Cryptocurrency & Blockchain Glossary

Any cryptocurrency other than Bitcoin. Popular examples include Ethereum (ETH), Solana (SOL), Cardano (ADA), and Litecoin (LTC).

The real rate of return earned on an investment, taking into account the compounding effect. Widely used across DeFi protocols to measure staking and liquidity rewards.

The world's first decentralized cryptocurrency, created in 2008 by Satoshi Nakamoto. Uses a peer-to-peer distributed ledger (blockchain) and Proof of Work consensus.

A decentralized, immutable data structure that records transactions into cryptographically linked blocks. Serves as a public distributed ledger maintained across nodes.

An online portal that enables users to inspect transactions, wallet balances, block details, and smart contracts in real time on a blockchain (e.g. Etherscan).

A cryptocurrency wallet stored entirely offline (hardware wallets like Ledger or Trezor, or paper wallets), shielding private keys from internet hackers.

A software application built on a public blockchain network that uses smart contracts for backend business logic without central server control.

An organization managed by smart contract rules and community token governance, operating without traditional corporate management hierarchies.

An umbrella term for financial products (loans, exchanges, insurance) built on open blockchains that function without traditional banking intermediaries.

The standardized virtual execution environment that runs across thousands of Ethereum nodes, responsible for executing smart contracts and updating ledger state.

The transaction fee paid by users to network validators or miners to compensate for computational resources required to process smart contracts and transfers.

The first block ever mined on a blockchain network (Block 0). Bitcoin's Genesis Block was mined by Satoshi Nakamoto on January 3, 2009.

A hardcoded event in Bitcoin's code occurring every 210,000 blocks (~4 years) that cuts the new supply issuance per block mined in half.

The base mainnet blockchain network (e.g. Bitcoin, Ethereum, Solana) that processes and settles transactions directly on its primary protocol layer.

A secondary protocol built on top of a Layer 1 blockchain to boost throughput and slash transaction fees (e.g. Arbitrum, Optimism, Polygon).

A consensus protocol where network validators stake native tokens as collateral for the right to validate transactions and propose new blocks, using 99%+ less energy than PoW.

The original consensus algorithm where network miners solve complex cryptographic puzzles using computing hardware to secure the network and mint new coins.

A self-executing computer program stored on a blockchain that automatically fulfills agreement terms when predetermined conditions are met, eliminating intermediaries.

The pseudonymous creator or group of creators who authored the Bitcoin white paper in 2008 and launched the network in 2009.

The process of locking tokens on a Proof of Stake network to help secure consensus in return for periodic percentage rewards.

An authoritative technical report published by protocol founders explaining the economic model, system design, and cryptographic consensus of a project.