Glossary - CoinSwitch

From blockchain to NFT and everything in between, our glossary with a collection of 100+ words and definitions is here to help you speak Crypto fluently.

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51% Attack

A 51% attack, also known as a majority attack, is a type of attack on a blockchain. It can take place when a group of miners with more than 50% of the network’s mining hash rate (that is, computing power) decides to take over the running of the network. They may prevent other miners from recording blocks. A large participation rate makes this type of attack very difficult.

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Ability-To-Pay Taxation

Ability-to-pay refers to a way of thinking about taxation. Those who subscribe to this idea believe that taxes should be levied according to one’s ability to pay. That means individuals and companies with higher incomes should shoulder a higher taxation rate. The underlying assumption of this philosophy is that money means less to a rich person than to a poor one.
Abnormal Return

Investment returns that are excessively high or low are known as abnormal returns. Unlike normal excess returns, these returns are not generated on account of the good work of an investment manager. Instead, they are caused by abnormal fundamentals or fraudulent activity. The impacts of an abnormal return are temporary.
Absolute Advantage

Absolute Advantage is a concept in economics. When one firm is able to produce and distribute the same items as another despite using fewer resources, it has an absolute advantage. The greater the advantage, the more efficient the production process will be.
Absolute Return

Absolute return is the profit or loss on an investment over a predetermined amount of time. Expressed as a percentage, this value indicates whether the overall worth of an asset has increased or decreased in that period. It is not easy to translate absolute returns into terms that apply to other types of investments.
Absorption Costing

The term Absorption Costing refers to a managerial accounting method also known as “full costing.” To assess all costs associated with manufacturing a product, this method allocates fixed overhead costs to the units produced in a specific period. This is done irrespective of whether it was sold or not. It also takes indirect costs into account.
Accepting Risk

Accepting risk, also known as risk acceptance, is a risk management strategy. It involves a company “accepting risks” associated with certain ventures instead of working toward a solution. Companies employ this strategy when it is far more cost-effective to accept the risk than find a solution.
Account

An account is basically a record in an accounting system. It is meant to track the financial activities of a user. Accounts can be used to prepare financial statements at the end of an accounting period. The details of every account is stored in a common ledger run by the issuing authority.
Account Balance

The account balance is the amount in a bank/crypto account that can be accessed instantly. It is essentially the difference between all debit and credit transactions. In other words, it is the sum that’s left over in an account after a transaction.
Account Number

An account number is essentially a string of numbers (and sometimes letters) used to identify a bank account and the person who holds the account. All transactions related to the account will involve the use of this number. It is an address of sorts that people can use if they wish to transfer funds to you.
Accounting Conservatism

Accounting conservatism is a bookkeeping guideline. According to this principle, if an accountant can choose from two solutions for an accounting challenge, they should go with one that yields inferior numbers. The idea is that it is better to overstate liabilities and understate assets. It is part of the Generally accepted accounting principles (GAAP) issued by the Financial Accounting Standards Board.
Accounting Token

Accounting tokens are essentially tokenized debit or credit entries (UOMs or IOUs). They represent the amount of money owed by a token holder but are meant to only be used for accounting. Unlike stablecoins, they are not backed by fiat, so they can’t be treated as a financial product.
Accredited Investor

An accredited investor can invest in securities that are not registered with the relevant financial regulator. The financial regulator varies according to jurisdiction, and so do the accreditation norms. However, investors are usually accredited on the basis of their asset size, net worth, income, or governance.
Accretion (of a discount)

The gains an investor makes from purchasing assets at a discounted price are known as accretion. As the difference between the discounted price and the bond’s face value grows with time, so does the accretion. In corporate finance lingo, the term is used to refer to the value produced through a merger or acquisition.
Accrual

The cumulative income, expenses, or interest for a period of time are known as accruals. It is a sum that has to be paid or received due to an accumulation of debt or credit.
Accrual Accounting

Accrual accounting is an accounting method where transactions are recorded in the year of occurrence—not of payment. The transactions may involve revenue or expenses. So, with this method, the accountant takes stock of revenue post-delivery, even if the customer has not yet paid up. This is done because the expenses are incurred in the period when the transaction occurred.
Accrued Income

Accrued income is the type of income that has been earned but is yet to be received. The concept falls under the accrual method of accounting. The point of this income calculation is to factor in and compare costs with the income in that period.
Accrued Interest

Accrued interest is some cumulative interest that a party has to pay or receive for a period. The distinguishing feature is that the yet-to-be-paid sum has been mentioned in accounts—in balance sheets and income statements. It is part of the accrual method of accounting.
Accrued Liability

An accrued liability is essentially a type of financial obligation. One can see this type of liability when money owed has not yet shown up in an account as the creditor is yet to receive the invoice. This type of liability usually arises when a business purchases goods and services on credit.
Accrued Revenue

Accrued revenue is when a business records sales without receiving payment for the goods or services sold. It usually arises the business does not invoice the customer at the time of the sale.
Accumulation Phase

The accumulation phase is a stage in the market cycle right after a downtrend. During this phase, institutional investors start buying in tranches, signalling an upcoming uptrend. The institutional interest reflects their belief that the asset is undervalued but has great potential.
Accumulation/Distribution Indicator

The accumulation/distribution indicator is a price and volume-based indicator. It determines the current and future trends of an asset by examining the relationship between its closing price and volume flow. In this indicator, “accumulation” is meant to capture the demand, and “distribution” refers to the supply of the asset. Traders use it as a momentum indicator, spotting tops and bottoms to anticipate trend reversals.
Acid Test Ratio

The acid test ratio is a quick test to determine the health of a company. It gives an overview of the liquidity of a company. It accomplishes this by comparing a company’s short-term assets to its short-term liabilities. Doing this allows us to verify if a company has enough cash to pay its immediate liabilities.
Acquisition

The buying of all or most of a firm’s shares by another is known as an acquisition. Acquisitions give the buyer decision-making power over the other company. Read more about them here.
Acquisition Premium

An acquisition premium is the price difference between the price paid for a company and its market value. It represents the sum that the acquiring firm paid over and above the acquired company’s fair value. An acquisition premium called goodwill is retained as an intangible asset on the buyer’s balance sheet post-acquisition. Goodwill represents the brand name, stakeholder relations, and patents.
Active Management

Active management refers to one of the ways in which a portfolio can be managed. With this style of management, a manager or a team of managers actively manages a portfolio. The manager(s) may make investment decisions based on anything from personal experience and forecasts to analytical research, and fundamental analysis.
Activist Investor

An activist investor is an individual or institutional investor who intends to initiate changes by gaining a controlling stake in a company. Such investors focus on undervalued companies or ones that have untapped potential. They do this by studying business fundamentals.
Adaptive State Sharding

Adaptive State Sharding is an approach to sharding that combines all three types—state, transactions, and network sharding—into one. In other words, it is a partitioning technique that allows for adaptation to an increasing or decreasing number of nodes without compromising the decentralization and security of the network. The aim is to improve communication and, in turn, performance. It is used by the blockchain platform Elrond.
Address

In the world of financial technology, including crypto, an address is a unique string of characters representing a wallet. Like a postal or email address, the user can use an address to send or receive funds or information. Addresses, essentially, denote the specific location of the wallet concerned. Every address is unique.
Administrative Expenses

Administrative expenses are costs that companies incur in order to maintain their administrative setup. They include but are not limited to administrative staff fees (salaries and benefits). Such costs are incurred in addition to those separate from sales, marketing and research. They are considered an indirect expense as they are not related to the manufacturing process.
Adoption Curve

An adoption curve is the graphic representation of the stages through which some technology is adopted. It indicates the pace at which the technology finds acceptance. Adoption rates vary according to the audience, so creating the curve may involve segregating the audience.
Advance/Decline Line

The Advance/Decline or A/D line is a technical indicator. It is used to plot the difference between the daily advances and declines in the stock market. Drawing the line involves adding or subtracting numbers from a previous value. A/D lines are used to confirm price trends and warn of reversals if a divergence occurs.
Affiliate

An “affiliate” refers to an entity that has a formal connection with another. That means the companies have an agreement or contract of some kind, and there is a public declaration of the relationship, too. For one company to affiliate with another, therefore, there must be common ownership, shared management, and a contract.
Agency Problem

The agency problem is an issue in corporate finance. It refers to the challenge of persuading one agent/party to act with the best interests of another in mind instead of their own. Most organizations face conflict of interest issues of this type, especially between the management and stockholders.
Agency Theory

Agency theory is a principle used to explain and resolve issues between two cooperative parties: a principal and their agent. Usually, the principals are shareholders, and company executives are agents. According to the theory, the two parties have different interests and priorities, creating what is known as the principal-agent problem. Profit sharing and performance-based compensation are some of the most common ways to solve the problem.
Agent

The term “agent” refers to any person or organization acting on behalf of another party—known as the principal. Agents usually have the authority to sign contracts on behalf of the principal. There is usually a written, verbal, or at least tacit agreement between the two. The decisions that the agent makes can and do affect the principal’s legal standing and obligations.
Aggregate Demand

Aggregate demand is a measure of the demand for all finished services and goods produced by an economy. It refers to the total/aggregate amount of money exchanged as a result of that demand at a set price and point in time. To calculate it, add up the sum of purchases made via exports, by firms, households, government and foreign buyers. Then subtract the part of the demand that is satisfied through imports.
Aggressive Investment Strategy

An aggressive investment strategy is a high-risk investment strategy. The aim of this strategy is to generate the maximum returns possible in financial markets by investing in high-risk assets. It may involve anything from options trading to investing in emerging market investments and high-yield bonds.
Airdrop

Airdrops are a kind of marketing strategy employed by crypto start-ups. It involves delivering Bitcoin or other tokens into active trading or investing wallets—either free or in exchange for a nominal promotional service. Airdrops help spread awareness about new coin projects and are usually used after the Initial Coin Offering (ICO).
Altcoin

“Altcoin” is an umbrella term used to refer to every crypto out there except Bitcoin. Bitcoin is considered the first crypto ever, so all other coins come to be known as “alternative coins.” Most altcoins are more volatile than Bitcoin and are thus mainly used to diversify investments in crypto markets. Ethereum is the top altcoin by market capitalization as of 14 September 2022.
Angel Investor

An Angel Investor is someone who finances small businesses or startups in exchange for equity or tokens. Such investors are called angels because they often step in to support companies when no other funding sources are available. Unlike VC firms that rely on investment funds, high-net-worth individuals who act as angels invest their own money. Since these investments are pretty risky, they usually limit their investment to less than 10% of their portfolio.
Animal Spirits

Animal spirits is a term that describes how people arrive at financial decisions, including buying and selling securities in times of economic stress or uncertainty. It refers to the human emotions that affect consumer confidence. The well-known British economist, John Maynard Keynes, coined the term.
Annual Equivalent Rate (AER)

The Annual Equivalent Rate (AER) is the interest rate for a savings account or investment product with more than one compounding period. While calculating AER, the assumption is that the principal payment’s balance includes any interest paid and the next interest payment will rely on the slightly higher account balance. AER also goes by the name of effective annual interest rate or APY.
Annual Percentage Rate (APR)

Annual Percentage Rate (APR) is the annual interest rate charged for a loan. It includes miscellaneous charges. When users of a PoS blockchain loan out/stake their crypto, the monetary reward is called APR. Since it takes on board interest rates and any other fees, stakers use the APR to decide where they want to stake their holdings.
Annual Percentage Yield (APY)

Annual Percentage Yield (APY) refers to the actual rate of return one earns in a year after taking the compounding of interest into account. The APY is directly proportional to the compound interest. It varies across products and may have a variable or fixed rate.
Apeing

In the trading world, “apeing” is when a crypto trader buys a token soon after a project launch without doing enough research. Traders tend to ape each other because they fear missing out on potential gains. The term became popular during the 2020 “DeFi Summer.” At the time, several crypto projects were launched, and a handful of traders made money quickly. Those who thought they would miss out succumbed to apeing.
Appropriation Bill

An Appropriation Bill is a proposed law that allows a government to use public funds. It is also known as a spending bill or a supply bill. In the Indian context, the law authorizes the government to use money from the Consolidated Fund of India. After the appropriation bill is passed, the government may use the money to cover expenses for that fiscal year. The Act is automatically repealed after it meets its statutory purpose.
Ascending Triangle

An ascending triangle is a chart pattern in technical analysis. Bullish as they are, ascending triangles tend to occur mid-trend and signal continuation. They appear when the price moves such that a horizontal line drawn along the swing highs and a rising trendline drawn along the swing lows form a triangle. Traders often watch for breakouts from triangle patterns. The price usually breaks out of the triangle in the direction prevailing before it appeared.
ASIC

The microchips used in crypto mining are called Application-Specific Integrated Circuits or ASICs. An ASIC miner is a computerized device that uses these ASICs. To validate blocks of crypto transactions on a blockchain, such devices with high computational power are needed. ASICs are pretty expensive and energy-intensive.
Asset

Assets refer to resources with economic value. They are usually owned or controlled by individuals, corporations, or countries hoping to profit from them. A record of all assets is maintained via a balance sheet.
Asset Allocation

Asset allocation is a type of investment strategy. To balance risks and rewards, it divides a portfolio so that the investor chooses assets according to their goals, risk tolerance, and investment timeline. There is no single formula one can use to determine the right asset allocation for all people.
Asset Class

A group of investments exhibiting similar traits and subject to the same laws is known as an asset class. Investments in an asset class often behave similarly in the marketplace. While helping investors diversify their portfolios, financial advisors usually focus on asset classes. Equities, fixed income, cash and cash equivalents, real estate, currencies, and commodities are some common asset classes.
Asset Coverage Ratio

The asset coverage ratio is a financial metric. It indicates how much debt a company can repay by selling or liquidating its assets. In others, it helps lenders and investors measure a company’s financial solvency. The higher the asset coverage ratio, the better the chances that the company can cover its debt.
Asset-Backed Security (ABS)

An Asset-Backed Security (ABS) is a type of financial investment collateralized by an underlying pool of assets. Assets that generate cash flow from debt—such as loans, leases, or credit card balances—usually serve as collateral. ABS is a good alternative to other debt instruments like corporate bonds or bond funds. A security of this type can take the form of a bond or note, which yields income at a fixed rate for a set amount of time, until maturity.
Automated Market Maker (AMM)

An automated market maker (AMM) is a protocol used by decentralized exchanges. They eliminate the need for third parties while trading crypto assets. Through automated trading, these protocols provide liquidity to the exchange it is part of. It does this by replacing the order book of traditional exchanges with liquidity pools. The pools are pre-funded, and other users provide the liquidity needed through trading fees.

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BaaS

Banking as a Service is also known as a BaaS platform. Such platforms offer a higher level of financial transparency by letting banks open up their APIs to third parties. The opening up is meant to help third parties develop new services. BaaS is also short for Blockchain as a Service. That is third-party cloud-based infrastructure and management for companies.
Backflush Accounting

Backflush accounting, or backflush costing, is an accounting method. It involves assigning costs to products after the production is complete. A lot like working backwards, this method comes into use when a company has not set the final price of already manufactured goods. It does save time, but it can be complex to implement, and the audit process may become almost impossible.
Backstop

A backstop is a type of insurance agreement. It is meant to protect a company arising on account of unsubscribed shares. Investment banks offer backstops as a secondary source of funds in case the primary funds fall short. It involves a commitment on the part of the investment bank that they will buy the unsubscribed shares if necessary.
Bag

“Bag” is crypto slang for a large quantity of a crypto. Alternatively, albeit less frequently, the term is understood as referring to the contents of an individual’s crypto portfolio.
Bag Holder

Drawing on the term “bag,” a “bag holder” is an individual who holds a significant amount of some specific crypto. Bag holders usually hang on to their crypto even if there is a sizable price decline.
Bail-in

A bail-in is a type of solution for a bad credit situation. It is meant to help financial institutions on the verge of collapse. Bail-ins involve the nullification of dues owed to creditors and depositors. Unlike bailouts, where the government uses taxpayer money to rescue the institution, a bail-in instead puts the creditor at risk to some extent. Governments opt for bail-ins when bailouts are tricky.
Bait-and-Switch Scam

A bait-and-switch scam is a fraudulent sales strategy. In a scam of this type, customers are lured with low charges. But at the time of purchase, they are asked to pay a higher rate. They may even be sold a product of lower quality. The low charge is, therefore, simply a “bait” before the “switch” of charges or products.
Baker

The block-producing nodes of the Tezos blockchain are known as Bakers. Tezos uses a Proof of Stake mechanism to verify its transactions. So bakers stake tokens to earn the chance to produce new blocks via Baking and XTZ token rewards. The protocol can penalize dishonest bakers by seizing their security deposits. Bakers need to have some software and hardware expertise to run the node, but they can delegate their rights to others if they wish to.
Baking

Baking is the process that the Tezos blockchain uses to verify transactions and create blocks. Tezos uses a Proof of Stake mechanism to verify its transactions. So validators, known as bakers, have to stake tokens to earn the chance to produce new blocks via Baking and XTZ token rewards. Bakers are allowed to delegate their baking rights to another person.
Balanced Budget

A balanced budget is one in which the revenues equal the expenditures. This means there is no deficit or surplus in the budget. After incurring and making a record of the whole year’s revenues and expenses, one may deem a budget balanced.
Balloon Loan

A balloon loan is a special type of loan. Unlike regular loans, these loans are not amortized. Meaning that the value of the book loan does not keep lowering over time. Instead, they can pay a small sum every month for the duration of the term and a balloon payment at maturity.
Balloon Payment

The large sum of money due when a balloon loan matures is called a balloon payment. This payment is significantly larger than all the repayments before it. Such payments are usually when the monthly repayment amount is rather low.
Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) is an international financial institution. The main goal of BIS is to promote global monetary as well as financial stability. It does this by coordinating between global central banks and their monetary policy efforts. For this reason, BIS is often called the central bank for central banks.
Bank Run

A bank run is when most customers withdraw their money from their bank accounts due to fear of solvency and bankruptcy. When it occurs, the bank may run out of cash on hand to deal with withdrawal demand. That, in turn, leads to a real possibility of bankruptcy.
Basis Point

A basis point is a common unit of measurement for interest rates and other percentages. The word basis in the term comes from the spread between two interest rates. That is the “base” move between two percentages. One basis point equals 1/100th of 1% or 0.01%. The abbreviations bp, bps, or bips are commonly used while referring to basis points.
Basket

In the crypto space, the term basket refers to a collection of digital currencies being managed as a single asset. The collective approach to holding minimizes the need for holders to monitor them individually. The term is sometimes used interchangeably with a crypto index fund.
Batch Auction

Batch auctions are a type of trading mechanism. With batch auctions, individual orders are grouped together and executed collectively at the same time. All the orders of a batch are settled at the same clearing price. This trading mechanism helps ensure fair price discovery.
Bear Market

This term refers to a market condition characterized by a steady fall in prices, typically by more than 20%. A bear market may accompany recessions. Investors can benefit by dollar-cost averaging their investments and buying fundamentally strong assets. Bear movements can last for months or years.
Bear Spread

A bear spread is a bearish options strategy. It is put to use when the investor expects the price of an asset to decline moderately. With this strategy, puts or calls are purchased together for the same underlying contract but at different strike prices. If the underlying asset closes at or below the lower strike price, the profits are maximized.
Bear Trap

