Glossary

Every term used on this site, explained in plain language.

2FA (two-factor authentication): 2FA is like needing both a key and a PIN for the same door. An authenticator app or hardware key is generally considered safer than SMS codes, which can be intercepted through SIM swapping.; Related terms:Phishing Private key Exchange Address whitelist
Account model: In an account model, the network keeps a running balance per account and subtracts or adds on each transaction, like a bank statement. Ethereum, XRP Ledger and Algorand use account-based designs.; Related terms:UTXO (unspent transaction output)Address Minimum reserve / minimum balance Smart contract
Address: An address is the destination you give someone to receive funds. Share it freely, but always double-check it before sending, since transactions cannot normally be reversed and each network uses its own format.; Related terms:Public key Wallet Memo / destination tag Block explorer
Address whitelist: A whitelist is like a list of approved payees at a bank. If someone breaks into your account, they cannot send funds to their own address. New addresses typically have a waiting period before they become active.; Related terms:2FA (two-factor authentication)Address Exchange Test transaction
Airdrop: An airdrop is like a company sending free samples to selected addresses. Genuine ones exist, but scammers also send unsolicited tokens or links that lead to phishing sites. Never connect a wallet or enter a seed phrase to claim one without verifying the source.; Related terms:Token Vesting Wallet Phishing
AML (anti-money laundering): AML rules oblige firms to monitor and report suspicious activity, like a bank teller flagging unusual cash deposits. For users it often means identity checks and questions about where funds came from.; Related terms:KYC (know your customer)Source of funds Exchange SEC
APY (annual percentage yield): APY expresses a yearly rate as if rewards were reinvested, like interest on interest. Quoted figures are not guaranteed, can change often and are usually paid in the asset itself, so their fiat value can move.; Related terms:Staking Inflation Volatility Delegation
Bear case: A bear case is a structured argument about the risks and weaknesses of a project, such as competition, regulation or concentration. Reading it next to the bull case gives a balanced picture. It is not advice.; Related terms:Bull case Volatility Market capitalization Governance
Block explorer: A block explorer is like a public tracking page for parcels: paste a transaction ID and see its status. It shows what happened on-chain, so you can confirm that a transfer arrived. Each network has its own explorers.; Related terms:Address Node Blockchain Test transaction
Blockchain: A blockchain is a list of transaction blocks, each one cryptographically linked to the one before it. Think of a notebook whose pages are sealed to the previous page, so changing an old page would visibly break every page after it. Many computers keep copies, so no single party owns the record.; Related terms:Distributed ledger Consensus Node Validator
Bridge: A bridge usually locks assets on one chain and issues a representation on another, like a coat-check ticket. Bridges concentrate value and have been frequent targets of hacks, so they carry additional smart-contract and trust risk.; Related terms:Interoperability Layer 2 (L2)Network selection Sidechain
Bull case: A bull case is a structured argument for why a project could succeed. It is only one side: it should be read together with the bear case. Neither is a prediction or advice.; Related terms:Bear case Volatility Market capitalization Staking
Burn: Burning destroys tokens for good, like shredding banknotes. Some networks burn part of the fees, and some projects burn tokens on a schedule. It reduces supply but does not by itself guarantee any effect on price.; Related terms:Total supply Inflation Maximum supply Gas fee
Capital gains tax: Capital gains tax applies to the difference between what you paid and what you received. Rules, rates and what counts as a taxable disposal differ by country and change over time. See the tax learn page at /learn/tax and consult a qualified professional.; Related terms:Cost basis Taxable event FIFO (first in, first out)CPA / tax advisor
CBDC: A central bank digital currency is official money in digital form, like a banknote that lives in an app and is a direct claim on the central bank. It differs from a stablecoin, which is issued by a private company. Designs and status differ by country.; Related terms:Stablecoin ISO 20022 Distributed ledger SWIFT
CEX (centralized exchange): A CEX works like a bank-style platform: you deposit funds, trade inside the company's system and withdraw later. It is simple to use, but you depend on the company's security and honesty, which is why proof of reserves matters.; Related terms:Exchange Custodial KYC (know your customer)Proof of reserves
Circulating supply: Circulating supply counts the units out in the market, like banknotes in people's hands rather than those still in the printer's vault. Different data sites may calculate it differently, since judging what is locked is not always clear-cut.; Related terms:Market capitalization Total supply Maximum supply Vesting
Coin: A coin is the base currency of its own network and is used to pay fees and reward participants. People often use coin and token interchangeably, but strictly a coin lives on its own chain, while a token is built on another one.; Related terms:Token Native token Layer 1 (L1)Wallet
Cold storage: Cold storage is the long-term vault approach: keys never touch an internet-connected device. It reduces online theft risk, but needs careful backups against fire, loss and mistakes.; Related terms:Cold wallet Hardware wallet Seed phrase Inheritance planning
Cold wallet: A cold wallet is like a safe at home compared with cash in a pocket. Keeping keys offline makes remote theft much harder, though physical loss, damage or mistakes remain risks. Hardware wallets are the most common type.; Related terms:Hot wallet Hardware wallet Cold storage Private key
Consensus: Consensus is the rulebook that lets many independent computers settle on one version of the ledger. Imagine a jury that must reach a verdict without a judge, using agreed voting rules. Different networks use different mechanisms, such as proof of work, proof of stake or voting among validators.; Related terms:Validator Blockchain Finality Proof of stake (PoS)
