Under Proof of Work, this is when one or a group of miners control over 50% of a network’s mining hashrate or computing power.
Under Proof of Stake, this is when one or a group of validators own over 50% of the network’s staked cryptocurrency.
AMM (Automated Money Market)
An automated market maker (AMM) is the underlying protocol that powers all decentralized exchanges (DEXs). Simply put, they are autonomous trading mechanisms that eliminate the need for centralized exchanges and related market-making techniques.
APR (Annual Percentage Rate)
Annual Percentage Rate or APR is the rate of return earned on an investment over a one year period.
APY (Annual Percentage Yield)
Annual Percentage Yield or APY is the rate of return earned on an investment with compound interest factored into the calculation.
Also commonly referred to as “public-key cryptography”; allows an actor to utilize two mathematically linked— yet distinct— keys to sign and/or encrypt a datum.
The use of asymmetric cryptography to encrypt a datum with a public key such that it can only be decrypted with a mathematically linked (yet distinct) private key, for the purposes of maintaining the datum’s confidentiality. Note: asymmetric encryption is similar to (but distinct from) a cryptographic signing workflow.
Smart contract technology that allows a crypto asset to be transferred from one party to another, without the use of a centralized intermediary.
BFT (Byzantine Fault Tolerance)
Byzantine Fault Tolerance (BFT) is a trait of decentralized, permissionless systems which are capable of successfully identifying and rejecting dishonest or faulty information.
A list of people or things that are regarded as unacceptable or untrustworthy and should be excluded or avoided. In blockchain, blacklist usually refers specifically to a list of wallet addresses.
A discrete data structure that represents set of atomic transactions that have been validated, verified, and executed at a particular point in time.
A block explorer is an online blockchain browser that can show the details of all transactions that have ever happened on a blockchain network. Think of them as a ‘Google Search’ of a specific blockchain network. There are different block explorers for different blockchain networks. Etherscan is the main block explorer for the Ethereum blockchain.
A data structure, or an implementation of the data structure, that is comprised of a cryptographically-linked list of blocks and is commonly used to maintain an immutable ledger by means of a distributed peer-to-peer blockchain network.
A reference blockchain implementation that other communities have forked such that their respective blockchain implementations are similar in that their nodes behave similarly, consume similar configuration files, are compatible with similar SDKs, and are easier to link via IBC. Often, blockchain frameworks are broken down into components that drive the node and components that developers utilize to access the blockchain network— these are referred to as the Blockchain Protocol and the Blockchain Software Development Kit (SDK), respectively.
A piece of software that, when executed, launches a blockchain node that has the ability to join a blockchain network.
A high-level network of interconnected blockchain nodes that work together as a distributed operating system to facilitate transactions and maintain a single blockchain ledger.
The belief that decentralized networks face the issue of only being able to accomplish two out the following three benefits at any given time:
Decentralization, Security, and Scalability.
A borrow limit is the amount of money that individuals can borrow from other individuals or parties. This amount can be determined by a range of factors, including the total assets a person has, the. value of collateralised assets, etc.
In finance, borrowing refers to receiving financial resources by an entity or person from another entity or person with predefined mutually agreed-upon terms. Borrowing assets usually incurs a cost to the borrower as the borrow assets usually have an interest rate on amount borrowed.
In the blockchain industry, a ‘bridge’ is a tool that makes it possible to port assets from one blockchain to another. Bridges work by creating synthetic derivatives that represent an asset from another blockchain. Bridges are often centralised.
A computer object code that is processed by a program. Bytecode is a low-level programming language which is compiled from high-level programming languages.
CEX (Centralized Exchange)
A centrally-controlled cryptocurrency exchange.
It is custodial in nature, holds users’ data and funds, and acts as an intermediary between buyers and sellers.
CeFi (Centralised Finance)
CeFi is a term used to describe Centralised financial applications, platforms and systems. Many CeFi platforms blend crypto investment opportunities with some of the ease of use and security of traditional financial-services products (which is often referred to as TradFi).
