Glossary of Crypto Terms

When a single entity gains control of more than half of a network's mining or staking power, potentially allowing them to manipulate transactions or spend coins twice.

A design that lets crypto wallets behave more like programmable accounts, supporting features like sponsored fees and recovery.

A blockchain design where addresses work like bank accounts with running balances. Used by Ethereum, as opposed to Bitcoin's UTXO model.

The number of unique blockchain addresses that sent or received transactions in a given time period.

Polygon cross-chain settlement layer, designed to let separate chains share liquidity and security.

A Solana consensus upgrade that replaces Proof of History and TowerBFT with two new components, Votor and Rotor. It targets transaction finality of roughly 150 milliseconds, down from the current 12.8 seconds. Mainnet activation is expected by end of 2026.

Any cryptocurrency other than Bitcoin. Short for alternative coin. Includes everything from Ethereum to the smallest new project.

A category of investments sharing similar characteristics and market behavior, like stocks, bonds, or crypto.

A blockchain-as-a-service platform from Ava that provides managed node deployment, custom chain hosting, and enterprise tools for building on Avalanche.

A formal process for external contributors to propose changes to the Avalanche protocol. The first seven community proposals were implemented during 2024.

A consensus protocol that uses repeated random sampling of validators to reach agreement on transactions. It achieves sub-second finality by relying on probabilistic voting rather than a single leader or fixed committee.

The December 2024 Avalanche protocol upgrade that converted subnets into sovereign Layer 1 chains and reduced deployment costs by approximately 99.9 percent.

AvalancheGo is the main Avalanche node software, developed and maintained by Ava Labs, that validators run to participate in consensus and help operate the Avalanche network.

The protocol-set minimum transaction fee required on some blockchains

A prolonged period of declining prices, typically a drop of 20% or more from recent highs.

The difference between the highest price a buyer will pay and the lowest price a seller will accept. A smaller spread indicates better liquidity.

A bundle of transactions that are verified together and added to the blockchain as a single unit. Each block is cryptographically linked to the one before it.

New coins created and given to miners or validators each time they successfully add a block of transactions to the blockchain.

New coins created and given to miners or validators as compensation for securing the network.

A chain of data blocks linked together cryptographically. Each block contains a batch of transactions and a reference to the previous block, creating a permanent record.

A tool that connects two separate blockchains and allows assets or data to move between them.

A program that pays independent researchers to find and report security vulnerabilities. Usually offered alongside formal audits as part of a project's security strategy.

BlackRock’s tokenized money market fund that gives qualified investors on-chain access to U.S. dollar yield across several blockchains.

A prolonged period of rising prices and general optimism in the market.

A process that permanently removes coins from circulation by sending them to an inaccessible address, reducing total supply.

The ability of a network to process any valid transaction regardless of who sends it or what it contains. No single party or group can block or reverse transactions.

Commodity Futures Trading Commission: the U.S. agency that regulates commodity markets, including Bitcoin.

The practice of tracing and examining blockchain transactions to identify patterns, link addresses to real-world identities, or flag suspicious activity. Also called blockchain analytics.

When a blockchain diverges into two separate versions, either temporarily (due to a bug) or permanently (due to a contentious hard fork).

A recorded summary of a blockchain’s recent state, sometimes posted to another chain to help anchor or verify its history.

The number of coins currently available and trading in the market, excluding any that are locked, burned, or not yet created.

Proposed U.S. digital asset legislation that would clarify SEC and CFTC oversight of crypto markets, including how digital assets are treated under commodities and securities laws.

Having multiple independent software implementations running a blockchain network, so a bug in one client does not take down the entire network.

A vesting arrangement where a large block of tokens becomes unlocked on a specific date rather than being released gradually. Cliff unlocks can create sudden sell pressure when team, investor, or insider tokens become liquid.

The complete collection of source code that powers a software project. In cryptocurrency, a project’s codebase may include the code for its protocol, nodes, smart contracts, wallets, and related tools.

A privacy technique combining multiple users' transactions into one, making individual payments harder to trace.

A compliance-focused crypto platform that helps digital asset projects run token sales, distributions, and related launch processes.

Keeping cryptocurrency in a wallet that is not connected to the internet, protecting it from hacking. Often a hardware device or paper wallet.

