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0x

The 0x protocol is an open standard for building decentralized exchanges (DEXs) on the Ethereum blockchain. Launched in 2018, 0x enables developers to incorporate peer-to-peer digital asset exchange into platforms and apps. 0x’s native token is ZRX, which allows holders participation rights in 0x platform governance.

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1inch Liquidity Protocol

The 1inch Liquidity Protocol is an automated market maker (AMM) that is designed to increase liquidity on the protocol and to make use of virtual balances in order to decrease impermanent loss. Users can benefit from providing tokens as liquidity on the 1inch platform through a process that’s called “liquidity mining” — whereby traders provide assets like ETH to a specific pool, lock it in, and earn 1INCH, the native token of the 1inch platform, as interest. This model is similar to native DEX tokens like Uniswap’s UNI, and incentivizes community-based liquidity provision.

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3D Model Rendering

3D model rendering is the process of creating a virtual image or animation by using varying digital texture, color, and lighting software. The modeling process uses data points to represent objects in three-dimensional space, which is then rendered from 3D models into 2D images through a computationally heavy process.

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401k Plan

In the US, a 401k is an employer-sponsored, government-supported pension savings plan for employees. 401k plans allow companies to sponsor eligible employees in saving and investing towards retirement by contributing a portion of their income to the plan on a tax-deferred basis. These contributions are often incentivized by employer matching. 401k plans are typically defined by contribution limits, tax advantages, and early withdrawal penalties.

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51% Attack

A 51% attack is a hypothetical scenario in which more than 50% of a blockchain network's nodes fall under 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 blockchain open to manipulation. Attackers with greater than 50% control of a network would be able to stop, reverse, and duplicate new transactions, a catastrophic condition for any blockchain. Notably, a 51% attack becomes more difficult and expensive as a network grows more sizable, distributed, and valuable.

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Aave

Aave is a decentralized lending and borrowing platform on Ethereum. Aave users can take out loans by providing collateral in the form of crypto assets. Lenders who provide collateral to Aave receive aTokens in return, which automatically pay interest to the holder with funds earned from platform trading fees. Aave has pioneered the technology of ‘flash loans,’ which allow for the uncollateralized lending of funds, so long as the principal is repaid within the same Ethereum transaction block.

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AAVE Token

The AAVE token is an Ethereum-based ERC-20 asset used as the governance token of the Aave blockchain protocol. AAVE token holders have the ability to propose changes and vote to approve or deny new proposals to the Aave protocol. With significant enough distribution, AAVE tokens are intended to eventually accommodate the autonomous and decentralized governance of the Aave platform.

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Acala USD Stablecoin (aUSD)

The Acala USD stablecoin (aUSD) is a stablecoin that is pegged to the U.S. dollar on a 1:1 ratio that operates on the Acala Network blockchain. aUSD facilitates the Acala Network's operation and is essential to the Acala decentralized finance (DeFi) platform. Users can borrow aUSD after they deposit cryptocurrency assets such as bitcoin (BTC), ether (ETH), or polkadot (DOT) through a Collateralized Debt Position (CDP) from the Honzon stablecoin protocol.

 

Account Abstraction Layer (AAL)

The Account Abstraction Layer (AAL) is the technical infrastructure that makes smart contract development possible on the Qtum blockchain. The foundational layer of Qtum follows the UTXO model used on blockchains such as Bitcoin. The AAL on Qtum allows the accounts model used on Ethereum to be “abstracted” or transferred in order to work on top of the UTXO model. Qtum’s AAL is the computing go-between that allows the UTXO and accounts models to interact.

 

Account-Checker Tool

An account-checker is a script or program that takes a list of usernames and passwords — known as a combolist — and tests them against a set of target websites. Account-checker tools substantially increase the speed and efficiency with which an attacker can test a large volume of credentials on a broad range of websites and service providers. These tools are generally used by malicious actors looking to capitalize and commit fraud or identity theft against the account holders from whom they have stolen access.

 

Account Model

The account model is a blockchain architecture that features direct information and value transfer. Smart contract platforms such as Ethereum use the account model as opposed to the UTXO model used by the Bitcoin network, which limits the capabilities of smart contracts. One potential downside of the account model architecture is difficulty in scaling transactions-per-second.

 

Accredited Investor

An accredited investor is an investor who meets specific criteria pertaining to income, net worth, and qualifications. While such requirements can vary from country to country, generally accredited investors can include high-net-worth individuals (HNWIs), financial institutions, banks, and large corporations. Accredited investors are often able to access complex investments that other investors might not have access to — including venture capital firms, hedge funds, and angel investment enterprises. Accredited investors can also benefit from high returns and increased diversification, although the types of investments that are limited to accredited investors can also be subject to higher risk, high minimum investment amounts, low liquidity, and higher fees.

 

Acquirer Node

On the Crypto.com blockchain network, Acquirer Nodes facilitate the settlement of transactions between merchant and customer. There are two main types of Acquirer Nodes: Customer and Merchant Acquirer Nodes. The two node types communicate to verify merchant verification, perform settlement for users, and provide an escrow service that enables Crypto.com's wallet and debit card products.

 

Adaptive Information Dispersal Algorithm (Harmony)

Harmony’s Adaptive Information Dispersal Algorithm is used for segmenting shards of data on Harmony’s blockchain to allow for the faster propagation of blocks together with RaptorQ erasure encoding and other technology. The methodology is a critical component of Harmony’s adaptive state sharding solution.

 

Adaptive State Sharding (Elrond Network)

Adaptive State Sharding technology allows the Elrond Network to make use of parallel processing by combining three standardized sharding types (state, network, and transaction sharding) into one balanced high-performance system. The result is a secure blockchain with blazing fast scalability and transaction times. This enables shard merging and shard splitting to allow the network to operate more efficiently, thus improving overall network performance.

