Signatures, general Blockchain Technology for confirmations and many other use-cases.
A mathematical mechanism or technique used to verify the authenticity, integrity, or validity of data or transactions on a blockchain network.
Cryptography is integral to many aspects of modern life, including when you secure online transactions (e.g., e-commerce and banking), protecting sensitive communications (e.g., emails, messaging apps), and digital currencies like Bitcoin which rely on cryptographic principles. Military and government communications to safeguard classified information
A regulated third-party entity that securely holds and manages the private cryptographic keys required to access and transfer a user's or institution's digital assets on their behalf.
Custodians are indispensable in both traditional finance and the digital asset space. They provide peace of mind by safeguarding assets while enabling smooth transactions and compliance with regulatory requirements. Whether managing stocks or cryptocurrencies, custodians ensure the integrity and security of investments.
A program built on top of a decentralized network using blockchain technology. It combines the power of smart contracts with a user interface to allow people to utilize blockchain technology in new ways. dApps are not controlled by a single authority, and their rules are enforced by the network maintaining the blockchain.
The biggest examples given is Finance specifically referring to Decentralized Finance or DEFI applications where users can trade, access lending or borrowing, and cross border payments.
Decentralization is a core principle of blockchain technology, representing a shift from centralized control to distributed systems where authority and decision-making are shared among participants.
Decentralization fosters trustless systems that remove reliance on intermediaries, reducing costs with faster consensus/decision making, enhancing security, and promoting fairness.
contracts establish the rules and governance mechanisms for decentralized organizations where decisions are made by voting based on the coded rules rather than a centralized authority. The DAO usually has smart contracts that automates execution based on voting outcomes.
DAOs represent a revolutionary shift in organizational governance by leveraging blockchain technology to create transparent, democratic, and efficient systems.
Blockchain platform using smart contracts to automate and secure transactions, making them a critical component of the decentralized finance (DeFi) ecosystem.
A digital platform that facilitates peer-to-peer trading of cryptocurrencies and other digital assets directly between users, eliminating the need for intermediaries and providing greater control and privacy over transactions.
A system of financial applications that operate on blockchain networks without relying on central intermediaries like banks or brokerages.
Applications such as Decentralized Exchanges, Lending and Borrowing Platforms, Derivatives, and many others.
A digital platform that allows buyers and sellers to trade directly with each other without the need for intermediaries like corporations or banks. It operates on a distributed ledger technology like blockchain, ensuring transparency, security, and efficiency in transactions.
Applications will be built for E-Commerce, Real Estate, Supply Chain Management, Gaming, Agriculture, and many other possibilities. The biggest hurdle is the blockchain technology needs to continue improving with better user interfaces that are more accessible and into our everyday lives like automatically being built into our internet explorers/web browsers.
A network of decentralized nodes that connects blockchain-based smart contracts with real-world data. This allows smart contracts to interact with external data sources, such as APIs, to execute based on real-world events. While also having top tier security for protecting all these contracts.
An example would be provide real-time price data for assets used in lending platforms, automated market makers (AMMs), and synthetic asset protocols (e.g., Chainlink Price Feeds), or Facilitates the tokenization of physical assets like real estate or stocks by providing accurate market valuations and regulatory compliance. data.
A sustained decrease in the general price level of goods and services in an economy over time.
A very well know example was actually The Great Depression in the 1930s where severe deflation occurred due to falling demand and a contracting money supply.
When we are referring to delegation we are focusing situations where users give others the ability or permission to lend there coins for a return.
Staking Pools is a example where you would give permission for the owner of the entire pool to use your tokens to earn interest for you and others involved within the pool itself.
Also known as the Cancun-Deneb upgrade, is a major scalability-focused upgrade for the Ethereum network that went live on March 13, 2024.
The Dencun upgrade has laid the foundation for further advancements in Ethereum’s roadmap: It serves as a stepping stone toward full Danksharding, which will further enhance scalability. The upcoming Pectra upgrade in 2025 will build on Dencun’s improvements with features like account abstraction, blob expansion, and enhanced staking rewards.
Digital Asset derivative protocols offer financial instruments whose value is derived from underlying assets, such as futures, options, and swaps. These instruments allow users to hedge risks, speculate on price movements, and gain exposure to various assets.
Crypto derivatives are transforming how traders interact with digital assets by offering innovative tools for hedging risks, speculating on prices, and enhancing liquidity within both centralized and decentralized ecosystems. As blockchain technology continues to evolve, these instruments are becoming more accessible while integrating seamlessly into decentralized finance platforms. Since overall market size isn't as large as traditional markets, volatility is a major risk.
A DEX (Decentralized Exchange) Aggregator is a blockchain-based platform that combines liquidity from multiple decentralized exchanges (DEXs) to offer users better prices, reduced slippage, and optimized trading routes.
Aggregate liquidity from multiple DEXs.
A digital asset is any item that exists in a digital format and holds value, whether tangible or intangible. In the blockchain and cryptocurrency sectors, digital assets are often tokenized representations of value or ownership recorded on distributed ledger technology (DLT), such as blockchain.
From cryptocurrencies like Bitcoin to tokenized real-world assets such as real estate or art, they offer new opportunities for investment, innovation, and financial inclusion. With clarity on regulation, the technological advancements and improvements will increase dramatically.
A collection of data and attributes that uniquely identifies an individual, organization, device or other entity in the digital realm. It serves as a digital representation or online persona associated with real-world identities.
People think the only use-case is for individuals ID but there are many others such as making the identification process more efficient for KYC in financial services, healthcare patient records seamlessly sharing between providers with permission of patients, and other tools like supply chain management tracking.
A cryptographically secured digital representation of value, rights, assets, or access privileges that exists on a blockchain or distributed ledger network.
Digital tokens are still in there early phase with tokenization now becoming more prevalent. Some use-cases could be micropayments for small value transactions, further expansion of DeFi services like lending and staking, and broader adoption of tokenized assets overall.
Distribution Phase or the the "topping" stage occurs when the asset begins to reach its peak and sellers start to dominate.
One of the 4 market cycles accumulation, markup, distribution, and markdown.
A portion of a company's profits that is distributed to its shareholders, typically in the form of cash payments.
Dividends are an essential tool for rewarding shareholders and signaling financial strength while providing steady income to investors. Whether paid in cash or stock, dividends can play a significant role in building wealth over time when incorporated into a balanced investment strategy.
A dusting attack is a malicious tactic used in the cryptocurrency space to compromise the privacy of wallet owners. It involves sending tiny amounts of cryptocurrency, known as "dust," to multiple wallet addresses.
Sending small amounts of cryptocurrencies to many addresses to which wallet is owned by who.
In cryptocurrency, digital assets, and blockchain interconnected networks of projects, platforms, and communities that collaborate and interact within the broader digital currency.
As blockchain adoption grows globally, understanding these ecosystems is crucial for navigating their potential benefits and risks effectively—whether you're an investor, developer, or end-user seeking to engage with this transformative technology.
A country or region with an economy that is in the process of rapid growth and development, typically characterized by factors such as increasing industrialization, urbanization, and rising incomes, but may also involve higher risk due to factors such as political instability or underdeveloped infrastructure.
As these economies continue to grow in size and influence—accounting for a majority share of global GDP growth, they will remain central to shaping the future of trade, sustainability efforts, and investment strategies worldwide.
A type of fungible digital asset built on the Ethereum blockchain, adhering to a standardized set of rules that enable compatibility and interoperability with other Ethereum-based tokens and smart contracts.
Popular Examples of ERC-20 Tokens: Tether (USDT): A stablecoin pegged to the US dollar for low-volatility transactions. USD Coin (USDC): A transparent stablecoin widely used in DeFi applications. Wrapped Bitcoin (WBTC): Brings Bitcoin liquidity to Ethereum’s ecosystem. Uniswap (UNI): Governance token for the Uniswap decentralized exchange. Chainlink (LINK): Powers decentralized oracle networks that connect smart contracts with real-world data.
