The Dictionary
Explore 336+ clear, technical, and objective definitions defining the decentralized future.
Recently Defined
Gasless transaction
A gasless transaction is a user action where the user does not directly pay the network fee in the chain's native token, because another mechanism sponsors or abstracts that fee.
Signature
A cryptographic signature proves that the holder of a private key authorized specific data without revealing the private key itself.
Front-running
Front-running occurs when someone observes a pending action and gets a strategically related transaction executed before it to capture an advantage.
Nonce (account)
An account nonce is a sequence value used to order transactions from an account and help prevent the same signed transaction from being replayed repeatedly.
Deflationary / Inflationary token
An inflationary token has a supply that grows over a measured period, while a deflationary token has a supply that shrinks over that period.
Burn
A token burn permanently removes tokens from spendable supply according to the token or protocol's rules.
Emission schedule
An emission schedule defines how and when new or previously reserved tokens are introduced into circulation.
Hash
A hash is a fixed-size output produced by applying a cryptographic hash function to data. Even a small change in the input normally produces a substantially different output.
Multisig
A multisig, short for multi-signature wallet, is a wallet or account structure requiring approval from multiple authorised keys before certain transactions can be executed.
Annual Percentage Rate (APR)
APR, or Annual Percentage Rate, expresses an annualised rate without incorporating the effect of compounding in the same way APY does.
Annual Percentage Yield (APY)
APY, or Annual Percentage Yield, expresses an estimated annual return while accounting for the effect of compounding.
Over-Collateralization
Over-collateralization means providing collateral worth more than the amount being borrowed or the financial obligation being secured.
Collateral
Collateral is an asset pledged to support a loan, derivatives position, stablecoin, or another financial obligation. If the required collateral value falls too far, it may be sold or liquidated according to the system's rules.
Lending Protocol
A lending protocol is a blockchain-based application that allows users to lend and borrow crypto assets through smart contracts.
Yield Farming
Yield farming is a DeFi strategy in which users move or deposit crypto assets into protocols to earn fees, token incentives, interest, or other rewards.
Sidechain
A sidechain is an independent blockchain designed to connect or interact with another blockchain while maintaining its own consensus and security system.
ZK Rollup
A ZK rollup, or zero-knowledge rollup, is a Layer 2 scaling system that processes many transactions outside a Layer 1 blockchain and submits cryptographic proofs that demonstrate the validity of the resulting state changes.
Optimistic Rollup
An optimistic rollup is a Layer 2 scaling system that processes transactions outside the main blockchain and submits compressed transaction data or results back to a Layer 1 network such as Ethereum. It is called "optimistic" because transactions are generally assumed to be valid unless someone challenges them during a defined dispute period.
Seed Phrase Scam
A seed phrase scam is a scam designed to trick a crypto user into revealing or entering their secret recovery phrase, allowing the attacker to take control of the user's self-custody wallet. A seed phrase may also be called a secret recovery phrase, recovery phrase, or mnemonic phrase.
Volatility
Volatility describes how much and how quickly an asset's price changes over a given period. A highly volatile cryptocurrency can experience large price movements over short periods, while a lower-volatility asset tends to move within a narrower range.