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IQ.wiki Glossary

Navigate the dynamic world of blockchain and cryptocurrency with our comprehensive glossary. Designed for beginners and experts alike.

#1 term
A12 terms

AI Agents

AI Agents are ML-driven programs that interact with blockchain ecosystems to automate trading, smart-contract actions, DeFi operations, analytics, and governance, while raising security, transparency, and ethical concerns.

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AI Coins

AI Coins are a type of cryptocurrency that blend blockchain technology with artificial intelligence, powering projects that advance or integrate AI solutions.

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Airdrop

An airdrop is a cryptocurrency marketing tactic that involves distributing free coins or tokens to wallet addresses of active members in a blockchain community.

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Altcoin

Altcoin is any cryptocurrency other than Bitcoin, introduced as alternative options, providing various features like improved transaction speed and energy efficiency, plus new functions like stablecoins, governance, and smart contracts

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Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) is a yearly rate indicating the total cost of an investment, including interest and fees, expressed as a percentage.

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Annual Percentage Yield (APY)

Annual Percentage Yield (APY) is the compounded yearly return on an investment, often used in cryptocurrency and DeFi, yielding profits higher than APR.

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Anon

An "anon" refers to a pseudonymous or anonymous participant in the cryptocurrency or blockchain community, originally derived from internet cultures like 4chan.

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Anti-Money Laundering (AML)

Anti-Money Laundering (AML) encompasses policies, laws, and regulations designed to prevent criminals from disguising illegally obtained funds as legitimate income, requiring crypto exchanges to verify identities and report suspicious activity.

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Apeing

Apeing refers to the impulsive purchase of a new cryptocurrency token shortly after its launch, often driven by FOMO and without thorough research.

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Arbitrage

Arbitrage is a trading strategy where assets are purchased in one market and sold in another for a higher price, profiting from the price difference.

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Atomic Swap

Atomic swap is a cryptocurrency technology enabling peer-to-peer cross-blockchain trades without a third party in an automated, self-enforcing manner.

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Automated Market Maker (AMM)

An Automated Market Maker (AMM) is a decentralized trading system enabling cryptocurrency trading through smart contracts and liquidity pools, replacing traditi...

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B15 terms

Bear Market

A bear market refers to a period when cryptocurrency prices are falling or expected to fall, often driven by investor pessimism and over-supply.

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BEP-2

BEP-2 is a technical standard for the issuance and implementation of tokens on the Binance chain, defining rules for functioning in the BNB Chain ecosystem.

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BEP-20

BEP-20 is a BNB Chain token standard derived from ERC-20, aimed at optimizing efficiency and transaction costs while providing a framework for various token cre...

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BEP-721

BEP-721 is a BNB Smart Chain standard enabling creation of non-fungible tokens (NFTs), representing unique, tradable items, extending from the commonly used ERC...

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BEP-95

BEP-95 is a Binance Evolution Proposal that introduces a real-time burning mechanism of gas fees on BNB Chain to boost Tokenomics and decentralization.

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Bitcoin ETFs

Bitcoin ETFs are exchange-traded funds that track Bitcoin's value, allowing investors to invest in Bitcoin via traditional market exchanges rather than cryptocu...

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Block

A block in blockchain is a unit of data containing a list of transactions, their timestamps, and is encrypted and immutable once validated and added to the chai...

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Block Reward

Block Reward is the incentive given to cryptocurrency miners, stakers or validators for successfully securing or updating a blockchain, typically paid in the na...

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Blockchain

Blockchain is a decentralized digital ledger that records transactions across many computers, ensuring secure, unalterable, and verifiable transactions without ...

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Bonding Curve

Bonding Curve is a mathematical concept used in platforms to calculate a token's value based on its supply, acting as an automated market maker.

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Borrow Automated Market Maker (BAMM)

The Borrow Automated Market Maker (BAMM) is a Fraxswap-based lending/borrowing module that operates without external oracles or liquidity. It enables safe, non-...