In regulatory terms, an asset classified as a basic good like gold.

A regulatory classification treating a digital asset like gold or oil rather than a stock or bond. Assets classified as commodities typically face less restrictive oversight than securities.

Each new block added to the blockchain after a transaction is included. More confirmations mean greater confidence that the transaction is permanent. Bitcoin convention is to wait for six confirmations.

How long a blockchain's consensus mechanism has operated without a successful exploit. A longer track record in hostile conditions provides stronger evidence of security than theoretical proofs alone.

The method a blockchain uses to agree on which transactions are valid. Different mechanisms make different trade-offs between speed, security, and decentralization.

The primary programmers responsible for writing, reviewing, and maintaining a cryptocurrency project's main software. Their number and activity level are indicators of a project's health.

A digital currency using cryptography and a decentralized network instead of a central authority like a bank.

Secure storage and management of cryptocurrency assets.

Secure storage and management of cryptocurrency by a regulated third party on behalf of institutional or individual investors.

Decentralized Autonomous Organization. A governance structure run by smart contracts and community votes rather than a central authority.

Decentralized applications. Software that runs on a blockchain network rather than a centralized server, giving users more control over their data and interactions.

The distribution of control across many independent participants rather than a single authority. More decentralization generally means more resistance to censorship and manipulation.

Decentralized applications, or dApps, are apps that use blockchain smart contracts for their core functions, reducing reliance on a single company-controlled server.

A trading platform that operates through smart contracts allowing users to trade cryptcurrencies directly with each other without having to rely on a centralized entity.

A design approach where a cryptocurrency hides transaction details automatically for all users, without requiring any extra steps. Monero is the most well-known example of default privacy.

Decentralized Finance. Financial services like lending, borrowing, and trading built on blockchain technology, operating without traditional banks or brokers.

A decrease in the total supply of coins, usually taken out of circulation through burning mechanisms. When more coins are burned than created, the supply is deflationary.

Describes a coin whose total supply decreases over time, typically through a burn mechanism that permanently removes coins from circulation.

The removal of a cryptocurrency from an exchange, preventing users of that exchange from buying or selling it there.

A type of finality where a transaction is guaranteed to be permanent once confirmed by the protocol. Like a signed contract that is immediately binding.

A US regulatory designation for cryptocurrency assets treated similarly to commodities like gold, overseen primarily by the CFTC.

A legal ruling that permanently ends a case, preventing the same claims from being filed again in the future.

How finely a cryptocurrency can be split into smaller units. Bitcoin, for example, is divisible to eight decimal places (one hundred millionth of a coin).

The risk of spending the same digital coins twice. Blockchain consensus mechanisms exist specifically to prevent this without needing a trusted central authority.

Spending the same cryptocurrency twice by manipulating the network, which proper security prevents.

Encrypted ERC, an optional token standard on Avalanche that uses zero-knowledge proofs to hide token balances and transfer amounts. It applies only to tokens issuers choose to deploy under the standard.

An Ethereum upgrade that burns a portion of transaction fees instead of paying them all to miners. This can make ETH deflationary during periods of high usage.

The predetermined rules governing how and when new coins are created and released into circulation.

Ethereum Name Service. A naming system that turns human-readable names, such as “yourname.eth,” into wallet addresses and other crypto records.

A fixed time period used by some blockchains to schedule events like reward distributions.

A technical standard for creating fungible tokens on Ethereum. Many tokens built on Ethereum follow this standard so they work consistently with wallets, exchanges, and decentralized apps.

Exchange-Traded Fund. An investment fund that trades on a stock exchange and tracks an asset or index. A Bitcoin ETF gives investors exposure to Bitcoin without holding BTC directly.

The original Ethereum blockchain continued by those who opposed the 2016 DAO hard fork, believing the chain should not have been altered.

When a cryptocurrency exchange removes a coin from its platform, reducing where it can be traded.

A financial product that tracks the price of an asset and trades on traditional stock exchanges, allowing investors to gain exposure without directly holding the underlying asset.

Ethereum node software that executes transactions, runs smart contracts, and helps maintain the network’s current state.

A cryptocurrency launch where no coins are pre-allocated to founders or investors. Everyone has an equal opportunity to acquire coins from the start.

