Tools · Glossary

Crypto word of the day.

Glossary

Blockchain

A shared ledger of transactions kept in linked blocks and copied across many computers.

Wallet

Software or a device that stores the keys controlling your crypto.

Address

A public string, like an account number, that others can use to send you crypto.

Private key

The secret that signs transactions; whoever holds it controls the funds.

Seed phrase

A list of 12 or 24 words that can restore a wallet's keys and must never be shared.

Coin

The native unit of a blockchain, such as BTC, ETH, or SOL.

Token

A unit created on top of an existing blockchain by an app or issuer.

Stablecoin

A token designed to keep a steady value against a currency such as the U.S. dollar.

Tokenization

Recording a claim on a real-world or digital asset as a token on a blockchain.

Proof of work

A way to secure a blockchain where miners spend computing power to add blocks.

Proof of stake

A way to secure a blockchain where validators lock up coins to propose and confirm blocks.

Staking

Locking coins to help run a proof-of-stake network.

Gas

The fee paid to a network to process a transaction, usually paid in its native coin.

Exchange

A platform where users trade one asset for another.

Custodial

A setup where a provider manages access to your crypto account for you, under its own rules.

Self-custody

A setup where you hold your own keys and are fully responsible for them.

Smart contract

A program stored on a blockchain that runs automatically when its conditions are met.

Oracle

A service that brings outside data, like reference prices, onto a blockchain.

Layer 1

A base blockchain, such as Bitcoin, Ethereum, or Solana, that settles its own transactions.

Layer 2

A network built on top of a layer 1 that batches transactions and settles back to it.

Block explorer

A website that lets anyone look up transactions and addresses on a blockchain.

DeFi

Short for decentralized finance: lending, trading, and other financial apps run by smart contracts.