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BRC-20

BRC-20 is a Bitcoin-based token standard for Ordinals, enabling the creation, minting, and transfer of fungible tokens similar to Ethereum's ERC-20.

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BUIDL

BUIDL is a term in the cryptocurrency ecosystem promoting active contribution and expansion of the blockchain, particularly in Web3, metaverse, and blockchain f...

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Bull Market

A bull market is a period of continuously rising asset prices, typically driven by a strong economy, high employment, and positive investor sentiment.

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Byzantine Fault Tolerance (BFT)

Byzantine Fault Tolerance is an algorithm enabling a network to function and reach consensus despite nodes' failures or deceptive behaviors, predominantly used ...

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C12 terms

CeDeFi (Centralized Decentralized Finance)

CeDeFi (Centralized Decentralized Finance) combines traditional finance's security with blockchain technology's accessibility, offering centralized operation of...

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CeFi (Centralized Finance)

CeFi (Centralized Finance) refers to traditional financial systems where transactions are conducted through centralized entities like banks, exchanges, often in...

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Central Bank Digital Currency (CBDC)

The Central Bank Digital Currency (CBDC) is a digital form of fiat currency issued by a country's central bank, providing a new form of digital public money.

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CEX (Centralized Exchange)

A Centralized Exchange (CEX) is a platform that facilitates the buying and selling of cryptocurrencies through a centrally controlled system.

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Circulating Supply

Circulating Supply is the total quantity of a cryptocurrency's coins or tokens currently available for trading in the market and among the public.

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CNY Stablecoins

CNY stablecoins are cryptocurrencies pegged to the Chinese Yuan. Mainland China bans unapproved tokens, promoting its e-CNY CBDC. Meanwhile, a regulated offshor...

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Cold Wallet

A cold wallet is an offline, secure storage solution for cryptocurrencies, minimizing unauthorized access risks and protecting from online threats like hacking ...

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Collateral

Collateral is an asset pledged by a borrower to a lender, used as a risk reduction measure if the borrower fails to repay a loan.

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Collateralization Ratio

The Collateralization Ratio is a measure in decentralized finance that represents the financial stability of borrowing, calculated as total collateral value ove...

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Crypto Backed Mortgage

A crypto-backed mortgage is a home loan that allows homebuyers to use their cryptocurrency holdings as collateral for a down payment, enabling them to secure a ...

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Currency Peg

A currency peg is a fixed exchange rate between two currencies, typically used by governments or central banks to stabilize the value and reduce uncertainty.

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Curve Wars

Curve Wars refers to the competitive race between decentralized finance protocols to secure liquidity and influence within the Curve Finance ecosystem via veCRV...

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D14 terms

Danksharding

Danksharding is an Ethereum rollup scaling technique that enhances transactional throughput by adding extra storage space for rollup transactions.

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Decentralized Application (dApp)

Decentralized Applications (dApp) are open-source applications that run on blockchain networks, offering transparency and security, funded by a tokenized system...

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Decentralized Autonomous Organization (DAO)

Decentralized Autonomous Organizations (DAOs) are blockchain-based entities governed by code and token holders, operating without central government influence.

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Decentralized Exchange (DEX)

A Decentralized Exchange (DEX) is a peer-to-peer platform enabling direct cryptocurrency trades via blockchain, utilizing smart contracts to eliminate intermedi...

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Decentralized Finance (DeFi)

Decentralized Finance (DeFi) refers to a financial system using blockchain and smart contracts to offer transparent services without central authorities.

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Decentralized Prediction Market

Decentralized Prediction Markets are blockchain platforms where users trade on future event outcomes. They use smart contracts and collective intelligence, or "...

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DeFi 2.0

DeFi 2.0 is an innovative wave of decentralized finance protocols focusing on enhanced liquidity, building upon prior breakthroughs like yield farming and lendi...

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Deflationary Token

A deflationary token is a cryptocurrency designed to gradually reduce its supply, typically through token burning, increasing its value and demand over time.