The percentage difference between TVR's estimated fair value and the coin's current market price.

A mechanism that permanently destroys a portion of transaction fees, removing them from circulation and reducing the total supply of a cryptocurrency.

How transaction fees are collected and distributed in a network. Fees may go to miners, validators, be burned, or split among multiple recipients.

Government-issued currency like US dollars, euros, or yen. Called fiat because its value comes from government decree.

Government-issued money like USD or EUR that is not backed by anything.

A service that allows converting government-issued currency like USD directly into cryptocurrency.

The guarantee that a confirmed transaction cannot be reversed or altered after a certain point.

An independent Solana validator client developed by Jump Crypto, designed to improve performance and add client diversity.

A change to a blockchain's rules. A soft fork is backward-compatible; a hard fork creates a permanent split, potentially resulting in two separate chains and coins.

A mathematical method for proving that code follows its intended rules, reducing the risk of bugs.

A way to prove that a blockchain scaling system posted incorrect transaction results before they become final.

Evaluating an asset based on its underlying properties and design rather than price trends or sentiment.

The property where every unit of a currency is interchangeable with any other unit. A dollar is fungible because any dollar works the same as any other.

The fee paid to process transactions or run smart contracts on Ethereum. Higher network demand usually means higher gas fees.

The cost of executing operations on the Ethereum network. Gas prices fluctuate based on network demand, similar to surge pricing during busy periods.

The very first block ever created on a blockchain, marking the beginning of the network.

The ability of a protocol to continue operating smoothly if key individuals or organizations step away. The most robust systems are those where no single entity can control or disrupt operations.

A Solana feature that forwards transactions directly to the validators scheduled to create upcoming blocks, helping reduce waiting time.

A scheduled event where the block reward is cut in half, reducing the rate of new coin creation. The amount of bitcoin being produced halves roughly every four years.

A fixed maximum number of coins that can exist under the network’s rules

A major rule change that old software cannot follow, sometimes causing a blockchain to split into two networks. A major rule change that old software cannot follow, sometimes causing a blockchain to split into two networks.

The total computing power miners use to secure a blockchain. A higher hash rate generally makes attacks harder.

A functional programming language used to write much of Cardano’s core software, valued for its reliability-focused design.

A US legal standard used by courts to determine whether something qualifies as a security under federal law.

Cardano’s scaling system that processes some transactions off the main blockchain to make them faster and cheaper.

a fundraising method where a crypto project sells tokens to buyers, often before the project is fully launched.

The principle that once data is written to a blockchain, it cannot be altered or deleted. A key property for trustworthy value systems.

An Ethereum safety mechanism that gradually reduces the stake of inactive validators so the network can restore finality.

The rate at which new coins are created and enter circulation, diluting existing holders. Lower and more predictable inflation is generally more desireable for long term value.

A regulatory guidance document that explains how an agency interprets and applies existing law. It does not create new law.

A set of principles and values that guide which qualities matter most when evaluating assets.

A structured argument for why certain assets may be worth holding, based on research, priorities, and investment philosophy.

Know Your Customer. Identity verification required by financial regulations. Most cryptocurrency exchanges require KYC before allowing users to trade.

The base blockchain, such as Bitcoin or Ethereum, that records transactions and provides the network’s core security.

A secondary system built on top of a base blockchain to handle activity more efficiently while still relying on the base blockchain for final security.

A blockchain-based lending system where users can lend crypto to earn interest or borrow against their holdings.

Software that checks blockchain data without downloading the entire chain, making it useful for phones and low-resource devices.

A second-layer payment system that lets compatible blockchains process payments faster and cheaper.

The idea that the longer something has survived, the more likely it is to keep surviving.

A method of staking cryptocurrency while receiving a tradable token that represents the staked funds.

How easily a cryptocurrency can be bought or sold without significantly affecting its price. High liquidity means large trades can happen with minimal price movement.

A measure of how much of a cryptocurrency can be bought or sold near the current price without causing that price to move significantly. Deep markets absorb large trades with minimal price impact.

A real-time list of all buy and sell orders for a cryptocurrency on an exchange, organized by price. Shows current supply and demand at each price level.

Fake trading activity where someone buys and sells to themselves to create the illusion of high volume. Common on unregulated cryptocurrency exchanges.