Glossary

Your guide to understanding cryptocurrency and programmable finance.

A

Account Abstraction

Making crypto wallets programmable and more user-friendly through smart contracts

Blockchain Technology

Agent Payments Protocol (AP2)

Lets AI agents send/receive payments autonomously in stablecoins

Agentic AI

Agent-to-Agent (A2A) Framework

Communication layer for autonomous system transactions

Agentic AI

AI RMF (AI Risk Management Framework)

NIST framework for identifying and managing risks from artificial intelligence systems

Regulation

AI-to-AI Payments

Machine-to-machine transactions using digital assets

Agentic AI

Airdrop

Free distribution of cryptocurrency to wallet holders, often as a promotional tactic

Token Distribution

Algorithmic Trading

Using computer programs to execute trades based on predefined rules

Trading

Altcoin

Any cryptocurrency other than Bitcoin

Cryptocurrency

Alternative Data

Non-traditional data sources used for investment and business insights

Data Analytics

Annual Percentage Yield (APY)

Compounded yearly return on an investment

DeFi Metrics

Ape / Ape In

Investing impulsively without research based on FOMO or herd mentality

Trading Psychology

API

Connective tissue linking banks, fintechs, AI systems

Infrastructure

Arbitrage

Buying and selling an asset across different platforms to profit from price differences

Trading

ART (Asset-Referenced Token)

Crypto token under MiCA that maintains stable value by referencing multiple assets

Technology

ASIC (Application-Specific Integrated Circuit)

Specialized hardware designed for mining cryptocurrencies efficiently

Mining

Asset Segregation

Legal and operational separation of client crypto-assets from service provider's own holdings

Regulation

Asset Tokenization

Converting real-world assets into digital tokens on a blockchain

Tokenization

ATH (All-Time High)

The highest price ever reached by a cryptocurrency

Trading

ATL (All-Time Low)

The lowest price ever reached by a cryptocurrency

Trading

Authentication Layer

Digital trust tier authorizing transactions

Infrastructure

Automated Clearing House (ACH)

Electronic network for financial transactions in the United States

Payment Systems

Automated Market Maker (AMM)

Algorithmic trading model using liquidity pools instead of order books

DeFi

Autonomous Agents / AI Agents

Software entities capable of performing tasks and executing transactions independently

Agentic AI

B

Bag Holder

An investor holding a cryptocurrency that has significantly dropped in value

Trading

Banking-as-a-Service (BaaS)

Banks providing regulated infrastructure to fintechs via APIs

Fintech

Behavioral Analytics

Analyzing user behavior patterns to detect fraud and improve security

Security & Analytics

Beneficial Ownership

Identification of natural persons who ultimately own or control legal entity customers

Regulation

Beneficiary

Person or entity receiving a virtual asset transfer under Travel Rule requirements

Regulation

BIS (Bank for International Settlements)

International financial institution serving central banks and fostering monetary and financial cooperation

Regulation

Bitcoin

The first decentralized cryptocurrency, created in 2009 by Satoshi Nakamoto

Cryptocurrency

Blockchain

A decentralized, digital ledger of transactions maintained across multiple computers

Blockchain Fundamentals

Blockchain Analytics

Tools tracing cryptocurrency transactions and identifying risks for compliance purposes

Technology

Blockchain Explorer

A tool used to view all transactions on a blockchain

Blockchain Tools

BNB Chain

A blockchain developed by Binance for fast, low-cost transactions and smart contracts

Blockchain Platforms

Bridge

A connection between two blockchains that allows the transfer of assets or data

Interoperability

Britcoin (Digital Pound)

Bank of England's proposed CBDC providing digital cash for everyday payments

Technology

BSA (Bank Secrecy Act)

U.S. anti-money laundering law applied to crypto businesses by FinCEN

Regulation

BTFD / BTD (Buy The F***ing Dip)

Strategy of buying assets during price declines, often exploited in dump phases

Trading Psychology

Burning

The process of permanently removing cryptocurrency from circulation to reduce supply

Tokenomics

BUSD

A stablecoin pegged 1:1 to the US Dollar, issued by Paxos and approved by NYDFS (Note: Being phased out as of 2024)

Stablecoins

C

Carbon Credit Tokenization

Representing carbon credits as blockchain tokens for transparent trading

Tokenization

CASP (Crypto-Asset Service Provider)