 

Address (Cryptocurrency Address)

A cryptocurrency address is a string of alphanumeric characters that represents a wallet, exchange, or similar blockchain-specific address. All wallet and exchange addresses are unique and denote the location of the sender and receiver on the blockchain network. Blockchain addresses can be evaluated publicly on a blockchain explorer (a web service that records all transactions that have ever taken place on the network), but are also pseudonymous, because they are not necessarily linked to their user’s real-world identity.

 

Admin Key

An admin key holds special access to make changes to a project's protocol or smart contract. It is typically held by a project's founders or core team. Proponents of decentralization argue that holding admin keys goes against decentralized governance practices and poses security risks, while many projects have stated intention to eliminate them from practice.

 

Aeternity Blockchain

The Aeternity blockchain is known for its platform-specific Sofia smart contracts, Fate Virtual Machine (VM) framework, state channel scaling technology, as well as its own decentralized oracle and governance structure. Aeternity is designed for decentralized finance (DeFi), document, contract, invoice, and receipt management, payments, loans, blockchain-based identity, Internet of Things (IoT) blockchain identities and hardware, gaming, fungible and non-fungible tokens (NFTs), and other uses. Aeternity was conceptualized in 2016, raised funding through a token offering in 2017, and launched its mainnet in 2018.

 

Airdrop

An airdrop is a token distribution method in which assets are directly transmitted to user wallets for free. Airdrop recipients do not pay for tokens received. Typically used as a marketing tactic to create awareness around a project, airdrops can also result after a chain fork, token upgrade, or as part of a fundraising mechanism.

 

Airnode (API3)

An airnode is an oracle node designed to be easily deployable by application programming interface (API) providers that want to participate in the API3 blockchain protocol and bring their data feeds on-chain. Airnode enables API providers to run their own node with little-to-no maintenance, allowing them to interface their API data feeds with smart contract platforms. When an API provider uses an airnode, they become a first-party oracle that directly provides data to the blockchain without the involvement of intermediary nodes.

 

alALPHA

When an Alpha Lending Protocol user deposits an asset (like BNB), they in turn mint an alALPHA token (like alBNB) which is an interest-bearing asset that represents their initial deposit. The initial deposit is transferred into a smart contract that aggregates the total liquidity of each asset into a pooled fund that is available for borrowing. Then the interest borrowers pay is divided proportionally amongst liquidity providers.

 

Alameda Research

Founded in 2017, Alameda Research is a quantitative trading firm that was founded by Sam Bankman-Fried. Alameda Research is one of the top liquidity providers in the cryptocurrency space.

 

Algorand Smart Contract (ASC1)

Algorand Smart Contracts (ASC1s) are smart contracts that operate on Layer 1 of the Algorand protocol. ASC1s generally represent relatively small smart contracts, with larger smart contracts being reserved for Layer 2. ASC1s are written in an Assembly-like programming language called Transaction Execution Approval Language (TEAL), which is then interpreted by Algorand nodes.

 

Algorand Standard Asset (ASA)

Algorand Standard Assets (ASAs) are on-chain assets native to the Algorand blockchain protocol. As on-chain assets, ASAs enjoy the same speed and security as Algorand’s consensus protocol itself. ASAs can be fungible or non-fungible, representing items as varied as stablecoins, in-game points, or a deed to a house. ASAs must essentially adhere to several parameters determined by Algorand, though they also allow developers some customizability.

 

Algorithmic Stablecoin

Algorithmic stablecoins do not use fiat or cryptocurrency as collateral. Instead, price stability results from the use of algorithms and smart contracts that manage the supply of tokens in circulation. In this model, the stablecoin’s algorithm automatically expands or contracts the number of tokens in circulation in order to meet a specific price target.

 

Algorithmic Trading

Algorithmic trading (also known as algo trading) is a modern method of market trading that utilizes computer software coded to follow a particularly defined set of mathematical instructions — an algorithm — to place one or many trades simultaneously. The formulas compute against price, timing, quantity, and other mathematical models to follow specific strategies. Algorithmic trading models execute thousands of trades to generate profits at a speed, frequency, and consistency impossible for a human trader. Algorithmic trading technology gives markets more liquidity and higher profitability, while also potentially eliminating human emotion and error that can negatively impact trading decisions.

 

Allocated Gold

According to the London Good Delivery set of regulatory and compliance standards, gold can be bought in two distinct forms: allocated or unallocated. When a customer purchases allocated gold, they have ownership over the gold and can choose to store it on their own, or in a vault at a London Bullion Market Association (LBMA) facility. Unallocated gold does not feature direct ownership over specific gold bars, but instead holds entitlement to a certain amount of gold.

 

Allocation

An allocation is an allotment of tokens or equity that is purchased, earned, or reserved for a specific investor, team, organization, or corresponding entity. Blockchain startups must determine their initial token allocation to facilitate the long-term viability of their business model, with various allocations for marketing, software development, and operational costs. Many blockchain projects also have their own treasuries and foundations which typically possess a specific token allocation as well. It is also common for blockchain startups to give early team members a specific token allocation, with the stipulation that they cannot sell their tokens for several years.

 

All-Time High (ATH)

All-time high (ATH) is a term that denotes the highest price of an asset ever recorded on an exchange or market. ATH is the opposite of the all-time low (ATL), which conversely represents the lowest price at which an asset has ever traded. ATHs are generally set by assets during bull market uptrends in the blockchain and cryptocurrency market, when assets may experience periods of extreme growth in value.

