The ABCs of Crypto
An easy-to-understand dictionary that provides explanations of crypto-related and blockchain terms in plain language, empowering informed decision-making.
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0x Protocol
The 0x protocol is an open protocol that allows for the peer-to-peer exchange of tokens on the Ethereum blockchain. The open-source, decentralized exchange infrastructure uses smart contracts to enable the exchange of tokenized Ethereum-based assets. Developers can use its API for dApps that need to
51% Attack
A 51% attack is an attempt to bring down a blockchain network made possible by taking control of the majority of its mining hashrate or computing power. For instance, a 51% attack on a Bitcoin blockchain can see miners take control of the majority of the hashrate, disrupting its operation. In such a
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Aeternity Blockchain
Aeternity blockchain is a decentralized, open-source protocol that supports smart contracts and can run decentralized applications (dApps). Its design features inbuilt fault tolerance mechanisms. The Aeternity protocol offers a highly scalable environment for dApps via its trustless off-chain scalin
Airdrop
What Is a Crypto Airdrop? Airdrops are a distinctive marketing strategy designed to enhance engagement within the crypto community. These involve the distribution of free tokens directly to users' digital wallets, often to drive awareness or reward loyalty to a particular crypto project. Airdrops ca
AirGap
In the crypto world, AirGap is a self-custody wallet that lets you store and manage your digital assets. The crypto wallet leverages a unique two-device approach, which makes it more efficient than a conventional hardware wallet. AirGap Vault can be installed on a dedicated smartphone that is entire
Airnode
Airnode is a Web 3.0 oracle solution that serves as a middleware to let blockchain-based smart contracts link to web APIs. API providers can use the oracle node and API blockchain gateway for supplying off-chain data feeds to blockchain-based decentralized applications (dApps). Airnode's open-source
Algo Trading (Algorithmic Trading)
Algo trading, short for algorithmic trading, is a technique that uses automated pre-programmed trading instructions that are executed based on several factors, including time, asset price, and trading volume. The method is also known as automated trading or black-box trading, as it depends on comput
Algorithmic Stablecoin
An algorithmic stablecoin is a price-stable cryptocurrency or digital asset that uses a second token to maintain its peg to a real-world asset, e.g., the US dollar. The price stability mechanism of an algorithmic stablecoin involves adjusting the circulating supply of the second token based on the d
All Time High (ATH)
An all-time high or ATH denotes the highest price and market capitalization that a particular cryptocurrency has hit in its entire period of existence. For instance, Bitcoin ATH will depict the highest price the leading cryptocurrency has ever traded at since it came into being in 2009. The ATH is a
All Time Low (ATL)
The all-time low, or ATL, represents the lowest price ever recorded for a cryptocurrency or any other financial asset. If we take Bitcoin as an example, Bitcoin’s ATL would be the lowest price it has ever traded since its launch in 2009. The ATL can be an interesting measure of the potential of a cr
Altcoins
Altcoins, short for alternative coins, denote any cryptocurrency other than Bitcoin and sometimes Ethereum. Altcoins serve similar purposes as BTC and ETH but may use different consensus mechanisms and technologies. Bitcoin and Ethereum may dominate the cryptocurrency market, but the remainder of th
aNFT (Autonomous NFT)
An autonomous NFT (aNFT) is a non-fungible token that can proactively initiate transactions without prompting. aNFTs or autonomous NFTs offer a versatile way for Web3 users and network protocols to interact and conduct transactions. An aNFT is set up with an initial transaction, after which it turns
APR (Annual Percentage Rate)
The annual percentage rate (APR) in the world of crypto is how interest from investment products or loans in the market is calculated. An APR can denote the interest rate you pay when you invest your cryptocurrencies in liquidity pools, staking, yield farming, crypto savings accounts, and more. An a
Arbitrage
Cryptocurrency arbitrage is a trading strategy used by crypto traders to make profits in the market. It involves buying a particular crypto asset on one exchange and then selling it quickly on another crypto exchange for a higher price. The simultaneous action of buying and selling the same asset on
Arweave
Arweave is a company that offers decentralized web storage technology and supports permanent storage for data online. Community-owned, the company calls its solution a “collectively owned hard drive that never forgets.” Arweave network offers a permaweb - a global, community-owned, and decentralized
ASIC
ASIC, short for an application-specific integrated circuit, is a computing device that performs a single operation. In the crypto world, ASIC miners are computing devices that use their processing power and resources solely for mining cryptocurrencies. An ASIC miner is typically constructed to mine
Asset-backed Tokens
