> For the complete documentation index, see [llms.txt](https://decentrashop.gitbook.io/decentrashop/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://decentrashop.gitbook.io/decentrashop/appendix/glossary-of-technical-terms.md).

# Glossary of Technical Terms

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## <mark style="color:purple;">1. Glossary of Technical Terms</mark>

<mark style="color:blue;">**Blockchain:**</mark>  A distributed ledger technology that maintains a list of records, or blocks, linked and secured by cryptography.

<mark style="color:blue;">**Cryptocurrency:**</mark> A type of digital currency based on blockchain technology, used to make secure, decentralized transactions.

<mark style="color:blue;">**Token :**</mark> A unit of value issued by a project or company, often used in blockchain systems.

<mark style="color:blue;">**Smart Contract :**</mark> A self-executing contract with the terms of the agreement between the buyer & seller written directly in lines of code.

<mark style="color:blue;">**Decentralization :**</mark> The transfer of control from a central entity to a distributed, decentralized network.

<mark style="color:blue;">**Consensus :**</mark> A blockchain process used to reach agreement on a single state of the network.

<mark style="color:blue;">**Node :**</mark> A connection point capable of receiving, creating, storing and sending data across the blockchain network.

<mark style="color:blue;">**Distributed Ledger:**</mark> A database managed jointly by several participants, on several sites.

<mark style="color:blue;">**Proof of Work :**</mark> A consensus mechanism that requires a blockchain stakeholder to perform difficult, but easily verifiable, computational work.

<mark style="color:blue;">**Proof of Stake :**</mark> A consensus mechanism where token owners can validate blocks of transactions based on the number of tokens they hold.

<mark style="color:blue;">**ERC-20 :**</mark> A technical standard used for all smart contracts on the Ethereum blockchain for the issuance of tokens.

<mark style="color:blue;">**Ethereum :**</mark> An open blockchain platform that allows you to create and execute smart contracts.

<mark style="color:blue;">**Gas (Transaction Fee) :**</mark> A unit that measures the amount of computation required to execute certain operations on the Ethereum blockchain.

<mark style="color:blue;">**DAO (Decentralized Autonomous Organization) :**</mark> An organization represented by rules coded in a computer program, controlled by the members of the organization and not influenced by a central authority.

<mark style="color:blue;">**Fork :**</mark> 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.

<mark style="color:blue;">**Hash :**</mark> A function that converts an input (or 'message') into a fixed-length character string, which is usually a sequence of numbers and letters.

<mark style="color:blue;">**Cold Wallet/Hot Wallet :**</mark> A cold wallet is an offline cryptocurrency wallet, while a hot wallet is connected to the Internet.

<mark style="color:blue;">**NFT (Non-Fungible Token) :**</mark> A type of cryptographic token on a blockchain that represents a unique asset.

<mark style="color:blue;">**Layer 2 :**</mark> Solutions developed to increase the scalability of a blockchain by processing transactions outside of the main blockchain.

<mark style="color:blue;">**KYC (Know Your Customer) :**</mark> A regulatory process where businesses verify the identity of their customers, often used in the financial sector.

<mark style="color:blue;">**AML (Anti-Money Laundering) :**</mark> Procedures, laws and regulations designed to prevent individuals from disguising illicit funds as legitimate income.

<mark style="color:blue;">**DeFi (Decentralized Finance) :**</mark> Financial services built on blockchain systems that operate without central authorities.

<mark style="color:blue;">**DEX (Decentralized Exchange):**</mark> An exchange that allows users to carry out cryptocurrency transactions directly with each other without an intermediary.

<mark style="color:blue;">**Tokenomics:**</mark> A term that describes the economic aspects of a new token, including its distribution, utility, and economics.

<mark style="color:blue;">**Liquidity Pool :**</mark> A pool of funds locked in a smart contract used to facilitate trading on a DEX, by providing liquidity.

<mark style="color:blue;">**Oracles :**</mark> Third-party services that provide external data to a blockchain or smart contract.

<mark style="color:blue;">**Fiat :**</mark> Traditional currency, such as the euro or the dollar, issued by governments.

<mark style="color:blue;">**Altcoin :**</mark> Any token or cryptocurrency that is not Bitcoin&#x20;

<mark style="color:blue;">**Whitelist :**</mark> A list of authorized participants, often used in the context of an ICO or token launch.

<mark style="color:blue;">**Bear Market/Bull Market:**</mark> Terms used to describe the trend of a market. A bear market indicates a downward trend, while a bull market indicates an upward trend.

<mark style="color:blue;">**ATH (All-Time High) :**</mark> The highest price ever reached by a cryptocurrency.

<mark style="color:blue;">**FUD (Fear, Uncertainty, Doubt) :**</mark> A term used to describe a strategy of manipulating the market by spreading negative information, often false or exaggerated.

<mark style="color:blue;">**HODL :**</mark> A popular term in the cryptocurrency community, meaning to hold an investment rather than sell it, even during times of volatility.

<mark style="color:blue;">**Scalability :**</mark> The ability of a blockchain to handle an increasing volume of transactions.

<mark style="color:blue;">**Seed Phase:**</mark> The initial funding phase of a project where client can pre order utility token before their official launch with a discount & vesting .

<mark style="color:blue;">**Token Burn:**</mark> The permanent destruction of tokens to reduce supply and potentially increase the value of remaining tokens.

<mark style="color:blue;">**Wallet Address:**</mark> A unique string of characters that represents the destination for a cryptocurrency transaction.

<mark style="color:blue;">**Whale:**</mark> An individual or entity that holds a large amount of cryptocurrency, capable of influencing the market.

<mark style="color:blue;">**2FA (Two-Factor Authentication) :**</mark> A security measure where the user must provide two separate forms of proof of identity before accessing an account.

<mark style="color:blue;">**51% Attack :**</mark> 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.

<mark style="color:blue;">**Cold Storage :**</mark> Offline cryptocurrency storage for increased security.

<mark style="color:blue;">**Custodial/Non-Custodial Wallet :**</mark> A wallet where the private key is managed by a third party (custodial) or directly by the user (non-custodial).

<mark style="color:blue;">**DApps (Decentralized Applications) :**</mark> Applications running on a P2P network of computers rather than on a single centralized computer.

<mark style="color:blue;">**Gas Limit :**</mark> The maximum amount of gas a user is willing to spend for a transaction on Ethereum.

<mark style="color:blue;">**Hash Rate :**</mark> The speed at which a computer completes an operation in the cryptocurrency mining process.

<mark style="color:blue;">**Mainnet :**</mark> The main network of a blockchain where the actual transactions occur.

<mark style="color:blue;">**Market Cap:**</mark> The total market capitalization of a cryptocurrency, calculated by multiplying the current price by the total number of coins in circulation.

<mark style="color:blue;">**Multisig:**</mark> A security feature that requires multiple signatures to authorize a cryptocurrency transaction.

<mark style="color:blue;">**On-Chain:**</mark> Refers to transactions or activities that take place directly on the blockchain and are permanently recorded on the network.