Entity providing crypto services under EU MiCA requiring authorization and regulatory compliance

Regulation

CASP License

Regulatory authorization required to provide crypto asset services in the EU under MiCA

Regulation

CBDC (Central Bank Digital Currency)

Digital form of a nation's fiat currency issued and guaranteed by the central bank

Technology

CFTC (Commodity Futures Trading Commission)

U.S. federal agency regulating derivatives markets including crypto commodity futures

Regulation

Circulating Supply

The number of cryptocurrency coins currently in circulation

Tokenomics

Client Assets

Crypto or fiat funds belonging to customers entrusted to a CASP or custodian

Regulation

Cold Staking

Staking cryptocurrency from a wallet that remains offline

Staking

Cold Wallet

A cryptocurrency wallet that is not connected to the internet, used for secure storage

Security

Compliance Automation

Using technology to automate regulatory compliance processes

Compliance

Compliance Liability

Accountability when machines make decisions

Compliance

Consensus Mechanism

The process used by blockchain networks to agree on the validity of transactions

Blockchain Fundamentals

Cryptography

The science of encoding and decoding information, used to secure cryptocurrency transactions

Security

Custodial Wallet

A wallet where a third party holds the private keys for you

Wallets

Custody Solution

Service for securely storing and managing cryptocurrency assets

Security

Customer Due Diligence (CDD)

Process of verifying customer identity and assessing risk

Compliance

D

DAI

A decentralized, algorithmic stablecoin pegged to the US Dollar and backed by crypto collateral through the MakerDAO protocol

Stablecoins

DAO (Decentralized Autonomous Organization)

A group governed by smart contracts and blockchain technology, without centralized leadership

Governance

dApp (Decentralized Application)

An application that operates on a blockchain instead of a centralized server

Blockchain Applications

Data Availability Layer

Layer ensuring blockchain data is accessible and verifiable

Blockchain Infrastructure

Data Minimization

Privacy principle requiring collection of only necessary personal data for specified purposes

Regulation

Data Moat / Cloud Lock-in

Power from owning user data

Infrastructure

DCA (Dollar-Cost Averaging)

Investment strategy of buying fixed amounts at regular intervals regardless of price

Investment Strategy

DeFi (Decentralized Finance)

Financial systems built on blockchain that operate without intermediaries like banks

DeFi

Degen

Someone who makes risky or speculative investments in crypto, often without much research

Trading Culture

DePIN (Decentralized Physical Infrastructure Networks)

Blockchain networks incentivizing participants to build and operate physical infrastructure like wireless networks or storage

Technology

Diamond Hands

Holding assets through volatility without selling despite losses or pressure

Trading Psychology

Digital Dollar

Proposed U.S. central bank digital currency, currently banned by executive order

Technology

Digital Euro

Proposed CBDC issued by European Central Bank to complement cash and private payments

Technology

Digital Payment Rails

Infrastructure (blockchains, APIs, stablecoins) moving value

Infrastructure

Digital Yen

Bank of Japan's CBDC pilot testing retail use with commercial bank integration

Technology

DLT Pilot Regime

EU regulatory sandbox allowing distributed ledger technology testing for securities trading and settlement

Regulation

DREX (Digital Real)

Brazil's blockchain-backed CBDC enabling smart contract settlements and programmable compliance

Technology

Dusting Attack

A tactic where attackers send small amounts of cryptocurrency to a wallet to compromise its privacy

Security Threats

DYOR (Do Your Own Research)

Disclaimer urging investors to conduct independent research before investing

Trading Psychology

E

e-CNY (Digital Yuan)

China's retail CBDC issued by People's Bank of China for domestic and international use

Technology

e-INR (Digital Rupee)

India's tokenized blockchain-based central bank digital currency for retail and wholesale use

Technology

e-Krona

Sweden's CBDC pilot testing retail use and legal framework alignment

Technology

e-Naira

Africa's first CBDC launched by Central Bank of Nigeria in 2021

Technology

eIDAS 2.0

Updated EU framework for electronic identification and trust services introducing European Digital Identity Wallets

Regulation

EIP-4337

Ethereum standard enabling account abstraction without protocol changes

Ethereum Standards

Embedded Finance

Integration of financial services into non-financial apps

Fintech

EMT (E-Money Token)

Crypto token under MiCA that maintains stable value by referencing a single fiat currency

Technology

Enhanced Due Diligence (EDD)

