THE MOST POPULAR digital currency could potentially hit several local

CRYPTOCURRENCY TERMS AND PHRASES highs before rising to a new all-time high.
Bear/Bearish
CRYPTOCURRENCY "Bears" believe that an asset, for example a digital
Due diligence is important when looking into any asset currency, will decline in value. Another way of putting
class. However, doing one's homework may be even this is that if a trader thinks a cryptocurrency will
more important when it comes to digital currency, as depreciate, their sentiment surrounding the digital
this asset class has been around for far less time than asset is "bearish." In many situations, traders will
more traditional assets (like stocks and bonds) and make use of this expectation by taking a short position
comes with substantial uncertainty. on an asset, meaning that they will make a wager that
will pay off should the asset in question fall in value.
Are you prepared to get to know cryptocurrency Blocks
trading terms and some basic cryptocurrency terms Many digital currencies make use of blocks, which
no human being can live without? contain transactions that have been confirmed and
then combined together.
Conducting the proper research on cryptocurrencies
may require a would-be investor to explore many BLOCKCHAIN
areas. One area in particular that could prove helpful The blockchain, which is a distributed ledger system,
is simply learning the basic industry terminology. consists of a series of blocks. These blocks contain
Certain lingo is highly unique to digital currency, verified transactions. The blockchain was designed to
making it unlikely that traders would have picked it up be not only decentralised, but also immutable,
when studying other asset classes like stocks, bonds meaning that entries could not be erased once placed
and commodities. on this distributed ledger. The idea of the blockchain
was first introduced when the bitcoin white paper was
This article will explore the more popular terms and released in late 2008.[3]
phrases relevant to cryptocurrencies, providing a
strong foundation for those interested in exploring BULL/BULLISH
this innovative asset class. If a trader believes that an asset will rise in value, he
or she is a "bull." When an investor has this optimistic
ADDRESS expectation of an asset's future bull, this frame of
In digital currency, an address is basically a destination mind is described as "bullish."
where a user sends and receives digital currency. In a
way, it is similar to a bank account.[1] These CONSENSUS
addressses usually include a long series of letters and The network for a digital currency reaches consensus
numbers. when the network's nodes agree that a transaction
took place. This agreement is crucial if the varying
ALTCOIN network participants (nodes) are to have the same
An altcoin is a digital currency other than bitcoin. information. In other words, consensus is crucial to
There were more than 1,000 altcoins listed on data distributed ledger systems.
source CoinMarketCap at the time of this
writing. Another way of describing the term "altcoin" CRYPTOCURRENCY
is referring to it as an alternative protocol asset, A cryptocurrency is merely a currency that relies on
meaning that it follows a protocol (set of rules) that's cryptography. Bitcoin, for example, leverages
different than that of bitcoin. cryptography in order to verify transactions.

ARBITRAGE CRYPTOGRAPHY
In crypto, arbitrage refers to taking advantage of the Cryptography is basically the process of encoding and
price difference between two different exchanges. If decoding information so that would-be observers are
bitcoin is selling for £8,950 on one exchange and unable to understand the information being sent.
£9,000 on another, a trader can buy the digital
currency on the first exchange and sell it on the DDoS ATTACK
second for a modest profit. A distributed denial of service (DDoS) attack takes
place when multiple parties work together to
ATH overwhelm a system by inundating it with either
"ATH" is an abbreviation of "all-time high." This term requests for information or malicious data. Basically,
can be quite helpful to know for tracking the digital the nefarious parties involved in such an attack want
currency markets. These assets are so volatile, so to prevent a resource, such as a server, from being
keeping their ATH in mind can prove valuable. A able to provide some specific service, such as serving a
web page.
1
 participants may spread misleading or inaccurate
Some digital currency exchanges have suffered DDoS information in order to cause an asset's price to
attacks from nefarious parties looking to cripple these decline. A trader may want an asset's price to fall so
marketplaces and hopefully take advantage of this they can either short it successfully or buy in at a
vulnerability to steal cryptocurrency. While efforts to lower price and increase their chance of generating a
steal digital assets may not work, an exchange's users gain.
could become unhappy simply because they cannot
make trades through the marketplace. HARD FORK
A hard fork is a type of fork that creates a permanent
DISTRIBUTED LEDGER change to a digital currency's protocol, or
A distributed ledger is a system of recording rules.[7] When one of these forks takes place, it
information that is simply distributed, or spread results in a whole new blockchain, which will not
across, many different devices. The blockchain, for accept any blocks mined using the old rules.
example, is a distributed ledger that was originally
created to keep track of all bitcoin transactions. The old chain can survive, however, leading to a
scenario where both the old and the new blockchains
ESCROW can continue.
Escrow refers to a third-party holding financial
resources on the behalf of other parties. A third-party HODL
would hold funds in escrow when the other entities Cryptocurrency investors developed the term "HODL,"
involved in a transaction may not trust each other. which stands for "hold on for dear life." The acronym
originally came from a misspelling of the word
FIAT CURRENCIES "hold."[9] Digital currencies can be highly volatile, so
Fiat currencies are currencies that have value because when they start experiencing significant price
they are minted by a central bank. Fiat means "by fluctuations, some market participants state that they
decree," and these currencies have value because should simply "HODL."
some central authority has decreed that they have
monetary value. Examples of fiat currencies include INITIAL COIN OFFERING
the British pound, euro and Japanese yen. An initial coin offering (ICO) represents the first time
that an organisation offers digital tokens to the public
EXCHANGES in an effort to raise money. Companies frequently
Exchanges are basically just marketplaces where hold these offerings so they can finance projects.
traders can make digital currency transactions. If a These digital token sales have often been likened
person wants to buy bitcoin, going to an exchange is to initial public offerings (IPOs), where companies sell
the fastest way to accomplish this objective. more traditional assets such as stocks and bonds in
order to raise money.
FOMO
The term "FOMO" stands for the phrase "fear of KYC
missing out." This occurs when investors start buying KYC stands for "know your customer." Many
up a particular asset based on their expectations that jurisdictions have KYC regulations, which have come
it will rise in value. Market participants can easily flock to affect startups holding ICOs. These regulations
to an asset should that asset experience sharp gains. require companies holding these digital token sales to
verify the identity of their investors.
Getting caught up in FOMO can be dangerous. More
specifically, buying up an asset because it has recently LONG/LONG POSITION
enjoyed some notable upside can cause one to fall Going long, also known as taking a long position,
victim to market manipulation. means making a wager that an asset will rise in value.
If a trader purchases a digital currency like bitcoin, for
Fork example, they are making a bet that the
A fork is a change in a digital currency's rules or cryptocurrency will appreciate.
protocol. Developers update a cryptocurrency's
protocol from time to time. A fork can be either a hard While simply buying digital currency is one example of
fork or a soft fork. A hard fork is a change to a digital taking a long position, there are other methods
currency's protocol that makes blocks created using available. For instance, traders can leverage options
the old protocol incompatible with the new chain. and futures.

FUD MARKET CAP

Fear, uncertainty and doubt can be summed up using Market cap is short for market capitalisation, which is
the term "FUD." The idea behind this is that market a term for total market value. The market cap of
2
bitcoin, for example, is the number of BTC have (their stake).[12] In these cases, users who
outstanding multiplied by the digital currency's price. confirm transactions, sometimes referred to as
The term can also be used to refer to a group of digital "forgers," receive transaction fees for their
currencies. contributions.

MINING PRIVATE KEY

Mining is the process for creating new units of a A private key is a piece of information presented as a
digital currency. For example, the bitcoin network string of numbers and letters—that an investor can
releases new bitcoins every time a block is mined. In use to access their digital currency.
this instance, mining involves confirming transactions
and combining them in to blocks. PUBLIC KEY
A public key is an address where an investor can
This verification requires hardware and electricity, and receive digital currencies. This public key, like the
miners are rewarded with digital tokens for private key, is a combination of numbers and letters.
contributing these needed resources.
Mining Incentive. PUMP AND DUMP
A "pump and dump" is a type of investment scheme
The mining incentive is a reward that miners get for where a market participant—or several—work
confirming transactions and mining them in to blocks. together to inflate the price of an asset so they can
Verifying the transactions of the bitcoin network, for sell it when its value is artificially high. This practice
example, requires specialised hardware and may be particularly pervasive when it comes to digital
substantial electricity, so miners are compensated currencies, as traders can easily get together using
with a mining incentive. Telegram groups with the goal of causing specific
cryptocurrencies to rise sharply in value.[14]
Initially, bitcoin's mining incentive was 50 BTC, but at
the time of report, the reward had dropped to 12.5 REKT
BTC. The term "rekt" is crypto trader slang for "wrecked."
Basically, it means that a trader lost substantial
amounts of money.
MOON/MOONING
When a digital currency moons, that means it rises ROI
sharply in value. For example, a crypto trader could ROI is short for "return on investment." Basically, if an
talk about how an altcoin is going "to the moon!" investor puts their money in to a digital currency, they
are doing so with the hope that they will receive a
NOOB compelling return.
Newcomers are frequently described as "noobs" by
industry insiders. If you are this person, you may want SATOSHI NAKAMOTO
to sit back and observe before "jumping in with both Satoshi Nakamoto is the pseudonym for the creator of
feet." Digital currencies are highly volatile, so those bitcoin, and more than one individual has claimed to
who are newer to these assets should keep their risky be Nakamoto. However, none of these claimants have
nature in mind. managed to convince the broader cryptocurrency
community that they are, in fact, the creator of
POW bitcoin.
POW is an acronym for "proof of work," which is a
system of proving that a digital currency's transactions SHORT/SHORTING
have been verified. Many digital currencies, including Shorting an asset, also known as taking a short
bitcoin, use POW. Under such a system, miners must position, means making a bet that the asset will fall in
do "work" that is difficult for them to contribute, but value. There are several methods that traders can use
easy for the broader network to verify. to short digital currencies, including futures, options
and margin trading.
Miners are usually rewarded for verifying transactions
by receiving units of a digital currency. Investors considering this method should keep in
mind it involves a lot of risk, especially with
POS cryptocurrencies because of their volatile nature.
POS stands for "proof of stake," which is another
method of confirming transactions. The digital TOKEN
currencies that use this approach to verification A digital token is a unit of a digital currency, such as a
frequently provide all their digital tokens up front, and bitcoin. It is worth noting that some of these tokens
miners are selected based on how many units they are used for specific ecosystems, and those are
3
frequently referred to as utility tokens. Other digital They’re used when conducting transactions on the
tokens are essentially securities. network, including the receipt, remittance, and
storage of cryptocurrency.
WHALE
The term "whale" is used to describe a trader who ALTCOIN
makes sizable bets. This term is a good one to know This usually refers to any cryptocurrency coin other
because market participants with the ability to than Bitcoin, which was the original cryptocurrency.
execute very large transactions can potentially
manipulate the market—or "make waves in the ADVERTISEMENT
ocean." There are over 1,000 other cryptocurrencies in the
market.
WHITE PAPER
The developers who create digital currencies usually BAGHOLDER
provide white papers for these innovative assets. This is the name given to an investor who’s left
These documents generally offer comprehensive holding cryptocurrency after it has dropped in price.
information on the digital token in question, as well as
its underlying technology. BLOCKS
These are packages of permanently-recorded data on
For example, the bitcoin white paper provided the blockchain network.
information on a "peer-to-peer electronic cash
system." Investors who are considering taking part in BLOCKCHAIN
ICOs can benefit greatly from reviewing any available This is a distributed ledger secured using
white papers on the subject. cryptography. It’s a database that’s accessible for
everyone to read. Even so, data can only be changed
SUMMARY by ledger owners. Data isn’t stored on a centralized
Investors who are thinking about getting involved with server, but is instead shared by thousands of
cryptocurrency should keep in mind that industry computers around the globe.
terminology can be hugely beneficial. By performing
the necessary research and learning this information, COLD STORAGE
would-be traders can increase their chances of Cold storage refers to storing cryptocurrency away
meeting their investment objectives. from the web in a wallet or another storage
mechanism to increase security. This is in contrast
Ultimate Glossary of Cryptocurrency Terms and with a hot wallet which is connected to the internet
Acronyms (and How to Use Them) and used for day-to-day transactions.
Table of Contents
CONFIRMATION
INTRODUCTION When a transaction has been verified by miners and
Each industry develops its own terminology over time, added to the blockchain, it receives a confirmation.
creating certain terms and a specific language which
aren’t always self-explanatory. CONSENSUS
This can be a major challenge for a newcomer to a Consensus is reached when all network participants
market or industry, especially when they come across approve the validity of the transactions by ensuring
terms and acronyms that don’t make any sense. that ledgers are exact copies of one another.

GUESS WHAT? CRYPTOCURRENCY

The cryptocurrency sector is no exception. This is a type of digital asset used as a medium of
Knowing all the terms and acronyms can be a really exchange in business transactions.
tricky endeavor, especially in the hyper-complex Cryptography is used to maintain the security of
realm of crypto affiliate marketing. transactions and control the creation of additional
currency coins or tokens.
Even though this industry is relatively new, operators
in this space have developed a widely-accepted
terminology to define the functionality of DIGITAL ASSET
cryptocurrency exchanges and blockchain technology. Not all cryptocurrencies trade as coins or currencies.

ADDRESS If they are digital stores of value, they are termed

Addresses consist of between 26 and 35 characters digital assets. These can be freely exchanged or not.
and represent a unique wallet ID on the blockchain,
much like an account number.
4
FIAT CURRENCY
A fiat currency is any currency that’s issued by a MULTI-SIGNATURE, OR MULTISIG
government or a central bank, such as the dollar. This refers to a situation where multiple signatures
are required to authorize a transaction. This increases
FORK the security of cryptocurrency transactions and
This term applies to a blockchain that’s split into two reduces the risk of theft.
separate chains, normally to accommodate new
governance rules. NODE
A blockchain isn’t stored in a central location.
GENESIS BLOCK In fact, it’s distributed to any number of computers –
This describes the very first block in any blockchain. called nodes – which host it. Each node is
instrumental in verifying the ledger within the
GOING LONG/GOING SHORT blockchain.
These terms describe a margin trade that profits when
the price either increases or decreases. PRIVATE KEY
This is the key – or password – which unlocks a wallet.
HALVING It shouldn’t be shared with anyone.
Bitcoins have a finite supply which limits the number
of coins issued to 21 million. PUBLIC KEY
A public key is a wallet address that can be shared
The number of Bitcoins generated decreases by 50 with other parties to effect transactions.
percent every four years, a process that’s known as
halving. PUMP AND DUMP
This is a form of market manipulation by traders who
The final halving will occur in 2140. Hash algorithm artificially inflate prices and then exit the market, thus
This transforms a large amount of data into a fixed- causing a collapse in the price.
length hash, or string of characters for a cryptographic
key. Hash algorithms are central to blockchain and SHARDING
cryptocurrency transactions. Sharding is a scaling method that enables nodes to
keep partial copies of blockchains.
HASH RATE This can improve network performance and increase
This refers to the speed at which a piece of hardware consensus speeds.
can decrypt hashes.
This is the basis of cryptocurrency mining. SMART CONTRACT
A smart contract contains encoded rules governing
HOT WALLET business transactions.
A hot wallet is connected to the internet and used to
hold cryptocurrency for everyday transactions. It’s created in a programmable language for storage
Because of the increased security risk over a cold on the blockchain and it’s enforced by network
wallet, a hot wallet should not store large amounts of participants.
currency.
Laddering Investors who set incremental buy or sell SPOOFING
orders are said to be laddering. Spoofing occurs when investors with large holdings
trade with themselves to create the illusion of
MINING volume.
Cryptocurrencies aren’t printed like traditional
currencies – they are mined. This process uses VOLATILITY
computer hardware to solve complex mathematical Market or price volatility refers to the movement in
problems and decrypt hashes. Miners are rewarded the price of a cryptocurrency over time.
for their work with cryptocurrency coins. The cryptocurrency market typically experiences wild
swings between high and low prices.
MINING RIG
Cryptocurrency mining requires a huge amount of WALLET
power. Mining rigs consist of multiple graphic In the cryptocurrency sector, a wallet is a digital
processors (GPUs) to increase processing power. address used to store coins or tokens.
It can be used to send and receive these items during
MOON cryptocurrency transactions.
When a cryptocurrency coin goes on a market run and
drives the price up quickly, it’s referred to as mooning. WHALES
5
Whales are investors who hold a significant number of This technique is used by market analysts to predict
coins or other cryptocurrency. price action.
They can have a marked influence on market
movement. CONCLUSION
These are most of the common cryptocurrency terms
CRYPTOCURRENCY ACRONYMS and acronyms used in the industry and should help to
ATH: All time high. give a new investor a better understanding of the
The highest price that a cryptocurrency has ever market.
reached.
Since this is quite the dynamic and growing industry,
DAPPS it’s likely that more industry-relevant terminology will
Decentralized applications, describing a blockchain- be added in the future!
based application that operates entirely in a Pay attention to what’s coming next in the world of
decentralized way. crypto, stay updated on the latest blockchain trends,
and invest like a master who earns that sweet cash
DCA (Dollar Cost Averaging). much faster!
This is an investment technique used to reduce the
impact of market volatility by spreading out buys and NEVER FORGET:
sells over an extended period of time. Keep coming back to this glossary of cryptocurrency
terms whenever you need to brush up on
FOMO (Fear of Missing Out). cryptocurrency investment terms!
This is commonly experienced in a rising market
where new investors experience the fear of missing 0X The 0x protocol is an open standard for building
out on gains to be made. The effect of this demand is decentralized exchanges on the Ethereum blockchain.
to drive the market price higher. Launched in 2018, 0x enables developers to
incorporate peer-to-peer digital asset exchange into
FUD (Fear, Uncertainty, and Doubt). platforms and apps. 0x’s native token is ZRX, which
These emotions are common in volatile markets. allows holders participation rights in 0x platform
governance.
ICO (Initial Coin Offering).
This is similar to an initial public offering (IPO) in the 3D MODEL RENDERING
equities market. 3D model rendering is the process of creating a virtual
image or animation by using varying digital texture,
An ICO is used by cryptocurrency startups to raise color, and lighting software. The modeling process
capital for their ventures. uses data points to represent objects in three
A set number of coins is offered for sale to the public dimensional space, which is then rendered from 3D
in exchange for fiat or other cryptocurrencies. models into 2D images through a computationally
Beware: A lot of ICOs are actually scams! heavy process.

PoW (Proof of Work). 401K PLAN

This is used to validate the creation of cryptocurrency In the US, a 401k is an employer-sponsored,
by miners who are required to solve complex government-supported pension savings plan for
calculations. employees. 401k plans allow companies to sponsor
eligible employees in saving and investing towards
This difficulty is instituted so as to make it harder for retirement by contributing a portion of their income
cyber attackers to add invalid blocks to the chain. to the plan on a tax-deferred basis. These
contributions are often incentivized by employer
PoS: (PROOF OF STAKE). matching. 401k plans are typically defined by
Individuals can gain rewards via a proof of stake in contribution limits, tax advantages, and early
case they hold more currency in their wallets for a withdrawal penalties.
length of time.
51% ATTACK
ROI (RETURN ON INVESTMENT). A 51% attack is a hypothetical scenario in which more
This is the profit made on an investment or than 50% of a blockchain network's nodes fall under
transaction. the control of a single group. In such a circumstance,
the consensus of a network is no longer sufficiently
distributed enough to be viable, leaving the
TA (TECHNICAL ANALYSIS). blockchain open to manipulation. Attackers with
greater than 50% control of a network would be able
6
to stop, reverse, and duplicate new transactions, a contracts. One potential downside of the account
catastrophic condition for any blockchain. Notably, a model architecture is difficulty in scaling transactions-
51% attack becomes more difficult and expensive as a per-second.
network grows more sizable, distributed, and
valuable. ACQUIRER NODE
On the Crypto.com blockchain network, Acquirer
AAVE Nodes facilitate the settlement of transactions
Aave is a decentralized lending and borrowing between merchant and customer. There are two main
platform on Ethereum. Aave users can take out loans types of Acquirer Nodes: Customer and Merchant
by providing collateral in the form of crypto assets. Acquirer Nodes. The two node types communicate to
Lenders who provide collateral to Aave receive verify merchant verification, perform settlement for
aTokens in return, which automatically pay interest to users, and provide an escrow service that enables
the holder with funds earned from platform trading Crypto.com's wallet and debit card products.
fees. Aave has pioneered the technology of ‘flash
loans,’ which allow for the uncollateralized lending of ADDRESS
funds, so long as the principal is repaid within the A blockchain address is a unique combination of
same Ethereum transaction block. numbers and letters that identifies accounts on a
blockchain network. To transact in exchange, digital
AAVE TOKEN assets are sent to and from different addresses. An
The AAVE token is an Ethereum-based ERC-20 asset example of a Bitcoin address is
used as the governance token of the Aave blockchain ‘14qViLJfdGaP4EeHnDyJbEGQysnCpwk3gd’.
protocol. AAVE token holders have the ability to
propose changes and vote to approve or deny new ADMIN KEY
proposals to the Aave protocol. With significant An admin key holds special access to make changes to
enough distribution, AAVE tokens are intended to a project's protocol or smart contract. It is typically
eventually accommodate the autonomous and held by a project's founders or core team. Proponents
decentralized governance of the Aave platform. of decentralization argue that holding admin keys
goes against decenralized governance practices and
ACCOUNT ABSTRACTION LAYER (AAL) poses security risks, while many projects have stated
The Account Abstraction Layer (AAL) is the technical intention to eliminate them from practice.
infrastructure that makes smart contract development
possible on the Qtum blockchain. The foundational Airdrop = Zakkatul Larari
layer of Qtum follows the UTXO model used on An airdrop is a token distribution method in which
blockchains such as Bitcoin. The AAL on Qtum allows assets are directly transmitted to user wallets for free.
the accounts model used on Ethereum to be Airdrop recipients do not pay for tokens received.
“abstracted” or transferred in order to work on top of Typically used as a marketing tactic to create
the UTXO model. Qtum’s AAL is the computing go- awareness around a project, airdrops can also result
between that allows the UTXO and accounts models after a chain fork, token upgrade, or as part of a
to interact. fundraising mechanism.

ACCOUNT-CHECKER TOOL ALGORITHMIC STABLECOIN

An account-checker is a script or program that takes a Algorithmic stablecoins do not use fiat or
list of usernames and passwords — known as a cryptocurrency as collateral. Instead, price stability
combolist — and tests them against a set of target results from the use of algorithms and smart contracts
websites. Account-checker tools substantially increase that manage the supply of tokens in circulation. In this
the speed and efficiency with which an attacker can model, the stablecoin’s algorithm automatically
test a large volume of credentials on a broad range of expands or contracts the number of tokens in
websites and service providers. These tools are circulation in order to meet a specific price target.
generally used by malicious actors looking to
capitalize and commit fraud or identity theft against ALGORITHMIC TRADING
the account holders from whom they have stolen Algorithmic trading is a modern method of market
access. trading that utilizes computer software coded to
follow a particularly defined set of mathematical
ACCOUNT MODEL instructions — an algorithm — to place one or many
The account model is a blockchain architecture that trades simultaneously. The formulas compute against
features direct information and value transfer. Smart price, timing, quantity and other mathematical
contract platforms such as Ethereum use the account models to follow specific strategies. Algorithmic
model as opposed to the UTXO model used by the trading models execute thousands of trades to
Bitcoin network, which limits the capabilities of smart generate profits at a speed, frequency, and
7
consistency impossible for a human trader. ANNUAL PERCENTAGE YIELD (APY)
Algorithmic trading technology gives markets more The annual percentage yield (APY) refers to the rate of
liquidity and higher profitability, while also potentially return earned on a deposit over one year. APY takes
eliminating the human emotions and error that can into account compounding interest, which is
negatively impact trading decisions. calculated on a periodic basis and added to the
balance.
ALLOCATED GOLD AND UNALLOCATED GOLD
According to the London Good Delivery set of ANTI-MALWARE
regulatory and compliance standards, gold can be Anti-malware is a category of software designed to
bought in two distinct forms: allocated or unallocated. prevent, detect, and remove malware. Malware refers
When a customer purchases allocated gold, they have to any type of 'malicious software' that is specifically
ownership over the gold and can choose to store it on designed to cause damage to computers and
their own, or in a vault at a London Bullion Market computer systems. Examples of malware include
Association (LBMA) facility. Unallocated gold does not viruses, trojan horses, and ransomware among others.
feature direct ownership over specific gold bars, but
instead holds entitlement to a certain amount of gold. ANTI-MONEY LAUNDERING (AML)
Anti-Money Laundering (AML) is a comprehensive set
ALTCOIN of processes, regulations, and rules that combat
An altcoin is an “alternative coin,” or any money laundering, terrorism funding, and financial
cryptocurrency launched after Bitcoin. It refers to any crimes like cyber theft and fraud. AML procedures
cryptocurrency that is not BTC. For example, ETH, XRP, require financial firms to monitor transactions to
and LTC are all altcoins. ensure that funds are not part of criminal activities,
circumventing tax laws, or violating any other
AMORTIZING regulations. AML is mandatory for users to access
Amortizing refers to the spreading of an initial or financial services in the blockchain industry.
overhead cost across time or between parties. On the
Orchid network, transaction costs are kept low by ANTIVIRUS
amortizing the fees across transactions and users. Antivirus is a category of software that is designed to
Transaction fees are slowly paid off or broken into prevent, detect, and remove computer viruses.
increments that are then shared across a large Computer viruses are malicious computer programs
network to reduce individual user costs. that are designed to replicate themselves and cause
damage to computers and computer systems.
AMP (AMP)
AMP is the digital collateral token of the Flexa APPLICATION BINARY INTERFACE (ABI)
network, a payment system that allows users to spend An application binary interface (ABI) is a standardized
certain cryptocurrencies with select retailers at their method for engaging with smart contracts in a
brick and mortar locations. AMP is an ERC-20 token blockchain ecosystem. ABIs allow smart contracts to
used as collateral to guarantee retail payments while engage with external data, as well as with other
blockchain transactions remain unconfirmed. The contracts internal to the blockchain platform. ABIs are
AMP token is the replacement for Flexacoin (FXC). similar to application programming interfaces (APIs) in
Gemini Exchange is the first market to support the that they enable separate software systems to
AMP token. communicate and interact with each other.

ANDRE CRONJE APPLICATION PROGRAMMING INTERFACE (API)

Andre Cronje is the founder and lead developer of An application programming interface (API) is a set of
Yearn Finance. He built most of the original Yearn protocols and codes that determine how different
products, then relinquished personal control of the software platforms communicate and share
protocol by launching the YFI governance token in information. APIs define different types of requests
2020. Cronje remains an active figure and builder in and calls that can be made, the data types that can be
the Yearn community and DeFi ecosystem. used, and how to make these requests. It serves as an
intermediary between different software systems. A
ANNUAL PERCENTAGE RATE (APR) developer can use an API to incorporate features of an
An annual percentage rate (APR) on a loan is the external application into their own software. By
amount of interest a borrower must pay each year. allowing different platforms to communicate, APIs
The APR is expressed as an annual percentage of the enhance interoperability across the web.
outstanding loan balance, and represents the annual
cost of borrowing. APPROVED ADDRESSES
For a wallet, exchange, or blockchain-based financial
services platform, approved addresses refers to the
8
list of addresses permissioned for transactions on an Proof-of-Stake (BFT-DPoS) consensus mechanism.
account. Addresses not included on the list are aBFT uses a two-stage block confirmation mechanism,
prohibited from certain transactions. Approved wherin a two-thirds supermajority of block producers
addresses are typically implemented for security and confirm each block twice. The first stage proposes a
compliance reasons. block (LIB) while the second stage finalizes the
proposed LIB to make the block irreversible.
ARBITRAGE
To arbitrage is to exploit the price difference of an ATOKENS
asset or security between two markets for profit. For An aToken is an ERC-20 token serving that represents
example, if one bitcoin is selling for $10 on exchange an ownership claim on an underlying asset in the Aave
ABC and $12 on exchange XYZ, then an arbitrageur protocol. When a user deposits assets into Aave
can generate a profit of $2 by purchasing one bitcoin liquidity pools, the platform automaticlaly generates
from ABC and selling it at XYZ. Arbitraging can be an aToken in return. For example, providing DAI to
automated by utilizing sophisticated computer Aave would automatically mint aDAI. Holders of
systems and software to monitor prices and conduct aTokens continuously earn interest on their deposits,
high-volume trades that take advantage of even slight the value of which is represented in the aToken.
differences in prices. Arbitrage is a necessary financial
mechanism that keeps prices consistent between ATOMIC SWAP
different exchanges and wider markets. An atomic swap is a peer-to-peer exchange of crypto
assets between two parties without the use of a
ARPANET trusted third party, such as a centralized exchange.
Advanced Research Projects Agency Network Atomic swaps utilize smart contracts to exchange
(APRANET) is an early version of the internet. crypto assets between different blockchain networks
ARPANET was created by the U.S. Department of through a process of locking, verifying, and unlocking.
Defense and used two technical foundations of the
modern internet: a packet switching network with AUCTION
distributed control and TCP/IP. An auction is a type of market that allows buyers and
sellers to engage with each other through bidding.
ARTIFICIAL INTELLIGENCE (AI) Auctions have the benefits of elevated liquidity and
Artificial intelligence in a trading context refers to the price discovery.
use of computer software, machine learning, and
algorithms to set strategy and execute trades. AI AUTHENTICATION
trading systems analyze, process, and calculate vast Authentication is a procedure that verifies the identity
amounts of data in order to execute optimal of a user before access is granted. To gain access — to
investment strategies. an account, platform, private space — the user
provides login credentials like passwords, SMS codes,
ASSET and fingerprints. Authentication generally comes
An asset is anything of monetary value that can be before authorization, which is a verification of a user’s
owned or purchased. Within the context of investing, level of access.
assets can refer to a variety of financial and physical
instruments, from stocks to real estate to gold to AUTHORITY MASTERNODE (AM)
dollars. A bitcoin is a particular form of crypto or Authority Masternodes (AMs) maintain network
digital asset. consensus and the security of the VeChainThor
blockchain. AMs are responsible for block propagation
ASYMMETRIC ENCRYPTION on the platform, and enable VeChainThor's Proof-of-
Asymmetric encryption is a cryptographic system that Authority consensus methodology. In order to host an
uses a public key for encryption and a private key for AM, the user must hold 25 million VeChain tokens
decryption. The public key can be shared with anyone, (VET) and go through a rigorous authentication
while the private key is meant to be kept secret to process. AMs are the most powerful nodes in
maintain security. Asymmetric encryption is VeChain's nodal hierarchy, and are very limited in
considered more secure than symmetric encryption, number.
which uses one key for both encryption and
decryption. The Bitcoin network uses asymmetric AUTHORIZATION
encryption. Authorization is a procedure that verifies a user’s
degree of access. It determines a user’s permission
ASYNCHRONOUS BYZANTINE FAULT TOLERANCE and access to content or resources. Authorization
(ABFT) generally comes after successful authentication, or
Asynchronous Byzantine Fault Tolerance (aBFT) is the verification of identity.
first layer of the Byzantine Fault Tolerance Delegated
9
AUTOMATED CLEARING HOUSE (ACH) incentivized return to do so with rewards in XTZ.
An automated Clearing House (ACH) is an electronic Bakers are Tezos community members who possess a
network that processes financial transactions in the minimum amount of XTZ, and enough hardware and
U.S. An ACH payment pulls funds directly from a user’s software expertise to run a baking node within the
bank account and deposits them into the recipient's Tezos Proof-of-Stake network. Through a process of
account. A common type of ACH transaction is a direct token staked delegation, bakers may also produce
deposit payment from an employer. blocks and earn rewards on behalf of non-Bakers
within the Tezos ecosystem.
AUTOMATED MARKET MAKER (AMM)
An automated market maker (AMM) is a fully BAKING
automated decentralized exchange where trades are Akin to the process of staking in many Proof-of-Stake
made against a pool of tokens called a liquidity pool. models, Baking is the process of adding new blocks to
An algorithm regulates the values and prices of the the Tezos blockchain. The baking process involves
tokens in the liquidity pool. Since AMMs do not rely adding, signing, and verifying new blocks, and
on an active market of buyers and sellers, trades can depositing a specified amount of XTZ as collateral to
occur at any time. The most popular AMMs are guarantee honest behavior.
Uniswap, Curve, and Balancer.
BALANCE FREEZE FUNCTIONALITY
AVERAGE DIRECTIONAL INDEX On the Ripple network, balance freeze is the function
The average directional index (ADX) is a technical through which Ripple gateways freeze or halt
indicator used to quantify the strength of a trend in a transactions in order to prevent any abuse of the
market. The ADX is calculated based on the moving system for illicit activity. Balance freeze functionality is
averages of prices, and is epresented by a number a powerful security feature that can only be applied to
ranging from 1 to 100, with a higher number currencies issued on the Ripple network, and not on
indicating a stronger trend. the XRP token itself.

BACKDOOR BALANCER
A backdoor refers to any method that can Balancer is a non-custodial portfolio manager and
circumnavigate regular authentication and automated market maker (AMM) built on Ethereum
authorization procedures to gain root or high-level that pools up to eight different tokens for users to
access to a system, computer, application, or network. trade. These Balancer pools are self-balancing
Backdoors are commonly installed through remote file weighted portfolios with specific parameters. The
inclusion (RFI), which identifies a weak component in Balancer protocol allows all Ethereum accounts to add
an application or a network. This type of channel tokens to existing public pools or create their own
allows direct control over an infected device to private pools.
manipulate data, deploy more malware, or create a
zombie network of infected computers for criminal BAL TOKEN
activity. The BAL token is the governance token for the
Balancer protocol. BAL tokens are earned by liquidity
BACKTESTING providers who supply tokens to Balancer pools. BAL
Backtesting is the simulation of a trading strategy holders can propose and vote on changes to the
based on historical data.Traders use backtesting to protocol.
prove that their trading system works based on
historical results. In trading and investing, past BANCOR NETWORK TOKEN (BNT)
performance does not guarantee future results, which The Bancor Network Token (BNT) is the default
means a strategy that performs well in backtesting reserve currency that powers the Bancor protocol.
may not perform as well going forward. The Bancor network is a decentralized exchange
platform that uses pools of tokens called liquidity
BAITING pools to facilitate peer-to-peer trading. Bancor
Baiting is a form of social engineering that exploits liquidity pools must hold BNT, which acts as the
victims with false promises of financial gain. Malicious intermediary token for every trade. For example: in
actors, bots, or online ads 'bait' victims with quick order to trade DAI for ETH on Bancor, the protocol
payouts and riches in exchange, while the process to first exchanges DAI for BNT, then exchanges BNT for
obtain it involves providing personal information or ETH. As liquidity on the Bancor network increases, so
downloading software infected with malware. does the value of BNT.

