Crypto Glossary Mega THREAD 🤓
In this thread I'll explain 120 basic crypto related terms in alphabetical order.
Feel free to share this with anyone who can learn from this and let me know what I’ve missed. My next threads will contain advanced terms and CT slang.👀
🧵👇
In this thread I'll explain 120 basic crypto related terms in alphabetical order.
Feel free to share this with anyone who can learn from this and let me know what I’ve missed. My next threads will contain advanced terms and CT slang.👀
🧵👇
1/ Airdrop
A marketing technique in which crypto projects send their native tokens directly to the wallets of their users in an effort to increase awareness and adoption.
A marketing technique in which crypto projects send their native tokens directly to the wallets of their users in an effort to increase awareness and adoption.
2/ Algorithmic stablecoin
Stablecoins that stay pegged to the dollar by running on an algorithm, which can issue more coins when its price increases and buy them off the market when the price falls. Algo stables are non collateralized. A notable example is $FRAX.
Stablecoins that stay pegged to the dollar by running on an algorithm, which can issue more coins when its price increases and buy them off the market when the price falls. Algo stables are non collateralized. A notable example is $FRAX.
3/ Alt L1
Alt-ernative Layer 1’s are smart contract platforms that are not Ethereum.
Alt-ernative Layer 1’s are smart contract platforms that are not Ethereum.
4/ Alt - altcoin
Alt-ernative coins, meaning all coins and tokens that are not Bitcoin.
Alt-ernative coins, meaning all coins and tokens that are not Bitcoin.
5/ AMM – Automated market maker
A decentralized asset trading pool that enables market participants to buy or sell cryptocurrencies. @Uniswap is the most well-known AMM.
A decentralized asset trading pool that enables market participants to buy or sell cryptocurrencies. @Uniswap is the most well-known AMM.
6/ APR – Annual percentage rate
APR refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors.
APR refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors.
7/ APY – Annual percentage yield
APY is often confused with APR. The APY takes the compounding of interest into account.
APY is often confused with APR. The APY takes the compounding of interest into account.
8/ Arbitrage
Arbitrage is the practice of quickly buying and selling the same asset in different markets to take advantage of price differences between the markets.
Arbitrage is the practice of quickly buying and selling the same asset in different markets to take advantage of price differences between the markets.
9/ ATH – All time high
The highest price an asset has ever been.
The highest price an asset has ever been.
10/ ATL – All time low
The lowest price an asset has ever been.
The lowest price an asset has ever been.
11/ Audit
An audit is a process where developers inspect the underlying code and/or algorithm that compose systems and applications. Since crypto has a lot of risks, audited smart contracts are preferred.
An audit is a process where developers inspect the underlying code and/or algorithm that compose systems and applications. Since crypto has a lot of risks, audited smart contracts are preferred.
12/ Bitcoin
The first and largest cryptocurrency, created by Satoshi Nakamoto. The genesis block (the first block of bitcoin) was mined in 2009.
The first and largest cryptocurrency, created by Satoshi Nakamoto. The genesis block (the first block of bitcoin) was mined in 2009.
13/ Bitcoin dominance (BTC.D)
The bitcoin dominance is a metric that determines how much share of the overall crypto market hare is owned by bitcoin. At the time of writing, this is around 43%.
The bitcoin dominance is a metric that determines how much share of the overall crypto market hare is owned by bitcoin. At the time of writing, this is around 43%.
14/ Block
A batch of transactions written to the blockchain. Every block contains information about the previous block, thus, chaining them together.
A batch of transactions written to the blockchain. Every block contains information about the previous block, thus, chaining them together.
15/ Block explorer
A tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates.
A tool for browsing information on a blockchain, such as transactions, wallet addresses, market caps, and hash rates.
16/ Blockchain
An immutable permanent public record or ledger of all transactions since the beginning of a cryptocurrency coin or token.
An immutable permanent public record or ledger of all transactions since the beginning of a cryptocurrency coin or token.