Bear trap is a type of price manipulation. A group of investors usually combine resources to sell a large sell order with the aim of driving the price down. Once they manage to convince other participants that a price correction is in order, the sell-offs begin, and the price crashes. Then the group takes to buying back the crypto dirt cheap.
Bearwhale

A “bearwhale” is someone who has a large crypto holding and tries to profit by pushing the asset price down. Coined in 2014 when the market took a fall after a whale took to dumping BTC, the word is an amalgamation of bear and whale.
Benchmark Index

A collection of securities used to evaluate the results of other assets is known as a benchmark index. Such indexes usually cover a variety of markets and features. They have different standards for large, mid-size, and small-cap companies. Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 are some examples of benchmark indexes.
Bid Price

The bid price is the highest amount that a potential buyer is willing to pay for a security, asset, commodity, service, or contract. Brokers or shareholders selling holdings either choose one of the existing bid prices in the order book (usually the highest) or submit an ask price. A bid is usually lower than the “ask price”—the price at which people are ready to sell
Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. As the bid stands for demand, and the ask represents supply, the spread is a measure of market liquidity. The bid-ask spread is usually larger for not-so-popular securities.
Biflation

Biflation is the concurrent increase and decrease in prices within an economy. It refers to an uneven response to the application of a monetary stimulus. With biflation, the prices of debt-based assets, such as home mortgages, increase, while those of commodity-linked assets decrease. The term is a misnomer of sorts as inflation and deflation usually mean a rise in all prices, rather than a few assets.
Bird In Hand

“Bird In Hand” is a theory in the financial world. According to this theory, investors prefer stock dividends to potential capital gains because capital gains can be rather uncertain. Here, capital gains investing is the “two in the bush” of the well-known adage “a bird in the hand is worth two in the bush.” It counters the Modigliani-Miller dividend irrelevance theory, which says that investors don’t care where their returns come from.
Bitcoin

Bitcoin (BTC) is considered the original digital coin. It is the largest crypto by market cap today. Created by Satoshi Nakamoto in 2009 as a virtual coin for use by a small group of people, Bitcoin has come a long way. It is now a payment and currency system that millions use every day. The coin has a maximum supply of 21 million, of which 90% have been mined so far.
Bitcoin Dominance

Bitcoin Dominance is one of the oldest and most widely used metrics to measure key movements in the crypto market. It measures a coin’s market cap relative to the overall market. When Bitcoin was the only crypto, its dominance was close to 100%. With the growth of the crypto market, the BTC Dominance has dropped below 50%, going well below the 80% level of the last five years.
Bitcoin ETFs

Bitcoin Exchange-Traded Funds (ETFs) are a collection of Bitcoin-related assets traded directly on traditional exchanges. They are used to incentivize those not comfortable holding the coin directly or making retail Bitcoin investments. No more complex storage issues for users, and investing in crypto is a lot easier.
Bitcoin Halving

The number of Bitcoins rewarded to miners is periodically halved to inflate demand and raise prices. Having refers to the process by which this happens. Halving roughly occurs every four years or after 2,10,000 blocks have been mined. Prices halve with every cycle. Currently, mining rewards for Bitcoin are 6.25 BTC for every block.
Bitcoin Improvement Proposal (BIP)

The standard format for documents proposing changes to Bitcoin is known as the Bitcoin Improvement Proposal (BIP). The first BIP was issued by programmer Amir Taaki in 2011, two years after Bitcoin was created. Every BIP is publicly available on GitHub.
Bitcoin Misery Index (BMI)

The Bitcoin Misery Index (BMI), informally known as a “fear” index, is a tool that helps investors who are looking for buy and sell signals. It ranges from 0 to 100, and any value below 27 is regarded as part of the “misery” stage. Values above 67 belong to the “happy” stage. The index is calculated using volatility and the number of winning trades.
Bitcoiner

Bitcoiner is crypto slang for a person who actively engages in activities related to Bitcoin. This includes buying and HODLing Bitcoin. The primary difference between Bitcoiners and other crypto enthusiasts is the greater engagement and commitment they display.
Bitcointalk

Bitcointalk is the most popular online forum dedicated to Bitcoin, crypto and blockchain technology. The forum was created in November 2009 by the inventor of Bitcoin itself—Satoshi Nakamoto. Users need to simply create a profile to start posting on threads and subthreads in the forum.
Black Hat Hacker

Black hat hackers are individuals who penetrate computerized networks and systems in order to steal from them. Such hackers may steal data or money. Unlike white hat hackers, they intend to gain personally or financially from the endeavor.
Black Monday

In the financial world, the 19th of October 1987 is known as Black Monday. Like Black Tuesday, the Dow Jones Industrial Average (DJIA) was at the center of this sad day too. DJIA lost almost 22% in a single day, marking the beginning of another global stock market decline. Economists argue that the crash occurred due to various geopolitical events. Computerized program trading is said to have accelerated the selloff.
Black Money

The term “black money” means funds earned through illegal or underground economic activity. In other words, income that’s off the records for tax purposes. Such proceeds are usually received in cash. The circulation of black money in the economy often leads to higher levels of corruption.
Black Swan Event

Black Swan Events are negative impactful occurrences characterized by an unpredictable and rare nature. Coined by finance professor and former Wall Street trader Nassim Nicholas Taleb, such events usually have catastrophic consequences. The 2008 global financial crisis is an example of such an event.
Black Tuesday

Black Tuesday refers to the day of 29 October 1929. The day saw a sharp fall in the stock market, and the Dow Jones Industrial Average (DJIA) was especially hard hit with a huge one-day drop. Making stock market history, DJIA fell 12% on the day. The day marked the beginning of the Great Depression. The downturn was caused by too much debt used to buy stocks, slow economic growth, and global protectionist policies.
Blended Rate

Blended rates are interest rates that apply to refinanced loans. This interest rate usually represents a combination of a previous rate and a new (higher) rate. The blended rate is, however, usually lower than the rate on a totally new loan.
Block

A block is a collection of transactions completed over a set period of time. The blocks link up, forming a “blockchain.” People from across the world with access to high computational power, known as miners, consensually verify crypto transactions and add them to a block. Once a transaction is added to the block, it becomes very hard to delete or manipulate.
Block Height

The block height is a number that reveals the specific location of the block concerned in the blockchain. In other words, the block height of a particular block is determined by the number of blocks that precede it. It indicates how steadily new blocks are added to the blockchain despite variations in factors such as mining difficulty.
Block Size

The amount of data a single block can hold is called block size. The largest amount of data a block can hold is called the block size limit. This number is different for each blockchain. The smaller the block size limit, the greater the transaction time. However, larger blocks are less secure. Bitcoin can currently hold up to 1 MB of data per block. That is about 2,000 transactions.
Block Time

This concept refers to the time it takes for miners or validators to verify one block of transactions and add a new one to the blockchain. If the block time is low, it means that the transactions were verified quicker, and the transactions per second were high. The block time depends on the block size, mining difficulty, and network congestion.
Block Trade

Block trades are large, privately negotiated securities transactions. To mask their size, they are usually broken up into smaller orders and executed via various brokers. A trade of this kind can be made outside the open market through a private purchase agreement.
Blockchain

Blockchains are at the heart of crypto and Web 3.0 projects. Essentially, a blockchain is a distributed ledger used to record information digitally. It’s a chain-like database that’s made up of “blocks” of data stored on a network of thousands of computers. That’s what gives them the name blockchain and makes them decentralized and unique.
Blockchain Bridge

Blockchain bridges are protocols that enable the transfer of assets and information across blockchains—a feature known as interoperability. They act like a physical bridge between them. Interoperability is crucial for the growth of decentralized finance and the blockchain ecosystem.
Blockchain Snapshot

Documenting the status of a blockchain at a specific block height is referred to as taking a blockchain snapshot. A snapshot offers an overview of the quantity and balance of token holders at any given time. It captures the whole blockchain ledger, including all existing addresses. It is frequently used to determine airdrop distribution.
Bloomberg Aggregate Bond Index

The Bloomberg Aggregate Bond Index or “the Agg” is a broad-based fixed-income index. Bond traders and managers of mutual funds and ETFs use it as a benchmark while measuring their relative performances. So the Agg essentially is meant to track the performance of the American investment-grade government and corporate bond market. Prior to August 2021, it was known as Barclay’s Agg. Then Bloomberg took over.
Blue Sheet

A Blue Sheet is a blue-colored secret budget document that contains key numbers and detailed information about the budget. It serves as a blueprint for the budget and is the backbone of the entire budget process. The blue sheet is kept hidden even from the finance minister. Only the joint secretary (budget) has access.
Boom and Bust Cycle

The boom and bust cycle refers to alternating phases of economic growth and decline. It is typical of modern capitalist economies. The term is sometimes used synonymously with the business cycle. First anticipated by Karl Marx in the 19th century, the boom and bust cycle, driven by investor and consumer psychology as well as market and economic fundamentals, can last anywhere from several months to years.
Brand Equity

Brand equity is the value premium a company generates from a product with a recognizable name as opposed to a generic one. Companies create this value premium by making their products memorable, recognizable, and better. Marketing too helps create brand equity to some extent. Sales volumes and profits tend to be higher for brands with better equity, so companies compete for superior brand equity.
Break-Even Price

A break-even price refers to the amount that an asset must fetch to help the manufacturer cover the initial investment or cost. As a market strategy, break-even pricing can help improve market share. But it may also lead to baseless consumer concerns about product quality. In relation to options contracts, the break-even price is the price of the underlying asset at which investors can exercise or dispose of the contract without incurring a loss.
Breakout

Breakout refers to a movement in the price above a resistance level or below a support level. Because not all traders will recognize or use the same support and resistance levels, breakouts are a subjective phenomenon to some extent. Breakouts indicate possible trading opportunities. They signal that the price might start trending in the direction of the breakout. High-volume breakouts suggest the prevalence of conviction.
Budget Estimates

Budget Estimates refer to the breakdown of the funds a Finance Minister allocates while announcing the Union Budget. The word “estimate” is a reference to the fact that they do not reflect the government’s final commitment. Instead, they represent the maximum amount of money the government is willing to spend on a specific task, ministry, or sector.
BUIDL

BUIDL is like “HODL” in that it is also a deliberate misspelling of a word. The word being misspelled is “build” in this case. Simply put, BUIDLing refers to the “building of useful stuff.” Crypto enthusiasts believe that if one truly believes in crypto and blockchain technology, HODLing is not enough. Hence the term is used as a call to arms for building and contributing to the blockchain and crypto ecosystem.
Bull Market

The market is said to be bullish when prices are rising and are expected to continue to rise. A bullish phase can last months or even years. The onset is hard to predict and one may only know it has started post facto. A bull market encourages buying, and investors can benefit by employing “buy and hold” or HODLing strategies.
Bull Spread

A bull spread is an optimistic options strategy. This strategy enables investors to gain from a moderate rise in the price of an asset or security. With bear spreads, the investor buys a call or put option with different strike prices for the same underlying asset and expiration date at the same time. For a bull spread to gain maximum profit, the underlying asset must close at or above the higher strike price.
Bull Trap

A bull trap occurs when an asset that is steadily declining seems to reverse its trajectory for a while, only to resume its downtrend soon after. It is also known as a “whipsaw pattern.” Investors who fall for the misleading bullish signal investors may take long positions that they later regret. Hence the name.
Business Cycle

A business cycle is a type of fluctuation found in the economic activity of nations. It is a cycle of parallel expansions in economic activities, followed by similar contractions (recessions). The changes recur but not periodically.
Butterfly Spread

A butterfly spread is an options strategy. It is a market-neutral strategy that combines both bull and bear spreads and comes with a fixed risk and capped profits and losses. Butterfly spreads have the best pay-offs when the underlying asset doesn’t move before the option expires. They use three different strike prices and four options.
Buy Wall

A buy wall is when a significantly large limit order is placed to buy an asset at a certain price. Such sell orders can act as a hedge for the asset’s price. So, like sell orders, these orders can also sometimes be used with the intention of manipulating the market.
Buying The Dip

Buying the dip, sometimes abbreviated as BTD, is an investment strategy. It involves buying an asset when the price is down. In other words, it is going long on an asset. Dip buying can be particularly profitable during long-term uptrends.

C

Call Option

Call options are essentially financial contracts. They give the buyer the right to purchase an asset of their choice at a specific price in the future. The buyer is not obligated to make the purchase though.
Candlestick Chart

A candlestick chart is a type of price chart used in technical analysis. Traders use it to determine upcoming price movements based on past patterns. It summarizes important information for traders such as the open price, low price, high price, and close price within a particular period of time. Candlesticks represent the emotions of traders visually by depicting the size of price moves in different colors.
Cantillon Effect

The Cantillon Effect is used to describe the uneven impact inflation has on assets and goods within an economy. It refers to the idea that a change in money supply upsets the relative prices of assets and goods. Wages and purchasing power is impacted too. The term named after economist Richard Cantillon is related to the concept of biflation.
Capital

Capital is any money or assets that an entity or individual owns and is available for investing or starting a company. In other words, it is the wealth one may use to make more money. In the context of a business, the term may also refer to the money that sustains its everyday operations and future growth.
Capital Efficiency

Capital efficiency is the ratio comparing a company’s spending on its growing revenue to its profits. The higher the ratio, the more efficient and profitable a company is.
Capital Funding

Capital funding is the money a company receives in order to operate. It may be provided in the form of debt or equity. A company may raise such funds by issuing stocks, debt, or tokens.
Capital Gains Tax

Capital Gains Tax is the tax on gains realized from the sale of capital assets. It comprises two types—short-term capital gains tax and long-term capital gains tax. The long-term variety applies to gains arising from the sale of an investment after 12+ months of ownership. The latter applies to gains from the sale of an investment held for less than 12 months. With debt assets, the duration of holding should be less than three years.
Capitulation

Outside of finance, the word capitulation refers to the process of surrendering power. The term has a related but more specific meaning within the world of modern finance. Capitulation is the process of selling assets or cryptos at a significant loss. It is usually done because the investor has lost hope that the prices will bounce back. In other words, it is a surrender of one’s ownership rights in the face of volatility.
Carding

Carding is a type of credit card fraud. With carding, a stolen credit card or card information is used to top up prepaid cards or buy gift cards. The fraudster purchases store-branded gift cards, which can then be sold to others or used to purchase goods that can be sold for cash. The thieves involved in carding are called “carders.”
Carried Interest

Carried interest refers to the incentive compensation given to a fund’s general partner. It is a share of profits from a private equity, venture capital, or hedge fund. The general partners are only paid this amount if a fund achieves the minimum returns specified.
Cascading Liquidation

A cascading liquidation is when liquidations pile on top of each other, resulting in a sudden price change. Such liquidations usually occur in an over-heated or over-leveraged market. They can create huge profits or lead to large losses.
Cash

Cash is the most liquid form of money. In a limited sense, the term cash usually refers to the physical coins and banknotes that we use in everyday life. However, in some contexts, the term may also include bank accounts or marketable securities such as government bonds.
Cash Flow

Cash flow is the net amount of cash and equivalents of it being transferred in and out of an account. Whatever cash is received constitutes the inflows, while outflows are made up of all that is spent. So the cash flow represents the movement of money. The cash flow can be analyzed via the debt service coverage ratio, unlevered cash flow, and free cash flow. It is represented in a cash flow statement.
Cash Flow Statement

A cash flow statement is a representation of the cash flow of a company as a result of its ongoing operations and external investment sources. The cash flow statement consists of three sections. The first includes cash flows from operations, the second represents cash flows arising from investment gains and losses, and the final section offers an overview of cash used from debt and equity.
Cash Value Life Insurance

Cash value life insurance is a type of permanent life insurance—meaning it lasts for the lifetime of the holder. It comes with a cash value component, which one may use for anything from sourcing loans or cash to policy premium payments. Although more expensive than term life insurance, they have the advantage of not expiring after a specified time period.
Cash-and-Carry Arbitrage

Cash-and-carry arbitrage is a market-neutral investment strategy. The strategy seeks to make riskless profit from pricing inefficiencies in the cash (or spot) and futures markets. It does this by combining the purchase of a long position in an asset and the sale of a position in a futures contract for the same.
Casper

Ethereum’s mechanism for upgrading blocks to “finalized” status is known as Casper. It is a protocol that combines Proof of Work and Proof of Stake. The Proof of Stake part is a new consensus mechanism called “Casper the Friendly Finality Gadget” (FFG). Casper is, thus, what allows new entrants into the network to sync with the canonical chain.
CBDCs

CBDCs are a digital form of a country’s fiat currency. They are pegged to the value of the national currency concerned. Considered to be legal tender, CBDCs can freely be exchanged for goods and services. They could be used to extend services to the unbanked demographic, facilitate cross-border transactions, reduce environmental damage, and increase transparency.
CeDeFi

CeDeFi is short for Centralized Decentralized Finance. It is a form of modern finance which combines traditional centralized financial services with decentralized applications. With CeDeFi, companies can explore modern financial products while maintaining conventional financial regulatory standards. Meanwhile, traders can use it to search and filter the best opportunities using liquidity depth, lower transaction fees and withdrawal fees, and higher asset availability, among other benefits.
Centralization

Centralization in organizational structure is when a single node, or a small number of them, controls the whole network. In other words, there is a clear chain of command. So a top-down company controlled by a single CEO or a small number of senior managers is one example. Another example is a money transfer app that fully controls all transaction processing.
Certificate of Deposit (CD)

A certificate of deposit (CD) is a type of financial product issued by banks and other financial institutions. With a CD, customers making a substantial deposit earn a percentage-based interest rate premium. And, of course, the deposit may be put to use by the institution. The terms and conditions associated with a CD can vary from one institution to another.
Cess

A cess is a type of tax. In India, it is in addition to other existing taxes. The government usually imposes cess for a specific purpose. The Consolidated Fund of India (CFI) stores revenue from taxes such as income tax, and the government can use it for any purpose it sees fit. But the cess funds are only used for the specified purpose after due appropriation from the Parliament.
Chain Reorganization

Chain reorganization is a process in blockchain technology that allows node operators to replace blocks and adopt new ones. It involves a node deactivating blocks in its old longest chain to add the newest blocks, which are the building elements of the new longest chain. The aim is usually to create new, longer chains of data. It usually occurs in busier blockchains.
Chain Split

Chain splits are another term used to describe cryptocurrency forks. They essentially involve the bifurcation of the original crypto into two or more independent projects. When the codebase of a token is copied by an older cryptocurrency, a split is said to have occurred. The further development of the new crypto is independent of the parent coin.
Change

The commonplace use of the word change, as we know, means money returned after paying for something that costs less than the amount given. The term is also a concept relevant to cryptocurrencies that use the unspent transaction outputs (UTXO) model. It refers to the number of coins returned to a user after they use their unspent outputs to initiate a transaction.
Change Address

In the world of crypto, a change address is where the change from a transaction is temporarily stored. Later, it is returned to the sending wallet. Change addresses are what allow for fair interactions between wallets. All users can view their change address and how much of the funds sent have gone through it.
Chapter 11 Bankruptcy

Chapter 11 bankruptcy, also known as reorganization bankruptcy, is when debtors reorganize their business affairs, debts, and assets to stay in business. It is a way of restructuring the debtor’s obligations. To file for Chapter 11 bankruptcy, the reorganization plan must be in the best interest of the creditors. The business cannot make some decisions, such as selling key assets, without the court’s permission.
Chargeback