BAKERS BANDWIDTH
On the Tezos network, Bakers are nodes with the Bandwidth is the amount of data capacity available for
responsibility of producing new blocks, and are transactional throughput on a network. It is normally
10
measured by the number of megabytes or gigabytes Behavior-Based Detection Methods
per second. If a network's bandwidth limit is reached,
the flow of data will become inadequate to handle the Behavior-based detection methods are used by
volume, and connections will slow down. advanced malware protection programs to identify
suspicious activity. The protection programs analyze
BANK FOR INTERNATIONAL SETTLEMENTS (BIS) and review code for potentially harmful behavior,
The Bank for International Settlements (BIS) is an networks attacks, and the installation of rootkits and
international financial institution based in Basel, malware.
Switzerland that is owned by numerous global and
central banking stakeholders. Its purpose is to guide BENCHMARK INDEXES
international monetary policy and administer financial A benchmark index refers to a preeminent index
cooperation, alongside serving as a bank for central security used as measurie against which to track
banks and other international organizations. performance of the wider market. Common
benchmark indexes include the S&P 500, Nasdaq
BANKING AS A SERVICE (BAAS) Composite, and Russell 3000.
Banking as a Service (BaaS) is a type of software
platform that provides financial services. BaaS
provides infrastructure for legacy banking systems to BID-ASK SPREAD
connect and share data with third party financial A bid-ask spread is the difference between the bid
service providers to create new products. BaaS can be (buy) and ask (sell) price of a particular asset on an
thought of as the ‘middleware’ between legacy exchange. The bid price can be though of as
financial institutions and fintech startups. representing demand, while the ask price represents
supply. A large bid-ask spread is a sign of poor liquidity
BASE CURRENCY in a market.
A base currency is the currency against which an
exchange rate is quoted. It is the first currency BIP 32
referenced in a currency pair. In the BTC/ USD Bitcoin Improvement Proposal 32 (BIP 32) established
currency pair, which references the price of BTC in the standard for hierarchical-deterministic (HD)
terms of USD, the base currency would be BTC and wallets, a technical improvement over earlier wallets
the quoted currency would be USD. that on random key pairs. BIP 32 allowed for the
creation of a hierarchical tree-like wallet structure
BASIC ATTENTION TOKEN (BAT) with more advanced cryptographic security
The Basic Attention Token (BAT) was created to mechanisms. HD wallets are defined by a master key
provide a more effective, fair, and transparent pair at the top of the hierarchy that “determines” all
mechanism for connecting and rewarding internet the private key and key pair access codes below it in
users, advertisers, and publishers. In this digital the access hierarchy.
advertising system, users are rewarded with BATs for
their attention, publishers receive BATs based on user BIP 38 Password
attention, and advertisers achieve higher ROI and A Bitcoin Improvement Proposal 38 (BIP 38) password
better targeting. BAT was created by the same team enables walletholders to encrypt Bitcoin private keys
behind the Brave Browser and is integrated into the to offer an extra layer of protection. An encrypted
Brave Browser. private key requires that a user hold both the private
key and the password in order to access wallet funds.
BEACON CHAIN This makes private key management a critically
The Beacon Chain is the first stage of the launch of important step, which is commonly done on paper
Ethereum 2.0, an upgrade to the Ethereum network. wallets and other analog devices for security
The Beacon Chain introduces the Proof-of-Stake purposes.
consensus mechanism to the network and allows ETH
holders to stake their ETH and become validators in BIP 39
Ethereum 2.0. The Beacon Chain was designed to be Bitcoin Improvement Proposal 39 (BIP 39) allows for
the primary mechanism for coordinating data, users, the generation of a human-readable 12-24 word
and assets across the upgraded Ethereum network. It recovery phrase for hierarchical-deterministic (HD)
was launched on December 1, 2020. wallets. With the recovery phrase, users can
regenerate an HD wallet that has become lost or
BEAR MARKET damaged. Because they hold such access, BIP39-
A bear market occurs when the market experiences enabled recovery phrases should be kept secret and
price declines, typically when prices fall 20% or more stored securely.
from recent highs. A bear market is the opposite of a
bull market.
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BIP 44 while the term "bitcoin" with a lower case B denotes
Bitcoin Improvement Proposal 44 (BIP 44) improves the network's native cryptocurrency.
on BIP 32’s HD wallet structure by creating a specific
hierarchy that allows for multiple accounts to be held
on the same wallet. BIP 44 allowed two or more BITCOINTALK
separate accounts on the same wallet to hold the Bitcointalk is an internet message forum that was
same cryptocurrencies in different amounts. The launched by pseudonymous Bitcoin creator Satoshi
separate accounts could be used for different Nakamoto in 2009 to host discussions about Bitcoin,
purposes and coexist in a way similar to checking, blockchain, and cryptocurrency. It became the
business, and savings accounts at legacy banks. meetingpoint for the embryonic blockchain industry,
and was the site of the first bitcoin purchase: 10,000
BITCOIN BTC in exchange for two pizzas. Bitcointalk is still in
Bitcoin is a blockchain network with a native operation today, fostering discussion and community
cryptocurrency (bitcoin). It is the first blockchain and between 450,000+ developers, investors, miners,
cryptocurrency, hence its dominant presence within programmers, and enthusiasts.
the broader crypto ecosystem. Bitcoin was established
in 2009 and pioneered Proof of Work, a technology BITLICENSE
for reaching consensus on a decentralized network. The BitLicense is a business license for virtual currency
activity that crypto enterprises must obtain before
BITCOIN (BTC) operating in the state of New York. BitLicenses are
Bitcoin (BTC) is a cryptocurrency that can be directly issued by the New York Department of Financial
transmitted between users on the Bitcoin network. It Services (NYDFS), and primarily regulate the
is spelled with a lowercase B, as compared to the commercial receipt, storage, and transfer of digital
Bitcoin network, which is denoted with an upper case assets. Only 25 have been granted as of 2020, while
B. recipients include Circle, Coinbase, Robinhood, and
Square. Businesses chartered under New York banking
BITCOIN CASH (BCH) law such as Gemini are not required to hold
Bitcoin Cash is a hard fork of the Bitcoin Network that BitLicenses.
serves as an electronic cash payment system. Its
cryptocurrency, BCH, was designed to be a more BLOCK
practical cryptocurrency for everyday transactions On a blockchain, a block is the data record of all
than BTC. Bitcoin Cash's increased block size transaction information made during a specific
encourages use as a payment system rather than as a timeframe on its network. Blocks are added
store of value. sequentially to a network's chain of data, which in
turn make up the public ledger known as blockchain.
BITCOINER For example: A Bitcoin block contains information
A Bitcoiner is holder of bitcoin and an active about the date, time, and amount of transactions, as
proponent of the Bitcoin network. Bitcoiners typically well as signature information regarding the origin and
believe that bitcoin is the most important and destination of the transfer. Blocks must be confirmed
significant digital asset available. by the network via a process of consensus before a
chain can continue transacting and creating new
BITCOIN GENESIS BLOCK blocks.
The Bitcoin genesis block was the first block mined on
the Bitcoin blockchain. It was mined on January 3, BLOCKCHAIN
2009. A blockchain is a public ledger of transactions that is
maintained and verified by a decentralized, peer-to-
BITCOIN IMPROVEMENT PROPOSAL (BIP) peer network of computers that adhere to a
A Bitcoin Improvement Proposal (BIP) is a code consensus mechanism to confirm data. Each
change introduced to improve the Bitcoin protocol. A computer in a blockchain network maintains its own
BIP can be submitted by anyone to be evaluated and copy of the shared record, making it nearly impossible
reviewed. Significant BIPs include BIP 32, BIP 39, and for a single computer to alter any past transactions or
BIP 44. for malicious actors to overwhelm the network.
Sufficiently decentralized blockchains do not rely on
BITCOIN NETWORK centralized authorities or intermediaries to transact
The Bitcoin network is a peer-to-peer, decentralized globally, securely, verifiably, and quickly, making
network that allows users to send units of value to technology like cryptocurrency possible.
each other without any intermediary or bank. The
term “Bitcoin” with a capital B denotes the network,

12
BLOCKCHAIN TRANSMISSION PROTOCOL (BTP) the incentive structure that keeps blockchain
The Blockchain Transmission Protocol (BTP) is ICON networks operating in a decentralized fashion. In
network’s proprietary interoperability framework. It Proof-of-Work blockchains like Bitcoin, block
allows independent blockchain networks to connect validation and block rewards are the remit of miners.
and exchange data. BTP facilitates the transfer of In newer models like Ethereum’s upcoming Proof of
information and tokenized assets between ICON and Stake, the block reward is paid to the collateral staking
external blockchain systems. validator nodes.

BLOCKCHAIN TRILEMMA BLOCK SIZE

The blockchain trilemma refers to the challenge in Blockchain network protocols are made up of blocks
achieving a balance between scalability, of data that are processed in a perpetually updating
decentralization, and security in a blockchain network. chain-like structure — hence the term "blockchain."
While scalability refers to the speed and volume of Each block stores transactions sent on the network of
transactions, decentralization refers to the a specific size or specific time-period as set by the
distribution of network nodes, and security refers to governance of the particular blockchain.
the integrity of the system from compromise. The
blockchain trilemma states that an equal prioritization BLOCK TRADE
of all three factors at once is impossible — so a trade- A block trade is a large purchase or sale of securities
off must be made with one. It remains an ambition of executed outside of an open marketplace. Because
blockchain technologists and entrepreneurs to solve the size of the transactions are quite large, block
for the trilemma with greater effectiveness in the trading is typically done by institutions and hedge
design of any network, update, or application. funds. The private nature of block trading makes them
similar to over-the-counter (OTC) trading.
BLOCK DIFFICULTY
Block difficulty refers to the complexity of BNB
computation required to mine new blocks in a Proof- BNB is the native cryptocurrency of the Binance
of-Work (PoW) blockchain environment. Block ecosystem and a Top 10 cryptocurrency by market
difficulty is a configurable aspect of a blockchain capitalization. On the Binance exchange, users can pay
protocol, and can be used as a mechanism to stabilize for exchange fees like transactions, withdrawals, and
block production times in accomodating challenges listings in BNB and receive a discounted rate. BNB can
like transaction speeds and network capacity. also be used to participate in token sales on Binance
Launchpad, its platform for hosting third-party Initial
BLOCK EXPLORER Exchange Offerings (IEOs). In September 2020,
A block explorer is a software interface that enables Binance launched the Binance blockchain, upon which
users to access realtime blockchain information like BNB can be staked to verify transactions and recieve
transactions, blocks, addresses, nodes, and balances block rewards.
on a particuar network. Operating as web browsers
for blockchains, the many free-to-use and open BOLLINGER BANDS
source block explorers are essential in providing for Bollinger Bands are a technical analysis device created
global transparency and democratized access to by trader John Bollinger in 1983 that have become
blockchain network. one of the most popular tools used by traders today.
Bollinger Bands use moving averages and standard
BLOCK PRODUCERS deviation to create a range of price movements. On a
On most Proof-of-Stake blockchains, block producers trading chart, Bollinger Bands are visually represented
are the individuals or group whose hardware is chosen by a centerline based on a moving average, with a
to validate a block's transactions and initiate the next band below and above the centerline based on
block. The term originated within blockchain standard deviation. Bollinger Bands can help indicate
ecosystems that utilize Delegated Proof of Stake if prices have moved outside of the range of historical
(DPoS), where users elect block producers to validate deviation, and can be used to identify a number of
and add blocks. Other names for block producers are market scenarios in real time.
'delegates' or 'witnesses.'
BOTNET
BLOCK REWARD A botnet is a collection of internet-connected devices
A block reward is the payment awarded to a that have been infected by malware, enabling
blockchain network miner upon successfully validating malicious actors to control the devices. Infected
a new block. Typically paid out in the native asset of devices are oftentimes controlled remotely and
its network at a fixed, but regressive rate, block without the legitimate device owner's knowledge.
rewards are often the only source of new currency Botnets are often composed of a variety of device
creation on a network. They provide a key element of types and used by cybercriminals to carry out a broad
13
range of orchestrated online attacks such as A brokerage account is a financial service created and
credentials leaks, data theft, and DDoS attacks. managed by a licensed brokerage firm on behalf of an
investor to interact with assets and markets. Account
BRAIN WALLET holders can either make trades themselves, or the
A brain wallet refers to a crypto private key or seed firm can make them on behalf of account holders. In
phrase that has been memorized by its owner. all cases, the assets purchased through the brokerage
Although memorized accounts are immune to online account belong to the account holder.
hacks and physical theft, they are susceptible to being
forgotten, or lost upon the holder’s death. Brain BRUTE FORCE ATTACK
wallets are not recommended as a secure crypto In a brute force attack, an attacker attempts to gain
wallet option. access to an account by systematically trying all
possible combinations of passwords and passphrases
BRAVE BROWSER that may apply to the account, with the goal of
The Brave browser is an open-source, privacy-focused eventually guessing the correct credentials. While
web browser developed by the same team that brute force attacks can be computationally intensive,
created the Basic Attention Token (BAT). It is the first time-consuming, and difficult to pull off, they can
web browser to implement the BAT system. The Brave correctly guess a weak password within a few
browser, in combination with BAT, rewards users for seconds. A strong password can deter most brute
viewing advertisements in a transparent relationship force attacks.
between advertiser, publisher, and user.
BUBBLE
BRD A bubble occurs when an asset rises to extremely
BRD is a cryptocurrency wallet and financial services inflated prices and then comes crashing down, settling
platform that aims to accelerate mainstream adoption at a level that’s far less than its original price —
of cryptocurrencies by simplifying the processes of typically a drop of 75% or more. It is usually possible
purchase, conversion, and storage. On BRD's mobile to identify a bubble only after it has burst and the
app, users can purchase leading cryptocurrencies, price recedes. A speculative bubble is characterized by
along with BRD tokens (BRD), a native asset that both the rise and fall occurring within a very short
receives rewards and discounts that improve period.
according to a user's BRD holdings.
BULLISH
BREAD REWARDS The term "bullish" can be used to describe how
The Bread Rewards program provides incentives to positive or optimistic a person feels about a particular
Bread platform users for engaging in network- asset. Someone who is bullish on bitcoin believes the
beneficial activity like maintaining a wallet balance price of bitcoin will increase. A person who is bullish
above a certain threshold, or posting on social media. on bitcoin may also be referred to as a bitcoin "bull."
Bread Rewards was one of the first customer loyalty
programs in the cryptocurrency wallet space. BULL MARKET
A bull market refers to an upward trend in prices for
BREAKDOWNS an extended period of time. As of 2020, bitcoin has
A breakdown is a trading pattern that follows a undergone three bull markets. The opposite of a bull
downward move in an asset’s price, often through an market is a bear market.
identifiable level of support and further below. Business Logic Layer (BLL)
Breakdowns are characterized by heavy volume, a
rapid decline, and severe magnitude. Breakdowns can Within a programming context, the business logic
be identified by technical indicators like charting layer (BLL) determines how data a software program
patterns, trendlines, and moving averages. interacts with can be created, altered, and stored. The
business logic layer coordinates data between the
BRIDGES program’s user interface (UI) and data access layer
Bridges allow independent blockchains to (DAL), although in some programs the UI interacts
communicate with each other. On the Polkadot directly with the DAL.
network, bridges are used to attach parachains and
the main Relay Chain to other external blockchain BUY SIDE/SELL SIDE
networks such as Bitcoin and Ethereum. Polkadot data Buy side and sell side refers to the buyers and sellers
transmits from its main Relay Chain to parachains, in a market who are connected by an order
attached to which collator nodes assemble all the management system (OMS). The buy side is typically
transactions. Collator nodes communicate via a bridge fund managers whose job is to pick high-alpha
to connect to external blockchain networks. securities for their portfolios. The sell side is typically
Brokerage Account trading floors at investment banks. Rapid and
14
concurrent trades between the buy side and sell side transactions-per-second (TPS) throughput, and an
are facilitated by advanced OMS technology energy-efficient consensus mechanism called
protocols. Ouroboros. ADA, the native token of the Cardano
network, is used to facilitate transactions and smart
BYZANTINE FAULT TOLERANCE (BFT) contract execution.
Byzantine Fault Tolerance refers to a blockchain
network's ability to reach consensus and continue CASASCIUS COINS
operating even if some of the nodes in the network Casascius Coins were physical bitcoin products sold
fail to respond or respond with incorrect information. until 2013. Made of metal, Casascius Coins had a
A network that is Byzantine Fault Tolerant solves the tamper-resistant sticker concealing the private key
Byzantine Generals Problem, a situation in which all and could be physically exchanged. The coins came
parties must agree but one or more parties are preloaded with fixed amounts of 1, 10, 25, 100, and
unreliable. Most actively used consensus mechanisms 1000 bitcoins. Unredeemed versions of Casascius
are Byzantine Fault Tolerant. Coins are highly valued on the collector’s market and
sell for a large
BYZANTINE FAULT TOLERANCE DELEGATED PROOF premium.
OF STAKE (BFT-DPOS)
CASHFUSION
Byzantine Fault Tolerance Delegated Proof of Stake CashFusion is a privacy tool for concealing Bitcoin
(BFT-DPoS) is the primary consensus mechanism that Cash transactions. It is an improvement on the
runs the EOS and ICON blockchain ecosystems. BFT- CashShuffle tool with enhanced privacy
DPoS is a highly-performant consensus mechanism characteristics. Improvements include a higher max
that makes use of data passing between parties amount that can be shuffled, the ability to “shuffle” or
without an intermediary. It is composed of the two “fuse” different amounts than other participants, and
main layers that work together: Asynchronous more UTXO combinations, thus making transactions
Byzantine Fault Tolerance (aBFT) to propagate and much more difficult to trace. Tor is also built into the
validate block production, and Delegated Proof of CashFusion protocol to mask user IP addresses.
Stake (DPoS) for block producer voting and
scheduling. CASHSHUFFLE
CashShuffle is a privacy tool for concealing Bitcoin
C++ Cash transactions. The process involves many users
C++ is a widely used, general-purpose programming combining their funds into one large transaction,
language. An extension of the C programming which is then sent back to the users in a way that
language, C++ is commonly used as a compiled hides their transaction paths. CashShuffle is a version
language (as opposed to an interpreted language) and of CoinJoin that works on the Bitcoin Cash protocol.
can be used on many different platforms.
CASPIAN (CSP)
CALL OPTION Caspian (CSP) is a cryptocurrency trading platform
A call option contract gives an investor the right, but designed for institutional traders. The platform
not the obligation, to purchase an underlying security provides users with an order and execution
at a specified price within a defined period of time. management system (OEMS), position management
When the option expires, the investor can choose to system (PMS), risk management system (RMS), and
buy the underlying security or let the options contract tools for compliance and reporting requirements. CSP
become void. Call options are traded on exchanges as is an ERC-20 token that can be staked to earn
a derivative, and can be used for speculation, income, discounts on the Caspian platform.
or trading strategies like hedging.
CBOE OPTIONS EXCHANGE
CALL PROVISION The Cboe Options Exchange is the world’s largest
A call provision on a bond or other fixed-income exchange for futures and options trading. Established
investment product is an option allowing the issuer to in 1973, Cboe offers derivative options related to
repurchase and retire the bond. The call may be several products, including equities, indexes, and
triggered by a set price, or may be limited by a specific funds. Exchange-traded funds (ETFs) and exchange-
time period. A bond with a call provision pays a higher traded Notes (ETNs) are also traded on the Cboe
interest rate than a noncallable bond. Options Exchange. Along with the Chicago Mercantile
Exchange (CME), the Cboe Options Exchange launched
CARDANO (ADA) Bitcoin futures trading in 2017.
Cardano is a Proof-of-Stake blockchain platform with
smart contract functionality. In particular, Cardano is Celo
noted for its focus on academic reserach, high
15
Celo is a mobile-first blockchain payments platform components in the system: NET, RAM, Vote, and
that makes cryptocurrency and financial services Stake.
accessible to anyone with a smartphone. Celo intends
to build decentralized finance instruments that do not CERBER RANSOMWARE
require the technical knowledge of many of today’s Cerber ransomware is a type of malware that locks
leading applications. Launched by Silicon Valley and encrypts a victim’s files until a ransom is paid.
startup cLabs, Celo is a fork of the Ethereum Cerber ransomware became notorious for its
blockchain that is specialized to create and distribute ransomware-as-a-service model, which enables
a suite of stablecoins backed by fiat currencies, malware creators to sell their services to other
particular localities, and even natural resources. Celo cybercriminals in return for a cut of the profit earned
is governed by the holders of its native asset, CELO. via the attacks.

CENSORSHIP RESISTANCE CERTIFICATES OF DEPOSIT (CDs)

Censorship resistance refers to a blockchain network’s A Certificates of Deposit (CD) is a type of savings
ability to remain tamper-proof. A sufficiently account that holds a fixed amount of money for a
decentralized blockchain network transparently fixed period of time in exchange for interest paid by
distributes data across a wide range of computers, the issuing bank. Common time periods for a CD are
which makes censorship extremely difficult. The six months, one year, or five years.
transparent and decentralized nature of blockchains
makes them highly resistant to external modifications. CHAINLINK (LINK)
Chainlink is a decentralized oracle network that
CENTRAL BANK provides real-world data to smart contracts on the
A central bank controls the monetary policy and blockchain. LINK is the digital asset token used to pay
currency of a nation-state. Central banks function as for services on the network.
the bank of government, and have the power to set
interest rates and the money supply. The Federal CHANGE ADDRESS
Reserve is the central bank of the United States. A crypto transaction has an input address, output
Central Bank Digital Currency (CBDC) address, and change output, which represents the
information transacted. The change output is the
A central bank digital currency (CBDC) is a digital difference between the input or output, or the
version of a country's fiat currency. It is centralized “change” leftover. The change address is where the
and regulated by a country's monetary authority. change output is sent.

CENTRALIZATION CHICAGO MERCANTILE EXCHANGE (CME)

Centralization refers to the consolidation of control, The Chicago Mercantile Exchange (CME) is a
authority, and access by a person or group. In a marketplace for derivative financial contracts. The
blockchain context, centralization refers to the level of Chicago-based exchange was founded in 1898 and is
privilege and distribution of nodes verifying and now one of the biggest global derivatives markets in
managing the network. Blockchains relying on the world. In 2017, the CME launched the trade of
powerful ‘super nodes’ or nodes concentrated in a bitcoin futures contracts.
limited geographical area are considered more
centralized. CHILDCHAIN
A childchain is a scalable blockchain on the OMG
CENTRALIZED EXCHANGE (CEX) Network which is anchored to Ethereum. OMG’s
A centralized exchange (CEX) is a centrally controlled scaling solution optimizes the speed of the Ethereum
platform used to trade crypto assets. Centralized network by moving transactions off of the Ethereum
exchanges act as intermediaries between buyers and main chain and onto childchains. The childchain does
sellers. These platforms are custodians of user data not hold users’ funds and it relies on the Ethereum
and funds. blockchain and a decentralized network of watchers
for its security. Childchains are different from
CENTRAL PROCESSING UNIT (CPU) sidechains in that sidechains have their own security
A Central Processing Unit (CPU), or main processor, is mechanisms and custody users’ funds.
the most powerful component of the electronic
circuitry inside a computerized system. The Central CIPHERTEXT
Processing Unit (CPU) processes essential logic, Ciphertext refers to encrypted text that is unreadable
arithmetic, and input and output operations specified without authorized access. Plaintext is transformed
by the instructions of the operating system of a into ciphertext via an encryption algorithm. Only
computer. In the case of EOS and EOSIO, the CPU is those who are authorized to access the data should be
part of the eos.system alongside 4 other core
16
able to decrypt the ciphertext back into readable COIN MIXER
plaintext. A coin mixer is a software or service that mixes the
cryptocurrencies of many different users to preserve
CIRCULATING SUPPLY privacy and anonymity despite the public ledger of
The circulating supply is the total number of tokens of blockchain networks. Coin mixing increases the
a specific cryptocurrency that are available in the challenge of tracking transactions, and has been found
market. The circulating supply includes all tokens evident in dark web activities and money laundering
locked in decentralized applications and held on in addition to its legal uses.
crypto exchanges or in user wallets. The circulation
supply is different from the total supply, which is the COIN SWAP (OR TOKEN SWAP)
total amount of tokens that will ever be created. A coin swap or token swap is the process of a platform
replacing an existing token with a significantly
CLEARING updated token. The new token is designed to give the
As it relates to the banking and finance industry, protocol significant increased utility needed to further
clearing is the process of settling a financial trade or expand the project and distributed to wallet holders,
purchase of an asset by correctly and efficiently while the pre-existing token is voided.
transferring funds to the seller, and in return, by
transferring the corresponding asset to the buyer. COLD STORAGE
Typically, a specialized organization acts as an Cold storage refers to the offline storage of a
intermediary in the clearing process to both buyer and cryptocurrency wallet. "Offline" means that the wallet
seller to ensure procedure and finalization. The is disconnected from the internet, preventing hackers
interrelated processes of clearing and settlement are from accessing it. Cold storage is considered to be the
what make up the post-trade process. most secure way to hold crypto assets.

CLEOS COMMAND LINE INTERFACE (CLI) COLD WALLET

The Cleos Command Line Interface (CLI) utilizes lines A cold wallet is a cryptocurrency wallet that is not
of text to process commands on the EOSIO blockchain connected to the internet. Cold wallets most often
platform. Cleos simplifies the development process come in the form of hardware wallets, which are
for software engineers by giving them access to physical devices that store private keys. Cold wallets
specific developer tools to interact with EOS stand in contrast to hot wallets, which are connected
blockchains. The CLI is used for reading data from the to the internet.
blockchain, sending new transactions, and to test and
deploy smart contracts. Cleos interacts with Keosd, COLLATERAL
Nodeos and other components of the EOSIO Collateral refers to an asset that is offered as security
ecosystem. for repayment of a loan, to be forfeited in the event of
a default (a situation in which an individual is unable
CLOSED LOOP PAYMENT NETWORK to pay back a loan). When borrowing money on a DeFi
Closed loop payment networks are those in which a lending platform, collateral in the form of a token
consumer loads money into an account that can only must be locked. The collateral is returned upon
be used with specific merchants, whereas open loop repayment of the loan. If the loan is not repaid, the
payment networks allow consumers to use money collateral remains locked on the platform.
stored in a centralized wallet for multiple merchants.
Closed loop networks cut out several middlemen in a COLLATERAL FACTOR
payments transaction, reducing transactions fees and The collateral factor is the amount of collateral
speeding up settlement. Flexa utilizes a closed loop required for a given amount of debt. It represents the
payment network architecture. maximum amount a user can borrow based on
collateral provided. The collateral factor, sometimes
COINJOIN referred to as the collateral ratio, is commonly used
CoinJoin was originally developed as a privacy tool for on DeFi lending platforms such as Compound,
concealing a user’s Bitcoin transactions. "CoinJoining" MakerDAO, and Aave, which rely on over-
involves many users combining their funds into one collateralized loans. When the value of a user’s
large transaction, which is then sent back to them in a collateral falls below the collateral factor, the user
way that hides their transaction paths. CoinJoin is a risks their collateral being liquidated or sold off to
non-custodial solution, which means users never lose repay a portion of the loan.
control of their funds during the CoinJoining process.
Different versions and variations of CoinJoin can now COLLATERALIZATION
be found on multiple protocols outside of Bitcoin. Collateralization is the use of one asset to back the
value of another asset. With crypto, the process

17
requires the storing and locking of the collateralized command line — especially for software development
assets within a blockchain protocol. and other technical processes.
Collateralized Debt Position (CDP)
COMMODITIES
On the Maker platform, a collateralized debt position Commodities are raw materials that are fungible or
(CDP) is created when a borrower provides interchangeable for like-goods. Commodities range
cryptocurrency as collateral in order to mint or from agricultural goods like wheat and sugar to hard
borrow the DAI stablecoin. The value of the collateral metals like gold, copper, and silicon. Gold is
in a CDP must always remain above a certain considered a highly fungible commodity because it
minimum requirement or else risk liquidation. In the can be easily exchanged regardless of the source or
event of liquidation, the collateral in the CDP is sold in producer.
order to repay a portion of the DAI debt. The
collateral in the CDP can be returned when the DAI is COMMODITY-BACKED STABLECOIN
repaid by the borrower. Commodity-backed stablecoins are pegged to the
value of underlying commodity assets like gold, silver,
COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS) or real estate. Holders of these stablecoins have a
Collateralized mortgage obligations (CMOs) are claim to their underlying assets. The most popular
complex debt instruments that consist of many commodity-backed stablecoins are backed by gold.
mortgages bundled together and are sold as a single For example, each PAX Gold (PAXG) token is pegged
investment. CMOs are organized according to their on a 1:1 ratio to one troy ounce (t oz) of a 400-ounce
risk profiles. They are similar to collateralized debt London Good Delivery gold bar.
obligations (CDOs) and are believed to be a
contributing factor in the 2007-2009 global financial COMMUNITY NODE
crisis. Within the Crypto.com blockchain ecosystem,
Community Nodes responsible for sending, verifying,
COLLATORS and receiving transactions, as well as reading data on
Collators are full nodes on the Polkadot Network that the protocol. Community Nodes can accessed for use
are present both on parachains and the main Relay by any member of the Crypto.com community.
Chain. Their main purpose is to maintain parachains
(which are sovereign blockchains or specialized COMMUNITY REPRESENTATIVES (C-REPS)
shards) by collecting parachain transactions and On the ICON Network, Community Representatives (C-
producing state transition proofs (essentially machine- Reps) represent one of the two main types of Peer
driven progress reports) for validators on the Relay nodes (the other being P-Reps) that are responsible
Chain. Collators can access all state transition for maintaining network security and consensus. C-
information necessary for authoring new blocks and Reps represent the community interests of enterprise
executing transactions — much like how miners and governmental constituents like hospitals,
provide value in a Proof-of-Work system. Collators are government entities, financial markets, and corporate
also used to send and receive messages from other entities.
parachains, facilitating communication through Cross-
Chain Message Passing (XCMP). COMPLIANCE
Compliance is the process of ensuring financial
COMBOLIST enterprises meet certain regulatory guidelines
A combolist is a text file which lists out usernames and introduced by government bodies, such as the
passwords in a machine-readable format. The file is Securities and Exchange Commission (SEC) in the U.S.
used as an input for an account-checker tool that can These guidelines seek to protect investors, ensure
automate authentication requests to a website, online consumer confidence, facilitate the transparency,
service provider, or API. Combolists are often created efficiency, and fairness of markets while reduce
following an online data breach and packaged and financial crime and system risk.
sold by hackers to other malicious actors.
COMPOSABILITY
COMMAND LINE INTERFACE (CLI) Composability is a design feature that accomodates
A Command Line Interface (CLI) is a system that for infrastructural elements of a system to be easily
utilizes lines of text to process commands for a integrated with and utilized by other systems and
specialized computer program. The interface used to third parties. Composable systems are often
execute command line instructions is called a compared to “Lego blocks” because they are built of
command-line-processor or command-line- various parts that can be fit together to create new
interpreter. Most applications utilize menu-driven or platforms.
graphical user interfaces but some still use a

18
COMPOUND some benefits of distributed systems for use cases like
Compound is a decentralized lending and borrowing enterprise and government.
platform for digital assets on Ethereum. Borrowers on
Compound are required to provide a minimum CONSTANT PRODUCT FORMULA
amount of collateral to access a loan, while interest A constant product formula is an algorithm used to
rates are determined by crowdsourced token supply. determine the price of tokens on an automated
Tokens locked in the Compound protocol market maker (AMM) platform. The formula
automatically earn interest as they are lent out to maintains that tokens in a liquidity pool must remain
borrowers. at a fixed relative value. The most well-known formula
is x * y = k, pioneered by the Uniswap protocol, which
COMP TOKEN maintains that a pair of tokens in a liquidity pool must
COMP is the governance token of the Compound remain at equal total values. By fixing the relative
protocol, a decentralized, blockchain-based protocol value of the tokens, the formula is able to
that allows you to lend and borrow crypto. A automatically determine pricing.
predetermined amount of COMP is distributed to all
lenders and borrowers on the Compound protocol CONTINUOUS ORDER BOOK
every day. Anyone who owns at least 1% of the total A continuous order book is a listing of parties
COMP supply can submit and vote on proposals to interested in buying or selling an asset on a market.
change the protocol. The list specifies the quantities and prices each buyer
or seller is willing to accept for an exchange. A
COMPUTATIONAL BACKLOG matching engine is concurrently used to pair the
Computational backlog (or debt) is defined as a set of buyers and sellers, while the order book is updated in
calculations that must be completed to bring a real time.
backlog on the EOSIO blockchain up to date.
Computational backlog occurs when a computer CONTRACT SEPARATION
system or a blockchain network accumulates too Contract separation is a key design logic that
much computational debt. This is a highly undesirable underpins the Gemini dollar (GUSD) smart contract.
situation for a blockchain, because it can result in Instead of a single unifying smart contract, Gemini
deteriorating system performance, including dollar contracts are separated into multiple layers,
significant transaction time delays. Computational each with a specific function. Contact separation
backlog must be managed efficiently to maintain the increases the security and robustness of smart
long-term health of the network. To help prevent contracts within GUSD’s protocol.
computational backlog from happening, EOSIO block
producers publish the network's available capacity for COORDINATOR
computation, state, and bandwidth. A coordinator is a centralized master node on the
IOTA DAG network that curates and approves all
CONCEALMENT transactions. Because IOTA relies on centralized
Concealment is a category of malware that attacks master nodes, the network is not considered to be
computer systems by evading detection. Common fully decentralized. IOTA’s roadmap has a plan called
types of concealment malware include Trojans, “Coordicide”, which attempts to minimize the role of
backdoors, and rootkits. the coordinator while still providing a secure network.

