Cryptocurrency Glossary
Explore key cryptocurrency, tax and investing terms and definitions
Proof of Work (PoW)
Proof of Work (PoW) is a blockchain consensus mechanism where miners solve complex puzzles to validate transactions and secure the network. While highly secure and decentralized, PoW is energy-intensive and faces scalability challenges, making it a topic of debate in the crypto space.
Protocol Layer
A protocol layer is a specific level within a blockchain's architecture that defines its functionality, from transaction execution to scalability and interoperability. Learn how different layers (L0, L1, L2, L3) contribute to blockchain ecosystems.
Pseudonymous
Pseudonymity allows users to engage in activities under an alias rather than their real identity. In cryptocurrency, pseudonyms like wallet addresses enhance privacy while maintaining transparency through traceable blockchain transactions.
Public Blockchain
A public blockchain is an open, decentralized network where anyone can participate, validate transactions, and view the ledger. Learn how it works, its benefits, and the challenges it faces in scalability and security.
Public Key
A public key is a cryptographic code used to receive funds and verify digital signatures on blockchain networks. Freely shareable and transparent, it works alongside private keys to secure transactions and ensure authenticity.
QR code
A scannable two-dimensional barcode that stores information like links or payment data.
Real world assets (RWA)
Real-world assets (RWAs) are physical or traditional financial assets — like real estate or bonds — represented on the blockchain through tokenization. Learn how they work and why they matter in crypto.
Recovery Seed
A recovery seed is a 12 to 24-word phrase that serves as the backup key to a crypto wallet. If your device is lost or damaged, the recovery seed allows you to restore access to your funds.
Remote Procedure Call (RPC)
An RPC node is a server that allows external applications to interact with a blockchain via remote procedure calls. It facilitates querying blockchain data and submitting transactions securely and efficiently.
SegWit (Segregated Witness)
SegWit (Segregated Witness) is a Bitcoin protocol upgrade that separates signature data from transaction data, increasing block capacity and improving transaction efficiency without changing the block size limit.
Settlement
Settlement is the process of completing a transaction by transferring assets or funds between parties.
SHA-256
SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that generates a fixed 256-bit (32-byte) output from any input data. It's widely used in blockchain networks like Bitcoin for securing transactions and mining.
Shitcoin
A shitcoin is a cryptocurrency with little to no value, utility, or long-term potential. Often driven by hype and speculation, shitcoins pose high risks to investors and are characterized by poor development, lack of purpose, and extreme volatility. See more.
Slippage
Slippage occurs when a trade is executed at a price different from the expected one, often due to market volatility or low liquidity. It can be positive or negative and is common in cryptocurrency, stock, and forex trading.
Smart contracts
Self-executing agreements on blockchain networks, automating processes like payments, asset transfers, and DeFi activities. Transparent, secure, and efficient, they eliminate intermediaries and power decentralized applications (dApps).