A
API
Application Programming Interface - a set of protocols and tools for building software applications that allows different applications to communicate with each other.
Algorithm
A set of rules or instructions designed to perform a specific task or solve a particular problem, often used in computer science and blockchain consensus mechanisms.
Altcoin
Alternative cryptocurrency to Bitcoin. Any digital currency that is not Bitcoin, including Ethereum, Litecoin, and thousands of others.
ASIC
Application-Specific Integrated Circuit - specialized hardware designed for specific tasks, commonly used in Bitcoin mining for enhanced efficiency.
Atomic Swap
A smart contract technology that enables the exchange of different cryptocurrencies without using centralized intermediaries like exchanges.
B
Blockchain
A distributed ledger technology that maintains a continuously growing list of records (blocks) linked and secured using cryptography.
Bitcoin
The first and most well-known cryptocurrency, created by Satoshi Nakamoto in 2008 as a peer-to-peer electronic cash system.
Block
A collection of transactions that have been verified and added to the blockchain. Each block contains a reference to the previous block.
Byzantine Fault Tolerance
A property of distributed systems that allows them to continue operating even when some nodes fail or act maliciously.
Block Height
The number of blocks in the chain between any given block and the very first block (genesis block) on the blockchain.
C
Consensus
A mechanism used in blockchain networks to achieve agreement on the state of the ledger among distributed nodes.
Cryptocurrency
A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Cryptography
The practice and study of techniques for secure communication in the presence of third parties, fundamental to blockchain security.
Cold Storage
A method of storing cryptocurrency offline, typically on hardware devices or paper wallets, for enhanced security.
Cross-chain
Technology that enables the transfer of assets or data between different blockchain networks.
D
DeFi
Decentralized Finance - financial services built on blockchain networks that operate without traditional financial intermediaries.
DAO
Decentralized Autonomous Organization - an organization represented by rules encoded as a computer program, controlled by members rather than central authorities.
DApp
Decentralized Application - applications that run on a blockchain network and operate without a central authority.
Digital Signature
A cryptographic technique that verifies the authenticity and integrity of digital messages or documents.
Double Spending
A potential flaw in digital cash schemes where the same single digital token can be spent more than once.
E
Ethereum
A decentralized platform that enables smart contracts and DApps to be built and operated without downtime, fraud, or third-party interference.
Exchange
A platform where cryptocurrencies can be traded, bought, and sold for other digital currencies or traditional fiat currencies.
EVM
Ethereum Virtual Machine - the runtime environment for smart contracts on the Ethereum blockchain.
Encryption
The process of converting information or data into a code to prevent unauthorized access.
EIP
Ethereum Improvement Proposal - a design document providing information to the Ethereum community about proposed changes to the protocol.
F
Fork
A change to the blockchain protocol that can result in two separate chains - soft fork (backward compatible) or hard fork (not backward compatible).
Fiat Currency
Government-issued currency that is not backed by a physical commodity, such as the US dollar or euro.
FOMO
Fear of Missing Out - emotional response that drives people to buy cryptocurrencies when prices are rising rapidly.
Flash Loan
A type of loan in DeFi that allows borrowing without collateral, as long as the loan is repaid within the same transaction.
Faucet
A website or application that gives away small amounts of cryptocurrency for free, often used for testing purposes.
G
Gas
The fee required to conduct a transaction or execute a contract on the Ethereum blockchain.
Genesis Block
The first block in a blockchain network, from which all subsequent blocks are linked.
GPU
Graphics Processing Unit - hardware component that can be used for cryptocurrency mining, particularly for altcoins.
Governance Token
A token that gives holders the right to vote on decisions affecting the future development of a protocol or platform.
Gwei
A unit of measure for gas prices on the Ethereum network. 1 ETH = 1,000,000,000 Gwei.
H
Hash
A fixed-length string generated by a hash function that represents data of any size. Used in blockchain for data integrity.
Hardware Wallet
A physical device designed to securely store cryptocurrency private keys offline.
Hash Rate
The measure of computational power per second used when mining cryptocurrency.
HODL
A misspelling of "hold" that became a popular term in cryptocurrency culture meaning to hold onto cryptocurrency rather than sell.
Halving
An event where the reward for mining new blocks is cut in half, reducing the rate at which new coins are created.
I
ICO
Initial Coin Offering - a fundraising mechanism where new cryptocurrency projects sell tokens to early supporters.
IPFS
InterPlanetary File System - a protocol and network designed to create a distributed method of storing and sharing hypermedia in a distributed file system.
Immutable
A characteristic of blockchain data that cannot be changed or altered once it has been recorded.
Interoperability
The ability of different blockchain networks to communicate and share information with each other.
Inflation
The rate at which the general level of prices for goods and services is rising, affecting the purchasing power of currency.
J
JSON-RPC
A remote procedure call protocol encoded in JSON, commonly used for communication with blockchain nodes.
Javascript
A programming language commonly used in web development and blockchain applications, especially for frontend interfaces.
JPEG
A popular image format, also used humorously in crypto culture to refer to NFTs (Non-Fungible Tokens).
K
KYC
Know Your Customer - a process used by financial institutions to verify the identity of their clients.
Keccak
A cryptographic hash function used in Ethereum and other blockchain systems.