CONSENSUS MECHANISM CORPORATE BOND

A consensus mechanism is an algorithm that A corporate bond is a debt security a company issues
participants in a blockchain network use to reach an in order to raise capital that can be traded on the
agreement on the state of the blockchain ledger, secondary market. Purchasers of corporate bonds
including the order of transactions. Popular consensus effectively lend money to the issuing company in
algorithms include Proof-of-Work (PoW), Proof-of- return for a series of interest payments. Rating
Stake (PoS), and Delegated Proof-of-Stake (DPoS). agencies like Moody's, Standard & Poor's, and Fitch
evaluate the creditworthiness of corporate bonds.
CONSORTIUM BLOCKCHAIN
A consortium blockchain is a private network COSMOS (ATOM)
managed by multiple entities, wherein each retains Cosmos is a platform designed to connect
special privileges. Controlling entities typically independent blockchain networks. The platform
participate in the consensus process as a transaction facilitates data transfer between different blockchains
validator and have permissions to view certain types to facilitate what is referred to as the ‘internet of
of data. Consortium blockchains are a less blockchains’. ATOM is the native token of the Cosmos
decentralized digital ledger technology that maintains network, and it is used for transaction payments,
governance voting, and staking to secure the network.
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COSMOS HUB CREDIT RISK
The Cosmos Hub is the primary blockchain protocol Credit risk refers to the loss potential of a borrower
used for connecting with other blockchains as part of failing to repay a loan. In a fixed-income investment
the Cosmos Network's endeavor to facilitate an agreement, interest payments are meant as an
'internet of blockchains'. The Cosmos Hub is a Proof- incentive for an investor to assume credit risk. Higher
of-Stake blockchain built by the Tendermint team. Its interest rates tend to compensate for greater credit
ATOM token is used to both secure the network risk.
through staking and vote on governance decisions.
CRO
COSMOS SDK CRO is the foundational utility token that drives
The Cosmos SDK is a framework that allows Crypto.com’s ecosystem of payment, trading, and
developers to build Proof-of-Stake and Proof-of- financial services. The CRO token is utilized for on-
Authority blockchains. The framework is designed to chain transaction settlement, and to ensure the
construct application-specific blockchains rather than consensus and security of the platform. CRO is also
more generalized virtual machine-based blockchains. designed to be used as an incentivization mechanism
The Cosmos SDK is a scalable, open-source by providing rewards for users who engage with
infrastructure, and is used to build blockchain various services within the Crypto.com ecosystem.
platforms such as the Cosmos Hub. Cross-Chain and Cross-Chain Message Passing

COST BASIS (XCMP)

The cost basis is the reported starting value of a Cross-chain describes the transfer of data, tokenized
particular asset such as a cryptocurrency that you assets, or other types of information from one
own. The cost basis can be the price of the asset on independent blockchain network to another. On the
either the date of purchase, or the date the asset was Polkadot network, XCMP is a specialized mechanism
received. When the asset is sold, the cost basis is used to send information between different
subtracted from the sale price to determine the blockchains linked together on Polkadot’s
monetary gain or loss. interoperable network. The XCMP system relies on
Council Node Polkadot’s collator nodes to route messages between
Council Nodes are the most powerful and important blockchains.
nodes within the Crypto.com blockchain system. They
are responsible for maintaining network consensus CRV TOKEN
and governance of the platform. Council nodes are The CRV token is the ERC-20 token that governs the
used for settlement execution, ordering transactions Curve protocol. CRV token holders have the ability to
and CRO rewards tracking, along with verifying, propose and vote on changes to the platform. The
receiving, and sending all network transactions. CRV token can be earned by providing liquidity to
Council Nodes also maintain a whitelist log for Council designated Curve liquidity pools.
Node, Acquirer Node, and Community Node
Identities. CRYPTO-BACKED LOAN
Counterparty Risk A crypto-backed loan lives on the blockchain and
Counterparty risks refers to the possibility that a party requires borrowers provide cryptocurrency as
involved in a transaction will fail to meet their collateral. When borrowers pay back into the smart
obligations. Various measures can be put in place to contract, they receive their collateral.
mitigate counterparty risk. One such measure is a
smart contract, which is only automatically executed Crypto-Backed Stablecoin Crypto-backed stablecoins
once certain conditions have been met. are one of four main types of stablecoins. They are
Coupon Payment pegged to the value of an underlying cryptocurrency
In a corporate bond, a coupon (or coupon payment) is asset (rather than a fiat currency, for example). With
the dollar amount of interest paid to an investor. It is cryptocurrency as their underlying collateral, crypto-
calculated by multiplying the interest rate of the bond backed stablecoins are issued on-chain. To obtain a
by its face value. crypto-backed stablecoin, a user locks their
Credit Rating cryptocurrency in a smart contract to receive tokens
A credit rating is an analysis of the credit risks of equal representative value to their underlying
associated with a financial entity. A credit rating may collateral. Paying the stablecoins back into the same
be assigned to any entity that seeks to borrow money smart contract allows a user to withdraw their original
— a corporation, individual, state authority, or collateral. DAI is the most prominent stablecoin in this
sovereign government. Credit ratings assess the ability category.
of a borrower to repay a loan — either in general, or
for a particular debt or financial obligation.
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CRYPTO-COLLATERALIZED LOAN Cryptocurrency Mixers and Tumblers
Crypto-collateralized loans are a type of loan where Cryptocurrency mixers and tumblers provide a
the issuer takes an cryptocurrency deposit as custodial mixing service where a user deposits
collateral to issue a loan in another cryptocurrency or cryptocurrency to be mixed for privacy reasons.
fiat currency. The borrower must typically deposit a Although coin mixing doesn’t guarantee complete
higher amount of initial cryptocurrency to provide a privacy, it makes tracing transactions more difficult.
buffer against the market volatility common to digital These services are sometimes used to launder “dirty
assets. These types of loans are designed so that a coins,” which are garnered through criminal activity.
borrower can access fiat liquidity while still This is done by mixing dirty coins with coins from
maintaining ownership of their digital assets in order different wallets, then transfering the “cleaned” coins
to avoid taxable events (such as a sale) or missing out to another wallet. While cryptocurrency mixers are
on market appreciation. Since these loans are also used for non-criminal purposes, some countries
collateralized (often overly so), they are commonly have cracked down on their use altogether. Service
processed extremely quickly (sometimes in minutes) providers typically charge a 1-3% fee for this type of
without the need for traditional credit checks. service. These services seem to be waning in
popularity as newer, non-custodial options have
CRYPTO.COM appeared.
Crypto.com is a cryptocurrency payments platform
that promotes the widespread adoption of CRYPTOCURRENCY PAIRS
cryptocurrency. The site initially ran on a dual-token A trading pair refers to the matching of a buy order
structure that used two different native tokens, and a sell order for any type of asset. When a trading
Monaco Coin (MCO) and Crypto.com Chain Token pair is available for cryptocurrencies, it means that
(CRO). However, in late 2020 the platform completed you can view the value of one cryptocurrency asset
a token swap which consolidated the network under relative to another cryptocurrency asset. This is most
the CRO token, which is now used as the platform's typically available with bitcoin (BTC) and allows you to
primary payment token for cross-asset settlements, see how much a given asset is worth in BTC instead of,
block transaction fees and validation rewards, and as say, a fiat currency. Cryptocurrency pairs help
a staking mechanism to unlock tiered user benefits. establish value between cryptocurrencies without
referring back to fiat currency.
CRYPTOCURRENCY
Cryptocurrency is a digital asset that circulates on the CRYPTOCURRENCY WALLET
internet as a medium of exchange. It employs Cryptocurrency wallets come in a variety of forms,
blockchain technology — a distributed ledger of their most basic function is to store a user’s private
transactions that is publicly available — and is secured and public keys and interact with various blockchains
by advanced cryptography. This revolutionary asset enabling users to send and receive digital currency
architecture allows for certainty that cryptocurrency and monitor their cryptocurrency balances. Wallets
coins and tokens cannot be double-spent even in the have a public address that can be given out for people
absence of a centralized intermediary. The first to send you digital assets, and a private key to confirm
cryptocurrency to acheive mainstream success was the transfer of digital assets to others. Wallets can be
Bitcoin which paved the way for the proliferation of digital (software) or physical (hardware), hot
many other cryptocurrencies. (connected to the internet) or cold (disconnected
from the internet), custodial (a trusted third party has
CRYPTOCURRENCY EXCHANGE control of a user’s private keys) or non-custodial (only
A cryptocurrency exchange is a type of digital currency the user controls their private keys).
exchange where digital assets can be bought, sold,
and traded for fiat currency or other digital assets. CRYPTODEFENSE RANSOMWARE
They are similar to mainstream exchanges where CryptoDefense in an advanced subset of CryptoLocker
traditional stocks are bought and sold in the type of Ransomware that appeared around 2014. It used
transactions and orders that users can execute. public-key cryptography, and targeted computers
Cryptocurrency exchanges have evolved significantly running the Windows operating system. The infection
from the earliest iterations (which were often was spread through spam emails with infected PDF
unregulated) to provide more security and documents. Victims were often given 72 hours to pay
accessibility and ensure legal compliance in ransom, collected largely in Bitcoin, in order to regain
accordance with the jurisdictions in which they access to their infected files which would otherwise
operate. As the cryptocurrency space continues to be permanently deleted.
grow, more exchanges have emerged which provide
competitive trading fees, exchange rates, and user- CRYPTOGRAPHIC PROOFS
friendly features as they vie for more users and Cryptographic proofs are commonly built into
trading volume. blockchain networks that seek to hide sensitive
21
information. Cryptographic proofs are used to prove for use within existing blockchain ecosystems. Crypto
and verify certain data without revealing any other tokens can be programmable, transparent,
details about the data itself. They are designed to permissionless, and trustless. They can also serve
conceal details such as ownership and other sensitive many functions on the platforms for which they are
data from other parties that participate in the built, including being used as collateral in
network. zk-SNARKS are one of the most effective and decentralized financial (DeFi) applications, accessing
well-known types of cryptographic proofs. platform-specific services, voting on DeFi protocols
and even taking part in games.
CRYPTOJACKING
Cryptojacking refers to a type of attack where the CRYPTOWALL RANSOMWARE
victim's computer, or other hardware, is turned into a CryptoWall is an advanced subset of CryptoLocker
cryptocurrency mining device without their Ransomware that first appeared around 2014. It used
knowledge. Victims' devices and electricity are then a sophisticated encryption algorithm and spread
used to generate cryptocurrency mining rewards on through email attachments, exploit kits, and drive-by
behalf of the attacker. Cryptojacking can be carried downloads. In order for a user to regain access to
out remotely through malware or by someone with their infected files, ransom was demanded in Bitcoin
direct physical access to the device. and Litecoin.

CRYPTOKITTIES CTOKENS
Cryptokitties is a blockchain game created by Axiom cTokens are the lending tokens native to the
Zen in 2017. The game allows players to purchase, Compound DeFi platform. When users deposit a
sell, and breed digital collectible cats that are ERC721 cryptocurrency using the Compound protocol, they
tokens, also called non-fungible tokens (NFTs). receive cTokens which represent the initial deposit
plus accrued interest. For example, lending DAI to
CRYPTOLOCKER RANSOMWARE Compound gives the lender cDAI, which automatically
CryptoLocker Ransomware is a type of ransomware earns interest for the cDAI holder. At any time, cDAI
that first appeared around 2013. It infiltrated can be returned to Compound in exchange for the
computers through spam emails, which included an original DAI plus the accumulated interest.
infected ZIP file as attachment, in its first wave of
attacks. Attackers used encryption algorithms to CURRENCY CRISIS
encrypt infected files and systems, which then spread A currency crisis is a type of financial crisis
to other devices through network drives. A second characterized by a nation's fiat currency losing its
version of CryptoLocker was spread through the peer- value. A currency crisis arises when investors become
to-peer botnet Gameover ZeuS, which used a botnet leery of holding a country's assets. For example, when
to send spam or fake emails that would lure victims investors lost confidence in the Icelandic financial
into executing exploit kits. sector, the country faced a currency crisis when the
value of Icelandic currency fell by 60% between the
CRYPTOMINING end of 2007 and the end of 2008.
Cryptocurrency mining is the process of solving
equations in a Proof-of-Work consensus mechanism CURVE (CRV)
to verify transactions and add new blocks to the Curve is a DeFi cryptocurrency exchange optimized for
blockchain. Computers that support a blockchain low slippage and low fee swaps between assets
network are called nodes, and the process by which pegged to the same value. Curve is an automated
they solve complex equations is called mining. Miners market maker (AMM) that relies on liquidity pools and
are those who operate these computers. For their rewarding those who fund the pools, and deals only in
efforts, they are compensated with a mining reward, stablecoins. CRV is the governance token of Curve,
typically in the blockchain’s native cryptocurrency. and is also used to pay liquidity providers.

CRYPTO RANSOMWARE CUSTODIAL WALLET

Crypto ransomware uses encryption to maliciously A custodial wallet is a type of cryptocurrency wallet
block access to a user’s data. Victims of a crypto where a third party holds a user's private keys and
ransomware attack are told to pay a ransom in return cryptocurrency funds. With a custodial wallet, a user
for releasing their locked data. In recent years, must trust a third party to secure their funds and
attackers have demanded ransoms to be paid in return them upon request. The most common
cryptocurrencies such as bitcoin. custodial wallets are web-based exchange wallets.

CRYPTO TOKEN CUSTODIAN

A crypto token is a blockchain-based unit of value that A custodian is responsible for securely storing assets,
organizations or projects can customize and develop such as cryptocurrency, for another institution or
22
individual. Typically, custodial services are targeted at software, electronic data, and curtailing disruption of
institutional investors who hold large amounts of the services they provide. The importance of robust
cryptocurrency. Custodians are often exchanges that cybersecurity continues to increase as the world
host cryptocurrency wallets for their users. becomes more technologically reliant on computers,
mobile devices, Wi-Fi, wireless networks, smart
CUSTODY devices, the Internet of Things (IoT), and related
Custody refers to the legal ability for a financial technologies due to their susceptibility to security
institution to hold and protect financial assets for its breaches and hacks.
customers with the aim of preventing asset theft or
loss. Custodians may hold assets in both electronic DAEMON
and physical form. Because they are responsible for A daemon is a computer program that runs as a
safeguarding assets for many customers (potentially background process on a computing device rather
worth billions of dollars), custodial firms tend to be than being controlled by an interactive user. Daemons
extremely large and reputable institutions. With are usually initiated upon booting up the computer,
cryptocurrency and blockchain custody solutions, rather than being activated manually. They typically
custodianship may also include the management and control functions like responding to network requests
safekeeping of a customer’s private keys. and detecting hardware activity.
Cryptocurrency exchanges often custody their
customers' private keys and cryptocurrency holdings.
DAI
CUSTOMER DUE DILIGENCE (CDD) DAI is an ERC-20 stablecoin token released by the
Customer Due Diligence (CDD) is the process of Ethereum-based MakerDAO protocol that is used to
verifying the identity of potential customers. Typically facilitate collateral-backed loans without an
this process gathers facts about potential customers intermediary. DAI is pegged to the US dollar in a 1:1
enabling an organization to assess the extent to which ratio so that each DAI should always be worth $1 USD.
the customer may expose the organization to a range DAI is a decentralized crypto-backed stablecoin, and
of risks, including money laundering and terrorist thus maintains its USD peg by using collateral in the
financing activities. This process usually entails form of cryptocurrencies like ETH.
obtaining a customer's name, residential address, and
official government documentation that includes their DAPPCHAIN
photograph and date of birth. On the Loom Network, a dAppChain is a dApp-specific
transaction sidechain built on top of the base
CUSTOMER IDENTIFICATION PROGRAM (CIP) Ethereum blockchain to maximize efficiency. A
Established by the U.S. Patriot Act of 2001 and dAppChain can handle complex processing tasks and
implemented in 2003, the Customer Identification even host entire dApps, all while minimally interacting
Program (CIP) prescribes the minimum standards with with the base layer blockchain to which it is anchored.
which financial institutions must confirm the identity Applications developed using the Loom Network
of a new customer in connection with opening an feature a unique dAppChain to carry out distinct
account. Each financial institution's CIP is proportional consensus model, protocols, and optimizations.
to the its size and type of business, types of accounts
offered, methods of opening accounts, and other DARKNODES
factors. The objective of this program is to minimize RenVM is an inter-blockchain liquidity network made
the degree to which the U.S. financial system is used up of thousands of independently operated nodes
for money laundering and terrorist financing activities. called Darknodes. Anyone can run a Darknode, but
each node must run the RenVM software via a Virtual
CYBER ATTACK Private Server and deposit 100,000 REN tokens into
A cyber attack is a malicious online data intrusion the Darknode Registry Contract. This mechanism
carried out by criminals against a computer system, incentivizes the node operators to refrain from
network, or related software or hardware device. malicious behavior at the risk of forfeiting their
Cyber attacks are used to disable a target network or deposit. Darknodes collectively act as a trustless,
computer system, steal or destroy important data, to decentralized custodian of the digital assets that users
compromise computers to launch even more complex lock up on the RenVM platform, and collect fees every
and damaging attacks. time RenVM converts a digital asset into an ERC-20
token.
CYBERSECURITY
Cybersecurity — also referred to as computer security DARK WEB
or information technology (IT) security — is the The dark web is a segment of the internet
practice of protecting computer networks and intentionally hidden from conventional search engines
systems from damage and theft of hardware, and only accessible by means of special software. The
23
most common web browsers used to access the dark DEATH CROSS
web are Tor and I2P, which use masked IP addresses A death cross is a bearish technical trading signal in
in order to hide the identity of dark web users and site which the 50-day moving average crosses below the
owners. The dark web is typically associated with 200-day moving average, typically triggering a major
cybercrime and illicit activity. The dark web sell-off. It is the opposite of a Golden Cross trading
constitutes a small sliver of the larger deep web, signal, and has been evident prior to many of the
which is also hidden from conventional search largest stock market crashes in history.
engines, but is not generally associated with illicit
activity. DEBT INSTRUMENT
A debt instrument is a tool that an individual,
government, or business entity can use to obtain
DATA PACKET capital. Credit cards, credit lines, loans, and bonds can
A data packet is a unit of data that can be transferred all be types of debt instruments. The term debt
over a network. They are usually measured in instrument is used primarily for institutions that are
megabytes (MB) or gigabytes (GB). A live internet trying to raise capital, usually in the form of a
connection contains a constant back-and-forth revolving line of credit that is not typically associated
exchange of data packets. with a primary or secondary market. More complex
debt instruments involve an advanced contract
DATA SCRAPING structure and the involvement of multiple lenders or
Data scraping, also known as web scraping, refers to investors, usually via an organized marketplace.
methods with which computer programs extract data
from websites for use in local databases or other DECENTRALAND (MANA)
application. Data scraping is most commonly used to Decentraland is a virtual world that is integrated with
gather content, prices, or contact information from Ethereum. On the Decentraland platform, users can
online sources. While there are valid legal use cases explore a multifaceted, user-generated landscape that
for data scraping tools, the same software can also be incorporates real estate, gaming, and social media
used to download and reappropriate data for elements. MANA, an ERC-20 token, is the digital asset
unauthorized purposes, such as identifying pseudo- token used to pay for goods and services in
anonymous web service users or plagiarizing branded Decentraland, while LAND is a a non-fungible ERC-721
content. token that represents the ownership of virtual land.

DATA VERIFICATION MECHANISM (DVM) DECENTRALIZED APPLICATIONS (DAPPS)

The Data Verification Mechanism (DVM) is the oracle Decentralized applications — dApps — use blockchain
process used to resolve disputes on the UMA technology to address use cases ranging from
protocol. When there is a price dispute between two investment to lending to gaming and governance.
parties a synthetic token derivative contract, the DVM Although dApps may appear similar to web
requests UMA token holders vote on the correct price. applications in terms of UX, dApp back-end processes
The DVM then relays the correct price to the eschew centralized servers to transact in a distributed
requestor and rewards UMA token holders for their and peer-to-peer fashion. Rather than using the
vote. central HTTP protocol to communicate, dApps rely on
wallet software to interact with automated smart
DAY TRADER contracts on networks like Ethereum.
In traditional markets, day traders execute a trading
strategy that involves only holding intraday positions DECENTRALIZED AUTONOMOUS ORGANIZATION
and do not hold open positions overnight. Day traders (DAO)
attempt to take advantage of short-term price A decentralized autonomous organization (DAO) is a
fluctuations between highly liquid assets. Day trading blockchain-based organization that is democratically
is generally regarded as a riskier investment than managed by members through self-enforcing open
long-term strategies. source code and typically formalized by smart
contracts. DAOs lack centralized management
DEAD COIN structures. All decisions are voted upon by network
Dead coins are cryptocurrencies that have been stakeholders. DAOs often utilize a native utility token
abandoned by defunct projects. Several criteria are to incentivize network participation, and allocate
used to designate dead coins: inactive webpages, lack proportional voting power to stakeholders based on
of development updates, lack of active nodes, and less the size of their stake. As DAOs are built on top
than $1,000 USD trading volume over three months. blockchains — often Ethereum — their transactions
Over 1,000 dead coins have been documented as of are executed transparently on the underlying
2020. blockchain.

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DECENTRALIZED EXCHANGE (DEX) Blockchains are an example of a decentralized system:
A decentralized exchange (DEX) is a financial services the data ledger of a blockchain is distributed amongst
platform or apparatus for buying, trading, and selling all the decentralized network participants (nodes),
digital assets. on a DEX, users transact directly and which must achieve consensus on the content of the
peer-to-peer on the blockchain without a centralized data for the network to function. Without a single
intermediary. DEXs do not serve as custodians of point of authority, decentralized systems like
users' funds, and are often democratically managed blockchains also lack a single point of failure, which
with decentralized governance organization. Without means that a single damaged node cannot
a central authority charging fees for services, DEXs incapacitate the blockchain as a whole.
tend to be cheaper than their centralized Decentralized Storage Network (DSN)
counterparts. A Decentralized Storage Network (DSN) is a network
that provides peer-to-peer access to users with the
DECENTRALIZED FINANCE (DEFI) capacity to rent out their available hardware storage
Decentralized finance (DeFi) is a major growth sector space. With the help of end-to-end encryption
in blockchain that offers peer-to-peer financial techniques, clients privately transmit files peer-to-
services and technologies built on Ethereum. DeFi peer via DSNs that provide cryptographic proofs for
exchanges, loans, investments, and tokens are security. The Filecoin protocol is an example of a
significantly more transparent, permissionless, blockchain-based decentralized storage network, one
trustless, and interoperable than traditional financial that reduces the risk of data failures that can occur
services, and trend towards decentralized governance with a single centralized point of failure. On DSN
organizational methods that foster equitable platforms, smart contracts are used to formalize
stakeholder ownership. Platform composabiltiy in terms between providers and users.
DeFi has resulted in unlocking value through Delegated Proof of Contribution (DPoC)
interoperability with innovations like yield farming Delegated Proof of Contribution (DPoC) is a unique
and liquidity tokens. economic governance protocol implemented on the
ICON Network that leverages the ICON Incentives
DECENTRALIZED GOVERNANCE Scoring System (IISS). DPoC is a variant of Delegated
For blockchain networks and dApps, decentralized Proof of Stake (PoS) in that stakers delegate votes
governance refers to the processes through which the towards block validation privileges, but DPoC sees ICX
disintermediated, equitable management of a holders delegating tokens towards individuals who
platform is executed. It involves different have exercised positive participation on the network
methodologies for voting on platform tech, strategy, rather than for particular nodes. The elected entity
updates, and rules. Blockchain governance is typically then validates blocks on a delegate's behalf, and earns
conducted using two distinct systems: on-chain token rewards accordingly.
governance and off-chain governance. On-chain Delegated Proof of Stake (DPoS)
governance relies upon blockchain-based systems, Much like the more widespread Proof-of-Stake (PoS)
typically using automatic cryptographic algorithms system, Delegated Proof of Stake (or DPoS)
through the network’s computational architecture incentivizes users to confirm network data and ensure
and underlying consensus mechanism. Off-chain system security by staking collateral. However, the
governance refers to decision making that is not distinctive characteristic of DPos is its voting and
codified on the blockchain, often on online forums or delegation structure. In contrast to PoS, where nodes
face-to-face. are usually awarded the ability to process new blocks
based solely on the total amount each node stakes,
DECENTRALIZED IDENTIFIER (DID) the DPoS system allows users to delegate their own
A decentralized identifier (DID) is a form of digital stake to a node of their choosing — known as a
identification that enables the holder to prove identity delegate — and vote for the nodes to earn block
without the need for a centralized registry, identity validation access. Elected validators receive block
provider, or certificate authority. DIDs are an rewards after verifying the transactions in a block, and
emergent development, and therefore have yet to be those rewards are then shared with users who
thoroughly vetted. The establishment of a DID delegated them as validators.
standard is a crucial step towards the broad
application of true Self-Sovereign Identities (SSI). DELEGATION
Delegation refers to the contribution of some amount
DECENTRALIZED NETWORK of a cryptocurrency or token to another user for
A decentralized system is a conglomerate of participation in a network staking mechanism on
connected, but separate entities that communicate Delegated Proof-of-Stake (DPoS) blockchain protocols.
with one another without a central authority or It is useful for users who want to earn staking rewards
server. They stand in contrast to centralized systems, and participate in a network, but do not have a large
which feature a central point of governance. enough stake to meet the minimum requirements on
25
their own. DPoS intend to achieve a higher degree of are hot wallets, meaning they are connected to the
equitability and democratization through delegation internet — unless the computing device is turned off
mechanisms or the wallet is installed on an offline secondary
computer. Most desktop wallets offer password
DENIAL-OF-SERVICE (DOS) ATTACK protection and can generate a recovery phrase as a
A Denial-of-Service (DoS) attack is a type of digital backup to regenerate keys.
attack on a network that attempts to incapacitate a
system by overwhelming it with repeated requests. It DETERMINISTIC MODULE
is a malicious effort to disrupt normal traffic to a A deterministic module is a section of independent
website or other internet property to temporariy electronic circuits built into a circuit board that
crash the underlying network and make it non- provides functions on a computer system that do not
functional. feature any degree of randomness. A deterministic
module will thus always produce the same output
DEPTH LIMITED SEARCH (DLS) ALGORITHM. from a given starting condition or initial state. A
The Depth Limit Search (DLS) is a specialized blockchain-based computerized system is typically
consensus algorithm used within the Cosmos Network deterministic in nature.
blockchain. It is designed to solve the specific
technical problem of the infinite path challenge as it DIGITAL ASSET
relates to uninformed search algorithms. While the Digital asset is the catch-all term for assets that exist
DLS algorithm is very memory efficient, it suffers from digitally. The term covers a wide variety of assets,
a lack of completeness. including cryptocurrencies, utility tokens, security
tokens, digital stocks, and digital collectables. All
DERIVATIVES cryptocurrencies are digital assets, while not all digital
A derivative is a financial contract that derives its assets are cryptocurrencies.
value from underlying traits of an asset, index, or
interest rate. Futures and options contracts are DIGITAL CURRENCY ELECTRONIC PAYMENT (DCEP)
examples of derivatives. There are a variety of Digital Currency Electronic Payment, or DCEP, is
blockchain-enabled cryptocurrency derivatives, China’s central bank digital currency (CBDC) initiative.
including synthetic cryptocurrencies and bitcoin Underway since 2014, DCEP is intended to replace
futures, which represent agreements to trade bitcoin physical cash with a digital edition of China's RMB that
at a future date at a predetermined price. can be exchanged between digital wallets without
involving a bank. In contrast to decentralized
blockchains, the Chinese government will maintain
centralized authority over the platform and currency,
DESHIELDING TRANSACTIONS which has undergone a number of large-scale public
Deshielding transactions are a type of transaction trials.
used on the Zcash blockchain that are sent from a
private, anonymous sender to a public, transparent DIGITAL DOLLAR
receiver wallet. Deshielding transactions employ zk- The 'digital dollar' is the commonly used reference of
SNARK cryptographic proof technology to maintain a potential United States central bank digital currency
data privacy, despite the differing settings of sender (CBDC). United States government agencies are
and recipient. researching the potential benefits and risks associated
with creating a CBDC, but no clear path forward has
DESIGN AXIOMS (DAS) yet been indicated.
Design axiom (DA) is the term given to the critical
elements of the Crypto.com blockchain's technical DIGITAL IDENTITY
architecture. The Crypto.com technical whitepaper The NEO network establishes a digital identity for
notes six design axioms critical to the overall success each asset and user on its network. An active
of the project: state-of-the-art security architecture; a participant in the network undergoes a thorough
scalable; a fast network with high transaction identification process linking them to a traceable, real-
throughput; decentralization; upgradeability; data world identity that is compliant with regulatory
privacy; and an inclusive network design. requirements. The network creates this digital identity
through a combination of facial recognition, biometric
DESKTOP WALLET data, voice recognition, and other multi-level
A desktop wallet is a software wallet for verification mechanisms. This mechanism helps create
cryptocurrency and digital assets that is downloaded accountability and trust in the NEO network as a
directly onto a computing device. Desktop walets are whole.
almost always non-custodial in nature, which means
users control their own private keys. Desktop wallets
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DIGITAL SIGNATURE of systems against a target. In a DDoS attack,
A digital signature in cryptocurrency is the process of perpetrators use traffic from many different sources
using a private key to digitally sign a transaction. to flood a connected machine or service with requests
Through public-key cryptography, a digital signature in an effort to overwhelm its network and make it
authenticates the sender and recipient of a unavailable for use. Because multiple traffic sources
transaction. It allows anyone with the sender’s public are more difficult to identify, DDoS attacks are
key to verify the digital signature or the authenticity of significantly more challenging to combat than DoS
the message, transaction, or data. attacks.

DILUTION DISTRIBUTED LEDGER TECHNOLOGY (DLT)

Dilution is an economic term referring to the issuance Distributed Ledger Technology (DLT) refers to a shared
of new assets which decrease existing shareholders' database upon which transactions and associated
percentage of ownership. Dilution can occur with details are recorded in multiple places simultaneously.
assets ranging from stocks to cryptocurrencies. In the A DLT may be a permissioned network under control
case of cryptocurrency, dilution refers to the by a central authority, or a permissionless network
reduction in value of a single unit of currency, or the maintained by a decentralized network of nodes
market capitalization of a cryptocurrency protocol lacking a central authority. Blockchains and Directed
overall, because of the creation of new tokens. Acyclic Graphs (DAGs) are both examples of different
types of DLT.
DIRECTED ACYCLIC GRAPH (DAG)
A directed acyclic graph (DAG) is a form of Distributed DIVERSIFICATION
Ledger Technology (DLT). In contrast to a blockchain, Diversification refers to keeping a diverse investment
which groups transactions into blocks and orders portfolio of assets to protect against market turmoil.
them in a linear fashion, a DAG is a network of Different investments tend to perform differently
individual transactions themselves connected only to depending on what’s happening in the market, so
other transactions without blocks. While blockchains owning a variety of diverse assets means that when
require block validation, in a DAG, individual some lose value, others may gain value. A well-
transactions provide validation for one another. All diversified portfolio usually includes a mixture of
network users in a DAG are simultaneously miners stocks, fixed income (bonds), and commodities. A
and validators, and therefore transaction fees tend to diversified portfolio may also include one or more
be much lower than those common to blockchain crypto assets, which should also be diversified.
networks.
DIVIDEND
DIRECTIONAL TRADING Dividends are regular payments made by a stock
Directional trading refers to trading strategies in issuing company to its company's shareholders. While
which the sole factor for investment is the future not all stocks pay dividends, the exact distribution of
direction of the overall market. It is generally stock dividends is determined by a company's board
associated with options trading because different of directors. Dividends are usually paid in cash,
directional trading strategies can capitalize on moves although they are sometimes paid in new shares of
both upward and downward. additional stock.

DISCOUNTED CASH FLOW MODEL DIVIDEND REINVESTMENT PLAN (DRIP)

The discounted cash flow (DCF) model is a valuation A dividend reinvestment plan (DRIP) takes dividends
tactic that helps investors determine the present earned by investors in a company and automatically
value of an investment by estimating how much reinvests them into more stocks of that company,
money it will make in the future. DCF analysis projects often at a discounted rate. A DRIP accomodates the
future cash flows by using a series of assumptions potential for exponential earning: Dividends are
about how the company or asset will perform in the reinvested in more stock, which in turn generates
future, and then forecasting how this performance more dividends, and so on. However, investors are
translates into the cash flow generated. The future usually given the choice to reinvest their dividends or
cash flows are discounted back in a net present value cash them out befoe the DRIP initiates.
(NPV) calculation, which represents the amount an
investor should be willing to pay today for receiving DNV GL
an asset’s cash flows in the future. DNV GL is a Norwegian and German accredited
registrar and classification company that has about
DISTRIBUTED DENIAL-OF-SERVICE (DDOS) ATTACK 14,500 employees and 350 offices in more than 100
Similar to a Denial-of-Service (DoS) attack, a countries. DNV GL has a direct partnership with
Distributed Denial-of-Service (DDoS) attack is a type of VeChain to provide assurance and auditing services
malicious network offensive conducted by a number for many of the enterprises VeChain works with, and
27
provides data for supply chain management, carbon- A dusting attack is an attack in which a trace amount
neutral vehicles, logistics, natural gas, and more. of cryptocurrency, called dust, is sent to thousands —
sometimes even hundreds of thousands — of wallet
DOT COIN addresses. This attack is deployed in order to track
DOT is the native cryptocurrency of the Polkadot these addresses with the hope of “un-masking” or de-
blockchain protocol. It is used to help maintain the anonymizing them. These mass dustings may also be
security and consensus of the Polkadot Relay Chain used as stress tests, where a large amount of dust is
and other parts of the network (parachains, collators, sent in a short amount of time to test the throughput,
fishermen, and nominators). DOT can be bonded or bandwidth, of a network. Some say these dustings
through parachains, staked through validators, and are also a way to spam a network, by sending huge
used for other purposes. It is typically rewarded to batches of worthless transactions that clog and slow it
users who stake DOT to run a validator node. DOT down considerably.
helps the Polkadot ecosystem maintain a fair and
transparent governance structure through validator DUST LIMIT
staking and other mechanisms. Any address or unspent transaction output (UTXO)
Double Spend Problem that has a lower balance than the current fee charged
The double-spending problem refers to a critical risk to transact on that blockchain is under what is called
with digital currencies where the same funds can be the dust limit. The dust limit varies by market forces
copied and spent more than once. With fiat currency, on the network and varies between different
the spender transfers physical cash to the receiver, cryptocurrency networks, but the funds are rendered
unable to spend it again. With digital currency, without function unless the balance is restored above
blockchain systems are devised to prevent a digital the transaction fee enough to trade or withdraw.
token, such as bitcoin, from being sent by more than
one address. The risk of double-spending with DUTCH EAST INDIA COMPANY
cryptocurrencies is mitigated by various mechanisms The Dutch East India Company was a trading
that verify the authenticity of all transactions. megacorporation formed in the early 17th century for
Dow Jones Industrial Average (DJIA) trading spices with India and, later, with Southeast
The DJIA, or the Dow, is a widely-used index and Asia. The company is considered the first modern
barometer of stock market performance that consists corporation due to it's sophisticated structure and
of 30 stocks from multiple sectors. Companies operations. It was also the first publicly-held company
included in the Dow are known as blue chip stocks and its shares were traded at the Amsterdam
because of their importance to the overall economy of Exchange. At its peak, the company is estimated to
the United States. The DJIA is calculated by adding the have been worth $7.9 trillion when accounting for
prices of the stocks and dividing the final value by a inflation.
Dow divisor.
Due Diligence EARNINGS PER SHARE (EPS)
In finance, due diligence refers to an examination of Earnings per share (EPS) is a method used in
financial records that takes place prior to entering into fundamental analyses of a company's profitability.
a proposed transaction with another party. Due Fundamental analysis involves evaluating a company's
diligence broadly refers to an investigation, audit, or stock rather than just its earnings. Earnings and shares
review performed to confirm the facts of a matter combined can provide a great deal of insight into a
under consideration. The term originated in the US company’s profits. EPS tells us how much of a
with the Securities Act of 1933 that made securities company's profit is assigned to each share of stock.
dealers and brokers esponsible for fully disclosing EPS is calculated as net income (after dividends on
material information about the securities they were preferred stock) divided by the number of outstanding
selling at the risk of criminal prosecution. Now, it is a shares.
standard process in business transactions and
arrangements. ECONOMIC X NODE (XN) AND ECONOMIC NODE (EN)
Dust Economic X Nodes (XNs) and Economic Nodes (ENs)
Dust is a very small fraction of a cryptocurrency or are two types of nodes created and used by the
token that can range within one to several hundred VeChain Foundation. They incentivize coin holders to
Satoshis, which is the smallest divisible unit of a run a node in exchange for tokenized VET rewards,
bitcoin. Dust is a residual byproduct of trading and and help maintain network consensus alongside
transacting with cryptocurrencies, and represents Authority Masternodes. There are four different tiers
such small denominations of currency that it retains of XNs depending on the amount of VET staked, while
minimal monetary value. ENs have three different tiers. XNs and ENs are
managed via VeChainThor Node smart contracts and
DUSTING ATTACK interact with the entire blockchain system. As of 2020,

