Glossary
A
Tokens are sent directly to an individual’s wallet with no associated cost to the receiver.
An algorithm is a list of step-by-step instructions that are used in the process of solving a problem or performing a computation by a computer.
A list of wallet addresses that have guaranteed access to mint an NFT within a specific window of time. Having allow list access can prevent the disappointment of missing out on minting within popular projects, allow you to mint at a time that is convenient for your time zone and avoid paying high gas fees by having the ability to wait for the gas price to decrease.
Alpha with cryptocurrency assets is a financial metric indicating performance. It is the excess returns earned over the benchmark on an investment. Alpha within the NFT space is prized information often realized before most of the market is aware. This information is often found in alpha groups that share exclusive information and opportunities.
Altcoin was originally a term used to describe any cryptocurrency that wasn’t Bitcoin. It is a combination of the words ‘alternative’ and ‘coin’. It is now used to describe any cryptocurrencies that are relatively new to the market and have a small market cap or valuation.
B
Crypto slang referring to an individual’s cryptocurrency holdings.
An individual who holds a specific coin or token, regardless of its performance.
A feeling when confidence is low, and investors hold a pessimistic view of the market. Individuals with this pessimistic view are often referred to as bears.
A period of decline in a financial market when assets fall by 20% or more from recent highs.
This is the pre-release stage where software is offered to a set number of users and testers to test performance in real-world settings.
C
Investors sell their holdings as fast as possible due to a loss of belief that the asset will increase in price. Assets are often sold at a loss and there is a continuing decline in price until a bottom is reached.
CeFi- Centralized Finance
The term CeFi relates to traditional financial services and has an organizational structure that is centralized. CeFi platforms often provide a link between traditional monetary systems and digital asset markets.
An organizational structure that has a single leader or a small number of people who make the decisions and have control of the network.
CEX - Centralized Exchange
A private company or entity that facilitates the trading of cryptocurrencies. They act as an intermediary between a seller and a buyer. For example, Coinbase, Binance, Gemini.
The total number of tokens or coins that are publicly available in the market to buy or sell.
D
DAO - Decentralized Autonomous Organization
A DAO is a fully autonomous and transparent decentralized organization. It has no central authority and is governed by its members. Smart contracts on the blockchain lay the foundational rules. These smart contracts execute the voted and agreed-upon decisions.
DApp - Decentralized Application
A type of decentralized application that avoids a single point of failure by existing and running on a blockchain or peer-to-peer (P2P) network of computers.
Conduct your own research to investigate, audit, or review facts.
Decentralization in blockchain refers to a system where control is distributed between a peer-to-peer network and does not rely on a central authority, organization, or individual.
DeFi - Decentralized Finance
DeFi is an umbrella term for emerging financial peer-to-peer technology using public blockchains in place of traditional, centralized financial systems.
E
A fungible token standard used for creating and issuing smart contracts solely on the Ethereum blockchain.
An Ethereum non-fungible token (NFT) standard. Each ERC-721 token is unique with differentiating metadata that can be identified and valued independently.
An Ethereum-based token standard that enables fungible, semi-fungible, and non-fungible tokens to be transferred in a single transaction. They are managed by a single, gas-efficient, smart contract.
ETH is the main token on the Ethereum blockchain. It is a digital currency used to pay for transactions, trade and store NFTs, as a store of value, and more.
A decentralized, peer-to-peer network powered by blockchain technology that enables the creation of smart contracts and DApps.
F
A currency that is typically issued and supported by government regulation as legal tender.
An individual who has a small portfolio of cryptocurrencies or NFT holdings.
One of the most used valuation metrics in NFT collections. It is the lowest ‘Buy Now’ price within an NFT collection. The floor price is set by the owners of NFTs when they list them for sale.
FOMO - Fear of Missing Out
FOMO is a feeling of anxiety resulting from the fear of missing an opportunity. In cryptocurrency, this feeling can lead to making hasty decisions based on emotion and an individual may not perform due diligence before buying, trading, or clicking on links for “too good to be true” opportunities leading to a potential scam.
A fork is a change in the blockchain’s protocol or set of rules that decide whether a transaction is valid or not. A soft fork is a backward-compatible change and can be likened to a software update. Older nodes (computers connected to the blockchain) continue to recognize new transactions as being valid. A hard fork is not backward compatible with earlier blocks and splits the blockchain into two. Nodes will need to update to the new valid chain to be able to confirm transactions.