 

All-Time Low (ATL)

All-time low (ATL) is a term that denotes the lowest price of an asset ever recorded on an exchange or market. ATL is the opposite of the all-time high (ATH), which conversely represents the highest price at which an asset has ever traded. ATLs are generally set by assets during harsh bear market downturns in the blockchain and cryptocurrency market, when assets have historically dropped more than 95% from previous prices in a bull market.

 

Alpha Coefficient

In a traditional financial context, alpha is a measure of the active return on an investment compared to a market index. For example, an alpha of 10% signifies that an investment’s return over a specific time frame performed 10% better than the average market return during the same period, while a negative alpha denotes that the investment underperformed the market. In contrast, beta measures the volatility of an investment and is an indication of its relative risk. Alpha and beta are two key coefficients that make up the capital pricing model that is utilized in modern portfolio theory.

 

Alpha Homora

Alpha Homora is a service-based protocol built by Alpha Finance Labs designed to allow users to earn interest on their crypto deposits through standardized yield farming and leveraged derivative yield farming. Initially, Alpha Homora V1 is built for Ethereum and Binance Smart Chain (BSC) and allows users to participate as yield farmers, liquidity providers, ether (ETH) and Binance Coin (BNB) lenders, bounty hunters, and liquidators. Alpha Homora V2, which will be built initially for Ethereum, hopes to expand these capabilities by allowing for leveraged yield farming and the simultaneous use of multiple assets.

 

Alpha Lending

Alpha Lending is a decentralized, permissionless pool-based lending and borrowing protocol that makes use of algorithmic autonomous interest rates. Designed to run on Binance Smart Chain and Ethereum, Alpha Lending is designed to facilitate the use of cross-chain assets and to help maximize the return of investment for lenders and borrowers. The platform makes use of interest-bearing alTokens that represent the user’s share of their deposit (such as alBNB if BNB is deposited). Lending Pool Contracts on Alpha help facilitate the use of deposits, withdrawals, repayments, liquidations, and assets that are borrowed by users on the platform.

 

Alpha Version (Software Release)

The alpha version is one of many stages in the software release lifecycle needed to ultimately become a finalized production version. The cycle usually begins with the release of the pre-alpha, then the alpha, beta, release candidate (gamma and delta), release to manufacturing (RTM), general availability (GA) and finally the production or live release, in that order. An alpha version, like a beta version, represents an early version of a software implementation or blockchain network that must undergo several further stages of development to become a production version.

 

AlphaX

AlphaX is a decentralized, non-orderbook perpetual swap trading marketplace that brings to decentralized finance (DeFi), a new trading product that was previously unavailable on-chain. AlphaX will also allow Alpha Homora users to hedge leveraged yield farming/liquidity providing positions and make use of a market-neutral leveraged position. AlphaX is specifically designed to minimize downside risk and makes use of three unique features that help set it apart from competitors, including: a funding rate that is baked into the price, the use of tokenized leveraged long and short positions, and minimized slippage through the dynamic k algorithmic model.

 

Altcoin

An altcoin is an “alternative coin,” or any cryptocurrency launched after Bitcoin. It refers to any cryptocurrency that is not BTC. For example, ETH, XRP, and LTC are all altcoins.

 

alUSD (Alchemix)

The synthetic protocol token alUSD is used on the Alchemix decentralized finance (DeFi) lending platform. Alchemix users can deposit DAI in order to mint alUSD — a stablecoin that tokenizes a user’s future yield in Yearn.Finance vaults. In doing so, alUSD is the mechanism by which Alchemix offers automatically repaying stablecoin-backed loans.

 

Amazon S3

Amazon Simple Storage Service (S3) is a proprietary service offered by Amazon Web Services (AWS) that was launched in 2006 with the purpose of giving customers access to object storage via a specialized web interface. Amazon S3 utilizes the same storage architecture as its global e-commerce enterprise, and can be leveraged to store nearly any type of object like internet applications, data archives, backup and recovery, disaster recovery, analytics, hybrid cloud storage, and more.

 

Amazon Web Services (AWS)

Amazon Web Services (AWS) is a subsidiary of American ecommerce giant Amazon. AWS has become well known for providing on-demand cloud computing services to enterprises, individuals, and governments through a pay-as-you-go model. AWS also provides cloud server configuration and hosting, data storage and transfer, content delivery, networking, analytics, application services, and various distributed computing building blocks and tools. AWS offers its clients Amazon Elastic Compute Cloud (EC2) which allows users to make use of a virtual cluster of computers that emulates the attributes of a real computer and complex cloud computing systems all-in-one service.

 

Amazon Web Services (AWS) Lambda

Amazon Web Services (AWS) Lambda is a serverless computing service designed to let you run programs without having to run your own servers or do any code administration. By uploading your code as an image or ZIP file, AWS Lambda will automatically dedicate the amount of computational power necessary to run the code request. You can trigger the code to run automatically over hundreds of AWS and Software-as-a-Service (SaaS) applications, or control its execution directly from an online app. Lambda applications can scale to meet a program’s associated traffic and can be written in numerous programming languages.

 

Amortizing

Amortizing refers to the spreading of an initial or overhead cost across time or between parties. On the Orchid network, transaction costs are kept low by amortizing the fees across transactions and users. Transaction fees are slowly paid off or broken into increments that are then shared across a large network to reduce individual user costs.

 

Amp (AMP)

AMP is the digital collateral token of the Flexa network, a payment system that allows users to spend certain cryptocurrencies with select retailers at their brick and mortar locations. AMP is an ERC-20 token used as collateral to guarantee retail payments while blockchain transactions remain unconfirmed. The AMP token is the replacement for Flexacoin (FXC). Gemini Exchange is the first market to support the AMP token.