Asset-backed tokens, also known as security tokens, are digital assets designed and issued on a blockchain network and backed by real-world, physical assets. They are digitized representations of real-world assets on the blockchain. Asset-backed tokens could help tokenize any asset from the physical
Astroturfing
In the crypto world, astroturfing is a controversial marketing technique that involves talking up a crypto project or ICO by a community and making the hype around it look organic. Originating from the term Astroturf, a type of fake grass used on sports fields globally, it refers to counterfeit gras
Atomic Swap
An atomic swap is a process of using smart contracts to automatically swap cryptocurrencies from different blockchain networks in a peer-to-peer, decentralized manner. It is one of the most effective peer-to-peer methods to trade crypto assets without intermediaries such as exchanges. Atomic swaps,
Augmented Reality (AR)
Augmented reality (AR) is one of the essential building blocks of the metaverse. This technology offers an immersive experience within the virtual world by infusing real-world elements into it that users can interact with virtually. AR technology allows users to experience an enhanced version of the
AUM (Assets Under Management)
Assets under management (AUM) in the crypto world refers to the amount of money (typically denoted in US dollars) invested in cryptocurrency funds and digital asset investment products. AUM measures how much cash an investment firm has invested in digital assets within the crypto world. A higher fig
Automated Market Maker
An automated market maker (AMM) is the underlying technology that makes decentralization possible in DEXs, eliminating the need for an intermediary to facilitate crypto trades. AMMs are autonomous trading mechanisms that provide the necessary liquidity for trading pairs, allowing a trade to occur wi
Avalanche (AVAX)
Avalanche is a decentralized, open-source blockchain network that can support smart contracts and run decentralized applications. Founded by Dr. Emin Gun Sirer in 2019, the Avalanche blockchain differs from Ethereum as it offers higher energy efficiency and scalability. Avalanche is an EVM-compatibl
Axie Infinity (AXS)
Axie Infinity is a popular NFT-based online video game created by Sky Mavis and developed on the Ethereum blockchain. The game is said to be inspired by Pokemon and makes players purchase, raise, battle, and trade NFTs based on digital pets known as Axies. The leading play-to-earn offering enjoys ph
Ask Price
The ask price is defined as the lowest price a seller is willing to accept when selling a crypto asset. Also known as offer price, it is the minimum amount acceptable among the bids the seller receives when they put up a digital asset for sale in the crypto market. A market order is processed succes
Ask Me Anything (AMA)
Ask Me Anything (AMA) is a popular format within the cryptocurrency community where an individual or a group, often experts or key figures from a blockchain project or crypto company, engage in an open and interactive session with the community. During an AMA, participants can ask a wide range of qu
Algorand (ALGO)
What Is Algorand? Algorand is a decentralized blockchain platform designed to achieve high scalability, security, and efficiency without compromising on decentralization. It was founded in 2017 by MIT professor Silvio Micali, a renowned cryptographer. Algorand addresses the "blockchain trilemma" by
Actively Validated Services (AVS)
What Are Actively Validated Services (AVS)? Actively Validated Services (AVS) are decentralized systems that enhance blockchain security, scalability, and efficiency by utilizing existing validator networks. Instead of requiring each blockchain project to establish its own security framework, AVS al
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Bait and Switch Scam
In the crypto world, a "bait and switch" scam is a fraudulent sales strategy used by a company to lure customers with the offer of low-priced products or services and then try to sell them higher-priced products instead. In the crypto market, such a practice could occur when the team behind a new pr
Baking
In crypto, baking is the process of verifying transactions and creating new blocks on the Tezos blockchain. Bakers on the proof-of-stake Tezos network perform the function of validating transactions and producing new blocks. Baking blocks involves checking a block of transactions to ensure accuracy
Bank Run
A crypto bank run occurs when many investors start withdrawing their cryptocurrency deposits from exchanges and other platforms. It could result from panic in anticipation of a possible crash or shutdown of the service shortly. A bank run could result in the crypto platform or exchange experiencing
Beacon Chain
The Beacon Chain was the original proof-of-stake blockchain launched in 2020 as part of Ethereum's transition from proof-of-work consensus to PoS. The Beacon Chain was launched in December 2020, where developers worked on and perfected the PoS consensus logic before deploying it on the Ethereum Main
BEP-2
BEP-2 is a token standard for issuing and implementing tokens on the Binance Chain. Apart from the BNB, the native token of the Binance Chain, all other tokens issued on the Binance Chain blockchain follow the BEP2 token standard. BEP2 functions on the Binance Chain, while the BEP20 token standard f