Heightened customer verification for high-risk individuals or entities

Compliance

ERC-20

A technical standard used for creating and issuing tokens on the Ethereum blockchain

Token Standards

ESMA (European Securities and Markets Authority)

EU agency coordinating securities regulation and supervising credit rating agencies and trade repositories

Regulation

Ethereum

A decentralized blockchain platform that enables smart contracts and decentralized applications

Blockchain Platforms

EUDI Wallet (European Digital Identity Wallet)

EU government-backed digital identity system using zero-knowledge proofs for privacy-preserving verification

Technology

EURC (Euro Coin)

Euro-backed stablecoin issued by Circle maintaining 1:1 parity with EUR

Stablecoin

Exchange

A platform where users can buy, sell, or trade cryptocurrencies

Trading Platforms

Exit Liquidity

Late buyers providing liquidity for insiders to sell holdings at inflated prices

Market Sentiment

F

FATF (Financial Action Task Force)

Global standard-setter for combating money laundering and terrorist financing

Regulation

FCA (Financial Conduct Authority)

UK's financial regulator overseeing conduct of firms and markets to protect consumers

Regulation

FEAT Principles

Singapore framework for responsible AI use in financial services emphasizing fairness, ethics, accountability, and transparency

Regulation

Fiat Currency

Traditional government-issued currency, such as USD, EUR, or NIS

Currency

FinCEN (Financial Crimes Enforcement Network)

U.S. Treasury bureau regulating crypto entities as Money Services Businesses under AML law

Regulation

FINMA (Swiss Financial Market Supervisory Authority)

Switzerland's independent financial regulator overseeing banks, insurance, exchanges, and crypto firms

Regulation

FINRA (Financial Industry Regulatory Authority)

U.S. self-regulatory organization overseeing broker-dealers and securities market conduct

Regulation

Flash Loan

Uncollateralized loan repaid within the same transaction, often used in DeFi arbitrage

DeFi

Flash Loan Attack

Exploiting DeFi protocols using uncollateralized flash loans

Security Threats

FOMO (Fear of Missing Out)

The feeling of urgency to invest in an asset due to rising prices

Trading Psychology

Fork

A change to a blockchain's protocol that creates two separate chains

Blockchain Fundamentals

Formal Verification

Mathematical proof that smart contract code behaves as intended

Security

Fractional Ownership

Dividing asset ownership into smaller, tradeable shares

Tokenization

Fraud Detection

Systems and processes for identifying fraudulent transactions or activities

Security

FRAX

A fractional-algorithmic stablecoin pegged to the US Dollar, combining algorithmic and collateralized mechanisms

Stablecoins

FSB (Financial Stability Board)

International body monitoring global financial system and coordinating regulatory policies

Regulation

FUD (Fear, Uncertainty, Doubt)

Negative information (real or false) spread to manipulate markets

Market Sentiment

Full Node

A node that stores the entire history of a blockchain

Blockchain Infrastructure

G

H

I

J

K

L

M

Machine Commerce

Trade between machines without human clearance

Agentic AI

Machine Learning (ML)

AI systems that learn patterns from data without explicit programming

AI Technology

Mainnet

The live, fully functional version of a blockchain

Blockchain Infrastructure

Market Cap

The total value of a cryptocurrency, calculated as price multiplied by circulating supply

Investment Metrics

Market Manipulation

Artificial interference with price or volume to mislead market participants

Regulation

MAS (Monetary Authority of Singapore)

Singapore's central bank and integrated financial regulator overseeing banking, insurance, and securities

Regulation

Meme Coin

A cryptocurrency inspired by internet memes or jokes, often lacking inherent utility

Cryptocurrency

Merkle Tree

A data structure used in blockchain to verify transactions efficiently

Blockchain Technology

MEV (Maximal Extractable Value)

Hidden profit from controlling transaction order

DeFi

MiCA (Markets in Crypto-Assets Regulation)

An EU regulatory framework standardizing crypto rules for issuers and service providers

Regulation

MiCA Compliance

Meeting regulatory requirements under the EU's Markets in Crypto-Assets regulation

Regulation

MiFID II

EU directive governing financial markets and investment services

Regulation

Mining

The process of verifying and adding transactions to a blockchain, often rewarded with cryptocurrency

Mining

Mixing (Tumbling)

Obscuring cryptocurrency transaction origins by pooling and redistributing funds

Technology

Modular Blockchain

Blockchain design separating execution, consensus, and data availability into specialized layers