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Delegated Proof of Stake (DPoS)

Delegated Proof of Stake (DPoS) is a consensus mechanism where network users elect delegates to validate blockchain transactions and establish protocol rules.

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Deobank

Deobank is a concept for a decentralized on-chain bank using blockchain and DeFi tools. It allows users to maintain full control over their funds through self-c...

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DePIN

DePIN (Decentralized Physical Infrastructure Network) leverages blockchain for decentralized control and ownership of physical infrastructure, enhancing transpa...

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Derivative

A derivative in cryptocurrency is a financial tool that derives its value from an underlying asset, allowing traders to capitalise on market trends.

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Directed Acyclic Graph (DAG)

A Directed Acyclic Graph (DAG) is a graph with directed edges and no cycles, representing dependencies where each node points only in one direction.

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Double Spending Problem

Double spending problem is a phenomenon in which a single unit of currency is spent simultaneously more than once. This creates a disparity between the spending...

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E14 terms

EF Mandate

The EF Mandate is a foundational document by the Ethereum Foundation, published in March 2026. It defines the EF's role as a steward, its philosophy of 'subtrac...

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Elliptic Curve Cryptography (ECC)

Elliptic Curve Cryptography (ECC) is a key-based technique for encrypting data. ECC focuses on pairs of public and private keys for decryption and encryption of...

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ERC-1155

ERC-1155 is an Ethereum token standard that amalgamates the functionalities of ERC-20 and ERC-721, allowing one smart contract to manage multiple fungible and n...

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ERC-1400

ERC-1400 is a comprehensive framework for security tokens, enhancing compliance, transparency, and asset management.

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ERC-20

ERC-20 is the technical standard for fungible tokens created using the Ethereum blockchain.

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ERC-223

ERC-223 is an Ethereum-based token standard, an upgrade of ERC-20, allowing secure token transfers into digital wallets and solving the ERC-20 bug.

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ERC-404

ERC-404 is an experimental Ethereum token standard, developed to integrate the functions of ERC-20 fungible tokens and ERC-721 non-fungible tokens (NFTs).

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ERC-4337

ERC-4337 is an Ethereum standard enabling smart accounts with advanced functionality, simplifying user experience and promoting web3 technology adoption in the ...

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ERC-4626

ERC-4626 is a standard protocol for tokenized vaults on the Ethereum blockchain, aimed at unifying technical parameters and facilitating interoperability.

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ERC-721

ERC-721 is a non-fungible token standard on the Ethereum blockchain, facilitating creation, management, and transfer of unique digital assets within smart contr...

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ERC-777

ERC-777 is an Ethereum token standard improving on ERC-20 by simplifying token interaction, preventing token loss and enabling backward compatibility with ERC-2...

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ERC-8004

ERC-8004 is a finalized Ethereum standard for a trust layer for autonomous AI agents. It establishes a framework for on-chain identity, reputation, and validati...

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Ethereum ETFs

Ethereum ETFs are regulated funds traded on traditional exchanges that track Ethereum's value, providing indirect exposure without owning the cryptocurrency its...

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EUR Stablecoins

EUR Stablecoins are cryptocurrencies pegged 1:1 to the Euro. They combine the Euro's stability with blockchain benefits for DeFi, FX trading, and cross-border p...

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F5 terms
G6 terms
H4 terms
I3 terms
J1 term
K2 terms
L11 terms

Layer 0

Layer 0 protocols underpin Layer 1 blockchains, enhancing scalability and interoperability, and enabling customized Layer 1 blockchain development.

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Layer 1

Layer 1 blockchains are foundational networks enabling direct transaction execution, decentralized applications, and smart contracts with consensus mechanisms e...

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Layer 2

Layer 2 is an off-chain network integrated with a blockchain (Layer 1) to enhance transactional throughput, by independently processing transactions to boost ef...

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Layer 3

Layer 3 blockchains enhance Layer 1 and 2 by providing additional functionality, interoperability, and performance improvements for secure, scalable, and effici...