17/ Bridges
A protocol allowing separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
A protocol allowing separate blockchains to interact with one another, enabling the transfer of data, tokens, and other information between systems.
18/ Burn
Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation.
Cryptocurrency tokens or coins are considered “burned” when they have been purposely and permanently removed from circulation.
19/ Byzantine generals problem
A situation where communication that requires consensus on a single strategy from all members within a group or party cannot be trusted or verified.
A situation where communication that requires consensus on a single strategy from all members within a group or party cannot be trusted or verified.
20/ Candlesticks
A candlestick chart is a graphing technique used to show changes in price over time. Each candle provides 4 points of information opening price, closing price, high, and low. Also known as “candles” for short.
A candlestick chart is a graphing technique used to show changes in price over time. Each candle provides 4 points of information opening price, closing price, high, and low. Also known as “candles” for short.
21/ Capitulation
Capitulation is the process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever increase in price.
Capitulation is the process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever increase in price.
22/ CeFi – Centralized Finance
CeFi is represented by centralized exchanges, businesses, or organizations with a physical address, and usually with some sort of corporate structure like traditional financial market participants (banks, exchanges, fund managers etc.)
CeFi is represented by centralized exchanges, businesses, or organizations with a physical address, and usually with some sort of corporate structure like traditional financial market participants (banks, exchanges, fund managers etc.)
23/ CEX – Centralized Exchange
A cryptocurrency exchange managed by a centralized business or entity. The biggest CEXes today are @binance , @coinbase , @cryptocom , @FTX_Official and @krakenfx.
A cryptocurrency exchange managed by a centralized business or entity. The biggest CEXes today are @binance , @coinbase , @cryptocom , @FTX_Official and @krakenfx.
24/ Cold wallet
An offline device used to store tokens. Cold wallets can be hardware devices or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.
An offline device used to store tokens. Cold wallets can be hardware devices or simply sheets of paper containing a user’s private keys. Because cold wallets are not connected to the internet, they are generally a safer method of storing cryptocurrencies.
25/ Collateral
Any asset accepted as security for a loan, such as a physical asset like real estate, or a digital asset like an NFT.
Any asset accepted as security for a loan, such as a physical asset like real estate, or a digital asset like an NFT.
26/ Composability
The measure of the usability and ability of the product to be used as a building block in the construction of other products. A protocol that is simple, powerful, and that functions well with other protocols would be considered to have high composability.
The measure of the usability and ability of the product to be used as a building block in the construction of other products. A protocol that is simple, powerful, and that functions well with other protocols would be considered to have high composability.
27/ Compound interest
Compound interest allows greater interest rates and returns on investments by allowing interest gained to be automatically reinvested back in with the original deposits and accrued interest.
Compound interest allows greater interest rates and returns on investments by allowing interest gained to be automatically reinvested back in with the original deposits and accrued interest.
28/ Consensus mechanism
A process through which nodes on a blockchain come into agreement on a transaction or state of the network. The most common consensus mechanisms today are Proof of Work and Proof of Stake.
A process through which nodes on a blockchain come into agreement on a transaction or state of the network. The most common consensus mechanisms today are Proof of Work and Proof of Stake.
29/ Cross-chain
Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value.
Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value.
30/ DAO – Decentralized Autonomous Organization
An organization based on open-source code and governed by its users. DAOs typically focus on a specific project or mission and trade the traditional hierarchical systems of corporations for guidelines written on the blockchain.
An organization based on open-source code and governed by its users. DAOs typically focus on a specific project or mission and trade the traditional hierarchical systems of corporations for guidelines written on the blockchain.
31/ dApp
A type of application that runs on a decentralized network, avoiding a single point of failure.
A type of application that runs on a decentralized network, avoiding a single point of failure.
32/ Decentralized
A system that operates without the control of a central figure or authority, and replaces it with a distributed peer-to-peer network.
A system that operates without the control of a central figure or authority, and replaces it with a distributed peer-to-peer network.
33/ DeFi – Decentralized Finance
The ecosystem of borderless, trustless, peer-to-peer financial tools being built on public blockchains without the use of banks.