Blockchain Architecture

Moon / To the Moon

Expectation of rapid, extreme price increase often used in hype and manipulation

Market Sentiment

Moonshot

High-risk speculative investment with potential for extreme returns or total loss

Market Sentiment

Multi-Party Computation (MPC)

Cryptographic method allowing multiple parties to jointly compute without revealing individual inputs

Cryptography

Multi-Signature (Multisig)

Wallet requiring multiple private key signatures to authorize transactions

Security

N

O

P

Paper Hands

Selling assets quickly during downturns or pressure instead of holding through volatility

Trading Psychology

Paper Wallet

A physical document containing private and public keys, used for storing cryptocurrency offline

Security

Passporting

Right to offer crypto services across EU member states with home state authorization

Regulation

Payment Rails

Infrastructure and networks that enable money transfer between parties

Payment Systems

Payment Service Provider (PSP)

Company processing electronic payments for merchants

Payments

PEP (Politically Exposed Person)

Individual in prominent public position requiring enhanced due diligence for corruption risk

Regulation

PII (Personally Identifiable Information)

Information that can identify an individual requiring privacy protection under data regulations

Regulation

Pre-emptive Custody

Delegating asset control in advance to AI systems under pre-authorized limits

Agentic AI

Predictive Analytics

Using data, statistics, and ML to forecast future outcomes

Data Analytics

Price Oracle

Feeds real-world asset prices to smart contracts

DeFi Infrastructure

Privacy Coin

Cryptocurrency with enhanced anonymity features obscuring transaction details

Technology

Private Key

A secret code that allows you to access and manage your cryptocurrency

Security

Programmable Control

Coded governance with embedded policy/permission

Agentic AI

Programmable Custody

Asset control defined by algorithms

Agentic AI

Programmable Finance

Money movement governed by code, not people

Agentic AI

Proof of Reserves (PoR)

Transparency mechanism verifying exchanges hold users' funds 1:1 in reserve

Technology

Proof of Stake (PoS)

A consensus mechanism where validators are chosen based on the amount of cryptocurrency they hold

Consensus Mechanisms

Proof of Work (PoW)

A consensus mechanism where miners solve complex problems to validate transactions

Consensus Mechanisms

Proto-Danksharding

Ethereum upgrade introducing data blobs for cheaper Layer 2 transactions

Ethereum Scaling

Public Key

A code that allows others to send cryptocurrency to your wallet

Security

Pump and Dump

Coordinated scheme to artificially inflate asset price before mass sell-off

Market Sentiment

PYUSD

A stablecoin issued by PayPal and Paxos, pegged 1:1 to the US Dollar and designed for payments and transfers

Stablecoins

Q

R

S

SAFU (Secure Asset Fund for Users)

Binance emergency fund term now used broadly to claim funds are secure

Security

Sanctions Screening

Checking customers and transactions against government sanctions lists

Compliance

Sand Dollar

World's first fully deployed retail CBDC launched by Central Bank of Bahamas in 2020

Technology

SAR (Suspicious Activity Report)

Regulatory filing to authorities reporting suspected money laundering or financial crime

Regulation

SEC (Securities and Exchange Commission)

U.S. federal agency regulating securities markets and protecting investors

Regulation

Seed Phrase

A series of 12 or 24 words used to back up and recover a cryptocurrency wallet

Security

Shill

Promoting or hyping a crypto asset for personal gain or paid compensation

Market Sentiment

Smart Contract

Self-executing code on a blockchain that automates transactions

Blockchain Technology

Smart Contract Audit

Professional review of smart contract code for vulnerabilities and bugs

Security

SOC 2 (Service Organization Control 2)

Auditing standard for service providers managing customer data focusing on security, availability, and privacy

Regulation

Soft Fork

A blockchain update that is backward-compatible

Blockchain Fundamentals

Solana

A high-performance blockchain known for fast transactions and low fees

Blockchain Platforms

Stablecoin

A cryptocurrency pegged to a stable asset, such as USD or gold

Cryptocurrency

Staking Pool

A group of crypto holders combining resources to validate blocks and earn rewards

Staking

Strict Liability

Legal responsibility for harm without requiring proof of negligence or fault

Regulation

SWIFT

Global messaging network for international bank transfers

Payment Systems

T

U

V

W

X

Y

Z