A type of non-fungible token (NFT) on the Ethereum blockchain that adheres to a specific technical standard. ERC-721 tokens are unique, indivisible, and represent ownership of distinct assets.
Popular Examples of ERC-721 Tokens: CryptoPunks: A collection of 10,000 unique pixelated characters that pioneered NFT art. Bored Ape Yacht Club (BAYC): A popular NFT collection featuring cartoon apes with varying traits.
An Exchange-Traded Fund (ETF) is a type of investment fund that trades on stock exchanges, similar to individual stocks. ETFs are designed to provide investors with exposure to a basket of assets, such as stocks, bonds, commodities, or other securities, in a single investment.
ETFs are versatile investment vehicles offering low-cost access to diversified portfolios across various asset classes and markets.
They serve as a means for the Ethereum community to propose, discuss, and track the progress of new ideas or enhancements to the platform.
An example of a proposal would be EIP-1559: where a new fee structure was introduced with a base fee burned per transaction, improving predictability and reducing inflationary pressure on Ether.
Used to ratify the Parameters determined by the models and data accepted by Governance Proposals. Executive votes result in state changes inside the Maker Protocol and occur every quarter.
Some types of executive proposals can include Standard Track (EIP) which focus on technical changes to the Ethereum protocol or application standards. Meta Track (EIP) which focuses on addressing governance processes or decision-making frameworks rather than technical changes. Also, Informational Track (EIP) which provide recommendations or insights without requiring implementation.
Any data repository or system located outside of an organization's primary data infrastructure, from which data can be accessed and integrated.
An example in Decentralized Finance (DeFi) would be real-time price feeds for lending/borrowing platforms, automated market makers (AMMs), and derivatives trading.
The central bank that manages monetary policy, ensures the stability of the financial system, and provides key banking services to support the effective operation of the U.S. economy.
The structure of the Federal Reserve system consists of 3 parts. Board of Governors, 12 Regional Reserve Banks, and Federal Open Market Committee (FOMC).
Is a consensus mechanism used in blockchain networks where a group of trusted validators communicate and vote on transaction validity, facilitating agreement among nodes while allowing for network scalability and resilience.
Applications include Ripple where cross-border payments and transaction validation. Stellar employs its own version of FBA called Stellar Consensus Protocol (SCP).
A systematic arrangement of fees that outlines how and when charges are applied for services provided.
Comparing different exchanges. trading platforms. asset classes will all have different fee structure usually depending on amount being traded. and assets under management.
These are the most common type of stablecoins, backed by reserves of fiat currencies like the U.S. dollar or euro held in a custodial account. The reserves act as collateral to maintain a 1:1 peg with the fiat currency.
Examples of current stablecoins include Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and Paxos Standard (PAX).
A digital asset used to access or pay for decentralized file storage services on blockchain-based platforms, allowing users to store, retrieve, and manage files securely and efficiently.
File storage tokens represent a shift toward decentralization in how data is stored and managed online. They address critical issues such as high costs, lack of ownership, security vulnerabilities, and censorship associated with centralized cloud services. For example having the ability to use the extra space on your computer as cloud storage, for "rent" earning you income.
A regulatory body in the United Kingdom responsible for overseeing the conduct and operations of financial firms and markets.
The FCA exists to protect consumers, maintain market integrity, and promoting fair competition within the markets.
The Financial Conduct Authority (FCA) is the United Kingdom's independent financial regulatory body, established on April 1, 2013. It plays a critical role in overseeing the financial services industry, ensuring market stability, consumer protection, and fair competition.
Can compare to agencies in the United States like the Securities and Exchange Commission and FINRA for example. Rulemaking and non criminal enforcement are a few focuses of the FCA.
A self-regulatory organization that oversees and regulates broker-dealers and their registered representatives in the United States.
While FINRA plays a critical role in regulating financial markets, it faces challenges such as keeping up with evolving technologies like cryptocurrency trading platforms or addressing gaps in oversight for private markets where regulation is less stringent
Is the government agency responsible for regulating and supervising financial markets and institutions in South Korea.
The FSC plays a crucial role in maintaining trust in the financial system by ensuring that institutions operate ethically and transparently while protecting consumers from potential risks like fraud or mismanagement Similar to our financial protection bodies in the United States. (SEC, FINRA etc.)
A type of uncollateralized loan in decentralized finance (DeFi) where a user can borrow assets without providing any collateral. Made mainly for using for faster transactions, arbitrage trades where loan is paid back within seconds or sometimes one blockchain transaction.
Flash loans are a groundbreaking innovation in decentralized finance, offering instant access to capital without collateral requirements. While they enable profitable strategies like arbitrage and debt refinancing, they also pose significant risks due to their potential for misuse in attacks on vulnerable protocols.
Flash loan attacks are simply when malicious users borrow large amounts of capital using flash loans and attempt to manipulate markets or exploit vulnerabilities.
Common techniques used in flash loan attacks are Price Manipulation, Oracle Exploitation, Reentrancy Attacks, and Collateral Manipulation.
A divergence in the protocol's codebase, resulting in two separate versions of the blockchain, typically occurring due to disagreements among the network participants regarding updates or changes to the protocol.
Forks can occur intentionally (to upgrade or modify the blockchain) or unintentionally (due to temporary network issues). They are an essential part of blockchain evolution, enabling updates, resolving disputes, and introducing new features.
Schedule D is a tax form used by individuals, estates, and trusts to report capital gains and losses from the sale or exchange of certain assets.
Schedule D is essential for taxpayers with capital asset transactions during the year. Properly completing it ensures accurate reporting of gains/losses and helps you take advantage of potential deductions like loss carryovers while complying with IRS regulations.
This form is used to report rewards/ fees and income earned from staking and other such programs if the amount exceeds $600 or more in a tax year.
Form 1099-MISC is essential for both payers and recipients in reporting miscellaneous income accurately to the IRS. Understanding its requirements ensures compliance with tax laws while avoiding potential penalties.
Form 8949 is an IRS form used to report sales and exchanges of capital assets, such as stocks, bonds, real estate, cryptocurrency, or other investments.
It provides detailed information about each transaction and is a crucial step in calculating capital gains or losses, which are then summarized on Schedule D of your tax return.
Fractionalized assets allow individuals to own a portion of high-value assets rather than purchasing the entire asset outright.
Fractionalized assets are transforming how people invest in traditionally exclusive markets by leveraging technology like blockchain and tokenization. As regulatory frameworks evolve and platforms improve accessibility, the adoption of fractional ownership is expected to grow across industries such as real estate, digital art, private equity, and beyond.
An acronym that refers to the spreading of negative or misleading information with the intention of causing fear or doubt among investors.
Whether in investing, business competition, or politics, understanding how FUD works is essential for making informed decisions and avoiding emotional pitfalls.
Full nodes store the entire blockchain ledger, validate transactions and blocks, and enforce the network’s rules.
By understanding their role, benefits, and challenges, you can appreciate how full nodes underpin blockchain networks' transparency, trustworthiness, and resilience against manipulation or failure.
Refers to goods, assets, or commodities that are interchangeable with one another and can be readily replaced by another identical item.
This means that one unit of the asset is equivalent to another in terms of value and usability.
A type of investment fund that invests primarily in futures contracts, which are agreements to buy or sell assets at a predetermined price on a future date, providing investors with exposure to the performance of the underlying assets without directly owning them.
While they offer accessibility and liquidity, they also come with unique risks such as tracking errors, rolling costs, and volatility due to their reliance on futures contracts.
GameFi, short for "Game Finance", is a revolutionary sector that merges gaming with decentralized finance (DeFi), allowing players to earn real-world rewards through blockchain-based games by integrating elements like cryptocurrencies, non-fungible tokens (NFTs), and smart contracts.
GameFi transforms gaming from a purely recreational activity into an economic opportunity where players can own, trade, and monetize in-game assets. Can also be integrated with metaverse platforms, helping to create AI powered platforms helping to automate these digital economies that will keep bringing people back to play more/get rewarded.