An asset that is pledged as security for repayment of a loan, to be forfeited in the event of a liquidation or default.
- A person who is employed to ensure that a company does not contravene any statutes or regulations which apply to its activities.
the state in which actors and nodes on a blockchain network arrive at a universal truth (with respect to the network in question).
an algorithmic workflow that is used to facilitate and achieve consensus in a uniform manner across a blockchain network. The two most popular consensus mechanisms are Proof-of-Work (PoW) and Proof-of-Stake (PoS).
DEX (Decentralised Exchange)
A peer-to-peer marketplace that uses blockchain technology and smart contracts to enable transactions between users.
It does not hold the users’ funds and instead allows them to trade their assets from their own wallets.
DeFi (Decentralized Finance)
A financial system that runs on a decentralized network rather than a single server. DeFi has become an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
In computing terms, a decentralized network
architecture distributes workloads among several machines, instead of relying on a single central server
In DeFi, delegation refers to a cryptocurrency transaction from a wallet to a validator address. Delegations contribute to the efficacy of validator nodes and helps secure Proof of Stake blockchains.
An account that sends tokens to a validator to receive a proportion of rewards generated from that validator node
The process whereby a validator signs two blocks at the same time.
A period wherein a validator is absent from signing transactions.
The price with the highest number of bidders is selected as the offering price so that the entire amount offered is sold at a single price. Dutch auctions can also refer to a market where prices generally start high and incrementally drop until a bidder accepts the going price.
EVM (Ethereum Virtual Machine)
A software platform that blockchain developers use to execute and deploy smart contracts, as well as create decentralized applications (dApps) on the Ethereum network.
A server that sits on the perimeter of an established network topology such that it connects directly with infrastructure provided by the public and/or external third parties.
A type of DeFi loan in which a specific amount of liquidity is borrowed and repaid in the same transaction or block — without the need for collateral.
The first block in a blockchain network, almost always hard-coded into the protocol software.
It is also often referred to as Block 0 or Block 1.
On-chain governance is a system for managing and implementing changes to blockchains and for mediating between key stakeholders including project team, community, investors and blockchain validators.
A software upgrade that is incompatible with the existing blockchain protocol, causing a permanent split into two separate blockchain networks running parallel with each other.
A single order to buy or sell a large amount of an asset that has been divided into smaller limit orders, typically by using an automated program, in an attempt to conceal the actual order quantity.
Fetches the raw data from the node, then processes it and stores it in the database in an efficient way to provide quick access to the blockchain data.
The ability of different blockchain networks to exchange and leverage data between one another and to move unique types of digital assets between the networks' respective blockchains.
JOMO (Joy Of Missing Out)
The opposite of the more commonly-used term, FOMO (Fear Of Missing Out).
It is typically used to display happiness of not being involved in certain crypto projects, when their prices are declining or they are revealed to be scams.
KYB (Know Your Business)
Like KYC, but for businesses, KYB
compliance requires businesses to collect vital information about the partners associated with their business and check if they are complying with Anti-Money Laundering regulations.
KYC (Know Your Customer)
The process that financial institutions use to verify the identity of their current and potential customers.
Its goal is to prevent fraud, money laundering, terrorism financing, and other illegal activities.
LP (Liquidity Pool) Staking
Staking a token that you receive for providing liquidity to cryptocurrency market. Providing liquidity requires staking equal values of different tokens, which generates a LP token. This new LP token is then staked in a new pool in order to earn a yield.
LP (Liquidity Pool) Token
A Token that is received for providing equal value of liquidity to both sides of a money market.
LVR (Loan to Value Ratio)
The value of a loan as a percentage of the value of your asset. In realestate, the LVR formula is calculated by dividing the loan by the property's value.
the action of allowing a person or organization the use of a sum of money under an agreement to pay it back later.