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Leverage

Leverage, in finance, refers to the use of borrowed capital to amplify potential returns from trading financial assets, such as cryptocurrency.

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Liquid Staking

Liquid Staking is a blockchain solution enabling users to earn staking rewards without compromising token liquidity, through trading derivative tokens that repr...

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Liquidation

Liquidation is the forced closure of a trader's positions in the cryptocurrency market when their margin account can't support their losses or maintenance requi...

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Liquidity Mining

Liquidity mining is a token distribution process where users earn tokens by providing liquidity to a decentralized protocol, often gaining governance rights wit...

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Liquidity Pool

A liquidity pool, is a pool of tokens that are locked in a smart contract.

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Liquidity Providers

In the cryptocurrency and DeFi industry, the term Liquidity Providers refers to DEX  users who fund a liquidity pool.

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Lock-and-Mint

Lock-and-mint is a cross-chain bridge where assets are locked on a source chain and equivalent wrapped tokens minted on a destination chain; burning the wrapped...

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M10 terms

Mainnet

Mainnet is the fully functional, public blockchain where cryptocurrency transactions are broadcasted, verified, and recorded, essentially operating as the final...

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Market Capitalization

Market Capitalization, often used in cryptocurrency context, refers to the total market value of a coin or token, estimated by multiplying its current market pr...

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Maximal Extractable Value (MEV)

Maximal Extractable Value (MEV) is the additional profit that can be extracted by blockchain block producers through rearranging, excluding, or including transa...

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Memecoins

Memecoins are cryptocurrencies inspired by internet memes, emphasizing humor and community engagement over traditional financial objectives, with Dogecoin as a ...

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Mempool

A mempool is a decentralized waiting area within a blockchain where unconfirmed transactions are stored before being added to a block. They impact transaction p...

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Merkle Tree

A Merkle Tree is a data structure in computer science, used in blockchain technology for efficient and secure encoding of blockchain data.

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Metaverse

The Metaverse is an interconnected, immersive 3D virtual realm, merging the virtual and physical worlds, and allowing interaction, collaboration and exploration...

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Mining

Cryptocurrency mining is validating and recording transactions on a blockchain network while creating new units of a specific cryptocurrency

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Mining Pool

A mining pool is a group of cryptocurrency miners who combine their computational resources to increase the likelihood of mining a new blockchain transaction bl...

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Minting

Minting is a decentralized process in cryptocurrency systems that creates new tokens or coins by validating data and recording it onto a blockchain using proof-...

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N4 terms
O1 term
P13 terms

PACE Act

The Payments Access & Consumer Efficiency (PACE) Act, a bipartisan bill introduced Apr 21, 2026 by Reps Young Kim and Sam Liccardo, lets qualified nonbank payme...

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Panoramic Governance (PG)

Panoramic Governance (PG) enhances governance and protocol growth in Layer 2 blockchains, incentivizing participants via sequencer fees and token allocation.

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Peer to Peer Trading (P2P)

Peer-to-peer trading (P2P) is a decentralized system that allows direct asset exchange between users without any intermediaries, common in cryptocurrency transa...

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POL (Proof of Liquidity)

POL (Proof of Liquidity) is a consensus mechanism that uses Balancer pool tokens as staking assets, promoting liquidity and capital efficiency in decentralized ...

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POL (Protocol Owned Liquidity)

POL (Protocol Owned Liquidity) is a decentralized finance innovation by Olympus DAO, aiming to prevent over-incentivization of liquidity providers by having pro...

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Privacy Pools

Privacy Pools are a smart contract-based tool enhancing transaction privacy on blockchain, by allowing users to prove funds legitimacy without revealing their t...

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Proof of Authority (PoA)

Proof of Authority (PoA) is a blockchain consensus mechanism where authorized validators produce blocks, ensuring fast transactions with identity-based accounta...

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Proof of History (PoH)

Proof of History (PoH) is a consensus mechanism developed by Anatoly Yakovenko for the Solana blockchain, enabling high transaction speeds through cryptographic...

