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Blockchain Dictionary

A
AMM
An Automated Market Maker (AMM) is a decentralized asset trading pool that enables market participants to buy or sell cryptocurrencies. AMMs are non-custodial and permissionless in nature
APR
annual percentage rate
APY
annual percentage yield
Arbitrage
the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset
Audit
commonly executed by Professionals with High Reputation on the field to verify the concept and search for weaknesses and exploits
B
Bear Market
A period marked by prevailing negative investor sentiment about an asset or class of assets. A bear market can last weeks, months, or years
Blockchain
is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographic hash of the previous block,a timestamp, and transaction data (generally represented as a Merkle tree)
Bull Market
A period marked by prevailing positive investor sentiment about an asset or class of assets. A bull market can last weeks, months, or years, and can sometimes be marked by what economists call a Bubble
C
CeFi
Centralized Finance. In terms of cryptocurrency, CeFi is represented by centralized cryptocurrency exchanges, businesses or organizations with a physical address, and usually with some sort of corporate structure
CEx
A CEX is a Centralized Exchange, with a physical address and a corporate structure. Like other CeFi businesses, a CEX must follow all applicable laws, rules, money transmitter licenses, and regulations in each country, state, or region in which they operate
Coins
a represantation of a unit on the Blockchain
Collateralization
The borrowing of a deposit asset or assets to seek further business activities such as Yield Farming. Collateralization can amplify gains or losses, and is thus, considered more risky than not borrowing funds
Compound Interest
the growing amount of Interest over Time, reinvesting the gains for exponential interest
D
dApps
decentralized Applikations running on the Blockchain using Smart Contracts
DAO
Distributed Autonomous Organization. The first DAO was started in 2016. Read more on Wikipedia
DeFi
decentralized Protocols that are providing Smart Contracts and Services like a DEx as well as the Industry growing around it is called DeFi
Delegation
The concept of permitting a person, company, or organization the ability to borrow utilizing another owner's deposited collateral
Derivative
Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings
DEx
Decentralized EXchange. A cryptocurrency exchange that is decentralized, without a physical location. It is a Peer-2-Peer network operating on Smart Contracts where users buy and sell directly to one another, with only the DEX as a middleman
E
ENS
Ethereum Name Service - works similar to DNS - Dynamic Name System but runs on Blockchain. Its decentralized naming for wallets, websites & more! No more copying and pasting long addresses. Use your ENS name to store all of your addresses and receive payments in any cryptocurrency
Epoch
An epoch, for the purposes of chronology and periodization, is an instant in time chosen as the origin of a particular calendar era. The "epoch" serves as a reference point from which time is measured
ERC-20
is the Ethereum token standard which is used for Ethereum smart contracts. Developed in 2015, ERC-20 defines a common list of rules that an Ethereum token has to implement
Ethereum
is the second-largest cryptocurrency platform by market capitalization, behind Bitcoin. It is a decentralized open source blockchain featuring smart contract functionality
EVM
Ethereum provides a decentralized replicated virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes
F
Fiat Currency
Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it
Fork
since Blockchain Technology is based on Open Source Code anybody can Fork an existing Project and change it to their own needs, usualy results in new Chain
FOMO
Fear Of Missing Out. Which generaly leads to poor decision making and bad Investment Choices, commonly used by Influencers to dump on you
G
Governance
the authority to decide about the Projects goals and targets, can be user based or from another authority like developer or VCs
Gas Fee
The price of gas that a user offers should generally reflect how fast they want a transaction mined and miners allways try to include highest Gas Fees in their Blocks
Gwei
Gwei is a denomination of the cryptocurrency Ether (ETH), which is used on the Ethereum network, basicly 0.000000001 ETH is 1 Gwei
H
Hashrate
the amount of computer Power used to mine new blocks to verify transactions
I
ICO
Initial Coin Offering - is like selling stocks from a company. You get a part of the coins and add liquidity to the Project
Impermanent Loss
In essence, impermanent loss is a temporary loss of funds occurring when providing liquidity, watch this Video to find out more: Finematics
IPFS
InterPlanetary File System - is a protocol and peer-to-peer network for storing and sharing data in a distributed file system. IPFS uses content-addressing to uniquely identify each file in a global namespace connecting all computing devices
J
Joint Venture
a collaboration of two or more entities
K
KYC
Know Your Customer - under some jurisdrictions you may be required to verify your ID to authorities
L
Liquidity
A measure of how much available circulating supply there is of an asset or currency, and the activity of that asset or currency in an exchange, economy, or network. A currency with low supply and/or circulation is said to be illiquid
Liquidity Mining
Liquidity Pool - a collection of assets bundled in a pool/smart contract
Liquidity Pool
LM - a collection of assets bundled in a pool/smart contract
Liquidity Provider
In the realm of cryptocurrency and DeFi, this refers to investors who deposit an asset to provide liquidity on an exchange and/or network(s) to gain an ROI on their investment
Liquidity Tokeb
Implemented via Smart Contracts, a liquidity token is given to a depositor in exchange for that investor's deposit(s) to be used for other purposes such as yield farming
M
MakerDAO CDP
The MakerDAO Collateralized Debt Position (CDP) is a smart contract which runs on the Ethereum blockchain. It is a core component of the Sai Stablecoin System whose purpose is to create Sai in exchange for collateral which it then holds in escrow until the borrowed Sai is returned
MetaMask
MetaMask is a popular mobile or desktop software cryptocurrency wallet that can hold, transmit or receive Ethereum and ERC-20 compatible coins or tokens
Mining
solving cryptographic problems to verify transactions in blocks, this costs lots of power but makes the transactions tamper proof
Mining Pool