The ecosystem of borderless, trustless, peer-to-peer financial tools being built on public blockchains without the use of banks.
34/ DeFi 1.0
DeFi 1.0 refers to the first wave of DeFi projects, which are mainly based on liquidity mining. Popular projects are Compound and Maker.
DeFi 1.0 refers to the first wave of DeFi projects, which are mainly based on liquidity mining. Popular projects are Compound and Maker.
35/ DeFi 2.0
DeFi 2.0 is a movement of projects improving on the problems of DeFi 1.0. The term got hype after @OlympusDAO became big, which uses mechanisms like bonding and Protocol Owned Liquidity.
DeFi 2.0 is a movement of projects improving on the problems of DeFi 1.0. The term got hype after @OlympusDAO became big, which uses mechanisms like bonding and Protocol Owned Liquidity.
36/ Derivatives
A financial instrument deriving its value from the value of an underlying asset. Derivatives markets contain instruments such as futures contracts or options.
A financial instrument deriving its value from the value of an underlying asset. Derivatives markets contain instruments such as futures contracts or options.
37/ DEX – Decentralized Exchange
A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary.
A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary.
38/ Ethereum
A public blockchain serving as the foundation for decentralized applications. Ethereum is the biggest smart contract platform at the moment and has the most adoption and TVL out of all other platforms.
A public blockchain serving as the foundation for decentralized applications. Ethereum is the biggest smart contract platform at the moment and has the most adoption and TVL out of all other platforms.
39/ Ethereum 2.0
ETH 2.0 is an upgrade to the already existing ETH blockchain that aims to increase the speed, efficiency, and scalability, enabling it to address the bottlenecks and increase the # of transactions. The two major changes are “proof of stake” and “sharding.”
ETH 2.0 is an upgrade to the already existing ETH blockchain that aims to increase the speed, efficiency, and scalability, enabling it to address the bottlenecks and increase the # of transactions. The two major changes are “proof of stake” and “sharding.”
40/ ERC-20
The Ethereum token standard, providing a standardized smart contract structure for fungible tokens.
The Ethereum token standard, providing a standardized smart contract structure for fungible tokens.
41/ ERC-721
An Ethereum token standard that allows for the formation of unique tokens, otherwise known as NFTs. Unlike the ERC-20 standard, ERC-721 tokens have specific properties that allow each to be uniquely identified and valued independently of one another.
An Ethereum token standard that allows for the formation of unique tokens, otherwise known as NFTs. Unlike the ERC-20 standard, ERC-721 tokens have specific properties that allow each to be uniquely identified and valued independently of one another.
42/ EVM – Ethereum virtual machine
The EVM is the software platform that developers can use to create dApps on ETH and where all ETH accounts and smart contracts live, as well as the entire state history of Ethereum.
The EVM is the software platform that developers can use to create dApps on ETH and where all ETH accounts and smart contracts live, as well as the entire state history of Ethereum.
43/ FA – Fundamental analysis
Fundamental analysis involves taking a deep dive into the available information about an asset. You could look at its use cases, adoption, the team behind the project, etc. The goal is to reach a conclusion to make investment decisions.
Fundamental analysis involves taking a deep dive into the available information about an asset. You could look at its use cases, adoption, the team behind the project, etc. The goal is to reach a conclusion to make investment decisions.
44/ Flash crash
A flash crash is a market condition where an asset’s price falls very rapidly within a very brief time interval.
A flash crash is a market condition where an asset’s price falls very rapidly within a very brief time interval.
45/ Flash loans
A flash loan is a transaction in which a specific quantity of liquidity is borrowed and repaid in the same transaction or block.
A flash loan is a transaction in which a specific quantity of liquidity is borrowed and repaid in the same transaction or block.
46/ Flippening
The reference of the possible event of Ethereum becoming more valuable than Bitcoin in terms of marketcap. This is a cursed term and should not be mentioned.
The reference of the possible event of Ethereum becoming more valuable than Bitcoin in terms of marketcap. This is a cursed term and should not be mentioned.
