The practice of buying and selling the same coins on different exchanges at the same time to take advantage of price differences.
Abbreviation for application-specific integrated circuit, which is an integrated circuit that is customized for a specific use. An ASIC miner is a specialized computing machine that is far more efficient for cryptocurrency mining than CPUs and GPUs.
A market in which most (or all) prices are rising.
An irreversible list of all transactions that have ever occurred on a platform.
A paper written by Eric Huges that outlines Cypherpunks’ philosophy and vision. This Manifesto was a big influence on many early cryptocurrency enthusiasts.
The limiting or decreasing of a cryptocurrency's supply, which usually drives its price up.
Inline platforms on which individuals can buy and sell cryptocurrencies.
The idea that all units in a money supply are exactly equal. Fungibility is considered to be an essential aspect of effective currencies by many economists.
The first block mined on a blockchain.
The maximum amount of money a cryptocurrency’s founders will accept while raising money in exchange for early coins on their platform.
Internet Protocol Address. A series of numbers and periods used to identify computers communicating through a network.
CEO of Bitmain, the largest distributor of cryptocurrency mining machines.
A way of distributing a new supply of a cryptocurrency. Coin or token holders are given tokens of a new cryptocurrency.
Abbreviation for Alternative Coin or any cryptocurrency other than Bitcoin.
A process or set of rules for performing a calculation or other operation. Consensus algorithms are used to verify transactions. Hashing algorithms are used to secure transactions details.
A unique, alphanumeric identifier that is used to define the destination for transferring cryptocurrencies. Coins and tokens are transferred from one unique address on a blockchain to another address.
Abbreviation for Anti-Money Laundering. Refers to the regulatory requirements of financial service providers to obtain personal information about their customers and their transactions.
Abbreviation for Application Programmer Interface. A type of toolkit that enables developers to create applications that access features and data of an operating system, application, or other service.
When one coin or token is exchanged for another coin or token without a third party. Atomic Swaps use smart contracts to automatically execute these exchanges between two parties.
A web tool available for most cryptocurrencies that allows users to search an address or ID to view its transaction history.
The amount of information that can be stored in one block of a blockchain. The Block Size limit of Bitcoin is 1MB. Blockchains with a larger block size allow for more transactions per block and can confirm more transactions at a time.
The first blockchain-based cryptocurrency. Bitcoin was launched in 2009 and remains the most influential and widely recognized decentralized coin. All other cryptocurrencies are referred to as "altcoins."
When the data stored on a blockchain reaches its capacity due to increasing numbers of users, leading to slower transaction speed.
When a supply of coins or tokens are destroyed in order to decrease the total circulation of the cryptocurrency.
A method of storing cryptocurrency offline. Keeping coins and tokens in cold storage solutions that are not connected to the internet is considered more secure than online solutions.
The computerized encoding and decoding of information that prevents third parties from accessing it. Blockchain networks use cryptography to preserve data confidentiality, integrity, authentication, and non-repudiation.
A non-physical or electronic record that has value and can be owned, licensed, or controlled. Aside from cryptocurrencies, digital assets may refer to any online account or digital file that the user has authority to access.
Digital Asset Array
A portfolio or collection of cryptocurrencies.
Bounty is an online reward program that is offered by online platforms for incentivizing positive behavior towards the company
The consensus is a way to agree if an action is valid or not on a blockchain.
Short for Decentralized Autonomous Organization. A DAO is an organization that is governed by predetermined smart contracts.
Short for Delegated Proof of Stake. DPoS is a consensus mechanism where the nodes of the blockchain vote for delegates that will confirm transactions and create the next block.
A software program that enables its users to store cryptocurrency on their personal computer.
A network in which computer programming, data, and software are spread out across more than one device. Distributed networks are designed to share resources to achieve a similar goal.
The part of the internet that is not easily accessible to the general public and requires a special software (like TOR) to access. Websites on the Darknet, such as the Silk Road, were the first to use cryptocurrencies for transactions.
Abbreviation for distributed application. A computer application that runs on a distributed computing system and is not under centralized control. Many cryptocurrencies serve as mediums of exchange for DApps.
Abbreviation for directed acyclic graph. A DAG is a ledger that stores transaction in a graph format which points in one direction and is non-circular (acyclic). DAGS are an alternative to a blockchain architecture and can be used to store data for Crypto projects. DAGs allow for multiple chains of blocks to co-exist and for network nodes to exist in parallel, as long as information is directed in the same way.