G
Gains are value appreciation in an asset. Gains are realized when an asset is sold at a higher price than it was originally acquired for, and profit is made on the sale.
Gas is the fee required when conducting a transaction, executing smart contracts, or launching DApps on the Ethereum network. This fee will vary depending on the complexity and computational effort required as well as the network demand at that given time. Gas is paid in ETH and denoted in gwei (0.000000001 ETH).
The current network market price for Ethereum transactions. Depends on network usage and demand.
The first ever recorded block in a blockchain. It forms the foundation of the blockchain and is unique as it is the only block that does not reference the previous block and is generally hardcoded into the software.
A greeting commonly used in cryptocurrency and NFT communities. It extends beyond only meaning good morning and is used at any time of the day to say hello, promote positivity, and build a sense of global community.
H
Unauthorized access to data in a computer or computer system. Crypto hacking is often accomplished through phishing schemes where malware (malicious spyware) or viruses are downloaded unsuspectingly by a user and reveals their private wallet keys.
A physical device that is widely considered to be the most secure option to store a user’s private keys offline.
HFSP - Have Fun Staying Poor
A term used in reply to non-cryptocurrency believers or toward those who don’t believe in a particular asset.
HODL - Hold on for Dear Life
An acronym that is a misspelling of the word “hold”. HODL is a popular term often used as a buy-and-hold investment strategy when coping with price fluctuations and market volatility.
A term used when an individual, referred to as a “bag holder”, continues to hold onto assets regardless of their declining performance until they are worthless.
I
ICO - Initial Coin Offering
A type of crowdfunding used to raise early-stage capital for a crypto-based project by selling tokens.
Something that cannot be modified after creation and is unchanging over time. This is a core feature of blockchain technology with data that cannot be falsified, replaced or manipulated.
INO - Initial NFT Offering
A type of crowdfunding used to raise early-stage capital for a crypto-based project by selling a set of non-fungible tokens. This differs from ICO by the fact that NFTs are unique and are not interchangeable with other tokens of the same kind.
Insider trading in crypto happens when traders use private information to sell or buy tokens. An example of this would be purchasing crypto coins before exchange listing announcements, in turn profiting from the surge in price following the announcement.
In blockchains, interoperability refers to the capacity to freely exchange and leverage data and move types of digital assets across different blockchain networks without restrictions.
J
A programming language used mostly for web development, web applications, and game development that is dynamic and lightweight. CyptoJS is an expanding collection of standard and secure cryptographic algorithms implemented in JavaScript.
JOMO - Joy of Missing Out
A descriptive term for taking a break to enjoy personal time without experiencing the anxious feeling of missing out.
K
KYC is a mandatory regulation for major cryptocurrency exchanges. KYC is used to perform identity and background checks before the use of the platform is granted. It is also used to highlight suspicious behavior and curb illegal activities.
L
A slang term used for accomplishing financial success from cryptocurrency trading. It refers to the excitement of getting rich enough to afford to purchase a Lamborghini.
It began as a viral Twitter meme that was used by individuals who support Bitcoin to push the price to new all-time highs. It has since been adopted by the wider crypto community to represent a bullish outlook on cryptocurrency.
The framework running beneath the blockchain that allows the various networks to function. It is the foundation of the blockchain ecosystem and provides the infrastructure to create chains and allow cross-chain interoperability.
Often referred to as the implementation layer or the base layer, it is a collection of solutions that improve layer 0. Scalability is a limitation on Layer 1 blockchains. Examples of Layer 1 blockchains are Bitcoin, Ethereum, Solana, and Cardano.
Layer 2 works with third-party integration and inherits the security of the underlying blockchain it is built on. These protocols provide a supplementary framework designed to overcome scalability difficulties, cross-chain communication, improved security, and transaction speed.
M
A fully developed and deployed blockchain protocol running on its own network with its own technology.
A decentralized marketplace built on blockchain technology that provides a place for users to trade directly, eliminating the need for a middleman. They are most typically used to trade NFTs. Transactions are executed through smart contracts making them transparent, immutable, and instant. Examples of marketplaces include OpenSea, LooksRare, Gem, and Foundation.
Originating from the Greek word mimeme, which means imitated thing. A meme is a cultural item in the form of an image, video, phrase, etc., that is spread via the internet.