28
no new XNs can be created and existing XN operators hackers to gain unauthorized access to information, or
are considered long-term supporters of the project. meddle with networks and transactions. In modern
Ecosystem Expansion Project (EEP) cryptography, encryption generally entails the
An Ecosystem Expansion Project (EEP) is an ICON- conversion of what is known as “plaintext” into
related project or activity that contributes to the “ciphertext." Encryption is a means of encoding
overall growth and expansion of the ICON ecosystem. information so that only authorized parties can
EEPs play a role in determining the ICON Network’s understand it.
governance system, along with P-Reps and their
Decentralized Application Booster Program (DBP). All ENHANCED DUE DILIGENCE (EDD)
ICONists can propose and execute EEPs and receive Enhanced Due Diligence (EDD) is a Know Your
rewards when other ICONists delegate a certain Customer (KYC) process that provides a greater level
amount of stake to those who proposed EEPs. of scrutiny of potential business partnerships and
EIP-1559 highlights risks that cannot be detected via Customer
EIP-1599 is an Ethereum Improvement Proposal Due Diligence (CDD) alone. It is designed for use with
designed to make network transactions more efficient customers who are deemed high-risk via the KYC
by using a hybrid system of base fees and tips. In the process. Relevant risk factors can include large
proposal, a base fee is defined as an algorithmically transaction amounts, high customer net worth,
determined price that all Ethereum users would pay geographical location, political exposure, and more.
to complete transactions. Tips are defined as optional
fees that users could include to speed up their Enjin (ENJ)
transactions. If implemented, EIP-1559 could greatly Enjin is a platform that enables developers to create
reduce transaction costs and improve the overall and manage games on the blockchain. Enjin hopes to
Ethereum user experience. leverage blockchain technology to reduce the high
Electronic Retailing (E-tailing) fees and fraud common with the transfer of virtual
E-tailing is the sale of goods and services through the goods. ENJ is an ERC-20 token used to pay for digital
internet. There are numerous types of e-tailing goods and services on the Enjin platform.
including business-to-business (B2B) and business-to-
consumer (B2C) sales of products and services. E- ENTERPRISE ADOPTION
tailing requires companies to tailor their business Enterprise adoption refers to the ability for a specific
models to capture internet sales, which can include service or type of technology to be used by a large
building out new distribution channels and new corporation, company, government, NGO, or specific
technical infrastructure. industry. Enterprise adoption of any technology
Elliptic Curve Digital Signature Algorithm (ECDSA) generally means that it is being used widely to solve
The Elliptic Curve Digital Signature Algorithm (ECDSA) multiple problems for different use cases in the real-
is the cryptographic signature algorithm used by world. It is the hope of the blockchain community that
Bitcoin and several other highly regarded blockchain technology will eventually achieve
cryptocurrencies, wallets, and exchanges. Through the enterprise adoption.
use of private keys, public keys, and cryptographic
signatures, the algorithm guarantees that only the EOS
holders of private keys can send bitcoin transactions. The EOS Network is a smart contract and
The tBTC system also uses ECDSA cryptography to decentralized application (dApp) development
create tokenized bitcoin. platform. Unlike many other blockchain networks,
EOS does not charge direct transactional fees for
EMAIL SPOOFING operations. Instead, users wishing to transact or run a
Email spoofing is the act of creating and sending email dApp must obtain sufficient network capacity by
messages with a forged sender address, typically with holding EOS coins. EOS is the native coin on the EOS
the intent to compromise the recipient. The most network, used for voting and accessing network
common ways this is accomplished include copying an capacity.
organization’s defining content, such as specific
phrases, fonts, logos, or color schemes used by the EOS 1.0 AND EOS 2.0
legitimate website or service provider in order to EOS 1.0 was the first full version of the EOS blockchain
make the fraudulent message look authentic. Since network released on June 1st, 2018. After several
most core email protocols do not have any upgrades it was replaced by the more advanced EOS
authentication mechanisms, email spoofing continues 2.0 which launched on January 10th, 2020. EOS 2.0
to be a widely used form of online fraud. was designed to enhance performance and security,
as well as provide new developer tools to make it
ENCRYPTION easier to build on the platform.
Encryption refers to technical processes that secure
data and systems, and make it more difficult for
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EOSIO CONTRACT DEVELOPMENT TOOLKIT The ERC-1155 standard allows for a single smart
(EOSIO.CDT) contract to manage multiple token types, including
The EOSIO Contract Development Toolkit (EOS.CDT) is fungible, semi-fungible, and non-fungible tokens. It is
a specialized WASM ToolChain and set of tools purported as the new multi-token standard. Other
designed to build, create, modify, and utilize smart token standards like ERC-20 and ERC-721 require a
contracts within the EOSIO ecosystem. separate contract to be deployed for each token type
or collection, which results in excessive and redundant
EOSIO RPC APPLICATION PROGRAMMING INTERFACE code on the Ethereum blockchain.
(API)
The EOSIO RPC application programming interface ERC-20
(API) is a type of Remote Procedure Call (RPC) API The ERC-20 standard outlines the common set of
used to connect to the EOSIO blockchain. A RPC criteria and technical specifications an Ethereum
occurs when a computer utilizes a program that token must follow to function optimally and
makes a procedure execute by utilizing a distinct interoperably on the Ethereum blockchain. It enables
address space on another shared network or the creation of tokenized assets that can be bought,
computer. This is done by coding and the use of a sold, and exchanged alongside cryptocurrencies like
local procedure call without the developer giving bitcoin (BTC) and ether (ETH). The ERC-20 standard
details for the remote interaction via location utilizes smart contracts to issue tokens that can be
transparency. exchanged on the Ethereum network as well as used
interoperably between Ethereum-based dApps. It is
EOSIO SOFTWARE DEVELOPMENT KITS (SDK’S) the most commonly used Ethereum token standard,
EOSIO software development kits (SDKs) provide tools and has been used to create many notable digital
to make application development easier on EOS. assets.
These SDKs are built for both Java (Android) and Swift
(iOS) programming languages. They allow software ERC-721
developers to create EOS-specific applications that ERC-721 is a technical standard for the
can be built for the Android and iOS operating implementation of non-fungible tokens (NFTs) on the
systems. Ethereum blockchain outining provide rules that all
NFTs must follow. NFTs that adhere to the ERC-721
EOS Virtual Machine (EOS VM) standard are interoperable with each other and the
The EOS Virtual Machine (EOS VM) is a high- wider Ethereum ecosystem. The ERC-721 standard
performance blockchain Web Assembly interpreter produces provably rare assets, and is widely used for
used by the EOS blockchain. It is an engine that uses digital collectibles, games, art, and luxury items.
three different interpreters to make it possible to
compile, debug, and optimize smart contracts. Its ESCROW
main purpose is to improve the functionality and An escrow is a contractual arrangement in which an
performance of smart contracts. intermediary receives and disburses funds or assets
on behalf of the primary transacting parties based on
EPOCH predetermined conditions agreed to by the
An epoch is a division of time on the Cardano transacting parties. Traditionally, the intermediary is a
blockchain protocol. Cardano makes use of a trusted third-party arbitrator, but with the advent of
proprietary Proof-of-Stake (PoS) consensus algorithm blockchain technology, this escrow service can now be
called Ouroboros Praos, which divides the blockchain automated using algorithmically-enforced rules based
into time-frames called epochs that last approximately on smart contracts. The automation of escrow holds
5 days. Epochs are in turn subdivided into smaller massive potential implications across a broad range of
increments called slots that last about 20 seconds. industries.
There are currently a total of 432,000 slots (5 days) in
each epoch. In a specific slot, zero or more block E-SIGNATURE
producing nodes may be selected to be the slot An e-signature, or electronic signature, is a signature
leader. Typically, one node is nominated every 20 executed an electronic document or form. Electronic
seconds, totalling over 20,000 slot leaders per epoch. signatures are legally valid in most jurisdictions to
When randomly selected for the role, slot leaders replace handwritten signatures.
produce blocks, of which one will be added to the
blockchain, while other block candidates will be ETHER (ETH)
discarded. Ether (ETH) is the native cryptocurrency of the
Ethereum blockchain, and plays an integral role in the
ERC-1155 Ethereum ecosystem. Transactions on the Ethereum
ERC-1155 is an Ethereum-based token standard that blockchain are paid for in micropayments of ETH
incorporates non-fungible token (NFT) technology. referred to as gas, while ether also facilitates
30
interactions with and between smart contracts
throughout the Ethereum platform and ecosystem. EUROPEAN CENTRAL BANK (ECB)
The European Central Bank (ECB) is the main central
ETHEREUM bank for the Eurozone, which is the monetary union of
Ethereum launched in 2015 as a decentralized, 19 European Union (EU) member states that employ
blockchain-based global supercomputer to serve as the use of the Euro (€) as the region’s main currency.
the foundation for an ecosystem of interoperable, The ECB is one of the most important central banks in
decentralized applications (dApps) powered by token the world, and serves as one of the seven institutions
economies and automated smart contracts. Assets that comprise the infrastructure of the EU. The main
and applications designed on Ethereum are built with purpose of the ECB is to maintain price stability,
self-executing smart contracts that remove the need regulatory certainty, fair monetary policy, and a
for a central authority or intermediary. The network is healthy European financial system related to banking,
fueled by its native cryptocurrency ether (ETH), which investment, insurance, securities, and the EUs
is used to pay transaction fees on the network. Open- financial sector as a whole. The ECB is responsible for
source, programmable, private, and censorship the authorization of Euro issuance in EU member
resistant, Ethereum forms the backbone of a states.
decentralized internet, which has already spawned
significant innovation like Initial Coin Offerings (ICOs), EXCHANGE
stablecoins, and decentralized finance (DeFi) Cryptocurrency exchanges are platforms upon which
applications. digital assets can be bought, sold, and traded for fiat
currency or other digital assets. While they share
ETHEREUM 2.0 many similarities to stock exchanges in legacy finance,
Ethereum 2.0 refers to a significant set of updates to the development of decentralized exchanges (DEXs)
the Ethereum blockchain intended to vastly improve removes centralized market makers and
its scalability and broader utility. The multi-phased clearinghouses in favor of peer-to-peer exchanges.
package of upgrades is officially called Serenity. It Cryptocurrency exchanges have evolved significantly
features a switch from a Proof-of-Work (PoW) from the earliest, unregulated iterations to provide
consensus algorithm that relies on computational more robust security, accessibility, and legal
mining to a Proof-of-Stake (PoS) consensus algorithm compliance in accordance with the jurisdictions in
that relies on validator staking to keep the network in which they operate.
motion. In utilizing Proof of Stake and implementing
the innovation of partitioned shard chains, Ethereum EXCHANGE COIN/EXCHANGE TOKEN
2.0 is expected to be much more efficient than its Exchange coins are digital assets launched on a crypto
prior iteration, achieving the transactional scale exchange via an Initial Exchange Offering (IEO), a
required to be the global supercomputer. fundraising method for crypto companies that's
similar to an Initial Coin Offering (ICO). There are two
ETHEREUM TRANSACTION different types of exchange coins: those launched by
Ethereum transactions are code or a set of commands the exchange itself as the native token of the
that execute in a single Ethereum block. They cange platform, and those launched by other crypto
from simple token transfers to complex zero companies using the token launch infrastrucure and
knowledge proofs and smart contracts. Transactions services of the exchange. Exchange coins can either be
are permanently recorded onto the data state of the tokens (digital assets enabled by an existing
Ethereum blockchain at the cessation of every block. blockchain) or cryptocurrencies (digital assets that run
on their own blockchain).
ETHEREUM VIRTUAL MACHINE (EVM)
The Ethereum Virtual Machine (EVM) is a EXCHANGE TRADED FUND (ETF)
development interface accessible through a web An exchange-traded fund (ETF) is a financial product
browser. The EVM enables developers to deploy that is tied to the price of other financial instruments.
dApps more effectively by providing a suite of This structure gives investors a way to gain exposure
development kits, application templates, and other to an asset or a bundle of assets without buying or
tools. The EVM improves accessibility by eliminating owning the asset(s) directly. ETFs can be composed of
the need for developers to purchase costly hardware, all kinds of assets including stocks, commodities, and
and allowing developers to launch a dApp regardless bonds. A digital asset ETF, for example, would allow
of the underlying coding language. The EVM is a investors to invest in the underlying digital asset
primary driver of the trend that decentralized without needing to manage the asset itself or interact
applications (dApps) exist almost exclusively on the with a cryptocurrency exchange.
Ethereum blockchain thus far.

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EXCHANGE-TRADED PRODUCT (ETP) Fair launch refers to the equitable and transparent
An exchange-traded product (ETP) is a type of security initial distribution of coins in a blockchain project. Fair
that tracks an underlying security, index, or financial launches stand in contrast to a token distribution in
instrument asset, and can be purchased on an which a small group of founders and early investors
exchange. ETPs trade on the National Stock Exchange receive special or early access to the tokens. They are
(NSE) during the day. The first crypto ETPs went to seen as an effective way to promote decentralization
market in 2019. and engagement in the crypto community.

EXECUTION PRICE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

An execution price is the price at which a buy or sell The Federal Deposit Insurance Corporation (FDIC) is
order for a security is completed, or executed. As an independent federal agency in the US that insures
prices fluctuate in a dynamic market, what is offered deposits in financial institutions, acting as a guarantor
for a trade in as an order price might not always be in the event of an institution failing. The FDIC was
identical to the price at the execution price of the created in the 1933 Banking Act to restore faith in
trade. A strong execution price very little slippage or banks during the Great Depression. Its ongoing
change in price from an order price and is a sign of a purpose is to foster confidence in financial
healthy market and asset. institutions.

EXPLOIT KITS FEDERATED BYZANTINE AGREEMENT

Exploit kits are automated programs that contain code Federated Byzantine Agreement (FBA) is a consensus
for identifying vulnerabilities and installing malware. method developed and deployed by the Stellar
They are a type of toolkit that cybercriminals use to blockchain protocol. It operates by a system of
attack weaknesses in computing systems. Once federated voting wherein nodes deem other nodes
they've infected a victim machine, they compile trustworthy until a quorum is achieved and network
device information, search for vulnerabilities, consensus is solidified.
determine the appropriate or most effective exploits,
and then deploy those exploits on behalf of the FIAT-BACKED STABLECOIN
exploit kit user. Fiat-backed stablecoins are digital assets pegged to
the value of an underlying fiat currency in a 1:1 ratio,
EXPONENTIAL DECAY MODEL and are built to reduce the volatility commonly
The exponential decay model is a cryptoeconomic associated with digital assets. Stablecoins not only
minting mechanism used by numerous blockchain serve as a store of value and an investment hedge, but
projects to mitigate inflation. Blockchains that follow simplify engagement in on-chain endeavors like
the model produce higher native currency rewards decentralized finance. The fiat currency which serves
during the launch and early stages of the network, as collateral to a stablecoin — the most common
which decrease exponentially over time, along with an being USD — is held off-chain, which requires users to
increasing difficulty in block mining in propagation. trust that the fiat reserves are properly managed and
The model has been criticized for enabling a miner audited.
incentivization imbalance.
FIAT CURRENCY
EXTENDED PRIVATE KEY (XPRIV) A fiat currency is any type of government-issued
An extended private key (XPRIV) is one half of the currency that is used as legal tender by a specific
master key pair (the other being an extended public nation or region’s citizens and government. Fiat
key) used in hierarchical-deterministic wallets. A currencies are not backed by a physical commodity
hierarchical-deterministic wallet is a cryptocurrency (like gold or silver), but instead by the government
wallet that generates new cryptographic key pairs or that issued it. As a government-regulated instrument,
addresses from a master key pair each time funds are it functions as a medium of exchange, store of value,
received. and unit of account. To function as fiat, money must
be durable, portable, divisible, uniform, acceptable,
EXTENDED PUBLIC KEY (XPUB) and limited in supply. Most modern paper currencies
An extended public key (XPUB) one half of the master are fiat currencies, like the EU euro, Japanese yen, and
key pair (the other being an extended private key) US Dollar.
used in hierarchical-deterministic wallets. A
hierarchical-deterministic wallet is a cryptocurrency FIAT ON-RAMP
wallet that generates new cryptographic key pairs or A fiat on-ramp is an exchange or similar service that
addresses from a master key pair each time funds are allows for digital assets like securities and
received. cryptocurrencies to be exchanged for fiat currency like
the US dollar. On-ramps are a software-based service
FAIR LAUNCH built by a financial service provider, usually with a
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banking license to legally operate in their specific The Financial Industry Regulatory Authority (FINRA) is
jurisdiction. A fiat on-ramp is the first step in a private corporation that acts as a self-regulatory
exchanging or trading cryptocurrencies for many users organization. It is responsible for writing rules
who first purchase digital assets with fiat currency. governing brokers and broker-dealer firms in the US.
Although it has regulatory powers, it is not officially
FIBONACCI RATIOS part of the US government, and exists as an
The Fibonacci ratio (also called the “golden ratio”) independent NGO. The Securities and Exchange
describes predictable balancing patterns in elements Commission (SEC) oversees FINRA.
found throughout nature, including atoms. It is named
after Leonardo Fibonacci who lived around 1200 AD FINANCIAL INFORMATION EXCHANGE (FIX)
and is credited with discovering the ratio. In the The Financial Information eXchange (FIX) is a
Fibonacci sequence, each number is the sum of the communication protocol for the real-time exchange of
two preceding numbers (1, 1, 2, 3, 5, 8, 13, etc.). Four securities transaction information that provides direct
main techniques are used to apply the Fibonacci market access (DMA) data to financial service entities.
sequence to finance: retracements, arcs, fans, and The FIX serves approximately 300 financial
time zones. institutions, including all major investment banks. It
has become the de-facto standard for pre-trade,
FIL_BASE trade, and post-trade communications.
The Filecoin (FIL) base of 2,000,000,000 FIL coins is the
maximum number that will ever exist and is known as FINANCIAL SECURITIES
FIL_BASE. 55% of the FIL_BASE is allocated to storage A security is a fungible investment instrument that is
mining, 15% is allocated to a mining reserve, and the offered with some kind of financial value. A security
remaining 30% is allocated to various other can be a physical or digital asset, while examples
developmental projects. Filecoin’s coin allocation include stocks, bonds, and options. The defintion and
methodology intends to ensure the growth of both subsequent regulation of some cryptocurrencies as a
long-term and short-term network participation, while security is an emerging legilative factor in many
applying counter-pressure to mitigate FIL supply jurisdictions.
shocks.
FINANCIAL TECHNOLOGY (FINTECH)
FILECOIN (FIL) Financial technology (FinTech) is an emerging industry
Filecoin is an open-source, cloud-based Decentralized that improves the existing structure of conventional
Storage Network (DSN) built to maximize data storage financial services by leveraging new technological
and retrieval. The Filecoin network leverages a mining, developments. FinTech generally aims to lower costs,
storage, and retrieval mechanism that connects improve transaction times, remove minimum
storage miners (providers) and retrieval miners thresholds, bolster financial inclusion, and offer more
(servers) with clients who pay to store and retrieve flexible terms on financial products among other
data. Network participants receive and send tokenized initiatives. Blockchain and cryptocurrency can be
rewards in the form of Filecoin coins (FIL) for considered a category within the FinTech sphere.
providing services on the network.
FINITE-STATE MACHINE
FINALITY RATE A finite-state machine is a computational system that
Finality is a blockchain state (or status) that occurs can only exist in exactly one state — out of a finite
after a blockchain transaction has been confirmed and number of states — at any given time. Finite-state
can no longer be canceled, reversed, or altered by any machines operate by reading a series of inputs and
of the network participants. The finality rate is the then switching to a new state, one that corresponds
amount of time it takes to reach a finality state after a with a function of its most recent input and current
transaction is executed. This rate can be measured in state. All conventional computing devices are physical
seconds or blocks, depending on the blockchain in representations of finite-state machines.
question, as well as on the context in which this term
is applied. FINRA RULE 3310
FINRA Rule 3310 established minimum standards for
FINANCIAL INCLUSION broker-dealers' Anti-Money Laundering (AML)
Financial inclusion refers to the accessibility and compliance programs. It requires firms to develop and
equality of financial services like banking, loans, implement a written AML compliance program which
equity, and insurance services. Successful financial must then be approved by the FINRA. Firms must also
inclusion is measured by the availability of affordable provide for annual (on a calendar-year basis)
and timely access to these types of services. independent testing for compliance to be conducted
by member personnel or by a qualified outside party.
Financial Industry Regulatory Authority (FINRA)
33
FISCAL CRISIS there is an opportunity to receive a reward from the
A fiscal crisis results when a state or government fees associated with each transaction included in the
experiences a deficit between its expenditures and block. Blocks are forged after the transactions are
revenues. Fiscal crises tend to entail an economic validated and the block is signed. Different PoS
dimension as well as a political dimension. They are networks have varying rules regarding their respective
often referred to as a budget deficit. requirements to take part in the validation and forging
process.
FISHERMEN
Fishermen is a technical term used within the FORK
Polkadot blockchain protocol to refer to full nodes A fork occurs when one blockchain is divided into two
that are responsible maintaining the integrity of the blockchains. This type of split in a blockchain network
network and nodes. The job of fishermen is to happens when an update is made to the blockchain
monitor the Relay Chain and other parts of the protocol, but not all of the network participant nodes
protocol to pinpoint and report unwanted behavior to agree to adopt it. Blockchains can experience two
validator nodes. Rather than packaging state main types of forks: a soft fork or a hard fork. Soft
transitions and producing the next parachain blocks forks result in an update that is “backwards
like Polkadot collators, fishermen monitor the process compatible.” This means that nodes which accept the
to make sure that no invalid state transactions are update are still capable of interacting with nodes
included. Fishermen typically stake a small amount of which do not. In a hard fork, the update significantly
DOT initially, and are rewarded upon identifying alters the original blockchain protocol such that the
unwanted behavior on the network. two versions are no longer compatible with one
another. The result of a hard fork is two unique
FLASH LOANS blockchains that diverge after the hard fork event.
Flash loans are a type of DeFi loan that is rapidly
executed — borrowed and paid back in quick FORM 10-K
succession — without the need for collateral. An Form 10-K is a financial report that publicly traded
experimental technology offered by the Aave companies are required to file annually by the U.S.
platform, flash loans are made possible because of Securities and Exchange Commission (SEC). The report
how data is recorded on the Ethereum network. If the provides a comprehensive summary of a company's
principal and interest are not repaid within one financial performance over the course of the past
Ethereum transaction, the flash loan is effectively year.
reversed.
FORM 10-K AND 10-Q
FLEXA Form 10-Q is a financial report that publicly traded
Flexa is a New York City-based company that manages companies are required to file quarterly by the U.S.
a blockchain-based payment network, the Flex Securities and Exchange Commission (SEC). It contains
Network Protocol, which allows users to spend crypto similar information to the annual 10-K form, although
at brick and mortar retailers through its Spedn app. generally less detailed and unaudited. Information
The app generates a QR code at checkout, which regarding the prior fiscal quarter is included in the
retailers scan to instantly receive their preferred fiat end-of-year 10-K form, so only three 10-Q forms are
for the transaction, while the equivalent amount of required to be submitted for the year.
crypto is deducted from users' wallets within the app.
Instant payments are made possible through the use FORMAL VERIFICATION
of the network’s native token AMP. Formal verification refers to mathematically proving
and verifying a smart contract to ensure that it will
FOREX function as intended. The use of mathematical
Forex is a portmanteau that combines the terms functions to build the software allows for the
“foreign currency” and “exchange' that is used to mathematical verification of new code before it is
define the entire foreign currency exchange market. added. Formal verification is a cornerstone of
The Forex currency trading market is a global and cryptography.
largely over-the-counter (OTC) market that
determines currency foreign exchange rates and FRAUD PROOF
facilitates all aspects of buying, selling, and A fraud proof is a technical mechanism that operates
exchanging currencies at spot or agreed upon prices. as a bond when employed in dApp ecosystems that
make use of Optimistic Roll-ups (ORs), which are
FORGING Ethereum sidechains that seek to decrease the fees
Forging refers to the creation or minting of new blocks and latency dApps might experience on the Ethereum
in blockchain protocols using the Proof-of-Stake (PoS) platform. A sequencer, which is responsible for
consensus algorithm. When a new block is forged, processing ORs, must include a fraud prood along with
34
their work to incentivize good performance. required for each action and how long each action
Sequencers are financially rewarded for processing operates. Gas costs are denoted in gwei, a
roll-ups according to consensus rules, and financially denomination of ether (ETH), equal to 0.000000001
punished by forfeiting their fraud proof when they ETH. Gas was built into the system to allocate
break them. resources to the network of miners who validate
transactions and create new blocks. Gas also acts as a
FUNCTIONAL PROGRAMMING LANGUAGES spam mitigation tool. By adding a cost to each
Functional programming languages are programming transaction, nefarious actors who might try to disrupt
languages that employ mathematical functions to the system by sending a large number of tiny
determine the behavior of a program. They stand in transactions are deterred from doing so.
contrast to imperative programming languages, in
which software coding is executed as a set of stepwise GAS & NEO COINS
instructions. Some advantages of functional Not to be confused with the gas fees native to the
programming languages include the mathematical Ethereum network, GAS and NEO are the two native
precision and verifiability of the code, as well as the cryptocurrencies of the NEO blockchain protocol. NEO
resulting security and speed. acts as the primary currency for transactions and gives
holders the right to vote on network proposals. Users
FUND can also earn GAS through staking their NEO. GAS is
A fund is a pool of money that is set aside for a also used to pay for network usage: transaction fees,
specific purpose and usually invested. Funds are often storage fees, and fees associated with executing smart
managed by professional financiers. Common funds contracts. All NEO coins were minted at the
include pension funds, insurance funds, foundations, establishment of the protocol, and GAS coins are
and endowments. minted with every new block.

FUNGIBILITY GENESIS BLOCK

Fungibility is the attribute of being mutually A genesis block refers to the first block of any
interchangeable. Fungibility occurs when a good, blockchain network. It is almost always hardcoded
asset, or units of an asset are indistinguishable from into the protocol software. It is the only block of a
each other, and so can be interchanged with each blockchain network that does not reference a
other. For instance, one US dollar is equivalent to any previous block.
other US dollar, and is therefore fungible. Fungibility
makes an asset useful as a currency or payment GITHUB
method. GitHub, a subsidiary of Microsoft, provides online
hosting services for collaborative software
FUTURES development using Git, a distributed version-tracking
Futures are derivative contracts for the purchase or system. With a variety of advanced collaborative
sale of a security or commodity at a future date and at tools, security features, and version control, GitHub
a preset price. The buyer has the obligation to buy the has become the de-facto standard for collaborative,
underlying asset at the expiration date, while the online software development. GitHub offers free
seller has the obligation to sell the underlying at the personal accounts in addition to enterprise accounts.
expiration date. The value of the contract is based on It is commonly used to host open-source projects,
an agreed upon underlying trait of assets like although it offers private repositories as well.
commodities, currencies, indexes, or stocks. Futures
contracts are traded on exchanges and they serve a
variety of purposes, from income generation to
hedging to speculation. There are a variety GLOBAL INDUSTRY CLASSIFICATION STANDARD
cryptucrrency applications, including bitcoin futures, (GICS)
which represent agreements to trade bitcoin at a The Global Industry Classification Standard (GICS) is a
future date at a predetermined price. financial taxonomy system that has been adopted by
most of the global financial system. It is an agreed-
GAS upon “language” for understanding into which
The fees associated with transacting and executing industries and sectors certain companies are
smart contracts on the Ethereum blockchain are categorized. The GICS structure consists of 11 sectors,
referred to as gas. Decentralized applications (dApps) 24 industry groups, 69 industries, and 158 sub-
on the Ethereum blockchain run using smart contracts industries. The GICS system classifies public
that lay out rules for execution of events. The companies only.
execution of events happens through transactions,
which come with a cost to the network. These costs GO
are figured based on the computational power
35
Go is an open-source computer programming GRAPHICAL USER INTERFACE (GUI)
language designed by Google. Go is sometimes A Graphical User Interface (GUI) is a means of
referred to as 'Golang' because of its domain name interacting with a computer program in a visual way.
(golang.org). Go is a statically typed and compiled GUIs are intended to make computer programs easier
programming language that is similar in syntactic to use and employ icons, windows, and menus. GUIs
structure to C, but includes advanced features for stand in contrast to text-based user interfaces which
improved productivity when dealing with large require users to interact with computer programs
networks and codebases. Go has become a preferred through text-based commands.
programming language for decentralized blockchain
networks, and is used with many dApps and other GREENLIST
decentralized tools. The Greenlist is a list of cryptocurrencies provided by
the New York Department of Financial Services
GOLDEN CROSS (NYDFS). NYDFS-licensed virtual currency businesses
A golden cross is a bullish technical trading signal in are permitted to use the coins on the list for approved
which the 50-day moving average crosses above the purposes.
200-day moving average, typically triggering a price
rally. It is the opposite of a death cross trading signal, GWEI
which is a bearish trading signal. Golden cross Gwei is the smallest unit of ether, the native
formations can also be detected within shorter time cryptocurrency of the Ethereum blockchain. 1 gwei is
frames, such as the 5-day and 15-day averages, equal to 0.000000001 ETH. Gas fees, which are fees
although longer periods typically offer stronger charged on every Ethereum transaction, are
signals. denominated in Gwei.

GOLEM (GNT) HALVING

Golem Network is a platform for democratizing access A halving is when the reward allocated to miners for
to censorship-resistant computing power. It allows mining new blocks is reduced by 50%. Halving events
users to supply and lease idle hardware in a peer-to- usually occur at fixed intervals. For example, Bitcoin's
peer manner. Golem currently operates as a block reward is halved every 210,000 blocks, and
decentralized alternative to centralized cloud happens about every four years.
computing solutions provided by Amazon, Microsoft,
and IBM. The settlement layer of the protocol allows HARD FORK
for the creation of a shared and alternative economy, A hard fork is a software update that is not backwards
where users earn passive income by leasing their compatible. In the context of blockchain technology, a
hardware. The network is fueled by the Golem hard fork happens when new rules have been
Network Token (GLM), which was previously introduced into the blockchain code that are not
identified by the ticker symbol GNT before a token compatible with the rules of the blockchain's previous
swap in November 2020. code. If network nodes do not update their software,
they are unable to communicate with nodes that have
GOVERNANCE TOKEN updated their software. This sometimes results in the
A governance token provides holders with a degree of blockchain splitting into two networks — one which
influence over a platform's protocol, products, and operates with the old rules and one which operates
future functionality. Governance tokens are often with the new, updated rules. For example, Bitcoin
issued via decentralized protocols that aim to Cash emerged after a hard fork of the Bitcoin
encourage community-led growth and self- blockchain.
sustainability. Holders of governance tokens are
typically able to propose changes to the protocol as HARDWARE WALLET
well as use their tokens to vote on those changes. A hardware wallet is a secure, physical, hardware
Governance tokens are used to democratically device which stores a user's private keys.
manage a protocol in a fair and decentralized manner.
HASH
GRANDPA AND BABE CONSENSUS MECHANISMS Hash functions are algorithms that take data of any
GRANDPA (GHOST-based Recursive Ancestor Deriving size and convert it into a fixed-length hexadecimal
Prefix Agreement) and BABE (Blind Assignment for number, or hash. Hash functions are one-way
Blockchain Extension) are the two central components functions and cannot be inverted to reveal the data
of the hybrid consensus mechanism that Polkadot input to create the hash. The Bitcoin blockchain
utilizes to secure and maintain its network. BABE is a utilizes the SHA-256 hash algorithm in its transaction
mechanism for producing blocks while GRANDPA is validation process.
mechanism for finalizing the state of the blockchain.

36
HASH RATE HORIZONTAL SCALABILITY
The hash rate is the unit of measure for the Horizontal scalability is a means of increasing the
computing power of a Proof-of-Work consensus transactional capacity of a blockchain network by
mechanism. The hash rate is valued in terahashes per adding more nodes to the network or optimizing
second (TH/s), and increases or decreases according systems, rather than altering the protocol via code.
the the number of miners operating on the network.
HOSTAGE BYTES
HASKELL A hostage byte attack is a theoretical vulnerability in
Haskell is a programming language suitable for a the STORJ network in which malicious storage nodes
variety of applications in financial services and extort payment from users by refusing to transfer
hardware design. Cardano is programmed in Haskell. pieces of data.

HEDERA’S “GOSSIP” HOT (ONLINE) WALLET

"Gossip" is the protocol utilized by Hedera Hashgraph The term hot wallet refers to a cryptocurrency wallet
to broadcast information amongst network nodes and that is connected to the internet. The wallet's assets
to reach consensus on transaction validation. are therefore held online, as opposed to a cold wallet,
which is held in an offline environment.
HEDGE
A hedge is when an investment in a security or asset is HYBRID EXPONENTIAL MINTING
made with the intention of offsetting potential risks or Hybrid exponential minting is a method for minting
losses elsewhere in an investment portfolio. coins utilized by the Filecoin network. In this model,
30% of rewards are distributed according to an
HIERARCHICAL-DETERMINISTIC (HD) WALLET exponential decay model, in which block rewards are
A hierarchical-deterministic wallet is a cryptocurrency greatest at the protocol's inception and decrease over
wallet that generates new cryptographic key pairs or time. 70% of rewards are distributed in proportion
addresses from a master key pair each time funds are with the growth of the total storage capacity of the
received. This technique is intended to enhance the network. This model was developed to ensure the
privacy of the wallet by distributing the total balance long-term viability of the Filecoin network because it
of a user's cryptocurrency holdings across several rewards miners throughout the entire lifecycle of the
addresses. This feature also increases the security of network, in proportion to the utility they provide to
the wallet by distributing private keys, while all the network.
previously used addresses remain usable and within
the user's control. HYBRID NETWORK
A hybrid blockchain network combines elements of
HIGH-FREQUENCY TRADING both private and public blockchains. The hybrid aspect
High-frequency trading is an automated market of the network's architecture most often includes a
trading method that utilizes algorithms to rapidly buy main public chain, in addition to private side-chains of
and sell a large quantity of orders. various purposes that link back to the main chain and
public access.
HIGH-NET-WORTH INDIVIDUAL (HNWI)
A high-net-worth individual (HNWI) is an individual HYPERINFLATION
that possesses liquid assets above a certain amount, Hyperinflation describes severe, and often rapid price
generally at least $1 million. These assets could increases in an economy resulting from surplus money
include stocks, bonds, and commodities, among supply. Political instability, a weak economy, and loss
others. of confidence in the financial system can cause
hyperinflation, which can be highly destabilizing to a
HIGH-YIELD (JUNK) BONDS national currency and economy.
A junk bond is a bond that holds a high risk of default.
Junk bonds are also referred to as 'high-yield,' because ICON INCENTIVES SCORING SYSTEM (IISS)
investors receive high interest rates in return for The ICON Incentives Scoring System (IISS) is the
taking on increased risk. method used by ICON for measuring, incentivizing,
and rewarding contributions to the network. Examples
HODL of contributions include running a node in ICON's
"Hodl" is a slang expression that refers to the holding Delegated Proof-of-Stake (DPoS) network
of cryptocurrency assets, as opposed to liquidation. architecture, or developing a decentralized application
The term was derived from a post on Bitcointalk in (dApp). Rewards are denominated in the ICON
which the poster mispelled 'hold,' and subsequently Exchange Token (ICX).
became a meme.

37
ICX claim future utility in the products they are sold to
ICX, or the ICON Exchange Token, is the native asset of fund. Despite this, ICO-launched tokens may still be
the ICON blockchain. The token is minted each time a considered securities, and are subject to jurisdictional
block is created, and serves various purposes. As a regulation.
governance token, ICX holders can vote on changes to
the ICON blockchain. The ICX token is used as a INITIAL EXCHANGE OFFERING (IEO)
reward for nodes that maintain the network, to pay An IEO or Initial Exchange Offering is a token
for fees and smart contract usage, and as a medium of distribution event that is specifically conducted on a
exchange in the wider ICON ecosystem. cryptocurrency exchange platform. Similar to Initial
Coin Offerings (ICOs), IEOs are a fundraising method
IMMUTABILITY for many blockchain and crypto oriented companies,
Immutability is the characteristic of data becoming but IEO's entail some aspect of the security,
irreversibly codified in the shared data ledger of a compliance, and communications managed by the
blockchain network after transaction execution. Most exchange. IEO participants are able to purchase
non-blockchain computer networks are mutable, tokens directly with exchange wallets, which removes
meaning that the information inside them can be some of the technical knowledge required to
modified, censored, or controlled by a central party. participate in ICOs.
Immutability allows a blockchain network to ensure
the overall trust and integrity of data for a dApp, INITIAL PUBLIC OFFERING (IPO)
platform, or cryptocurrency. An Initial Public Offering (IPO) is a sale of shares of a
private company to the public — particularly
IMPERMANENT LOSS institutional and retail investors. This process, which
Impermanent loss occurs when the value of tokens takes place on a stock exchange, transforms the
held in an algorithmically balanced liquidity pool lose private company into a publicly-traded company by
value relative to like assets in the open market due to selling securities that represent an fraction of
price volatility. The loss is 'impermanent' because the ownership. Companies that intend to conduct an IPO
original value of the tokens can be restored if the must adhere to rules and regulations as set out by the
liquidity pool restores balance. US Securities and Exchange Commission (SEC).

INDEX INSIDER TRADING

An index fund is an investment product made up of a Insider trading is an illegal activity in which a person
collection of investments designed to track an who has access to non-public, material information
industry segment of the financial market, or a basket about a company utilizes that information to make
of investments accumulated for a particular stragery advantageous trades of the company's stock.
or risk profile.
INSTITUTIONAL-GRADE
INDIVIDUAL RETIREMENT ACCOUNT (IRA) The term institutional-grade generally refers to
In the U.S., many financial institutions offer individual infrastructures or products which have features that
retirement accounts that provide tax advantages for make them suitable for use by large enterprises.
retirement savings. Anyone can sign up for an IRA and
save money in one. In short: one advantage of a INSTITUTIONAL INVESTOR
traditional IRA is that your contributions are tax- Institutional investors are firms that invest in various
deductible in the year that they are made. asset classes on behalf of other people. Examples of
institutional investors include pension funds, hedge
INFLATION funds, and commercial banks among others.
Inflation refers to the gradual rising of prices in an
economy relative to actual value, which can decreases INSTITUTIONAL TRADING SOFTWARE
the purchasing power of a currency if not managed. Institutional trading software is software that provides
Most cryptocurrencies follow a fixed inflationary an online interface or exchange platform for
policy the decreases token circulation over time. institutional trading and portfolio management.

INITIAL COIN OFFERING (ICO) INSURANCE

Initial Coin Offerings or token sales are a fundraising Insurance provides compensation for losses in
mechanism made possible by blockchain and exchange for the payment of a fee, referred to as a
Ethereum that incorporates the creation and sale of a premium. Some digital asset exchanges have
token to raise funds for a project—usually a new insurance for the assets they hold in the event of theft
blockchain platform, decentralized application (Dapp), or other circumstances leading to losses.
or digital asset product. Instead of providing buyers
with equity or shares, an ICO sells tokens that usually
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INTER-BLOCKCHAIN COMMUNICATION (IBC)
PROTOCOL INVERSE SYNTHETIC CRYPTOCURRENCIES
The Inter-Blockchain Communication Protocol is a Inverse synthetic cryptocurrencies are synthetic assets
protocol that facilitates interoperability between offered on the Synthetix protocol that inversely track
different blockchain networks by enabling cross-chain the price of the cryptocurrency they represent, and
interaction and value exchange. It was designed by are represented with an 'i' prefix, as in the case of
technologists from Tendermint, Agoric, and Interchain iBTC. If the price of bitcoin increases, the price of iBTC
Foundation. decreases.
Interest Rate
Interest is the amount of money that a lender charges INVISIBLE INTERNET PROJECT (I2P)
for borrowing money. Interest rates are expressed as The Invisible Internet Project (I2P) is a distributed,
a percentage of the amount lended and are typically encrypted private network layer that exists on top of
calculated on an annual basis known as the annual the internet. I2P anonymizes user traffic on the
percentage rate (APR). network and enables communication resistant to
censorship and third-party monitoring. I2P is
INTERNET MEME integrated with the privacy-centric Monero
A meme is an image, video or piece of text, often cryptocurrency to optimize anonymity on the its
intended for humor, that is rapidly reproduced and network.
circulated by internet users through a variety of social
media platforms, often with minor changes over time IOTA
in engagement with wider meme culture. IOTA is a distributed ledger system that focuses on
transactions serving the Internet-of-Things (IoT). IOTA
INTERNET OF THINGS (IOT) utilizes a Tangle, which is a directed acyclic graph
The Internet of Things (IoT) refers to physical objects (DAG) data structure instead of a blockchain for its
that are connected to the internet to enable features. architecture. Its DAG structure places transaction
IoT devices include appliances, home media systems, confirmation on IoT nodes tather than the block-
and security systems among a rapidly increasing list of based system of blockchain. IOTA offers zero-fee
others. IoT products offer increased functionality, transactions and claims to high a high transaction
share data, and interact with each other. throughput.