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Proof of Intelligence (POI)

Proof of Intelligence (PoI) is a blockchain consensus mechanism that rewards network participants for performing valuable AI-related computational tasks. It aim...

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Proof of Reserves (PoR)

Proof of Reserves (PoR) is a cryptographic audit for crypto entities that proves their on-chain assets cover customer deposits 1:1, ensuring solvency and transp...

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Proof-of-Stake (PoS)

Proof of stake (PoS) is a type of consensus algorithm by which a cryptocurrency blockchain network aims to achieve distributed..

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Proof-of-Time (PoT)

Proof-of-Time (PoT) is a consensus algorithm enhancing blockchain efficiency and security through time-based validation and fixed staking.

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Proof-of-Work (PoW)

Proof-of-Work (PoW) is a consensus mechanism used in blockchain technology, originally implemented by Bitcoin, to validate transactions and prevent fraudulent a...

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R1 term
S10 terms

Seed Phrase

Human-readable mnemonic (BIP-39) used to recover hierarchical-deterministic cryptocurrency wallets.

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SGD Stablecoins

SGD stablecoins are cryptocurrencies pegged 1:1 to the Singapore Dollar (SGD). The most prominent is XSGD, issued by StraitsX, which is fully backed by SGD rese...

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Sharding

Sharding is a process in blockchain technology where a large database is split into smaller, independent units called shards for improved scalability and transa...

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Slippage

Slippage is the difference between the expected and actual trading price, impacted by market volatility, liquidity, and rapid price movements.

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Smart Contract

A smart contract is a self-executing agreement, automated by computer programs, making transactions trackable and irreversible, predominantly used in decentrali...

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Solana ETFs

Solana ETFs are funds that track Solana's performance on traditional exchanges, offering regulated exposure without direct ownership of the cryptocurrency.

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SPL-20 (Solana Program Library-20)

SPL-20, abbreviated for Solana Program Library-20, stands as a standardized token format within the Solana blockchain ecosystem.

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Stablecoin

Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some...

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Staking

Staking is a blockchain process where participants lock up cryptocurrencies to validate transactions, earning additional rewards for successful validation while...

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Sybil Attack

A Sybil attack is a security threat where a single entity creates multiple fake identities or nodes to gain control over a network, often targeting decentralize...

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T10 terms

Tendermint

Tendermint is a Byzantine Fault Tolerance consensus mechanism created by Jae Kwon and Ethan Buchman, enabling secure, consistent inter-machine application launc...

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Testnet

Testnet is a prototype blockchain used by developers for testing network upgrades, applications, and smart contracts before public release, without risking actu...

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Tokenization

Tokenization converts assets into tradable, divisible, and liquid digital tokens on a blockchain, bridging the gap between traditional and decentralized finance...

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Tokenized Securities

Tokenized securities are digital representations of traditional financial instruments like stocks or bonds on a blockchain. This process enables fractional owne...

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Tokenomics

Tokenomics is the study of how cryptocurrencies work within the broader ecosystem.

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Total Value Locked (TVL)

Total Value Locked (TVL) is the dollar value of all coins or tokens locked into a decentralized finance (DeFi) platform, indicating its growth and investor depo...

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Trading Fee

A trading fee is a commission charged by a cryptocurrency exchange for conducting transactions, calculated as a percentage of transaction value or based on trad...

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TRC-20

TRC-20 is a token standard on the TRON blockchain for deploying smart contracts and creating fungible tokens, ensuring ecosystem compatibility.

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TRY Stablecoins

TRY stablecoins are cryptocurrencies pegged 1:1 to the Turkish Lira (TRY), designed to bridge traditional Turkish finance with the global digital asset ecosyste...

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TWAMM (Time-Weighted Automated Market Maker)

TWAMM (Time-Weighted Automated Market Maker) is a proposed financial protocol combining AMM and TWAP concepts, enabling traders to execute block orders over tim...

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U2 terms
V1 term
W2 terms
Y1 term
Z4 terms
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