An encrypted output that is unique and cannot be duplicated. Digital signatures are important for confirming the authenticity and integrity of digital messages and documents. They are a standard aspect of most cryptographic protocols that are used in financial transactions and in other cases where it is important to detect forgery or tampering.
When the same single digital token or coin is spent more than once. The risk of double spending is a potential problem unique to digital currencies that arises because digital information can be reproduced easily. Each cryptocurrency has a consensus mechanism that confirms transactions and ensures that the same token/coin are not spent twice.
An application designed to run on a user's personal computer. It accesses a service made available by a server that is commonly located on another computer system.
Abbreviation for delayed proof of work. DPoW is a consensus mechanism that allows one blockchain to take advantage of the security and hashing power of a second blockchain.
Abbreviation for decentralized exchange. A DEX is a decentralized platform that isn't controlled by any single entity and allows users to buy and sell cryptocurrencies.
Pseudonym used by the person, or group of people, that created Bitcoin and implemented the first blockchain database. Nakamoto's true identity is unknown. He/she was active in the development of Bitcoin up until December 2010 but has not been heard from since then.
Software designed to execute a trading strategy when the owner is absent. Several crypto trading platforms have issued their own tokens that offer holders benefits.
A digital record used to identify the moment in time that a transaction occurred.
Abbreviation for Transmission Control Protocol/Internet Protocol. The communication protocols used to interconnect network devices on the internet.
Russian-Canadian programmer and writer primarily known for being the co-founder of Ethereum and a co-founder of Bitcoin Magazine.
Cryptocurrency address that contains specific words and phrases instead of random alphanumeric strings. Similar to vanity license plates; an address that you can choose yourself.
Technical document outlining a project’s purspose, vision, and technology.
Abbreviation for User-Issued Assets; tokens that can be created on the BitShares network to help facilitate business models for certain types of services. Custom tokens can be created to allow users to hold and trade within certain restrictions.
Bitcoin’s ticker symbol.
A single transaction that combines multiple transactions into one in order to reduce fees and increase efficiency.
A network of activists that advocated for the widespread use of strong cryptography and privacy-enhancing technologies as a route to social and political change. Cypherpunks were heavily involved in the early development of Bitcoin.
A type of loan where a client stakes an asset against the funds they are receiving.
A currency based on decentralized ledgers that relies solely on its own technology to function. Although most coins are blockchain-based, some use other decentralized technologies to maintain records and confirm transactions.
Abbreviation for Decentralized Autonomous Organization. Sometimes called a decentralized autonomous corporation (DAC), is an organization that is not controlled by a central entity and is governed by smart contracts.
Delegated Byzantine Fault Tolerance (dBFT)
A consensus mechanism introduced by the Chinese Crypto project NEO. dBFT allows token holders to vote for professional nodes that confirm transactions and create the next blocks. If two thirds or more of the nodes agree, that block is written onto the chain.
A measure of how difficult it is to find a new block. The Bitcoin network has a global block difficulty. The difficulty is adjusted periodically as a function of how much hashing power has been deployed by the network of miners.
Decentralized Identity Foundation (DIF)
A group of organizations working together to create a universally-accepted identity verification system. The DIF uses blockchain to create a system that doesn't require a centralized authority for identification purposes.
The process of transforming data into unrecognizable code that can only be decoded with the exact decryption key.
Ethereum Virtual Machine (EVM)
A testing environment on the Ethereum network that developers use to execute smart contracts and create DApps.
The predominant technical standard used for for token implementation and smart contracts on the Ethereum blockchain. Others include ERC721 and ERC888.
Government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issues it. The US Dollar, Euro, and Chinese Yuan are all fiat currencies.
An essential aspect of any currency that all units in the supply are equal. The ability of all units in a money supply to be interchanged
A change in a cryptocurrency’s underlying code that does not make it incompatible with the previous version.
A change in a cryptocurrency’s underlying code that makes it incompatible with the previous version. Bitcoin Cash is a hard fork of the original Bitcoin blockchain.
A fee which must be paid to execute network transactions on a blockchain. Ethereum Gas is a unit that measures the amount of computational effort that it will take to execute certain operations.
The process of intermittently decreasing the block reward given to cryptocurrency miners by 50%. Halving can have long-term effects on the price of BTC.
A consensus mechanism that combines elements of multiple other consensus protocols, such as Proof of Stake and Proof of Work algorithms.
