Glossary

a

Absolute Advantage

An economics concept in which one party has a direct advantage in efficiency in producing/providing a specific good or service over another party.

Ad Hoc

A phrase of Latin origin that is used in modern English to mean "for this purpose" or "specifically for this."

Address

String of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key.

Airdrop

The distribution of digital assets to the public, either by virtue of holding a certain other token or simply by virtue of being an active wallet address on a particular blockchain

Algorithm

A sequence of unambiguous instructions used for the purpose of solving a problem.

All or None Order (AON)

An order which once placed, must either be filled in its entirety or not at all. This prevents any partial filling of orders.

All-Time High (ATH)

The highest price of a cryptocurrency in a quote​ currency, such as a dollar, BTC, ETH, or BNB

Allocation

An allotment of tokens or equity, that may be earned, purchased, or set aside for a certain investor, team, group, organization, or other related entity.

Alpha

The first look at a product released by a team, consisting of the very first version of a primitive, basic software or product.

Altcoin

A cryptocurrency that is alternative to Bitcoin. Used to describe cryptocurrencies that are not Bitcoin.

Anti Money Laundering (AML)

A framework consisting of legal and regulatory procedures to minimize and curb the flow of funds that are generated from illegal or dubious activities.

Application Programming Interface (API)

A collection of functions and procedures that allow users to interact/communicate with the data of an application or service, such as an exchange, to execute the features of the service programmatically.

Application-Specific Integrated Circuit (ASIC)

An Integrated Circuit customized for maximum performance in a particular use, rather than general-purpose use.

Arbitrage

Buying and selling of assets over different markets in order to take advantage of differing prices on the same asset.

ASIC-resistant

Achieved by requiring a large amount of memory when mining. This means that additional physical area is needed on the chip. As a result an ASIC would experience no significant speed increase.

Asking Price

The lowest price a seller is willing to accept on their sell order when trading an asset on an exchange.

Atomic Swap

Smart contract technology that enables the exchange of one cryptocurrency for another without using centralized intermediaries, such as exchanges.

Attack surface

Different points in software environments where an attacker can attempt to enter data or extract data.
b

Bear Market

A negative trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Benchmark

A measurement standard which can be used to gauge the performance of a particular asset or investment portfolio.

Bid Price

In the context of financial markets, it is the value buyers offer for an asset, such as a commodity, security, or cryptocurrency.

Bid-Ask Spread

The difference in price between the lowest asking price and highest bid price on the order book for an asset

Binance Blockchain Charity Foundation (BCF)

The world's first decentralized charity platform to advocate the concept of 'blockchain for social good'.

Binance Coin (BNB)

Launched by Binance after an initial coin offering that ended on July 3rd, 2017. Used for receiving exchange trading fee discounts among other utilities.

Binance Community Vote

When the community has the opportunity to vote for their favorite project to win a free listing on Binance.

Binance Ecosystem Fund (BEF)

An initiative by Binance to collaborate with partners who care about the blockchain/cryptocurrency ecosystem.

Binance Labs

A social impact fund and an initiative to incubate, invest, and empower blockchain and cryptocurrency entrepreneurs, projects, and communities.

Bitcoin

A cryptocurrency created by the pseudonymous developer(s) Satoshi Nakamoto. The first cryptocurrency, initially described as a "Peer-to-Peer e-cash".

Bitcoin Dominance

The ratio of Bitcoin's market capitalization versus the sum of the market capitalizations of all cryptocurrencies.

Bitcoin Pizza

The infamous Papa John's Pizza that cost Laszlo Hanyecz 10,000 Bitcoin when he offered the sum to anyone who bought a pizza for him online and ordered it to his door.

Black Swan Event

An event that is often entirely unexpected and deviates from the expected result causing widespread ramifications.

Block Explorer

An online Blockchain webpage which allows users to browse information about blocks, transactions, balances, and transaction histories.

Block Height

The number of blocks in the chain between itself and the first block on that blockchain (genesis block or block 0).

Blockchain (DLT)

A decentralized, digitized ledger that records transaction information about a cryptocurrency in a chronological order.

Bounty

A reward posted by a group or individual to incentivize certain work, behavior (such as referrals), or development.

Breakeven Multiple

The multiple of the current price by which an asset needs to appreciate in order to reach its previous all-time high.

BUIDL

Originally derived from HODL, a term referring to keeping your heads down and focusing on building your product.

Bull Market

A positive trend in prices of a market. It is widely used not only in the cryptocurrency space but also in the traditional markets.