 

Anchor Protocol

Anchor Protocol is a savings protocol built to run directly on top of the Terra stablecoin ecommerce payment platform. It allows users to earn yield powered block rewards by lending out Terra deposits to borrowers who allocate liquid-stake Proof-of-Stake (PoS) assets from PoS blockchain protocols as collateral, in the form of bonded assets (bAssets). Anchor Savings employs no minimum deposits, account freezes, or sign-up requirements, and can be used by practically anyone in the world with access to the Internet. The Anchor ecosystem makes use of its main utility token (ANC) and other asset types designed specifically for use within Terra’s decentralized finance (DeFi) ecosystem.

 

Andre Cronje

Andre Cronje is the founder and lead developer of Yearn.Finance. He built most of the original Yearn products, then relinquished personal control of the protocol by launching the YFI governance token in 2020. Cronje remains an active figure and builder in the Yearn community and decentralized finance (DeFi) ecosystem.

 

Angel Investor

An angel investor, also known as a seed investor or private investor, is an individual who looks for new opportunities to fund start-ups with potential for growth. Angel investors typically lend new companies capital, sometimes in exchange for a certain percentage of ownership in the company. Angel investing can also include mentoring, business advice, marketing and advertising strategies, and connection facilitation to further the chances of the startup's success. Within the blockchain space, angel investors often participate in private sales or pre-sales that precede public funding rounds like Initial Coin Offerings (ICOs).

 

Ankr ETH (aETH)

Ankr ETH (aETH) is a synthetic asset that can be staked on the Ankr Network in place of staking ether (ETH). When a user deposits ETH in an Ankr deposit contract they receive aETH in return, thus lowering the barrier to entry for investors who wish to stake ETH without owning the minimum 32 ETH tokens needed to stake on Ethereum 2.0 to receive a yearly APY. When a user deposits ETH and receives aETH in return, their investment remains locked in for as long as the time required by users who stake 32 ETH on the Ethereum 2.0 network.

 

Ankr Governors

Anyone who holds ANKR in a private, supported wallet is considered part of the platform's governance. These users can vote on proposals that influence where the project is heading.

 

Ankr Providers

Ankr providers provide the computing power that supports Ankr ”sidecars" running on an Ethereum 2.0 node, each of which holds up to 32 ETH 2.0 stake. Providers can use their hardware or deploy a node on Ankr. Providers also submit insurance, in ANKR or ETH, thereby helping to protect the network against poor node performance or unexpected fund withdrawals. If ANKR is the insurance, the equivalent of 2 ETH worth of ANKR is necessary to submit insurance. Rewards for an ANKR-funded node are issued in ANKR at the end of the staking period. The purpose of this guaranteed amount is to mitigate potential losses that stakers might incur.

 

Ankr Staking (previously Stkr)

Ankr staking is a system that employs assets such as aETH — Ankr’s version of the Ethereum token, ETH, or ether — to address the current liquidity and accessibility hurdles associated with staking tokens on Ethereum 2.0. Normally, would-be validators must stake a minimum of 32 ETH to earn yearly staking rewards on Ethereum 2.0. In response, Ankr developed a unique model that improves the accessibility and liquidity of staking on Ethereum 2.0 by allowing stakers to stake a smaller fractional amount of ETH via Ankr’s aETH (essentially creating a staking pool).

 

Annual Percentage Rate (APR)

An annual percentage rate (APR) on a loan is the amount of interest a borrower must pay each year. The APR is expressed as an annual percentage of the outstanding loan balance, and represents the annual cost of borrowing.

 

Annual Percentage Yield (APY)

The annual percentage yield (APY) refers to the rate of return earned on a deposit over one year. APY takes into account compounding interest, which is calculated on a periodic basis and added to the balance.

 

Anti-Malware

Anti-malware is a category of software designed to prevent, detect, and remove malware. Malware refers to any type of 'malicious software' that is specifically designed to cause damage to computers and computer systems. Examples of malware include viruses, trojan horses, and ransomware among others.

 

Anti-Money Laundering (AML)

Anti-Money Laundering (AML) is a comprehensive set of processes, regulations, and rules that combat money laundering, terrorism funding, and financial crimes like cyber theft and fraud. AML procedures require financial firms to monitor transactions to ensure that funds are not part of criminal activities, circumventing tax laws, or violating any other regulations. AML is mandatory for users to access financial services in the blockchain industry.

 

Antivirus

Antivirus is a category of software that is designed to prevent, detect, and remove computer viruses. Computer viruses are malicious computer programs that are designed to replicate themselves and cause damage to computers and computer systems.

 

Application Binary Interface (ABI)

An application binary interface (ABI) is a standardized method for engaging with smart contracts in a blockchain ecosystem. ABIs allow smart contracts to engage with external data, as well as with other contracts internal to the blockchain platform. ABIs are similar to application programming interfaces (APIs) in that they enable separate software systems to communicate and interact with each other.

 

Application Blockchain Interface (ABCI)

The Application Blockchain Interface (ABCI) is a specialized application programming interface (API) built by Tendermint, the company that created the Cosmos blockchain. The ABCI is designed to operate as a middle layer that allows blockchain-based replication engines present on several computers and a deterministic state machine (the application) present on a single computer to communicate. In simpler terms, the ABCI allows a blockchain protocol to communicate with an application to enable application development and other related purposes.

 

Application Layer

The application layer is made up of the user interface (UI) that is responsible for customer interaction, often via a mobile or desktop application. The application layer also consists of business logic, which is responsible for exchanging certain algorithmic data so that applications are able to function optimally and make use of smart contracts and other mechanisms. The application layer is considered the client-layer or front-end of the system, with the opposite end of the system known as the bank-end or data access layer (DAL).