The encrypted value generated by a blockchain algorithm that does not resemble the original data related to the transaction it represents. Hashing is an essential part of confirming transactions on proof of work blockchains.
The number of hashes per second the Bitcoin network is performing. Considered a general measure of the processing power of the network.
Abbreviation for Internet of Things. The system of interrelated computing devices and digital machines that can transfer data over a network without requiring human interaction. Potential solutions for managing the transfer of value and information on these networks involve creating blockchains for IoT.
A record that cannot be changed. Immutability is an essential aspect of a blockchain. It allows users to trust that the data recorded in the blockchain cannot be altered.
The payment given to a miner or staker for securing a blockchain that uses a given consensus mechanism.
Unit used to represent smaller Bitcoin amounts of Bitcoin currency. 1 Bit is equal to 1/1,000,000 of a Bitcoin. There are 1 million bits in 1 Bitcoin.
Abbreviation for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Zk-SNARKs is a form of zero-knowledge cryptography that enables users to prove possession of certain information, e.g. a secret key, without revealing that information. The technology was first used by ZCash to shield transaction information from uninvolved parties.
Abbreviation for eXtensive Business Reporting Language. XBRL is a common framework for reporting business information. XBRL makes extracting useful information from a large body of data easier.
Native currency of the Monero network.
The filename that stores public and private keys for a full blockchain node. Wallet.dat files are located in the blockchain's data directory and are usually encrypted with a password.
A list of registered and approved participants in a funding event or ICO. Whitelists are used to exclude non-accredited investors in order to better comply with regulations and manage limited supplies.
Device or software used to store, send, and receive cryptocurrencies like Bitcoin. Wallets store the public and/or private keys that are used to track ownership and make transactions on a blockchain. In order to use Crypto, you'll need to use a Crypto wallet.
An individual capable of making large trades that can significantly affect the market.
An individual or group that invests in an emerging project hoping to earn a large return on their investment when it succeeds.
A measure that describes the degree of variation of an asset's trading price over time. Often measured by the standard deviation of logarithmic returns. If the price stays relatively stable, the asset has low volatility. A highly volatile asset is one that more frequently hits new highs and lows
Trading symbol and acronym for the U.S. Dollar Tether stablecoin.
People with limited or no access to an account at a bank, financial institution, or similar money-related service. Many blockchain projects are specifically designed to provide services for the unbanked.
PoI is a consensus mechanism introduced by NEM. Similar to PoS, PoI requires nodes to stake currency to be eligible to create blocks, and takes into account the user's involvement in the network in choosing which node will confirm transactions on the blockchain.
The total number of blocks confirmed in a blockchain's history. The measurement is used to compare copies of a blockchain to determine if a given version is up to date.
Blocks created by miners in part of a proof-of-work consensus blockchain. A candidate block broadcasts its hash to check if it is valid. The wining candidate block with a valid hash then creates the next block in the network.
Proof of Stake (PoS)
A consensus mechanism that involves having users stake coins to secure (mine) the network. PoS is used used to confirm transactions and add new blocks to the chain. It was created as a more energy efficient alternative to the original algorithm used in Bitcoin, called Proof of Work.
The main blockchain that may be connected to sidechains or subchains.
Proof of Work (PoW)
The consensus mechanism introduced by Bitcoin. PoW requires miners to compete against each other to add new block and earn rewards. It creates an incentive system that requires a not-insignificant but feasible amount of effort in order to deter attacks.
Something that is done or written under a unique identifier that is different from a user's real name. Most cryptocurrecnies are pseudonymous, where the coin holder's address serves as their pseudonym.
Any cryptocurrency that places a strong emphasis on privacy and added anonymity of transactions between users. Examples of privacy focused coins include Monero, Dash, and ZCash.
A form of cryptography that allows a user to access information that has been encrypted and broadcasted with a public key. Private keys are an integral aspect of Bitcoin and other cryptocurrencies. Users control their coins with their private keys.
A data structure usedto en code blockchain data more efficiently and securely. Merkle Trees are used to allow users to verify a specific transaction without downloading the entire blockchain.
A blockchain network that requires access to be part of. A permissioned system is a private and closed system. They differ from public and private blockchains in that certain actions can only be performed by certain identifiable participants.
A physical piece of paper containing a private key, a public key, and often corresponding QR codes. Paper wallets are considered an unsafe method of storing cryptocurrency and should only be used with extreme caution.
A cryptographic code that allows a user to receive cryptocurrencies into their account. The public key is used together with the private key to ensure the security of blockchain transactions.