A popular cryptocurrency software wallet that is available on both desktop and mobile devices. It allows users to store assets and interact with DApps.
A metaverse is a digital version of the real world built on blockchain infrastructure creating a virtual universe where users can have interactions and experiences in real-time. These immersive virtual worlds have both social and economic value.
N
The peer-to-peer system of nodes (devices/users) that are working together to validate transactions on the blockchain at any given moment in time.
Blockchain tokens that are unique and are not interchangeable with one another. These cryptographic assets are used to verify ownership and provide a digital certificate of authenticity of either physical or digital assets.
NGMI - Not Going to Make It
NGMI implies that a poor choice regarding an investment has been made. The crypto community will also use this as a way to make fun of others with negative opinions.
A node is a device (computer) that is part of a larger blockchain network. Each node follows rules, shares information, validates and stores transactions, and together creates the blockchain infrastructure.
This is typically used in reference to the private keys of your wallet. In a non-custodial wallet, the user holds the keys and has complete control and responsibility over the assets held in that wallet.
O
Any event or action that does not take place as blockchain transaction. The state of the blockchain is not changed threw off-chain actions.
The act of storing a user’s private keys in a system or device that is not connected to the internet. This is also referred to as cold storage.
A cryptocurrency transaction that exists on the blockchain and has been verified by miners or validators. These transactions have been recorded and are reflected in the public ledger.
A system for managing and implementing changes to a blockchain. Changes are proposed through code updates and each node votes whether to reject or accept the proposed changes. The rules for implementing any changes are encoded into the blockchain protocol. DAOs are an example of on-chain asset governance.
OpenSea is a marketplace where you can discover, buy, sell and view your NFTs. You can see the trading history and analytics for specific NFTs and whole collections. You can also create NFTs on Opensea and list them for sale.
P
A popular term in crypto culture that refers to someone who sells too soon and sometimes at a loss, as the price was falling. It is suggesting that the person is weak and unable to handle the volatility of the crypto market.
Permissionless blockchains, also known as public blockchains, are open to the public and allow anyone to take part and access information. It is a decentralized ledger without an entity regulating who can use it, and how it can be used. Examples of permissionless blockchains include Bitcoin, Ethereum, and Cardano.
PFP is short for profile picture. It is a type of NFT that is displayed as your avatar on platforms such as Twitter, Instagram, and Discord. They are often used to show support for a project, an image that the user relates to, or as a flex. PFPs can also be utility driven; some allow IP rights over the image.
A type of social engineering where a scammer will fraudulently attempt to acquire sensitive information through a website or email that appears to come from a reputable source.
POAP - Proof of Attendance Protocol
A POAP is a digital badge collected as proof of attendance or participation in a virtual or physical event. They are ERC-721 tokens that are minted by the POAP smart contract on the Gnosis Chain (previously xDai), which is an Ethereum-based sidechain. The POAP token may potentially hold future utility for collectors.
Q
A quick response (QR) code is a type of barcode that can be read by a digital device. It stores information encoded into a series of pixels in a black-and-white square-shaped grid.
R
A recovery phrase can also be referred to as a secret recovery phrase or seed phrase. It is the human-readable form of your wallet’s private key. It is typically a series of twelve words but may consist of up to twenty-four. This phrase provides access to your wallet and should be kept secure and always stored offline. Never share this phrase with anyone! It is your master key and anyone who has your recovery phrase can access and take control of your wallet. If you lose your recovery phrase, you will also lose access to your wallet.
An internet slang term for wrecked. In the world of blockchain and cryptocurrency, it’s used to describe a huge loss from a recent price crash.
A summary of the vision and direction of a project or business. A roadmap outlines the short and long-term goals and how this plan will be implemented.
ROI - Return on Investment
ROI is a ratio or percentage used to reflect the increase or decrease in value of an investment or trade.
In cryptocurrency, a rug pull is a malicious maneuver from the development team or founders by removing liquidity and taking the funds, suddenly abandoning the project. This results in a rapid decline of the value with the price going to, or near zero.
S
Scalability determines the network’s capacity, the number of transactions the network can process, and the speed the transactions can be processed. The primary objective of scalability is to increase the volume and speed of transactions without sacrificing decentralization or security as the network grows.
