Glossary

The words crypto forgets to explain.

Short definitions, useful examples, and the confusions worth clearing up.

B

BlockchainA blockchain is a replicated ordered record. Learn why broadcasting a transaction, including it in a block and reaching finality are different.Blockchain bridgeA system that communicates or represents assets and messages across otherwise separate networks.

F

Fully diluted valuationA price-times-total-or-maximum-supply estimate used to show the scale implied by future token supply.

G

Gas feeEthereum gas fees explained: gas used, gas limit, effective price and fee caps are different. A higher gas limit is not a faster-transaction setting.

L

Layer 2A system that processes activity beyond a base blockchain while deriving part of its settlement or security from it.LiquidityThe practical ability to trade an asset in size without moving its price sharply.

M

Market capitalizationA price-times-circulating-supply estimate that does not measure cash available for every holder to exit.

P

PhishingA deception that tries to make someone reveal a secret or authorize an action they did not intend.Private keyA secret value used to create digital signatures that authorize actions for a blockchain account or output.Public addressA network-specific identifier used as a destination or reference for blockchain activity.

S

Seed phraseA human-readable recovery representation commonly used to derive a wallet’s root secret and many keys.Self-custodyA custody arrangement in which the user controls the keys or authorization needed to move assets.SlippageThe difference between an expected trade price and the price at which the trade actually executes.Smart contractCode and state at a blockchain address that execute according to network rules when called.StablecoinA crypto asset designed to track a reference value through reserves, collateral, redemption, or incentives.

T

Token approvalAn onchain permission allowing a specified spender to transfer up to an allowance of tokens.