A rapid rise in a cryptocurrency’s price.
A public blockchains (like Bitcoin) that anyone can generate an address and transact on.
In online gambling provably fair algorithms are algorithms that can be analyzed and verified for fairness by any user. Online casinos can combine the increased transparency of blockchain with provably fair games to improve the gaming experience.
Pump and Dump
When a cryptocurrency’s price increase and then quickly crashes. Pump and dumps are often coordinated manipulations of the market by groups of profit-driven individuals.
Proof of Burn (PoB)
A consensus mechanism for verifying a blockchain in which miners send coins to an unspendable address. PoB cryptocurrencies work by burning Proof of Work mined cryptocurrencies, so the ultimate source of scarcity remains the proof-of-work-mined "fuel".
Phishing is the fraudulent attempt to obtain sensitive information by disguising oneself as a trustworthy entity in an electronic communication. Victims are fooled into sharing their passwords, usernames, cryptocurrency keys, or credit card details.
An unverified block that is no longer a part of the original blockchain that is accepted by the majority of miners.
The Proof-of-stake (PoS) consensus mechanism that is used by Cardano. Ouroboros operates on Cardano's two layer protocol: a settlement layer and a control layer. The settlement layer is designed to perform accounting functions, while the control layer is tasked with running smart contracts.
Abbreviation for Over the counter exchange. Market participants trade stocks, commodities, currencies or other assets directly between parties and without a central exchange or broker. Over the counter markets do not have physical locations; instead, trading is conducted electronically.
Software whose original source code is made freely available and may be redistributed and modified.
A third-party source of data or information supplied to a blockchain so that smart-contracts can be executed. Incoming data from an oracle is analyzed by the smart contract executes a specific series of transactions depending on the information received.
Off Blockchain Transactions
Transactions occurring on a cryptocurrency network which move the value outside of the blockchain. Examples of Off-chain transactions include exchanging private keys to an existing wallet instead of transferring funds, or using a third-party to transact. Depending on the method used, off-chain transactions may eventually have to be recorded on-chain.
An investor that does not have a high net worth or high salary, and is not elgiible for certain investment opportunities.
The effect described in economics and business when the value of a product or service increases according to the number of others using it. Because of the network effect, blockchain based assets such as cryptocurrencies become more useful as more people use them.
Abbreviation for "number only used once." A nonce is an arbitrary number that is used only once in a cryptographic message to ensure that old communications cannot be reused in replay attacks. In blockchain, it refers to the first number a blockchain miner needs to discover before solving for a block in the blockchain. Miners use computing power to guess the nonce as part of Proof of Work, and the miner who is able to find the value is awarded the block and paid a reward.
A computer that runs a blockchain's software, validates transactions, and carries out other tasks to operate the network.
Near-Field Communication (NFC)
Protocol that enables two devices to communicate wirelessly, without internet connection, when they are placed right next to each other. For example, smartphones or smart watches can be used for payments.
A cryptocurrency originally forked from bitcoin software that allows data (and transactions) to be written onto its blockchain. Namecoin's primary use is as the censorship-resistant top level domain ".bit," which is similar to ".com" or ".net" domains but is independent of ICANN, the main governing body for domain names.
Using borrowed money to buy and sell assets. The practice includes buying an asset where the buyer pays only a percentage of the asset's value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor's account act as collateral.
A buy or sell order to be executed immediately at the current market prices. As long as there are willing sellers and buyers, market orders are filled. They are used when certainty of execution is a priority over the price of execution.
The total value of a cryptocurrency's supply. It is calculated by multiplying a currency's market price by the number of coins/tokens that have been issued.
The process of adding transaction records (blocks) to a blockchain's ledger of past transactions. Miners confirm transactions and help maintain the network in exchange for block rewards.
A demand by a broker or lender that an investor deposit further cash or assets to cover possible losses.
Also known as micropayments, microtransactions are very small payment that are commonly used in blockchain-based content management and gaming projects.
Abbreviation for multi-signature. A feature that requires several keys to authorize a single transaction. Multisig wallets and other tools are used to avoid a single point of failure and for dividing responsibility among separate parties.
A device running the full software of a cryptocurrency that executes more tasks than a regular nodes. Masternodes play a more significant role in maintaining the network. Some blockchain networks may require an initial collateral to be staked in order to operate a masternode.
A group of cryptocurrency miners that combine their computational resources over a network to increase their collective mining power. They split rewards evenly based on each person's mining contributions.
