This page contains crypto/blockchain related words/definitions with described explanations. All the used crypto/blockchain related words/definitions on this website are explained on this page.
Affiliate
Affiliate literally means closely associated or connected with one another. In a affiliate program, the merchant/project rewards the affiliate or associate for advertising and/or linking to his website. Mostly the affiliate is rewarded when a sale has been made after using the affiliate link.
App
An app is an abbreviation for application. An app or mobile app is a computer program or software application designed to run on a mobile device such as a phone, tablet, or watch.
Blockchain
Blockchain is a distributed system with growing lists of records (blocks) that are securely linked together by cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp and transaction data (generally represented as a Merkle tree, where data nodes are represented by leaves). Since each block contains information about the previous block, they effectively form a chain (compare linked list data structure), with each additional block linking to the ones before it. Blockchain transactions are irreversible, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
CEX
CEX is an abbreviation for centralized exchange.
Cookies
Cookies are text files with small data (information) included that a website asks your browser to store on your computer or mobile device. Cookies allow the website to remember your actions and/or preferences which can make the website better and make it more useful for the visitor.
Cryptocurrency
Cryptocurrency, crypto currency or crypto are digital currencies on a computer network or blockchain which can be traded on an exchange.
Cryptocurrency broker
A cryptocurrency broker (or broker) is a company or an individual that acts as an intermediary between the users and the cryptocurrency markets. A cryptocurrency broker sets their own prices and fees. It allows customers to trade cryptocurrencies (digital currencies) and other assets. Customers can deposit/withdraw fiat money and/or cryptocurrencies to their bank account, other crypto currency exchange or cryptocurrency wallet.
Cryptocurrency exchange
A cryptocurrency exchange (or exchange) is a business that allows customers to trade cryptocurrencies (digital currencies) and other assets. Customers can deposit/withdraw fiat money and/or cryptocurrencies to their bank account, other crypto currency exchange or cryptocurrency wallet. Some cryptocurrency exchanges accept credit card payments, wire transfers or other forms of payment. Most cryptocurrency exchanges take fees from transfers and/or trading. Some cryptocurrency exchanges have an own issued token which can give rewards (for example: earning tokens) and benefits (for example: less fees) to the customer by holding the token(s). Some cryptocurrency exchanges have options for staking, farming and ETFs. For certain options and if certain limits are reached, customers are required to complete KYC.
DApp
A dApp an acronym for decentralized appllication. It is a software program that runs on a blockchain or peer-to-peer network (P2P) of computers.
Decentralization
Decentralization on the blockchain is not reliant on a central authority like a government, corporation or a bank to operate. In the decentralized system a sender and receiver can make a transfer without the need of external parties like payment system or a bank.
DeFi
DeFi stands for decentralized finance. It is an umbrella term for financial services on public blockchains, It uses cryptocurrency and blockchain technology to manage financial transactions.
DEX
DEX is an acronym for decentralized exchange.
Gamefi
GameFi is an anagram for Gaming Finance. It stands for a combination of gaming and decentralized finance (DeFi). It integrates blockchain applications into the gaming sector with multiple use cases.
IAO
IAO is an acronym for Initial Airdrop Offering. It is the first airdrop option.
ICO
ICO is an acronym for Initial Coin Offering. It is the first public sale of a cryptocurrency. It forms as a funding of raising capital for new projects (start-ups).
IDO
IDO is an acronym for Initial DEX Offering. It is the first public sale of a cryptocurrency which is facilitated by an DEX exchange where the customer/investor can participate. The project takes full responsibility to manage the transactions and operations. There are no exchange fees and it does not require authorization.
IEO
IEO is an acronym for Initial Exchange Offering. It is the first public sale of a cryptocurrency which is facilitated by an cryptocurrency exchange where the customer/investor needs to have completed KYC and fulfil all legal terms and jurisdiction (residents from certain countries cannot participate) to participate. It forms as a funding of raising capital for new projects (startups). Cryptocurrency exchanges act as a middleman between customers/investors and the project (startup) where they earn fees from the process and possible from the funding phase. It can be seen as an evolution from the ICO due to regulation (legal influence) of the cryptocurrency sector. In the cryptocurrency sector equivalent to an IPO on the stock market.
IFO
IFO is an acronym for Initial Farming Offering. It is the first farming option. Tokens can be farmed through a cryptocurrency exchange where users can purchase tokens through a pre-sale at a discount.
KYC
KYC is an abbreviation for know your customer. It is the mandatory process of identifying and verifying the client’s identity. KYC standards are created to protect financial institutions against fraud, corruption, money laundering and terrorist financing.
Lending
Lending (or financing) is the process where a person, group or financial institution provides funds to a borrower.
NFT
NFT is an acronym for non-fungible token (NFTs is an abbreviation for non-fungible token). A NFT is a unique digital identifier in a blockchain that cannot be copied, substituted, or subdivided and can be used to certify authenticity and ownership (digital asset and/or specific rights relating to it).
PAN
PAN is an acronym for personal area network. A PAN is a computer network for connecting electronic devices within a personal workspace. A PAN provides data transmission (communications) between devices such as computers, laptops, tablets and smartphones.
Peer-to-peer (P2P)
Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally equivalent parts in a network. Multiple peers can form a network of nodes. A personal area network (PAN) is a type of decentralized peer-to-peer network mostly between two devices.
Staking
Staking is a process where an user is earning rewards for holding certain cryptocurrencies.
Yield farming
Yield farming (or farming) is a process where an user is earning rewards with providing liquidity (staking or lending assets) to a decentralized finance (DeFi) platform.