The term “liquidation” simply means converting assets to cash. Forced liquidation in crypto trading refers to an involuntary conversion of crypto assets into cash or cash equivalents (such as stablecoins). Forced liquidation occurs when a trader fails to meet the margin requirement set for a leveraged position.
The liquidation threshold is the percentage at which a loan is defined as undercollateralised. For example, a Liquidation threshold of 80% means that if the value rises above 80% of the collateral, the loan is undercollateralised and could be liquidated.
The ability of a coin to be easily converted into cash or other coins. In this sense, good liquidity means that an asset can be quickly and easily bought or sold without having much effect on its price.
Liquidity mining is a mechanism or process in which participants supply cryptocurrencies into liquidity pools, and are rewarded with fees and tokens based on their share.
In finance, a loan refers to the lending of money by one or more individuals or organisation to other individuals, organisations, etc. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.
A token distribution method that can be thought of as a modified version of an airdrop.
It requires interested users to lock their tokens in a smart contract for a certain amount of time in order to receive free tokens.
MANTRA POOL is a crypto savings game that allows users to participate for the chance to win a percentage of MANTRA DAO Foundation's staking rewards. Every week, the protocol will select five randomly generated winners and those five participants will receive: 1st place: 50% of the total pool.
A fully developed, deployed, and working version of a blockchain network.
It is a live blockchain where its own cryptocurrencies, or tokens, are in use and transactions are verified and recorded.
Marketcap (Market Capitalisation)
In blockchain, marketcap refers to the market value of the token price multiplied by the number of tokens in circulation.
The mempool (memory pool) is a smaller database of unconfirmed or pending transactions which every node keeps. When a transaction is confirmed by being included in a block, it is removed from the mempool.
The top-most node in a Merkle tree that represents a single hash that can verify all data assigned to that tree. In blockchain usage, the hash of a Merkle root can be used to verify the integrity of all transactions assigned to the respective block.
(commonly referred to as a hash tree) — a data structure found in each block of a blockchain used to quickly verify the integrity of all transactions in a block by some hash function. Each datum (generally, a transaction) is represented as a leaf in the tree, where it is then hashed and the resulting hash placed in the parent node of that leaf (note that here, “node” is not the same as a “blockchain node” and instead refers to the repetitive data structure used to encapsulate data within the tree itself). Then, every n hashes are hashed, and their respective hashes are identified as parent nodes of those n hashes such that, if n = 2 and the process is repeated with the parent nodes until only one hash remains, all nodes (save for the original leaves containing the real data) represent a binary tree. Merkle trees are computed in such a way that they’re idempotent for the purposes of verification.
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications.
The process by which blocks are created and added (generally by miners) to the blockchain in accordance with an implementation of the PoW consensus mechanism.
The process by which blocks are created and added (generally by validators) to the blockchain in accordance with an implementation of the PoS consensus mechanism (or its variants).
NFT (Non-Fungible Token)
A non-fungible token is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.
also referred to as a “blockchain node” — a server that stores, shares, and updates the blockchain ledger.
Parachains are custom, project-specific blockchains that are integrated within the Polkadot (DOT) and Kusama (KSM) networks. Parachains can be customized for any number of use cases and feed into the main blockchain, called the Relay Chain, considered to be the heart of the Polkadot and Kusama networks.
PoH (Proof of History)
Proof of History is a sequence of computation that can provide a way to cryptographically verify passage of time between two events. It uses a cryptographically secure function written so that output cannot be predicted from the input, and must be completely executed to generate the output.
PoS (Proof of Stake)
a set of protocols often used as consensus mechanisms in which validators are selected for block production based on the amount of stake that those validators hold. The PoS consensus mechanism was designed in an effort to avoid the computational cost attributed to PoW consensus mechanisms.
PoW (Proof of Work)
a cryptographic proof, often used as a consensus mechanism, in which one party proves to others that a certain amount (or more than a certain amount) of computational effort has been expended. In blockchain implementations, this tends to be performed by finding second hash preimage that corresponds to one previously given.