Machine Learning (ML)
An application of artificial intelligence (AI) that enables systems to automatically learn and improve from experience without being explicitly programmed. ML programs access data and learn patterns and make inferences.
Launched in July 2010, Mt. Gox was based in Tokyo, Japan. By 2013, it handled 70% of all bitcoin transactions worldwide. In 2014, 850,000 bitcoins, worth an estimated $450 million at the time, were stolen from the exchange, forcing the company to declare bankruptcy.
A blockchain network that uses a multilayered architecture to address technical problems related to low transaction rates and scalability. Multilayered blockchains often devote one layer to data storage, and a secondary layer to confirming transactions and other purposes.
Chrome broswer extension that enables users to store and transact Ethereum and other ERC-20 tokens.
The process of simultaneously mining two different cryptocurrencies that have the same consensus algorithm. Merged mining allows cryptocurrencies to increase the hashing power behind their network by bootstrapping off of larger networks.
The main version of a blocckhain protocol that uses currency with real world value to transact. Most Crypto projects test and demonstrate the capabilities of their projects to investors and users in a safe environment called a “testnet.” A cryptocurrency is generally considered to be “live” after the first Mainnet block is mined.
Sub-unit of Bitcoin: 1000 mBTC = 1 BTC.
Transactions that are combined by a third party to make them more secure and anonymous.
A pattern of letters, ideas, or words that assist in remembering something. Mnemonics are ommonly used to access accounts or wallets.
The process by which new coins are created on a Proof of Stake (PoS) blockchain to reward miners for verifying transactions and creating a new block.
A computer used for mining cryptocurrencies. A rig can be a dedicated computer built and operated specifically for mining or it could also be used for other purposes.
A popular online wallet service that supports Ether and a large variety of ERC20 tokens.
A payment protocol that operates on top of a blockchain-based cryptocurrency (like Bitcoin). It enables fast transactions between participating nodes and is considered a possible solution to Bitcoin's scalability problem.
Purchasing an asset with the expectation to sell at a higher price in the future and realize a profit.
Selling an asset before buying it, with the intent to repurchase the stock at a lower price and realize a profit.
The measure of how quickly an asset can be purchased or sold without causing a drastic change in its price. An asset is liquid when it can be easily bought or sold in a market.
Also known as margin trading, it allows the trader to open positions much larger than their own capital by borrowing funds from the trading platform. Leverage refers to the ratio of the trader's funds to the size of the broker's credit.
An exchange specifically created to avoid the transparency of public exchanges. Usually intended to ensure the liquidity for large trades by concealing their details from the public until after they are executed. Dark pools are used by investors that want to trade a large order without influencing the price of the asset on public exchanges.
A group of investors and financial institutions that buy and sell large blocks of assets. Although these assets may be traded on other exchanges, liquidity pools are generally used to execute a large order without influencing the price of the asset on public exchanges.
Abbreviation for Know Your Customer. Refers to the set of personal information that financial service providers must gather to comply with AML (Anti Money Laundering) laws.
Kimoto Gravity Well (KGW)
An algorithm that adjusts the mining difficulty of a PoW bockchain network so that all miners are given a better chance at validating transactions. KGW smoothes out the re-targeting of mining resources to make it difficult for mining pools to gain an unfair advantage in receiving block rewards.
Private payment tool that is used on the Komodo network. Jumblr enables Komodo users to make more private and anonymous transactions by mixing individual payments in a variety of currencies.
Abbreviation for Initial Coin Offering. A fund raising event, similar to an IPO, used by Crypto projects to raise capital to launch a new DApp or service. Coins/tokens are sold to the public in exchange for another currency.
Invisible Internet Project (I2P)
An anonymous network layer that allows for censorship-resistant, peer to peer communication. 2P is an anonymizing network that focuses on secure internal connections between users.
Abbreviation for Initial Public Offering. A fund raising event used by companies to raise capital. With an IPO, a company can sell shares to investors on public markets.
The measure of how difficult it is for an asset can be purchased or sold without causing a drastic change in its price. An asset is illiquid when it cannot be easily bought or sold due to a lack of buyers or sellers in a market.
Inflation is the measure of the overall growth in the money supply minus the growth in the total value of goods and services in an economy, or network.
A consensus mechanism and distributed ledger technology that is an alternative to a blockchain. The algorithm was created by Leemon Baird, CEO of Swirlds. A hashgraph does not require miners and uses directed acyclic graphs for time-sequencing transactions, without bundling them into blocks.
