In cryptocurrency, the address refers to a unique identifier of letters, numbers, and special that present a code. This code is what people use to send crypto. 

Often used as a marketing ploy, an Airdrop deposits cryptocurrency tokens or coins into a users’ crypto wallet with the idea of driving awareness and understanding around it. Enhanced engagement can help drive up the value of any virtual currency and ultimately benefit the blockchain and its investors over time. 

An Altcoin is a term designed to describe a type of cryptocurrency that is not bitcoin. Given that bitcoin is the oldest, most solidified and most valuable cryptocurrency in the world, the industry has decreed any rival crypto token to be referred to as an “altcoin”. Examples of altcoin include Ethereum (ETH), Solana ($SOL), and […]

The Atomic Swap is a peer-to-peer exchange platform. Rather than having to rely on any third party facilitation, it allows each party to deposit a set number of tokens into an exchange contract. Provided each partner accepts the transaction within a set period of time, the Atomic Swap is executed.

A Block in cryptography terms refers to a collection of records that permanently stores information and data, such as  . New data can only be added to a blockchain as part of a block, with each block built on top of the one that came before it, hence the term “blockchain”. Each new block contains […]

Technology waits for nobody, which is why if you’re fed up with the safety records of data breaching in online wallets, banks, and third-party transactions, it is worth exploring blockchain and how it can work for you. A collection of records that are linked with each other, the blockchain is impervious to manipulation and corruption. […]

There are millions and millions of cryptocurrency traders in the world, and the majority of them trade on platforms known as Centralised Exchanges (CEX). Managed by a centralized entity, a CEX acts much like any traditional bank would, but for cryptocurrencies rather than sterling, dollars, euros, yen, or any other world currency you can think […]

A Cold Wallet is a self-explanatory term in cryptocurrency that refers to a storage of digital assets that affords maximum security thanks to the offline nature of the wallet. It significantly reduces the risk of any hack or theft of the wallet. They are viewed as the best option for a long term storage of […]

A consensus is a protocol on the blockchain network that attracts all nodes into a single data set to agree on the authenticity of transactions and the current state of the network. Once the consensus protocol is achieved, a transaction can be approved. It is a snapshot of the fundamental principles of decentralised finance (DeFi) […]

Cross-Chain is a term referring to two or more different blockchain platforms. Using the Cross-Chain Bridge innovation, holders can send different coins from one blockchain to another, solving the communication roadblocks that surround the isolationist nature of coins within their own wallets.

A Cross-Chain Bridge allows individuals to transfer assets from one blockchain to another seamlessly. It is a connection point – as its title suggests – and a messaging vehicle for blockchains to communicate with one another. Without it, the interoperability of cryptocurrency and other digital assets would be stuck in a slower and longer timescale […]

A term that describes a specific security protocol that helps protect information and communication. When employed correctly, it can prevent third parties or the public from accessing important information.

The term Decentralised Autonomous Organisation – sometimes referred to as DAO – is a member-owned governance system where the collective goal is to always act in the best interest of the entity. Votes are cast within the DAO on all required decisions, which reflects the bottom-up management approach of a DAO. 

A DApp, dApp, Dapp, or dapp – otherwise known as a decentralised application – is a form of distributed, open source software that operates on a peer-to-peer (P2P) blockchain network, meaning it cannot be operated by a single individual entity or person. Because of the peer-to-peer nature of a dApp, there are no commission fees, […]

The term Decentralised Finance (DeFi) refers to a peer-to-peer payment system that departs from traditional third parties and institutions. Instead, built on the blockchain, it uses smart contracts to automate traditional banking activities, cut costs and streamline the overall process. 

Cryptocurrency traders have a choice – parsing their trade on a centralized or decentralized platform. The latter means that instead of handing over control of funds to an intermediary or a custodian, they will be buying and selling directly with others on a peer-to-peer marketplace. This is driven by smart contracts, which are written in […]

DeFi 2.0 refers to the evolution of decentralised finance protoco;s that is driving innovation and improvement in the field. DeFi is short for Decentralised Finance, and the 2.0 version is promising more sustainable, scalable, and robust solutions, while addressing the shortcomings of DeFi 1.0 to foster a more resilient eco-system. 

