Account abstraction
#A model in which an account’s validation and execution rules can be programmed instead of relying only on a fixed key rule.
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108 definitions
Cryptocurrency glossary
Understand the terms before choosing a network, signing a transaction or comparing a service.
Address poisoning
#Small transactions from a lookalike address intended to make someone copy the wrong destination from their history.
Read the guideAirdrop
#A token distribution, sometimes legitimate and often copied by scammers.
Read the guideAltcoin
#Any cryptocurrency other than Bitcoin.
Read the guideApproval revocation
#On-chain transaction that reduces or cancels a contract’s previously granted right to spend a token.
Read the guideAsset segregation
#Legal and accounting arrangements separating customer assets from a provider’s own assets.
Read the guideBid–ask spread
#Difference between the best displayed buy and sell prices.
Read the guideBlockchain
#A distributed ledger arranged in cryptographically linked blocks.
Read the guideBlock explorer
#Tool for viewing public blocks, transactions and addresses on a network.
Read the guideBlock height
#Position of a block in the chain, counted from the first block.
Read the guideBlock pruning
#Deleting old blocks after validation to reduce Bitcoin full-node storage.
Read the guideBridge
#A protocol that transfers or represents assets across blockchains, with its own technical and custody risks.
Read the guideBundler
#Participant that groups UserOperations and submits them to the network’s entry contract.
Read the guideChain reorganization
#Replacement of one or more recent blocks by another valid chain branch.
Read the guideChange output
#Output returning the difference between inputs, payment and fees to your wallet.
Read the guideCoin control
#Selection of spent UTXOs, affecting fees and public links between payments.
Read the guideConfirmation
#Inclusion of a transaction in a block, followed by any subsequent blocks.
Read the guideCPFP
#Child transaction spending a controlled parent output to raise the combined average fee rate.
Read the guideCustody
#The responsibility for holding and securing the keys that control assets.
Read the guideDAO
#An organization whose rules and votes are coordinated on-chain.
Read the guideData availability
#Ability of others to access the data needed to verify a state or reconstruct operations.
Read the guideDeFi
#Financial services accessed through smart contracts.
Read the guideDepeg
#Temporary or lasting gap between a stablecoin’s market price and its reference value, potentially driven by reserves, liquidity or issuer confidence.
Read the guideDeposit memo
#Additional identifier some services require to credit a deposit to the right account; it must be copied exactly.
Read the guideExchange
#A centralized or decentralized service for swapping assets.
Read the guideFinality
#Degree of confidence that a block will not be reorganized; the mechanism depends on the network.
Read the guideGas fee
#The cost of executing an operation on a network.
Read the guideGas limit
#Maximum amount of gas an Ethereum transaction may consume.
Read the guideHalving
#Bitcoin’s programmed reduction in mining rewards.
Read the guideHealth factor
#Ratio of threshold-weighted collateral to debt, interpreted under the lending protocol’s rules.
Read the guideInbound capacity
#Amount a Lightning channel can receive given remote balance and applicable constraints.
Read the guideInclusion proof
#Proof that an item belongs to a published set, without establishing that the set is complete.
Read the guideIssuer redemption
#Direct exchange of a stablecoin with its issuer under eligibility, timing, fee and minimum-amount conditions.
Read the guideLayer 2
#A network built above a blockchain to improve capacity or cost.
Read the guideLightning invoice
#Payment request carrying Lightning-specific data such as optional amount and expiry.
Read the guideLimit order
#Instruction to execute at a limit price or better, without guaranteed execution.
Read the guideLiquidation
#Sale or seizure of collateral when a borrowing position no longer meets protocol requirements; thresholds depend on asset parameters.
Read the guideLiquidity
#Ability to trade a given amount without substantially worsening the execution price.
Read the guideLiquidity pool
#Assets deposited in a smart contract to facilitate trading or lending.
Read the guideLTV
#Loan-to-value ratio: a borrowing-capacity parameter distinct from the liquidation threshold.
Read the guideMarket cap
#Unit price times circulating supply; it is not the project’s cash reserve.
Read the guideMarket order
#Instruction to execute promptly at available prices, without a guaranteed final price.
Read the guideMaximum input
#Input cap for a fixed-output swap, distinct from a minimum-output limit.
Read the guideMempool
#Set of transactions received by a node but not yet included in a block.
Read the guideMEV
#Value extractable by choosing, excluding or ordering transactions in a block.
Read the guideMinimum output
#Lowest output accepted for a fixed-input swap; verify it in the signed parameters.
Read the guideMultisig
#A wallet requiring several signatures from a defined group to authorize an operation.
Read the guideNetwork compatibility
#Checking that sender and recipient use the same supported network for a particular asset.
Read the guideNetwork fee
#Amount paid for network processing, separate from provider charges.
Read the guideNFT
#A non-fungible token representing a unique digital identifier.
Read the guideNonce
#Value used to order transactions or vary a computation attempt, depending on the network.
Read the guideOn-chain
#Data or an action recorded directly on a blockchain.
Read the guideOracle
#A service that provides external data to a smart contract.