a Collection of Individuals or Companys that are combining Hashrate of there Ressources to do Mining
Multisig Wallet
Multisig stands for multi-signature, which is a specific type of digital signature that makes it possible for two or more users to sign documents as a group
N
Node
a computer or server that is part of a blockchain network
O
Oracle
Oracles work by connecting the real world with blockchain and providing data to the smart contracts, can be used for Price finding on DEX
P
Private Key
Part of a Wallet and authorises the holder to change and send Cryptocurrencies. The Private Key holds a strong encrypted proof that can not be tampered
Pool
A smart contract containing shared amounts of assets provided by depositors. Pools are either used in Automated Market Makers (AMMs)for optimized trading purposes, lending aggregation, or in shared yield farming strategies, among other things
Protocol
In High Technology, a protocol is a set of developed rules or specifications. These rules detail definitions, standards, limitations, and potential stipulations of a protocol. Examples of technology protocols include TCP/IP and ERC-20
Q
QoS
Quality of Service - can be used to prefer some connections of others, example in Crypto: Gas usage
R
Retail Investor
A non-professional individual investor who buys, sells, lends and/or yield farms cryptocurrencies, crypto derivatives, and crypto offerings. Retail investors pay full retail price for their transactions, instead of benefitting volume discounts and other preferential treatment reserved for whales and CIIs
ROI
Return On Investment. The gains or losses on an investment. For example, doubling your investment in an asset would be a 100% gain, or 100% ROI. Losing all of your investment would be a 100% loss, or -100% ROI
S
Satoshi Nakamoto
Satoshi Nakamoto is a person famous as a founder of bitcoin and creator of unique bitcoin client. In his P2P Foundation profile he told that he was from Japan. Nothing else is known about him. He was working out his project since 2007 and in 2010 he finished his participation in bitcoin development. The Bitcoin founder is still unknown
Slippage
In a trade, there is almost always a spread between the price that a buyer will pay and the price that a seller will sell an asset at. When an order is made, this difference in price between buyer and seller expectations results in price slippage. This slippage in price is usually 1-3%, but can be even more for coins with limited liquidity
Smart Contract
A smart contract is a computer program or a transaction protocol which is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement. A old example is a vending machine. A digital contract that is programmed in a language that is considered Turing complete, meaning that with enough processing power and time, a properly programmed Smart Contract should be able to use its code base and logical algorithms to perform almost any digital task or process. Ethereum's programming languages, such as Solidity and Vyper, are Turing complete
Spread
When an order is made on an exchange or market, the disagreement of the difference in price between potential buy and sell offers of an asset is called the spread. A wide spread in price can lead to higher slippage
Stablecoin
In cryptocurrency, it is a digital cryptocurrency equivalent to one 1$ Dollar USD. In theory, the price of the stablecoin is pegged to the US Dollar, but in practice, there is some variance to nearly all stablecoins with the exception of coins like DAI, which are designed with no volatility
Stake
The act of depositing a cryptocurrency coin or token into a yield farming project and/or protocol, whether the access to the project is either through CeFi or DeFi methods. Stakers hope to gain interest on their deposits into these yield farming projects and offerings. CeFi is considered safer for a number of reasons - including strict rules, permitting, and regulations. However, DeFi tends to give much high rewards, while being accompanied with much higher risks, the earlier the investor participates in the project's lifecycle, testing, and development
Staking
The act of staking a cryptocurrency deposit to yield farm additional cryptocurrency via CeFi or DeFi staking offerings, programs, or projects
T
Testnet
A testing network for a new coin, project, or product, or for potential improvements to an existing product or offering. Testnets are used to test the viability and vulnerability of new ideas, concepts, code, and processes prior to moving on to a production network or networks of some sort
Token
A type of coin, except with much greater functionality. Tokens can also be used as a method of payment like coins, but unlike coins they can excel at other use cases such as the democratic governance of a protocol or system, or as a means to use underlying coins to make liquidity tokens from these coin deposits
TVL
Total Value Locked - the amount of value locked in a pool/contract
U
Unpermissioned ledgers
such as Bitcoin have no single owner — indeed, they cannot be owned. The purpose of an unpermissioned ledger is to allow anyone to contribute data to the ledger and for everyone in possession of the ledger to have identical copies
V
Validation
Verification of the Transactions in a block/chain
VC
Venture Capital
Volatility
In investing, a measure of how rapid changes are seen to the price of an asset or market. Newer early stage technology companies and projects in the explosive growth stage tend to see very high volatility in the price of their assets in their early days
W
Wallet
Software or Hardware that contains the Private Keys and has a own Adress that can be used to send and receive funds
X
Validation
Verification of the Transactions in a block/chain
Y
Yield
The amount you get for staking your coins in a CEX/DEX/Pool
Yield Farming
The manual or automatic lending and/or arbitrage of digital assets in order to provide an ROI for lending out or depositing digital assets in CeFi or DeFi. Yield Farming can provide an additional income stream over and above any potential increase in the value of an underlying asset. For a number of reasons - including the ability to make rapid changes, much lower overhead costs, and no regulatory costs - DeFi tends to provide much higher yields when compared to CeFi options
Z
Zapper
Zapper.fi is a DeFi tool that allows users to simplify their entry and exit into DeFi products and offerings by batching or "zapping" transactions in a batch. It is designed to simplify and speed up this process. In some cases, this method of transaction can reduce gas fees for investors.
Zeus Capital
Company shooting against Chainlink and calling it a scam, running a big paid Campaign against it