A transaction cost paid by users to have their operations processed and validated on a blockchain network, particularly on Ethereum.
Gas fees are an integral part of Ethereum's ecosystem, ensuring fair compensation for validators while regulating network activity.
Governance participation refers to the involvement of stakeholders in the decision-making processes.
For example, the frequency of voting on proposals, frequency of creation of proposals, and response from community members.
Governance proposals are a fundamental component of blockchain governance, enabling stakeholders to participate in decision-making processes that shape the future of decentralized networks.
These proposals can address protocol upgrades, fee structures, new features, or governance rules.
A cryptocurrency that grants holders voter rights to participate in the governance of a decentralized protocol by allowing them to vote on key decisions and proposals that influence the future direction of the project.
Challenges like low participation rates and centralization risks must be addressed through education, incentivization mechanisms, and innovative governance models to ensure fair representation and sustainable growth in decentralized networks.
Bitcoin halving is a significant programmed event within the Bitcoin blockchain that reduces the rewards miners receive for validating transactions and adding new blocks to the blockchain.
It is a key mechanism designed to control Bitcoin’s supply, ensure scarcity, and influence its market dynamics.
A hard fork is a significant and non-backward-compatible change to a blockchain's protocol that results in the permanent splitting of the blockchain into two separate chains.
This process creates two independent networks, each following its own set of rules. Hard forks are often used to implement major upgrades, resolve disputes, or address security issues within a blockchain ecosystem.
A measure of the computational power of a cryptocurrency network, specifically the number of calculations (hashes) that can be performed per second.
The hash rate is a vital metric that underpins the security, efficiency, and stability of Proof-of-Work blockchain networks like Bitcoin. Here it can help reflect number of dedicated miners on the network and overall health of the network.
A type of smart contract used in cryptocurrency networks to enable secure, conditional payments between parties without a trusted intermediary.
From atomic swaps to payment channels like Bitcoin’s Lightning Network, HTLCs play a pivotal role in advancing blockchain scalability, interoperability, and decentralization while maintaining robust security standards.
HRMP is a temporary communication protocol used in the Polkadot and Kusama ecosystems to enable cross-chain messaging between parachains.
Used to store messages in the relay chain, very limited scalability, with unidirectional channels (one of the reasons for scaling issues for this solution).
A hot wallet is a cryptocurrency wallet that is connected to the internet, allowing users to store, send, and receive cryptocurrencies conveniently. Can receive a hot wallet when signing up for an exchange.
The constant connection to the internet makes them more vulnerable to cyber threats compared to cold storage solutions. To mitigate risks, users should follow best practices like enabling two-factor authentication, using strong passwords, limiting stored funds, and keeping recovery phrases secure offline.
They are an advanced type of blockchain-based contract that combine on-chain code with off-chain data and computation.
These contracts enable advanced use cases across industries such as finance, insurance, gaming, governance, and supply chain management while addressing limitations of traditional smart contracts like scalability and external connectivity.
These smart contracts combine elements of collateralized and algorithmic approaches for improved capital efficiency and decentralization.
Features include Combines on-chain with off-chain, enhanced through off-chain computation, decentralized verification via DONs, dynamic responses using real-world data and advanced DeFi applications. ,
The inability to modify or alter the code/information of a smart contract once it has been deployed and recorded on the blockchain.
This characteristic provides a secure, transparent, and trustworthy system for storing information and conducting transactions. ,
It refers to the temporary loss of value experienced when the price of assets deposited in a liquidity pool changes compared to when they were deposited.
It reflects the opportunity cost of providing liquidity compared to simply holding assets outright but can often be mitigated through trading fees, yield farming rewards, and strategic pool selection (e.g., stablecoin pairs).
Institutional investors are key players in financial markets, managing vast sums of capital on behalf of others and significantly influencing market dynamics.
These organizations include entities such as pension funds, mutual funds, hedge funds, insurance companies, sovereign wealth funds, and endowments.
The intangible assets that are created by individuals or organizations through their intellectual efforts. The legal framework falls under these rights.
These assets can include inventions, literary and artistic works, symbols, names, images, and logos used in commerce. IP is protected by law, which grants the creator exclusive rights over their creation for a certain period of time.
The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal amount. It represents the cost of debt for the borrower and the rate of return for the lender.
In summary, interest rates are a pivotal economic tool that affects both traditional financial markets and emerging sectors like cryptocurrencies
The federal agency responsible for administering and enforcing federal tax laws in the United States.
The IRS operates under the Department of the Treasury and is led by a commissioner appointed for a five-year term.
The ability of different systems, networks, or platforms to seamlessly communicate, exchange data, and work together effectively, often enabling cross-functional or cross-platform compatibility and collaboration.
It ensures that networks can work together while preserving their unique protocols and functionalities. Without interoperability, blockchains operate as isolated silos, limiting their utility and adoption.
The process of verifying the identity of customers and obtaining information about them before establishing a business relationship.
It involves collecting data like names, addresses, identification documents, and conducting due diligence to ensure the customer is who they claim to be.
Launchpad protocols provide platforms for new cryptocurrency projects to raise funds and launch their tokens.
They often involve initial coin offerings (ICOs) or initial DEX offerings (IDOs), where investors can buy tokens at an early stage.
Layer 2 (L2) scaling solutions are technologies built on top of existing blockchain networks (Layer 1, such as Ethereum or Bitcoin) to address key limitations like scalability, high transaction fees, and slow processing times.
These solutions process transactions off-chain or in parallel networks while leveraging the security and decentralization of the underlying Layer 1 blockchain.
Legal smart contracts are a specialized form of smart contracts that meet the requirements of legally enforceable agreements. These are smart contracts representing legally binding agreements with real-world enforceability, often used for areas like supply chain, real estate, etc.
Legal smart contracts represent a transformative evolution in how agreements are formed and executed by combining blockchain's automation with traditional legal frameworks.
Lending protocols enable users to lend their cryptocurrency assets to others in exchange for interest payments. Borrowers provide collateral to secure the loans, and smart contracts automate the lending and borrowing process.
Some factors the Lender considers when it looks at its evaluation of borrowers including Capital: The borrower’s financial investment in their venture or assets, Condition: Economic factors affecting the borrower’s ability to repay, Capacity: Cash flow and income available to meet repayment obligations, Collateral: Assets pledged to secure the loan, and Character: The borrower’s reputation and reliability.
A financial service that facilitates borrowing and lending activities, connecting borrowers seeking funds with lenders willing to provide capital.
Whether through P2P lending, marketplace models, or crypto-backed loans, these platforms offer significant opportunities but also come with risks such as credit defaults and regulatory challenges.
A high-risk investment strategy that allows traders to control a large position in a financial asset by putting up a relatively small amount of capital. It involves borrowing funds from a broker to increase the potential profits (and losses) from price movements in the asset.
In the U.S., regulators like the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) impose strict limits on leverage which will highly influence on what will be allowed by exchanges.
Lightweight nodes, also known as SPV (Simplified Payment Verification) nodes, are a type of blockchain client designed to operate with minimal resource requirements.
These types of nodes are used more for mobile wallets, emerging markets, everyday transactions and layer 2 integrations.
Liquid staking allows users to stake their cryptocurrency assets to earn rewards while still retaining liquidity. Users receive a tokenized representation of their staked assets, which can be traded or used in other DeFi protocols.
By carefully selecting trusted platforms and understanding how derivative tokens function within DeFi ecosystems, users can leverage liquid staking to maximize returns while contributing to blockchain network security and decentralization efforts.
The process of converting assets or securities into cash, typically to meet financial obligations or settle debts, often conducted at market prices to realize the highest possible value.
Liquidation in both business closures and financial trading contexts, offering a structured means of settling debts while marking the end of operations or positions.
The ease with which an asset or security can be bought or sold in the market without causing significant changes in its price.
In crypto markets, liquidity refers to how easily digital assets can be traded without significant price changes. High liquidity is critical for price stability and investor confidence. Some factors influencing crypto liquidity include trading volume, exchange listings, and market depth.