INTEROPERABILITY ISSUER
In the context of the blockchain industry, An issuer is a legal entity, such as a corporation or
interoperability refers to the ability of different government that sells securities to investors to fund
blockchain protocols to interact and exchange value its operations.
with each other.
JAVA PROGRAMMING LANGUAGE
INTERPLANETARY FILE SYSTEM (IPFS) Java is a popular general purpose programming
The InterPlanetary File System (IPFS) is a network for language often utilized for client-server web
storing files and transferring verifiable data peer-to- applications.
peer. Developed by Protocol Labs, the IPFS is
complementary to Filecoin, which is a blockchain JAVASCRIPT (JS)
designed to incentivize persistent data storage. Both JavaScript (JS) is a popular programming language that
protocols, while complementary, can be used is used to create a variety of web applications.
separately. JavaScript Object Notation (JSON) JavaScript Object
Notation (JSON) is a data interchange format and
IN-THE-MONEY/ OUT-OF-THE-MONEY open standard file format that utilizes human-
In the money' refers to an option that has a market readable text to transmit and store data.
price that is higher than its 'strike' price, which is the
set price at which the option owner can buy or sell the KEEP NETWORK (KEEP)
security or commodity that underlies the option. 'Out Keep Network provides a privacy layer for public
of the money' refers to an option that has a market blockchains that enables users and apps to privately
price lower than the strike price. transfer and store data in off-chain containers called
'keeps.' KEEP is the network's native token.
INTRINSIC VALUE Participants can earn fees denominated in KEEP for
In finance, intrinsic value refers to an estimation of participating in the maintenance of keep containers.
the value of an asset or company that has been
calculated through financial modeling. The intrinsic KEEP TOKEN
value of an asset is not always the same as its market KEEP is the native token of the Keep Network, a
value. protocol that allows public blockchain users and apps
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to privately transfer and store data in off-chain order. High latency presents an undesirable delay
containers called 'keeps.' Users can stake KEEP tokens between actions, while low latency incurs minimal lag
to be randomly selected to earn fees by performing that often amounting to just milliseconds. High
services on the network such as encryption or data latency can signifcantly and negatively affect trading
storage. strategies, particularly for dynamic assets, as market
Keosd prices may fluctuate in the time elapsed between
Keosd is a key manager daemon used within the placement and execution.
EOSIO blockchain system for storing private keys and
signing digital messages. LAYER-TWO SOLUTION
Key Management Interoperability Protocol (KMIP) Layer-two solutions are protocols that integrate into
The Key Management Interoperability Protocol (KMIP) blockchains like Bitcoin and Ethereum as separate,
facilitates the exchange of data between secondary layers built to increase transaction
cryptographic key management servers and clients. It throughput and reduce transaction costs. Examples of
plays a key connective role in the function of crypto layer-two solutions include Bitcoin's Lightning
wallets an other decentralized products. KMIP was Network and Ethereum's Plasma.
established by the Organization for the Advancement
of Structured Information Standards (OASIS), a LEADER
nonprofit consortium focused on the development On the Solana network, a leader is the transaction
and adoption of open, global information-sharing validator that adds entries to the blockchain ledger.
standards. To ensure equitability and decentralization, a 'leader
schedule' determines which validator becomes a
KEYS leader at a given time.
A cryptographic key is a string of bits that is used by
an encryption algorithm to convert encrypted LEAKWARE OR DOXWARE
ciphertext into plaintext and vice versa as part of a Doxware is a type of ransomware that first infects a
paired key access mechanism. Keys are usually computer, then threatens to leak sensitive or
randomly generated and, unlike a password, are not proprietary information held on the machine unless a
intended to be memorized by users. ransom is paid.

KNOW YOUR CUSTOMER (KYC) LEDGER

Know Your Customer (KYC) is the compliance process A ledger is a record-keeping system for tracking
instituted by regulators for businesses to verify the financial transactions. Blockchains are often referred
identity and level of risk of their customers. This to as distributed ledgers.
process normally requires users to provide official
identity verification using a passport, driver’s license, LEG
or similar documents. KYC regulation requires A leg is one element of a multi-step derivatives trading
financial firms to collect personal data on their strategy in which the trader combines several options
customers and ensure the legitimacy of the person or contracts, futures contracts, or a mixture of the two,
client to whom they may provide services. in order to profit from arbitrage or a spread, or to
hedge a trading position.
KYBER NETWORK (KNC)
The Kyber Network is a blockchain protocol that LEVERAGE
aggregates token liquidity from across the Ethereum In the context of investing, leverage is the use of
ecosystem and facilitates the exchange of tokens borrowed money to fund an investment. If a position,
without an intermediary. individual, or organization is 'highly leveraged,' it
means they are utilizing a large percentage of
LAST IRREVERSIBLE BLOCK (LIB) borrowed money.
Within the EOSIO protocol, the block confirmation
process is twofold. First, block producers propose LIBRARY
what's called an irreversible block with a record of In computer science, a library is a collection of
transactions. Then, if two-thirds of block producers specialized resources that are utilized by computer
acknowledge the proposed block, it achieves programs for software development. These resources
irreversible status and the transactions are considered can include documentation, messaging templates,
validated. The 'last irreversible block is the most configuration data, and pre-written code among other
recent block to have been validated. things.

LATENCY LIGHT-CLIENT NODE

In trading, latency refers to the time elapsed between A light client, or light node, is software that connects
the placement of an order and the execution of that to full nodes in a blockchain network. Unlike full
40
nodes, light nodes do not keep a full copy of the A liquidity pool is a crowdsourced pool of
blockchain, or communicate directly with the cryptocurrencies or tokens locked in a smart contract
blockchain. Instead, light clients rely on full nodes as that is used to facilitate trades between those assets
intermediaries. Light clients can be used to send some on a decentralized exchange.
transactions and to verify the balances of accounts,
but are significantly less functional than full nodes. LIQUIDITY PROVIDER (LP) TOKENS
Lightning Network Liquidity provider tokens (LP tokens) are created and
The Lightning Network is a layer-two scaling awared to a user that deposits assets into a liquidity
technology that operates on top of blockchains like pool. LP tokens represent the share of the liquidity
Bitcoin. It creates a private, two-way channel between pool that the liquidity provider owns. LP tokens are
users that enables multiple transactions to take place ERC-20 tokens that can be transferred, exchanged,
off the main blockchain. These transactions are and staked.
subsequently recorded as one single transaction on
the main blockchain. This process extrapolated over LIQUIDITY PROVIDERS
many transactions reduces network congestion and A liquidity provider is a user who deposits tokens into
increase scalability. a liquidity pool. In return for supplying liquidity, users
LIMITED PURPOSE TRUST CHARTER are typically awarded liquidity provider (LP) tokens
A limited purpose trust charter is a specialized license that represent the share of the liquidity pool user
issued by a U.S. state government which enables the owns.
receiving company to perform a specific set of Liquid/Liquidity
functions, such as acting as a depositor or safekeeper In regards to an asset, liquidity refers to the ability to
for specific types of securities. A company which exchange an asset without substantially shifting its
legally operates in accordance with the policies laid price in the process, and the ease with which an asset
out in a limited purpose trust charter is called a can be converted to cash. The easier it is to convert
"limited purpose trust company." the asset to cash, the more liquid the asset. With
regard to markets, liquidity refers to the amount of
LIMIT ORDER trading activity in a market. The higher the trading
Common on exchange trading interfaces, a limit order volume in the market, the more liquid the market.
is a function to buy or sell an asset at a specific price. Liquid markets tend to increase the liquidity of assets.
When a trader sets a buy limit order, they typically set Liquid Markets
the purchase of the asset to be executed lower than A market that is liquid has a large number of buyers
current market price in anticipation of a downward and sellers, and low transaction costs.
move towards a more favorable price. In contrast, Liquid Proof of Stake
when a trader sets a sell limit order, it is typically set Liquid Proof of Stake (LPoS) is a consensus mechanism
higher than the current market price, in anticipation modeled after the concept of liquid democracy. Liquid
of the asset going up in value. Specified limit orders democracy is a system that allows individuals to both
can remain unfilled if asset price does not behave in vote directly on issues, or to elect delegates to vote
the way anticipated by the trader. By contrast, market on their behalf. Delegates can also transfer the voting
orders are always filled at the current trading price of responsibilities given to them to another delegate—a
a specified asset without a threshold limit price being process which is referred to as transitivity. If the
set. individual who delegated their vote does not agree
with the way their delegate voted, the individual can
LINK rescind their vote and vote directly. In LPoS systems,
LINK is an ERC-677 token that is the native token of users stake their tokens to earn the right to
Chainlink's decentralized network of oracles. It is used participate in the blockchain's consensus process, and
to reward node operators for providing external data participate either directly or via a delegate.
to smart contracts. Additionally, smart contract Litecoin (LTC)
creators can require nodes to deposit LINK as a Litecoin (LTC) is a cryptocurrency that was introduced
penalty fee to ensure that they fulfill requests for in 2011 by Charlie Lee. Litecoin was created by forking
external information. Bitcoin's code and retains many characteristics of
Bitcoin, while being optimized for lower cost
LIQUIDITY AGGREGATOR transactions. It is considered to be the first altcoin,
A liquidity aggregator accumulates liquidity from and was the second cryptocurrency to be widely
centralized and decentralized sources into one accomodated on digital currency exchanges and
location to increase liquidity, reduce price slippage, accepted in the wider economy.
and facilitate more efficient trading activity — Locker Ransomware
particuary on decentralized exchanges (DEXs). Locker Ransomware is a type of ransomware that
locks victims out of their devices until a ransom fee is
LIQUIDITY POOL paid.
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Locky Ransomware A mainnet is a fully developed and released version of
Locky ransomware is a type of ransomware that a blockchain network. This stands in contrast with a
emerged in 2016 that spread through phishing emails testnet, which is generally used to perform tests and
and locked victims out of their devices until they paid experiments on a blockchain either before a mainnet
a ransom. is released. Testnets are used while a blockchain is live
London Bullion Market Association (LBMA) for experimentation and development as to not
The London Bullion Market Association (LBMA) is an distrupt the main chain.
international trade association that represents the
world's Over-the-Counter (OTC) gold bullion market. MAKER (MKR)
The LBMA has over 150 member firms which trade, Maker (MKR) is the governance token of MakerDAO,
refine, produce, buy, sell, store, and transport an Ethereum-based protocol that issues the Dai
precious metals. stablecoin and facilitates collateral-backed loans
London Good Delivery without an intermediary. MKR is a governance token
Set by the London Bullion Market Association (LBMA), that allows holders to vote on changes to the
the London Good Delivery is a specification of the protocol, like the addition of new collateral assets and
required attributes of the gold and silver that is used protocol updates.
for settlement in the London Bullion Market. The Maker Protocol
specification also defines the ways in which gold and MakerDAO is the Ethereum-based protocol that issues
silver bars should be weighed; packed, and delivered, Dai, a stablecoin that tracks the value of the US dollar.
while also delineates requirement and standards for MakerDAO also facilitates collateral-backed loans
approved refineries. without an intermediary. The platform is governed by
the holders of its native Maker (MKR) tokens.
LOOM (LOOM) Malware
Loom is an Ethereum-based platform that was initially Malware refers to any type of 'malicious software,'
focused on providing scalability for decentralized software that is specifically designed to cause damage
applications. It later pivoted to focus on enterprise to computers and computer systems. Examples of
blockchain applications for industries such as malware include viruses, trojan horses, and
healthcare. ransomware among others.
Margin Call
LUMP SUM A margin call occurs when the value of an investor's
A lump sum is an amount of capital that pays an margin account—a type of account that lets investors
outstanding fee in one installment. purchase securities with borrowed money—falls
below the broker's required mininum amount.
MACHINE LEARNING (ML) Specifically, a margin call is a broker's demand that an
Machine Learning (ML) is a subset of artificial investor deposit additional money or securities into
intelligence (AI) and is the study of algorithms which the account to restore it to the minimum value or face
optimize through experience without being liquidation.
programmed to do so. Machine learning algorithms Margin Trading
find patterns in large data sets in order to make data- Margin trading refers to leveraging borrowed funds to
based claims and predictions. trade an asset.
Market Capitalization
MACHINE LEARNING PREDICTION In the blockchain industry, market capitalization, or
A machine learning (ML) prediction is the result of a market cap, refers to the value of the entire supply of
machine learning algorithm analyzing a historical data a cryptocurrency or token. Market capitalization is
set. The ML prediction can then subsequently be calculated by taking the market price of one coin or
applied to new data sets, where it can be used to token and multiplying it by the total number of coins
forecast outcomes like the future price movement of or tokens in circulation.
a stock. Market Maker
In finance, a market maker is a company or individual
MACHINE-TO-MACHINE (M2M) that buys and sells large amounts of an asset in order
The term machine-to-machine (or M2M) refers to to ensure that the market for that asset remains
communication between devices that occurs without liquid. In the 0x protocol, a market maker is a special
human input. In the blockchain industry, this category of trader who makes it possible to have
frequently relates to automated payments facilitated liquidity, tight spreads between the bid and ask prices
through smart contracts. Automation eliminates the for the assets being traded, and low slippage.
role of gatekepers or intermediaris, which significantly Market Order
reduces costs. The most common type of trade made by retail
investors, a market order is used to purchase or sell
MAINNET an asset at the current market price. Market orders
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are the fastest and most efficient way to purchase an A micropayment is a transaction, typically online, that
asset when trading, and are typically filled involves a small sum of money—sometimes as small
instantaneously when strong liquidity and trading as a fraction of a cent.
volume is present. Market orders are placed within an Mimblewimble
online order book on an exchange trading interface, Mimblewimble is a privacy-focused blockchain design
usually either on a computer or mobile device. first proposed in 2019 by the pseudonymous Tom
Market Signal Elvis Jedusor. Mimblewimble's novel design proposes
A market signal, also known as a trading signal, is an a way to maintain transaction data privacy while
indication to buy or sell assets that is based on some executing transaction verification that does not
form of technical or fundamental analysis. Traders can require network nodes to store the entire history of
generate market signals using a variety of criteria, the blockchain. Grin and Beam are open source
such as earnings reports, trade volume analysis, or implementations of Mimblewimble tech.
through myriad technical indicators based on market Miner
metrics. Miners are an essential component of every Proof-of-
Work (PoW) blockchain consensus protocol, and are
responsible for validating new transactions and
MARK-TO-MARKET recording them on the blockchain ledger. Miners
Mark-to-market, also known as fair value accounting validate these transactions by solving complex math
or marked-to-market, is an accounting practice that problems, which results in the minting of new tokens
values assets in terms of current market price, as while reinforcing the network's security and
opposed to a static book value. trustworthiness. In order to incentivize users to
Medium of Exchange allocate processing power to mine new blocks, miners
A medium of exchange is an asset that is widely are typically rewarded a fraction of a network's native
accepted in exchange for goods and services. Fiat currency with every successfully mined block.
currency is an example of a medium of exchange Minimum Viable Product (MVP)
today, but historically has included everything from A Minimum Viable Product (MVP) is an early version
shells to precious metals. of a product that has enough features such that a
Memorandum of Understanding (MOU) company is able to trial the product and collect data
A Memorandum of Understanding (MOU) is a on how customers or clients may use it.
document that outlines an agreement reached Mining
between two or more parties. MOUs are not legally Mining is the process of using computing power to
binding, but often indicate that the parties will likely verify and record blockchain transactions. Mining also
sign a binding contract in the future. results in the creation of new coins, which miners
Merkle Tree earn as a reward for their efforts. Mining is utilized in
A Merkel Tree is a data structure composed of data- Proof-of-Work (PoW) blockchains.
converting hashes that is utilized by blockchains for Mining Pool
the secure verification of information. A Merkle tree A mining pool is a group of miners who combine their
summarizes all the transactions in a block by individual computing power in order to increase their
producing a digital fingerprint (i.e., a single hash) of chances of successfully mining a block of transactions.
the entire set of transactions. When successful, block rewards are split amongst the
Metadata members of the mining pool.
Metadata is a form of data that is made up of other Mining Rewards
data. For example, the metadata of a file might Mining rewards, also referred to as block rewards, are
describe when the file was created and what type of native assets of a network that miners receive for
file it is. successfully mining blocks of transactions. Mining
MetaMask rewards can vary over time. Bitcoin's block rewards,
Metamask is a web browser-based blockchain wallet for example, decrease by 50% every 210,000 blocks.
that allows users to connect to Ethereum Mining Rig
decentralized applications (dApps) without running an A mining rig is a system used to mine cryptocurrency
Ethereum full node. Metamask is also used to tokens. This rig can either be a device that is
integrate to numerous decentralized exchange (DEX) specifically designed and built for mining, or a
platforms like Uniswap. Currently (December 2020) a personal computer that is only used to mine
mobile-based version of Metamask is undergoing cryptocurrency on a part-time basis.
extensive development and will be fully launched in Mobile Wallet
2021. A mobile wallet is a cryptocurrency wallet that is
Metaverse installed on a smartphone. Mobile wallets are typically
A metaverse is a shared virtual reality world. 'hot' wallets, meaning they are connected to the
Micropayment internet.
Monero (XMR)
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Monero is a privacy-focused Proof-of-Work blockchain Multi-Signature (Multi-Sig) Wallet
that was created in 2014. Its privacy features include A multisignature (multisig) wallet is a wallet which
anonymizing transaction amounts and the addresses requires multiple keys to sign a transaction before it
of transacting parties. Its native asset is XMR. can be executed. Non-multisig wallets require only
Monetary Authority of Singapore (MAS) one signature to authorize transactions.
The Monetary Authority of Singapore (MAS) is the Mutual Insurance Company
central bank and main financial regulatory authority of A mutual insurance company is an insurance company
Singapore. The MAS is responsible for ensuring the that is entirely owned by its members. The primary
regulatory compliance, stability, and efficiency of the objective of a mutual insurance company is to provide
Singapore’s economic system pertaining to banking, coverage for its members, who also play infuential
investment, monetary policy, insurance, securities, role in company governance.
and the financial sector in general — as well as for the Mutualized Proof of Stake (MPoS)
issuance of the Singapore dollar (SGD). Mutualized Proof of Stake (MPoS) is a consensus
Moore’s Law mechanism that is used by the Qtum blockchain.
Moore's Law is an assertion made by Gordon Moore Unlike Proof of Stake, MPoS divides each block reward
in 1965 stating that due to technological advances in between the block producer and the nine previous
microchips, the power and speed of computers would block producers. A block's producer receives 10% of
double every two years, along with a correlational the block reward immediately, and the remaining 90%
decrease in cost. is distributed after waiting for 500 blocks. This is done
More Viable Plasma to disincentivize malicious attacks on the network.
More Viable Plasma (MoreVP) is a variation of Plasma, My Story™
a layer-two Ethereum scaling technology introduced My Story™ is a blockchain-based digital assurance
by Vitalik Buterin and Joseph Poon. MoreVP bundles solution created by VeChain and DNV GL. My Story™
transactions together and verifies them off of the enables consumers to scan a QR code on a product to
blockchain before returning them in a batch to be learn about the product's lifecycle and information
verified by Ethereum. OMG Network utilizes MoreVP. related to quality, social, environmental and ethical
Moving Average Convergence Divergence (MACD) issues.
The moving average convergence divergence (MACD)
is a trading indicator used in technical analysis that N
utilizes moving averages to analyze the momentum of Near-Field Communication (NFC)
an asset. Near-Field Communication (NFC) is a protocol that
Moving Averages enables devices to communicate wirelessly when they
A moving average is a stock indicator used in technical are no more than 4cm apart. NFC devices can be used
analysis to determine the support and resistance as keycards and to facilitate contactless payments.
levels of an asset, as well as the trend direction of an VeChain utlizes NFC to track products in supply chains.
asset's price. Moving averages are calculated based on NEM Foundation
past prices, and is thus considered a 'lagging' The NEM Foundation was established in Singapore in
indicator. 2016 to promote the growth of the NEM ecosystem.
Mt. Gox The foundation markets NEM technology and pursues
Mt. Gox was a centralized cryptocurrency exchange projects in support of its development.
that lost more than 700,000 bitcoin in a 2014 hack. NEM N1S1
Created by Jed McCaleb in 2010, Mt. Gox was sold to NEM N1S1 is the official name of the original NEM
Mark Karpeles in 2011 who operated it from Japan. blockhain protocol. NEM plans to release Symbol, a
Mt.Gox filed for bankruptcy and liquidation new and separate blockchain protocol intended to
proceedings after the 2014 hack. Creditors are still build upon the strengths of the original NEM chain
awaiting compensation for their lost funds. while incorporating new features. The two
Multifactor Authentication blockchains will not be compatible.
Multifactor authentication is a security mechanism NET
that requires users to provide more than one form of NET is the amount of network bandwith a user is
verification when logging into systems. For example, allowed to utilize on the EOS network. NET is
when logging into an email account, a user may be calculated in bytes of transactions, and users must
required to enter both a password and a verification stake EOS tokens to use it.
code sent to their smartphone. Network Baseline Model
Multi-Hop Routing The Network Baseline Model is Filecoin's schedule for
In the context of the Orchid protocol, 'hops' refer to minting tokens, which is tied to growth in the
the way data is routed, specifically the encryption and protocol's storage capacity. While tokens are only
masking of web traffic by a virtual private network minted via block rewards, 70% of rewards are
(VPN). Multi-hop routing refers to the routing of distributed in proportion with the growth of the total
traffic through multiple VPNs. storage capacity of the network. The remaining 30%
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of rewards are distributed according to an exponential network and in exchange receive a portion of
decay model, in which block rewards are greatest at validator node rewards. However, nominators are also
the protocol's inception and diminish over time. susceptible to slashing (losing some of their DOT) if
Network Congestion the validator nodes they select behave in a malicious
Network congestion occurs when the speed or quality manner.
of a network's service is reduced due to an Nonce
overwhelming volume of transactions. Congestion can A nonce (which stands for "number only used once")
occur when a network experiences an unusual spike in is a number that is added to all the data in a block
activity that surpasses the volume the network was prior to the hashing of that block in the Proof-of-Work
designed to handle, or in the event of certain mining process.
malicious attacks such as a Distributed Denial-of- Non-Custodial
Service (DDoS) attack. Non-custodial and custodial are classifications that are
New York Stock Exchange (NYSE) used to classify the services that a financial institution
The New York Stock Exchange (NYSE) is an American provides to their customers to manage securities or
stock exchange. It is the world's largest stock other assets, including crypto. In the blockchain
exchange by market capitalization of listed industry, non-custodial means that the user has full
companies. control over their crypto and is required to manage
Nifty Gateway their own private keys (specialized algorithmic
Nifty Gateway is a platform that provides users with passwords needed to generate transactions and
an easy way to buy, exchange, and manage non- manage assets). This typically means that no external
fungible tokens (NFTs). The platform offers a broad entity is responsible for the management, insurance,
array of digital art and collectible NFTs, and provides a and transaction of the assets held.
fiat onramp, therefore enabling users to obtain NFTs Non-Custodial Wallet
with fiat as well as cryptocurrencies. Gemini acquired Non-custodial wallets are cryptocurrency wallets that
Nifty Gateway in November 2019. are controlled only by the person who created the
Node wallet, meaning, the creator of the wallet has full
In blockchain tech, a node is a computer that is control of their private keys (a specialized algorithmic
connected to a blockchain network that serves a password used to effect crypto transactions).
number of purposes essential to the maintenance of a Non-Deterministic (ND) Wallet
distributed system. Some nodes validate transactions, A Non-Deterministic (ND) wallet is a type of non-
while others observe activity on the blockchain. Nodal custodial cryptocurrency wallet that is made to
network structure is also a key aspect of maintaining generate, store, and manage numerous private keys
security on a blockchain network. that are independent from each other. Non-
Nodeos Core Deterministic wallets often store their private keys in
Nodeos is the core service daemon that runs in the pairs (because they utilize randomness) and were
background of every EOSIO node on the EOS network. developed shortly after the Bitcoin blockchain
A nodeos can be utilized to validate transactions, network went live for the first time. The main problem
process smart contracts, produce and confirm blocks, with Non-Deterministic (ND) wallets is that their
and to record transactions onto the EOS blockchain backup keys must be created each time a new wallet
network protocol. is created, This problem was later mitigated by wallets
Nominated Proof of Stake (NPoS) that made use of BIP 32 technology (a deterministic
Nominated Proof of Stake (NPoS) is a variation of the key generator).
Proof-of-Stake (PoS) consensus mechanism employed Non-Fungibility
by the Polkadot blockchain network's main Relay Non-fungibility means that a specific asset is
Chain and Polkadot-based parachains (independent distinguishable or unique from another asset that is
blockchains or specialized shards). Instead of using the similar in nature. A non-fungible token (NFT) is a
traditional PoS methodology, NPoS is used to select specialized type of cryptographic token that operates
validators through Polkadot network nominators. within a blockchain platform and is not
Nominators typically only choose validator nodes they interchangeable with any related asset. NFT’s are
trust but they can lose DOT, Polkadot's native typically indivisible and cannot be divided or altered in
cryptocurrency, if they choose malicious validator any way.
nodes through a process called slashing. Non-Fungible Token (NFT)
Nominators A non-fungible token (NFT) is a specialized type of
Nominators are nodes that are used to secure cryptographic token that represents a unique digital
Polkadot’s main Relay Chain by selecting trustworthy asset that cannot be exchanged for another type of
validator nodes and staking DOT, Polkadot's native digital asset. This characteristic is in contrast to
cryptocurrency. In this process nominators cryptocurrencies and blockchain utility tokens (like
algorithmically choose network validators by bonding Bitcoin and Ethereum) that are fungible in nature.
their DOT assets to produce blocks on the Polkadot
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NFT's are created via smart contract technology and network scalability. This is realized by enhancing
are classified within the ERC-721 token standard. Ethereum’s ability to send and receive the Ethereum
Notional Volume network’s underlying asset (ETH) and Ethereum-based
Notional volume is a distinct measurement of trading ERC-20 tokenized assets. OMG Network makes use of
volume in a particular time frame and is often a specialized layer-2 scaling technology called More
considered in context with market value, which is the Viable Plasma (MoreVP) to make this functionality
current price of a security that can be purchased or possible. As well, the OMG Network leverages the
sold through a brokerage or exchange service. As an network’s utility asset (OMG) to drive the blockchain
example, let's say a call option representing 100 platform and its overall ecosystem.
shares of a specific stock with a strike price of $30 On-Chain
may actually trade on the market for $1.50 per On-chain is a classification that refers to any type of
contract (100 x $1.50 = $150 market value) but its transaction or mechanism (including governance,
notional value is $3,000 (100 x $30). This as an tokenized asset creation, consensus design etc.) that
example of the classification of notional volume. occurs within a blockchain network protocol. An on-
Numeraire (NMR) chain mechanism is typically executed automatically
Numeraire is a blockchain-based protocol that was through the use of cryptographic and algorithmic
designed to be an algorithmic institutional trading computerized code underlying blockchain platform.
platform. Numeraire utilizes a crowdsourced On-Chain Governance
predictive-trading analysis platform to host weekly On-chain governance is a blockchain-based
trading competitions and is designed to allow users to mechanism that takes place inside the computational
make better trading and investment decisions. The architecture of a blockchain network protocol. This
project’s underlying cryptographic asset NMR procedure often refers to a means of establishing
contributes to the widescale implementation of the rules for the on-chain aspects of the protocol and the
Numeraire blockchain ecosystem. overall blockchain ecosystem, typically through the
use of automatic cryptographic algorithms. On-chain
O governance also takes into consideration the global
Off-Chain blockchain community and several off-chain
Off-chain is a classification that refers to any type of parameters to realize a stronger overall governance
transaction or mechanism (including governance, structure. Both on-chain and off-chain governance
tokenized asset creation, consensus design etc.) that systems work together to improve the blockchain
occurs outside of a blockchain network protocol. An ecosystem (and its underlying protocol) as it matures
off-chain mechanism is typically executed outside of over time.
the actual blockchain network through other Ontology Trust Anchors
mechanisms that compliment on-chain Ontology Trust Anchors are qualified third-party
methodologies. For example, voting by a governnce trustors which provide authentication services on the
council or a steering committee to determine the Ontology blockchain by using a three-tiered
governance structure of a blockchain ecosystem and mechanism. This structure includes: (1) “verifiers” that
its underlying protocol is conducted off-chain. verify and make use of trust from the (2) “trustee”
Off-Chain Governance which is entrusted by the (3) trustor (or trust anchor).
Off-chain governance is a blockchain-based Each of the three processes work together to verify
mechanism that generally takes place externally to data cryptographically and algorithmically in a
the underlying blockchain network protocol, typically transparent manner on the Ontology blockchain.
in a face-to face fashion by several interrelated Examples of trust anchors can be government
parties. This procedure often refers to a means of agencies, universities, banks, third-party
establishing rules for the on-chain protocol and authentication service providers, or biometric
overall blockchain ecosystem, oftentimes through a technology companies, and constitute a portion of
voting process by different constituents working to Ontology’s multifaceted trust network — much of
determine the overall direction of the project. Off- which consists of decentralized multi-source
chain governance also takes into consideration the authentication protocols.
underlying global blockchain community and several Ontorand Consensus Engine
on-chain parameters to realize a stronger overall The Ontology blockchain protocol makes use of the
governance system. Blockchain governance evolves OCE (Ontorand Consensus Engine) consensus
and changes over time with the goal of improving the mechanism. OCE is an upgraded version of the
system as time goes on. standardized Delegated Byzantine Fault Tolerance
OMG (dBFT) consensus protocol that also makes use of
The OMG Network (previously known as OmiseGo) is Verifiable Random Function (VRF) and Proof-of-Stake
a non-custodial, layer-2 scaling solution that is built to technology. OCE is based on Onchain’s Distributed
compliment the Ethereum network by drastically Networks Architecture (DNA) which was designed by
decreasing transaction times and increasing overall the creators of NEO. OCE can theoretically achieve
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near-infinite scalability and requires a relatively low decentralized and rely on numerous data sets, or
hashing rate, with block-creation speeds limited only centralized and controlled by a single entity.
by a user’s internet speed. Currently, one of the main uses of blockchain-based
Open Finance oracles is to provide price and data feeds needed for
Open finance refers to the integration of bank and the trustless execution of smart contracts used by
third-party blockchain-based technological financial mechanisms in the DeFi sector.
applications that are designed to transform the Orchid Blockchain Protocol
traditional finance sector. Open finance aims to Orchid is a peer-to-peer marketplace for virtual
enable financial institutions, large enterprises, and private networking (VPN) providers and users that
central banks to conduct their business practices in a allows any user of the network to purchase bandwidth
more transparent, efficient, automated, and data- (off-chain and without gas fees and the congestion of
driven manner. There are three main parameters that the Ethereum network) from a participating VPN
must be implemented to facilitate the creation of a service provider. The Orchid network utilizes a
resilient and transparent open finance ecosystem. payment mechanism called a probabilistic
Firstly, to establish a settlement layer consisting of nanopayment for users to purchase bandwidth by
different stable coins; second, to onboard enterprises paying in Orchid’s native utility token (OXT).
and construct a data layer to help enable the Order and Execution Management System (OEMS)
technology; and lastly, to allow financial institutions to Caspian’s Order and Execution Management System
create financial products using trusted enterprise (OEMS) is a software platform, exchange aggregator,
data. and suite of tools for advanced trading and portfolio
Optimistic Roll-Up (OR) management designed for institutional investors.
An Optimistic Rollup (OR) is a type of roll-up (roll-ups Order Book
are a specialized blockchain-based settlement process An order book is an electronic list of buy and sell
that makes use of smart contracts off-chain) used to orders for a specific security, asset, or financial
lower transaction fees on a blockchain network that instrument (or in the blockchain industry, a specific
processes dApp transactions off-chain before settling cryptocurrency asset) organized by price level. Order
the final state on-chain. A sequencer (also called an books are typically accessed through an exchange
aggregator) utilizes a fraud proof (essentially a bond) service provider's online interface — such as a
to ensure that the roll-up is processing according to computer or mobile device — and help traders and
the correct parameters. For this reason, ORs are investors improve market transparency by providing
considered “optimistic,” because they expect critical trading and investment data. An order book is
sequencers to act in an ethical manner. The fallback composed of the number of shares or financial assets
mechanism used in this process is the fraud proof, (or tokens) being bought and sold at specific prices in
which is used to financially disincentivize malicious a sequential order (with the green portion of the
actors. interface being the buy list, and the red portion, the
Options Contract sell list).
An options contract is a derivatives contract that Order Slicing
facilitates an agreement between two parties to carry Order slicing is a strategy used by institutional
out a potential transaction for an underlying security investors with large amounts of capital to make large
at a predetermined price (referred to as the strike purchases or trades (generally via an order book and
price) on or prior to the expiry date of the contract. online exchange interface) of a specific asset in
Options contracts are typically categorized into either smaller, more spaced out increments. Order slicing is
a put option or a call option, both of which are bought done to prevent huge price fluctuations in the market
to speculate on the direction of a stock or stock and to maintain privacy. Order slicing is also used to
indices, or sold to generate income. Typically, a call gain a better overall average entry price, and to
option is purchased as a leveraged bet on the protect investment capital.
potential appreciation of a stock or index, while a put Orphaned Blocks
option is purchased to potentially profit from future Orphaned blocks (generally referred to as stale blocks)
price declines. are blocks that have not been accepted within a
Oracle blockchain network due to the lag time when two
Oracles are third-party information service providers blocks are mined simultaneously. Theoretically, a soft
that send external real-world data to a blockchain fork is created when two blocks are mined at the
protocol (often to a smart contract or numerous smart same time, but this is only a practicality because
contracts). Oracles give blockchain network protocol’s orphaned blocks typically only create four blocks in a
significantly more power because they are able to row outside of the main network they originated
exponentially secure, verify, and strengthen the from. Orphaned blocks are valid and verified blocks
validity of data that a blockchain network receives and that exist in isolation form the initial blockchain and
makes use of (because blockchains and smart serve no purpose after they are rejected.
contracts are often closed systems). Oracles can be Ouroboros Praos
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Ouroboros Praos is a Proof-of-Stake consensus Parachains are Polkadot-based independent
mechanism designed by the IOHK team building the blockchains that connect to and run off of the
Cardano blockchain. Its novel approach provides Polkadot network’s main Relay Chain. Parachains can
security against fully-adaptive corruption in a semi- also be considered shards (with entire blockchains
synchronous setting. A malicious actor is able to inside them). Parachains run in parallel to the Relay
corrupt any participant from an evolving population of Chan and process transactions through parallelization
stakeholders at any time provided that stakeholder by using sharding and exhibit extremely fast
distribution keeps an honest majority of stake — and transaction times. Parachains are able to host their
this approach helps safeguard against such concerns. own blockchain-based tokenized assets within their
Ouroboros Praos is considered a highly scalable, independent network and control their own
innovative, and a secure methodology to construct a governance processes by paying to use a parachain
Proof-of-Stake blockchain-based system. slot by attaching to the main Relay Chain.
Over-Optimization Passive Yield
Over-optimization is a process that occurs when Passive yield is any type of income that is generated
traders create a trading algorithm (often using from an investment; however this term usually refers
excessive curve-fitting) on a computerized system that to investments that are held on a medium to long-
looks great in theory but when it is actually used in a term basis. Specifically in relation to blockchain
real-time market trading scenario does not perform as technology and crypto investing, a passive yield is
desired. This occurs when the algorithmic trading typically realized when an investor purchases a
system is too complex for the computer too handle cryptocurrency with a specific amount of investment
and results in an overloaded computational system. capital (for example, by buying ETH or BTC with a fiat
Over the Counter (OTC) Trading currency like the U.S. dollar) and earns interest on
Over-the-Counter (OTC) trading is typically a process that crypto over time.
where an agreement to purchase a specific asset is Passphrase
completed between two parties without the need for A passphrase is a specialized type of password which
a centralized exchange. OTC desks are usually used to is structured as a specificially ordered sequence of
purchase large quantities of an asset in order to words, which is used to access a particular account,
improve transparency, save time and fees, and to device or system. Since passphrases are typically
maintain security of the asset purchased. Usually OTC composed of individual coherent words rather than an
trading involves a third-party custody solution. Also, abstract string of letters, numbersm and symbols,
OTC desks often trade assets or securities that are they are often easier to remember than random
unlisted on regular crypto exchanges, because smaller passwords, although passphrases offer a similar—and
exchanges do not meet the regulatory requirements at times even higher—level of security when properly
to list the specific asset. applied. Within the blockchain industry, passphrases
OXT are commonly used as a security mechanism which
OXT is Orchid’s native utility crypto asset that helps helps users protect their cryptocurrency assets by
facilitate Orchid’s VPN-based blockchain network mitigating the risk of an account hack and/or
infrastructure and community. The Orchid network unauthorized third-party access.
utilizes a payment mechanism called a probabilistic Password Manager
nanopayment for users to purchase bandwidth by A password manager is an online program that stores
paying in OXT. OXT is also used by VPN providers to and manages a user's passwords. It can also generate
stake to the Orchid network. Orchid is a peer-to-peer and retrieve complex passwords.
marketplace for virtual private networking (VPN) Path Payment
providers and users that allows any user of the Within the Stellar blockchain’s technical framework, a
network to purchase bandwidth from a participating path payment refers to a payment that is sent in one
VPN service provider. currency and received in another (for example a
payment sent in USD and received in EUR). Path
P payment’s are processed via Stellar’s decentralized
Paper Wallet exchange (DEX), are atomic in nature, and are
A paper wallet is an offline method (a piece of paper) processed as a single transaction to mitigate the risk
that includes a user’s private key, public key, and of the end user receiving a type of asset that they do
wallet address that are used to store and transact no not want. Remember, a path is a specialized type
cryptocurrencies (when connected online to an of trade, or chain of trades, that exists on Stellar’s
exchange or blockchain node). Paper wallets were SDEX order book (an order book is a list of buy and sell
primarily used around the time Bitcoin was first orders for a particular asset).
created but presently they are quite rare and have Pattern Day Trading
been replaced by more efficient hardware and A pattern day trader (PDT) is a regulatory classification
software wallets. for a trader who executes more than four margin
Parachain trades per day during five consecutive business days.
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The PDT designation places specific limits (to limit Peer-to-peer marketplaces are designed to operate in
excessive risk and detrimental habit-based trading) on the best interest of all parties involved, as opposed to
trading for a trader and can result in an exchange mainly benefitting a single centralized entity. A peer-
banning a trader for up to 90 days in order to remain to-peer blockchain marketplace works by connecting
compliant with NYSE (New York Stock Exchange) buyers and sellers together to create an open, global,
regulations. computational marketplace that can used fairly by all
PAX Gold (PAXG) parties involved. Many blockchain platforms have
PAX Gold (PAXG) is an ERC-20 stablecoin created to built P2P marketplaces that run within their
help investors maintain the benefits of purchasing blockchain networks' protocols.
gold without the drawbacks of the traditional gold Peer-to-Peer (P2P) Network
investment process. Each PAX Gold asset is pegged on A peer-to-peer (P2P) network structure as it relates to
a 1:1 ratio to one troy ounce (t oz) of a 400-ounce blockchain technology is generally considered
London Good Delivery gold bar that is stored in Brinks decentralized and is designed to operate in the best
Security vaults in London. PAX Gold is backed by interest of all parties involved, as opposed to mainly
proven London Bullion Market Association-accredited benefitting a single centralized entity. A peer-to-peer
(LBMA) gold bars and fully redeemable for actual, blockchain network works by connecting different
physical gold. computers (or nodes) together so they are able to
Paxos Standard (PAX) work in unison. This process creates a censorship
PAX Standard (PAX) is an ERC-20 stablecoin that is resistant, open, public computing network that allows
pegged at a 1:1 ratio to the US dollar. Created by important data and other functionalities to be shared
Paxos Standard — which also issues the Binance USD across the network.
and Paxos Gold stablecoins — every PAX is backed by Peer-to-Peer (P2P) Trading
proven reserves of US dollars. While available on Peer-to-peer trading takes place directly between two
many exchanges, PAX allows users to further utilize or more network participants in a decentralized, low-
Paxos Standard’s own financial services like enterprise risk manner; often on a blockchain-based
brokerage and settlement for institutions. Parent decentralized exchange (DEX) or crypto wallet. This
company Paxos Trust is a New York Trust Chartered process removes the centralized middleman allowing
company that adheres to regulations required for the users of the platform to pay minimal or zero fees
financial businesses operating in the United States. to use the service. At this time, many crypto wallets
Peer to Peer (P2P) are developing instant exchange within a single wallet
A peer-to-peer (P2P) network structure as it relates to interface that allows a user to switch instantaneously
blockchain technology is generally considered between different types of cryptocurrencies and fiat
decentralized and is designed to operate in the best currencies. However, a lack of liquidity (for both
interest of all parties involved, as opposed to mobile wallets and DEXs), and a small overall user-
benefitting mainly a single centralized entity. A peer- base are significant barriers for the widespread
to-peer blockchain network works by connecting implementation of this technology.
different computers (or nodes) together so they are Permissionless Innovation
able to work in unison. This process creates a Permissionless innovation is a classification that
censorship resistant, open, public computing network references the decentralized nature of blockchain-
that allows important data and other functionalities to based network protocols and blockchain technology.
be shared across the network. Permissionless, as the name suggests, means that the
Peer-to-Peer (P2P) Lending users and developers of the network do not need
Peer-to-peer (P2P) lending is a process of lending permission from anyone to transact and use network
money (or crypto, and other assets) to an individual or services. Theoretically, anyone can use a
business enterprise (usually without a centralized permissionless network without access being granted
intermediary) through a decentralized online service by a centralized authority. Open public blockchains
provider that matches lenders with borrowers. Peer- are generally permissionless in nature, while closed
to-peer lending service providers typically offer their private blockchain systems are the permissioned.
services in a cheaper and more transparent way with Phishing
less operational overhead, when compared to a A phishing attack is a common computer-based attack
traditional financial institution. This generally results method that is used to obtain sensitive information
in lenders and burrowers getting better rates and like email addresses, private key addresses, mobile
better service overall. Recently, P2P lending has phone numbers, and credit card details from an
become more commonplace in the blockchain unknowing victim. Phishing attacks are carried out by
industry with the exponential rise of the DeFi sector. malicious third parties posing as a trustworthy entities
Peer-to-Peer (P2P) Marketplace like co-workers or institutions of authority to gain
A peer-to-peer (P2P) blockchain-based marketplace is access to accounts. While phishing attacks are a
a marketplace that is typically more decentralized and common form of technological crime, they are
transparent than many of its traditional competitors. confidence tricks more than they are hacks.
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Physical Bitcoins employs DOT as the network’s native asset, which is
Physical bitcoins are typically imitation physical metal used to sign, send, and receive transactions, employ
coins (that are designed to look like Bitcoin) that have governance parameters, and to conduct other
a private key hidden under a tamper-proof sticker or processes within the Polkadot blockchain ecosystem.
hologram. They can be purchased pre-loaded with a Position Management System (PMS)
specific cryptocurrency value or without any digital Caspian’s Position Management System (PMS) is an
value at all. The enterprise Casascius Coins released algorithmic portfolio and trading position
the first popular physical coin that represented Bitcoin management system that allows users to manage
that was sold widely to the global blockchain their trading positions across multiple exchanges and
community. Presently, it is possible to purchase other wallets, monitor real-time and historical P&L data, and
physical coins that represent and support other access other advanced metrics that simplify and
cryptocurrency assets (such as Litecoin, Ethereum, improve the trading and investment process.
and Bitcoin Cash). The physical possession of these Position Trading
assets should also be considered a blockchain Position trading is an investment strategy that
transaction because the recipient is now in possession prioritizes long-term investments in assets. Instead of
of the private key under the tamper-proof sticker on actively trading daily short-term market fluctuations
the coin. Generally, physical coins that represent like a day trader, position traders hold an asset for
different types of cryptocurrency assets are single- many months and years and value sustained growth.
use, and once redeemed, cannot be re-used. Amongst cryptocurrency investors, position trading is
Plaintext referred to as holding, or "HODL" in crypto-colloquial
Plaintext is an information format refers to terms.
unformatted text in a computer envirnment that can Predictive Algorithms
be understood or deciphered by an individual or Predictive algorithm analytics is a software-based
computer-based software system. In regards to methodology that uses data mining, machine learning,
security, plaintext processed over the internet must and predictive modeling technology to analyze the
be equipped with added layer of security to remain impact of current data on future outcomes. Today,
confidential. The process of encryption through the predictive algorithms are used by large corporations
use of an encryption algorithm or cipher converts like Amazon and Facebook to algorithmically
plaintext into ciphertext, which is encrypted data that determine the most effective way to increase sales on
is unreadable. products and services. Predictive algorithms are also
Plutus increasingly being used to create more personalized
The Plutus platform is a smart contract development digital experiences and targeted strategies in a
platform designed by IOHK and the Cardano growing number of sectors.
blockchain ecosystem. Plutus smart contracts consist Pre-Mining
of both on-chain computerized code that runs on the Pre-mining refers to the mining of a cryptocurrency
blockchain, as well as off-chain or client code that run asset (by the project’s creators and core software
on a user’s machine. Plutus smart contracts are developers) before a project is introduced to the
written is the programming language Haskell. public and its underlying blockchain network protocol
Point of Sale (POS) goes live for the first time. Pre-mining allows the
Point of sale (POS) can refer to the physical or virtual founders of a project to possess a pre-designated pool
location of a customer’s purchase of an item, or the of funds, which is often used to ensure the longevity
actual physical point-of-sale device (typically a special of the project. However, pre-mining can sometimes
handheld or stationary electronic device present in a be seen as a controversial practice because the
storefront). POS systems, location, and configuration creators of the project are able to own the assets
enable marketers to target customers for new before a market price is set.
products and service offerings and gain a wealth of Pretexting
information about customers and prospects. Pretexting is a social engineering technique used in
Polkadot cybercrime in which an attacker typically poses as a
Polkadot is a decentralized blockchain network trusted figure such as a bank official, head of a
protocol designed to allow independent blockchain company, or law enforcement officer through
networks to connect and transfer data between one communication channels with the intention of
another through cross-chain interoperable defrauding a victim. By posing as a trusted figure, the
technology. Polkadot was founded by former attackers manipulate victims into sharing sensitive
Ethereum co-founder and CTO Dr. Gavin Wood. data or capital, often through digital channels.
Polkadot makes use of the GRANDPA (GHOST-based Price Discovery
Recursive Ancestor Deriving Prefix Agreement) and Price discovery is the process of determining the
BABE (Blind Assignment for Blockchain Extension) accurate price of an asset in the marketplace. This
mechanisms to form a hybridized Nominated Proof- process is often used in the options and futures
of-Stake (NPoS) consensus methodology. Polkadot markets, or when an asset or class is new. When an
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event takes place that may have an affect on the price priorities of both sides — which is the principal
of an asset — like a major product release or endeavor of incentive alignment.
executive shake-up at a publicly traded company — Private Blockchain
the short term price will fluctuate until the even has A private blockchain system is a distributed network
been factored in to the price. The reaciton of the that operates with key differences to an open public
market represents the period of price discovery. For blockchain protocol like Ethereum or Bitcoin. Private
investors and traders, this phenomenon typically blockchains are often governed by a single entity and
benefits individuals with more experience, knowledge, used by large organizations — enterprise and
and access to changing market data. government, for example — that require access
Price Movement management, ensorship rights, and priveleged privacy
Price movement, or price action, is the occurrence of models. While private blockchains are built with speed
a change in price over time for a specific security, and scalablity in mind to serve the needs of the client
cryptocurrency or asset in the market. Price action organization, they are not decentralized or secured by
forms the foundational basis for market trading and a distributed network.
charting interfaces. Private Key
Price-to-Earnings Ratio (P/E Ratio) Public-key cryptography (asymmetric cryptography) is
The price-earnings ratio (also known as the P/E ratio, a specialized cryptographic system that utilizes pairs
P/E, or PER) is the ratio of a company's share price of lengthy alphanumeric keys that only function when
relative to the company's per-share earnings. The used in tandem. Public keys represent a wallet
ratio is used to determine the relative value of a address that can be distributed to others. Private keys
company’s shares, and whether the share price is are to be known only by their owner and grant access
currently overvalued or undervalued. The price- to funds. The generation of these keys is made
earnings ratio can also be used to compare a possible by the usage of cryptographic algorithms
company’s current value to its historical value, or to based on mathematical problems to produce a one-
compare different aggregated markets against each way function.
other over a period of time. The P/E ratio is a key tool Probabilistic Nanopayments
for fundamental analysts determining an asset's A probabilistic nanopayment is a specialized payment
intrinsic value. mechanism utilized on the Orchid blockchain
Prime Rate platform, a blockchain-based VPN provider. Orchid
The prime rate (prime) is the interest rate central and users purchase network bandwidth by paying rapid-
often commercial banks charge borrowers with the paced microtransactions in Orchid’s native utility
strongest credit ratings, typically large corporate token (OXT). Probabilistic nanopayments are used as
entities. In the United States, the federal funds rate, representative placeholder transactions until OXT
the overnight rate banks utilize to lend to each other, payments are consolidated and resolved. Probabilistic
is determined by the Federal Reserve. The federal nanopayments play a definitive role in Orchid’s
funds rate serves as the basis for the prime rate, while internal transaction management system by lowering
the prime rate serves as the starting point for most costs and increasing network speed and transparency.
retail bank interest rates, including for mortgages, Profit and Loss (P&L)
personal loans, and small business loans. Profit and Loss (P&L) is a macro-level measurement of
Principal how much capital has been gained or lost through
The term principal can have multiple meanings in the trading for an individual or institution. P&L is an
financial industry, but typically refers to the original important datapoint for institutional investment firms.
sum of money borrowed in a loan agreement. For Unrealized P&L represents the amount of profit or
example: If a borrower takes out a $500,000 loss that a trader has taken since opening a particular
mortgage, the principal is $500,000. The fee for position, and is a useful metric for trading derivatives.
providing the loan service is often a percentage based Proof of Authority (PoA)
interest calculated atop the remaining principal. Proof of Authority (PoA) is a consensus mechanism
Principal-Agent Dilemma utilized by many blockchain networks. PoA was
The principal-agent dilemma is a conflict in priorities originally created by Gavin Wood, co-founder of
found between a person, entity, or group (principal) Ethereum and former CTO of Ethereum. PoA is a
and a party who has been authorized to act on their consensus mechanism that leverages the value of
behalf (agent). The dilemma is a result of misaligned identity and reputation instead of cryptographic
incentives when an agent is incentivized to act assets or computational power. PoA relies on a limited
towards their own benefit over the benefit of the number of nodes to verify transactions, and is often
principal, or those they are enacted to represent. The criticized for being too centralized. This trade-offis
principal-agent dilemma is evident throughout offset by remarkable scalability and transaction
business, finance, and markets, and often requires speeds.
changing a system’s reward structure to balance the Proof of Goods and Services Delivered