47/ Floor price
The lowest available asking price on an NFT marketplace for either an entire collection or a subset of the collection.
The lowest available asking price on an NFT marketplace for either an entire collection or a subset of the collection.
48/ Fork
A change to a blockchain’s protocol. When these changes are minor, this results in a soft fork. When the changes are more fundamental, this may result in a hard fork, leading to the formation of a separate chain with different rules.
A change to a blockchain’s protocol. When these changes are minor, this results in a soft fork. When the changes are more fundamental, this may result in a hard fork, leading to the formation of a separate chain with different rules.
49/ GameFi
GameFinance, often referred to as play to earn, refers to games that are designed with economic and financial aspects of blockchain and cryptocurrencies, enabling players to exert full control over their in-game assets to generate revenue.
GameFinance, often referred to as play to earn, refers to games that are designed with economic and financial aspects of blockchain and cryptocurrencies, enabling players to exert full control over their in-game assets to generate revenue.
50/ Gas fee
A term used on smart contract platforms that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps on the blockchain. It is the “fuel” of network.
A term used on smart contract platforms that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps on the blockchain. It is the “fuel” of network.
51/ Gas limit
A term used on smart contract platforms that refers to the maximum amount of gas the user is willing to spend on a transaction.
A term used on smart contract platforms that refers to the maximum amount of gas the user is willing to spend on a transaction.
52/ Gas war
A gas war happens when many ecosystem participants try to make transactions at the same time, driving up the gas prices for the whole ethereum network. This often happens when minting NFT drops or participating in ICO’s.
A gas war happens when many ecosystem participants try to make transactions at the same time, driving up the gas prices for the whole ethereum network. This often happens when minting NFT drops or participating in ICO’s.
53/ Governance token
A governance token is a token that can be used to vote on decisions that influence an ecosystem.
A governance token is a token that can be used to vote on decisions that influence an ecosystem.
54/ Gwei
A denomination of Ether used as the unit of measure for Ethereum gas prices. 10^9 gwei = 1 ether.
A denomination of Ether used as the unit of measure for Ethereum gas prices. 10^9 gwei = 1 ether.
55/ Halving
An event in which the total rewards per confirmed block halves. For bitcoin this happens around every 4 years.
An event in which the total rewards per confirmed block halves. For bitcoin this happens around every 4 years.
56/ Hash
A hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data.
A hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data.
57/ Hot wallet
A cryptocurrency wallet that is connected to the internet for hot storage of crypto assets, as opposed to an offline, cold wallet with cold storage.
A cryptocurrency wallet that is connected to the internet for hot storage of crypto assets, as opposed to an offline, cold wallet with cold storage.
58/ ICO – Initial coin offering
The selling of tokens to the public in order to raise capital for a crypto-based project . ICOs are a crowdfunding approach, similar to a traditional company’s IPO.
The selling of tokens to the public in order to raise capital for a crypto-based project . ICOs are a crowdfunding approach, similar to a traditional company’s IPO.
59/ IDO – Initial dex offering
An IDO is an alternative to an ICO. IDO’s happen on decentralized platforms like launchpads where investors are required to stake the launchpads native token to participate.
An IDO is an alternative to an ICO. IDO’s happen on decentralized platforms like launchpads where investors are required to stake the launchpads native token to participate.
60/ IEO – Initial exchange offering
A type of crowdfunding where crypto start-ups generate capital by listing through an exchange.
A type of crowdfunding where crypto start-ups generate capital by listing through an exchange.
61/ Impermanent loss
IL is the difference that a liquidity provider loses due to token price fluctuations, compared to holding the original token.
IL is the difference that a liquidity provider loses due to token price fluctuations, compared to holding the original token.
62/ Inflation
The increase of the supply of an asset.
The increase of the supply of an asset.
63/ Interoperability
Blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains.
Blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains.
64/ IoT – Internet of Things
Internet of Things is a global interconnected network of devices, sensors and software that can collect and exchange data with each other in real-time over the Internet.