The mining power that a device uses to run and solve hashing algorithms that generate new cryptocurrencies and validate transactions on a blockchain network. Similar in concept to a car's Horse Power.
A Crypto wallet that is connected to the internet and is used to send and receive coins/tokens. Hot wallets are considered less secure than cold wallets.
A computer programming language used to develop some cryptocurrencies, such as Cardano.
A physical device that stores private keys for cryptocurrencies.
Graphics Processing Unit (GPU)
A specialized electronic circuit designed to better display images on devices. GPUs are used in mobile phones and personal computers. Their processing power can be used to mine some cryptocurrencies.
An open-source database used by developers to create and share computer code with a large community. The number of updates to a project's Github is sometimes used as a measure of its actual use and future prospects.
A predetermined block reward that is paid to the founders of a cryptocurrency as part of the mining process. Several cryptocurrencies, including Zcash have consensus mechanisms with a founders’ reward.
The reward given to users that stake their coins and participate in the consensus process of Proof of Stake networks. Forging is the equivalent of mining in a Proof of Work network.
A term used to describe the potential of blockchain and cryptocurrencies to remove many of the inefficiencies in centralized financial systems.
A website or App that gives users small amounts of cryptocurrency intermittently or for completing a task, such as a survey or download.. Faucets are used as a distribution method for Crypto projects, and typically earn money by advertising other services.
Abbreviation for exchange traded fund. An ETF is a group of assets that can be bought or sold as a single asset. They allow investors to diversify and gain exposure to a a group of assets in an efficient way.
The native cryptocurrency generated by the Ethereum platform and used to compensate mining nodes for performing computations. ETH is required in order to send transactions or execute smart contracts on the Ethereum network.
Distributed or delegated away from a central, authoritative location or group. Decentralization is a defining characteristic of blockchain networks.
Artificial Intelligence (AI)
The branch of computer science that deals with the simulation of intelligent behavior in computers. AI algorithms are designed to learn from their environments and carry out increasingly complex tasks. Blockchain combined with artificial intelligence can be used for a variety of purposes.
An investor or business entity who is allowed to buy and sell securities that may not be registered with financial authorities and are not available to the general public. Access to certain investment opportunities may be restricted to those that meet certain requirements related to income, net worth, citizenship, or professional experience
A business license issued by the New York State Department of Financial Services to companies seeking to engage in activities involving cryptocurrencies with clients in the state of New York. The license is required for performing a variety of financial transactions related to digital currencies.
Rewards offered by companies to individuals who find and report flaws in their underlying software. Several Crypto projects use bug bounties to provide incentives for talented computer programmers to devote time and effort into improving their code.
Byzantine Fault Tolerance (BFT)
A condition describing a distributed computing system, where specific components may fail and there is imperfect information about that failure. The term gets its name from an allegory called the "Byzantine Generals Problem," where different generals must agree on a concerted strategy, but some of these generals are unreliable. In blockchain, a system is Byzantine Fault Tolerant, if it can reach consensus even when some of the network's nodes are dishonest.
A measure used in Proof of Stake networks to calculate the value of a node's holdings during a given hashing period. Coin age can be used to help gauge transaction legitimacy. Peercoin is a PoS that uses coin age to help determine which node will add a block.
Abbreviation for Central Bank Digital Currency. CBDCs are issued by central banks and have the same backing as fiat currency.
A digital record of transactions that is distributed, immutable, and transparent. Records containing the details of individual transactions are grouped into blocks, and these blocks are then linked together in ledger, referred to as the chain. Blockchains are used for recording transactions made with cryptocurrencies, such as Bitcoin, and have many other applications. Transactions are verified with a consensus protocol, such as Proof of Work.
Hashed Timelock Contracts (HTLC)
Hashed Timelock Contracts are used to create smart contracts that enable conditional payments They require that the receiver of a Crypto payment acknowledges the receipt before a deadline, by generating cryptographic proof of payment. If proof of receipt is not sent, they forfeit the ability to claim the payment, and it's returned to the sender.
VASP is short for virtual asset service provider. Refers to any entity that provides exchange or custodial services for virtual assets.
A 51% attack occurs when a network's transaction ledger is maliciously altered by a single entity or group that controls more than half of the computing power.
Abbreviation for Two Factor Authentication. A protective measure that uses two independent mechanisms to verify the identity of a user.