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In Crypto.com blockchain network architecture, Proof Proof of Stake (PoS) is emerging as one of the most
of Goods and Services Delivered is a status that is widely used blockchain consensus mechanisms in
cryptographically verified to prove that a payment existence today. PoS networks incentivize participants
was sent and recieved correctly between via its Visa to stake native tokens in a a network of validator
card and mobile wallet products into merchant nodes. Upon the close of a transaction block, validator
accounts. This mechanism is used by payment nodes are eligible to be randomly chosen to validate
merchants and customers to confirm the legitimacy of block data, thus generating the subsequent block, and
the payment process and ensure transparency. earning native tokens as reward. A robust nodal
Proof of History (PoH) network offers increased network security, resiliency,
Proof of History (PoH) is a consensus methodology on and computational power. Proof-of-Stake systems
the Solana blockchain that incorporates the also generally enabe validator nodes to contribute
measurement of time into a blockchain ledger with democratically in decentralized platform governance
the intent of scaling and streamlining transactional through voting on key updates and decisions. While
throughput. While most blockchains operate without still a recent innovation, PoS networks are already
a timestamp, PoH functions like a decentralized clock proving faster and more scalable than Proof-of-Work
that enables nodes on the Solana network to process blockchains, in addition to being more energy
transactions without devoting processing power to efficient.
solving for discrepancies in minuscule differentiations Proof of Storage (PoStorage)
in time and order. Proof of Storage (PoStorage) is a consensus algorithm
Proof of Importance (PoI) used by the Filecoin network to prove that network
Proof of Importance is an innovative consensus participants are indeed providing the specified
algorithm developed by the NEM blockchain protocol amount of storage that they claim to be. This storage
and is a variation of Proof of Stake. The system allows space is verified by the network through zk-SNARK
a wide pool of users to participate in the addition of cryptographic proof technology.
new blocks in exchange for receiving tokenized Proof of Work (PoW)
rewards. The rewards are determined in proportion to Proof of Work (PoW) is a blockchain consensus
a score that quantifies the user's contribution to the mechanism first popularized by the Bitcoin blockchain
network. Additionally, PoI encourages healthy activity network. Proof-of-Work systems rely on a process of
of the ecosystem by preventing users from hoarding mining to maintain the network. Miners provide
the XEM asset. computer hardware that competes to solve the
Proof of Replication (PoRep) complex cryptographic puzzles required to confirm
Proof of Replication is one of the consensus data transacted on the network, and are rewarded for
mechanisms used by the Filecoin network. Specifically, doing so with the network's underlying cryptographic
it is a process through which a storage miner proves token for doing so. Proof-of-Work blockchain systems
to the blockchain protocol that it has created a are decentralized and secure as compared to other
distinct copy of a specific piece of data on the network consensus methodologies, but typically
network’s behalf. This process is verified by the struggle to achieve the network scalability needed for
network through zk-SNARK cryptographic proof widespread global enterprise adoption. Proof of Work
technology. is also criticized for its high energy intensivity.
Proof of Service Prospectus
The DASH blockchain features a masternode system A prospectus, as it relates to finance, is a formal
referred to as Proof of Service (PoSe) on account of disclosure document that describes an investment
the critical services that masternodes provide to the offering to potential buyers. It typically provides
DASH network. Proof of Service is the mechanism on investors with details about a specific stock, mutual
the DASH blockchain network used to determine if a fund, bond, or another type of investment describing
stake-bearing masternode is providing the correct the company’s business model, financial statements, a
services in good faith to users who have contributed list of material properties, and other important
tokens to it. information. A prospectus is generally distributed by
Proof of Spacetime (PoSpacetime) underwriters and brokerages to potential buyers who
Proof of Spacetime (PoSpacetime) is a consensus may purchase a security through an Initial Public
mechanism utilized by the Filecoin network. It allows Offering (IPO).
the blockchain to prove its capacity, and in doing so, it Protobuf
can cryptographically verify that the entire file is being Protocol Buffers, or Protobuf, is a Google-based
stored in an unaltered fashion for an agreed-upon methodology developed for serializing structured
time frame. Proof of Spacetime is made up of two data. The system allows interface description
distinct subsets: 1.) Window Proof of Spacetime language to describe the structure of different data
(WindowPoSpacetime) and 2.) Winning Proof of types. This ensures that different distributed database
Spacetime (WinningPoSpacetime). networks — such as blockchain systems — are able to
Proof of Stake incorporate the use of more software programming
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languages to be more adaptable as their capabilities Reps and 78 secondary P-Reps). P-Rep standings are
expand. always changing and are determined by the voting
Provenance power of staked ICX by global ICON Network
Provenance is the historical record of ownership of community members (known as ICONists).
any tangible or intangible asset. Open public Pump and Dump (P&D)
blockchain systems employ an optimal structure for A pump and dump is a scheme that occurs when a
tracking the provenance of assets because of their trader or investment firm buys a large amount of an
permissionless, immutable, and censorship resistant asset — sometimes illegally — and later promotes, or
features. “pumps” up the underlying company with misleading
Public Address information to draw unsuspecting investors to buy in,
A public address is a shortened version of a user’s thus further increasing its value. Shortly afterwards,
public cryptographic key. Public addresses are used to the trader or investment firm “dumps” by selling the
receive transactions through a blockchain network asset at a much higher price, which results in losses to
protocol and are commonly used in place of a public investors who bought in at a later time. In crypto
key. markets, this often occurs when a whale buys a large
Public and Private Keys quantity of a specific crypto asset with a large sum of
Public-key cryptography (asymmetric cryptography) is money to drastically increase the price before selling
a specialized cryptographic system that utilizes pairs after a substantial profit.
of long alphanumeric keys that work together in a Put Option
pair: public keys, which can be distributed to others, A put option contract (the opposite of a call option) is
and private keys, which are known only by their a specialized contract that is sometimes used in
owner. Public keys are used to store cryptocurrencies derivatives trading. It gives an investor the right, but
on the blockchain. They are also used to send not the obligation, to sell an underlying security (or
cryptocurrencies in conjunction with the use of the cryptocurrency, or other type of asset) at a specified
public key's corresponding private key. The generation price within a defined time period. When the option
of these keys is made possible by the usage of contract expires, the investor can choose to sell the
cryptographic algorithms based on mathematical underlying security or let the option contract’s value
problems to produce a one-way function. depreciate to zero. Put options can sometimes be
Public-Key Cryptography used in combination with call options to form unique
Public-key cryptography (asymmetric cryptography) is trading strategies.
a specialized cryptographic system that utilizes pairs
of long alphanumeric keys that work together in a Q
pair: public keys, which can be distributed to others, Qtum
and private keys, which are known only by their Qtum is public Proof-of-Stake blockchain protocol
owner. Public keys are used to store cryptocurrencies based on Bitcoin’s code but modified to allow smart
on the blockchain. They are also used to send contracts to run on top of its UTXO (Unspent
cryptocurrencies in conjunction with the use of the Transaction Output) model. With Qtum Neutron, the
public key's corresponding private key. The generation blockchain is able to connect to several Virtual
of these keys is made possible by the usage of Machines (VMs) simultaneously. This allows Qtum to
cryptographic algorithms based on mathematical make use of the Ethereum VM and its own state-of-
problems to produce a one-way function. the-art x86 VM while leveraging the capabilities of its
Public-Key Infrastructure 1,000-node blockchain network.
Public-key infrastructure (PKI) is a set of policies, Qualitative Analysis
procedures, and hardware-software combinations Qualitative analysis uses subjective judgment to
needed to authenticate users and devices online. In analyze an enterprise’s value or potential long-term
practice, this involves one or more trusted parties growth based on non-quantifiable information such as
digitally signing a digital document or decentralized management expertise, research and development,
ledger in order to certify that a particular industry cycles, and other complex data. Qualitative
cryptographic key belongs to a particular user or analysis is the opposite of quantitative analysis, which
device. PKIs play a pivotal role in creating, managing, focuses primarily on numerical data reporting and
distributing, using, and storing digital certificates, and balance sheets. Both metrics are important to
managing public-key encryption. evaluate in order to gain a better perspective on a
Public Representative Nodes (P-Reps) potential investment opportunity.
Public Representative Nodes (P-Reps) are the most Quick Response Code (QR Code)
powerful nodes that exist within the ICON Network. P- A quick response code (QR code) is a type of matrix
Reps are responsible for network validation and the barcode that uses a machine-readable optical label
creation of blocks and other important processes. (typically scanned with a mobile phone) containing
There are 100 P-Reps that are responsible for the sensitive information about the item it is attached to.
governance of the ICON Network (with 22 main P- QR codes often contain data for a tracker, locator, or
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identifier that points to a mobile application or powerful tool for bad actors targeting users that could
website. QR codes use four standardized encoding potentially lose their all-important data. Ransomware
methods (byte/binary, alphanumeric, numeric, kanji) attacks can pose a heightened threat to
to store data. cryptocurrency users because demands are often
Quorum (Governance) sought in bitcoin or other digital currencies to avoid
A quorum is defined as the minimum number of unwanted detection.
members required to conduct business within a Ransomware-as-a-Service (RaaS)
specific group. As it pertains to blockchain technology, Ransomware-as-a-service (RaaS) is typically a
quorum biasing denotes that if many voters software-based program developed by malicious
participate, the vote is more legitimate than if, in turn, online cybersecurity experts that is sold to less
very few participate. This mechanism can be used to knowledgeable cybercriminals in order to attack
determine the fairness of specific proposed unsuspecting users with the goal of stealing sensitive
blockchain-based governance parameters, such as the data. Hackers often advertise their “service” on online
minimum amount of participating tokens required for marketplaces within the dark web and ask to be paid
a vote to be valid. Typically, if a vote fails to reach the in cryptocurrency for their products and services.
quorum, then it is automatically cancelled. Real Estate Investment Trust (REIT)
A real estate investment trust (REIT) is defined as a
R company that owns, operates, or finances income-
Radio Frequency Identification (RFID) generating real estate. REITs are generally modeled
Radio-Frequency Identification (RFID) uses after mutual funds and pool the capital of numerous
electromagnetic fields to identify and track tags which investors together, so a purchaser is not required to
are attached to objects. A RFID tag is made up of a individually own property to potentially receive
very small radio transponder as well as a radio financial rewards.
transmitter and receiver. RFID tags can be triggered Reciprocally Analogous Virtual Machine (VM)
with an electromagnetic pulse from a nearby RFID A reciprocally analogous Virtual Machine (VM) is a
device reader to transmit digital data often underlying type of VM that is designed to communicate in a
an inventory number back to the reader. This beneficial manner with another VM or
specialized number can be utilized to monitor blockchain/computer system. A VM is a cloud-based
products that have RFID tags attached to them, so the imitation of a computer system that is based on
items can be authenticated, tracked, and located at different types of computer architecture to provide
any time (in this case through the VeChainThor the functionality of a physical computer system. VM’s
blockchain platform). may be made to emulate types of specialized
Random-Access Memory (RAM) hardware, software, or a combination of the two.
Random-access memory (RAM) is a type of computer Additionally, some VM’s are built to mimic different
memory that can be read or changed in any order to computer architectures and software applications
store specific working data and machine code. RAM and/or operating systems written for another type of
can be read or written in nearly the same amount of computer or architecture.
time regardless of the physical location of the data Recovery Phrase
within the memory. A recovery phrase, also referred to as a “seed phrase”
Random Beacon (Keep Network) or “recovery seed phrase," is a 12, 18, or 24-word
A Random Beacon is a specialized blockchain-based code that is used as a backup access mechanism when
random number generator used by the Keep Network a user loses acess to a cryptocurrency wallet or
blockchain protocol to help employ its associated private key. The seed phrase matches
containerization private data model. The Random information stored inside the a corresponding wallet
Beacon uses threshold signatures with digital that can unlock the private key needed to regain
signature relays to randomly select groups of KEEP access.
token holders to be network transaction signers. Recovery Shares
Signers are responsible for creating new bitcoin key Recovery shares are a security mechanism that allow a
pairs that are used to create tBTC tokens. user to designate how many shares are created, and
Randomness is an integral component in creating what percentage are required to regenerate a wallet
secure and hack-resistant technical blockchain and its pubic and private keys. For example, a user
architecture. could potentially designate a 5-of-7 share threshold to
Ransomware determine the number of recovery shares needed to
Ransomware is a type of malware or malicious open their wallet. Compared to a solitary recovery
software that blocks access to a user’s computer phrase, the recovery shares mechanism makes theft
system or threatens to leak sensitive or personal data. more difficult and simplifies the wallet regeneration
The goal of most ransomware attacks is to extort a process.
ransom payment in exchange for restoring access to Recurring Buy
sensitive encrypted data. Ransomware has become a
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A recurring buy is a practice whereby an investor sets Relay Chain
aside a specific sum of capital to buy a target asset at The Relay Chain is the main protocol and most
recurring intervals. This process occurs when an powerful component of the Polkadot network. It is
investor leverages a stockbroker or exchange to set a responsible for maintaining network consensus with
specific time to purchase an asset or multiple assets the help of the hybrid GRANDPA and BABE Nominated
on a recurring basis. Proof-of-Stake (NPoS) consensus mechanism. The
Regulation T (Reg T) Relay Chain utilizes validators, parachains, collators,
Regulation T, sometimes referred to as Reg T, is a set fishermen, and nominators to ensure the network
of rules that was first implemented by the Federal works correctly at all times and is used as a main
Reserve Board in 1974 to reduce risk in securities control center to interact with external blockchains
transactions. Regulation T enables securities dealers through bridges and internal Polkadot-based
to extend credit to their clients, while its main blockchain protocols (parachains). The Relay Chain
functionality is to control the margin requirements also utilizes the DOT asset to allow various nodes in
and stocks bought on margin by investors. According the ecosystem to work correctly and for other uses.
to Reg T, traders are able to receive up to 50% of a Relayer (0x)
trade’s value via margin from their broker. This Relayers are 0x decentralized exchange (DEX) users
mechanism was put into place to control leverage who host off-chain order books, list buy and sell
trading risk and limit the total buying power of orders, and charge transaction fees. Relayers do not
investors. act as a trusted intermediary on the 0x platform, nor
Regulatory Compliance do they execute trades, however, their main purpose
Regulatory compliance is the process of making sure is to host order books externally to the 0x platform.
specific enterprises meet certain guidelines Relayers help traders find counter-parties (other
introduced by government bodies — such as the participants that transact within the network) and
Securities and Exchange Commission (SEC) in the US. cryptographically move orders between them.
These guidelines seek to protect investors, ensure Remittance
consumer confidence, facilitate the transparency, A remittance is a payment from one place to another,
efficiency, and fairness of markets, and reduce and in most cases involves an individual transferring
financial crime and system risk. Financial services capital to an overseas contact. Typically, these
organizations are further subject to regulations payments are made via an online service provider,
governing customer communications, advertising, cryptocurrency wallet, or other tech-enabled financial
management of client assets, customer understanding conduit, and completing a cross-border money transer
and suitability, conflicts of interest, customer dealings, using a blockchain-based transfer mechanism is
capital regulations, and more. oftentimes quicker and more cost-effective than
Rehypothecation sending a remittance through the traditional banking
Rehypothecation is a process that occurs when banks, system. With the advent of blockchain technology and
brokers, exchanges, and other financial service mobile cryptocurrency wallets, individuals can now
providers use client assets for their own purposes to transfer substantial amounts of capital essentially
benefit both sides. For example, several blockchain anywhere in the world within seconds while incurring
enterprises use a portion of their clients' minimal fees.
cryptocurrency holdings as collateral to be lent to Remittance Network
institutional investors. In exchange, users receive A remittance network is a fintech service provider that
incentivized rewards for holding their assets on the allows enables remittance payments to be sent both
platform. Companies in the blockchain industry that domestically and abroad. Examples of large-scale
make use of this process include Binance, Huobi, remittance service providers include PayPal, Western
Crypto.com, Celsius Network, and BlockFi. Union, and Revolut. As a third-party processor and
Relative Strength Index (RSI) validator of remittance payments, remittance
The relative strength index (RSI), in technical analysis, networks act as a financial intermediary between
is a momentum indicator that’s used to measure the customers and their contacts and often charge
impact of recent price changes to calculate substantial service fees. Blockchain-enabled payment
overbought or oversold conditions of a specific stock, networks have been designed in part to help alleviate
cryptocurrency or any type of investment asset. The current cost and efficiency issues inherent in
RSI is displayed as an oscillator, or line graph that traditional remittance networks and avoid the need
moves up and down, and is measured between the 0 for third-party validators.
and 100. In the investment industry it is commonly Remote Procedure Call (RPC)
accepted that an RSI rating over 70 is overbought or A Remote Procedure Call (RPC) is when a computer
overvalued, while an RSI rating under 30 is oversold or utilizes a computer program that causes a procedure
undervalued. The RSI investment metric like all to execute via a distinct address space on another
technical indicators should only be used as one data shared network or computer. This is done through
point to better analyze current market conditions. coding and by using a local procedure call where the
55
software engineer leverages a location transparency typically buy securities or other assets for their own
so they don’t have to provide details on the remote personal use and generally trade (or hold long-term)
interaction. in much smaller increments compared to institutional
Ren (REN) investors.
The Ren Network is a decentralized protocol of virtual Retrieval Miners
devices called Ren dark nodes that provide network Retrieval miners, along with storage miners, are the
interoperability in order to enable cross-chain lending, two key components that make up Filecoin’s
exchanges, and other services between different DeFi decentralized market structure. The Filecoin network
protocols. To make this a reality, Ren makes use of a benefits three main groups of users: (1) Retrieval
multi-party computation algorithm as a consensus Miners who receive tokens by serving data, (2)
protocol while using the Ren Virtual Machine (RenVM) Storage Miners, who receive tokens by providing
to directly enhance liquidity on the Ethereum storage, and (3) clients who pay to store and retrieve
Network. This functionality enables the platform to data. The retrieval market is built off-chain, and is
lock assets on-chain and mint them individually. The powered by retrieval miners who help transmit data
Ren Network utilizes its own native token (REN), back and forth.
which primarily functions as a payment token to place Return on Assets (ROA)
orders within the network. Return on Assets (ROA) is an indicator that is used to
Repair Miners determine how profitable a company is relative to its
Repair miners are a proposed (as of June 6th, 2020) total assets. This metric allows companies and other
type of mining node within the Filecoin network that organizations to determine how efficiently their assets
is presently in development. Repair miners, once are being leveraged to generate earnings. ROA is
enabled, will be able to facilitate self healing of the displayed as a percentage and is calculated by dividing
Filecoin protocol. At this time, the network is fully the enterprise’s net income by its total asset amount.
functional without the full implementation of repair The higher the ROA, the higher the relevant
miners and other types of miners that will be added in organization's asset efficiency. ROA is often used to
the future. compare similar companies or to benchmark a
Replace by Fee company's current operations against its past
Replace by Fee (RBF) is a Bitcoin protocol tool performance. The ROA indicator also takes into
developed by famous blockchain developer Peter account a company’s debt level unlike other common
Todd that allows one version of an unconfirmed metrics such as Return on Equity (ROE).
transaction to be replaced with another transaction RingCT (Confidential Transactions)
that pays a higher transaction fee. Via RBF, Ring Confidential Transactions (RingCTs) are a
unconfirmed transaction are stored in the mempool, mechanism used within the Monero blockchain
which is where valid transactions wait to be confirmed platform which allows the amount in a transaction to
by the Bitcoin network. From there, these stored be hidden, similar to now the system’s ring signature
transactions can then be replaced with another mechanism obfuscates the details of sending and
transaction if the sender of that transaction offers to receiving addresses. RingCTs drastically improve the
pay a higher transaction fee. As a resut, while RBF can unlinkability and untraceability of transactions within
help reduce network congestion and help prioritize the Monero network by allowing for ring outputs of
transactions in accordance with senders' willingness various transaction sizes, without compromising the
to pay, the mechanism is somewhat controversial anonymity of the transaction. This function was added
because it alters the immutability of the involved to Monero in January of 2017 and made mandatory
transactions. on the network in September 2017.
Reporting Ring Signature
Reporting as it relates to institutional investment is a A ring signature is a mechanism that is used to conceal
process by which analysis tools are used to create the details of a digital signature in order to hide the
reports and compile other data to monitor different specific details of the relevant network transaction.
aspects of a portfolio’s profitability. Reporting This unique digital signature format can be used by
mechanisms can be used for long-term and short-term any member of a group of users that is in possession
(trading) analysis. Specialized reporting tools allow of the correct cryptographic keys. Therefore, it is
institutional investment firms to analyze profit and nearly impossible to determine which group
loss (P&L) data, execution data, position size, entry member’s keys were used to produce the signature,
type, exposure, and much more. which essentially allows the sender of a transaction to
Retail Investor remain anonymous and untraceable. The name 'ring
A retail investor is a non-professional investor that signature' is denoted by the ring-like structure of the
buys and sells securities, mutual funds, signature algorithm, and Monero was the first
cryptocurrencies, or other investment assets through blockchain network protocol to implement ring
a traditional or online brokerage firm, exchange, or signatures in 2015.
other type of investment account. Retail investors Ripple Gateway
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Ripple Gateways are businesses that allow their utilized for many different situations in software
customers to deposit their funds in exchange for development.
Ripple IOUs, thereby providing an entry point into the Rust
Ripple network. Ripple Gateways allow their Rust is a multi-paradigm programming language
customers to transfer both traditional and designed to prioritize safety and performance. Rust is
cryptocurrency funds across the network, and are also syntactically similar to C++ and has gained increased
used to transfer customer-owned Ripple IOUs to use across multiple enterprise industry applications.
another address or withdrawal their funds by Microsoft is experimenting with Rust and has used the
redeeming their Ripple IOUs. Each Ripple Gateway is language to develop a range of security-oriented
designed with specific features which ensure the software components. Graydon Hoare at Mozilla
security of the underlying organization's network and Research initially created the language back in 2010
the capital their institutional clients deploy within the and Brendan Eich, the creator of JavaScript and
network. founder of Brave Browser/Basic Attention Token, was
Risk Management System (RMS) one of the early contributors to Rust's development.
Caspian’s Risk Management System (RMS) is used to Ryuk Ransomware
monitor trading and investment decisions to help Ryuk ransomware attacks are a type of ransomware
ensure greater profitability (by taking into attack in which a malicious actor aims to render a
considerations specific risk-based parameters). RMS target device/network's essential files inaccessible to
can also be used to generate detailed risk metrics that its legitimate users so that the attacker can levy a
allow traders to see the overall market more clearly. ransom against the target. Once the essential files are
This functionality allows users to make better trading corrupted, encrypted, or otherwise compromised, the
and investment decisions. victim is typically unable to regain access to these files
Roll-Up on their own and are pressured to pay the demanded
Roll-ups are an off-chain aggregation of transactions ransom amount, which is oftentimes hundreds of
inside an Ethereum smart contract. Roll-ups are used thousands of dollars per attack. Ryuk attacks are
to combine and process smart contract transactions relatively common and these attacks regularly account
off-chain before settling the final state on-chain. This for tens of millions of dollars' worth of damages each
is done to lower transaction fees given that the rising year.
popularity of decentralized finance (DeFi) offerings on
Ethereum has caused gas fees to increase S
substantially. Roll-ups are considered a throughput Safety Module (Aave)
solution, not a scaling solution, as they usually require Within the Aave economic framework, the Safety
additional hardware to settle transactions on-chain. Module is a specialized security feature designed to
Rootkit mitigate the potential effects of an unexpected drop-
A Rootkit is a specific type of Trojan malware designed off in liquidity, which might otherwise substantially
to gain unauthorized root or administrative access to reduce the AAVE token’s overall value. The Safety
a target device or network. Many rootkits are Module is built using the Balancer liquidity pool and
specifically designed to subvert security software and allows for AAVE and ETH tokens to be staked at a 4:1
contain a variety of tools that enable hackers to steal ratio in order to earn rewards and vote on protocol
personal information, damage, or completely hijack changes. If necessary, up to 30% of the AAVE tokens
an infected device. As a result, rootkits are notoriously staked in the Safety Module can be sold in order to
difficult to detect and remove, and in some cases the provide liquidity to Aave.
only way to remove a rootkit from a device is to Sandboxes
reinstall the device's entire operating system. Within a cybersecurity context, a sandbox is a security
Roth IRA mechanism that is designed to mitigate the potential
A Roth IRA is a U.S. individual retirement account that impact of system failures and/or software
offers tax-free growth on funds vested in the account vulnerabilities by allowing programs to run
and tax-free withdrawals from the account after the independently of and separately from the
account holder meets certain criteria. More device/network's primary operating system.
specifically, Roth IRA account holders that are at least Sandboxes are often used to test out new
59.5 years old or older and have had their account implementations and code bases or audit untested
open for at least five years are eligible to withdrawal programs to ensure that they behave as planned prior
the funds within their account any time they want to deployment. Sandboxes are also commonly
without paying federal taxes. deployed while testing the performance and features
Ruby of a Virtual Machine (VM).
Ruby is a high-level, interpreted, general-purpose Satellite (Storj)
computer programming language designed by Satellites are an essential part of Storj’s decentralized
Yukihiro "Matz" Matsumoto. Ruby supports a diverse data storage network framework which audits Storj
range of other programming languages and can be storage nodes to ensure that they are storing their
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assigned data and acting in an honest manner. Scareware is a type of malware that utilizes social
Satellites receive payments for securing the network engineering to invoke fear, anxiety, and/or shock in a
and periodically distribute payments to storage nodes target in order to persuade to purchase unwanted
for providing data storage. Additionally, Satellites also software. Scareware commonly takes the form of
store the metadata of the network's segmented files, rogue security software, ransomware, or some other
which enables client to receive their files upon type of software that misleads a user into thinking
request. that their device has been infected with a virus. If a
Satoshi Nakamoto user is sufficiently convinced by the scarware's urgent
Satoshi Nakamoto is the pseudonymous individual or and dire warnings, they may be compelled to
group responsible for creating the Bitcoin protocol. purchase additional software to eliminate the alleged
Satoshi Nakamoto famously published the Bitcoin "threat". Oftentimes this program a user downloads
whitepaper in October 2008 and mined the first to fix the purposed issue is actually a malignant virus
'genesis' block on the Bitcoin network in January 2009. or a useless, resource-draining subscription-based
In April 2011, Satoshi Nakamoto posted on an online service.
forum saying that he had “moved on to other things” SCORE (Smart Contract on Reliable Environment)
and disappeared completely from the blockchain SCORE (Smart Contract on Reliable Environment) is
community. Since then, the true identity of Nakamoto ICON’s framework for composing, amending, and
has remained unknown, although there are a variety initializing smart contracts on the ICON network. In
of unproven theories which claim to have unraveled ICON 1.0, smart contracts were written in Python. In
the mystery of this individual/group. the upcoming release of ICON 2.0, SCORE will be
Satoshis adapted to utilize JavaScript. This should lead to
Named after the pseudonymous individual or group increased performance and better integration with
that created Bitcoin, Satoshis, or “sats,” are the ICON’s Virtual Machine. This should also improve
smallest divisible unit of the Bitcoin cryptocurrency. integration and development capabilities for software
Like all cryptocurrencies, Bitcoin are fully divisible and developers.
there are 100 million satoshis in one Bitcoin token Screen-Locking Ransomware
(BTC). Many crypto enthusiasts track the price Screen-locking ransomware is a type of software that
fluctuations of their respective cryptocurrencies in blocks a target user's access to their device's
terms of sats rather than fiat currencies, which operating system. This type of ransomware typically
reflects their skepticism/rejection of the traditional works by locking the user’s device and displaying a
financial system. message prompting the user to pay a specific ransom
Scalability unlock their device, or run the risk of forever losing
Within the context of blockchain technology, the contents of their device.
scalability is the capacity of a blockchain network to Scrypt
increase the transactional finality speed and Scrypt is the hash function that converts an input of
throughput needed to improve processing times for letters and numbers into an encrypted output that is
transactions that are being sent and received via used by the cryptocurrency Litecoin. It differs from
network protocol. The higher a network's scalability, the SHA-256 hash function that is used by Bitcoin, but
the more efficiently it can send transactions and it also functions within a similar Proof-of-Work (PoW)
process different types of data. Scalability is one of consensus mechanism. The Scrypt hash function was
the three main characteristics of a mature blockchain originally designed to limit mining to only CPUs and
network, with the other two being decentralization GPUs, although scrypt-capable ASICs have since been
and security. developed.
Scalp Trader Secure Sockets Layer (SSL) & Transport Layer Security
A scalp trader, or scalper, is a type of investor that (TLS) Certificates
typically enters and exits financial positions very A Secure Sockets Layer (SSL) Certificate is a
quickly—usually within the span of minutes or technological standard used to enable a secure
second— with the goal of generating consistent connection between a Web server and client on the
profits from incremental movements in an asset’s internet. SSL certificates are installed on a Web server
price. To acomplish this, scalpers often use high- and scramble transmitted data through encryption
leveraged trading positions in a derivatives trading algorithms in order to prevent malicious actors from
environment. Scalpers are often employed by large being able to access data as it moves from one system
institutional investment firms, equipped with a suite to another. Transport Layer Security (TLS) Certificates
of tools to help automate many of their trading represent a recent, updated version of SSL with
decisions, and allocated a significant amount of further enhanced security.
investment capital in order to make their trades Securities and Exchange Commission (SEC)
worthwhile. The U.S. Securities and Exchange Commission (SEC) is
Scareware a large independent body of the U.S. federal
government that is responsible for proposing
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securities rules, enforcing federal securities laws, and Bitcoin network. This is accomplished by "segregating"
regulating the U.S. investment industry. The SEC is the transaction into two segments by removing the
responsible for protecting investors, maintaining fair unlocking signature's "witness" data from the original
and smooth functioning of U.S. securities markets, portion and appending it as a separate structure at
and facilitating capital formation. the end of the block.
Security Token Self-Regulatory Organization (SRO)
Security tokens are a tokenized stake in the ownership A self-regulatory organization (SRO) is an entity that
of any asset that has value, such as a business or a has the power to independently create and enforce
piece of real estate, which is recorded in a blockchain accepted professional regulations and standards
ledger. Within the context of corporate ownership, without the need for external oversight or
security tokens are analagous to corporate stocks, or intervention.
fractions/multiples of a stock, and therefore represent Self-Sovereign Identity (SSI)
an equity stake in a company, along with whatever Self-sovereign Identity (SSI) is a general concept that
future returns a partial ownership of that business describes a user's ability to own their own identifying
entails, such as dividend payouts. As a result, security data without the need for third-party assignment or
tokens offer a more flexible yet secure way of validation. While there are multiple technical
transferring, exchanging, and storing value. approaches to actualizing SSI from a practical
Security Token Offering (STO) standpoint, none have yet to emerge as a broadly
Security Token Offerings (STOs) are a method of recognized global standard.
distributing security tokens and exist somewhere Sell-Off
between Initial Coin Offerings (ICOs) and Initial Public A sell-off is a sudden, high-volume sale of a security or
Offerings (IPOs). To better understand this, it's other asset which typically reduces the price of the
important to note that security tokens are equity relevant asset, at least in the short term. While there
tokens that represent an equity stake in a company or are a variety of reasons for why a sell-off may occur, in
asset, in addition to whatever future returns are most instances sell-offs take place as a result of
associated with partial ownership of that entity, such widespread market panic, either due to negative news
as dividend payouts. STOs are generally considered or a black swan event, or coordinated market
superior to ICOs due to the fact that STOs offer instant manipulation initiated by institutional investors or
settlement times, clearer regulatory guidelines, higher "whales".
liquidity, and a lower barrier to entry in many Separate Account
instances, among other benefits. Since enterprises A separate account is an investment portfolio owned
that create registered securities must adhere to by an investor that is managed by an investment
specific compliance and regulatory requirements, firm—typically a registered investment advisor (RIA).
STOs avoid a lot of the market ambiguity which Separate accounts provide their owners with real-time
ultimately turned many investors off to ICOs, while visibility into all their holdings and transactions as
continuing to offer a straightforward, investor-friendly they occur, as opposed to retroactively, as is the case