A decentralized financial mechanism where users can contribute their assets to enable trading and provide liquidity for decentralized exchanges or other decentralized finance (DeFi) protocols in return for earning fees and rewards.
Liquidity pools are a important part of decentralized finance, enabling efficient trading, lending, and earning opportunities while eliminating reliance on centralized intermediaries.
Are financial institutions or market makers that quote buy and sell prices for assets or securities, providing liquidity and facilitating trading in those markets.
One situation in Decentralized Finance liquidity providers deposit pairs of cryptocurrencies or tokens into a smart contract (a liquidity pool) to facilitate transactions on a DeFi platform.
A financial metric that compares the amount of a loan to the value of the collateral pledged to secure that loan.
A situation where there is lenders and borrows, by comparing the loan amount against the value of pledged collateral, it ensures that loans are adequately backed and helps determine favorable terms for both parties.
A lock-up period refers to a specified timeframe during which certain assets—such as shares, tokens, or other investments—are restricted from being sold, transferred, or redeemed.
In decentralized finance it can refer to a predetermined amount of time where your staked coins are held and cannot be withdrawn or traded.
A mechanism where token holders temporarily restrict the transferability or possible access of their tokens for a specified period.
Locking mechanisms are widely used in decentralized finance (DeFi), staking, tokenomics, and governance systems. Imagine a corporate governance mechanism built into these automated smart contracts where you cannot sell your equity in company until the vesting period expires.
The profit realized from selling a capital asset that has been held for more than one year.
These gains are taxed at preferential rates compared to short-term capital gains, which are taxed as ordinary income.
Losses are an inherent part of financial and business activities, representing situations where expenses, costs, or reductions in value exceed income, revenue, or gains.
If factors such as risk, cost, and hedged they also provide opportunities for learning and improvement when managed effectively.
Malware attacks are a pervasive and evolving threat in the digital world, targeting individuals, businesses, and governments.
An example of an attack vector would be getting attacked through infected files, be careful who accepting things from and where it originated from as well.
Also known as leveraged trading, is a strategy that allows investors to borrow funds from a broker to trade financial assets. By using borrowed money in addition to their own capital, traders can amplify their potential returns—but also magnify their risks.
With proper knowledge and preparation, margin trading can be an effective strategy for experienced investors
The markdown phase is the final stage of a market cycle, following the distribution phase. It occurs when asset prices decline steadily due to increased selling activity and waning demand.
These phases are often characterized by pessimistic investor sentiment, increased selling pressure, and heightened market volatility.
An investor or trader who submits orders to buy or sell securities at the currently available market prices, rather than setting their own desired prices.
This side of the market ensures continuous trading activity by consuming the liquidity provided by market makers.
A measure of a company's total market value, calculated by multiplying its current share price by the total number of outstanding shares, tokens of ownership.
Market cap does not reflect debt levels, profitability, or future growth potential. In crypto markets specifically, its volatility can lead to rapid changes that may mislead investors if not considered alongside other metrics.
Market cycles are trends or patterns that emerge during different time periods. These cycles are fundamental to understanding price movements across asset classes, including traditional markets and cryptocurrencies.
The phases of market cycles usually include Accumulation Phase, Markup Phase, Distribution Phase, and Markdown Phase.
A firm or individual that provides continuous bid and ask quotes for a particular security or asset, standing ready to buy or sell that asset at any time in order to facilitate trading and provide liquidity to the market.
Main functions of Market Maker include being a liquidity provider, price stabilization of the assets, and facilitating trade execution in markets.
The overall attitude or mood of investors and traders towards a particular financial market or asset, often influencing their buying and selling decisions, and can be characterized as bullish (positive) or bearish (negative).
Can be measured with metrics such as Technical Indicators, Social Media Analytics and many others.
Markup Phase happens when the market reaches a point of stability and increasing trading volumes and growing investor optimism starts moving higher in price.
While it offers significant profit opportunities for early participants, it also demands caution as euphoria-driven buying can lead to overvaluation and eventual corrections.
is the central blockchain in the TON architecture, responsible for storing the network's global configuration and ensuring the security and integrity of the entire network.
It coordinates the activities of all the TON blockchain configuration between the workchains and shardchains, maintaining a consistent state across the network.
The total amount of coins/tokens that will ever exist for that given project. Its an important metric for understanding scarcity, inflation potential, and possible long-term potential.
Projects should list how they plan to distribute/burn tokens in their white paper or business plan to help the consumer understand exactly what they are buying into.
Refers to an asset or instrument that is widely accepted as a means for buying goods and services or settling debts. It is one of the primary functions of money, alongside being a store of value and a unit of account.
Once adoption barriers are cleared up with regulation these blockchain systems can improve the efficiency of the sale being digital, purchase, and trade of goods between parties using the transparency of the ledger, and increased settlement speeds.
A type of cryptocurrency that is inspired by or based on internet memes, pop culture references, or viral online trends, often characterized by its volatile nature and lack of intrinsic value.
While they offer opportunities for quick profits and community engagement, their speculative nature demands caution from investors. Understanding their dynamics is essential before participating in this EXTREMELY volatile asset.
A comprehensive regulatory framework established by the European Union to govern crypto-assets, their issuers, and service providers.
Key provisions including Licensing Requirements, Stablecoin Regulation, Market Abuse Rules, Transparency Obligations, Anti-Money Laundering (AML) Compliance, and Cybersecurity Protections.
These are small financial transactions involving tiny amounts of money, typically fractions of a cent, used for purchasing digital goods, accessing content, or paying for services online.
Micropayments have gained prominence due to advancements in digital payment systems and blockchain technology, offering a flexible alternative to traditional payment models like subscriptions.
A computer that participates in a blockchain network to validate and record transactions on the blockchain. Common in Proof of Work (POW) blockchain application systems.
Miners are essential participants in blockchain ecosystems, ensuring security, validating transactions, and maintaining decentralization through computational work. While mining offers opportunities for rewards, it also comes with challenges like high costs, competition, and regulatory scrutiny.
These are specialized nodes that compete to solve complex mathematical problems (proof-of-work) to create new blocks and add them to the blockchain.
Types of mining nodes that exist include solo mining nodes operated by individuals or companies, mining pool nodes that are operated by groups of miners combining there computational power, and cloud mining nodes which are done through renting computational power from third parties.
Minting in the blockchain and cryptocurrency context refers to the process of creating new digital assets, such as coins, tokens, or non-fungible tokens (NFTs), and adding them to a blockchain.
Minting can occur through various mechanisms depending on the type of blockchain and asset being created. Its important to identify this process when evaluating the assets.
A specific type of blockchain smart contract that allows for the addition, removal, upgrade, or switching of specific components or modules without affecting the entire contract.
This new application used by smart contracts shows the continued advancements of blockchain overall but still has certain downfalls with modulars. The design complexity, gas costs or fees, security risks, and some operability issues with these contracts working with others still needs improvement.
The process of concealing the origins of illegally obtained money by passing it through a complex sequence of financial transactions to make it appear legitimate.
Occurring in usually three different phases Placement where the funds are put into the financial system, followed by Layering where the funds are moved around in complex transactions, and Integration where it is cleaned into the economies through businesses or even high-end goods.
Is an ecosystem or platform that supports multiple independent blockchains, allowing for interoperability and scalability by enabling different chains to communicate, exchange data, and interact with each other while maintaining their unique properties and functionalities.
Multi-blockchain systems are increasingly important as the blockchain ecosystem grows more complex, offering a modular and adaptable solution for various use cases.
Dai stablecoin feature that allows users to generate Dai by depositing various approved cryptocurrencies as collateral, rather than just Ether (ETH) as was previously the case with Single-Collateral Dai (now called Sai).
MCD represents a significant evolution in stablecoin technology by combining decentralization with enhanced stability mechanisms.
Wallets that require multiple signatures or approvals to execute transactions, adding an extra layer of security against unauthorized access. Can even combine together authenticators alongside these technologies.