 

Application Programming Interface (API)

An application programming interface (API) is a set of protocols and codes that determine how different software platforms communicate and share information. APIs define different types of requests and calls that can be made, the data types that can be used, and how to make these requests. It serves as an intermediary between different software systems. A developer can use an API to incorporate features of an external application into their own software. By allowing different platforms to communicate, APIs enhance interoperability across the web.

 

Approved Address

For a wallet, exchange, or blockchain-based financial services platform, an approved address refers to a list of addresses permissioned for transactions on an account. Addresses not included on the list are prohibited from certain transactions. An approved address is typically implemented for security and compliance reasons.

 

Aragon Client

The Aragon client is a decentralized application (dApp) designed for Aragon One, and is used for creating and managing decentralized autonomous (DAOs) built on the Aragon network. This process works by running Aragon apps inside the client, instantly giving Aragon application developers the capability to perform sandboxing, transaction pathing, application listing, and human readable transactions. Further, it allows notifications to be sent to a system's users. Basically, the Aragon client allows the complex DAO creation process to become simpler for application developers so they can focus on creating and managing new and existing DAOs.

 

Aragon Court

Aragon Court is a mechanism that allows organizations built on Aragon to solve disputes that they are unable to resolve themselves. When an organization escalates a dispute to the court system, they must first deposit collateral and pay fees. Then, jurors are randomly selected to review and rule on the dispute. After the jurors deliver their verdict by a majority vote, the parties involved can choose to appeal the decision, sending it to a larger pool of jurors for review. For the appeal to move forward, both parties in the dispute must deposit additional ANT as collateral.

 

Aragon Network Agreement

Holding ANT enables you to participate in the governance of the Aragon Network DAO and Aragon Court. More specifically, ANT holders can amend the Aragon Network Agreement, an agreement that contains the human-readable rules of the Aragon Network and is used to guide rulings in Aragon Court; alter the Aragon Network DAO and Aragon Court and their parameters; and govern a common funding pool.

 

Aragon Network DAO

The Aragon Network DAO is an organization that provides infrastructure and services to the Aragon Network and its users for the creation of DAOs, dApps, and other blockchain infrastructure. In doing so, the Aragon Network DAO interacts with Aragon’s ANT token, Aragon Court, Aragon Client, aragonOS, Aragon Network Agreements, and other related technologies.

 

aragonOS

The aragonOS (Aragon Operating System) is a smart contract system designed to manage Aragon organizations and entities. AragonOS is used to help define stakeholders of the organization and outline their rights. Through aragonOS, organizations can also install apps, which allow them to integrate functions such as fundraising, voting, and payments. Anyone can develop an app, use it within their organization, and make it available for the Aragon ecosystem.

 

Arbitrage

To arbitrage is to exploit the price difference of an asset or security between two markets for profit. For example, if one bitcoin is selling for $10 on exchange ABC and $12 on exchange XYZ, then an arbitrageur can generate a profit of $2 by purchasing one bitcoin from ABC and selling it at XYZ. Arbitraging can be automated by utilizing sophisticated computer systems and software to monitor prices and conduct high-volume trades that take advantage of even slight differences in prices. Arbitrage is a necessary financial mechanism that keeps prices consistent between different exchanges and wider markets.

 

Arm Virtual Machine (Qtum)

ARM is Qtum’s Virtual Machine (VM), which was developed in Intel's x86 machine language. The x86 Virtual Machine allows developers to write smart contracts in a variety of programming languages including C, C++, Rust, and Python. Qtum previously utilized the Ethereum Virtual Machine (EVM), but created the x86 to expand on its capabilities. ARM is fully compatible with Solidity (the language built for, and used on the Ethereum network), allowing Ethereum developers to seamlessly build applications on the Qtum blockchain.

 

ARPANET

Advanced Research Projects Agency Network (ARPANET) is an early version of the internet. ARPANET was created by the U.S. Department of Defense and used two technical foundations of the modern internet: a packet switching network with distributed control and TCP/IP.

 

Artificial Intelligence (AI)

Artificial intelligence in a trading context refers to the use of computer software, machine learning, and algorithms to set strategy and execute trades. AI trading systems analyze, process, and calculate vast amounts of data in order to execute optimal investment strategies.

 

AR Token (Arweave)

AR is the native token of the Arweave protocol. It allows users to pay for storage and is used to reward miners for storing data.

 

ASIC Miner (ASIC Mining)

An application-specific integrated circuit (ASIC) miner is a specialized type of computerized mining rig that is used to mine bitcoin (BTC) and other types of cryptocurrency. Originally, crypto mining rigs were designed to mine cryptocurrency using a central processing unit (CPU) on a laptop or personal computer, but eventually graphical processing unit (GPU) miners — and subsequently ASIC miners — surpassed the capabilities of this traditional model. ASIC miners are built specifically to complete the mining process much faster and efficiently than traditional computers and are quite expensive to design and manufacture.

 

ASIC-Resistance

ASIC-resistance is a design feature that has been implemented on some Proof-of-Work (PoW) blockchains to prevent them from being dominated by application-specific integrated circuit (ASIC) miners. The purpose is to help the mining on a chain be more equitable for retail miners while maintaining mining decentralization. This is generally done by using a bespoke mining algorithm or periodically changing the algorithm to prevent profitable ASIC miners from being developed. Despite some blockchains being designed to be ASIC-resistant, many have since become dominated by ASIC miners that have overcome the various ASIC-resistant designs and countermeasures.