Delegated Proof of Stake (DPoS) enhances efficiency through its consensus mechanism, which requires stakeholders to nominate delegates to validate transactions and produce new blocks. It negates the number of nodes and eliminates Proof-of-Work protocols that are hugely draining, requiring massive energy consumption. It also helps to maintain governance and accountability. Essentially, it’s a way to […]

There are two sets of keys that act as gatekeepers in cryptography – a public key and a private key. A digital signature is formulated by hashing the content of a document and then encrypting it with the sender’s private key. The receiver can then use the sender’s public key to decrypt and compare the […]

The Distributed Ledger – also referred to as a DLT – is a term used to describe the platform that chronicles and shares transactions across multiple systems in a computer network. It is primarily used for creating contracts – or smart contracting – that complete automatically upon meeting certain conditions. 

The ERC-20 term refers to a list of rules pertaining to the creation of tokens on the Ethereum blockchain. These rules must be followed in order for a token to be considered compatible with the network. Once the standard has been met, tokens can be easily transferred and integrated into other blockchain-based projects. 

Fiat could not be a simpler term to define in cryptocurrency. In layman’s terms, it means real money within traditional finance. So all your traditional currencies – US Dollar, Euro, British Pound, and Japanese Yen – all of it falls under the fiat classification. 

Flashbots refers to an organisation responsible for research into diminishing the negative externalities of Maximal Extractable Value (MEV) techniques on blockchains, which can include network congestion, privacy loss, and increased transaction costs. It is currently used exclusively with Ethereum, though there are designs on expanding the use of flashbots into other bitcoins.

A fork in blockchain has nothing to do with food, cutlery, or fine dining. Instead, a fork refers to an update or change to an existing blockchain. There can be hard forks or soft forks. The former refers to a permanent update where the new route of a blockchain changes significantly. A good example of […]

In crypto, gas refers to a fee that is generated when a user makes any transaction. Every time anyone makes an entry onto any blockchain, millions of computers around the world click into action to validate the transaction. That’s actual work that requires real-world energy – it’s here where the fees come in. These are […]

All developers of entities and protocols, such as Decentralized Autonomous Organizations (DAO), create governance tokens to enable those who own them to make decentralised decisions. Any change in a protocol that commands enough governance tokens during a democratic vote will then be implemented by smart contracts. It’s a neat snapshot of the democratisation of cryptocurrency.

A halving refers to the block reward miners reap when they complete a hash for a cryptocurrency block. For example, in Bitcoin, the reward began at 50 bitcoin per block, but it drops every four years. It’s a process that is meant to drive up the value of bitcoin by creating a supply shock, leading […]

A Hash is a unique identifier assigned to a block in a blockchain. It is formed by a set of numbers and letters and helps every single transaction remain unique. It is a powerful combination of math and security that acts as a digital fingerprint, making it almost impossible to alter any data without detection. 

To store crypto, a trader needs a wallet. A Hot Wallet creates and stores your private keys online. For example, desktop or mobile app software that operate on computers and mobile phones and are dependent on a wifi connection would be described as a hot wallet. They are convenient and easy to use but not […]

Everyone understands what an Initial Public Offering (IPO) is, but why is an Initial Coin Offering (ICO) considered the crypto alternative? During an ICO, developers sell funds for their project, offering investors a chance to support their innovation and reap the rewards. Like an IPO, the ICO comes with a myriad of risks. Always do […]

The entire success of blockchain technology depends on interoperability, which totally revolutionized Decentralized Finance (DeFi). It allows bitcoin users, for example, to transfer the value of bitcoin and put it to work in other cryptocurrencies, such as Ethereum. It means users can move their value to wherever it will work best for them.

The term P2P is the abbreviation of Peer-To-Peer in crypto terminology. This means the ability for participants to communicate between each other within a network without the need for an intermediary, like a bank or a Centralized Exchange platform. Bitcoin is the ultimate example of a P2P network in this sense. 