This feature enhances security and control by distributing the responsibility for managing funds among multiple parties or devices. Also helps with now having no single point of failure.
A global electronic stock exchange and trading platform headquartered in New York City. It was originally an acronym for the National Association of Securities Dealers Automated Quotations system.
This fully electronic exchange deals with multiple market makers focusing on Technology and Growth Stocks.
The process through which new blocks are created, validated, and added to the blockchain.
The type of consensus mechanism, block proposal, validation method, and approval are the common key components of the network process.
Network fees, also known as transaction fees, miner fees, or gas fees, are charges paid by users to process and validate transactions on a blockchain network.
Some reasons for the fees to exist depending on the blockchain referred can include incentivizing miners/validators, preventing spam, regulating network congestion, and to just maintain security with the fee payments.
Network participation refers to the involvement of individuals, organizations, or entities in a blockchain network.
Participants play various roles, such as validating transactions, maintaining the network's infrastructure, and contributing to its security and decentralization.
Regulatory framework implemented by the New York Department of Financial Services (NYDFS) that grants official approval to companies engaged in various virtual currency activities, such as virtual currency transmission, buying and selling, and custodial services, within the state of New York.
This was created in 2015 to increase consumer protection data safeguards. NYDFS has tightened rules on coin listings, requiring licensees to submit detailed listing/delisting policies for approval.
A node refers to any device, such as a computer or server, that connects to a blockchain network and participates in its operation.
They validate transactions, maintain consensus, store data, and ensure decentralization across blockchains. While running a node may involve challenges like resource requirements or technical complexity, advancements in technology continue to make node participation more accessible for individuals and businesses.
This is a consensus mechanism used in blockchain networks that builds on the traditional Proof of Stake (PoS) model by introducing a nomination process. In this system, token holders, known as nominators, select validators to secure the network, validate transactions, and produce new blocks.
Applications where this type of consensus exists in with the Polkadot network, and Kusama network which are focused mainly on inoperability between blockchains.
These are unique digital assets stored on a blockchain that represent ownership or proof of authenticity for a specific item, whether digital or physical. Non-Fungible Tokens (NFTs) represent a groundbreaking innovation in digital ownership by leveraging blockchain technology to authenticate unique assets securely and transparently.
While challenges such as environmental concerns and market volatility persist, the potential applications of NFTs in art, gaming, real estate, identity management, and beyond make them a transformative force in the digital economy.
A financial transaction or occurrence that does not create a tax liability or reporting requirement to tax authorities.
Activities like buying crypto with fiat, holding it long-term, transferring between wallets, donating to charities, and gifting within limits are all examples of non-taxable events under current IRS rules. However, these activities may still require careful documentation and could lead to taxable events in the future when gains are realized or dispositions occur.
NYSE is the preeminent global equity exchange, providing a trading venue for large, established public companies and known for its auction market model, strict listing standards, and iconic trading floor on Wall Street.
Some features of the New York Stock Exchange include a Hybrid (electronic + floor trading) trading environment, focusing on blue-chip companies with large market caps, and listing costs are usually higher with the bigger liquidity access.
A payment focused blockchain-based financial solution developed by Ripple that leverages the digital asset XRP to facilitate instant, low-cost cross-border payments
Financial institutions can instantly source XRP from crypto exchanges or market makers, facilitating faster and more cost-effective transactions without the need for pre-funded accounts.
Refers to software or projects whose source code is freely available for users to view, modify, and distribute, typically under a license that allows for collaboration and sharing among developers and the community.
Blockchain's foundation is built on being open source and giving people the ability to build on one another's code helping exponentially when it comes to growing these blockchain software's. Making all public on a ledger anyone could view at any moment.
Channels enable efficient transaction processing, scalability, and privacy by establishing direct or private communication pathways between participants.
An example of this occurring is when this occurs it gives the ability for the lightning nodes to connect one another giving the ability to send and receive payments.
A part of the Ethereum network and are a Layer 2 (L2) scaling solution designed to improve the scalability, efficiency, and cost-effectiveness of blockchain networks.
They achieve this by processing transactions off-chain and submitting them to the main blockchain (Layer 1) in batches, significantly reducing congestion and transaction fees. Seen as a simpler implementation than the optimization of the ZK Rollup Layer 2 solution.
A trusted external data source that provides off-chain information to smart contracts on a blockchain, including real-world assets.
Usually connected to blockchain protocols that focus on bringing in real world information or data to the networks. Chainlink enables many different protocols to establish a connection to outside Oracles that provide information, which will then be sourced and sent back to the project that requested it.
An electronic list or registry that displays the buy and sell orders for a specific financial instrument, asset, or security and usually organized by price level.
Some of the key features of an order book include buy/sell orders, market depth, bid-ask spread, price-time priority, and real-time updates.
Ouroboros Praos is an advanced proof-of-stake (PoS) blockchain consensus protocol developed by IOHK (Input Output Hong Kong) as an upgrade to the original Ouroboros Classic.
This one upgrade focused on high security standards, energy efficiency, scalable design, increased decentralized support, and global network resistance.
A situation where the value of the collateral provided by a borrower exceeds the value of the loan or investment.
It is a risk management strategy employed by traditional finance and decentralized finance lenders to enhance the security of their assets and mitigate potential losses in case of borrower default or market fluctuations.
A specialized blockchain that operates in parallel to a main blockchain (such as Polkadot or Kusama), allowing for interoperability and scalability by executing transactions independently while remaining connected to the main network for security and consensus.
Key features include high scalability due to parallel processing, native cross chain operability, shared security through validators. and decentralized governance systems.
Another feature included in Polkadot blockchain is called Parathreads which are a more flexible and cost-effective alternative to parachains, allowing developers to use Polkadot's network on a pay-as-you-go basis.
They enable applications that do not require constant blockchain connectivity to operate efficiently and affordably. This makes them an ideal option for smaller projects, experimental applications, or those with sporadic transactional needs.
Payment channels are a Layer 2 blockchain solution designed to enable fast, low-cost, and scalable transactions by allowing parties to transact off-chain while leveraging the security of the underlying blockchain.
They are Off-chain mechanisms that enable two parties to conduct multiple transactions without involving the main blockchain for each transaction, facilitating fast and low-cost transactions while reducing congestion on the blockchain network.
Refers to a decentralized network architecture where participants interact directly with each other, without the need for intermediaries, allowing for the sharing of resources, information, or services directly between individual nodes or users.
Cryptocurrencies like Bitcoin and Ethereum rely on P2P networks for transaction validation and decentralized ledger maintenance. Blockchain eliminates intermediaries by allowing direct peer-to-peer transactions. DeFi platforms enable peer-to-peer lending, borrowing, and trading without intermediaries.
A decentralized, open network where anyone can participate in the consensus process to validate transactions without needing permission or authorization from a central authority.
Some key features include open access, decentralization, transparency, in some cases anonymity, and open source development.
Persistent storage payment refers to the process of compensating decentralized storage providers for retaining data over extended periods on blockchain-based or distributed systems.
An example would be the TON Coin blockchain is the payment required from smart contracts for storing their persistent data. Each block declares rates for keeping data in persistent storage, ensuring efficient use of blockchain resources.
A cyberattack and form of social engineering in which attackers attempt to trick individuals into revealing sensitive information or taking harmful actions by posing as legitimate entities.
Phishing remains one of the most prevalent and dangerous forms of cyberattacks due to its reliance on human error rather than technical vulnerabilities. By understanding how phishing works and implementing preventive measures such as employee training, multi-factor authentication, and advanced email filtering tools, individuals and organizations can significantly reduce their risk of falling victim to these scams.
A new incentive feature for a revolutionary gaming model that combines blockchain technology, decentralized finance (DeFi), and gaming to allow players to earn real-world rewards through in-game activities.
For digital assets they use a model of blockchain-based gaming where players can earn real-world value, often in the form of cryptocurrencies or tradable in-game assets represented as non-fungible tokens (NFTs), by actively participating in the game and contributing to its ecosystem.