 

Asset

An asset is anything of monetary value that can be owned or purchased. Within the context of investing, assets can refer to a variety of financial and physical instruments, from stocks to real estate to gold to dollars. A bitcoin is a particular form of crypto or digital asset.

 

ASSETS (The Sandbox)

In The Sandbox game, ASSETS are tokens created by players who build user-generated content. ASSETS utilize the ERC-1155 standard.

 

Assets Under Management (AUM)

Assets under management (AUM) is a measurement used to signify the total market value of all assets being managed by a financial fund, institution, or portfolio manager. However, the exact definition of what AUM constitutes is ambiguous because not all institutions classify different types of assets in the same manner. Assets under management fluctuate in value due to regular market movements and because of money inflows and outflows to and from the fund. Normally, a fund's fee structure is determined by the percentage of the total AUM on a yearly basis.

 

Asymmetric Encryption

Asymmetric encryption is a cryptographic system that uses a public key for encryption and a private key for decryption. The public key can be shared with anyone, while the private key is meant to be kept secret to maintain security. Asymmetric encryption is considered more secure than symmetric encryption, which uses one key for both encryption and decryption. The Bitcoin network uses asymmetric encryption.

 

Asynchronous Byzantine Fault Tolerance (aBFT)

Asynchronous Byzantine Fault Tolerance (aBFT) is a consensus mechanism that improves on typical Byzantine Fault Tolerance (BFT) consensus by solving the Byzantine General’s Fault problem in a unique way. Through aBFT, nodes are able to reach consensus independently by making use of a two-stage block confirmation process using a two-thirds supermajority. The first stage proposes a last irreversible block (LIB), while the second stage finalizes the proposed LIB to make the block irreversible. ABFT consensus is considered leaderless, with no independent leading node responsible for block creation and finalization, resulting in a faster and more secure network. The Fantom and Hedera Hashgraph protocols and other networks employ different variations of aBFT.

 

aToken

An aToken is an ERC-20 token serving that represents an ownership claim on an underlying asset in the Aave protocol. When a user deposits assets into Aave liquidity pools, the platform automatically generates an aToken in return. For example, providing DAI to Aave would automatically mint aDAI. Holders of aTokens continuously earn interest on their deposits, the value of which is represented in the aToken.

 

Atomic Swap

An atomic swap is a peer-to-peer exchange of crypto assets between two parties without the use of a trusted third party, such as a centralized exchange. Atomic swaps utilize smart contracts to exchange crypto assets between different blockchain networks through a process of locking, verifying, and unlocking.

 

Auction

An auction is a type of market that allows buyers and sellers to engage with each other through bidding. Auctions have the benefits of elevated liquidity and price discovery.

 

Audit (Blockchain or Smart Contract)

An audit is a process that involves the thorough analysis of a blockchain's codebase, or a particular application’s smart contracts, in order to identify errors in code, incorrect design, security issues, and other related inefficiencies. It is essential for blockchain protocols and applications to audit their entire codebase to ensure that the blockchain, and its interrelated applications and smart contracts, are not susceptible to attackers or other challenges. A typical audit often involves agreeing on certain audit specifications, executing tests, running symbolic execution tools, extensive code analysis, and the creation of a report to show the results.

 

Augmented Reality (AR)

Augmented Reality (AR) is an interactive experience that enhances objects from the real world through computer-generated perceptual information, via various sensory mechanisms including sound, touch, smell, and sight. AR is typically defined as a system that makes use of three distinct features: the combination of the real and virtual worlds, real-time interaction, and accurate 3D registration of virtual and real objects. Augmented reality is different compared to virtual reality (VR) because instead of replacing the user’s real-world environment with a virtual one, it alters an individual's perception of the world by enhancing or changing how it interacts with the individual.

 

Augur Decentralized Oracle System

The Augur Decentralized Oracle System is Augur’s proprietary oracle system, which was built to help data from the physical world and the blockchain world to communicate. Augur’s oracle system helps the prediction market platform reach a consensus regarding outcomes by aggregating continuous real-time price feed data from the Internet (through sources like CoinMarketCap, CoinGecko, and Binance) to achieve the most accurate live price data on an ongoing basis. Typically, market outcomes rely strongly on market price feed validation. The Augur Decentralized Oracle System works by using a Designated Reporter who stakes REP tokens to report on the outcome of events across different markets.

 

Authentication

Authentication is a procedure that verifies the identity of a user before access is granted. To gain access — to an account, platform, private space — the user provides login credentials like passwords, SMS codes, and fingerprints. Authentication generally comes before authorization, which is a verification of a user’s level of access.

 

Authority Masternode (AM) (VeChain)

Authority Masternodes (AMs) maintain network consensus and the security of the VeChainThor blockchain. AMs are responsible for block propagation on the platform and enable VeChainThor's Proof-of-Authority (PoA) consensus methodology. In order to host an AM, the user must hold 25 million VeChain tokens (VET) and go through a rigorous authentication process. AMs are the most powerful nodes in VeChain's nodal hierarchy, and are very limited in number.

 

Authorization

Authorization is a procedure that verifies a user’s degree of access. It determines a user’s permission and access to content or resources. Authorization generally comes after successful authentication, or verification of identity.

 

Automated Clearing House (ACH)

An automated Clearing House (ACH) is an electronic network that processes financial transactions in the U.S. An ACH payment pulls funds directly from a user’s bank account and deposits them into the recipient's account. A common type of ACH transaction is a direct deposit payment from an employer.

 

Automated Market Maker (AMM)

An automated market maker (AMM) is a fully automated decentralized exchange where trades are made against a pool of tokens called a liquidity pool. An algorithm regulates the values and prices of the tokens in the liquidity pool. Since AMMs do not rely on an active market of buyers and sellers, trades can occur at any time. The most popular AMMs are Uniswap, Curve, and Balancer.