Buy Wall

A single huge buy order or the composition of multiple large buy orders at the same price in the order book of a particular market.
c

Candidate Block

A temporary block created by mining nodes using transactions from the memory pool. Each mining node tries to add this candidate block to the blockchain.

Capitulation

Capitulation refers to a period of strong selling activity, where investors give up their positions and sell their holdings as quickly as possible.

Central Bank

A financial institution that acts as a monetary authority and manages a states currency, interest rates, and money supply.

Central Processing Unit (CPU)

The part of a computer responsible for interpreting instructions of computer programs and executing operations.

Circulating Supply

The best approximate number of cryptocurrency coins or tokens that are publicly available and circulating in the market.

Coin

A cryptocurrency or digital cash that is independent of any other platform, which is used as an exchange of value.

Commodity Futures Trading Commission (CFTC)

US-based agency responsible for regulating the derivatives markets, which includes options, swaps, and futures contracts.

Confirmation Time

The time elapsed when a transaction is submitted to the network and the time it is recorded into a confirmed block.

Credentials

Personal information. Examples include username, password, email address, qualifications and many more.

Cryptocurrency

A cryptocurrency is a digital currency that is secured by cryptography. One of its primary functions is to work as a medium of exchange within a peer-to-peer (P2P) economic system built on distributed ledger technology, which relies on cryptography to prevent frauds and counterfeiting. Most cryptocurrency systems are decentralized and maintained by a distributed network of computers (nodes) spread around the world.

Cryptography

Cryptography is a method of storing and sending data in a form so that it can only be read and processed by its intended recipient.

Custody

Ownership of one's funds or assets; in crypto, holding custody of a wallet and its assets also means holding the private keys and the responsibility of keeping funds safe.
d

Daemon

A process operating in the background waiting for a specific event or condition in order to be activated.

Decentralized Application (dApp)

Applications that run on a P2P network of computers rather than one central computer. This allows the software to run on the internet without being controlled by a single entity.

Decentralized Autonomous Cooperative (DAC)

An organization that is controlled by shareholders rather than a central authority.

Decentralized Autonomous Organization (DAO)

In general, a system of hard coded rules that define which actions an organization will take. The DAO may also refer specifically to the DAO Organization that was instantiated on the Ethereum blockchain.

Decentralized Exchange

An exchange which does not require users to deposit funds to start trading and does not hold the funds for the user. Instead, users trade directly from their own wallets.

Delisting

The removal of an asset from an exchange either as a request from the project team or as a decision made by the exchange.

Design Flaw Attack

An attack in which a malicious user purposely creates a smart-contract, decentralized market, or other software with knowledge of certain flaws in order to trick individuals interacting within the permissionless environment.

Difficulty Bomb

A significant increase in mining difficulty for a proof-of-work coin. This term is often used in reference to Ethereum's exponentially increasing difficulty.

Divergence

Divergence occurs when the price of an asset and a certain indicator (e.g. MACD, RSI) are heading in opposite directions.

Do Your Own Research (DYOR)

A valuable piece of advice. It's always wise to research a coin or token yourself instead of following what others say.

Dollar Cost Averaging (DCA)

Investing fixed dollar amounts over regular periods of time regardless of the price of the asset.

Double Spending

When a given amount of coins are spent more than once. Usually as a result of a race attack or a 51% attack.
m

Mainnet

A blockchain protocol which is fully developed and deployed where transactions are being broadcasted, verified, and recorded.

Mainnet Swap

When a coin migrates from a third party platform such as Ethereum or other token to a native on-chain token on their mainnet.

Maker

You become a “maker” when you place an order and it does not trade immediately, so your order stays in the order book and waits for someone else to fill/match with it later.

Malware

Any software program or code that is created to infiltrate and intentionally cause damage to computer systems and networks.

Margin Trading

Trading using borrowed funds - note: this is a high risk strategy and should only be done by experienced investors.

Market Capitalization

The total trading value of a given coin - calculated by the product of the supply of the coin by the current price.

Market Order

When a taker picks the best available bid or ask for a cryptocurrency, taking the price and quantity available on the order book.

Masternode

Nodes on a network that often require a minimum amount of a given coin staked in order to access staking rewards.

Merkle Tree

A way of organizing and structuring large amounts of data to make it more straightforward to process. A hash-based data structure.

Metadata

Data that includes information about other data, such as information about features of a specific transaction.

Mining

The verification of transactions on a blockchain network, in which transactions are added as entries into the blockchain ledger.

Mining Farm

A collection of many miners, often in a warehouse or large data center devoted to mining cryptocurrencies

Multisignature

Wallet which requires another party to authorize a transaction before it is broadcasted to the network.