Internet of Things is a global interconnected network of devices, sensors and software that can collect and exchange data with each other in real-time over the Internet.
65/ IPFS – Inter Planetary file system
The Inter Planetary File System is a peer-to-peer, distributed system for storing and accessing files, as well as websites and applications, which relies on content addressing rather than location.
The Inter Planetary File System is a peer-to-peer, distributed system for storing and accessing files, as well as websites and applications, which relies on content addressing rather than location.
66/ KYC – Know Your Customer
These are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.
These are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.
67/ L0 - Layer 0
Layer 0 projects allow entire blockchains to be built on top of them and allow for cross-chain interoperability between these layer 1 projects. The two most prominent layer 0 blockchain protocols today are Cosmos and Polkadot.
Layer 0 projects allow entire blockchains to be built on top of them and allow for cross-chain interoperability between these layer 1 projects. The two most prominent layer 0 blockchain protocols today are Cosmos and Polkadot.
68/ L1 - Layer 1
The blockchain or main-chain itself. Often referred to smart contract platforms like Ethereum or Solana.
The blockchain or main-chain itself. Often referred to smart contract platforms like Ethereum or Solana.
69/ L2 - Layer 2
Protocols built on top of a layer 1 blockchain commonly used to improve scalability, privacy, and add cross-chain communication. Layer 2 solutions are secured by their underlying mainchain.
Examples are Arbitrum, Optimism and Lightning Network.
Protocols built on top of a layer 1 blockchain commonly used to improve scalability, privacy, and add cross-chain communication. Layer 2 solutions are secured by their underlying mainchain.
Examples are Arbitrum, Optimism and Lightning Network.
70/ Liquidity
How easily a cryptocurrency can be bought and sold without impacting the overall market price.
How easily a cryptocurrency can be bought and sold without impacting the overall market price.
71/ Liquidity mining
Liquidity mining is a mechanism where platforms reward users with their own native token in return for depositing resources that some other user may trade or borrow.
Liquidity mining is a mechanism where platforms reward users with their own native token in return for depositing resources that some other user may trade or borrow.
72/ Liquidity pool
A collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform. On decentralized exchanges and lending protocols liquidity must be provided by the users, as there is no central bank or figure to do so.
A collection of user-provided funds locked into a smart contract to facilitate trading on a DeFi platform. On decentralized exchanges and lending protocols liquidity must be provided by the users, as there is no central bank or figure to do so.
73/ Liquidity provider
Liquidity providers are decentralized exchange users who fund a liquidity pool with tokens they own. In return they receive rewards in the form of trading fees and liquidity mining rewards. Liquidity providers receive LP tokens.
Liquidity providers are decentralized exchange users who fund a liquidity pool with tokens they own. In return they receive rewards in the form of trading fees and liquidity mining rewards. Liquidity providers receive LP tokens.
74/ Marketcap
The total value of an asset based on its current market price. A cryptocurrency’s market cap is found by multiplying the price of a single coin by its circulating supply.
The total value of an asset based on its current market price. A cryptocurrency’s market cap is found by multiplying the price of a single coin by its circulating supply.
75/ Memecoins
Memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders. Examples are Dogecoin and Shiba Inu.
Memecoins are the crypto tokens created as a joke or meme and claim to offer huge gains to holders. Examples are Dogecoin and Shiba Inu.
76/ Mempool
A mempool is the node's collection of all of the unconfirmed transactions that it has seen.
A mempool is the node's collection of all of the unconfirmed transactions that it has seen.
77/ Metamask
An online digital wallet that allows users to manage, transfer and receive Ethereum (or other EVM compatible tokens), operating as an extension to a regular browser.
An online digital wallet that allows users to manage, transfer and receive Ethereum (or other EVM compatible tokens), operating as an extension to a regular browser.
78/ Metaverse
The metaverse can be defined as a simulated digital environment that uses augmented reality (AR), virtual reality (VR), and blockchain, along with concepts from social media, to create spaces for rich user interaction mimicking the real world.