It can refer to a conflict of interest that arises when one party (the "agent") is authorized to act on behalf of another party (the "principal"), but their interests and incentives are not aligned.
The biggest example is corporate governance where shareholders (principals) hire managers (agents) to run a company. Managers may prioritize personal perks or short-term gains over long-term shareholder value.
A type of cryptocurrency that prioritizes privacy and anonymity for its users by employing various cryptographic techniques to conceal transaction details such as sender, recipient, and amount exchanged.
Some future applications include business payments to protect customers financial data, charitable donations that wish to remain anonymous, and decentralized finance lending or staking where larger entities don't want their name listed on every single blockchain transaction they are involved in.
Privacy protocols focus on enhancing the confidentiality and anonymity of transactions on the blockchain. They use techniques such as zero-knowledge proofs and mixing services to obscure transaction details and protect user privacy.
The opportunity by leveraging advanced cryptographic techniques like zero-knowledge proofs, stealth addresses, and off-chain solutions, these protocols enable secure and private interactions across industries such as finance, healthcare, supply chain management, and more.
A long, randomly generated string of characters that allows a user to access and control their cryptocurrency or digital assets on a blockchain network. It acts as a "master password" that grants the holder full control over their funds.
Private keys are paired with public keys, forming the foundation of blockchain security and enabling secure, trustless transactions. These are your "Proof of Ownership" keep in a safe place offline if possible.
A type of consensus mechanism used in blockchain networks where transaction validation is carried out by pre-approved nodes or validators, typically selected based on their reputation or authority, ensuring network security and reliability.
PoA is particularly suited for permissioned blockchains, where trusted entities (can be institutions) who are pre-approved to validate transactions and create new blocks. It offers high efficiency, scalability, and security, making it ideal for enterprise and consortium blockchain use cases. Can be considered to be one of the more centralized type of the blockchain consensus mechanisms.
A type of consensus mechanism used by blockchain networks to validate transactions. PoS, validators commit a stake of their own cryptocurrency tokens to the network in exchange for a chance to be selected to add new blocks to the blockchain.
Proof-of-Stake (PoS) has emerged as one of the most efficient and sustainable blockchain consensus mechanisms, offering significant advantages over traditional Proof-of-Work systems in terms of energy efficiency, scalability, and accessibility. Used by various networks such as Ethereum 2.0, Cardano, Polkadot, and Solana.
A consensus mechanism used by cryptocurrencies like Bitcoin to validate transactions and add new blocks to the blockchain by requiring network participants called miners to expend computational effort to solve complex mathematical puzzles, with the winner receiving a reward and having their block added to the chain.
Some features of Proof of work include renewable energy use-cases like taking flared gas to power machines, though does still have high energy consumption, security is extremely high due to high computational difficulty, and scalability can be limited on the main chain.
This is the central feature introduced by the Dencun upgrade. It aims to optimize data storage and reduce transaction fees for layer 2 (L2) networks like Arbitrum, Optimism, and Polygon that operate on top of Ethereum's main chain.
By introducing "blobs" as a new data-sharing primitive, this upgrade significantly reduces transaction costs for Layer 2 rollups while increasing network throughput. Although it is an intermediate step toward full Danksharding, its implementation has already transformed how developers build scalable dApps and how users interact with the Ethereum network.
A set of rules governing the exchange of data or communication between devices, systems, or entities in a network.
In the context of blockchain and cryptocurrency, protocols define the structure and operation of blockchain networks, enabling decentralized systems to function securely and efficiently. These protocols are essential for ensuring trust, transparency, and coordination among participants in a distributed network.
Pruned nodes store only a portion of the blockchain, deleting older blocks to save disk space while still maintaining the ability to validate transactions.
Unlike full archival nodes, which store the entire history of the blockchain, pruned nodes only retain the most recent blocks necessary for validating new transactions. Pruned nodes are particularly useful for individuals or organizations with limited storage capacity who still want to contribute to and benefit from the security of decentralized networks like Bitcoin.
A large numerical value or cryptographic code used to verify digital signatures and encrypt data to the corresponding private key holder. ONLY Share your public key or address for receiving funds.
Its important for proper management of both public and private keys is critical for safeguarding funds and ensuring seamless participation in blockchain ecosystems
A rather new innovative voting system that allows individuals to express not just their preferences but also the intensity of those preferences. Using tokens or voice credits to cast votes.
By balancing majority rule with minority protection, it fosters fairer outcomes while reducing polarization and encouraging thoughtful participation. While challenges like complexity and implementation barriers remain, its growing adoption in political governance, corporate decision-making, and blockchain ecosystems highlights its transformative potential for creating more inclusive and nuanced democratic processes worldwide.
The practice of taking advantage of interest rate differentials between two markets or countries to generate risk-free profits.
Some applications include Forex Trading, Bond Markets, and Cryptocurrency Markets.
RWA protocols tokenize physical assets, such as real estate, commodities, or invoices, and bring them onto the blockchain. This allows for fractional ownership, increased liquidity, and easier transfer of these assets.
The ability to take any asset in the future that you own, and having the ability to tokenize into a digital asset. Taking loans or gaining interest by using these items to provide liquidity to financial markets.
Representative voting, often associated with proportional representation, is a system where voters elect representatives to make decisions on their behalf. The goal is to ensure that elected bodies reflect the preferences and diversity of the electorate while maintaining efficiency in governance.
In blockchain there are situations where voting rights can/are given to delegates or representatives.
A retail investor is a non-professional individual who invests their personal funds in financial markets, typically through brokerage accounts, retirement plans, or fintech platforms.
Unlike institutional investors, retail investors operate with smaller capital having a smaller affect on markets, limited to certain aspects of markets, and focus on personal financial goals.
The systematic process of identifying, analyzing, and evaluating potential hazards and their associated risks to an organization, project, or individual.
It is a critical component of risk management, helping decision-makers prioritize risks and implement strategies to mitigate or eliminate them. Risk assessments are widely used across industries such as healthcare, finance, project management, and cybersecurity to enhance safety, compliance, and operational efficiency.
A strategic plan that outlines the key goals, milestones, and development timeline for a cryptocurrency project, providing transparency and a clear vision of its growth and evolution to investors, developers, and the community.
Some key features of a Roadmap include a High Level Overview, Strategic Alignment of tasks/goals, and resource allocations regarding the budgets/tokens etc.
Royalties are payments made by one party (the licensee) to another (the licensor) for the right to use their intellectual property, creative works, or physical assets. These payments are typically structured as a percentage of revenue, a fixed fee, or based on the volume of usage.
Royalties incentivize innovation and creativity by ensuring that creators, inventors, and property owners receive ongoing compensation for their work or assets. Payments made to the original creator of a non-fungible token (NFT) each time it is resold on the secondary market.
SAT, short for Satoshi, is the smallest denomination of Bitcoin (BTC), named after Bitcoin's pseudonymous creator, Satoshi Nakamoto. One Bitcoin is divisible into 100,000,000 Satoshis (Sats), making it possible to transact in very small fractions of Bitcoin.
This divisibility enables Bitcoin to be used for microtransactions and low-value exchanges, even as its overall value increases. It also enables flexibility and accessibility for microtransactions as well as larger financial activities within the cryptocurrency ecosystem.
The capability of a system, network, or technology to handle increased workload or demand while maintaining performance, efficiency, and reliability.
Scalability in blockchain refers to a network's ability to handle an increasing number of transactions, users, and data efficiently as it grows.
A fundamental concept in economics that refers to the limited availability of resources to meet unlimited human wants and needs. It forces individuals, businesses, and governments to make choices about how to allocate resources efficiently.
Scarcity impacts pricing, production, and decision-making processes, making it a critical factor in economic systems, business operations, and resource management. The idea that scarcity principle suggests that people value items more when they are perceived as being scarce.
SEBI is the regulatory authority in India that oversees the securities and commodity markets to protect the interests of investors and promote the development of the markets.