Key Pair
A set of two keys (public and private) used in asymmetric cryptography for secure communication.
L
Layer 2
Secondary frameworks or protocols built on top of existing blockchains to improve scalability and transaction speed.
Liquidity
The degree to which an asset can be quickly bought or sold in the market without affecting its price.
Lightning Network
A Layer 2 scaling solution for Bitcoin that enables faster and cheaper transactions.
Ledger
A record-keeping system that maintains a list of all transactions, fundamental to blockchain technology.
M
Mining
The process of validating transactions and adding them to the blockchain, typically rewarded with cryptocurrency.
Merkle Tree
A data structure used in blockchain to efficiently verify the integrity of large sets of data.
Mainnet
The live blockchain network where actual transactions take place, as opposed to testnets.
Multi-sig
Multi-signature - a security feature that requires multiple private keys to authorize a transaction.
MEV
Maximal Extractable Value - the maximum value that can be extracted from block production in excess of the standard block reward and gas fees.
N
NFT
Non-Fungible Token - a unique digital asset that represents ownership of a specific item or piece of content.
Node
A computer that participates in a blockchain network by maintaining a copy of the blockchain and validating transactions.
Network
The interconnected system of nodes that make up a blockchain infrastructure.
Nonce
A number used once in cryptographic communication, often used in blockchain mining to find valid blocks.
O
Oracle
A third-party service that provides external data to smart contracts, enabling them to interact with real-world information.
Off-chain
Transactions or data that occur outside of the main blockchain network, often for scalability purposes.
Open Source
Software whose source code is made freely available and may be redistributed and modified.
OTC
Over-The-Counter - trading that occurs directly between parties without the supervision of an exchange.
P
Private Key
A secret key that allows access to cryptocurrency funds and must be kept secure and private.
Public Key
A cryptographic key that can be shared publicly and is used to receive cryptocurrency transactions.
PoW
Proof of Work - a consensus mechanism that requires miners to solve complex mathematical problems to validate transactions.
PoS
Proof of Stake - a consensus mechanism where validators are chosen based on the amount of cryptocurrency they hold and stake.
Protocol
A set of rules that define how data is transmitted and processed in a blockchain network.
Q
Quantum Computing
A type of computing that uses quantum-mechanical phenomena to perform calculations, potentially threatening current cryptographic methods.
Quorum
The minimum number of members required to be present to make a decision or validate a transaction in a blockchain network.
R
Rug Pull
A scam where developers abandon a project and run away with investors' funds, leaving the token worthless.
RPC
Remote Procedure Call - a protocol that allows a program to execute code on a remote server or blockchain node.
Rollup
A Layer 2 scaling solution that bundles multiple transactions together before submitting them to the main blockchain.
Rekt
Slang term meaning "wrecked" - used when someone loses a significant amount of money in cryptocurrency trading.
S
Smart Contract
Self-executing contracts with terms directly written into code, automatically enforcing agreements on the blockchain.
Staking
The process of holding cryptocurrency in a wallet to support network operations and earn rewards.
Satoshi
The smallest unit of Bitcoin, named after Satoshi Nakamoto. 1 Bitcoin = 100,000,000 Satoshis.
Seed Phrase
A series of words that can be used to recover access to a cryptocurrency wallet.
Sharding
A database partitioning technique used in blockchain to improve scalability by splitting data across multiple nodes.
T
Token
A digital asset that represents value or utility on a blockchain network.
Testnet
A blockchain network used for testing purposes, separate from the main network (mainnet).
Transaction
A transfer of cryptocurrency from one address to another, recorded on the blockchain.
Turing Complete
A system that can perform any computation given enough time and resources, like the Ethereum Virtual Machine.
TPS
Transactions Per Second - a measure of a blockchain network's processing capacity.
U
Uniswap
A decentralized exchange protocol built on Ethereum for trading ERC-20 tokens.
Unbanked
Individuals who do not have access to traditional banking services, often served by cryptocurrency solutions.
Upgrade
A modification or improvement to a blockchain protocol, often implemented through hard forks or governance mechanisms.
V
Validator
A participant in a blockchain network responsible for validating transactions and maintaining network consensus.
Volatility
The degree of variation in cryptocurrency prices over time, often much higher than traditional assets.
Vitalik
Vitalik Buterin - the co-founder of Ethereum and a prominent figure in the cryptocurrency space.
W
Wallet
A digital tool used to store, send, and receive cryptocurrency, containing private and public keys.
Web3
The third generation of the internet, built on blockchain technology and focused on decentralization.
Whale
A term used to describe individuals or entities that hold large amounts of cryptocurrency.
Whitepaper
A document that outlines the technical details and vision of a cryptocurrency or blockchain project.
X
XRP
The native cryptocurrency of the Ripple network, designed for fast and cheap cross-border payments.
Y
Yield Farming
A DeFi practice where users provide liquidity to protocols in exchange for rewards, often in the form of additional tokens.
Yield
The return on investment earned from staking, lending, or other DeFi activities.
Z
Zero-Knowledge Proof
A cryptographic method that allows one party to prove knowledge of a value without revealing the value itself.
ZK-Rollup
A Layer 2 scaling solution that uses zero-knowledge proofs to bundle transactions and improve blockchain efficiency.