BEP-20
BEP-20 is a token standard followed by tokens issued on the BNB Chain (BSC). It extends the ERC-20 token standard from the Ethereum blockchain into the BSC ecosystem. In addition to being compatible with Ethereum's ERC-20 token standard, BEP-20 is also compatible with BEP-2 tokens issued on the Bina
BEP-721
The BEP-721 token standard supports the creation of non-fungible tokens (NFTs) on the BNB Chain. The BEP-721 token standard extends the ERC-721 token standard for Ethereum's NFTs. Unlike the BEP-20 token standard, BEP-721 tokens also support the tokenization of ownership, adding a unique identifier
Beta Release
A beta release or a beta version is an early version of an application or software made available to a limited number of users. It is a pre-release stage where the developers have added all the major features and functions to the software but allow a limited set of users to test it out. The beta rel
Bid Price
In crypto trading, a bid price indicates the highest price a buyer is willing to pay for a specific digital asset or cryptocurrency. Traders or investors who wish to sell their assets quote an ask price and accept bid prices from other traders or investors interested in buying their assets. The ask
Binance Launchpad
Binance Launchpad is a crowdfunding platform for blockchain and crypto startups backed by Binance, the world's leading cryptocurrency exchange. The platform supports startups in the industry by raising funds and spreading the word about their projects to crypto investors. Crypto projects can launch
Bitcoin (BTC)
Bitcoin is the world's first and most popularly used cryptocurrency. The decentralized digital currency came into existence in 2009 and is used to facilitate peer-to-peer transactions and money transfers without the need for intermediaries such as banks. Transactions are verified by nodes within the
Bitcoin ATM
A Bitcoin ATM (automated teller machine) is a kiosk where users can buy Bitcoin, and sometimes even other cryptocurrencies, directly and automatically. They can convert their fiat currency into Bitcoin by inserting cash directly into the Bitcoin ATM or using their cards. Unlike a traditional ATM tha
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a cryptocurrency and payment network that originated from a hard fork from the original Bitcoin blockchain. Created in August 2017, its infrastructure employs a Proof of Work (PoW) consensus mechanism like Bitcoin. The BCH network uses bigger-sized blocks than Bitcoin, speeding
Bitcoin Halving
Bitcoin halving is one of the most significant events to monitor in the crypto market. It reduces the supply of Bitcoin coins in circulation even as the demand remains steady. For instance, in May 2020, the number of BTC entering circulation every 10 minutes as block rewards reduced from 12.5 to 6.2
Bitcoin Improvement Proposal (BIP)
A Bitcoin Improvement Proposal (BIP) is a formal proposal for changing or upgrading the Bitcoin code. A BIP is implemented whenever the Bitcoin protocol undergoes large-scale changes that can significantly impact its blockchain and service. Programmers can submit BIPs within the Bitcoin community, p
Bitcoiner
A Bitcoiner is a person who is a fan and believer of Bitcoin. The term is typically used to refer to early adopters of Bitcoin who have been HODLing their coins for several years and are avid followers of the crypto market. A Bitcoiner is optimistic about the future of Bitcoin and remains unaffected
Bits
A bit is a subdivision of a single Bitcoin. Each Bitcoin is made up of one million units, known as bits. Bits and Satoshis are both smaller denominations of Bitcoin; one Bitcoin (BTC) is equivalent to 1,000,000 bits or 100,000,000 Satoshis, so 1 bit equals 100 Satoshis. As the price of Bitcoin escal
Black Hat Hacker
A black hat hacker exploits the vulnerability and launches hacking attacks with malicious intent. In crypto, black hat hackers exploit vulnerabilities in smart contracts to drain decentralized apps and steal cryptocurrencies from DeFi protocols and other platforms. Black hat hackers, as opposed to w
Black Swan Event
In the crypto market, a black swan event signifies any event that has a significant and unexpected widespread impact on the entire market. The term originates from the Black Swan Theory developed by statistician and trader Nassim Nicholas Taleb; such an event happens outside of regular expectations,
Block
A block is a data structure that forms the blockchain and is used to record all transactions taking place in the network. Unlike a conventional centralized database, a blockchain is a distributed database made up of several blocks, each block containing a record of a certain number of transactions.
Blockchain Explorer
A blockchain explorer, also known as a block explorer, is software that uses APIs and data from blockchain nodes to reveal details of all transactions on a particular blockchain network. A block explorer presents this data in a centralized, easy-to-understand, and search format. Block explorers can
Bear Market
In global financial markets, a bear market is symbolized by an extended period of decline or weakness in the price of financial assets. When the market mood turns bearish, assets such as stocks, commodities, or even cryptocurrencies decline. Investors turn more cautious about trading or holding them