A chargeback is, essentially, a means of protecting consumer rights. Simply put, it involves the return of money to the payer. The repayment is most commonly made via a credit or debit card. They are usually initiated by consumers after fraudulent or erroneous charges.
ChatGPT

ChatGPT is an artificial intelligence (AI) model that engages in dialogue. In other words, it is a chatbot like the ones companies use on their customer service websites. The chatbot was released in November 2022 by the AI research company OpenAI. ChatGPT is taking the internet by storm ever since its launch. The “GPT” in ChatGPT stands for “Generative Pre-training Transformer.” That’s a reference to how ChatGPT processes language.
Chunk

Chunk refers to a fraction of a block produced by sharding in the NEAR protocol. A group of validators is responsible for managing each chunk. They provide the storage and computational resources necessary for the processing of transactions related to that chunk.
Cipher

An algorithm used to encrypt and decrypt information is known as a cipher. It is a fundamental concept in cryptography—the study and practice of techniques that secure communication. Ciphers help people to exchange information in secret without third parties being able to violate their privacy. They do this by converting plaintext (the original message from a sender) into ciphertext, a coded text that is safe to send.
Ciphertext

Ciphertext is the product of encryption. When plaintext (the original message from a sender) is encrypted via an algorithm, the result is ciphertext. This ciphertext is safe to transfer to the receiver, who can decrypt it later. It thus plays a key role in securing communication via cryptography.
Circulating Supply

Circulating supply is an estimate of the total number of coins in circulation in the market. The number keeps varying because of the ongoing mining and burning of coins. Because the circulating supply does not include coins locked up in escrow, it is not the same as the total supply.
Client

The term client refers to software that can access and process blockchain transactions on a computer. In the context of crypto, software clients help users connect to and interact with the blockchain network. A crypto wallet also uses this type of software.
Close

The term close refers to the closing price of an asset. It helps to track the performance of an asset. The closing price is one of four major data points used in day trading in the stock, crypto, and other markets. The other three are opening, high, and low prices. Together, all four are known as “OHLC.”
Cloud Mining

Mining crypto by renting computing power online is called cloud mining. A miner using a cloud doesn’t need to install or purchase any personal hardware. They could simply subscribe to a cloud mining firm. Such firms enable users to verify transactions remotely for a fee. Clouds make mining more accessible and reduce long-term maintenance costs.
Co-Signer

A co-signer is an entity or person who has partial control and access over a cryptocurrency wallet. The type of wallet involved in order to facilitate a co-signatory’s operations is known as a multi-sig wallet. The co-signer must own a set of unique keys to gain access to or transact with the wallet funds.
Coin

In the context of blockchains, the term “coin” is used to refer to a cryptocurrency. Some argue that only cryptos supported by their own blockchain are called coins. Bitcoin, for instance. Cryptos that don’t have their own blockchain are called “tokens,” in this view.
Coin Mixer

Coin mixers are software companies that charge a fee to enable two parties to remain anonymous while transacting with each other. By mixing up cryptos sent from different addresses and redistributing them before passing them to the receivers, they make transactions untraceable. The service can help protect investors, but it can also end up propagating illegal activities.
Cold Wallet

A cold wallet is what you use to store crypto. It’s called cold because it’s not connected to the internet. This kind of wallet is very hard to hack into so it’s great for storing crypto assets. Investors with large holdings or exceptional security requirements often find them handy. They can be of different types—paper and hardware ones, for instance.
Collateral Cap

A collateral cap is a security feature that specifies a market’s maximum effective collateral for a token. It is a setting to measure and limit the ‘borrowing power’ of each asset to diversify the protocol-wide lending risk. If a market’s collateral cap is 1 million, then only that number of tokens can serve as collateral in borrowing.
Collateral Factor

The Collateral Factor is the maximum amount a user can borrow based on the assets they supply. It is represented in percentages. The Loan-To-Value ratio (LTV) is the collateral factor of traditional financial institutions in addition to DeFi lending and borrowing protocols. Usually, the more liquid or less volatile assets have higher (albeit changing) collateral factors.
Collateral Token

In the crypto space, collateral tokens act as a risk mitigation asset when borrowing other types of crypto tokens. The collateral token a borrower needs to deposit is determined by the loan platform. Some of these tokens are specifically designed to serve as collateral tokens.
Collateralization (of stablecoins)

A collateralized stablecoin is one that is backed by a valuable asset held in reserve. For instance, every coin of a stablecoin pegged to the US dollar is said to be collateralized by 1 USD held somewhere in reserve. Depending on their functionality, stablecoins may or may not be collateralized by fiat or other cryptocurrencies.
Collateralized Debt Obligation

A Collateralized Debt Obligation (CDO) is a mixture of loans and assets offered to investment firms with a lot of capital. They are usually a combination of various small loans. The smaller loans may include everything from mortgages to student loans. While rather useful for banks, they are some of the more risky investment opportunities.
Collateralized Debt Position (CDP)

A Collateralized Debt Position (CDP) is a position one assumes by locking collateral in smart contracts to create stablecoins. It is a system created by MakerDAO. The DAO’s stablecoin DAI is created through a CDP. The collateral locked in should always be at least 150% more valuable than the DAI it generated. When this condition is not met, the assets locked in the smart contract are sold.
Collateralized Mortgage Obligation (CMO)

A Collateralized Mortgage Obligation (CMO) is a bundle of numerous mortgages sold to investors as a package. It is one among many mortgage-backed securities used by banks with the aim of boosting their liquidity. While there are significant risks for the purchaser, it does offer a lot of collateral.
Command Economy

A command economy is an economy where the central government defines the level of production and prices permissible for goods and services. It usually goes with a communist political setup and is the opposite of a free market economy. Those who support this type of economy argue that only governments can ensure fair distribution.
Commercial Loan

A commercial loan is a short-term debt-based funding arrangement. The two parties it involves include a business and a financial institution such as a bank. To apply for a commercial loan, the company often needs to offer collateral. A financial statement is another common requirement for application.
Commercial Mortgage-Backed Security (CMBS)

Commercial Mortgage-Backed Securities (CMBS) are a type of fixed-income investment product. As the name suggests, they are backed by mortgages on commercial real estate properties. They are issued as bonds. The underlying loans, usually contained within trusts, act as collateral if repayment fails.
Commercial Paper

Commercial papers are unsecured, short-term debt instruments issued by corporations. Often, they are used to fund short-term liabilities. It is a common practice to issue commercial papers at a discount. They mature at face value and pay a fixed rate of interest that fluctuates with the market.
Commingling

In securities investing, the term commingling refers to the pooling of money from several different investors into one fund. Similarly, in investment management, the assets of different investors are combined into a single fund or investment vehicle. The commingled fund is then partially owned by each contributor. Commingling is used to manage institutional investment funds because it reduces trading costs and the larger pool of money provides access to a wider range of investments.
Common Stock

Common stock is a security that represents ownership in a corporation. Holders of this type of stock have voting rights, including electing the board of directors. This form of equity ownership tends to yield higher rates of return in the long run. However, in the face of liquidation, the rights of common shareholders are taken on board after bondholders and preferred shareholders.
Composable DeFi

Composable DeFi refers to the interoperability between different DeFi protocols, which binds the entire DeFi ecosystem together. Composability is a feature embedded in smart contracts that lets different components of a system combine to support new uses. The composability of smart contracts is what enables the DeFi space as a whole to assume this title.
Composable Token

A composable token is an ERC-998 token, a standard extension to any non-fungible token. Tokens are known as “composable” when they allow users to “compose” or organize assets and trade them with single ownership. So, such tokens make it possible for non-fungible tokens to own other non-fungible and fungible tokens. In other words, they can represent more than one digital asset.
Concentrated Liquidity

Liquidity Providers (LPs) can select a range along the price curve to provide liquidity. This ability of LPs is known as concentrated liquidity. Concentrating liquidity helps maximize gains while reducing the risk of asset devaluation. Concentrated liquidity is what makes LPs different from standard automated market makers.
Confirmation

In crypto, a confirmation is a measure of how many blocks have passed since the transaction was last added to a blockchain. The higher the number of confirmations, the more secure the transaction. Each merchant, as well as the exchange, has to decide how many confirmations they require for each coin. However, parties may want to wait for more blocks when it comes to larger transactions.
Consensus

In the context of crypto, a consensus is a condition that one must meet to make any decisions on a blockchain network. To achieve a consensus, all network participants must agree on the order and content of the blocks in the blockchain. Participants usually arrive at a consensus on such decentralized networks through the use of a consensus mechanism.
Consensus Mechanism

A decision about who gets to verify the next block of transactions has to be made by some of the blockchain’s most invested users on an ongoing basis, and consensus mechanisms enable the decision-making. A consensus mechanism is essentially an algorithm that helps users come to a consensus or agreement. The most popular consensus mechanism is Proof of Work (PoW), but there are other options like Proof of Stake (PoS) and Proof of History.
Consolidated Fund of India (CFI)

The government’s revenues and expenses are combined and preserved in the Consolidated Fund of India (CFI). Except for some items, this fund covers most government expenditures. Withdrawal from CFI requires the approval of the Parliament.
Consolidation

Consolidation is a period when an asset trades between two levels while the market’s next move remains unclear. In this phase, the stock, crypto, or security concerned may neither continue nor reverse a larger price trend. To identify a consolidating asset, one must look for assets that have steady support and resistance levels and are trading in a narrow range, with a low trading volume.
Consortium Blockchain

Consortium blockchains may be considered an intermediate step between public and private blockchains. It is a privately owned and operated blockchain where a consortium shares information not readily available to the public. While it lets the consortium enjoy the advantages of exchanging value and information offered by a distributed ledger, they are neither public nor permissionless. Groups of companies use such blockchains.
Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a type of index. It is an index that tracks the prices of a basket of goods and services. The aim is to gain insights into market segments. CPI is a benchmark for measuring economic developments, specifically the impact of inflation or deflation.
Contract Account

When a party signs a contract, a separate account known as a contract account is opened for the contract. It is meant to bring together all the costs concerning that particular contract. In the world of crypto, a contract account is a type of account that has crypto balance and associated code. The code execution is triggered by transactions received from other contracts.
Contract for Difference (CFD)

A contract for difference (CFD) is a type of financial instrument. It helps sellers protect themselves from price volatility. CFDs do this by specifying that the buyer is obligated to pay any price difference that occurs due to moving the asset. This applies even if administrative procedures delay the transaction, causing the actual sale to happen months later.
Coordinator

Coordinators are a type of client used in some blockchains. They are specialized clients that help nodes validate their copy of the ledger against specific transactions by creating milestones. These milestones are basically transactions recorded on the blockchain. In this way, coordinators serve as a tracking and checking system for such nodes.
Core Wallet

A core wallet is a wallet that can contain the entire blockchain instead of just a piece of it. It allows users to receive, store, and send digital money alongside the program on or with it. The application is meant for those interested in the technical aspects of blockchain networks and keen to support the community.
Corporate Charter

A corporate charter is essentially a document that has been filed with the Secretary of State or registrar. It establishes a company as a corporation. Should the state approve of the charter, the company becomes a corporation in the legal sense. Corporate charters usually spell out the major components of a company.
Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a self-regulating business model. It is meant to help companies become accountable to their stakeholders, clients, the public, and even themselves. CSR pushes companies to be conscious of their impact on all aspects of society—economic, social, and environmental. Initiatives begun from the CSR perspective also build brand image and boost employee morale.
Corporate Tax

Corporate tax is a direct tax that businesses and corporations pay on their profits. The tax is calculated on the revenue minus all expenses. The deduction includes expenses such as COGS, salaries, wages, interest payments, and depreciation.
Corporate Treasury

Corporate treasuries are essentially financial risk managers. They are in charge of a company’s cash reserves. They try to protect its value against risks arising from the nature of the business. While managing the cash reserves, they also strive to ensure that the liquidity, risk, etc. are in line with the company’s goals.
Corporation

The word “corporation” has its origins in the Latin term “corpus,” which means “body.” When used in a financial sense, it refers to the fact that the law treats the entity being referred to as a person. Like an individual, a corporation is able to own property, avail debt, sue and be sued. It is usually abbreviated as “Corp.” as in Microsoft Corp.
Correction

A correction is a pullback of an asset’s price. The price adjustment is usually to address overvaluation. While there is no hard and fast rule concerning its definition, a correction usually refers to a fall of anything over 10%. The term correction signals a return of the price after an abnormal spike.
Cost-Benefit Analysis

Cost-Benefit Analysis refers to a process that businesses use to analyze which decisions to make and which to forgo. By taking on board the costs and the benefits, business analysts using this method are able to arrive at decisions that are favorable or profitable in the long run. The analysis can also include intangible benefits and costs such as employee morale, for instance.
Credit Rating

Credit rating is a measure lending institutions use to decide whether to loan an individual or entity money. It is seen as a way of predicting how capable they are of repaying debt. The rating depends on the country that the applicant is residing in and the lending institution.
Credit Risk

Credit risk represents the possibility of a loss arising from a borrower’s failure to repay a loan. It is an internal calculation performed by lending institutions such as banks before granting credit. Credit risks are calculated based on capital, capacity to repay, lending conditions, credit history, and collateral.
Cross Margin

Cross Margin, also known as Spread Margin, is a type of margin method. It allows traders to open multiple positions using their account balance as a common pool of collateral. Cross margins make managing collateral easier as the user need not add or remove margin for each position, as any profit or loss realized from other positions can help add a margin on a losing position.
Cross-Border Trading

Cross-border trading is trading globally across international markets. This type of trading usually involves using a local currency and often against a local counterparty. Several benefits accrue to this variant of trading. Capitalizing on pricing discrepancies and arbitrage opportunities are some of them.
Cross-Chain Contract Call

Cross-chain contract calls are derivatives smart contracts that allow information, cryptos or NFTs to move freely between blockchains. This information would usually be limited to one network. In other words, cross-chain contract calls help make the interoperability of blockchains possible.
Crowdfunding

Crowdfunding is fundraising or the collection of funds from a large number of people to fund projects or businesses. This type is fundraising usually involves the use of a variety of platforms. It is a technology-enabled financial service.
Crowdloan

Crowdloan refers to a practice of staking DOT or KSM tokens to raise funds for new projects on the Polkadot and Kusama networks, respectively. So, essentially, crowdloans incentivize the development of parachains on these networks. They are an alternative to the ICO model, in which the success of fundraising is uncertain.
Crypto Burning

Crypto burning is when tokens are put out of circulation, thus reducing supply. The tokens are essentially made unrecoverable. This is done by sending them to a dead wallet with an unknown private key. Stablecoins are regularly burnt to maintain their pegs. Other coins are burnt to reduce supply, pump prices, or transfer value from staking pools to individual holders.
Crypto Dust

Crypto dust is that tiny amount of a coin that has to be left unspent after a transaction because it’s too small for another transaction. Processing a crypto dust transaction is impossible. For instance, the 0.00000012 BTC left over after you sell all your holdings is dust.
Crypto Exchange

A platform used to buy or sell cryptocurrencies is called a crypto exchange. Users can either buy crypto for fiat or exchange one digital asset for another. Exchanges allow users to trade crypto futures, engage in margin trading, and buy cryptocurrencies on the spot market. Most of them have hot wallets to allow the storage of such holdings.
Crypto Wallet

A crypto wallet stores addresses and keys or passwords that can be used to retrieve assets on the blockchain. It can also be used to send or receive crypto payments, store NFTs, and participate in smart contracts. There are several types—like cold, paper, or hardware wallets—available. Each type varies according to the mode of use, security level, and accessibility advantages.
Crypto Winter

Crypto Winter is a term that captures market conditions when crypto prices drop steadily, without hope of recovery, for over a year. It generally occurs due to sharp selling pressure. A sustained crypto winter could result in a crypto “ice age,” where prices stay low for years and long-term investors lose interest.
Cryptocurrency

Blockchain-based digital assets are called “cryptocurrencies.” Cryptos have no physical form. Records of their transactions are preserved on the blockchain’s ledger, which is accessible to everyone. That makes them relatively tamper-proof and eliminates third-party authentication. It is more cost-effective than traditional banking. Top coins include Bitcoin, Ethereum, and Tether.
Cryptocurrency Pair

Cryptocurrency pairs are the pairs of tokens that exchanges use in order to facilitate trading between them. It is basically meant to help users compare the prices of these tokens. In order to exchange one token for another, a trader will look for an exchange that trading pair.
Cryptography

Cryptography is the study and practice of techniques that secure communication and information. As a practice that finds application in the world of cryptocurrencies, it involves the use of protocols that obstruct unwanted parties from accessing the information. These techniques are what enable crypto transactions to remain safe while being anonymous and trustless.
Cryptojacking

Cryptojacking is the hijacking of someone’s computational resources in order to mine cryptocurrencies. Cryptojackers usually take one of two popular routes. In the first variety, a “trojan attack” begins when a link or attachment is used to install a hijacking program on a computer without the owner’s knowledge or consent. With “drive-by cryptojacking,” malicious JavaScript code from web pages owned or compromised by hackers does the job.
Currency Crisis

A currency crisis is a financial emergency in which a country’s fiat currency loses value. It usually involves concerns over whether a country’s central bank has adequate foreign exchange reserves to ensure the currency’s stability. As a result, investors become cautious of holding on to or investing in the country’s assets.
Current Account Deficit

Current Account Deficit is a measure of the country’s trade. It is the amount by which the annual value of its imports is higher than its exports. A deficit of this kind does suggest that a country is spending beyond its means, but that’s not necessarily disadvantageous. Developed countries, for example, tend to run deficits.
Curve

In the context of crypto, Curve refers to a software program that uses multiple cryptos to operate an Automated Market Maker (AMM) service focused on stablecoins. The Curve platform offers a very efficient way of exchanging tokens while maintaining low fees and slippage. It does this by limiting itself to liquidity pools made up of assets that similarly behaving assets.
Custodial Wallet

A custodial wallet is a wallet where the service provider retains custody of the private key. The provider is, therefore, fully responsible for the safekeeping of user funds. Such wallets are almost always web-based and are usually offered by centralized exchanges.
Customs Duty

Customs duty is levied on goods exported or imported into the country. It is an indirect tax. The final consumer of the goods has to shoulder this type of tax. In India, customs duty is levied under the Customs Act of 1962.
Cut Motion

In the Indian context, cut motion is a special power vested in members of the Lok Sabha. While the Demand for Grants is made for each ministry during the Budget, if the Parliament feels any government expenditure is more than required, any member of parliament can introduce a cut motion. A cut motion will effectively oppose the change in the expenditure figure. It is a no-confidence vote of sorts.
Cyclical Stock

A cyclical stock is one where the price fluctuates due to systemic or macroeconomic changes in the overall economy. Such stocks tend to follow the cycles of an economy–from expansion to recession and recovery. Most of them concern companies selling consumer discretionary items, which people buy more when the economy is flourishing but less during a recession. Starbucks is an example of this type of stock.