Know Your Customer, or KYC, is a term referring to the process of checking an individual’s identity to protect against money laundering. It typically involves collecting personal information from customers such as name, address, date of birth, government-issued identification documents, and proof of residence. 

Layer-0 is the lowest stack level in the blockchain. It represents day dot on all technologies that make today’s iteration of the blockchain achievable. They form the foundations on which Layer-1 is built, which in turn provides the basis for Layer 2, and so on. All Layer-0 is essential in dictating how other blockchains interact […]

Layer-1 technology refers to the foundational blockchain infrastructure that directly handles all essential functions of a blockchain network. This includes transaction validation, consensus mechanisms, data storage, and security. A Layer-1 blockchain is self-contained and operates independently, ensuring that all transactions and processes are executed within its protocol without relying on external systems.

Layer 2 is the second layer of an off-chain network that is built on top of a blockchain, creating more capabilities for the base layer network. Those capabilities stretch to faster transaction speeds, and lower fees. All Layer 2 technology inherits the security of blockchain it is constructed upon, with transaction data having been verified […]

Miner Extractable Value (MEV), increasingly referred to as Maximal Extractable Value, is linked to the value a miner or validator can make that is extractable by manipulating the way transactions are ordered and included in a block, typically in decentralized finance (DeFi) applications. It involves lots of predictive analysis and foresight on behalf of the […]

A node is defined as a connection point between branches in a system, but in the blockchain, nodes are places in the network where information is received and sent out elsewhere – basically, every computer in a network could be classified as a node. While there are some subtle differences in technical distinctions around the […]

Blockchain oracles allow and transfer information from outside the blockchain onto the blockchain. Smart contracts, which often rely on real-world data to function properly, are unable to access information from outside of the network – current data like weather patterns, therefore, cannot be considered without the implementation of a blockchain oracle. 

While it sounds invasive and overbearing, PoA (Proof Of Authority) is merely an algorithmic process ostensibly used in permission networks that relies on the authorisation of a small group of authorities as transaction validators. It is a consensus method that drastically reduces the need for mining, thus decreasing the energy output of the process.

Like Proof Of Authority (PoA) and Proof Of Work (PoW), Proof Of Stake is a consensus mechanism that relies on validators to front up collateral to safeguard against fraud. That’s because if any transaction on the blockchain is deemed to be invalid, anything that is staked by a trader can be lost. The more a […]

Proof Of Work (PoS) is a consensus mechanism that relies on computational puzzle solving to add new blocks to the blockchain. It is a legacy operation that is often referred to as mining and was the first consensus mechanism to be widely used in the sector. With the popularity of crypto sky-rocketing over recent years, […]

A Rug Pull is a cynical strategy employed by ill-meaning cryptocurrency project leaders who disappear without notice. It is a scam which revolves inflating the price on certain digital assets, the continual pumping of money into it, before creators disappear with the funds, pulling the rug on investors in the process. 

Satoshi Nakamoto is the mysterious character or group behind the creation of bitcoin. The enigmatic individual or entity created a digital, decentralized, peer-to-peer payment system holds 800,000 bitcoin in a private waller and doesn’t touch it, so as to maintain the decentralised, incorruptible nature of it. 

Scalability is a common term used in cryptocurrency that refers to a blockchain network’s available bandwidth to handle mass transactions per second (TPS) without it affecting performance. For example, if there are slowdowns or higher transaction fees associated with a network, it’s likely because scalability is an issue. It is a vital consideration when building […]

Security tokens act as digital representations of various assets that are issued, stored, and traded through the blockchain. The use of the word “security” means the token is regulated by governing bodies. For example, fixed income, real estate, and commodity shares are examples of security tokens. They are traded on specialized token exchanges, which require […]

Security tokens act as digital representations of various assets that are issued, stored, and traded through the blockchain. The use of the word “security” means the token is regulated by governing bodies. For example, fixed income, real estate, and commodity shares are examples of security tokens. They are traded on specialized token exchanges, which require […]

A seed phrase allows users to recover access to a specific wallet. The seed phrase is randomly generated when a user sets up the wallet at the beginning of their investment journey. Typically, a string of 12 or 24 random words – randomly generated – are unique to the wallet. 