 

Autonomous Economic Agent (AEA) (Fetch.ai)

An autonomous economic agent (AEA) is a software entity capable of performing actions without external control or input. Once created and given a directive, AEAs can operate on their own behalf — possessing a type of agency. On the Fetch.ai platform, AEAs contain a unique identifier as part of each agent’s wallet, which allows the AEA to transact with the network’s native FET tokens. Among other forms, AEAs may exist purely as software, as an application programming interface (API), or be paired to hardware in the real world (like a thermometer or other type of sensor).

 

Ava Labs

Ava Labs is the blockchain development company responsible for the creation and design of the Avalanche blockchain protocol and ecosystem. Ava Labs was founded in New York state by Cornell professor and Avalanche CEO, Emin Gün Sirer, and several other founders. Ava Labs is also responsible for the creation of other projects, including Ryval.

 

Avalanche Virtual Machine (AVM)

The Avalanche Virtual Machine (AVM) is the native virtual machine that helps developers establish and deploy new blockchains that run on the Avalanche platform. To help facilitate this process, the system makes a copy of the AVM and deploys it to operate on a new blockchain or subnetwork within the Avalanche ecosystem. The main AVM is also designed to help the system create various smart contracts and decentralized applications (dApps) for decentralized finance (DeFi) use, enterprise use, and other uses.

 

Average Directional Index

The average directional index (ADX) is a technical indicator used to quantify the strength of a trend in a market. The ADX is calculated based on the moving averages of prices and is represented by a number ranging from 1 to 100, with a higher number indicating a stronger trend.

 

Axie Infinity

A blockchain-based gaming metaverse in which players collect and breed digital pets called Axies that can be used to compete in a turn-based card game. Axies can also be bred and sold.

 

Axie Infinity Shards (AXS)

Axie Infinity Shards (AXS) is the governance token of Axie Infinity. It is an ERC-20 token that was sold in public and private sales in 2020. The token can be used to vote on changes to Axie Infinity and can be staked to earn rewards.

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BABE Consensus Mechanism (Polkadot)

The Blind Assignment for Blockchain Extension (BABE) is one of the two central components of the hybrid consensus mechanism that Polkadot utilizes to secure and maintain its network. BABE is a mechanism for producing blocks, while its counterpart, GHOST-based Recursive Ancestor Deriving Prefix Agreement (GRANDPA), is a mechanism for finalizing the state of the blockchain.

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Backdoor

A backdoor refers to any method that can circumnavigate regular authentication and authorization procedures to gain root or high-level access to a system, computer, application, or network. Backdoors are commonly installed through remote file inclusion (RFI), which identifies a weak component in an application or a network. This type of channel allows direct control over an infected device to manipulate data, deploy more malware, or create a zombie network of infected computers for criminal activity.

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Back-End (Computing Architecture)

The back-end of a computer system or network refers to the portion of the system that is not displayed on the user’s screen, or front-end. Back-end developers normally make use of various programming languages like JavaScript, C, C++, and WebAssembly (WASM) along with other tools to create the back-end, or data access layer (DAL), of a computer system. In contrast, the front-end is the portion of the website or system that the user interacts with on the screen, also commonly known as the screen or graphical user interface (GUI).

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Back-End Software Development

Back-end software development is the process of creating computerized systems that are not displayed on the user’s screen, or front-end. Back-end developers use various programming languages — such as JavaScript, C, C++, WebAssembly (WASM), and others — along with other tools to create back-end portions of the computer system, or data access layer (DAL). In contrast, front-end software development is the process of developing the portion of websites that users directly interact with, like the screen or graphical user interface (GUI), which is often called the front-end.

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Backtesting

Backtesting is the simulation of a trading strategy based on historical data. Traders use backtesting to prove that their trading system works based on historical results. In trading and investing, past performance does not guarantee future results, which means a strategy that performs well in backtesting may not perform as well going forward.

 

Bag

Bag is a slang term that refers to particular crypto asset holding — typically referring to a higher-than-average quantity of the asset. While there is no specific universal threshold of exactly how many tokens or coins constitutes a bag, the expression generally distinguishes the different types of tokens or coins that are present in an investor’s portfolio. An investor may also refer to a relatively large holding of a cryptocurrency as a 'heavy bag.'

 

Baiting

Baiting is a form of social engineering that exploits victims with false promises of financial gain. Malicious actors, bots, or online ads 'bait' victims with quick payouts and riches in exchange, while the process to obtain it involves providing personal information or downloading software infected with malware.

 

Bakers

On the Tezos network, Bakers are nodes with the responsibility of producing new blocks, and are incentivized for their work with rewards in XTZ. Bakers are Tezos community members who possess a minimum amount of XTZ, and enough hardware and software expertise to run a baking node within the Tezos Proof-of-Stake network. Through a process of token staked delegation, bakers may also produce blocks and earn rewards on behalf of non-Bakers within the Tezos ecosystem.

 

Baking

Akin to the process of staking in many Proof-of-Stake models, Baking is the process of adding new blocks to the Tezos blockchain. The baking process involves adding, signing, and verifying new blocks, and depositing a specified amount of XTZ as collateral to guarantee honest behavior.

 

Balance Freeze Functionality

On the Ripple network, balance freeze is the function through which Ripple gateways freeze or halt transactions in order to prevent any abuse of the system for illicit activity. Balance freeze functionality is a powerful security feature that can only be applied to currencies issued on the Ripple network, and not on the XRP token itself.