D

DAO

Decentralized Autonomous Organizations (DAOs) are online collectives created and run by rules encoded as a computer program. They are managed by the members, so no unauthorized individual or group can call the shots. Proposals are submitted to the group, and resolutions are put to vote. DAOs are built on trust in the immutable code, rather than individuals.
dApps

dApps stands for decentralized applications. These apps generally look and feel just like regular apps but are made on a permissionless network using smart contracts. They are private, cannot be completely controlled by a central authority, and have zero downtime. Most dApps are created on the Ethereum blockchain.
Dark Web

The dark web is a subsection of the deep web—the part of the internet that search engines cannot help find because they do not index them. Users need access to specific software, networks, authorizations, and configurations in order to access this part of the web. Due to its layered encryption, both visitors and hosts of web pages cannot access personal information about each other.
Dead Cat Bounce

Dead Cat Bounce is the name of a price chart pattern in technical analysis. It refers to a temporary jump in prices after a prolonged downtrend. A key point to remember is that the prices drop and continue the former trajectory after the brief jump. The term originated from the saying that “even a dead cat will bounce if dropped at a certain height.”
Death Cross

A death cross is a technical trading indicator that hints at the onset of a big sell-off. When a faster moving average falls below a slower one, the crypto is said to be at a death cross. Traders use it to identify the right time to exit the market before the bearish trend sets in.
Decentralization

Decentralization is a defining characteristic of blockchain technology. It refers to the fact that blockchains take away power from individuals, centralized groups, or authorities, and transfers it to a systematic digital network that’s difficult to manipulate. Decentralization creates a trustless environment, which is the foundation on which cryptos rest.
Decentralized Autonomous Initial Coin Offering (DAICO)

DAICO combines the principles of DAOs and ICOs. The aim is to make ICOs more secure and accountable. First proposed by Ethereum’s most well-known founder, Vitalik Buterin, DAICOs aim to send all ICO revenues to a DAO and let investors govern it until the target is reached. Instead of releasing funds at once, investors can vote on implementing a per-second rate.
Decentralized Exchange (DEX)

A decentralized crypto exchange (DEX) is one where users can trade one crypto token with another at a mutually decided rate. DEXs rely on P2P technologies like DAOs and smart contracts. Uniswap, the largest DEX so far, was created on Ethereum in 2018. Transaction volumes on it now exceed $1 billion per day.
Decentralized Marketplace

A decentralized marketplace is a P2P marketplace where buyers and sellers can interact without a third party. Decentralized marketplaces offer lower transaction costs and better security, trust, privacy, and transaction integrity to both parties. These marketplaces are the cornerstone of crypto applications like NFTs and DeFi.
Decentralized Social Media

Social media platforms that run on independent servers, instead of business-owned centralized servers, are called decentralized social media. Mastodon, for instance, is the decentralized version of Twitter. Such platforms protect freedom of speech and privacy. They give users the option of going as public or private as they wish.
Deep Web

The deep web is the part of the internet that search engines do not index and, therefore, cannot find. Some mistakenly use the term to refer to the dark web, which is only one part of the deep web. The concept of the “deep web” became popular after the Silk Road trial in 2015.
DeFi

An acronym for “Decentralized Finance,” DeFi is an alternative to traditional banking services like borrowing, lending, buying insurance, or trading. It relies on blockchain technology, so it does not need to get third parties involved. DeFi uses cryptos as the backbone for transactions. Overall, it’s faster, cheaper, and more efficient than banks using fiat.
DeFi Degens

The term “DeFi degens” is short for Decentralized Finance degenerates. It refers to a subculture associated with a disreputable part of DeFi. These “degens” of the DeFi world usually form Telegram and Discord groups, where they act as pump-and-dump groups.
Deflationary Crypto

Cryptos that increase, rather than decrease, investors’ long-term purchasing power are called deflationary. There is usually a supply cap on the number of tokens—that’s the maximum number in circulation—for any given crypto. Once this number is reached, supply stops, demand will presumably spike, and so will prices. When this happens, they are believed to “turn deflationary” in the long term. Polygon and Ripple are other deflationary coins.
Delisting

Delisting is the process by which shares of a publicly traded firm are removed from a stock exchange. Reasons could vary from non-compliance with the exchange’s norms, including not maintaining share prices above a stipulated level. Delisting can be voluntary or involuntary, as a company can choose to delist if it decides to go private. A delisting notice is important as it impacts the share price of the firm in question immediately.
Descending Triangle

A descending triangle is a chart pattern in technical analysis. It indicates whether demand for an asset or commodity is weakening. Traders use it to decide whether to take a short position. Trend lines that converge at unequal slopes are either rising wedges, falling wedges, or ascending or descending triangles. When a trend line that connects a series of low highs and another trend line connecting a bunch of lows, a descending triangle pattern forms.
Developer Activity

Developer activity is a metric that measures the project strength of a blockchain protocol. It reflects the fact that blockchain developers are responsible for designing, maintaining, building smart contracts, and testing any new beta features of the protocol. High developer activity indicates a commitment to creating a good and sustainable product.
Diamond Hands

Diamond Hands is a slang term for traders who manage to hold on to their assets in the face of market volatility and downturns. Such traders usually need to either have the conviction or the means to motivate them to keep holding despite adverse market conditions. The term contrasts “weak hands”—a term for those who do not have these things.
Difficulty Bomb

The term “difficulty bomb” refers to the sudden, but planned, increase in the Ethereum blockchain network’s mining difficulty level after its transition to the Proof of Stake (PoS) mechanism of verifying transactions. The increase in difficulty means that miners need to spend more time and computational power on mining. The difficulty bomb disincentivizes mining and promotes staking.
Digital Gold

Digital Gold is a method of trading in the yellow metal without having to physically hold, store, or ship it. Investors, however, have the option of asking for physical delivery of their holdings. Digital gold takes purity and legitimacy-related uncertainties out of the equation and brings in highly liquid trading/investing on exchanges across the globe.
Digital Signature

Cryptography-based digital signatures are security functions that bind a person or an entity to digital data. They act as a signature for messages on the blockchain. Such signatures use algorithms to verify the authenticity of digital messages and prevent impersonation.
Direct Tax

Direct tax is the tax due by individuals or businesses directly to the government. Income tax, corporation tax, and property tax are all examples of direct taxes. They are unlike indirect taxes such as sales tax, which applies to the buyer, but the seller has to pay them.
Disinvestment

Disinvestment is when an organization or government liquidates or sells off shares in a company or subsidiary. Governments often sell off their stakes in a public sector company to raise funds to cover expenses. The Indian government’s disinvestment in the 1990s led to what we now know as liberalization.
Distributed Ledger

A distributed ledger is a record shared and maintained by a network of computers across the globe. A copy of all transactions is stored on each of the computers involved and can be viewed by all of the participants of the network. Any changes made to the ledger are reflected in the copies of all participants. Blockchain, which supports crypto, is a type of distributed ledger.
Dividend

A dividend payment is a portion of a company’s earnings given to shareholders. The board of directors takes the decision to distribute dividends. Dividends can be in cash or stock. The dividend may be of a quarterly, annual, or semi-annual variety. A special dividend, on the other hand, is a non-recurring payout. Companies that pay steady or increased dividends over time are seen as fundamentally strong.
Dividend Yield

The dividend yield is a financial ratio that shows how much a company pays out in yearly dividends compared to its stock price. That is, it is dividend/price. The ratio is usually expressed as a percentage. Mature companies are the most likely to pay dividends. However, the dividend yield of a stock may be elevated as a result of a declining stock price.
Double Spending

Double spending is one of the risks associated with crypto. As the name suggests, it refers to the same crypto being spent twice or more. Although very unlikely and rare, transactional data on a blockchain can be altered when some specific conditions are met. This is what opens up the possibility of double spending.
Dusting Attack

A dusting attack refers to a kind of malicious activity. In this type of attack, scammers send tiny amounts of crypto to unknown addresses in order to invade the privacy of the blockchain. The attackers track the transactional activity of destination wallets to pin the original entity behind an anonymous wallet address.
DYOR

“Do Your Own Research” is a phrase that is abbreviated as DYOR. The internet is full of misinformation and self-fulfilling prophecies. To protect people, they need to be nudged to do their own research. In this context, DYOR has become the go-to catchphrase of the crypto community. DYOR serves as a gentle reminder that every bit of information should be consumed with a pinch of salt and caution.

E

Economic Survey of India

The Economic Survey of India is the Finance Ministry’s flagship annual document. The ministry tables it in both houses of the parliament one day ahead of the Union Budget. The document provides a detailed account of the various sectors of the country’s economy in recent years. It also offers a detailed outline of the ministry’s plans for the coming year. The Survey is prepared under the guidance of the Chief Economic Adviser of India.
Encryption

Encryption refers to the process of concealing information by altering it to look like a random bunch of numbers or digits. Only the intended recipient can decode it, through a process called decryption, to reveal the true message. Encryption is essential for security on the internet. It is frequently used to secure monetary transactions online.
Entry Point

The entry point is the price at which an investor buys or sells a security. To initiate a trade entry, traders either place a buy order for a long position or a sell order for a short position. Determining a good entry point is a key step in successful trading. So traders often use trendlines, moving averages, and indicators to determine the best entries. It can be contrasted with an exit point.
Equity

Equity is the value of a company’s shares or the value of a property after the payment of all charges and debts. A stockholder’s equity in a corporation is the value of the shares the individual holds. Likewise, a homeowner’s equity is the difference between the actual value of the house and the proportion of the unpaid mortgage. In the event of a company’s liquidation, these are the funds that return to shareholders after dissolving all assets and paying off all debts.
ERC-20

ERC-20 is a category of Ethereum-based tokens. This kind of token emerged as the technical standard for fungible tokens on the blockchain. Unlike NFTs, fungible tokens are interchangeable. ERC-20 facilitates the exchange of different smart contract-enabled tokens. Chainlink, Tether, and Basic Attention Token are popular ERC-20 tokens.
Excise Duty

Excise duty is an indirect tax that applies to the producers of India. The Central Government imposes it on the domestic manufacture, sale, and licensing certain goods. Today, excise duty applies only to petroleum and liquor. It is the opposite of customs duty.
Exit Point

The exit point is the price at which traders close a position. Usually, a trader sells their holding to exit the trade or, in the case of shorting, may decide to close the position. The trader may or may not determine the exit point in advance. If the trader decides on the exit point early, they may close the position via profit targets (limit orders), stop losses (stop orders), and/or market orders.

F

Federal Open Market Committee (FOMC)

The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System (FRS). The committee determines the direction of monetary policy in the US by directing open market operations. It consists of 12 members. Seven members are from the Board of Governors, and five are Federal Reserve Bank presidents.
Fiat Currency

Currencies issued by national governments and central banks are called fiat currencies. Each nation has its own. For instance, India’s Rupee or USA’s Dollar. Fiat currencies are not collateralized by assets like gold. Their value depends on the demand and supply of cash in the national economy. Overprinting them causes inflation in the nation and a drop in their long-term purchasing power.
Finance Bill

A finance bill is a money bill. In India, it is defined in Article 110 of the Constitution. If the Centre proposes to levy a new tax and amends or continues the existing tax structure, the government has to send a proposal to the Parliament for approval. This proposal is in the form of a Finance Bill. It can only be presented to and approved by the Lok Sabha.
Fiscal

Fiscal is an adjective that means connected with government or public money, especially taxes. For example, the Joe Biden administration in the US rolled out a massive fiscal stimulus program to rejuvenate the economy from pandemic-related distress.
Fiscal Deficit

The fiscal deficit is money a government spends in excess of its income. A deficit of this kind occurs when the government’s total expenditure exceeds its revenue—excluding borrowings. To put it another way, fiscal basically means money, and the meaning of deficit is scarcity. So a fiscal deficit is essentially the amount of money that needs to be borrowed to cover expenses.
Fiscal Policy

A fiscal policy is a government policy meant to help with financial regulation. It involves the use of government spending and tax policies as tools. The aim is usually to accomplish specific economic goals and drive the economy’s growth.
Fiscal Year

A fiscal year is another name for a financial year. It refers to a one-year time period that governments use for budgeting, accounting, and financial reporting. The fiscal year in India begins on the 1st of April and ends on the 31st of March in the following year. Taxes apply and reports often come out at the end of a fiscal year.
Flippening

Flippening is a term that refers to a hypothetical situation involving the two largest cryptos in the market—Bitcoin (BTC) and Ethereum (ETH). When Ethereum fans hope that the Flippening will occur, they are hoping that ETH will surpass BTC in terms of market cap. The term was first coined in 2017 when ETH was on the verge of “flipping” BTC.
FOMO

FOMO is the acronym for Fear Of Missing Out. It is the anxiety people feel when they think that other people might be better placed than them or could be having fun without them. Social media both creates and spurs FOMO. That’s why the term is most commonly used in relation to its influence. In trading, one may be said to experience FOMO when prices rise and other people begin to mint profits.
Forking

Forking refers to the splitting of a blockchain after the community makes a major change in its protocol with the aim of following a different set of rules. While the new chain heads in a different direction, it shares the same history as the original. Forks usually open the doors to innovation and better functionality and help address security risks.
FT Wilshire 5000 Index (FTW5000)

Like the Bloomberg Aggregate Bond Index, the FT Wilshire 5000 Index (FTW5000) is a broad-based index. But unlike the former, which focuses on the bond market, this market capitalization-weighted index attempts to capture the whole investible market in the US. Until June 2021, FTW5000 was called the Wilshire 5000 Total Market Index (TMWX). The FT Wilshire 5000 Index once had over 7,500 stocks but currently has much fewer.
FUD

FUD is short for Fear, Uncertainty, and Doubt. It’s commonly used in the investment sphere to refer to the negative emotions one may experience in the face of unwelcome price movements. For example, one may say that FUD is the primary cause of the crash in crypto prices. FUD’s presence usually drives investors away.

G

GameFi

GameFi is an amalgamation of gaming and Decentralized Finance (DeFi). It refers to play-to-earn blockchain games (games that offer economic incentives to players). This type of ecosystem uses cryptos, NFTs, and blockchain technology to create a virtual gaming environment. Axie Infinity and Star Atlas are popular GameFi applications.
Gas Fees

Gas fees are the small crypto fees charged for a transaction or in order to enable the operation of a contract on Ethereum. The fees, usually paid in small fractions of ETH, are used to maintain the Ethereum Virtual Machine to keep smart contracts running on the back end. They are determined by miner demand and supply and are therefore dynamic.
Genesis Block

Like the first chapter in the Bible, this block is what leads to everything else that comes afterward. Also called Block 0, the genesis block is the very first block of a blockchain. Since all blocks on the blockchain refer to the preceding one, every block can be traced back to this ancestor.
Golden Cross Pattern

A golden cross is a chart pattern technical analysis. When this pattern occurs, it means that a security’s short-term moving average is crossing above a long-term moving average or resistance level. It indicates that the bulls are gaining the upper hand in the market.
Goods and Services Tax (GST)

The Goods and Services Tax or GST has been levied on most goods and services in India since 2017. It is a type of indirect tax. So the consumer pays the tax, but the amount is remitted to the government by the business establishment.
Governance

In crypto-speak, governance refers to the process of managing and implementing community-driven proposals on blockchain protocols. Governance is done through voting. The type of governance determines the rules followed in such proposals. Developers can change or manipulate governance codes with the approval of the community.
Gross Domestic Product (GDP)

A country’s Gross Domestic Product, or GDP, is a metric that measures a nation’s economic health and success. It refers to the total market value of goods and services generated in a nation during a specific time frame—usually a year. GDP is calculated by using expenditures, production, or incomes. It can also be adjusted for inflation and population.
Growth Stock

Growth stock refers to the shares of a company whose sales and earnings are likely to grow faster than the market average. They get their name from the fact that investors pay a high price for these stocks based on the expectation of growth. Such stocks usually do not offer dividends because the issuing companies tend to reinvest the earnings to accelerate short-term growth.
Gwei

Gwei is a very small denomination of Ether (ETH), the Ethereum network’s native token. The term is a portmanteau of the words “giga” and “wei.” Wei is the smallest denomination of ETH, like paisa is in relation to the Indian rupee. A Gwei, therefore, refers to a billionth of one ETH. So, a billion GWEI make up a single ETH. The unit is used to specify gas fees on Ethereum.

H

Halwa Ceremony

The Halwa Ceremony is a traditional pre-budget event in India. It formally kicks off the printing of various budget documents, marking the completion of the Budget-making process. The ceremony involves the serving of halwa to the Finance Minister and other officials. Among other things, it is meant to recognize the efforts put in by each staff member to participate in the budget-making process.
Hard Cap

In the context of an ICO, the term “hard cap” refers to the maximum number of tokens that the developers of the crypto project are willing to put up for sale. But many also use this term to mean the maximum supply of a coin. That is the number of tokens a crypto protocol can issue.
Hard Fork

A hard fork is a kind of split in the blockchain which entails such major changes that the new one isn’t compatible with earlier blocks anymore. So hard forks create two blockchains, and the new one is considered entirely separate from the original. Bitcoin Cash and Bitcoin Gold were formed when Bitcoin got hard forked in 2017.
Hard Peg

A hard peg is an exchange rate policy that involves fixing the rate of one currency against another. When one currency’s value is pegged to another, it means that its price will fluctuate in the same ratio as the other. Currencies often start out with a fixed exchange rate. But when a government no longer wants to continue maintaining the peg, market conditions are allowed to dictate terms.
Hard Spoon

A hard spoon is a type of blockchain fork. It occurs when a new blockchain network incorporates the user balance and token structure of the original network. The new network, of course, comes with several new features, but it still allows existing users to participate. They differ from hard forks, in that they are more amicable than contentious.
Hash

A hash is a mathematical function that transforms data into an encrypted output of fixed length—usually a number. The length of the pre-encryption data does not matter. In blockchain technology, hashes help to encrypt transactional data. The hash is what makes the data easily storable and the blockchain harder to hack. The hash developed is based on the information from the block header.
Hash Rate

Hash Rate is a measure of the total computational power being used by a Proof-of-Work cryptocurrency to process transactions. It can also refer to the computational potential of a miner’s computer—the determining factor behind the time taken to mine a block. More computing power translates into a higher hash rate, which means more efficiency.
HFSP

This fun term is short for “Have Fun Staying Poor.” It could be used to nudge someone to reconsider their decision about buying an asset. For example, if someone tells you that they are thinking of buying X and you know that X is no good, you could quip, “HFSP, dude.” The term can also be used as a retort if someone baselessly keeps questioning your investment decisions.
HODL

Hold On for Dear Life (HODL) is a popular investing strategy used by firm crypto believers. It involves not selling crypto, even if it could present unrealized losses in the short run. It is meant to foster long-term investing. HODLers often believe that crypto will eventually replace government fiat, and the value of coins will skyrocket.
Hot Wallet

A hot wallet is a crypto wallet that’s always connected to the internet. Widely used across crypto exchanges, this kind of is easy to access and suitable for active traders. Hot wallets (including ours) come with direct access to the crypto market, and that makes for seamless investing. Although they are difficult to hack, given their modern security features, they are still vulnerable.
Household Income

Household income refers to the sum of all the incomes in a household. It could include salary, wages, investment gains, and post-retirement income. Calculating this income includes money flowing in, even if the isn’t used to support the household. Along with family and per capita income, it is one of three types of measures of wealth.