A seed phrase allows users to recover access to a specific wallet. The seed phrase is randomly generated when a user sets up the wallet at the beginning of their investment journey. Typically, a string of 12 or 24 random words – randomly generated – are unique to the wallet. 

Sharding helps improve the scalability of a blockchain by splitting it into separate parts, with each shard containing a subset of data, separate from other shards within the same blockchain. In technical terms, it’s referred to as a data partitioning technique. When a blockchain has a vast number of users, it can create latency. Sharding […]

Think of a sidechain as a perpendicular partner to the main blockchain – its role is to ease the burden on the main blockchain, with a two-way pegging mechanism facilitating a figurative bridge between different blockchains, making it easier for the transfer of data and assets.

A smart contract is a code uploaded to a blockchain and is programmed to complete an action as long as an action before it has happened. A smart contract has two key characteristics – it’s immutable (meaning it never changes) and distributable. They are commonly used in lots of decentralized exchanges to complete token switching. 

In the volatile world of cryptocurrency, a stablecoin is a relative oasis of calm. They are cryptocurrencies whose value is pegged, or tied, to that of another fiat currency (such as the US dollar), commodity, or financial instrument. 

Stablecoins Algorithmic is a form of cryptocurrency that is overseen by smart contracts. Unlike standard Stablecoins that are tied to the performance of FIAT currencies, commodities, or financial instruments, the value of Stablecoins Algorithmic are maintained through mechanisms. That means it adjusts its value according to supply and demand dynamics, which are established by complex […]

Staking is the process of committing crypto assets to support a blockchain network and confirm transactions. By doing this, the user is helping a network create the next blocks. In doing so, the user could be rewarded with returns over time. It’s a more energy efficient approach than mining. 

A Token is a physical or digital asset that can be exchanged for, or represent, a good, service, or other type of utility. Tokens are representative of value on the blockchain or in cryptocurrency. They can act as a stake, a voting right, a toll, a currency, or any store of value – it is […]

The efficiency of converting  on the blockchain can be improved by Tokenization, which is a process that uses distributed ledgers to track the ownership of assets. In turn, that simplifies the borrowing process. For example, it is easier to use the asset for collateral when the person lending you the money can more easily determine […]

Tokenomics is the process of researching and investing time into understanding a project, applying different theories, judgements, and analysis before ultimately deciding on whether to invest or not. It can evaluate the potential success or failure of any project by considering the broader market conditions in which any potential project is operating. 

A validator processes a series of transactions to confirm their collective validity before it is added to the blockchain.  Once any block has been added to the chain, it stays there, which is why the validator is such an essential part of any decentralised network. It needs to confirm that any action that has been […]

Web3 technology is solely focused on decentralization and can be described as read, write, share, and own. Unlike the current internet, where a handful of companies own basically everything (your data, your new technology, your money), Web3 allows users to own their data, content and all digital assets. It is seen as a sort of […]

Think of a Whitepaper as a masterplan for a crypto project. In this paper, there are comprehensive details that outline projects, concepts, and technologies to address problems, offer solutions, and a roadmap for implementation. It is usually produced long before anything is released. Its sole purpose is to convince and educate potential investors, developers and […]

A wrapped token is a representation of the asset that is backing it. For example, one wrapped bitcoin will always equal the price of one real bitcoin. Wrapped tokens are popular because of their multi-functionality. They allow you to send coins to other networks and place them in Decentralized Finance (DeFi) to earn interest, something […]

One of the most popular ways to make passive income in cryptocurrency is by engaging in yield farming. Money is earned by maximising a rate of return on capital by leveraging different decentralised finance (DeFi) protocols. There are multiple strategies in yield farming. 

Yield Farming Aggregators is an entire field of Decentralized Finance (DeFi) that takes on an important role in combining DeFi protocols and strategies to maximize investors’ profits.  They are also referred to as  “auto-compounders” or “yield optimizers” and can significantly increase returns. However, different aggregators require different fees – users should do comprehensive research before […]