The metaverse can be defined as a simulated digital environment that uses augmented reality (AR), virtual reality (VR), and blockchain, along with concepts from social media, to create spaces for rich user interaction mimicking the real world.
79/ Mining
in a Proof of Work system, this is the process of verifying transactions, organizing them into blocks, and then adding blocks to the blockchain. Participants who perform this process are called miners.
in a Proof of Work system, this is the process of verifying transactions, organizing them into blocks, and then adding blocks to the blockchain. Participants who perform this process are called miners.
80/ Mining pools
An arrangement where a number of miners pool their resources to increase their chances of finding the next block.
An arrangement where a number of miners pool their resources to increase their chances of finding the next block.
81/ Minting
Minting is the process of generating new coins using the proof-of-stake mechanism and adding them to the circulation to be traded.
Minting is the process of generating new coins using the proof-of-stake mechanism and adding them to the circulation to be traded.
82/ Mnemonic phrase
A list of words used in sequence to access or restore your crypto assets. These words must be kept secure and not be shared with anyone, to prevent getting hacked.
A list of words used in sequence to access or restore your crypto assets. These words must be kept secure and not be shared with anyone, to prevent getting hacked.
83/ Multi-sig – Multi signature
An added layer of security by requiring more than one key to authorize a transaction. Community governed projects like a DAO often require multiple signers to approve a transaction before it will be executed.
An added layer of security by requiring more than one key to authorize a transaction. Community governed projects like a DAO often require multiple signers to approve a transaction before it will be executed.
84/ NFT – Non fungible token
A digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.
A digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.
85/ Node
Any device connected to a blockchain network. Different nodes have varying levels of responsibility, and may help validate transactions, store the blockchain’s history, relay data, and perform other functions.
Any device connected to a blockchain network. Different nodes have varying levels of responsibility, and may help validate transactions, store the blockchain’s history, relay data, and perform other functions.
86/ On-chain analysis
On-chain analysts attempt to improve their understanding of a network in order to predict future price movements through analyzing a variety of metrics.
On-chain analysts attempt to improve their understanding of a network in order to predict future price movements through analyzing a variety of metrics.
87/ On-chain/off-chain
Transactions that are recorded on the blockchain itself and shared with all of the participants are done on-chain. A transaction that is processed outside the blockchain network are done off-chain.
Transactions that are recorded on the blockchain itself and shared with all of the participants are done on-chain. A transaction that is processed outside the blockchain network are done off-chain.
88/ Oracles
A service supplying smart contracts with data from the outside world. Smart contracts are unable to access data that exists off-chain, so they rely on oracles to retrieve, verify, and provide external information. The biggest oracle today is @chainlink.
A service supplying smart contracts with data from the outside world. Smart contracts are unable to access data that exists off-chain, so they rely on oracles to retrieve, verify, and provide external information. The biggest oracle today is @chainlink.
89/ OTC – Over the counter
Over-the-counter is defined as a transaction made outside of an exchange, often peer-to-peer through private trades.
Over-the-counter is defined as a transaction made outside of an exchange, often peer-to-peer through private trades.
90/ Peg
A “peg” is a specified price for the rate of exchange between two assets. An example would be stablecoins, who are often pegged to the US Dollar.
A “peg” is a specified price for the rate of exchange between two assets. An example would be stablecoins, who are often pegged to the US Dollar.
91/ POL – Protocol owned liquidity
PoL is a new approach toward providing liquidity pioneered by @OlympusDAO. Instead of relying on incentives for LPs, the protocol sells discounted tokens in exchange for another token which then forms part of the protocol's treasury.
PoL is a new approach toward providing liquidity pioneered by @OlympusDAO. Instead of relying on incentives for LPs, the protocol sells discounted tokens in exchange for another token which then forms part of the protocol's treasury.
92/ Pool
A smart contract containing shared amounts of assets provided by depositors. Pools are either used in Automated Market Makers (AMMs)for optimized trading purposes, lending aggregation, or in shared yield farming strategies, among other things.
