Glossary of Technical Terms

1. Glossary of Technical Terms

Blockchain: A distributed ledger technology that maintains a list of records, or blocks, linked and secured by cryptography.

Cryptocurrency: A type of digital currency based on blockchain technology, used to make secure, decentralized transactions.

Token : A unit of value issued by a project or company, often used in blockchain systems.

Smart Contract : A self-executing contract with the terms of the agreement between the buyer & seller written directly in lines of code.

Decentralization : The transfer of control from a central entity to a distributed, decentralized network.

Consensus : A blockchain process used to reach agreement on a single state of the network.

Node : A connection point capable of receiving, creating, storing and sending data across the blockchain network.

Distributed Ledger: A database managed jointly by several participants, on several sites.

Proof of Work : A consensus mechanism that requires a blockchain stakeholder to perform difficult, but easily verifiable, computational work.

Proof of Stake : A consensus mechanism where token owners can validate blocks of transactions based on the number of tokens they hold.

ERC-20 : A technical standard used for all smart contracts on the Ethereum blockchain for the issuance of tokens.

Ethereum : An open blockchain platform that allows you to create and execute smart contracts.

Gas (Transaction Fee) : A unit that measures the amount of computation required to execute certain operations on the Ethereum blockchain.

DAO (Decentralized Autonomous Organization) : An organization represented by rules coded in a computer program, controlled by the members of the organization and not influenced by a central authority.

Fork : A change to the protocol rules of a blockchain that results in two blockchains operating simultaneously, one following the old rules and the other following the new ones.

Hash : A function that converts an input (or 'message') into a fixed-length character string, which is usually a sequence of numbers and letters.

Cold Wallet/Hot Wallet : A cold wallet is an offline cryptocurrency wallet, while a hot wallet is connected to the Internet.

NFT (Non-Fungible Token) : A type of cryptographic token on a blockchain that represents a unique asset.

Layer 2 : Solutions developed to increase the scalability of a blockchain by processing transactions outside of the main blockchain.

KYC (Know Your Customer) : A regulatory process where businesses verify the identity of their customers, often used in the financial sector.

AML (Anti-Money Laundering) : Procedures, laws and regulations designed to prevent individuals from disguising illicit funds as legitimate income.

DeFi (Decentralized Finance) : Financial services built on blockchain systems that operate without central authorities.

DEX (Decentralized Exchange): An exchange that allows users to carry out cryptocurrency transactions directly with each other without an intermediary.

Tokenomics: A term that describes the economic aspects of a new token, including its distribution, utility, and economics.

Liquidity Pool : A pool of funds locked in a smart contract used to facilitate trading on a DEX, by providing liquidity.

Oracles : Third-party services that provide external data to a blockchain or smart contract.

Fiat : Traditional currency, such as the euro or the dollar, issued by governments.

Altcoin : Any token or cryptocurrency that is not Bitcoin

Whitelist : A list of authorized participants, often used in the context of an ICO or token launch.

Bear Market/Bull Market: Terms used to describe the trend of a market. A bear market indicates a downward trend, while a bull market indicates an upward trend.

ATH (All-Time High) : The highest price ever reached by a cryptocurrency.

FUD (Fear, Uncertainty, Doubt) : A term used to describe a strategy of manipulating the market by spreading negative information, often false or exaggerated.

HODL : A popular term in the cryptocurrency community, meaning to hold an investment rather than sell it, even during times of volatility.

Scalability : The ability of a blockchain to handle an increasing volume of transactions.

Seed Phase: The initial funding phase of a project where client can pre order utility token before their official launch with a discount & vesting .

Token Burn: The permanent destruction of tokens to reduce supply and potentially increase the value of remaining tokens.

Wallet Address: A unique string of characters that represents the destination for a cryptocurrency transaction.

Whale: An individual or entity that holds a large amount of cryptocurrency, capable of influencing the market.

2FA (Two-Factor Authentication) : A security measure where the user must provide two separate forms of proof of identity before accessing an account.

51% Attack : An attack on a blockchain by a group of miners controlling more than 50% of the network's mining power, allowing the transaction process to be disrupted.

Cold Storage : Offline cryptocurrency storage for increased security.

Custodial/Non-Custodial Wallet : A wallet where the private key is managed by a third party (custodial) or directly by the user (non-custodial).

DApps (Decentralized Applications) : Applications running on a P2P network of computers rather than on a single centralized computer.

Gas Limit : The maximum amount of gas a user is willing to spend for a transaction on Ethereum.

Hash Rate : The speed at which a computer completes an operation in the cryptocurrency mining process.

Mainnet : The main network of a blockchain where the actual transactions occur.

Market Cap: The total market capitalization of a cryptocurrency, calculated by multiplying the current price by the total number of coins in circulation.

Multisig: A security feature that requires multiple signatures to authorize a cryptocurrency transaction.

On-Chain: Refers to transactions or activities that take place directly on the blockchain and are permanently recorded on the network.