Read the guideOrder book
#Available buy and sell orders at different prices on a trading venue.
Read the guidePaymaster
#Contract that may sponsor a UserOperation’s fees under its own policy.
Read the guidePayment request
#Details supplied to a payer about asset, network, address, amount and sometimes expiry.
Read the guidePermit
#Token permission granted by signature under contract-specific nonce and deadline rules.
Read the guidePrice impact
#Movement caused by the size of your own trade in available liquidity, distinct from quote-to-execution change.
Read the guidePrivate key
#The secret used to sign and control funds.
Read the guidePrivate order flow
#Sending an operation outside the public mempool to a service whose guarantees need review.
Read the guideProof of reserves
#Published check of some held assets; alone it does not establish all liabilities.
Read the guideProof of Stake
#Consensus based on assets committed by validators.
Read the guideProof of Work
#Consensus based on costly computation performed by miners.
Read the guideProver
#Party that computes a cryptographic proof from a claim and the required data.
Read the guidePSBT
#Bitcoin partially signed transaction format exchanged between coordinators and signers.
Read the guidePublic address
#Shareable identifier for receiving an asset on a specific network; it does not reveal the private key.
Read the guideRBF
#Replacement of a pending Bitcoin transaction by a competing transaction under applicable policies.
Read the guideRecovery guardian
#Person or device authorized to take part in wallet recovery under defined rules.
Read the guideRecovery phrase
#Words that can restore a wallet’s keys.
Read the guideRefund address
#Address confirmed by a customer for a refund separate from the original payment.
Read the guideRPC interface
#Software command interface whose exposure requires suitable authentication and restrictions.
Read the guideRug pull
#A project abandonment or theft harming its users.
Read the guideSandwich attack
#Transactions placed before and after a user trade to profit from the price movement it creates.
Read the guideSequencer
#Operator that orders transactions on some layer 2 systems.
Read the guideSession key
#Temporary key whose permissions and lifetime may be constrained by a compatible wallet.
Read the guideSigning quorum
#Number of keys a policy requires to spend; it does not guarantee independent holders.
Read the guideSlippage
#The difference between expected and executed price.
Read the guideSmart account
#Contract-controlled account that can enforce signing, recovery or spending rules.
Read the guideStablecoin
#A token seeking to track a reference value with no absolute guarantee.
Read the guideStatic channel backup
#Implementation-specific backup that may assist recovery through channel closure.
Read the guideTest transfer
#Small first send to a new destination to confirm receipt before a larger transfer; it does not guarantee later sends.
Read the guideTimelock
#Delay between approval of an upgrade or governance action and execution, giving users time to react.
Read the guideToken
#An asset created on an existing blockchain.
Read the guideToken approval
#Permission allowing a contract to spend a token up to a specified limit.
Read the guideToken contract
#Deployed code that defines a token’s rules; its address identifies the issuance.
Read the guideTokenomics
#A token’s economic rules: issuance, distribution, utility, incentives and possible burning.
Read the guideToken vesting
#Schedule that gradually releases tokens allocated to a team or investors.
Read the guideTransaction hash
#Identifier derived from transaction data and used to locate it.
Read the guideTransaction ordering
#Choice of sequence for operations in a block, which can change their outcomes.
Read the guideTransaction receipt
#Record produced after an Ethereum transaction executes, including status, gas used and event logs.
Read the guideTVL
#Total value deposited in a DeFi protocol.
Read the guideTyped data signature
#Signature over structured fields, notably EIP-712; readability does not establish legitimacy.
Read the guideUpgradeable contract
#Contract whose logic can be replaced under upgrade authority; the ability to fix bugs also allows rules to change.
Read the guideUserOperation
#Object describing a proposed action by a smart account under ERC-4337; it is not an ordinary transaction.
Read the guideUTXO
#Unspent Bitcoin output, consumed in full when spent by a new transaction.
Read the guideValidator
#A participant that proposes or attests blocks under a Proof of Stake network’s rules.
Read the guideValidator effective balance
#Amount used by the protocol to weight a validator; it can differ from actual held balance.
Read the guideValidator penalty
#Reduction of a validator’s stake under a proof-of-stake protocol. Ordinary inactivity penalties and slashing for specific misconduct are different mechanisms.
Read the guideValidity proof
#Proof that lets others verify a computation or state change follows specified rules.
Read the guideVerifier
#Party or program that checks a proof under a particular cryptographic system.
Read the guideVirtual size (vB)
#Size derived from Bitcoin transaction weight, used with sat/vB to estimate fees.
Read the guideWallet
#A tool that manages keys and signs transactions.
Read the guideWallet descriptor
#Description of public keys, scripts and derivation paths used to recognise Bitcoin wallet outputs.
Read the guideWhale
#A participant holding a very large amount of an asset.
Read the guideWhitepaper
#A document describing a project’s goals and design.
Read the guideWithdrawal
#Transfer of assets from a platform to a wallet or another service.
Read the guideWrapped token
#Representation of an asset on another network or contract, depending on a deposit, issuance and redemption mechanism.
Read the guideZero-knowledge proof
#A technique for proving a statement without revealing all the data used.
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