By regulating market participants and fostering innovation through developmental initiatives, SEBI has played a pivotal role in transforming India's capital markets into one of the most vibrant globally.
An independent federal government agency responsible for regulating the securities industry, which includes stocks and options exchanges, as well as other electronic securities markets in the United States.
The Securities and Exchange Commission (SEC) plays a vital role in maintaining trust in U.S. financial markets by protecting investors, enforcing securities laws, and ensuring market efficiency.
A tradable financial asset that represents ownership in a company (stock), a creditor relationship with a governmental body or a company (bond), or rights to ownership as represented by an option.
Securities are essential tools for raising capital and growing wealth in financial markets globally. By understanding how securities work and leveraging regulatory protections provided by organizations, individuals can make informed decisions that align with their financial goals.
In smart contracts refers to the measures and practices employed to protect the smart contract code and its execution from vulnerabilities, bugs, and malicious attacks on the blockchain. With evolving threats in both the physical and digital realms, adopting proactive measures such as risk assessments, layered defenses, continuous monitoring, employee education, and incident response planning is essential for maintaining trust, and continuity within any situations.
Security is a multifaceted discipline encompassing physical safety measures, cybersecurity protocols, financial safeguards, and operational resilience strategies designed to protect individuals, organizations, and assets from harm or loss.
The revenue or profit a government earns from issuing currency, which is the difference between the face value of the money and the actual cost of producing and distributing it.
While it offers benefits like funding public spending and stimulating economic activity, excessive reliance on seigniorage can lead to inflationary pressures and erode public confidence in a currency.
A measure used to gauge the collective feelings and attitudes of market participants towards the market or economy, often used to predict market trends.
When used effectively alongside technical and fundamental analysis, these tools help traders anticipate trend reversals, confirm existing trends, and manage risk more effectively.
These nodes are subdivisions of workchains, created to further distribute the processing load and enhance scalability. Each shardchain processes a subset of transactions in parallel, significantly increasing the network's throughput.
Process is called sharding when in the process of splitting a blockchain network into multiple shards, each with its own data and transaction history, to enhance scalability.
The profit realized from selling a capital asset that has been held for one year or less.
Short-term capital gains are taxed at higher rates than long-term gains, making them less favorable for investors aiming to maximize after-tax returns. Consulting with a financial advisor or tax professional ensures compliance with IRS rules while optimizing investment strategies tailored to individual financial goals.
An independent blockchain that runs parallel to the main blockchain, enabling faster and cheaper transactions by processing data off the main chain while maintaining interoperability with it.
Some features of Sidechains include it uses own Consensus Mechanism, great for specialized applications, has its own security model, and well known example would be Polygon (Ethereum sidechain).
Refers to a single component or path in a system that, if it fails, will cause the entire system to fail or disrupt the service it provides. Whether in IT infrastructure, supply chains, or organizational processes, identifying and mitigating SPOFs through redundancy, failover mechanisms, geographic distribution, and decentralization is essential for ensuring reliability and business continuity.
In computing for example, this could be a single hardware component like a storage device or network link, or a single piece of software or code library that an application relies on.
A penalty mechanism used in proof-of-stake (PoS) blockchain networks to punish validators who act maliciously or negligently, jeopardizing the network's security. It involves the loss of a portion of a validator's staked cryptocurrency tokens as a consequence of violating the protocol rules.
Slashing is an integral part of Proof-of-Stake blockchain networks, ensuring security, reliability, and alignment between validators' incentives and the network's goals. While it serves as an effective deterrent against malicious behavior, it also requires careful implementation to avoid penalizing honest participants unfairly due to technical issues or misjudgments.
The difference between the expected price of a trade and the price at which the trade is actually executed.
Slippage is an unavoidable aspect of trading that occurs when there is a discrepancy between the expected and actual execution prices of trades due to market dynamics like volatility and liquidity. While it can be either positive or negative, traders can minimize its impact by using strategies such as trading in liquid markets, avoiding volatile periods, and employing limit orders instead of market orders.
A self-executing contract with the terms of the agreement directly written into code, automatically enforcing and executing actions when predefined conditions are met on a blockchain platform.
Smart contracts represent a transformative shift in how agreements are executed by combining automation, transparency, security, low-cost and efficiency through blockchain technology
A test environment developed by The Depository Trust & Clearing Corporation (DTCC) in collaboration with Chainlink, having multiple digital tokenized funds (mutual funds, hedge funds etc.) on the blockchain, transmitting mutual fund price and rate data (NAV data) live in real time feeds, using applications that leverage on-chain data.
As blockchain adoption grows, Smart NAV lays the foundation for more streamlined, transparent, and scalable financial ecosystems that benefit both traditional institutions and emerging decentralized platforms alike.
Smart wallet contracts are advanced cryptocurrency wallets powered by blockchain-based smart contracts. Unlike traditional wallets, which rely on private keys to manage funds, smart wallet contracts leverage programmable logic to automate transactions, enhance security, and provide advanced functionalities.
Some key features include they can enforce multi-signature requirements, spending limits, whitelisting, etc.
A soft fork is a backward-compatible upgrade to a blockchain network's protocol. It introduces new rules or features without requiring all participants (nodes) to upgrade their software.
Nodes that do not upgrade can still validate and process transactions, as long as those transactions comply with the old rules. Soft forks are commonly used to implement improvements or changes in blockchain networks while maintaining compatibility with older versions of the protocol.
Solo staking is the process of participating in a blockchain's Proof of Stake (PoS) consensus mechanism by running a validator node independently. Solo stakers validate transactions, secure the network, and earn rewards in the form of cryptocurrency for their contributions.
While it offers maximum control over funds and rewards compared to other staking methods, it comes with challenges such as high entry barriers, technical expertise requirements, and potential penalties for mismanagement or downtime. For those willing to invest time, resources, and effort into running a validator node responsibly, solo staking not only provides financial incentives but also contributes significantly to the decentralization and security of blockchain ecosystems like Ethereum, Polkadot, Cardano, Solana, and more.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by pegging their price to a reserve asset, such as a fiat currency (e.g., USD, YEN, AUSD, EURO), a commodity (e.g., gold), or another cryptocurrency.
An example of use-case with applications ranging from payments and DeFi to remittances and e-commerce, they have become an integral part of the cryptocurrency ecosystem.
Staking is the process of participating in a blockchain network's Proof of Stake (PoS) or similar consensus mechanism by locking up cryptocurrency to support network operations, such as validating transactions and securing the blockchain.
Different types of staking include solo staking, staking pools, delegated staking (DPoS), custodial staking platforms, and liquid staking.
Staking pool fees are charges levied by staking pool operators for managing and maintaining the infrastructure required to participate in a blockchain's Proof of Stake (PoS) consensus mechanism.
Staking pools allow multiple users to combine their cryptocurrency holdings to meet the minimum staking requirements of a blockchain, share rewards, and reduce the technical burden of running a validator node. In return, operators deduct a fee from the staking rewards as compensation for their services.
Supply refers to the total quantity of a good, service, or resource that producers are willing and able to provide to the market at various price levels over a specific period. In economics, supply plays a fundamental role in determining market equilibrium when combined with demand.
In cryptocurrency ecosystems specifically, factors such as tokenomics, staking mechanisms, and burn rates play pivotal roles in shaping asset value and scarcity over time—making it crucial for participants to stay informed about these dynamics
Malicious actors creating multiple identities or blockchain nodes to gain a disproportionately large influence on a network.
Ways to prevent Sybil attacks include CAPTCHAs and human verification methods, incentive structures where there is cost to participate in network and can have penalty mechanisms for malicious behaviors.
The ability to complete a financial transaction, including settlement, payment, and transfer of ownership, on the same day the transaction was made, with no delay.
T+0 settlement represents a transformative shift in financial markets by enabling same-day transaction completion, reducing counterparty risks, enhancing liquidity, and improving operational efficiency. More markets explore shorter settlement cycles driven by advancements in technology like blockchain and smart contracts,
The settlement date of a financial transaction, where the settlement occurs one business day after the transaction date.
