The Dictionary
Explore 336+ clear, technical, and objective definitions defining the decentralized future.
Recently Defined
Total Supply
Total supply is the number of tokens that currently exist, usually excluding tokens that have been permanently destroyed or burned. It is different from circulating supply, which attempts to measure tokens actively available to the market, and maximum supply, which represents an upper limit if one exists.
Token Standard (ERC-20)
A token standard is a common set of technical rules that defines how a type of blockchain token should behave. ERC-20 is the most widely used standard for fungible tokens on Ethereum and Ethereum-compatible networks. Fungible means that individual units are intended to be interchangeable, similar to how one dollar can be exchanged for another dollar.
Decentralization
Decentralization is the distribution of control, decision-making, infrastructure, or data across multiple independent participants rather than concentrating authority in a single company, server, or administrator. In crypto, decentralization can apply to blockchain validation, governance, software development, token ownership, data storage, and application infrastructure.
Distributed Ledger
A distributed ledger is a shared database that is stored, synchronised, and maintained across multiple computers or participants rather than being controlled by one central database administrator. A blockchain is one type of distributed ledger.
Network Fee
A network fee is the amount paid to a blockchain network to process and record a transaction. It is separate from fees that may be charged by an exchange, broker, or trading platform.
Mining
Mining is the process used by proof-of-work blockchains in which specialised computers perform computational work to compete for the right to add new blocks. Bitcoin is the most prominent example.
Block (Blockchain Data)
A block is a structured collection of blockchain data, usually containing a batch of transactions and information connecting it to previous blockchain history.
Transaction
A transaction is an action submitted to a blockchain that changes or records blockchain state. Transactions can transfer cryptocurrency, swap tokens, interact with smart contracts, stake assets, vote, mint tokens, or perform other network operations.
Off-Ramp
A crypto off-ramp is a service that allows users to convert cryptocurrency into traditional fiat money and send the proceeds to a bank account, card, or another payment method.
On-Ramp
A crypto on-ramp is a service that allows users to convert traditional money, such as US dollars or euros, into cryptocurrency.
Fiat
Fiat currency is government-issued money that is not backed by a fixed quantity of a commodity such as gold. Examples include the US dollar, euro, British pound, and Japanese yen.
Exchange
A crypto exchange is a platform that allows users to buy, sell, or trade cryptocurrencies and related financial products. Exchanges can be centralised or decentralised.
Custodial
Custodial describes a crypto arrangement where a third party controls the private keys associated with the user's assets. The custodian may be an exchange, broker, institutional provider, wallet service, or another financial company.
Address
An address is a public blockchain identifier used to receive, hold, or interact with cryptocurrency and other on-chain assets. The exact format differs between networks.
Blockchain Token
A token is a digital asset created and managed through an existing blockchain rather than operating on its own independent blockchain. Tokens can represent value, voting rights, access rights, stablecoins, securities, game items, or many other forms of digital ownership.
Ethereum
Ethereum is a programmable blockchain network designed to support smart contracts and decentralised applications. Its native cryptocurrency is Ether, or ETH.
Bitcoin
Bitcoin is a decentralised digital currency and blockchain network introduced in 2009. Its native asset is bitcoin, commonly represented by the ticker BTC. Bitcoin allows users to transfer value directly across its network without requiring a central bank or payment company to approve each transaction.
Cryptocurrency
A cryptocurrency is a digital asset that uses cryptography and blockchain or distributed-ledger technology to record ownership and transfers. Cryptocurrencies can be used for payments, investment, trading, network fees, governance, staking, or access to blockchain applications.
Long and Short
Long and short describe the two basic directional positions traders can take. A long position benefits when an asset's price rises. A short position benefits when an asset's price falls.
Liquidation
Liquidation occurs when a leveraged trading platform forcibly reduces or closes a position because the trader no longer has enough margin to satisfy the required maintenance margin.