I

Immutability

Immutability is a quality we attribute to blockchains. Something is said to be immutable if it is unchanging. Since a copy of the record of transactions is stored on each computer connected to the blockchain network, the history of transactions on it cannot be tampered with or altered. Not without leaving a trace, at least. In that sense, blockchains are immutable and pretty safe.
Indirect Tax

Indirect taxes are taxes that apply to goods and services. The final consumer at the point of sale has to pay the tax. One entity in the supply chain, such as a retailer, collects and passes it on to the government. GST, customs duty, and excise duty are some examples of indirect taxes.
Inflationary Token

Inflationary tokens are tokens that do not have a maximum supply cap. This means that, in the long run, as more and more of these tokens come into circulation through mining or staking, the number of these coins in circulation could keep rising. As a result, their prices could drop. In that sense, they could turn inflationary. That’s how they get their name. DOGE is an example.
Initial Coin Offering (ICO)

The crypto equivalent of an Initial Public Offering is an ICO. Companies can sell tokens to raise funds, or to distribute stakes in a new coin project. ICOs are currently unregulated, and investors are expected to have an advanced understanding of markets and wallets before participating.
Initial Exchange Offerings (IEOs)

Initial Exchange Offerings (IEOs) are a lot like Initial Coin Offerings. Both types of offerings are, however, made to raise money for the token’s native project. Except with IEOs, the token for the new project is put on sale on an exchange instead of the project’s own website. Users may feel safer purchasing such offerings on an exchange as crypto is an unregulated asset.
Initial Public Offering

A company’s debut in stock market, when its shares become publicly available for trade. Firms usually come out with IPOs to raise equity capital to fund their business expansion plans. IPOs also provide an opportunity for the company’s early private investors to exit their positions at a premium to their initial investment.
Interoperability

Interoperability is the ability to see, share, and access information across different blockchains. It helps projects become easier and more transparent while encouraging development. A project’s scalability is thus enhanced through interoperability. Polygon is a popular interoperability project on Ethereum.
IRA Rollover

An IRA rollover is a transfer of funds into an Individual Retirement Account (IRA) while maintaining the tax-deferred status of the assets. The transfer is usually from the sponsored retirement account of a former employer. Occasionally, this type of rollover can also be an IRA-to-IRA transfer. If you decide to implement the rollover yourself, in an indirect rollover, make sure you transfer them to the new IRA within 60 days to avoid taxes and penalties.
Isolated Margin Mode

The isolated margin mode is a feature that allows users to isolate the margin that their position uses. In doing this, it enables them to limit their potential liability to that initial margin set. It helps traders take a speculative position where the possibility of the speculation being wrong has not been ruled out.

J

Jager

The smallest unit of a BNB token is called a jager. Since cryptos like BNB are digital assets created from lines of code, they can be divided into smaller parts. A jager is equivalent to 0.00000001 BNB.
Joy Of Missing Out (JOMO)

JOMO is a term used to advocate for contentment despite how common the Fear Of Missing Out (FOMO) is in the market. Some no-coiners use it to express their lack of faith in crypto. JOMO is also used in the investing sphere to urge people to hold tight when markets are volatile. Because sometimes, not being opportunistic also pays.

K

Keylogger

A keylogger is short for keystroke logging software. It is a type of spying tool. Hackers use it to record the keystrokes of users, which helps them access sensitive information such as account numbers, passwords, and private keys. They then use the information for personal gain.
Kimchi Premium

Named after Kimchi, the well-known South Korean culinary delight, this term is used to refer to a gap in crypto prices between South Korea and the rest of the world. South Korean traders use the practice of arbitrage to benefit from the price difference. They buy the crypto in exchanges abroad and sell them back home. The phenomenon of kimchi premium made its market debut in 2016.
Klinger Oscillator

The Klinger volume oscillator is a volume-based technical indicator. By comparing volume to price and then converting the result into an oscillator, this indicator tries to predict price reversals. While mainly used to forecast long-term money flow trends, it remains sensitive to short-term changes. The volume oscillator gets its name from its creator: Stephen Klinger.
KYC

KYC is short for Know Your Customer. The KYC process is part of a financial institution’s obligations. Every such institution has to verify the identity of its users through this process. It usually involves the filling out of forms and submission of identity documents. The use of KYC is meant to curb money laundering as well as the funding of terrorist activities.

L

Lachesis

Lachesis is a consensus algorithm developed by Fantom. Based on a Directed Acyclic Graph (DAG) structure, it doesn’t use blocks for transactions. Instead, it is asynchronous (allowing participants to process commands at different times) and Byzantine Fault-Tolerant. The latter means it is functional even when up to one-third of its nodes are faulty or malicious. Lachesis improves transaction throughput while keeping finality instant.
Large Cap

Well-established projects and organizations are known as large-cap or big-cap projects or organizations. Large caps have a market capitalization of $10 billion or above. Large-cap projects are considered more transparent and authentic. In the crypto space, large-cap tokens are less volatile, attract more investors, and have higher staking rewards.
Laser Eyes

Laser eyes is a viral Twitter meme. It usually features two red laser beams emitting from the user’s eyes. Sometimes, the color may vary, though. The meme is popular among Bitcoiners who use it in their attempts to help BTC attain a new all-time high price of $100,000.
Law of Accelerating Returns

The Law of Accelerating Returns is a hypothesis postulated by American computer scientist Ray Kurzweil. According to the law, technologies tend to progress exponentially until extrapolating from the trend is impossible. It is similar to the idea of compound interest. The law of accelerating returns is a corollary to Moore’s Law.
Layer-1 Blockchain

Blockchains of the Layer-1 kind are the underlying crypto blockchains that run all on-chain transactions. That is, they can conduct, verify, and maintain a public record of transactions. Layer-1 blockchain networks can function independently, without support from any other network. Bitcoin, Ethereum, or BNB Chain are all Layer-1 networks.
Layer-2 Blockchain

Layer-2 blockchains are projects that run on Layer-1 chains. In exchange, the former provides the latter with a scaling solution—that is, a solution to help it scale up. The solutions offered by Layer-2 blockchains range can mean faster transactions, fewer fees, or the introduction of services that are not available natively. Polygon and The Lightning Network are some examples of Layer-2 projects. They are built on Ethereum and Bitcoin, respectively.
Lehman Brothers

Lehman Brothers was a global financial services firm infamous for filing the largest bankruptcy ever in 2008. Before its collapse, the business provided investment banking and management, research, trading, private banking, brokerage, and private equity. It was one of the largest investment banks in the United States. The subprime mortgage crisis was one of the key causes behind the failure of the 164-year-old firm.
Lehman Formula

The Lehman Formula, also known as the Lehman Scale Formula, is a compensation formula developed by the Lehman Brothers. It helps determine the commission on investment banking or other business brokering services. With this formula, the investment banking fee is structured on a percentage of the transaction amount, which is based on a bunch of tiered fees. The Lehman Brothers developed the formula in the 1960s while raising capital for corporate clients.
Lemons Problem

The lemons problem is a theory by economist George Akerlof. It concerns the value of investments when buyers and sellers have differential information in a used car market, but it applies to other contexts, too. The theory states that buyers don’t have the same information about the product’s value, so they may only wish to pay the average price. This leads to the flooding of poor products in the market and a market collapse.
Lender of Last Resort (LoR)

A Lender of Last Resort (LoR) is an institution—usually a country’s central bank—that offers loans to banks or other eligible institutions facing financial difficulties. They come to their rescue especially when the institutions do not have any means of borrowing funds and if their collapse could affect the economy adversely. In the United States, the Federal Reserve acts as the LoR.
Leverage

Leverage basically means debt. So a “highly leveraged” company is considered to carry more debt on its books. However, debt in itself is not bad if used diligently to expand a firm’s business. A leveraged buyout is when a company acquires another, and the bulk of the purchase price is funded with borrowed money. Debt-to-equity and debt-to-assets are two commonly used financial ratios used to assess a company’s debt situation.
Lightning Network

The Lightning Network is one of the most well-known Layer-2 blockchain networks. Bitcoin is the underlying Layer-1 chain, which means that the Lightning Network is a scaling solution for the crypto giant. It makes transactions faster on the network without compromising security and decentralization. Other Layer-2 networks that run on Bitcoin include Liquid Network and Omni Layer.
Limit Order

A limit order is an instruction given to a broker regarding buying or selling assets at specific prices. Traders usually place such orders ahead of time. The order gets executed when the market reaches the specified price. Limit orders are a way of automating trades. Traders get what they are looking for while being spared the stress of monitoring every move in the market.
Liquidity

Liquidity is the ease with which an asset can be exchanged for another or for fiat money. It is a measure of the price stability and transparency that one can expect while trading the asset. It applies to all kinds of markets—from stocks to real estate. Cash is said to be the most liquid of all assets.
Liquidity Mining

Liquidity mining is an investing strategy. It involves contributing crypto to decentralized exchanges, in exchange for incentives. Such “liquidity providers” usually get a percentage of commissions on particular coin trades. The platform uses the crypto they have borrowed to enable its other traders to buy and sell comfortably.
Liquidity Pool

Liquidity pools, essentially speaking, are a collection of crypto assets that have been pooled by users. The pooling of crypto helps create liquidity and therefore facilitates faster transactions. Liquidity pools are created by crypto exchanges. They lock up the crypto in smart contracts.
Load Factor

The load factor is a metric used in the airline industry. It is used to measure the percentage of seats that have been taken. The higher the load factor, the more the number of seats that have been taken. This metric helps investors as well as the management concerned assess an airline’s sales and profitability.
Loss Aversion

Loss aversion is a concept in behavioral economics. It refers to the idea that humans tend to perceive real or potential losses more severely than equivalent gains. In other words, the psychological effect of losing money is far greater than that of finding an equivalent amount of it. Adopting assets strategically and not letting emotions take the driving seat are some things that could help protect investors from loss aversion.
Lovelace

The term “Lovelace,” which comes from notable mathematician Ada Lovelace, is related to the Cardano ecosystem. Lovelace is the name of the smallest unit of ADA, Cardano’s native token. One Lovelace equals 0.000001 ADA.
LTV

The Loan-to-Value (LTV) is a number that financial institutions and other lenders use to assess lending risks. It is a ratio that involves the loan value and the supplied collateral. If a loan has a high LTV, it is considered risky because lesser collateral was supplied to avail the loan. As crypto prices (loan values) change frequently, smart contracts monitor the changing LTV ratio to keep track of the liquidation threshold.

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Mainnet

A mainnet is the primary chain of a fully operational blockchain project. It runs the network with its protocol. Mainnets are where all crypto transactions are verified and recorded. Each mainnet has a native token so a crypto that has one doesn’t have to use an ERC-20.
Market Cap

Market Cap is the metric used to calculate the total value of a coin, based on its circulation. It is calculated by multiplying the value of one coin by the total number of coins currently in circulation. Market cap is extremely dynamic, and changes with the circulating supply or coin price.
Market Neutral

A market-neutral strategy is a type of investment strategy. It involves an investor or an investment manager seeking to profit from increasing as well as decreasing prices in one or more markets while trying to avoid some specific form of market risk. With this type of investment selection, the investor attempts to get the long and short positions to serve as a hedge to one another.
Marlowe

Marlowe is an easy-to-use programming language. It is used to build financial contracts on the blockchain and also helps simplify how contracts are verified. Created by Input-Output Hong Kong (IOHK), Marlowe runs on Cardano for now. It can be used on other blockchains too, though.
Maximum Supply

This term refers to the maximum number of coins or tokens that will ever be created on a particular blockchain network. After a coin reaches its maximum supply, there will be no more mining or minting. The project’s source code determines the maximum supply and issuance rate at the genesis block. This is a way of protecting the coin’s value.
Memecoin

A memecoin is a type of altcoin. It has no specific real-world utility beyond humor. Such tokens take their inspiration from popular internet memes or jokes. Usually created for entertainment, they have sometimes managed to find support from a sizable community. Their communities continue to back them despite their reputation for volatility. The most popular memecoin is Dogecoin.
Mempool

Mempool is a contraction of two words: memory and pool. A blockchain network’s database used for storing unconfirmed transactions is called a mempool. Mempools act as a kind of waiting room. Once transactions are confirmed and added to the chain, they’re removed from the mempool. There is no universal pool shared by all the nodes of a network. Each node, therefore, has a mempool of its own.
Merge

The event marking Ethereum’s transition from the Proof-of-Work mechanism of verifying transactions to Proof-of-Stake (PoS) is called the Merge. It involved the Ethereum mainnet merging with a PoS blockchain called Beacon Chain. Hence the name. The transition took place in September 2022.
Merkle Tree

Merkle tree, also known as a binary hash tree, is a data structure used in computer science applications. Merkle trees serve an important role in the crypto world. They help improve the efficiency and security of the encoding of blockchain data. The data structure is made up of hashes, with each hash representing a transaction. The hashes connect in a way that resembles a tree. Hence the name.
Metaverse

The metaverse is a virtual reality space where users can interact with each other in a computer-based environment. Cryptos can be used to trade assets like NFTs in the metaverse. Some metaverses revolve around elaborate games. For example, Axie Infinity. Others, like Decentraland, are more focused on digital real estate.
Mining

New coins are brought into existence when users verify transactions on a blockchain. The process of making this possible is called mining. How it works varies with each project. Bitcoin uses a Proof-of-Work (PoW) mechanism, which involves solving complex puzzles and uses a lot of computing power. Miners are given tokens as incentives for adding new blocks to the chain.
Mining Difficulty

Mining Difficulty is a measure of the difficulty level involved in mining one block of crypto. The difficulty increases or decreases depending on the number of miners. An increase usually makes verifying a transaction harder, which means more security. Over time, the difficulty has increased enough to warrant the use of specialized ASICs (instead of GPUs) as standard equipment.
Mining Reward

A “mining reward” is the payout a crypto miner receives for verifying transactions and adding a block to a blockchain. Mining rewards are meant to keep miners motivated. The rewards given out vary from network to network. Bitcoin miners currently receive a reward of 6.25 BTC for every block mined, but the number will get halved every four years.
Mining Rig

A mining rig is essentially a combination of mining computers. The computers work together to increase their computing power and in turn hash rate. A higher hash rate means greater chances of successfully mining a new block. Rigs are built with special ASICs or GPUs.
Minting

While Proof-of-Work networks bring new coins to come into circulation through mining, Proof-of-Stake networks “mint” fresh coins. Minting is thus the process through which new coins are created while data on the network is verified. Unlike mining, minting does not need large amounts of computing power.
Monetary Policy

A monetary policy is any regulation pertaining to the supply of money in the economy. When the Federal Reserve, the US central bank, for instance, increases interest rates to make borrowing costlier and to control inflation, it is introducing a monetary policy.
Money Flow Index (MFI)

The Money Flow Index (MFI) is a technical indicator. It measures the buying or selling pressure of an asset through its price action and volume. A money flow ratio, also known as a money ratio, is calculated by taking the positive and negative money flows into account. The money ratio is then taken into consideration to arrive at the MFI, ranging from 0 to 100.
Money Market

A money market is a financial market where short-term borrowing or lending occurs. It involves trading in short-term debt investments such as commercial paper, bankers’ acceptances, certificates of deposit, and repurchase agreements. Money market investments offer safety and liquidity to investors.
Monopoly

‍Monopoly is a market structure where only one seller dominates the market for a particular good or service. Such dominant sellers get to control the price and exclude competitors. When there is a monopoly, consumers usually end up having to pay more and have fewer choices.
Moon Bag

Moon bags are coins bought and held for a long time, with the expectation that their value will appreciate. In other words, those who hold moon bags believe that their crypto will go “to the moon” (meaning rise exponentially). Such coins may be held for months, years, or even decades.
Moore’s Law

Moore’s Law states that the speed and capability of computers will increase every year, even as cost goes down. More specifically, the law states that the number of transistors in a microchip can double every two years. Meanwhile, the cost of computers is halved. The law was framed by Gordon E Moore, the co-founder of Intel.
Move-to-Earn

Move-to-earn is a way to keep earning through exercise or while simply being “on the move.” Play-to-earn games usually involve and propagate inactivity. But this model of gaming encourages users to stay active by enabling them to capitalize on their physical movement. The concept has found application in the crypto space, paving the way for apps like MetaGym, STEPN, and Dotmoovs.
Multi-Sig Wallet

A crypto wallet that operates with more than one private key or signature is called a multi-sig wallet. This kind of wallet has multiple owners or signatories, and transaction records are visible to all of them. The funds in the wallet can be transferred only when the digital signature of every owner has been recorded. Multi-sig wallets are pretty secure so long as the keys are safe. And they can be used in a wide variety of contexts.

N

Naked Shorting

Naked shorting is an illegal market practice. It involves the short selling of shares without really determining that they exist. Usually, traders must borrow a stock or determine that it can be borrowed before they sell it short. When they fail to do that, naked shorting occurs. It refers to short pressuring a stock that may be larger than the tradable shares in the market.
Native Token

A crypto asset that’s inherent or native to a particular project, protocol, or blockchain is called a native token. This type of token is typically used natively to perform a service, such as governance or other project-specific tasks, with a view to earning rewards. Native tokens are regular cryptos. One example of this kind of crypto is Ether (ETH), Ethereum’s native token.
Net Domestic Product (NDP)

Net Domestic Product (NDP) is a measure of the economic output of a nation. It is calculated on an annual basis. To calculate the net domestic product, subtract the depreciation of capital goods from the Gross Domestic Product (GDP) of the country concerned. The higher the NDP, the better the economic health of the country.
Net Income

Net income is the total sum that a company earns/loses during a particular reporting quarter or year. The figure is calculated by deducting from revenue the cost of doing business, interest, depreciation, taxes, and other expenses. It is also referred to as the “bottom line” in the profit and loss statement.
Net Interest Margin

Net interest margin is the difference between a financial firm’s net interest income, generated from credit products like loans and mortgages, and interest expenses. The outgoing interest includes the money it pays to those who hold savings accounts and certificates of deposit (CDs). The margin is expressed as a percentage and indicates the firm’s ability to make profits. Prospective investors use it to determine whether to invest in the firm.
NFTs

Non-Fungible Tokens (NFTs) could be digital art, music, or any other kind of creative work traded as a unique digital asset on a blockchain. The proof of their ownership is maintained on the blockchain. Although they can technically be reproduced, the actual ownership of the art form cannot be replicated.
NGMI

Short for “Not Gonna Make It,” NGMI is a colloquial term used in the crypto space. It refers to people who fail to make sound investment decisions or situations that involve them. So you can say “She’s such an NGMI!” or “This looks like an NGMI scenario.”
Nocoiner

In the crypto world, “nocoiner” is used to refer to people who don’t invest in crypto because they believe that it is bound to fail. Crypto skeptics, basically. But the term is also used for those who think that crypto simply is of little value. The term has a mildly derogatory connotation.
Node

A “node” is a participant in a blockchain network. When a miner adds a block to the chain, information is transmitted to all nodes in order to enforce immutability. The nodes store and disseminate the transaction history to synchronize or update the blockchain when required. They are of two types: full nodes and lightweight nodes.
Non-Compete Agreement

A non-compete agreement is a type of agreement or clause in an employment contract. It specifies that at the conclusion of the employment period, the employee may not enter into competition with the employer. They also stipulate how long the employee must refrain from working with a competitor. The employee, according to such contracts, must also keep proprietary information private during or after employment.
Non-Custodial Wallet

This kind of wallet is completely user-owned. At the time of their creation, non-custodial wallet issuers give the user a private key. Once the user receives the key, they become the sole owner of the wallet and its contents, and the issuer permanently removes the key from its server. Thereafter, the user is expected to remember the key. If used right, non-custodial wallets are extremely secure.
Nonce

The word “nonce” is an abbreviation of “number used only once.” In crypto, it means a single-use word or number. Under the Proof-of-Work system, the nonce is what the miners solve for. A nonce is thus used to verify blocks and encrypt block information. To generate a block, the nodes take the hash of the block contents, add the nonce, and then hash the block again.
NY Empire State Index

The term NY Empire State Index refers to the result of the monthly survey conducted by the Federal Reserve Bank of New York. The index surveys manufacturers in the state of New York about the rate of change for 11 indicators and “general business conditions.”