In this system, the buyer receives the securities, and the seller receives the payment on the day following the trade execution (T+1).
A taxable event is any transaction or activity that triggers a tax liability under applicable laws. In the context of personal finance, investments, and cryptocurrency, taxable events occur when income is earned, assets are sold, or certain transactions are completed.
Some forms included for taxable events Form 1040 (U.S.): For reporting overall income, Schedule D: For reporting capital gains/losses, and Form 8949: For detailing individual investment transactions.
Ticket voting is a voting system where participants purchase or are allocated "tickets" that represent their voting power. Each ticket grants the holder a vote, and the system can be designed to allow participants to use multiple tickets to express the intensity of their preferences.
In blockchain ecosystems this method is commonly used in governance systems, decentralized networks, and participatory decision-making processes.
The process of converting rights to an asset into a digital token on a blockchain, enabling fractional ownership, increased liquidity, and efficient transfer of value.
Tokenization is revolutionizing how assets are owned, traded, and managed by leveraging blockchain technology's transparency, security, and efficiency benefits. By enabling fractional ownership and global accessibility while enhancing liquidity across traditionally illiquid markets like real estate or fine art, tokenization opens up new opportunities for both retail and institutional investors alike.
Digital tokens on a blockchain that represent ownership or rights to real-world or digital assets. Tokenization involves converting ownership rights of an asset, such as real estate, commodities, stocks, or art, into digital tokens.
These tokens can be traded, transferred, or stored on blockchain networks, enabling fractional ownership, enhanced liquidity, and greater accessibility for investors.
The number of tokens in existence/circulation at that moment, can specify whether to account for locked tokens, future token burns/deflationary protocols, or the release of tokens in the future.
Understanding total supply is essential for evaluating a cryptocurrency's scarcity, inflation rate, and potential value.
A metric that represents the total worth of assets currently locked in decentralized finance (DeFi) protocols or smart contracts on a blockchain network.
By measuring the value of assets locked in smart contracts, it provides insights into liquidity availability, user trust, and market activity within decentralized platforms like Uniswap, Aave, MakerDAO, and Curve Finance.
Traceability is the ability to track the history, location, and application of a product, material, or process throughout its lifecycle. It involves documenting and verifying every step in the journey of goods or services, from raw materials to end consumers.
Using blockchain technology to track these products will continue to become more common, by scanning the item using a digital barcode instantly pulling up its exact location in supply chain.
The process of determining the most efficient and cost-effective path for a payment transaction to travel from the payer to the recipient. This involves directing the transaction through various financial entities, such as payment gateways, processors, and banks, to ensure successful authorization and settlement.
Using blockchain technology smart contracts, gives you the ability to enable automated functions that will set perimeters around what can and can't be done. Securing faster payment routing and information.
Transaction selection refers to the process by which blockchain validators, miners, or nodes choose which transactions to include in a block during the block creation process.
This selection is influenced by factors such as transaction fees, network congestion, and protocol rules. This process has high transparency and high user control.
Transparency is a cornerstone of trust-building across industries such as finance, business, governance, technology, healthcare, and supply chain management.
In smart contracts, refers to the ability for all parties involved to view and verify the code, transactions, and execution of the contract on the underlying blockchain network.
2FA is a security mechanism that requires users to verify their identity using two distinct factors before gaining access to an account, system, or service.
It adds an extra layer of protection beyond just a password, making it significantly harder for unauthorized individuals to access sensitive information or systems. 2FA examples include online banking, email accounts, social media platforms, and enterprise systems to enhance security.
Also known as unsecured loans, are loans that do not require the borrower to pledge any assets (collateral) as security. Instead, lenders rely on the borrower's creditworthiness, income, or reputation to assess their ability to repay the loan.
While they come with higher risks and costs compared to secured loans, innovations in blockchain technology and decentralized identity solutions are paving the way for more secure and inclusive models of uncollateralized lending worldwide.
A validator is a participant in a blockchain network responsible for verifying transactions, maintaining the network's security, and achieving consensus. Usually, a part of Proof of Stake (POS) networks.
Some of the key features of being validators include transaction validators, block proposals and validations, consensus participation, staking requirements, rewards or penalties, and decentralization when split among multiple validators.
Similar to ZK-rollups, but they store transaction data off-chain, offering higher scalability at the cost of reduced data availability compared to other rollup solutions.
They combine off-chain data storage with on-chain validity proofs, offering scalability without overburdening the main blockchain. Validiums are particularly useful for applications requiring high transaction volumes, such as gaming, decentralized finance (DeFi), and non-fungible tokens (NFTs).
A vault in the context of finance, blockchain, and decentralized finance (DeFi) refers to a secure mechanism used to store, manage, or optimize assets.
Vaults can be physical or digital and are designed to enhance security, automate processes, and maximize returns. In DeFi, vaults are often smart contract-based systems that allow users to deposit assets and earn yields through automated strategies.
Internal Revenue Service currently defines virtual currency as a digital representation of value that functions as a medium of exchange, unit of account, and/or store of value. However, virtual currency is not recognized as legal tender in any jurisdiction. For federal tax purposes, the IRS treats virtual currency as property, meaning general tax principles applicable to property transactions also apply to virtual currency transactions.
It is very important to follow all the current information regarding the IRS laws with digital assets and cryptocurrencies. Being a newer technology and having intensive legislative scrutiny over the past few years always review up to date information.
The degree of variation or fluctuation in the price or value of an asset over a certain period of time, often measured by the standard deviation of its returns.
While most digital assets are the category of high-volatility, these assets offer potential rewards through rapid price swings, they also come with increased risks that require careful management strategies such as diversification, hedging, and disciplined decision-making processes.
Volume for our example is referring to the total number of shares or contracts of a security that were traded during a given period, typically a single trading day.
Some situations of higher trading volume can indicate better liquidity, making it easier to buy or sell securities without significant price changes. Can also have an influence of market sentiment with sudden spikes in volume often signal increased investor interest or reactions to news.
These large holders have enough assets to influence market prices, liquidity, and trends through their trading activities. The term "whale" is derived from traditional finance, where it refers to major market players with substantial financial resources.
In the context of cryptocurrency, a whale is an individual, organization, or entity that holds a significant amount of a specific cryptocurrency. What significantly changes with blockchain is the transparency provides of the people holding these tokens.
A comprehensive document that outlines the technical specifications, economic model, and roadmap for a specific cryptocurrency project, serving as a guide for potential investors, developers, and users.
Some key features of a whitepaper can include an overview of the project, technical architecture, tokenomics, a roadmap, team and partnerships, and overall transparency.
These are specialized sub-chains within a larger blockchain ecosystem. They allow for the customization of rules and functionality while still interacting with the broader blockchain network.
Examples of these types of chains are included on Ton, Polkadot and Cosmos.
is a specialized protocol within the Polkadot ecosystem that enables seamless communication between parachains (independent blockchains) connected to the same relay chain.
XCMP is a cornerstone of Polkadot’s interoperability framework, enabling secure, efficient, and trustless communication between parachains.
Yield is a financial metric that measures the income generated from an investment over a specific period, typically expressed as a percentage of the investment's cost, market value, or face value. It is widely used in evaluating the profitability of assets such as stocks, bonds, real estate, and other income-generating investments.
While high yields can be attractive, they often come with increased risks—making it essential for investors to balance yield considerations with broader financial goals and market conditions effectively.
Farming involves providing liquidity to DeFi protocols in exchange for rewards, often in the form of additional tokens. Users earn returns based on the amount of liquidity they provide and the duration of their participation.
Some of the key components of yield farming include Liquidity Pools, Automated Market Makers (AMMs), Governance Tokens, and Yield Aggregators.
A cryptographic method that allows one party (the prover) to demonstrate the validity of a statement to another party (the verifier) without revealing any information beyond the statement's truth.
As technology evolves, zero-knowledge proofs are going to help build the foundational tools in secure and privacy-preserving systems across decentralized ecosystems.