A smart contract containing shared amounts of assets provided by depositors. Pools are either used in Automated Market Makers (AMMs)for optimized trading purposes, lending aggregation, or in shared yield farming strategies, among other things.
93/ PoW – Proof of work
Proof of work is a consensus mechanism that requires members of a network, called miners, to expend effort solving an arbitrary mathematical puzzle to verify transactions and add blocks to the blockchain.
Proof of work is a consensus mechanism that requires members of a network, called miners, to expend effort solving an arbitrary mathematical puzzle to verify transactions and add blocks to the blockchain.
94/ PoS – Proof of stake
Proof of stake is a type of consensus mechanism used by blockchain networks to achieve distributed consensus. It requires users to stake their crypto to become a validator in the network. Validators are responsible for the same thing as miners in PoW.
Proof of stake is a type of consensus mechanism used by blockchain networks to achieve distributed consensus. It requires users to stake their crypto to become a validator in the network. Validators are responsible for the same thing as miners in PoW.
95/ Private key
An alphanumeric passcode required to withdraw assets from a blockchain wallet and authorize digital transactions. Because these private keys are long and difficult to memorize, wallets will generally associate them with a seed phrase that is easier to remember.
An alphanumeric passcode required to withdraw assets from a blockchain wallet and authorize digital transactions. Because these private keys are long and difficult to memorize, wallets will generally associate them with a seed phrase that is easier to remember.
96/ Protocol
A blockchain protocol are the rules that govern the network.
A blockchain protocol are the rules that govern the network.
97/ Public key
An alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send tokens to your wallet via your public key, but only you can access the contents by using the corresponding private key.
An alphanumeric code that serves as the address for a blockchain wallet, similar to a bank account number. Other users can send tokens to your wallet via your public key, but only you can access the contents by using the corresponding private key.
98/ P2E
The play-to-earn business model supports the notion of an open economy and gives financial rewards to players who bring value to its game or metaverse.
The play-to-earn business model supports the notion of an open economy and gives financial rewards to players who bring value to its game or metaverse.
99/ Rebase
A token designed so that the circulating supply adjusts automatically according to price fluctuations.
A token designed so that the circulating supply adjusts automatically according to price fluctuations.
100/ ROI – Return on investment
The ratio between the net profit and cost of investing.
The ratio between the net profit and cost of investing.
101/ Satoshi Nakamoto
The individual or group of individuals that created Bitcoin. Definitely not Craig White. Could be @loomdart.
The individual or group of individuals that created Bitcoin. Definitely not Craig White. Could be @loomdart.
102/ Sats - satoshi’s
the smallest denomination of BTC, equal to 0.00000001 bitcoin. Satoshis are named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
the smallest denomination of BTC, equal to 0.00000001 bitcoin. Satoshis are named after Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
103/ Scalability
A protocol’s capacity to handle higher demand and increase transaction throughput as the network grows.
A protocol’s capacity to handle higher demand and increase transaction throughput as the network grows.
104/ Sha256
SHA stands for Secure Hashing Algorithm, a set of cryptographic hashing functions. SHA-256 takes an input of data and generates a long sequence of letters and numbers, called a hash. This hash is then used as a secure placeholder for the data it represents.
SHA stands for Secure Hashing Algorithm, a set of cryptographic hashing functions. SHA-256 takes an input of data and generates a long sequence of letters and numbers, called a hash. This hash is then used as a secure placeholder for the data it represents.
105/ Slippage
The price of a cryptocurrency may change between the time an order is placed and the time that order is ultimately filled. Slippage is the difference between a cryptocurrency’s quoted price and the price that a trade actually executes at.
The price of a cryptocurrency may change between the time an order is placed and the time that order is ultimately filled. Slippage is the difference between a cryptocurrency’s quoted price and the price that a trade actually executes at.
106/ Smart contract
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
107/ Solidity
The native programming language of Ethereum, mainly used to write smart contracts.
The native programming language of Ethereum, mainly used to write smart contracts.