Individuals who deceive their victims through a malicious scheme to gain access to information to steal assets. It’s unlikely you will be able to recover any assets lost to a cryptocurrency scam. Cryptocurrency scams can take many forms. It is important to protect your wallet and take your time, if it seems too good to be true it most probably is, and DYOR (Do Your Own Research).
A shill is a person who promotes something. In cryptocurrency, shilling is the heavy promotion of a coin or token to create excitement and raise the price often without the individual disclaiming their personal stake.
A separate blockchain that is linked to the mainchain via a two-way peg. Sidechains are used to improve scalability or add functionality. Sidechains have their own consensus protocols and rely on their own security.
A smart contract is a small program that establishes the terms of an agreement. This code runs on the blockchain when a transactions calls it and predetermined conditions are met allowing decentralized rules and actions without the need for third parties.
T
An alternative blockchain used by developers to test network upgrades, tools, products, and smart contracts before releasing on the mainnet.
A longer-term investment strategy.
A token is a digital asset that blockchain-based projects or organizations develop on top of an existing blockchain network. They can be designed with utility in mind, to represent physical or digital assets, to interact with DApps, or to be traded.
Any event or action recorded immutably on a blockchain. Transactions are user interactions that change the state of the blockchain. Token transfers from one address to another are a basic example of a transaction. All transactions are verified by nodes and recorded on the blockchain.
The cost of performing transactions on blockchain networks. They incentivize users (miners) to validate transactions and reduce the number of spam attacks by making them expensive to carry out.
U
User interface (UI) design is the process designers use to build interfaces in software, focusing on looks or style. Designers aim to create interfaces which users find easy to use and pleasurable. UI design refers to graphical user interfaces and other forms—e.g., voice-controlled interfaces.
A token with a use case that allows holders to perform an action in a specific ecosystem. This may be used in a DApp, game or to access products or services.
User experience (UX) design is the process design teams use to create products that provide meaningful and relevant experiences to users. UX design involves the design of the entire process of acquiring and integrating the product, including aspects of branding, design, usability and function.
V
An individual (node) participating on a PoS blockchain who is responsible for processing and validating transaction blocks for rewards.
Vaporware is a term used to describe a project that has been publicly announced and is never developed and brought into reality. It is also used at times to describe a project that has no clear use case.
Financing by investors to fund small and early-stage businesses that show high growth potential in exchange for an equity stake.
The speed and range of price movement. The more volatile an asset is, the more significant the price movement will be which provides greater risk. It has the potential to offer higher returns, but also higher losses over shorter periods of time than less volatile assets.
VR technology is used to create an immersive simulated environment that can be explored and interacted with in a way that can either mimic or transcend reality.
W
WAGMI - We Are Gonna Make It
WAGMI, sometimes shortened to GMI, is a positive exclamation in cryptocurrency culture to express camaraderie and support to their fellow community or traders. It is used with an optimistic view of performance and can also be used to remind doubters not to lose hope.
A crypto wallet allows you to store, buy and sell your cryptocurrency assets. They come in multiple forms including a hardware wallet like Ledger, or a software wallet like Metamask. Wallets do not physically hold your assets as they exist on the blockchain, rather they hold your private keys and provide the interface that allows you to access your cryptocurrency and tokens.
The first version of the internet called Web 1.0 was a one-way system where data and information could only be added to a page and not the other way around. It is commonly referred to as the read-only web. Only a few people knew how to operate and use the internet during the time of Web1 and computer experts were often needed to operate and implement its use. The amount of user-generated content or interaction was minimal to non-existent.
Web 2.0 is the internet we are currently using, also known as the read-write web. It is a two-way system where social interactions link users to each other. As the internet became more affordable and adoption rose, social platforms such as Twitter and Instagram became a pivotal sector of the internet encouraging more connections and interactions between individuals online.
Web 3.0 is the newest type of internet iteration and is known as the read-write-own web. Web3 utilizes blockchain technology allowing trustless, permissionless, and decentralized platforms. Web2 has relied heavily on the collection and sharing of data as well as algorithms to target what corporations want you to see. This has been widely criticized as an invasion of privacy and trust. Web3 and decentralized networks eliminate the involvement of third parties and open many opportunities and technological advancements for individuals and corporations on a global scale.
Y
YOLO - You Only Live Once
In crypto culture, YOLO is used when an individual goes all in on a single cryptocurrency, or they are investing more than they can afford to lose with the hope that it will succeed.
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