A key used in asymmetric cryptography that is meant for use only by its assigned actor, and not by the public. Private keys are used to decrypt data and sign messages. A private key is mathematically linked to a public key.
the components of a Blockchain Framework that make it necessary to operate a node such that multiple implementations of the same framework can, to a degree, interoperate
A key used in asymmetric cryptography that is meant for use by the public, and can be shared by its assigned actor. Public keys are used to encrypt data and verify messages. A public key is mathematically linked to a private key.
Financial incentives that are distributed to validators for securing the network
also known as a mnemonic phrase; a set of words (conventionally 12 or 24) that are used to generate private and public keypairs.
a blockchain node that is also an edge server; typically, sentries do not participate as validator nodes, and exist as a layer of defense against attacks, malformed transactions or blocks, and other deformities on the upper levels of the OSI model.
a computer process that provides resources, data, or services to other computers or clients over a network.
also referred to as a “daemon” — a server that runs in the background such that a human actor need not maintain an active user session in order to maintain the server’s execution workflow.
computing machine that typically hosts active server daemons.
The use of asymmetric cryptography to sign a datum with a private key such that it can only be verified with a mathematically linked (yet distinct) public key, for the purposes of maintaining the datum’s integrity. Note: asymmetric encryption is similar to (but distinct from) asymmetric encryption. Signing is often used to vouch for the validity of blocks that are being confirmed by the blockchain network.
A mechanism used by PoS protocols to discourage behavior that may harm the network. Slashing is a financial penalty that validators review for acting incorrectly and irresponsibly (for double signing transactions and for downtime).
Traditionally, the term snapshot refers to the ability to record the state of a computer system or storage device at a specific point in time. In the blockchain industry, a snapshot is often describing the act of recording the state of a blockchain on a particular block height.
A class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset.
A way of earning rewards for ‘holding’ (or ‘locking up’) certain cryptocurrencies. Cryptocurrencies that allow staking use a “consensus mechanism” called Proof of Stake, which is the way they ensure that all transactions are verified and secured without a bank or payment processor in the middle. Your crypto, if you choose to stake it, becomes part of that process.
A Protocol and software development kit of Polkadot
A SASS application that provides Identity verification services for individuals and corporations.
Synthetic tokens are collateral-backed tokens whose value fluctuates depending on the tokens' reference index. Synthetic tokens blend features of prediction markets, futures markets, and collateralized loans
TVL (Total Value Locked)
The overall value of crypto assets deposited in a decentralized finance (DeFi) protocol or in DeFi protocols generally. It has emerged as a key metric for gauging interest in that particular sector of the crypto industry.
Tendermint is software for securely and consistently replicating an application on many machines. It is the consensus mechanism used in the Cosmos blockchain ecosystem.
Digital assets that mimic the price action of publicly traded stocks. These tokens allow cryptocurrency traders to gain exposure to the price action of stocks without leaving the crypto ecosystem.
“Tokenomics” has become a popular term in the last few years to describe the math and incentives governing crypto assets as well as distribution startegy. It includes everything about the mechanics of how the asset works, as well as the psychological or behavioral forces that could affect its value long term.
Uniswap is a popular cryptocurrency exchange which uses a decentralized network protocol. Uniswap is also the name of the company that initially built the Uniswap protocol. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
A person/group (actor) who is responsible for validating/verifying transactions on a blockchain.
A blockchain node owned and operated by a validator that is responsible for producing and/or validating blocks on a blockchain network.
In the blockchain industry, a cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys
for cryptocurrency transactions.
WalletConnect is an open source protocol for connecting decentralized applications to cryptocurrency wallets with QR code scanning or deep linking.
An idea for a new iteration of the World Wide Web based on blockchain technology, which incorporates concepts such as decentralization and token-based economics.
A application software that runs on a web server, unlike computer-based software programs that are run locally on the operating system of the device. Web applications are accessed by the user through a web browser with an active network connection.