method of issuing, trading, and storing tokenized with mutual funds. While most separate accounts are
equity shares. opened through a financial advisor or investment
Seed Phrase brokerage, they can also be managed through an
A seed phrase, also referred to as a “recovery phrase' insurance company or bank. Separate accounts are
is a 12, 18, or 24-word code that is used as a backup also commonly referred to as separately managed
access mechanism when a user loses acess to a accounts (SMAs) or individually managed accounts.
cryptocurrency wallet or associated private key. The Sequencer
seed phrase matches information stored inside the a As part of the optimistic roll-up layer two scaling
corresponding wallet that can unlock the private key solution proposed for the Ethereum network,
needed to regain access. sequencers — or aggregators — process transactions
Segregated Witness off-chain before sending them on-chain to be
Segregated Witness (SegWit) is the name of a soft fork finalized. While sequencers are financially rewarded
that was carried out on the Bitcoin network which for their role in optimistic roll-up models, they must
changed the transaction format of the protocol. put up a bond — known as a fraud proof — as
Segwit separates signature data from transaction data collateral to disincentivize malicious action. Executed
within the blockchain to increase the total amount of at scale, this methodology could save both capital and
data within a specific block. By rearranging the data offers a boon to Ethereum throughput capacity.
contained in each block more efficiently, more space Serenity
is freed up which allows for the inclusion of additional Serenity is the multi-phased Ethereum upgrade
data. SegWit is capable of increasing Bitcoin's block currently underway that is transitioning the Ethereum
size limit from 1MB to 2MB and was designed to blockchain from a Proof-of-Work consensus
mitigate the blockchain size limitation issues that mechanism to Proof of Stake, while segmenting the
periodically slow down transaction speeds on the network into specialized shard chains that are
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optimized for scale. Both updgrades are Shard chains are created by partitioning a blockchain
groundbreaking technological endeavors that will into smaller, more manageable pieces. This process
increase speed, efficiency, and network scalability on decreases the workoad on validator nodes, which are
Ethereum. Because of the complexity required in only required to store and manage one shard instead
launching Ethereum 2.0, Serenity is designed to of the entire blockchain system. Alongside other
launch in a total of four phases over the next five to optimizations, shard chains are expected to
10 years. Phase 0 was successfully deployed in drasticallly increase netwoek throughput and speed as
December 2020 with the launch of a beacon chain. opposed to monolithic consensus mechanisms. The
Settlement Ethereum 2.0 blockchain will be separated into 64
Settlement is the process of determining when a shards that will operate as smaller blockchains tied to
transaction is completely confirmed, or settled, by all a main Beacon Chain. Ethereum 1.0 is intended to
interested parties. Until settlement provides make up just one of those shards.
confirmation of a completed exchange, the Sharding
transaction remains pending and unresolved. The Sharding is a mechanism that is used to partition a
speed of settlement finality has major economic blockchain network orother type of computer
repercussions for businesses. Longer settlement times network or database. Its purpose it to distribute the
may lead to costly and time-consuming delays, and network's computational and storage workload across
add up throughout a marketplace to significantly slow a broader set of devices, or nodes, in order to increase
the process of conducting business throughout many the throughput and transaction speed of the entire
industries. Shorter settlement times speed up system. Each node only maintains information related
business operations, save money, and remove to its specific shard or partition, and since each node
uncertainty. is only responsible for processing a fraction of the
Settlement Agent Node overall network's transactional load, the network's
On the Crypto.com blockchain, Settlement Agents are overall processing capabilities and resilience can be
network nodes that take the role of enabling vastly improved. As a result, the increased transaction
settlement between the platform's native CRO token speeds made possible through sharding have allowed
and other stable cryptocurrencies like stablecoins. many blockchain-based networks to be exponentially
Settlement agents are relied on by buyers and sellers faster, more secure, and better suited for widespread
to exchange tokens and accurately settle a enterprise use.
transaction. Settlement Nodes are eligible to earn a Shards
profit from charging a .5% fee for payouts made in Sharding is a mechanism that is used to partition a
fiat. blockchain network, or any other type of computer
Settlement Finality network or database. Its purpose it to spread out the
Settlement finality is the process whereby a computational and storage workload across a larger
transaction is absolute and confirmed by a blockchain set of computers to increase the throughput and
network protocol. Before settlement finality is transaction speed of the entire system. Sharding
achieved, the transaction remains pending and may works by increasing the overall capability of the
not be considered completed. Rapid and broad network so that each node isn't responsible for
settlement finality is necessary to achieve high processing the entire network's transactional load.
throughpot scalability on a blockchain, the Instead, each node only maintains information related
achievement of which remains pivotal to the to its specific shard or partition. Increased transaction
widespread applicability of decentralized tech for speeds through sharding allow blockchain-based
global enterprise use. networks to be exponentially faster and better suited
SHA-256 for widespread enterprise use.
SHA-256 is a member of the SHA-2 cryptographic hash Sharing Economy
function family that was designed by the National The sharing economy is a socioeconomic system built
Security Agency (NSA) and later made famous for around the concept of mutually sharing resources
being a foundational aspect of the Bitcoin blockchain within a network to benefit all its members. This
network. SHA-256 is a Secure Hash Algorithm (SHA) process is typically enabled through peer-to-peer
that to secures data by utilizing a cryptographic (P2P) networks which allow for the purchase and/or
mathematical operation to generate a unique 256-bit, exchange of goods and services in a way that differs
64-character random sequence of letters and substantially from traditional company-to-customer
numbers (called a hash) out of an input. These business models. In recent years, the sharing economy
functions are generally designed to serve as a one- model has given rise to a variety of innovative
way function that is virtually impossible to reverse business models, ranging from ride-sharing to
once a piece of underlying data has been amended decentralized content platforms. Open public
into its hash value. blockchain networks help realize the potential of the
Shard Chain sharing economy by virtue of their decentralized,
transparent, and censorship-resistant nature.
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Shielded Transaction user data and a broad range of user access
Shielded transactions are a unique transaction type credentials. Attackers executing a SIM swap attack will
that conceals specific data about a transaction, such oftentimes deploy a variety of social engineering
as the amount being transferred or the involved techniques, such as calling a cellphone provider and
account addresses, in a way which is still verifiable on impersonating the victim, with the goal of obtaining
the blockchain. While different blockchain projects sensitive personal information about the victim. If
deploy different methods to enable the use of successful, the attacker will typically use the
shielded transactions, many of these methods involve information they acquired to request a new SIM card,
zk-SNARK cryptography to obfuscate transaction data which will allow them to gain control over the victim’s
prior to the transaction being recorded in a phone number and whatever potentially sensitive
blockchain. data is linked to that number.
Shielding Transactions Slippage
Shielding transactions take place on the Zcash Within a financial context, slippage refers to the
protocol when data is sent from a public sender to a difference between the expected price of a trade
private receiver. Zcash employs the usage of zk-SNARK relative to the actual price at which the trade is
cryptographic proof technology to keep sheild the executed. Slippage generally occurs when an investor
data and keep it private, immutable, and secure, buys or sells an asset on a platform with poor liquidity
despite the differing privacy requirements of the and low trading volume. If there is a large gap
transactors. between the bid-ask price on an exchange's order
Sidechain book, the asset purchaser may end up paying more for
A sidechain is an external secondary blockchain an asset or receive less of the asset than expected
protocol that is connected to a primary blockchain once the trade has been executed.
network (mainchain). Sidechains are typically Slot
designed to allow for the transfer of data and value The Cardano blockchain utilizes a protocol called the
between themselves and the mainchain, and Ouroboros Praos protocol. This unique consensus
oftentimes use a different consensus mechanism than mechanism functions by breaking down time into
the mainchain. As a result, sidechains can allow for a epochs that last approximately 5 days, which are then
higher degree of flexibility and scalability, given that broken down into 432,000 slots. Nodes are selected at
systems with a significant sidechain interoperability random to be slot leader, which in turn are selected to
component are often designed to cater to a broader produce blocks.
range of enterprise and individual users. Smart Contract
Signature-Based Security Programs Smart contracts are computer programs that run
Signature-based security programs are a type of within a blockchain protocol that automatically
security software that identifies malware using well- execute based on preset conditions. They execute a
known, pre-recorded digital signatures or identifiers. predefined set of terms automatically in a trackable
These programs identify malware by cross-referencing and irreversible manner without the need for a third
a supicious program's digital signatures with the party. Smart contracts are written in various types of
digital signatures of existing malware software which computer programming languages, or even in a
have been stored in a database specifically designed combination of languages. Smart contracts are
to archive and help identify a wide array of designed to solve real-world problems utilizing
documented malwares. computerized systems, and are currently being
Signature (Cryptographic) developed for nearly any industry imaginable.
A cryptographic signature is a mathematical Smart Home
mechanism that is used to verify the authenticity of a A smart home is a tech-enabled home setup in which
digital message or digital document within a digital various functions such as heating, lighting, and
network. Cryptographic signatures are commonly appliance configurations are automated or remotely
used for financial transactions, digital contract managed via network-connected device such as a
management, software distribution, and a broad array mobile phone or tablet. Smart home setups usually
of other use cases that prioritize the accurate involve the use of both hardware and software
detection and prevention of forgery and data- solutions to improve occupants' convenience and
tampering. In regards to blockchain technology, efficiency, and are one of the most widely recognized
cryptographic signatures are typically used to prove applications of Internet of Things (IoT) technology. For
that the correct private key was used to initiate and instance, an occupant's sleep tracker wearable may be
send a transaction through a complex authentication synced to a room's temperature control system, which
process that involves the use of both a private and will then automatically adjust the room's temperature
public key. in accordance with the occupant's sleep patterns and
SIM Swap Attack personal preferences.
A SIM swap attack is an attack that involves taking Smart Order Router (SOR)
control of a victim’s SIM card, which stores private
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Smart order routing (SOR) is an automated online Security Number or Credit Card details, or losing
trading method which detects and executes the best access to one's devices.
available trading opportunity throughout a given Social Engineering
range of financial markets and trading venues. In Social engineering is a broad term that encapsulates a
essence, when implementing SOR an investor feeds a wide array of techniques that exploit psychological
pre-established set of conditions to a set of bots or factors – such as fear, trust, panic, lack of information,
algorithms which then scan multiple markets using and confusion – to compromise a target. Rather than
their given criteria in order to find the optimal directly hacking a system or identifying technical
environment to execute a given order. Investors weakness in a target's devices or digital accounts,
typically program the algorithms used to run SOR to social engineering focuses on the manipulation of
differentiate various trading venues in accordance individuals to perform acts which may not be in their
with common parameters such as latency levels, fee best interest, such as divulging sensitive data or
structures, and available liquidity, as well as more inadvertently transferring funds to a malicious actor.
complex parameters specific to that investor's unique Social engineering tactics can also be used to gain
trading strategy. As a result, running SOR requires access to networks and devices, in which case a
robust API integrations across different platforms in malicious actor can wrest control away from the
order to effectively utilize this data-intensive, legitimate owner to install malware in the system.
multiplatform trading strategy. Soft Fork
Smart Pools (Balancer) A soft fork is a software update of a blockchain
On the Balancer platform, Smart Pools are liquidity network that is backward compatible, meaning that a
pools with adjustable parameters that can be piece of software which has undergone a soft fork
managed via a smart contract. These pools can be remains interoperable with its older legacy system.
made of two-to-eight different token constants, and This means that nodes can continue to communicate
can be customized with configurable weights in order with nodes that have not upgraded. By contrast, if a
to represent the desired ratio of each token within a blockchain undergoes a hard fork, only new blocks
given pool. In addition to customizing token mix and generated afterwards are recognized as valid. As a
weight, Smart Pool managers can also change swap result, soft forks generally entail less drastic protocol
fees, select/restrict liquidity providers, set max changes than hard forks.
deposit value limits, and start/stop trading tied to Software Development Kit (SDK)
their pool. These variable parameters allow for a A software development kit (SDK) is a specialized suite
hitherto unprecedented level of flexibility for liquidity of software development tools created in order to
providers on Balancer. enable software engineers create digital applications
Smart Token and perform other useful functions. Most SDKs
Smart tokens are cryptocurrencies that can be include common software development tools such as
programmed with a near-infinite range of parameters. compilers, debuggers, and software frameworks,
The purpose of a smart token depends on the specific which make it easier for developers to design and
parameters it was programmed with, with some smart build new software. There are a wide array of
tokens used to help reduce liquidity risk, improve available SDKs catering to different platforms and use
security measures, or shape consumer behavior. For cases within the blockchain development scene and
instance, a smart token can be programmed to beyond.
dynamically adjust its value in accordance with a Software Wallet
Constant Reserve Rate (CRR) pegged to a different A software wallet is a digital wallet which stores a
base currency, programmed to work only with certain user's public and/or private keys, thereby securing the
vendors or when purchasing certain items, or user's digital assets. Since software wallets are
designed to expire after a set amount of time. The essentially computer programs, they are typically
Bancor Network's Bancor token, released in June locally stored in a user's desktop or mobile phone and
2017, is widely recognized as the world's first smart are remotely connected to the internet. Software
token. wallets are oftentimes more convenient than
Smishing hardware wallets, but are also generally more
Smishing is a variant of a phishing attack which susceptible to hacks. Common types of software
involves the use of misleading SMS or text messages wallets include desktop wallets and mobile wallets.
to misdirect a target into sharing sensitive information When using a software wallet it is important for users
or access. The text messages involved in a smishing to keep devices and software up to date in order to
attack often contain malicious links or a fradulent minimize the risk of a cybersecurity breach.
customer support or authoritative phone intended for Solana (SOL)
the target to click on or call. If a target responds to Solana is a smart contract-enabled blockchain that
this call to action (CTA), it will typically go on to trigger aims to natively solve many of the scaling and
some form of compromising activity, resulting in the throughput issues faced by other layer-1 blockchain
divulging of sensitive information such as one's Social networks. SOL is the native token of the Solana
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network, and is burned to pay for fees on the Solana A stablecoin is a digital currency created with the
network. Solana's users can also stake SOL in order to intent of holding a stable value. The value of most
become a blockchain node, and the platform intends existing stablecoins is tied directly to a predetermined
to enable SOL to be used in Solana platform fiat currency or tangible commodity, like Gemini dollar
governance in the future. (GUSD), which is pegged 1:1 to the US dollar.
Solidity However, stablecoins can also achieve price-stability
Solidity is the software development programming through collateralization against other
language designed specifically for Ethereum’s cryptocurrencies or algorithmic token supply
blockchain framework. Solidity is an object-oriented management. Since stablecoins do not fluctuate
programming language designed for building smart significantly in price, they are designed to be used
contracts that work in unison with the Ethereum rather than an as an investment.
Virtual Machine (EVM) and the Ethereum network. Stake (eos.system)
Solvency On the EOS system, when software developers deploy
Solvency is the ability of an organization to meet its and interact with smart contracts through introduced
financial obligations from a regulatory and compliance actions, they are backed up via other types of
standpoint. For GUSD, this means that the amount of resources: RAM, CPU and NET. Developers are able to
USD maintained in a holding account is equivalent to stake NET and CPU, and purchase RAM with EOS
or greater than the tokens in circulation. This solvency coins.
measure affirms that the Gemini Dollar tokens Staking
maintain their value for both the short term and the Staking is the process through which a blockchain
long term. network user 'stakes' or locks their cryptocurrency
Spear Phishing assets on a network as part of the consensus
Spear Phishing is a variant of phishing which targets a mechanism, thus ensuring the security and
specific individual, organization or business. As is the functionality of the chain. Staked assets are usually
case with most phishing attacks, spear phishing held in a validator node or crypto wallet, and in order
typically entails the use of misleading emails or other to encourage staking most projects reward the
forms of electronic communications. Attackers may holders of staked tokens with annualized financial
tailor these fraudulent communications with the returns, which are typically paid out on a regular basis.
target's position within an organization in mind, or Staking is a core feature of Proof-of-Stake (PoS)
include other contextual information to more blockchain protocols, and each blockchain project
effectively mislead the victim. As a result, spear which incorporates a staking feature has its own
phishing requires more background research on a policies for staking requirements and withdrawal
target than most other forms of phishing attacks. restrictions.
Speculative Investment Staking Pool
A speculative investment entails a considerable On a Proof-of-Stake network, staking pools allow
degree of risk of financial loss, both in terms of multiple cryptocurrency stakeholders to combine
principal and potential unrealized gains. However, tokens in a collective pool in order to secure the
speculative investments are usually those with a high benefits held by a larger, collectivized network stake.
potential upside, making them attractive By combining computational resources, the individual
opportunitties for investors with a high tolerance for stakeholders who choose to participate in a staking
risk. Many blockchain skeptics consider pool aggregate their staking power to more effectively
cryptocurrencies a speculative investment, while verify and validate new blocks, which consequently
more traditional speculative investments include increases their chances of earning a portion of the
investment in early-stage startups, trading options, resulting block rewards.
and certain commodities. Stalling Delay
Spot Market A stalling delay is a coded, time-based technique that
The spot market is a public financial market in which certain types of malware use to bypass a network's
the trade of financial instruments or commodities are cybersecurity defenses. After infecting a target
immediately settled and delivered. While the delivery system, malware with a stalling delay mechanism
of physical goods purchased may be slightly delayed typically executes a series of useless, innocuous CPU
due to real-world logistical considerations or business cycles in order to delay the execution of its actual
protocols. However, spot market purchases are malicious code until the target network is no longer
settled at the price fixed at the point of purchase on alert. If the malware successfully bypasses the
rather than the price at the time of distribution. This security's defenses, it can then go on to execute its
contrasts with futures markets, in which delivery is malicious code with full effect.
due at a later date, and prices may fluctuate in Standard Deviation
accordance to market movements which occur after Standard deviation is a measure of how far each
an exchange has been made. observed value in a data set is from the mean value.
Stablecoin This measurement indicates how spread out the data
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is within a data set, and how far specific data is from obligations, and in return earn additional FIL by
the general norm. Within the context of investing, storing data for clients on the network. Due to the
standard deviation can be used to compute a current design constraints imposed by Filecoin's Proof-of-
rate of return on an investment relative to its Replication (PoRep) and Proof-of-Spacetime
historical mean in order to determine the (PoSpacetime) mechanisms, storage mining requires
investment's historical volatility. In general, volatile fairly powerful hardware to meet the network's
investments a characterized by a high standard storage and algorithmic proof requirements.
deviation, while more stable investments usually have Storage Node (STORJ)
low standard deviations. The Storj network utilizes storage nodes to provide
State Machine Replication (SMR) bandwidth to the network and store clients' data in a
State Machine Replication (SMR) is a general secure, decentralized format. Anyone individual or
approach in distributed computing for building fault- entity with a stable internet connection and excess
tolerant systems. This is achieved through the hard drive space and bandwidth can set up a storage
replication of servers (states or state machines) and node. Each month, node operators are compensated
organization of client exchanges with server replicas. via STORJ tokens valued in USD based on current
SMR accomplishes this by deploying copies of a web market rates.
service across a set of servers rather than just one. Store of Value
This approach can potentially increase a system's A store of value is an asset that is expected to
performance and capacity since the replicas provide maintain its value/purchasing power over time and
more resources to the service, while achieving can be reliably retrieved and exchanged at a later
operational fault tolerance through the elimination of date. Assets that have historically been considered
a single point of failure. reliable stores of value include fiat, real estate, and
Status Network Token (SNT) rare metals such as gold and silver. With blockchain
The Status Network Token is the native ERC-20 utility technology growing increasingly mainstream, an
token of Status Network, an open-source messaging increasing number of people now also consider
platform. SNT plays a key role in Status' decentralized certain cryptocurrency tokens, particularly Bitcoin
platform governance, as any Status community (BTC), as effective stores of value.
stakeholder can use SNT to vote on network Storj
proposals. With each vote the SNT committed is Storj is a blockchain-enabled data storage network
cloned into a separate decision token that is counted. that allows users to access remote, decentralized data
As a result, while the amount of SNT tokens a user storage and retrieval services, or offer storage services
holds at that time of the vote represents that user's by using excess hard drive space and bandwidth.
voting power for that decision, it does not cost any While users' files are not stored on the blockchain,
SNT to participate. Storj uses hashing, Proof of Work (PoW), key pair
Stellar (XLM) cryptography, and other blockchain features to offer
Stellar is an open-source, decentralized payment data storage services and rates which are similar to,
protocol that enables seamless, cross-border and in some cases superior to, what is offered by
transactions between all forms of currency. The larger centralized cloud storage services.
project's native token, Stellar Lumens (XLM), is used STRIDE
to pay the network's transaction fees, prevent STRIDE is a threat modeling methodology used by
network spam, and provide liquidity via the Stellar Crypto.com and other enterprises in order to identify
Distributed Exchange (SDEX). and deter potential cybersecurity threats. The word
Stock Keeping Unit (SKU) 'STRIDE' is an acronym that stands for "Spoofing,
Stock Keeping Units (SKUs) are used in inventory Tampering, Repudiation, Information Disclosure,
management to classify a distinct type of item for Denial of Service, and Elevation of Privilege." Each of
sale. Different SKU classifications include color, size, these concepts is a common cybersecurity threat
packing material, manufacturer, description, and category, and security experts typically use STRIDE as
warranty terms. SKUs are used by brands, a conceptual framework in order to methodically
manufacturers, warehouse staff, and retailers to explore various ways in which a system must be
identify items as the move through a supply chain, protected to avoid being compromised.
and to provide data points for enterprise Strike Price
management systems. A strike price is the price at which an investor can
Storage Miners exercise the right to buy or sell an underlying security
The Filecoin protocol relies on storage miners to in an options contract. The value of the strike price is
furnish its marketplace of decentralized cloud storage. set by financial exchanges, and may be a function of
Storage miners are essentially nodes that solve the underlying security's spot price, which is the
cryptographic proofs in order to verify storage across market price of the security on the day the option is
time. These nodes must use Filecoin tokens (FIL) as taken out. For example, suppose an investor
collateral to ensure that they uphold their contractual purchases a $2 monthly call option to purchase
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Bitcoin at $1,000. As a result, the strike price of this same financial effect as the ownership of that asset.
contract is $1,000, meaning the investor can choose Because the value of a synthetic asset is a function of
to exercise their option to purchase the another asset, synthetic assets are considered
cryptocurrency at this price before the month is up derivatives, and synthetic assets have been created to
and the contract expires. mimic a broad range of securities, commodities, and
Substrate assets in global financial markets, the cryptocurrency
Substrate is a blockchain integration platform and sector, and beyond. Synthetic assets typically allow
application development framework that was traders to take a position in an asset without actually
designed by Parity Technologies, the creator of needing to expend the capital to directly buy or sell
blockchain interoperability pioneer Polkadot. The that asset, which has led to the global proliferation of
purpose of Substrate is to help simplify the process of derivative markets for trading synthetic assets.
building dApps or independent blockchains that run Synthetix (SNX)
on the Polkadot network. Substrate accomplishes this Synthetix is a token trading platform built on
by offering a fully adaptable blockchain design Ethereum that allows users to exchange tokenized
framework that features software development in representations and derivatives of cryptocurrencies,
numerous languages, forkless upgradability, light- stocks, currencies, precious metals, and other assets
client architecture, and multifaceted development in the form of ERC-20 tokens. This is accomplished
tools. As a result, Substrate is one of the most through Synthetix' dual-token model, whereby users
powerful components of the Polkadot ecosystem. stake the platform's main token, Synthetix Network
However, blockchains on the Polkadot network do not Tokens (SNX), as collateral in order to create new
need to be built with Substrate. synthetic assets. These 'Synths' are designed to track a
Swing Trader metric, usually price, of a real-world asset, thereby
Swing trading is a market trading strategy that allowing users to invest in the asset without actually
attempts to capture short- to medium-term gains holding it, much like derivatives. Synthetix preceded
based off of fluctuations in the value of stocks, Universal Market Access (UMA), which is also built on
commodities, and/or currencies over a few days or Ethereum and was launched to achieve a similar
weeks. In order to be effective, swing traders must purpose.
actively monitor their positions and time trades
meticulously. Their risk/reward ratio sits on the T
spectrum between that of day traders and trend T-Addresses
traders. In most cases, swing traders typically rely on On the Zcash blockchain, t-addresses are public
charted technical indicators to identify viable trading addresses that offer similar transparency levels as a
opportunities, although technical analysis is regarded standard Bitcoin (BTC) address. By contrast, z-
by many as an imperfect science. addresses are fully private addressess that utilize zero-
Switcheo knowledge proof systems to shield address
Switcheo is a decentralized cryptocurrency exchange transactions and balances. Zcash's dual-address setup
on the NEO blockchain with a product focus on was designed in order to empower users to decide
transparency and convenience that allows for the whether to opt for anonymized or publicy viewable
cross-chain swapping and trading of EOS, Ethereum, transactions, while transactions can be sent freely
and NEO coins. The project’s native token, Switcheo across the different address types.
Token (SWTH), is a NEP-5 standard digital currency Tailgating (or Piggybacking)
that can be used on the Switcheo network for trading Tailgating attacks, also known as 'piggybacking', is a
discounts, as well as for access to several exclusive form of rudimentary data breach that typically entails
offerings and services. SWTH was upgraded in an unauthorized individual following an authorized
October 2020 under a revised monetary policy smart individual into a secured building or area. In most
contract. instances, the perpetrator of a tailgating attack is
Symmetric Encryption attempting to access sensitive information or carry
Symmetric encryption is a form of encryption which out some other malicious act once on the premises.
uses the same key to both encrypt and decrypt While this attack is low-tech and seemingly
electronic information. Both entities communicating straightforward, it is nonetheless a widespread
via symmetric encryption must have identical copies security breach with potentially catastrophic
of this key, which should be kept secret and not consequences.
shared with anyone in order to preserve the security Tardigrade (STORJ)
of their interactions. By contrast, asymmetric Storj approaches its decentralized data storage
encryption utilizes two keys—a public key to encrypt ecosystem by bifurcating its product into the supply
information, and a private key to decrypt information. and demand sides of the market. Tardigrade is a
Synthetic Asset division powered by Storj Labs which focuses on the
A synthetic asset is a financial instrument that derives demand side of the business. In order to make it as
its value from another asset, thereby achieving the easy as possible for anyone to buy decentralized
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storage on Storj, Tardigrade was formed to handle all Testnet
issues relating to the platform's customers, A testnet is a sandbox or testing environment for a
developers, and partnerships. Storj itself, on the other blockchain network typically made available for
hand, is tasked with managing the platform's storage development purposes prior to a mainnet launch.
node operators, tokenomics, and community. Testnets are commonly used to ensure that the
tBTC blockchain system is adequately secure and functional
tBTC is a decentralized and trustless system for in accordance with its intended design. Once the
wrapping Bitcoin on the Ethereum network developed testnet has been audited and pressure-tested,
by the Cross-Chain Group. Each tBTC token is an ERC- developers often fix bugs or add new features to the
20 token redeemable for bitcoin (BTC) at a 1:1 ratio, project's mainnet prior to launch. Testnets are
with a total supply that is also pegged to the total generally not meant to be directly converted into
supply of BTC. tBTC allows users to deposit and mint mainnets, so they are usually unable to broadcast or
Bitcoin tokens on the Ethereum network without a verify network transactions in the same way that a
middleman, thereby enabling users to incorporate mainnet system is able.
Bitcoin into the decentralized finance ecosystem. Tezos (XTZ)
TBTC Deposit Token (TDT) Tezos is a Proof-of-Stake blockchain platform that
The TBTC Deposit Token (TDT) is a non-fungible token provides a decentralized, global computer on which
used in the tBTC mechanism as the medium of developers can build decentralized applications
exchange between tBTC and BTC tokens as the (DApps). XTZ is the native token of the Tezos network,
wrapping takes place. New TDT is minted whenever a used for paying transaction fees on the network,
user requests a deposit to convert BTC to tBTC, and staking, and earning rewards.
burned whenever tBTC is exchanged for tBTC. The DAO
Technical Indicators The DAO was a decentralized autonomous
A technical indicator is a specific mathematical organization that was launched in 2016 on the
heuristic or pattern-based signal based on the historic Ethereum blockchain. The DAO was designed to be an
price, volume, and/or open interest of a security or investor-directed cryptocurrency venture capital fund,
contract. Technical indicators are commonly used by but after raising $150 million worth of ETH through an
traders to predict future price movements, and initial token sale, the project was hacked, resulting in
constitute a fundamental component of technical the loss of millions of dollars' worth of ether. The
analysis. incident hack is notable in the crypto space as it led to
Technical Resistance Level a schism within the Ethereum community that
Within the context of technical analysis, a resistance resulted in a hard fork of Ethereum into Ethereum
level is a specific price point at which a stock or other (ETH) and Ethereum Classic (ETC).
security has exhibited difficulty maintaining or The Gold Standard
surpassing in the past. As a result, once the price of a Money linked to the value of physical commodities
security reaches or nears an established resistance like gold and silver utilizes the gold standard. The gold
level once again, price movement can often stall or standard formed the basis of the international
reverse. Different traders use different forms of currency market until the 20th century. But in 1971,
technical analysis and different time frames to the system came to an end when the U.S. halted the
determine specific resistance levels. In many cases, direct conversion of US dollars into gold.
commonly recognized technical indicators that Third-Party Storage
suggest that a stock has neared its resistance level can Third-party storage refers to a physical or digital
trigger a self-fulfilling prophecy whereby traders storage solution provided and managed by an outside
attempt to front-run the market by selling the security entity such as a bank, centralized cryptocurrency
in anticipation of a trend reversal. exchange, or Amazon Web Services.
Tendermint Core BFT Consensus Timestamp
Tendermint Core BFT Consensus is a language- A timestamp is a digital record or log used to identify
agnostic consensus method designed by the the moment in time that a transaction occurred.
Tendermint team to be a more scalable, secure, and Timestamps recorded onto a blockchain's ledger are
decentralized version of the PBFT, SMR and DLS immutable and unique to the specific transaction the
algorithms. As a result, Tendermint Core supports timestamp is recording.
state machines written in any programming language, Time-Weighted Average Price (TWAP)
enables fast finality rates, and can tolerate up to a Time-weighted average price (TWAP) is a trading
third of its constituent nodes failing abritrarily before algorithm that is based on the weighted average price
the network's performance is significantly affected. of a financial asset over a specified time frame. High-
This consensus engine was used to construct volume traders often use a financial asset's TWAP to
numerous noteworthy blockchains, including the spread a large order across numerous smaller orders
Crypto.com blockchain platform and the protocol for valued at the TWAP price. This is done in order to
Binance DEX.
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avoid abrupty increasing the value of the financial decentralized "Darknode" instead of a centralized
asset due to a sudden, single high-volume order. authority. By locking an asset up in a Darknode until a
Timing-Based Evasion user wishes to redeem it, Ren users are able to
Timing-based evasion is a tactic some variants of complete this asset converstion process in a trustless
malware use to avoid detection within a target yet secure fashion.
system. Malware coded with a timing-based evasion Tokenomics
tactic will only execute its malicious code at certain Tokenomics, a portmanteau of “token” and
moments, like when detection levels are deemed low “economics,” refers to the underlying attributes of a
or in response to pre-defined actions taken by the cryptocurrency token that incentivize users to adopt
system user, like exiting a program or pressing a the token’s project ecosystem. Among cryptocurrency
certain key. investors, the term is commonly referred to in terms
Token of how the token is utilized within the project
Within the context of blockchain technology, a token ecosystem, or how the token will follow a monetary