O

Off-Chain Transactions

Off-chain transactions are those that are processed outside the blockchain network. With such transactions, users purchase coupons with their crypto and then give the code to another party. The receiver redeems the coupons using a third party as a guarantor. Such transactions come with increased speed and reduced cost. Off-chain transactions are the opposite of on-chain ones.
Ommer Block

Ommer blocks are two blocks that are created and submitted at the same time, approximately, on the Ethereum network. Only one of two such blocks can find a place on the ledger. They are also known as Uncle Blocks. While the concept is similar to orphan blocks, the creators of such blocks are rewarded in the Ethereum system through transaction fees.
On-Chain Transactions

On-chain transactions are those that occur on a blockchain. Miners validate this type of transaction. A record of such transactions is preserved on the ledger, which is accessible to all of the users on the network. It can be reversed only after a majority of the network gives the go-ahead.
Open Source

The term “open source” is used in relation to some software or code. “Open source” software or code can be easily accessed, modified, or duplicated. That’s because the copyright holders or creators allow it, and the design is public.
Opening Cross

The opening cross is a method Nasdaq uses to determine the opening price for an individual share on its exchange. It reflects any changes in sentiment and price since the closing of the market on the previous day. The process involves accumulating data on the buy and sell interest among market participants for a particular security two minutes before the market opens. All investors can view this information.
Opening Price

The opening price is the price at which an asset or security is trading when exchanges open for the day. It is not the same as the previous day’s closing price. This price is an important marker for the day’s trading activity. Those interested in measuring short-term results, such as day traders, are usually keen to know the opening price.
Operating Income

Operating income is a type of accounting figure. It is the amount of profit realized from a business’s operations minus operating expenses. Operating expenses include anything from wages to depreciation. In other words, they are the naturally recurring cost of running a business. This type of income differs from net income as the latter includes these additional costs.
Ordinals

Ordinals is a project that enables the possibility of Bitcoin-based NFTs—a new use case for Bitcoin. How does it do this? By creating a system for tracking individual satoshis on the Bitcoin blockchain. Like Ethereum-based NFTs, each Ordinal is an immutable and complete digital artifact. So they cannot be tampered with and secure ownership rights. Unlike traditional NFTs, which are minted, Ordinals are inscribed. Software engineer Casey Rodarmor launched the project in January 2021.
Orphan Block

Blocks that are mined but do not get accepted in/added to the blockchain are said to be orphaned. They are orphaned in the sense that they are not connected with the preceding block. When two blocks are mined simultaneously, but one is delayed by a lag in block acceptance, one of the blocks gets rejected or orphaned. Orphan blocks are legitimate but are not part of a blockchain.
Ouroboros Praos

Ouroboros Praos is a consensus algorithm specific to Cardano. It is an improvement over Cardano’s original consensus, Ouroboros Classic. The old and the new mechanisms both enable staking, but Praos also supports scaling and seamless dApp integrations. It stands for self-sufficiency in a blockchain context.
Over The Counter (OTC)

OTC trading is the private buying or selling of crypto or securities. The transactions are conducted on broker-dealer networks, rather than centralized exchanges like the New York Stock Exchange. So, there is no public order book. That means more privacy for users. Another appealing thing about OTC trading is the fact that it has a low impact on market prices.

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P2P

A Peer-to-Peer (P2P) communication or connection is one that takes place between two or more devices without the presence of a facilitating third party. P2P is the basis for the development of cryptocurrencies, since transferring them doesn’t require banks. Peer-to-peer connections are more effective and cost-efficient.
Paid-In Capital

Paid-in capital is the amount of cash or other assets that shareholders have given the company in exchange for stock. This includes par value as well as any amount paid in excess. To find the paid-in capital, see the equity section in the shareholders’ balance sheet. It serves as a significant source of capital for projects and can be used to offset losses.
Paid-Up Capital

Paid-up capital refers to the money a company has earned by selling its stock to shareholders. The shares of the stock are always put up for sale as an initial public offering in the primary market. It includes the par value of the stock as well as excess capital.
Paper Money

Paper money is a country’s official currency printed on paper. It is circulated for use in any transactions made to acquire goods and services. Usually, the country’s central bank or treasury regulates the printing of paper money to ensure that its cash flow is in sync with the monetary policy. This form of money has to be updated regularly to ensure that counterfeiters cannot easily copy the security features.
Paper Wallet

A paper wallet is a type of cold crypto wallet. Basically, it is a private key and QR code on a piece of paper that can be used to access crypto assets. Although paper wallets are considered very secure, since no internet is involved, they come with their own drawbacks. For regular use, hardware or hot ones may be more accessible.
Par Value

Par value, also known as nominal value, refers to the face value of a bond or stock as stated in the charter of the issuing corporate. The most common denomination for bonds is $1,000, which is usually their par value. The par value determines its maturity value and the dollar value of coupon payments.
Paradox of Thrift

The paradox of thrift, or the paradox of savings, is an economic theory proposed by John Maynard Keynes. It argues that during a recessionary phase, personal savings can be detrimental to overall economic growth. The idea relies on a circular economic flow, in which spending in the present drives future spending. The theory urges states to lower interest rates in order to boost spending during a recession.
Pareto Analysis

Pareto analysis is a decision-making technique used in the world of business and welfare economics. It states that 80% of a project’s benefit or results are achieved from 20% of the work. Conversely, 80% of problems can be traced to 20% of the causes. Each problem or benefit is given a numerical score; the higher the score, the greater its impact. Resources are allocated to issues with higher scores, thus prioritizing fixing them.
Pareto Efficiency

Pareto efficiency is an economic state where the allocation of resources is most economically efficient, although not fair. In this state, one cannot possibly reallocate resources to make anyone better off without making someone else worse off. The term is named after Italian economist and political scientist Vilfredo Pareto.
Parity

The word parity simply means equal in value. When two or more assets or fiat currencies have the same value, they are said to be at parity. For instance, if 1 USD is ever equal to 1 INR, we could say that there is USD–INR parity.
Parlay Bet

A parlay bet is when someone makes two or more bets and ties them together into one. It may consist of two or more individual bets. Such bets tend to be rather risky because if any of the bets in the parlay loses, then so does the entire parlay.
Participating Preferred Stock

Participating preferred stock is a type of preferred stock. It gives the holder the right to receive dividends equivalent to the customary rate of preferred dividends that preferred shareholders receive and an additional dividend. The additional dividend, which depends on some predetermined condition, ensures that these shareholders receive the same dividend as the regular shareholders. Such stocks can also mention preferences in the event of a liquidation.
People Poison Pill

A people poison pill is a type of “poison pill.” That means it is a defensive strategy used by a company to prevent an unwanted takeover. The strategy involves the target company’s management team threatening to resign if the takeover goes ahead. It works if all employees responsible for the company’s success join forces and the acquirer is keen to retain them.
Per Capita Income

Per capita income is the average income each person in a given area earns in a given year. It is calculated by dividing the total income of the area by the total population. The measure helps determine the average per-person income in the area and evaluate the quality of life.
Permanent Life Insurance

An umbrella term for life insurance policies that do not come with an expiry date is “permanent life insurance.” Most insurance schemes of this kind combine a death benefit with a savings portion and tend to be a little heavy on the pocket. There are two types of permanent life insurance: whole life and universal life.
Permissioned Blockchain

A permissioned blockchain is a non-public variation of blockchains. Access to data on this kind of blockchain is given to a select bunch of people for essential purposes only. It does not reveal as much information as a public blockchain. It is typically used within an organization or institution with a strict hierarchical structure to store sensitive information.
Perpetual Bond

A perpetual bond is a fixed-income security with no maturity date. It is also known as a “consol bond” or “perp” in the financial world. A bond of this kind is frequently categorized as a type of equity rather than debt. They are not redeemable, but they pay a steady stream of interest payments forever.
Peter Principle

The Peter Principle is a principle concerning how organizations work. It states that most organizations, such as corporations, tend to allow employees to rise in the hierarchy through promotions until they reach a level of respective incompetence. So a competent receptionist, for instance, may eventually become a terrible CEO due to a lack of relevant training. Their competence as a receptionist does not equip them to excel in the new role.
Phantom Stock

Phantom stock plans or shadow stock plans are a type of employee benefit plan. They give chosen employees many of the benefits of stock ownership without transferring any company stock to them. Instead, the employees receive mock stocks, which follow the price movement of the company’s stock and pay out any resulting profits. In this way, phantom stocks ensure that equity does not become diluted for other shareholders.
Phillips Curve

The Phillips Curve is an economic theory developed by economist William Phillips. It postulates that inflation and unemployment have a stable and inverse relationship. The concept was widely used in the 20th century—particularly to guide macroeconomic policy. But the stagflation of the 1970s led to a decline in its popularity.
Pink Sheet

Pink sheets are listings for stocks that trade over the counter instead of on a major US stock exchange. Such listings often pertain to companies that do not meet the requirements for listing on major US exchanges. Many of them are low-priced stocks called penny stocks. That means the share price for them is less than $5. Trading in pink sheet securities is seen as a rather speculative endeavor.
Pip

“Pip” is short for “percentage in point” or “price interest point.” It refers to the smallest whole unit price move that an exchange rate can make on the basis of forex market convention. Most currency pairs are priced out to four decimal places. A pip is in the last/fourth decimal place. It is the equivalent of 1/100 of 1% or one basis point.
Pitchbook

A pitchbook is a field guide of sorts. Sales teams of firms or investment banks use it to list the firm’s key attributes and important benefits. Pitchbooks serve as visual aids while presenting products and services to clients. Product pitchbooks contain details about a specific product or deal.
Plain Vanilla

The term “plain vanilla” refers to the most basic or standard version of a financial instrument. Bonds, options, bonds, futures, or swaps are some examples. Unlike exotic instruments, they do not alter the components of a traditional financial instrument or result in more complex securities. While plain vanilla instruments may sound boring, they are relatively low risk.
Planned Obsolenscence

Planned obsolescence is a strategy to boost market demand. It does this by ensuring that the current version of a product becomes dated or useless at some point in the near future. Producers achieve obsolescence by either introducing a superior model or by designing a product that begins to malfunction or ceases functioning in a specific period of time.
Plutus

The scripting language for writing smart contracts and creating dApps on Cardano is known as Plutus. It was developed to provide a clear, intuitive, and consistent language for smart contract creation. Plutus is based on Haskell, a programming language from the 1990s used for writing critical financial software.
Poison Pill

A poison pill is a strategy adopted by a company to discourage any hostile takeover attempt by another company. Firms often adopt a shareholder rights plan to thwart unwanted buyout offers. Under a plan of this type, existing shareholders can buy company shares at a discount to market price if any person or entity acquires a certain percentage of the company’s shares. The percentage at which the plan is activated is often called the trigger.
Ponzi Scheme

A Ponzi scheme is essentially a type of fraudulent investing scam. In this scheme, the scammers promise high rates of return with little risk, but they simply give earlier investors returns from the money taken from later investors. When there are no more new investors flooding in, and there’s not enough money to continue, a Ponzi project will bottom out. In this, it is similar to pyramid schemes.
Preferred Dividend

A preferred dividend is the cash dividend allocated to and paid on a company’s preferred shares. Companies have to declare all preferred dividend obligations in advance and allocate funds where they accumulate in arrears. If a company cannot pay all dividends, preferred dividends take precedence over claims to dividends paid on common shares.
Preferred Stock

Preferred stock is one of the two types of stock. Compared to common stockholders, this type of stock offers its holders a higher share of asset distribution in the event of liquidation. However, the stockholders usually have no or limited voting rights in the company’s governance. To sum it up, it is a type of equity that denotes company ownership rights and the right to claim income from the company’s operations.
Price Ceiling

A price ceiling is a type of price control that the law mandates. It refers to the maximum amount a seller can charge for a product or service. Price ceilings usually apply to staple products, such as food and energy products, when the masses begin to find them unaffordable.
Price Controls

Price controls are the minimum or maximum prices set for specific goods and services by the government. They are usually set up to help ensure that goods and services remain affordable to the larger public. The minimum is called a price floor, and the maximum price ceiling.
Price Sensitivity

Price sensitivity refers to the extent to which the price of a product impacts the purchasing behavior of consumers. It concerns how demand changes as production costs go up or down. In economics, price sensitivity is measured using the elasticity of demand. Price sensitivity may be more or less important in relation to a product based on other purchasing criteria, such as quality.
Price Skimming

Price skimming is a product pricing strategy. Firms using it charge the highest initial price that customers will pay and then lower it over time. Lowering prices follows the demand of the first customers being satisfied and competition entry into the market. The strategy gets its name from the “skimming” successive layers of cream/customer segments as prices drop.
Price Stickiness

Price stickiness, or sticky prices, is the tendency of market prices to “stick” even when broader economic shifts suggest a different optimal price. Stickiness indicates that the sellers or buyers may be reluctant to change the price, although the input cost or demand patterns have. It leads to inefficiency or disequilibrium in the market.
Primary Deficit

Primary Deficit is the difference between the current year’s fiscal deficit and the interest payments on previous borrowings. In other words, it indicates how much the government needs to borrow, excluding interest, to meet its expenses.
Private Key

An extremely long string of numbers and digits used in cryptography, private keys are similar to a password on the blockchain. They are used for the verification of identities in decentralized environments. Users can also confirm their ownership of blockchain addresses with them. They must always be kept private in all transactions.
Pro Forma

Pro forma literally means “for the sake of form” or “as a matter of form.” In financial statements, the term indicates that the accountant is using a method of calculating financial results where certain projections or presumptions are operating. Financials calculated this way do not follow the Generally Accepted Accounting Principles (GAAP). They tend to leave out one-time expenses.
Pro Rata

Pro rata is a Latin term that literally translates to “in proportion.” The phrase works as an adjective to refer to a process that ensures the distribution is proportionate to one’s contribution/ownership or is fair. So if someone is distributing something on a “pro rata” basis, it means they are giving out to each person the amount according to their share of the whole.
Procyclic

Procyclic is an adjective that refers to a condition where the behavior and actions of a measurable product or service move in proportion to the cyclical condition of the economy. It is one of three different relationships an economic indicator can have with the economy–the other two being cyclic and acyclic. Gross Domestic Product (GDP), labor, and marginal cost are some examples of procyclic indicators.
Producer Surplus

Producer surplus refers to the total amount that a producer benefits from producing and selling some quantity of a good at market price. It is the total revenue a producer receives from selling their goods minus the marginal cost of production. In conjunction with consumer surplus, it represents the total economic benefit a product yields for everyone who participates in its production and trade.
Profit Target

A profit target is the price point at which an investor intends to exit a trade for a positive gain. Investors and technical traders set profit targets while initiating a trade and use it as part of their trading strategy because it helps manage risk. There are many techniques and criteria to set the target.
Proof of Authority

Proof of Authority (PoA) is a novel blockchain consensus mechanism (a transaction verification mechanism). Simply put, the computers in the network have to establish their “authority” to earn the right to verify transactions. This is done through a vetting process. PoA is believed to be more resistant to 51% attacks. It even boasts of faster transaction rates.
Proof of History

Proof of History is a mechanism used to verify transactions on some blockchains. It involves accurately measuring the passage of time between two block additions with the use of timestamps and the Verifiable Delay Function (VDF). To get a chance to verify a block of transactions, users have to crank through the VDF (in other words, the proof of history). It’s not as popular as PoS or PoW yet.
Proof of Stake

Proof of Stake is one of the mechanisms used to verify transactions on blockchains. It involves users “staking” capital to earn the right to verify a block of transactions. Those with higher stakes are more likely to get the chance to verify a block. The stake acts as collateral when a validator is found to be dishonest. Users can stake multiple cryptos and get block rewards in proportion to their contribution.
Proof of Work

One of the mechanisms by which blockchain transactions are verified is called Proof of Work (PoW). This way of verifying transactions involves solving complex mathematical problems. PoW requires sophisticated, heavy-duty equipment to generate decent returns and is electricity-intensive. While not so eco-friendly, PoW is the most secure among other transaction verification options.
Protectionism

Protectionism refers to government policies that restrict international trade for the benefit of local producers. While the primary goal is to boost domestic economic activity, governments may introduce protectionist measures due to safety or quality concerns, too. Protectionist policies may include anything from tariffs, import quotas, and product standards, to subsidies. Economists and policymakers do not always agree on the value of protectionism.
Protocol

All computers follow some fixed procedures or rules to get tasks done. These rules are called protocols. They are, essentially, the steps that need to be taken for data to be shared. Blockchain networks use such protocols to operate. From creating a new wallet address to staking tokens, everything in the crypto space involves a protocol. Usually, networks work with multiple protocols simultaneously. All protocols are subject to change occasionally.
Public Key

A public key is a number series used in cryptography along with a private key. Public keys are used to encrypt sensitive information and data. They can be freely circulated without compromising security, but are associated with private keys, which are used for decryption. The public variety is usually used to secure crypto wallets and transfers.
Purchase APR

Purchase Annual Percentage Rate (APR) is a credit card’s interest rate for purchases when there is some balance on the card. It is applied on a monthly basis. Most credit cards have several APRs attached, and a different purchase rate is common. The credit card company may change the APR on a credit card with a 45-day notice.
Pure Proof of Stake (PPoS)

Pure Proof of Stake, or PPoS, is the consensus mechanism that the blockchain network Algorand uses. It was developed by Silvio Micali, an MIT professor. PPoS selects validating committees on a random basis. But they can only validate transactions in proportion to their stake.
Pushdown Accounting

Pushdown accounting is a bookkeeping method companies use to record purchases of other companies. While preparing the purchased entity’s financial statements, the accountant takes the acquirer’s accounts on board and writes the former’s assets and liabilities up or down to reflect the purchase cost—not the historical cost. In other words, they “push down” any gains and losses associated with the new book value from the acquirer’s income statement and balance sheet to that of the acquired.
Pyramid Scheme

A pyramid scheme is a fraudulent and unsustainable investment pitch. It relies on promising unrealistic returns from imaginary investments to attract early investors. Those behind the scheme pay the early investors with the money of later investors, which leads the former to recommend the scheme to others. Eventually, when no new investors are found, the pyramid collapses. There is no revenue, so the schemes rely on income from recruitment fees.