108/ Stablecoin
A stablecoin is a cryptocurrency that has its value pegged to the value of a stable asset. Stable coins are most commonly pegged to the US Dollar but can be pegged to other assets like gold or a basket of crypto assets.
The biggest stablecoin right now is $USDT.
A stablecoin is a cryptocurrency that has its value pegged to the value of a stable asset. Stable coins are most commonly pegged to the US Dollar but can be pegged to other assets like gold or a basket of crypto assets.
The biggest stablecoin right now is $USDT.
109/ Staking
The act of staking a cryptocurrency deposit to yield farm additional cryptocurrency via CeFi or DeFi staking offerings, programs, or projects.
The act of staking a cryptocurrency deposit to yield farm additional cryptocurrency via CeFi or DeFi staking offerings, programs, or projects.
110/ TA – Technical analysis
An evaluation method involving statistical analyses of market activity, such as price and volume. Charts and other tools are used to identify patterns to underpin and drive investment decisions.
An evaluation method involving statistical analyses of market activity, such as price and volume. Charts and other tools are used to identify patterns to underpin and drive investment decisions.
111/ Ticker
An abbreviation used to uniquely identify cryptocurrencies. For example, the ticker of Bitcoin is $BTC.
An abbreviation used to uniquely identify cryptocurrencies. For example, the ticker of Bitcoin is $BTC.
112/ Tokenomics
Tokenomics is the science of token economy which consists of a set of rules that governs a cryptocurrency's issuance and supply.
Tokenomics is the science of token economy which consists of a set of rules that governs a cryptocurrency's issuance and supply.
113/ Trading volume
Тrading volume refers to the total number of coins or tokens that have been exchanged between buyers and sellers of a given asset during trading hours of a certain day, often nominated in US dollars.
Тrading volume refers to the total number of coins or tokens that have been exchanged between buyers and sellers of a given asset during trading hours of a certain day, often nominated in US dollars.
114/ TPS - Transactions per second
Transactions per second (TPS) is a measure of a networks capacity to perform transactions or calculations in a second.
Transactions per second (TPS) is a measure of a networks capacity to perform transactions or calculations in a second.
115/ TVL – Total Value Locked
The Total Value Locked into a Smart Contract used as a measurement of investor deposits. It is the dollar value of all the coins or tokens locked into a platform, protocol, lending program, yield farming program, or insurance liquidity pool.
The Total Value Locked into a Smart Contract used as a measurement of investor deposits. It is the dollar value of all the coins or tokens locked into a platform, protocol, lending program, yield farming program, or insurance liquidity pool.
116/ TWAP – Time Weighted Average Price
TWAP is an algorithmic trade execution strategy that aims to achieve an average execution price close to the time-weighted average price of the user-specified period. Often used to minimize a large order’s impact on the market.
TWAP is an algorithmic trade execution strategy that aims to achieve an average execution price close to the time-weighted average price of the user-specified period. Often used to minimize a large order’s impact on the market.
117/ Vitalik Buterin
@VitalikButerin is one of the creators of Ethereum, the second-largest cryptocurrency after Bitcoin.
@VitalikButerin is one of the creators of Ethereum, the second-largest cryptocurrency after Bitcoin.
118/ Web 3.0
The next version of the internet. It is all about reading, writing and owning. Web3 is decentralized, open and of greater utility.
Web 1.0 = Read-only
Web 2.0 = Read and write
The next version of the internet. It is all about reading, writing and owning. Web3 is decentralized, open and of greater utility.
Web 1.0 = Read-only
Web 2.0 = Read and write
119/ Whitepaper
A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed.
A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed.
120/ Yield farming
Yield farming is the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.
Yield farming is the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.
fin.
Next up are threads on advanced crypto terminology and CT slang. If I missed anything, let me know in the comments.
Liked the thread? RTs/favorites/shares are appreciated! ♥️
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Next up are threads on advanced crypto terminology and CT slang. If I missed anything, let me know in the comments.
Liked the thread? RTs/favorites/shares are appreciated! ♥️
For more threads like this, give me a follow. 🤝
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