generally refers to a unit of value for a programmable policy as the project develops. Therefore, the term
asset that is managed by a smart contract and an tokenomics encapsulates a variety of processes and
underlying distributed ledger. Tokens are the primary concepts, some of which are hard-coded into a
means of transfering and storing value on a blockchain blockchain's protocol, and others which are more
network—most often Ethereum. Tokens can also be speculative in nature.
designed to be either fungible or non-fungible, ToolChain
depending on a network's specific needs. And while A ToolChain is a set of software programming tools
many tokens are primarily used for simple designed to simplify complex software development
transactions, an increasing number of blockchain tasks, or to help create specific types of software
projects are designing tokens encoded with a variety programs and applications. This general term should
of wide-ranging use cases, primarily in regards to on- not be confused with Vechain's ToolChain, which is a
chain governance and network maintenance. Blockchain-as-a-Service (BaaS) offering tailored for
Tokenization enterprise use.
Tokenization is the act of converting the value of a Total Value Locked
tangible or intangible asset into a token. The token Total Value Locked (TVL) refers to the aggregate value
itself is a piece of code made up of a distinctive asset of all the assets locked in the smart contracts of a
reference, unique properties, and/or specific legal particular decentralized blockchain protocol.
rights in accordance with the smart contract through Traceability
which the token was generated. Once tokenized, an Traceability refers to the degree to which a third party
asset can be freely transferred, exchanged, or stored is able to track the details of a transaction, such as the
away in accordance with whatever digital platform(s) transaction amount or the identities of the involved
or marketplace(s) the asset's token was designed to parties. Blockchain-based project approach traceabilty
be compatible with. Through tokenization, nearly any in different ways. For example, non-fungible tokens
asset can be seamlessly integrated into the rapidly following the ERC-721 standard are created to
expanding ecosystem of blockchain networks and maximize traceability, while projects like Monero have
digital finance writ large. designed systems that obfuscate user accounts and
Tokenization Standard transactions from external viewers in an attempt to
Tokenization standard refers to the specific technical remain completely untraceable.
architecture of a network's blockchain protocol, which Trading Bots
in turn determines the nature of the tokens that are Trading bots are applications that execute trades
compatible with that network. In the years since automatically within pre-configured parameters and
blockchain technology was first introduced, several environments. Trading bots are widely used by
token standards have gained prominence, with ERC- quantitative traders, market speculators, and other
20 tokens on theEthereum network leading the pack financial market participants. The specific parameters
in terms of ubiquity and adoption. Tokenization each trading bot is set to can be configured in
standards can also be spun off to create new accordance with its operator's personal trading
standards which exist within the same token standard strategy and proclivities.
family. For instance, security tokens (ERC-1400) and Trading Volume
NFTs (ERC-721) are two distinct tokenization Within the context of capital markets, trading volume
standards based on Ethereum. refers to the amount of a security traded over a given
Tokenized Representation time frame. Trading volume is typically reported as
Tokenized representation takes place when a digital the number of shares that changed hands during a
asset is locked up with a custodian, who then mints a given trading session or other period of time. The
one-to-one representation of that token on another trading volume for every openly tradeable asset is
chain. Within the context of the Ren Virtual Machine, constantly changing, and the direction and magnitude
the custodian involved in this process is a
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of these shifts are important variables which most The Transmission Control Protocol/Internet Protocol
investors factor into their analysis. (TCP/IP) is an organized suite of communication
Transaction Cost Analysis (TCA) protocols that is used to connect network devices
Transaction Cost Analysis (TCA) is a system used by over the internet and transmit data through these
institutional investors to study price trends in order to connections. The Internet as we know it was largely
determine favorable trading windows. This metric is designed and built upon TCP/IP, although this set of
calculated in accordance with a specified time period protocols can also be similarly used as a
and with respect to various benchmarks. communications protocol within a private computer
Transaction Fee network.
Transaction fees are the fees charged to execute a Trapdoor Function
transaction on a blockchain, and are typically charged Within the field of cryprography, a trapdoor function,
to the sender. Transaction fees are required to pay for also known as a "one-way function", is an algorithmic
the computational power a network must exert to puzzle that is simple to compute in one direction, but
broadcast and send a transaction. Transaction fees, extremely difficult to solve when taking the inverse
which can be paid out through various mechanisms to approach. This unique feature makes trapdoor
entities that furnish a blockchain network’s functions an invaluable design component that is
transactional capacity, are a key aspect of incentive embedded into a broad range of encrypted messages
models for most networks, including Bitcoin and the and cryptographic transactions.
current iteration of Ethereum (1.0), upon which the TRC-20 Token
fee is called “gas.” Transaction fees are charged every TRC-20 is a smart contract standard for creating
time a person participating in the network sends a tokens using the TRON Virtual Machine. TRC-20
cryptocurrency or specific type of data from one tokens are fully compatible with Ethereum’s ERC-20
recipient to another. Transaction fees vary with each standard.
blockchain and often fluctuate according to the total Treasury Bills (T-Bills)
transaction volume currently taking place on a Treasury bills (T-bills) are a short-term financial
network. instrument issued by the U.S. government. These
Transaction ID fixed-income securities generally have a maturity
A transaction ID, or transaction hash, is an immutable period lasting four weeks up to a year. Due to their
record of a digital transaction that’s been recorded short duration, T-bills do not compensate investors via
onto a blockchain ledger. Users are able to look up regular interest payments. Instead, T-bills are sold at a
any past transactions using its corresponding discount to their face value at the point of purchase,
transaction ID, typically with the help of a blockchain and investors recieve the full face value amount once
explorer. In some instances, a cryptocurrency the T-bill reaches maturity.
recipient may request the transaction ID from the Treasury Bonds (T-Bonds)
alleged sender in order to verify that the transaction's Treasury bonds (T-bonds) are securities that the U.S.
origination point. government typically issues as a debt instrument to
Transaction Settlement Time fund various government operations and
A transaction's settlement time refers to the elapsed commitments. These securities typically have
time between when a transaction is initiated and maturities of more than 20-30 years, and pay a fixed
when assets are deposited in the recipient's account return every six months. Generally speaking, the
after all relevant financial institutions and/or longer the maturity period of a T-bond, the higher its
algorithmic protocols confirm the transaction as valid. annual yield. Once a T-bond has been sold by the
The length of settlement times vary widely depending government in a initial auction, it can be freely traded
on the structure of the different networks and in the secondary markets.
organizations that process the transaction. Tribute to Talk
Transactions Per Second Tribute to Talk is a feature that blockchain-enabled
Transactions per second (TPS) refers to the number of messaging platform Status created in order to prevent
data transactions that a computer network can exact malicious activity and spam from cluttering its
within a second. The TPS measurement used for network. Status users can set a Tribute-to-Talk
sending data on a blockchain network is often an requirement, which is the minimum amount of Status
indicator of the protocol’s overall network speed and Network Token (SNT) a non-whitelisted user needs to
scalability, and measures how quickly a specific stake in order to send them a message. If the message
platform can send data like cryptocurrency recipient responds to the sender's message, the
transactions and the execution of smart contract sender's staked SNT is sent to the recipient. If the
functions. Highly scalable networks with high sender's message is ignored or rejected, the sender's
transaction speeds are a requirement for the staked SNT is returned to them and they will be
widespread adoption of blockchain technology. unable to attempt to contact the recipient for a period
Transmission Control Protocol/Internet Protocol of time.
(TCP/IP) Trojan
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Within the context of cybersecurity, a Trojan describes TRONZ is a smart contract privacy protocol that was
any type of malware which disguises its true intent in introduced with TRON 4.0 in July 2020. TRONZ is built
order to gain unauthorized access to a target device or upon the zk-SNARK methodology, the core privacy
network. In most cases, trojans are designed to look technology of Zcash (ZEC). TRONZA gives users more
like an innocuous program or are discretely attached flexible transaction privacy settings, which can be
to another piece of software a target is likely to install. adjusted in accordance to the user's situational needs.
Once a trojan has infiltrated its target it is free to Troy Ounce
execute its malicious code, which in most cases will The troy ounce is the global standard for measuring
damage, steal from, or otherwise disrupt the target the weight and implied purity of precious metals. One
device or network. troy ounce is equal to approximately 31.1 grams, in
Trojan Bankers contrast to the standard ounce which is 28.35 grams,
A Banker Trojan is a specific type of Trojan malware and this unit of measure is commonly abbreviated as
that is designed to gain unauthorized access to either “t oz” or “oz t”.
confidential information or assets stored in online Trust Company
banking systems. A Trust Company is a legal entity that acts as a
Trojan Downloader fiduciary, agent, or trustee on behalf of an individual
A Trojan Downloader is a specific type of Trojan or organization. These companies are typically
malware that lays dormant inside an infected device charged with holding assets that it does not own on
until an Internet connection becomes available. From behalf of a client, and responsibly managing those
there, the trojan downloader will connect to a remote assets until they are required by law to be transferred
server or website and download additional unwanted to a specified beneficiary party. Since trust companies
programs onto the infected device. are fiduciaries, they have a legally binding
Trojan-Ransom Malware responsibility to act on behalf of their clients' financial
Ransomware Trojans are a specific type of Trojan interests.
malware designed to extort a victim after Trusted Execution Environment (TEE)
compromising the victim's device. In most cases, A Trusted Execution Environment (TEE) is an isolated
ransomware trojans will demand a payment in environment within a device's main processor that
exchange for undoing the damage the Trojan has allows for the secure and private execution of code
inflicted to the victim's device. However, some forms without the risk of interference from the rest of the
of ransomware trojans may demand other forms of device or system. Only properly authorized code can
payment, like sensitive information or performing be executed within a TEE, which utilize use both
specific acts. hardware and software to protect data and code from
TRON the external environment. Furthermore, the different
Tron is a blockchain project dedicated to building the trusted applications within a TEE are protected from
infrastructure for a decentralized Internet. While the each other via software and cryptographic solutions,
project initially started as a decentralized and these trusted applications have full access to the
entertainment platform with distributed storage device's main processor and memory. TEEs are
technology, the project's ambitions have grown to generally used to improve the overall security of a
closely resemble those of Ethereum. The Tron device or network and ensure that certain core
network's native token, TRONix (TRX), is used as a processes can operate with full reliability and integrity
payment method across Tron's evolving service without the risk of being compromised.
ecosystem. Trustless
TRONix (TRX) When a system is trustless within a peer-to-peer (P2P)
TRONix (TRX) is the native token of the Tron blockchain network, it means that all participants in
blockchain protocol. While the token was initially used the network do not need to know or rely upon
only to pay content creators for digital content on the verification from one another or a third party. This
Tron platform, TRX has evolved into a more broadly means that the system is run autonomously by the
accepted payment method across Tron's evolving underlying technical architecture and consensus
service ecosystem. mechanism of the blockchain protocol itself.
TRON Virtual Machine (TVM) Transacting on a shared, trustless network is not
The TRON Virtual Machine (TVM) is a Turing complete beholden to a central organization to ensure trust,
virtual machine that provides a feature-rich and user- and is a key value proposition of blockchain
friendly environment for developers to build and test technology. A number of innovations underlay the
decentralized applications (dApps) and other web trustless nature of blockchain networks, including
services within the Tron ecosystem. TVM is Tron's immutability, decentralization, transparency,
equivalent of the Ethereum Virtual Machine (EVM), censorship resistance, and neutrality.
and all software projects created through TVM are Turnkey Solution
fully compatible with EVM. A turnkey is a product or service that can be sold to
TRONZ any applicable buyer as a complete, ready-for-use
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product without the need for user customization. specific measurement unit to a good or service, the
Turnkey solutions therefore differ from a built-to- monetary value of that offering can be clearly
order products, which are designed in accordance to a understood in abstract terms without the need to
customer’s unique specifications. resort to bartering. The need for units of account to
Two-Factor Authentication (2FA) optimize market transactions is one of the three
Two-factor authentication (2FA) is an extra layer of fundamental functions of money, the other two being
security for user accounts. In its most common form, usability as a store of value and a medium of
2FA requires a user to further verify identity after exchange.
entering the account password. This additional UNI Token
verification is typically achieved by inputting a UNI token (UNI) is the native governance token of the
randomized code generated through a secondary Uniswap Protocol, a decentralized cryprocurrency
device or program. As a result, 2FA mitigates a variety exchange (DEX). The token was initally released on
of cybersecurity risks stemming from both device September 2020, when Uniswap airdropped 400
hacks and human error. tokens into each unique cryptocurrency address that
had ever interacted with Uniswap Protocol prior to
U September 1, 2020. This first round distribution
UMA Improvement Proposal (UMIP) reached ~50,000 Ethereum addresses, immediately
UMA Improvement Proposal (UMIP) refers to the making UNI one of the most widely distributed tokens
document used to propose changes to the UMA within the cryptocurrency space. In total, 60% of UNI's
ecosystem. UMA token holders can use UMIPs to genesis supply is intended to go to the community,
propose and approve new financial contract while the remaining 40% have been allocated to
templates, new price identifiers, and other Uniswap team members, investors, and advisors.
governance changes to UMA's data verification Universal Market Access (UMA)
mechanism. Universal Market Access (UMA) is a specialized
UMA Token protocol built on Ethereum that allows users to create
The UMA token is the native governance token of the custom synthetic cryptocurrency tokens. Synthetic
UMA network. UMA users are able to use UMA tokens tokens are collateralized by another asset, while
to vote on how to resolve price disputes that occur on reflecting that asset's price in real time. Essentially any
the network as part of its data verification type of asset, both physical and digital, can be
mechanism, and make changes to the mechanism via tokenized via UMA and integrated into the rapidly
the UMA Improvement Proposal (UMIP) governance evolving ecosystem of blockchain-enabled
process. decentralized finance (DeFi).
Unbanked Unspent Transaction Output (UTXO)
The 'unbanked' refers to individuals without access to A Unspent Transaction Output (UTXO) is the amount
the traditional banking system and modern-day of cryptocurrency that remains after a transaction is
financial services. Most individuals who are executed. Each UTXO represents a chain of ownership,
considered 'unbanked' lack a stable internet which is represented as a chain of digital signatures in
connection and/or reside in an underserved which a transaction originator signs a message
community or developing country. As a result, these transferring ownership of their UTXO to the recipient's
individuals are effectively excluded from participating public key. As a result, UTXOs are responsible for
in the global economy. It is a primary goal of sectors beginning and ending each cryptocurrency
like finTech, DeFi, and blockchain to support the transaction.
unbanked by achieving equitable financial inclusion U.S. Financial Crimes Enforcement Network
globally. The Financial Crimes Enforcement Network is a
Uniswap (UNI) division of the U.S. Department of the Treasury that is
Uniswap is a decentralized exchange (DEX) that uses tasked with gathering and assessing information
liquidity pools (LPs) to make markets without the about financial transactions. The goal of the U.S.
need for order books or central facilitators. Uniswap is Financial Crimes Enforcement Network is to prevent
underpinned by smart contracts that facilitate token and solve financial crimes.
swaps and provide the incentive structure for liquidity Utility Token
providers to participate in the system. As one of the A utility token is a tokenized digital asset designed to
first automated market makers (AMMs) to go live on grant its holder access to the products or services of a
the Ethereum network, Uniswap has made significant blockchain protocol. As a result, utility tokens are
strides in proving that AMMs can be an effective tool intended to be used within the blockchain's network,
for trading digital assets in a decentralized and rather than serve as an investment. However, given
permissionless way. that most utility tokens fluctuate in value in
Unit of Account accordance with its network's perceived popularity
A unit of account is a standard unit of measurement and adoption, many traders and crypto enthusiasts
of the value of a good or service. By attributing a
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nonetheless purchase certain utility tokens as Evaluation function could only have been produced by
speculative investments. someone who had the associated secret key - all
without that secret key ever having to be revealed
V VRFs have a wide range of use cases across various
Validator cryptographic schemes, protocols, and systems.
Within the context of blockchain technology, a Vertical Scalability
validator is an entity responsible for verifying and Vertical scalability refers to a network or device's
approving transactions submitted by users and/or ability to increase its existing hardware or software
blockchain clients. Each blockchain protocol has its capacities by adding supplementary resources. The
own parameters for what constitutes an acceptable most common forms of vertical scalability entail
validator and how these validators operate. Most adding more RAM or processing power to a device.
decentralized blockchain networks rely on some form However, vertical scalability can be accomplished in a
of validator node to process on-chain transactions in a variety of ways, depending on the configuration of the
permissionless and distributed manner. network/device and the nature of the intended
Value Investing upgrade.
Value investing is an investment strategy that involves Vesting
identifying stocks and other securities that appear to Within the context of blockchain technology, vesting
be trading for less than their intrinsic value. Value is the process of releasing tokens that have been set
investors typically conduct thorough due diligence on aside for a specified period of time. These tokens are
the securities they are interested in tracking and typically designated for a blockchain project's team,
adhere to longer investment holding periods. As a partners, and other contributors who are actively
result, these investors tend to ignore price helping develop the project. Funds that have been set
movements that do not appear to correspond with a aside for this purpose are usually locked a certain
company's long-term fundamentals, such as sudden period of time by smart contracts, which effectively
reactions to wider industry news or short-term market seal off access to the tokens until pre-set conditions
events are met.
VeChain Improvement Proposals (VIPs) VeThor (VTHO)
VeChain Improvement Proposals (VIPs) are the design VeThor (VTHO) coins are used to power the Vechain
documents VeChain ecosystem participants and network. New VTHO coins are continuously generated
community members use to propose changes to for VET coin holders each time a new block is created.
VeChain's protocol and development trajectory. There A new block is typically added to Vechain's ledger
are four main types of VIPs: application, interface, once every 10 seconds, and each VET generates
information, and core. Once a VIP is proposed, the 0.00000005 VTHO per new block, which translates to
VIP's author is responsible for building consensus approximately 0.000432 VTHO generated per VET per
within the community and documenting dissenting day. VET holders can increase the VTHO generation
opinions. rate of their VET coins by placing their coins in
VeChain Token (VET) different nodes, which are tiered in accordance with
VeChain Token (VET) is the native governance and their staking requirements. VeChain’s economic
utility token that underpins the VeChainThor model is designed to prevent transaction fees from
blockchain network and overall VeChain ecosystem. fluctuating in relation to the price of VET, thus
VET holders can contribute to the security and ensuring transaction fee consistency and
consensus of the network by holding VET within predictability.
different nodes within the VeChainThor blockchain Virtual Commodities Association (VCA)
(AM’s, XN’s, EN’s). Founded in 2018, the Virtual Commodities Association
Verifiable Random Function (VRF) (VCA) is a non-profit organization working towards the
A Verifiable Random Function is a cryptographic goal of establishing an industry-sponsored, self-
primitive that was conceived of in 1999 and has many regulatory organization for the U.S. virtual currency
useful applications including deterministic industry. The organization began as a committee to
precommitments and having output that is resistant explore ways of ensuring consumer protection and
to preimage attacks. In implementation a VRF consists market integrity in virtual commodity marketplaces,
of three related algorithms that do the following: and has since evolved into a more formalized
Key Generation: A mathematical function that when organization spread across six committees and
given a random input produces a verification key / overseen by a Board of Directors.
secret key pair Virtual Machine (VM)
Evaluation: This function takes a message and the A Virtual Machine (VM) is a cloud-based emulation of
generated secret key to produce a pseudorandom a computer system that provides the functionality of a
output, and an associated proof physical computer system. VMs may be made to
Verification: This function uses the verification key emulate types of specialized hardware, software, or a
and other values to guarantee that the output of the combination of the two, and provide the framework
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for data transactions and transactional execution on more cost-efficient collaborative transactions,
blockchain networks. The most well-known VM in the establish a more automated, frictionless payment
blockchain industry is the Ethereum Virtual Machine framework within CoinJoins, and potentially enable
(EVM). Wasabi Wallet to more seamlessly integrate with
Vishing other technologies.
Vishing is a variant of phishing attack that relies on Wallet
fraudulent phone calls or voice messages to mislead a A cryptocurrency wallet is a device or service that
target into divulging personal information, like stores users' public and private keys, allowing them to
account passwords or credit card details. In most interact with various blockchains and to send and
instances, a malicious actor using vishing will pretend receive crypto assets. Wallets can be digital (software)
to be from a reputable company or a trusted or physical (hardware), hot (connected to the
authority, and their message will often either involve internet) or cold (disconnected from the internet),
the offer of a "free prize" or a fictional crisis that the custodial (a trusted third party has control of a user’s
target must tend to immediately. private keys) or non-custodial (only the user controls
Vitalik Buterin their private keys).
Vitalik Buterin is a Russian-Canadian programmer and WannaCry Ransomware
writer most famously known for co-founding WannaCry (also referred to as WCry, WanaCrypt0r,
Ethereum. In 2013, Buterin published a whitepaper and Wana Decrypt0r 2.0.) was a ransomware worm
proposing Ethereum as a world computer capable of deployed in 2017 that targeted vulnerabilities in the
hosting a wide range of decentralized applications Windows operating system, encrypted files on
(dApps). In contrat to Bitcoin (BTC) — which is more infected devices' hard drives, and demanded a ransom
geared towards payments and serving as store of payment in Bitcoin (BTC) in order to decrypt the files.
value — Ethereum was intended to serve as a “Swiss- The malware rapidly spread through multiple
army knife protocol,” with more flexible and wide- computer networks and impacted users in over 150
ranging applications. Buterin went on to collaborate countries, resulting in billions of dollars worth of
with several other co-founders to develop Ethereum, damages and ransom payments.
which was launched in 2015. To date, Buterin is Watchdog Organization
regarded by many crypto enthusiasts as the de facto A watchdog organization is an entity, often non-profit,
figurehead of Ethereum. that monitors the activities of a government or
Volatility industry with the goal of ensuring that the
Within a marketplace context, volatility refers to the government or industry does not behave illegally or
degree of variation an asset's trading prices undergo unethically. Watchdogs alert the public when they
relative to its mean price over a certain period of have uncovered such behavior.
time. The more volatile the price of an asset is, the Watcher
greater the frequency and number of its price Within the OMG Network, a watcher is a computer
changes. This volatility is usually measured using that monitors the network for unusual and malicious
standard deviations of logarithmic returns. Many activity and ensures that data submitted to the
investors track an asset's volatility in order to identity Ethereum blockchain for finalization is correct. OMG
and capitalize on trading opportunities based on Network’s network of watchers is decentralized and
perceived price trends. However, excessive and any OMG Network user can operate a watcher.
unpredictable price volatility often deters investors Web 3.0
who have a lower risk tolerance. The term Web 3.0 refers to a vision of the third
Volume Weighted Average Price (VWAP) generation of computing, which anticipates that
In technical analysis, volume weighted average price technologies like blockchain will decentralize the
(VWAP) is a benchmark that calculates the average internet and disintermediate web 2.0 companies like
price at which a security has traded throughout the Facebook, enable the online exchange of value, and
day, based on both volume and price. By allow users to own their data.
automatically averaging the intraday closing prices of Web3 Foundation
a security ove time, VWAP is able to serve as a guide The Web3 Foundation is a Switzerland-based
for identifying various support and resistance levels. foundation dedicated to the advancement of Web3
This makes VWAP an important intraday indicator for technologies. Web3 is envisioned as the next era in
traders who rely on technical indicators to more computing which will be focused on the
effectively time when to enter and exit their positions. decentralization of the web, the online exchange of
value, and users owning their data. Founded by Gavin
W Wood, the former CTO and co-founder of Ethereum,
WabiSabi Web3 publishes research on cryptography and other
WabiSabi is an anonymous credential scheme that will blockchain-related fields and provides grants for
be introduced in the Wasabi Wallet 2.0 upgrade of web3-focused startups and blockchain projects. The
CoinJoin. WabiSabi is designed help facilitate faster, Polkadot blockchain is one such project.
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Web Application verifying data on the Filecoin network under the
A web application is is an application software or Proof-of-Spacetime (PoSpacetime) consensus
program that runs on a web server rather than a algorithm. Via WindowPoSpacetime, commitments
device's operating system. Web applications are made by storage miners are audited in 24-hour period
accessible through a web browser with an internet increments, which results in a zk-SNARK-compressed
connection and play a central role in defining online proof being published to the Filecoin blockchain.
user experiences. Withdrawal Allowlists
Web Application Firewall (WAF) Withdrawal allowlists are an optional layer of security
A web application firewall (WAF) is a specific type of in cryptocurrency exchange accounts which allow
application firewall that filters, monitors, and blocks users to establish a list of approved cryptocurrency
HTTP traffic to and from a specified web service. A addresses and to restrict withdrawals to those
WAF sits between external users and web applications addresses only.
and plays a crucial role in securing business-critical Worldwide Asset eXchange (WAX)
web applications and web servers from application- The Worldwide Asset eXchange (WAX) is a blockchain-
layer attacks. WAFs different from network firewalls, based marketplace for physical and virtual items,
which provide a barrier between external and internal including non-fungible tokens (NFTs) and video games.
network traffic and are therefore designed to protect World Wide Web Consortium (W3C)
a secured local-area network (LAN) from unauthorized The World Wide Web Consortium (W3C) is an
access. international standards organization for the World
WebAssembly (WASM) Wide Web. W3C has over 400 members which
WebAssembly (WASM) is a format for computer collectively develop web standards in tandem with the
programs which allows for high-performance public and W3C's full-time staff. Additionally, W3C
applications in web browsers. builds software, educational tools, and other services
Web of Trust to facilitate an open forum for discussion about the
Within the Status Network, the Web of Trust is an internet.
decentralized reputation system in which users Wrapped Bitcoin (wBTC)
deposit tokens against usernames to indicate that Wrapped Bitcoin (wBTC) is an ERC-20 token which
they trust the user. represents Bitcoin (BTC) at a 1:1 ratio. wBTC was
Web Socket jointly created by Bitgo, Kyber Network, and Ren, and
WebSocket is a computer communications protocol was intended to bring more liquidity to the Ethereum
which enables two-way, interactive communication ecosystem, particularly to decentralized finance (DeFi)
between a web browser or other client and a server. applications.
Web Wallet Wrapped Nexus Mutual (wNXM)
A web wallet is a cryptocurrency wallet that is Wrapped Nexus Mutual (wNXM) is a one-to-one ERC-
accessed via a web browser. Many web wallets are 20 representation of the Nexus Mutual token (NXM),
custodial services run by cryptocurrency exchanges. which is the native token of the Nexus Mutual
Web wallets are considered 'hot wallets' because they platform, a decentralized alternative to insurance.
are connected to the internet. While NXM can only be held by members of Nexus
Whale Mutual, wNXM can be owned by anyone with an
In the context of the blockchain industry, a whale is an Ethereum address.
investor who possesses a large enough quantity of a
cryptocurrency to influence its price. X
Whitelabel Product x86 (QTUM)
A whitelabel product is a product or service which is x86 is Qtum’s virtual machine which was developed in
produced by one entity but rebranded by another Intel's x86 machine language. x86 allows developers
entity to make it appear as if they had made it. to write smart contracts in a variety of languages
Whitepaper including C, C++, Rust, and Python. Qtum previously
A whitepaper is a document produced by blockchain utilized the Ethereum Virtual Machine (EVM) and the
projects which outlines the purpose of the technology Solidity programming language.
they propose to create or have created, and describes XBT
how the technology will be implemented, typically in XBT is an alternative ticker symbol for BTC used by
technical terms. Whitepapers are often released when some exchanges. Its format is derived from a currency
projects are in their early stages and are seeking code standard created by the International
funding, though they may be updated as the projects Organization for Standardization (ISO) which
progress. stipulates that supranational currency codes should
Window Proof of Spacetime (WindowPoSpacetime) begin with 'X'.
Within the Filecoin network, Window Proof of XEM
Spacetime (WindowPoSpacetime) is a specialized type XEM is the native token of the NEM blockchain and is
of cryptographic proof which plays a central role in used for payments on the network. Additionally, users
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most hold XEM to participate in NEM's consensus and yaLINK, a derivative of Aave's aLINK, which is itself
process. NEM utilizes a Proof-of-Importance (POI) a derivative of the LINK token.
algorithm for consensus, which determines who may yVaults
produce a block through a calculation of a user's yVaults are a feature of the Yearn.Finance protocol
relative importance to the network. Users' relative which automate the process of yield farming. Users
importance score is based on the number XEM tokens deposit tokens into a yVault, then Yearn borrows
they hold, in addition to the number of transactions stablecoins against the user's asset. The stablecoins
that have been made to and from the user's NEM are then used for yield farming in various protocols,
wallet. Users with high importance scores are more with the vault shifting strategies as opportunities
likely to produce blocks. change. As gains are realized on the stablecoins, Yearn
XRP converts the gains back into the user's original asset
XRP is the native coin of the Ripple Ledger Network. It and the user's rewards are paid in that asset. Each
is designed to be a medium of exchange and value yVault has a different annual percentage yield (APY).
transfer, and is intended to be used as a low cost
bridge between fiat currencies for a broad range of Z-Addresses
global transactions. z-addresses are 'shielded,' or privacy enhanced Zcash
XYM addresses. Transactions between z-addresses do not
XYM is the native cryptocurrency of the Symbol reveal the parties' addresses, the transaction amount,
blockchain and is due to be launched in January 2021. or the contents of the transaction's memo field on the
XYM will be used to pay for transactions on the blockchain. z-addresses utilize zero-knowledge proofs
network. In order to obtain XYM, qualifying XEM to achieve these features. z-addresses are
holders—holders of the native token of the NEM interoperable with transparent z-cash addresses,
blockchain, which was created by the same team and which reveal the transacting parties' addresses,
preceeded Symbol—can claim an equivalent number transaction amount, and the contents of the
of XYM once the new token has been released. transaction's memo field. Users can therefore send
transactions from private address to private address
Y (two z-addresses), from transparent address (t-
Yearn.Finance address) to private address (z-address), or from
Yearn.Finance is a decentralized community focused private address (z-address) to transparent address (t-
on creating a suite of automated, decentralized address).
finance (DeFi) products on Ethereum. Referring to Zcash (ZEC)
themselves as a ‘collective of contributors,’ the Yearn Zcash is a privacy-focused cryptocurrency project
community is an experiment in decentralization, which aims to provide efficient, private transactions
crowd-sourced investing, and product development. for its users via its shielded addresses feature. The
Yearn Improvement Proposal (YIP) Zcash protocol utilizes its native token, ZEC, to
Yearn Improvement Proposals (YIPs) are proposals to facilitate these transactions.
change the Yearn protocol. Proposals are submitted Zero-Knowledge Proof
by Yearn.Finance community members and voted on Zero-Knowledge Proofs are a cryptographic method
by YFI token holders. that provides users with a higher degree of privacy
YFI Token when engaging in digital transactions. In essence,
YFI is the governance token of the Yearn.Finance zero-knowledge proofs enable one party to prove to
protocol.YFI holders can submit, discuss, and vote on another party that they know a specific value, without
proposals to change the protocol via the Yearn conveying any other information apart from the fact
Improvement Proposal (YIP) process. The total supply that they know that value. In short, these proofs allow
of YFI is 30,000, though more tokens can be minted if for information to be accurately verified without
approved through the governance process. sharing any details about the underlying information
Yield Farming and the identities of the transaction participants.
Yield farming is the practice of staking or locking up Zero Knowledge Proof Roll-Up (ZKR)
cryptocurrencies in order to generate rewards. Many Roll-ups bundle and process smart contract
decentralized finance (DeFi) projects rely on yield transactions off of the main chain on sidechains
farming to incentivize users to contribute to the before sending them back to the main chain for
network's liquidity and stability, since these projects finalization. A Zero-Knowledge proof Rollup (ZKR) is a
do not rely on a centralized market facilitator. type of roll-up which bundles transactions,
yTokens compresses them, and then attaches a zero-
yTokens are cryptocurrency derivatives tokens which knowledge proof to attest to the state of the
are awarded to Yearn.Finance liquidity providers (LPs) sidechain before sending the transactions back to the
when they deposit assets into the protocol. Examples main chain. While ZKRs are trustless, they require
of yTokens include yCRV, a derivative of Curve (CRV) specialized hardware.
zk-SNARK
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Zero-Knowledge Succinct Non-Interactive Argument of
Knowledge (zk-SNARK) is a type of cryptographic proof
used to ensure privacy on blockchain-based
distributed ledger systems. It works by proving that
one party is in possession of specific data without
actually revealing the data to the network by using a
secret key before the transaction is broadcasted. zk-
SNARKS became prominent with Zcash, Monero, and
other privacy-based blockchain protocols.

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