R

Real Body

The broad part of a candle on a candlestick chart is called a real body. It covers the area and represents the difference between the opening price and the closing price within a specific time frame. If the open is lower than the close, the candle is often green or white in color. In the case of the converse, the candle is usually red or black.
Real Estate Investment Trust (REIT)

Real Estate Investment Trusts or REITs are corporations that own, operate, or finance income-producing real estate. Such firms help small investors pool their resources to invest in large commercial real estate projects. They usually manage high-value real estate and mortgages. Those interested may invest in real estate through them by purchasing the company’s stock, mutual funds, or ETFs. The assets on offer include data centers, infrastructure, healthcare units, and even apartment complexes.
Rebase Token

A rebase token is one where adjustments are made to the circulating supply to ensure that its price stays pegged to a reference value, say another crypto. While similar to stablecoins, rebase tokens do not maintain their value by relying on reserves. Instead, they use algorithms for this. They are also called elastic tokens because of the elasticity of their circulating supply.
Recession

A recession is, broadly speaking, a contraction in a country’s GDP for two consecutive quarters. It may be temporary but, if it stays, it could eventually lead to economic depression. A recession is generally marked by a decline in economic activity and a rise in unemployment. Essentially, a decline in consumer demand forces firms to reduce headcount, which in turn, hurts consumer spending power and weakens demand further.
Rekt

The term “rekt” is a popular internet slang. It is a shorthand for “wrecked.” In crypto, rekt means to be at a financial loss. So “getting rekt” refers to incurring losses due to a trade or investment going bad.
Required Minimum Distribution (RMD)

Required Minimum Distribution (RMD) that account holders must withdraw from their account to avoid tax consequences. It specifically concerns employer-sponsored retirement plans, traditional Individual Retirement Accounts (IRAs), SIMPLE individual retirement accounts (IRAs), or SEPs. The holder should begin to take the RMD out at a specific age. The RMD is usually determined by dividing the previous year-end’s fair market value of the account by the IRS-mandated life expectancy factor.
Revenue

Revenue refers to the total amount a company garners from selling its goods and services. The term is sometimes used to mean sales proceeds, but the latter generally excludes money derived from services. Sometimes, revenue is referred to as the “top line.” This is because the entry appears on top of the table that lists the company’s consolidated earnings.
Revenue Budget

The Revenue Budget is the estimated amount a country needs for growth, development, and infrastructure. It includes the government’s revenue receipts, or the returns from taxes and other sources, as well as its expenditures for the fiscal year. Revenue expenditures include expenses that do not lead to the creation of assets.
Revenue Deficit

A revenue deficit is when the government’s projected net income exceeds the net income it manages to actually realize. In other words, a revenue deficit occurs when the budgeted expenses fall short. Governments with a revenue deficit are essentially struggling to make ends meet.
Reverse Takeover (RTO)

Private companies do a Reverse Takeover (RTO) to become publicly-traded companies without an IPO. In such takeovers, a private company first buys the shares of a publicly-traded company—sufficient shares to be able to control the latter. Its shareholder then exchanges the shares in the private company for shares in the public company. When this happens, the private company becomes public. RTOs are cheaper and quicker than IPOs, but they may have weaker management and record-keeping.
Reverse Triangular Merger

A reverse triangular merger is one of the ways of creating a new company. Here, the acquirer first creates a subsidiary. Then the subsidiary purchases the target company, which ultimately absorbs it. Despite their circuitous nature, such mergers are easier to implement than direct mergers. That’s because there is only one shareholder for the subsidiary, namely the acquiring company, which can easily gain control over the target’s nontransferable contracts and assets.
Rugpull

A “rugpull” refers to an unwelcome move made by some blockchain developers. When a project is termed a rugpull, it means the developers have essentially left the investors high and dry (or “pulled the rug” from under their feet). While not always illegal, rugpulls are always unethical. They happen more in the DeFi world. Liquidity theft, restricted selling, and abrupt token dumping are all types of rugpulls.

S

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonym used by the unknown individual/group responsible for the development of Bitcoin and the implementation of the original vision. The group/person has been credited with writing the Bitcoin white paper. They own 1 million BTC and have an active persona on Reddit even today.
Scaling

When blockchain networks are forced to handle transactional traffic beyond what they can manage, they become inefficient or slow. This is known as a “scaling” problem. When this happens, it prevents such blockchains from “scaling” new heights by handling more traffic. To fix its scaling problem, a blockchain network could seek help from another network by hosting it. Once a blockchain network is upscaled, crypto usage and adoption are expected to increase.
Scalping

Scalping is a trading technique that depends on minor and rapid price swings, which are often news-driven. It involves placing several trades in a short period—riding the supply-demand gap. Those who use this strategy usually follow the market closely, use charting tools, and must be quick to act. Traders who use this technique are called crypto scalpers.
Securities Transaction Tax (STT)

Securities Transaction Tax (STT) refers to the tax on the purchase and sale of securities via Indian stock exchanges. STT is applicable on equity, derivatives, units of equity-oriented mutual funds, and unlisted shares sold under an offer for sale to the public and included in an initial public offering (IPO). The 2004 Union Budget introduced it in India.
Security Tokens

Security tokens are digital assets used to offer ownership to investors. They are like the stocks that companies use to offer and establish ownership. A security token is a representation of the value of an asset or group of assets. POLY, for instance, is the security token of the Polymath network. The companies behind these tokens also release some of them on exchanges for trading.
Seed Phrase

A seed phrase is, essentially, a randomly generated set of 12 to 24 words. Issued by the platform, it is initially used to create private keys for the wallet. After that, the seed phrase is only used when one wishes to reset the password. Seed phrases are like master passwords.
Sell Wall

A sell wall is a large sell order for an asset, which can cause its price to fall significantly. Most exchanges have interactive depth charts to indicate sell walls. Sometimes, whales place such orders in an attempt to spark a downtrend that they can profit from via shorting.
Semantic Web

The Semantic Web is an extension of the world wide web as we know it today—that is, Web 2.0. One of Web 2.0’s drawbacks is that it cannot recognize similar content that uses different syntax. So it would not recognize that “I love Bitcoin” and “I <3 Bitcoin” mean the same thing. The Semantic Web fixes this by providing software programs with machine-interpretable descriptors for data.
Sharding

Sharding refers to the technique of partitioning blockchain databases. It helps boost the number of transactions per second and, therefore, scalability. Each shard of partitioned data is distinctive and independent from other shards. But the information stored in any particular shard is still visible to other nodes, so the ledger stays decentralized and secure.
Shilling

“Shilling” is the covert endorsement of a crypto project to create market hype and lure more investors. The point of it is to get the token to attract higher demand and, in turn, a better price. The term has a negative connotation as pump-and-dump schemes often resort to such tactics.
Simple Nightshade

NEAR Protocol decided to bring in a form of sharding in 2021. The sharding design it uses is different from the one Ethereum employs, and it goes by the name of Simple Nightshade. Sharding is like creating multiple checkout lines for transactions, instead of a single one, so with Nightshade, NEAR will be able to handle many more transactions per second. The design comprises three phases.
Sin Tax

A sin tax is an excise tax. It is imposed on the purchase of some specific items that are considered to be immoral or harmful to society. In India, for example, the government levies a sin tax on tobacco and alcohol to restrict their use.
Slippage

Slippage is when traders settle for a price lower or higher than what they initially requested. A common phenomenon in the crypto space, slippage occurs on account of market volatility. Slippage could be either positive or negative. Positive slippage is when the amount the seller gets is higher than the expected price. Negative slippage occurs when the amount the seller receives is lower than desired.
Smart Contract

A smart contract is a tamper-proof program that works on a blockchain network. It helps carry out transactions, oversee implementation, or keep parties accountable. Smart contracts are often developed on Ethereum. They reduce third-party dependence because they’re completely digital. All contracts are deployed after rigorous testing.
Smart Contract Standard

A smart contract standard is essentially a collection of rules that a smart contract has to adhere to in order to function. Each blockchain network that supports such smart contracts has this standard. This type of standard can include token standards, name registries, and a library of package formats.
Spinning Top Candlestick

A spinning top is a chart pattern used in technical analysis. It is candlestick pattern with a short real body that is vertically centered between long upper and lower shadows. This formation of this pattern suggests uncertainty in relation to the asset’s future course. With it, neither buyers nor sellers can gain the upper hand. Following a strong price move, spinning tops may hint at a potential price reversal if the next candle confirms it.
Spinoff

The creation of a new independent company by selling or distributing new shares of an existing business is known as a spinoff. Spinoffs are, therefore, the underlying corporate action that creates the new company. The spinoff is usually expected to be worth more independently. Spinoffs are usually the outcome of some form of divestiture. Spinoffs are also known as spinouts or starbursts.
Stablecoin

A cryptocurrency whose value is pegged to an external asset, like the USD or EUR, is called a stablecoin. This kind of coin is relatively less volatile. Stablecoins are an attractive investment option for the risk-averse and are handy to own while trading, transferring crypto assets, or waiting for buying/selling opportunities. USDT and USDC are well-known stablecoins.
Stablecoin Pegging

Pegging is when stablecoins are “pegged to” or made to shadow an external asset to achieve some price stability. For pegging, usually, physical assets are reserved as collateral. One type of stablecoin, algorithmic stablecoins, uses algorithms to regulate demand and supply and control prices. If a stablecoin is out of control, it’s considered to have gone “off the peg.”
Staking

Staking is a way of putting cryptos to work without actively trading them. Investors use staking to earn regular block rewards in proportion to their contribution. Staking helps the blockchain stay secure without it taking a toll on the environment. Projects that offer the option of staking are called Proof-of-Stake cryptos.
Stale Block

Blocks that are mined but do not get accepted in/added to the blockchain are said to be stale. They are stale in the sense of “outdated” because when two blocks are mined simultaneously, and one is delayed by a lag in block acceptance, the latter gets rendered obsolete. Such blocks are legitimate but are not part of a blockchain. They are also known as orphan blocks.
State Channel

State channels are Layer-2 scaling solutions that let users transact off-chain, thus limiting their interaction with the main chain. Users can only engage with the main chain twice—first, to open the channel and the second time while closing it. Their reduced reliance on the main chain creates the scope for faster transactions.
Statutory Debt Limit

The statutory debt limit or debt ceiling is the legal limit US Congress sets on the amount of debt the Treasury can take on behalf of taxpayers. Once it reaches this limit, the government cannot take on new obligations. The limit was first enacted in 1939. Ever since, Congress has routinely raised the limit to accommodate growth spending and budget deficits.
Stochastic Oscillator

A stochastic oscillator is a popular indicator in trading. It helps traders identify if there is overbuying or overselling of a stock/crypto/asset. By measuring the momentum of its price, on the basis of price history, this indicator helps determine trends and predict reversals.
Stock Repurchase

A stock repurchase is when a company buys back shares. The repurchasing can be through a tender offer or from the open market. Sometimes, stock repurchases are positive news when firms intend to transfer some of their wealth to shareholders. In such cases, the company may offer to buy the stock from them at a premium to the market price. Other times, though, repurchasing usually occurs when the company thinks the stock is undervalued.
Stock Split

Stock split is a strategy adopted by corporates to boost liquidity. With the strategy, the company assigns additional shares to shareholders. They are of two types—forward stock split and reverse stock split. A forward split will increase the number of shares but won’t change the market cap of a company or a shareholder’s stake. That means the value of the shares does not change. Conversely, a reverse stock split will reduce the number of shares.
Store of Value

An asset or currency that’s saved for the future because it doesn’t deteriorate in value is called a Store of Value. It “stores” the value attributed to it during purchase. In the future, it could potentially be exchanged for a similar (or greater) value. Money is a store of value, just like stocks, cryptocurrencies, or digital commodities.
Subprime Meltdown

In 2007, there was a sharp rise in high-risk mortgages, followed by payment defaults. The crisis came to be known as the Subprime Meltdown. Many lenders, swayed by the 2000s housing boom and the low-interest rates at the time, had taken to offering home loans to even people with bad credit records. When the real estate bubble burst, defaulted payments on subprime mortgages became the norm, triggering the meltdown. The Subprime Meltdown led to the Great Recession.
Swing Trading

Swing Trading is a style of trading. Traders using this style try to profit from the short- to medium-term gains of a coin, usually made over a period of a few days or weeks. Swing trading takes advantage of the major price movements of historically volatile cryptos. It usually involves technical analysis.
Symmetrical Triangle Pattern

A symmetrical triangle is a type of chart pattern in technical analysis. When two converging trend lines connect a series of sequential peaks and troughs, this pattern forms. The trend lines should be converging at a roughly equal slope. Traders tend to use symmetrical triangles along with other forms of technical analysis to confirm a period of consolidation.
Synthetic Asset (Synth)

Synth is short for synthetic assets. Synthetic assets are the tokenized version of traditional derivative assets. Derivatives are representations of stocks or bonds that a trader does not own but wants to buy or sell; their tokenized counterparts simply store these representations on the blockchain.

T

T-Address

T-addresses are one of the two types of addresses available on the crypto Zcash. Zcash gives users the option of choosing a private or a transparent wallet. When a user is looking for privacy, they can use a t-address. The private counterpart of this type of address is a z-address.
Takaful Insurance

Takaful is a type of Islamic insurance. In this system, the members pool their money to guarantee each other against loss or damage. Since the commercial insurance industry promotes the use of interest and gambling, Takaful insurance companies were introduced. Such insurance is based on sharia or Islamic religious law. It covers health, life, and general insurance needs.
Tangible Common Equity (TCE)

Tangible Common Equity (TCE) measures a company’s physical capital. It helps evaluate a financial institution’s ability to deal with losses. It is often used to analyze financial firms that do not usually hold many tangible assets. Such firms may instead have a larger preferred stock holding. TCE is the preferred equity from the company’s book value minus intangible assets (such as goodwill).
Tape Reading

Tape reading is a technique that day traders once used to analyze the prices and volumes of stocks. In the mid-19th to 20th centuries, telegraph lines were the primary means to relay stock prices. It involved the use of ticker tape, a ticker symbol, price, and volume. A certain Edward A. Calahan invented the tapes for the Gold and Stock Telegraph Company in 1867.
Taproot

One of the most important upgrades on the Bitcoin network in the last four years has been termed Taproot. The upgrade improves the speed and cost-efficiency of transaction processing on the blockchain. It achieves this by combining multiple signatures and transactions together into one batch in order to clear them.
The 4% Rule

The 4% Rule is a retirement planning rule of thumb. It helps retirees decide how much they can safely withdraw from their retirement fund each year. According to this rule, retirees can withdraw 4% of their retirement funds in the first year. Every year after, they may withdraw that dollar amount, adjusted for inflation. The rule was created using data on stock and bond returns from 1926 to 1976.
The DAO

Launched in 2016, The DAO was the world’s first decentralized autonomous organization. The developers created The DAO to serve as a decentralized venture capital fund, thus eliminating human error in fund management. The DAO directed its efforts toward capitalizing Ether initially. Unfortunately, the DAO was hacked after a few months, and it had to go defunct.
Think Long Term (TLT)

TLT or Think Long Term refers to a mindset that involves having a long-term investment agenda. Investors with such a mindset are not looking to make a quick buck. They are thinking of expanding and developing their portfolio over the years.
Throughput

In common parlance, throughput refers to the output within a given period of time. Transaction throughput in the crypto space is the rate of crypto transactions. It may be measured in seconds, minutes, or hours. The throughput is determined by the consensus mechanism being used. Developers could use rollups or side chains, or increase the block size, in order to raise the throughput.
Ticker

A ticker is a graphic strip displayed on a financial news channel. Tickers keep scrolling to display the prices of stocks and commodities. They help traders stay up to date—something that is especially crucial with intraday trading. In the telegraph era, prices were transmitted via “ticker tape.” That’s where the word comes from.
Ticker Symbol

A ticker symbol is a short combination of letters used to represent a stock, crypto token, or any other asset. The same letters are used across various exchanges, swapping services, and other DeFi solutions. BTC for Bitcoin is an example. Since cryptos are constantly being developed, ticker symbols have come to play a vital role in relation to trading. They help traders distinguish between different cryptos more easily.
Time-Weighted Automated Market Maker (TWAMM)

Short for Time-Weighted Automated Market Maker, TWAMM is an algorithm that helps traders execute large orders without negatively affecting the price. It does this by breaking up the orders over a period of time via an AMM. Relying on arbitrageurs, these algorithms trade against AMMs to ensure that the price returns to its market value. If one broke up the trades manually instead, it would be time-consuming, and the gas fee would be higher.
Time-Weighted Average Price (TWAP)

Time-Weighted Average Price (TWAP) refers to the average price of an asset over a specified period of time. The term also refers to a trading algorithm that executes large orders over a set period of time to get the best price. These algorithms work by breaking up the order into smaller bits, which prevents the price from spiking. They help save on intermediary fees.
Timelock

A Timelock or Locktime is a mechanism that relies on timestamps to only allow transaction processing at a specific time on the blockchain. Timelocks, essentially, ensure that miners only verify transactions at some particular time or block height. Miners usually receive a specific block number after determining a timelock.
Timestamps

A sequence of characters or encoded information that is used to identify when an event occurred is called a timestamp. It usually mentions the date and time of day. The time mentioned can be accurate to a small fraction of a second. Timestamps are used to verify the exact moment when a block was created and added to a blockchain.
Tipset

A tipset is a different type of distributed ledger, where there are a set of blocks instead of a chain. Each block has the same height and parent tipset. Tipsets are assigned a weight corresponding to the amount of storage they provide. The Filecoin blockchain uses this type of ledger. Filecoin’s tipset system allows multiple computer users to create blocks simultaneously, unlike mining. It thus helps increase network throughput.
Token

The term token is often believed to be just another name for crypto. So, some tokens belong to specific projects but others do not. By this definition, everything from BTC to LINK is a token. However, some people insist that the term should be used for all cryptos apart from Bitcoin and Ethereum or reserved only for cryptos that do not run on their own blockchains.
Token

A cryptocurrency that does not have its own blockchain is called a token. Token transactions are hosted on a different crypto’s blockchain via smart contracts. Some tokens belong to specific projects. MANA is native to Decentraland, for example. Tokens are harder to create than coins, but unlike coins, there can be thousands of them on a single blockchain.
Token Economy

Token economies are economies of goods and services that have been tokenized. In other words, they can run without intermediaries and third parties, thanks to blockchain technology. Such economies are essentially a digital analogy to the interaction of parties and entities in the real world.
Token Generation Event (TGE)

A Token Generation Event or a TGE is an event where a dApp developer publicly releases individual tokens into the market. It is similar to an ICO in terms of its purpose, but some companies prefer to brand their fundraising campaigns as TGEs due to regulation-related concerns.
Token Lockup

Token lockup is the locking up of tokens for a specific period. During the lockup phase, no transactions are allowed. Also called the vesting period, it helps projects achieve price stability and protects them against liquidity issues.
Token Migration

The transfer of tokens from one blockchain to another during a changeover is known as token migration. Migrations may occur due to the launch of a new protocol or when a project is simply switching protocols. If the tokens are held on a crypto exchange, the service provider will facilitate the transfer. Alternatively, you could make the transfer yourself if you’re good at programming.
Token Sales

A token sale is the initial offering of a token to a private pool of investors before it officially hits the market. Token sales allow developers to introduce investors to their projects in the early stages and attract funding. The crypto’s white paper usually has details of token sales. ICOs are a type of token sale.
Token Standard

Token standards are part of the smart contract standard. Every blockchain which supports smart contracts has a smart contract standard, which in turn lays out the token standard. These token standards specify and define how to create, issue, and deploy new tokens based on the underlying blockchain.
Tokenized Carbon Credit

Tokenized carbon credits represent carbon that has been removed from or not added to the environment. One metric tonne of carbon reduction or avoidance amounts to one carbon credit. Such credits are created by bridging carbon credits from the voluntary carbon market registries onto the blockchain.
Tokenized Securities