 

Balancer

Balancer is a non-custodial portfolio manager and automated market maker (AMM) built on Ethereum that pools up to eight different tokens for users to trade. These Balancer pools are self-balancing weighted portfolios with specific parameters. The Balancer protocol allows all Ethereum accounts to add tokens to existing public pools or create their own private pools.

 

BAL Token

The BAL token is the governance token for the Balancer protocol. BAL tokens are earned by liquidity providers who supply tokens to Balancer pools. BAL holders can propose and vote on changes to the protocol.

 

Bancor Network Token (BNT)

The Bancor Network Token (BNT) is the default reserve currency that powers the Bancor protocol. The Bancor network is a decentralized exchange platform that uses pools of tokens called liquidity pools to facilitate peer-to-peer trading. Bancor liquidity pools must hold BNT, which acts as the intermediary token for every trade. For example: in order to trade DAI for ETH on Bancor, the protocol first exchanges DAI for BNT, then exchanges BNT for ETH. As liquidity on the Bancor network increases, so does the value of BNT.

 

BandChain

BandChain is the name of the main network that allows the Band Protocol oracle system to operate. The BandChain allows entities to request data from application programming interfaces (APIs) or other traditional web services, facilitating the transfer of real-world data to a blockchain system’s online environment. BandChain is built to be compatible with most blockchain and smart contract development frameworks. BandChain pulls data from external sources, aggregates their data, and packages them into a format that can be used and verified efficiently across a multitude of blockchain types.

 

Bandwidth

Bandwidth is the amount of data capacity available for transactional throughput on a network. It is normally measured by the number of megabytes or gigabytes per second. If a network's bandwidth limit is reached, the flow of data will become inadequate to handle the volume, and connections will slow down.

Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) is an international financial institution based in Basel, Switzerland that is owned by numerous global and central banking stakeholders. Its purpose is to guide international monetary policy and administer financial cooperation, alongside serving as a bank for central banks and other international organizations.

 

Banking as a Service (BaaS)

Banking as a Service (BaaS) is a type of software platform that provides financial services. BaaS provides infrastructure for legacy banking systems to connect and share data with third party financial service providers to create new products. BaaS can be thought of as the ‘middleware’ between legacy financial institutions and fintech start-ups.

 

BarnBridge

BarnBridge is a decentralized finance (DeFi) platform for tokenizing risks. By tokenizing risk exposure, BarnBridge can increase volatility for traders, or decrease it for more conservative investors. BarnBridge seeks to lessen the risk involved with joining the DeFi industry by supplying more predictability, thereby attracting a wider range of participants.

 

Base Currency

A base currency is the currency against which an exchange rate is quoted. It is the first currency referenced in a currency pair. In the BTC/USD currency pair, which references the price of BTC in terms of USD, the base currency would be BTC, and the quoted currency would be USD.

 

Basic Attention Token (BAT)

The Basic Attention Token (BAT) was created to provide a more effective, fair, and transparent mechanism for connecting and rewarding internet users, advertisers, and publishers. In this digital advertising system, users are rewarded with BATs for their attention, publishers receive BATs based on user attention, and advertisers achieve higher ROI and better targeting. BAT was created by the same team behind the Brave Browser and is integrated into the Brave Browser.

 

Basket of Currencies

A basket of currencies (as they relate to blockchain) is typically a pool of tokenized real-world assets such as commodities, bonds, securities, and stablecoins that represent fiat currencies. Additionally, in the blockchain space a basket of currencies usually consists of Bitcoin, Ethereum and other large cap cryptocurrencies. In traditional finance a basket of currencies is simply a collection of multiple stocks or securities that are often from the same or similar asset classes. These baskets can be used for derivatives trading and for the function of financial instruments, and they are often managed by institutional investment funds, hedge funds, mutual funds, and exchange-traded funds (ETFs).

 

Beacon Chain

The Beacon Chain is the first stage of the launch of Ethereum 2.0, an upgrade to the Ethereum network. The Beacon Chain introduces the Proof-of-Stake consensus mechanism to the network and allows ETH holders to stake their ETH and become validators in Ethereum 2.0. The Beacon Chain was designed to be the primary mechanism for coordinating data, users, and assets across the upgraded Ethereum network. It was launched on December 1, 2020.

 

Bear Flag (Technical Formation)

A bear flag is a technical charting pattern shaped like a flag that often signals bearish momentum and a decrease in price. Bear flags mimic the structure of a bull flag, only inverted. With a bear flag, the flagpole is formed during a significant drop in price that traders are often not expecting, while the flag itself is formed during a brief period of consolidation that usually signals a downward continuation in price. Bear flags, like all technical formations, can sometimes be negated and fail to produce the results they may have originally indicated.

 

Bear Market

A bear market occurs when the market experiences price declines, typically when prices fall 20% or more from recent highs. A bear market is the opposite of a bull market.

 

Bear Trap

A bear trap is a form of market manipulation that can be carried out by wealthy investors working together to manipulate the price of an asset. By arranging to sell a large amount of an asset, like a cryptocurrency, at roughly the same time, a significant price drop occurs. This is intended to persuade other market participants to sell the same asset, resulting in a further price decline. Shortly afterwards, the initial sellers buy back in at a lower price, boosting the price upwards, only to then potentially sell the asset once again for more profit.

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Behavior-Based Detection Method

Behavior-based detection methods are used by advanced malware protection programs to identify suspicious activity. The protection programs analyze and review code for potentially harmful behavior, network attacks, and the installation of rootkits and malware.

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Benchmark Index

A benchmark index refers to a preeminent index security used as a measure, or benchmark, against which one can track performance of the wider market. Common benchmark indexes include the S&P 500, Nasdaq Composite, and Russell 3000.

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