Tokenized securities are digital representations of traditional securities. Their purpose is to broaden market reach and liquidity. Cryptos like PolyMath allow people to buy and trade traditional assets like stocks and bonds on the blockchain. Tokenized securities are not yet available for retail investors but development is underway.
Tokenomics

A combination of “token” and “economics,” this term represents everything that makes a cryptocurrency valuable and interesting for investors. A coin’s tokenomics consists of data and statistics, including historical patterns and avenues for growth. Metrics under tokenomics include total supply, utility, trading volumes, and long-term movements.
Toll Bridge

A toll bridge is a type of bridge that runs on a smart contract. The smart contract handles bridge burns and claims, which include vesting schedules and TGEs. Toll wallets get their name from the fact that a toll fee is necessary to unlock access to their extra functionalities, such as vesting.
Total Supply

Total Supply is the number of coins or tokens of a particular blockchain currently in existence. It also includes coins that are in circulation or locked. The total supply decreases if coins are burnt. Most coins have an upper limit on total supply. When this upper limit is reached, miners stop getting block rewards and start getting paid with transaction fees instead.
Trade Deficit

A trade deficit occurs when a country’s import of goods and services is higher than its exports during a given time frame. One may also describe a country with a trade deficit as having a negative trade balance. A growing trade deficit is a cause for concern as it weakens the currency. For example, India’s growing trade deficit in relation to the US may lead to the rupee struggling to keep up with the dollar.
Trading Tournament

Trading tournaments are a type of crypto campaign or event. They are usually organized by crypto exchanges. In a trading tournament, users test their knowledge of the market through trading. The winner goes home with tokens, hardware wallets and more. Such tournaments are meant to attract and encourage new traders.
Transaction Fees

A transaction fee is paid when a certain amount of crypto is transferred from one wallet to another. Transaction fees are flexible and depend on the blockchain’s traffic. Most blockchains allow users to expedite their transactions by paying a larger fee.
Transaction Trigger

A transaction trigger is an event or a pre-specified criterion. When this event occurs or the criterion is met, a set of transactions are executed. Trading triggers eliminate the need for constant monitoring of the market, which can be impractical and time-consuming. They can be set up on blockchains and are very useful in trading volatility-prone assets like crypto.
Transactions Per Second (TPS)

Transactions Per Second (TPS) refers to the number of transactions that a network is capable of processing each second. Faster speeds are positive because they translate to lesser wait times for transaction confirmation. The average TPS of Bitcoin, currently, is 4.6, while Cardano can go up to 250 TPS.
Treasury Bill (T-Bill)

Treasury bills (T-Bills) are short-term debt obligations backed by the Treasury Department of the US government. The government usually issues them in order to fund public projects. They come with a maturity of a year or less and are usually sold in denominations of $1,000.
Treasury Bond (T-Bond)

The Treasury Bond (T-Bond) is a debt security issued by the United States’ Treasury Department. By investing in a T-Bond, one is essentially loaning money to help the federal government meet its expenses. In return, one gets paid interest on a semiannual basis until the bonds mature or are repurchased by the government. Unlike T-Bills, T-Bonds come with a longer maturity date.
Treasury Inflation-Protected Securities (TIPS)

Treasury Inflation-Protected Securities (TIPS) are Treasury securities issued by the US government. TIPS are indexed to inflation, so they work to protect investors should the purchasing power of their money decline. The principal value of TIPS rises with inflation, and the interest payment varies with the adjusted value of the bond. The principal amount, however, is protected. So investors will never receive less than the sum they invest.
Treasury Note

A Treasury note is a US government debt security with a fixed interest rate maturing in 2-10 years. Investors can get hold of treasury notes either via competitive bids or non-competitive bids. In the former type of bid, the investor gets to specify the yield. Not so with the latter. Treasury notes are like Treasury bonds, but they come with shorter maturity periods.
Trojan Horse

A Trojan Horse is a type of malware disguised as legitimate software. The name comes from the Ancient Greek story about the hollow wooden horse used to invade the city of Troy. Cybercriminals and hackers use such malware to access the computers of unsuspecting users who have been deceived into downloading it. Having gained access, the hackers can read, monitor, and misuse data on the computer. Traders need to look out for trojan horse attacks.
Truffle

Truffle is a development environment and a testing framework for blockchains using the Ethereum Virtual Machine. A widely used tool now, Truffle was designed by Tim Coulter, in 2015, with the aim of simplifying dApp development. It does this by unifying the many layers and packages involved in creating a dApp into a single tool.
Turing Complete

A system that’s “Turing Complete” can do all that a Turing machine—mathematician Alan Turing’s theoretical machine—can. Most programming languages today are Turing complete. Machines that do not meet this requirement have some restrictions, so they can’t solve some computational problems. Some blockchains like Bitcoin don’t have to meet fit this requirement as they have simple functionalities.
Two Factor Authentication (2FA)

Two Factor Authentication (2FA) is a security system protecting access to sensitive information. It offers a higher level of security than traditional passwords because it requires two forms of identification. Users usually provide a password along with a second layer of identification. The second layer could be a security token, biometrics, or an OTP.
Type Checking

Type checking is a process that helps to verify that each operation in the program is in accordance with the type declaration rules of the language. Type checking can be static or dynamic. In the former, the compiler performs static type checking at compile time. Checking does not occur until runtime or execution time with the latter.

U

Ultrasound Money

The term “ultrasound money” is used to refer to ETH in the post-Merge scenario. With the adoption of PoS, the supply of ETH is dropping. That makes it far more valuable. The idea is simple: If gold, with its fixed supply, is considered sound money, ETH can now be called ultrasound money.
Uncle Block

Uncle blocks are two blocks that are created and submitted at the same time, approximately, on the Ethereum network. Only one of two such blocks can find a place on the ledger. They are also known as Ommer Blocks. While the concept is similar to orphan blocks, the creators of such blocks are rewarded in the Ethereum system through transaction fees.
Unconfirmed Transaction

A transaction that has not been verified and recorded on the blockchain yet is known as an Unconfirmed Transaction. Zero-Confirmation Transaction is another name for a transaction of this type. Before the block is mined, the initiator of the unconfirmed transaction is the only one who knows of its existence.
Unspent Transaction Output (UTXO)

Unspent Transaction Output (UTXO) is a protocol that helps distribute the bits of data that crypto is made from. Every transaction generates a UTXO. When you initiate a transaction, a UTXO with your information is located, unlocked, and associated with the new owner’s information. The user, however, only sees the leftover crypto, so the term is often used to refer to the amount of crypto left over after a transaction.
Use Case

In software development, use cases describe how a particular thing or system uses an application to achieve its goal. In 1987, Swedish computer scientist Ivar Jacobson developed this format to document complex requirements in a simple way. Use cases can help a team of developers identify user needs, assist with goal setting for the software, and ensure that design and implementation are consistent with larger business goals.
Utility Token

Utility tokens get their name from the fact that they are designed to facilitate the use of something. Often, they are crypto assets associated with initial coin offerings (ICOs) and are meant to garner funds for the project’s development. Later, they offer access to services provided by the blockchain project. Such tokens do not represent any ownership stake in the project concerned.

V

Validator

A validator is someone who verifies or validates a block of transactions and adds them to a blockchain. Validators play a key role in the sustenance of blockchain integrity and security. In a Proof-of-Work (PoW) ecosystem, miners would be the validator nodes (computers). With Proof of Stake (PoS), the right to be a validator is earned by locking in some crypto as collateral.
Value Stock

A value stock refers to shares of a company that appears to trade at a lower price than its fundamentals would lead us to believe it is worth. The fundamentals to assess its worth may include dividends, earnings, or sales. Because investors have an unfavorable view of the company, a value stock typically has a bargain price.
Vanity Address

A vanity address refers to a customized crypto public address. The letters and numbers in the address are usually picked by its owner. They have all the same functionalities as other such addresses but are more easily identifiable due to their being personalized.
Vaporware

Crypto projects that are still in the development phase and haven’t had a chance to go to market yet are called Vaporware. Such projects are not dead; the developers are still working on them. The term is used to describe projects that are declared years or months in advance with no clear release date.
Venture Capital

Venture Capital (VC) refers to investments made into projects with substantial risk, especially in a new or expanding business. Investments are made by looking at long-term growth, market potential, and a business’s unique selling point. VC in crypto is at its peak in 2022. More than $10 billion invested in crypto start-ups in the first quarter alone.
Verification Code

A verification code is a security protection method that prevents internet bots from abusing or spamming online services. It is like a captcha or the code that service providers send when you log in via a new device. Such codes are commonly used in banking and crypto accounts as part of their two-factor authentication systems.
Vesting Period

A “vesting period” refers to the amount of time that an investor needs to wait to earn their full rights. Blockchain projects with tokens have fixed vesting periods to curb market-wide sell-offs. In the vesting period, tokens sold as part of an ICO or offered to project stakeholders are locked in to prevent selling sprees. Such projects also put out vesting schedules that specify the periodic token release timelines.
Virgin Bitcoin

A Virgin Bitcoin, as the name suggests, is a bitcoin that has never been spent. In other words, it has been received by a miner as part of the block mining reward and has not yet changed hands. It can only be via P2P trading. Despite attempts to market some bitcoins as virgin bitcoins, no market has emerged for them so far.
Virtual Reality (VR)

Virtual Reality (VR) refers to a computer-generated three-dimensional environment that a user can experience, explore, and interact with. The experience is designed to be a simulation of the real world that we live in. VR has already been applied to video games and education. Users rely on VR headsets to enter the virtual world.
Volatility

Volatility refers to the extent to which an asset’s price can fluctuate over time in either direction. It could be positive or negative for investors. Diversification across and within assets, long-term investing, and dollar-cost averaging can reduce exposure to volatility.
Volume

Volume is a technical term. It is used to denote the number of transactions or contracts executed between traders for a cryptocurrency. More volume is generally positive. It indicates higher liquidity and better order fulfillment.
Vote on Account

Vote on Account is a provision that offers the government access to funds when the Union Budget faces delays. Although the government presents the budget two months before the end of the fiscal year, occasionally, parliamentary approval may not be possible on time. To bridge the gap in such cases, the Vote on Account provision lets the government ask the Parliament to authorize the spending of some amount of money until it approves the Budget.

W

What is Burn address?

A burn address is an address used as part of the crypto burn mechanism. It is essentially an inaccessible digital wallet. The burnt address does not belong to any user, and no one can guess its private key. Transferring tokens to a burn address removes them from circulation. It is also sometimes called an eater address.
WannaCry Ransomware

Like all ransomware, WannaCry is used to prevent users from accessing their data and then to extort money. This particular ransomware, though, can spread through a number of computer networks rapidly. It was used to blackmail Microsoft Windows users for bitcoin ransoms in May 2017.
Wash Trading

Wash trading is a form of market manipulation. Investors engaging in this type of manipulation simultaneously sell and buy the same crypto. This is meant to artificially induce activity in the marketplace. The wash trading tactic is mostly used to make an asset look more valuable and liquid than it is in reality.
Watcher (OMG Foundation)

OMG Foundation is a scaling solution for Ethereum. The foundation’s computer called Watcher keeps an eye on the child chain and block producer. Its primary task is to check that network transactions are confirmed correctly. The Watcher ensures that child chain’s behavior complies with the rules of the network and that it does not tamper with transaction orders or withhold blocks.
Watchlist
In crypto, a watchlist is a list of tokens that a user is interested in tracking. Each user gets to create their own watchlist. There are three types of watchlists that users can create:
1. Watchlists to track portfolio-specific assets
2. Watchlists tracking different markets, and
3. Those tracking coins of interest.
Weak Hands

Weak Hands are traders who either do not have the means or the conviction to stick to their preferred trading strategy. Such traders are more likely to run into losses due to their tendency to buy high and sell low. In futures trading, such traders are likely to fail to take, or give, delivery of the underlying asset.
Web 1.0

The first version of the internet (World Wide Web) is retrospectively called Web 1.0. This version was characterized by personal websites hosted on service provider-run servers. Web pages were created on free domains and had no advertisements. Back then, the internet was used only to post pictures online or to blog about them.
Web 2.0

Web 2.0 is the second version of the World Wide Web. It’s the one most of us use today. This version is characterized by user-generated content, utility, and interoperability. It enables interaction and collaboration between user-created social media websites and digital communities. Web 2.0 supports millions of users simultaneously on e-commerce sites like Amazon or Alibaba.
Web 3.0

The most advanced form of the internet yet is called Web 3.0. With this version, artificial intelligence and 3D graphics that can help distinguish humans from robots will be put to use, generating faster results. Web 3.0 uses crypto and NFTs to establish a permissionless digital environment by helping protect privacy and data. It fuels private ownership and anonymous participation.
WebSocket

A WebSocket is a two-way communication channel between a client and a server that stays open and transits data bi-directionally. The client is usually a web browser, and the server is an HTTP server or another Web Socket server. Trading websites use them to help users stay aware of price fluctuations.
Whale

The term whale refers to an individual or institution that holds large quantities of any particular crypto. Whales usually have enough holdings to influence markets singlehandedly and manipulate prices. Michael Saylor and Brian Armstrong are well-known crypto whales. As of May 2022, Saylor owns roughly 1,25,000 BTC, approximately 0.59% of the total supply.
When Lambo

If someone asks, “When Lambo?” they’re not talking about your car, but your crypto. They are asking in jest how long before you get rich. In doing so, they are implying that it is bound to happen soon, thanks to your crypto holdings. The phrase came into use after many wealthy crypto holders took to buying Lamborghinis, but it only became popular after the Consensus Investment Conference of 2018.
When Moon

“When moon?” is the “Are we there yet?” of crypto. The speaker may simply mean to find out when the price of the crypto will go to the moon (meaning, when it will soar). But the phrase is often seen as betraying the speaker’s amateurishness. Because it reflects a certain amount of impatience on the speaker’s part.
White Hat Hacker

White hat hackers are also known as ethical hackers. Their practices are considered ethical because they use hacking in order to help improve security by exposing vulnerabilities. Unlike their black hat counterparts, they do not try to profit from the breaching of limits and security measures.
White Label

A white-label product is one where the back end is market-ready, and the user interface is easy to customize. In the crypto world, it refers to generic software—one that’s been tested and is ready to hit the market. The practice of white labelling helps make tech more accessible.
White Paper

The first document released by crypto project developers to explain their technology’s purpose is called a white paper. The document tells potential investors about the conception and goals of the project. White papers traditionally contain data, statistics, numbers, diagrams, and formulae to help people understand the project’s fundamentals.
White Swan Event

An event that one can foresee on the basis of current information is called a white swan event. Such events are usually easy to quantify and are, therefore, sure to occur. Some argue that the crypto market itself is a white swan due to its history of bouncing back after downturns.
Whitelist

A whitelist is essentially a list of participants for an event. In finance, the term refers to those chosen to participate in an Initial Coin Offering (ICO) or an Initial Exchange Offering (IEO). Its use helps limit entry to those who meet some qualifying criteria—such as some minimum holdings.
Winding Down

When the unwrapping of a token involves multiple platforms and other tokens, the process is called winding down. Winding down, for instance, may involve first exchanging the wrapped token—let’s call it token wA—for an intermediate token B via exchange 1. Because only Token B may be exchanged for token A on exchange 2. So it is like simple token unwrapping, except via a circuitous route.
Winding Up

In DeFi, crypto holders sometimes need to use multiple platforms in order to wrap their tokens because doing so gives the best yield. Winding up refers to this circuitous way of unwrapping tokens. It is the converse of winding down.
Wrapped Tokens

With this type of token, a user can transfer the value of an asset from its native blockchain to another. Wrapped tokens work via smart contracts. These contracts represent the original asset, which is locked as collateral on a separate blockchain, as a wrapped token. For example, if BTC is locked as collateral on the Ethereum blockchain using a smart contract created, the user will be issued a wBTC (wrapped BTC) token.

X

x86 Virtual Machine

x86 is a virtual machine developed by the team of open-source blockchain project Qtum. It writes and executes smart contracts, just like the Ethereum Virtual Machine (EVM). But it additionally supports a variety of languages, fixed-fee per transaction, and fee per transaction. Its unified 16-bit encoding scheme also sets it apart from EVM by reducing gas fees in common cases.

Y

Yellow paper

A yellow paper is the technical version of a white paper, which captures all public information related to a token. The yellow paper lays down the formal specifications of the protocol in writing. One of the most well-known yellow papers is by Ethereum. The paper was written by one of its founders, Gavin Wood.
Yield Curve

A yield curve is a line on a graph that represents the relationship between yields and maturities in a fixed income market. Investors use to it to assess the return rates they can expect from various maturities of fixed-income securities, including treasury bills or bonds.
Yield Farming

Yield farming involves staking or lending crypto to earn interest and other rewards. Yield farmers provide liquidity to various cryptos and earn returns, which can then be reinvested in other protocols for additional returns. A range of DeFi tools and services are used in yield farming. Some of the top yield farming protocols are Aave, UniSwap, and Curve Finance.
Yield Sensitivity

Yield sensitivity is a measure of the extent to which the price of an asset fluctuates in response to changes in interest rates. The higher the sensitivity, the greater the chances that the price of the asset will decline when the interest rate rises. And vice versa.

Z

Zero-Based Budgeting (ZBB)

Zero-Based Budgeting (ZBB) is a budgeting method. It entails starting from “point zero” or a zero base in every budgeting period. So you create a new budget from scratch every time and justify all expenses for the new period. The main goal is to look at the business with fresh eyes to dismiss or scale back activities that are not required. The Indian government adopted ZBB in 1986 to determine the Expenditure Budget.
Zero-Confirmation Transaction

In crypto, a zero-confirmation transaction is one that has not been verified and recorded on the blockchain yet. Before the block is mined, the initiator of the zero-confirmation transaction is the only one aware of its existence. Occasionally, a seller may dispatch purchased goods based on the assumption that such a transaction will be verified soon enough. When that happens, one may infer its existence.
Zero-Coupon Bond

Interest paid to bondholders by the issuing entity is known as a coupon. A zero-coupon bond, as the term indicates, provides zero periodic interest payments. Such bonds are sold at huge discounts and redeemed for full face value at maturity. So, for instance, if the face value of a zero-coupon bond is $1,000, you will get the bond for, say, $850. You receive no interest, but at maturity, you will be paid $1,000.
Zero-Knowledge Proof

Zero-Knowledge Proof is a way of one party proving to another that a given statement is true, with zero additional information being provided apart from the claim that the statement is true. The concept in cryptography. It is used to verify blocks without sharing private information or passwords. Since there are no passwords, they cannot be stolen, and the anonymity of the parties involved stays protected.
ZK Rollups

Zero Knowledge Rollups, also known as ZK Rollups, are a Layer-2 scalability solution for Layer-1 blockchains. They help make transactions on blockchains faster while keeping the gas fee minimal. They work by “rolling up” transactions and executing them off-chain. This moving of computation and state storage off the main chain is what helps speed up transactions.
ZK-SNARKs

ZK-SNARKs is short for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. It is a type of zero-knowledge protocol used in encryption. So it allows one party to prove its possession of some information without disclosing that information. ZK-SNARKs are called non-interactive because the prover and the verifier do not need to interact. They offer users more privacy than protocols of traditional cryptos like Bitcoin.