Cost basis: Cost basis is your starting point for working out profit or loss, like the purchase receipt for an item. Keeping good records of every purchase matters. The treatment of fees and methods varies by country; see /learn/tax.; Related terms:Capital gains tax FIFO (first in, first out)Taxable event CPA / tax advisor
CPA / tax advisor: A CPA (in Israel, a certified public accountant or tax consultant) is the right person for questions about your own reporting duties. General articles, including the overview at /learn/tax, cannot replace advice tailored to you.; Related terms:Capital gains tax Taxable event Cost basis Source of funds
Custodial: With a custodial service, such as most exchanges, you hold a claim on the company rather than the keys themselves, like money in a bank account. It is easier to recover access, but you rely on the provider's security and solvency.; Related terms:Non-custodial Custody Exchange KYC (know your customer)
Custody: Custody is who controls the keys: a bank-style custodian, an exchange or you. Institutional custodians use segregated accounts and audits, while self-custody places all responsibility on the owner.; Related terms:Custodial Non-custodial Cold storage Proof of reserves
DAG (directed acyclic graph): A DAG links items so that each points to earlier ones and no path ever returns to its start, like a family tree. Some ledgers, including IOTA's Tangle and Hedera's hashgraph, use a DAG so that many transactions can be recorded in parallel rather than in a single line of blocks.; Related terms:Distributed ledger Blockchain Hashgraph UTXO (unspent transaction output)
DAO (decentralized autonomous organization): A DAO is like a club whose bylaws are enforced by software and where members vote with tokens. In practice, participation is often low and a small number of holders can dominate, and legal status varies by country.; Related terms:Governance Smart contract Token Foundation
DCA (dollar-cost averaging): DCA is a schedule-based approach, like paying into a savings plan monthly. It spreads purchases across time, which may reduce timing risk but does not remove the risk of loss. It is a method, not a recommendation.; Related terms:Volatility Spot trading Exchange Cost basis
DeFi (decentralized finance): DeFi is a set of apps that let people swap, lend or borrow using smart contracts, like an automated counter with no bank teller. It is open to anyone with a wallet, but users carry risks such as code bugs, price swings and no customer support.; Related terms:DEX (decentralized exchange)Liquidity Smart contract Oracle
Delegated proof of stake (DPoS): In delegated proof of stake, holders vote for a small group of block producers, much like electing representatives to a council. A smaller group can be faster, but power is more concentrated. Rules and group sizes differ by network.; Related terms:Proof of stake (PoS)Delegation Validator Governance
Delegation: Delegation is like lending your voting weight to a representative who does the work. In many networks your coins stay in your wallet, but the validator you choose affects rewards and sometimes risk.; Related terms:Staking Validator Delegated proof of stake (DPoS)Slashing
Derivatives: A derivative is a bet-like contract tied to an asset's price rather than the asset itself, similar to insurance tied to an outcome. They can be complex and, combined with leverage, can lead to losses larger than expected. Availability depends on local rules.; Related terms:Spot trading Leverage Volatility Exchange
DEX (decentralized exchange): A DEX lets you swap tokens without handing funds to a company: the trade is carried out by code. It is like a currency vending machine you operate yourself. Prices come from pools of funds, so fees, slippage and contract risk apply.; Related terms:DeFi (decentralized finance)Liquidity Slippage Non-custodial
Distributed ledger: A distributed ledger is a database copied across many participants who follow shared rules to agree on its contents. It is like a group chat where everyone keeps the same history instead of one person holding the master copy. Not every distributed ledger groups data into blocks; some use graphs or other structures.; Related terms:Blockchain Consensus Node Hashgraph
DTI (ISO 24165): The Digital Token Identifier is a code, defined in ISO 24165, that gives each digital token a unique, consistent identity. It helps firms and regulators refer to the same asset reliably, much like a barcode. It is an identification system, not an approval or rating.; Related terms:ISO 20022 Token Coin SEC
Escrow: Escrow is like a deposit held by a lawyer until both sides finish the deal. On some networks it is built into the protocol, so funds can be locked until a set time or condition. Projects also use it to release tokens gradually.; Related terms:Smart contract Vesting Custody Token
EVM (Ethereum Virtual Machine): The EVM is like a common operating system for smart contracts: code written for it can run on any network that implements it. This compatibility lets many chains reuse Ethereum tools and apps.; Related terms:Smart contract Gas fee Layer 1 (L1)Sidechain
Exchange: An exchange is a marketplace connecting buyers and sellers, like a currency exchange counter. Some are centralized companies that hold your funds, while others are decentralized smart contracts. Features, fees and regulation differ widely.; Related terms:CEX (centralized exchange)Spot trading KYC (know your customer)Custodial
Federated Byzantine Agreement (FBA): In federated Byzantine agreement, as used by the Stellar Consensus Protocol, each participant picks the nodes it trusts and waits for those nodes to agree. It is like friends deciding where to eat by asking only the friends they trust, with enough overlap between groups to land on one answer. It differs from an open lottery because trust choices matter.; Related terms:Consensus UNL (Unique Node List)Validator Finality
FIFO (first in, first out): FIFO treats your holdings like a queue at a shop: the first purchase leaves first. It is one way to match sales to cost basis, and whether it or another method is allowed depends on your tax authority. See /learn/tax.; Related terms:Cost basis Capital gains tax Taxable event CPA / tax advisor
Finality: Finality describes when a confirmed transaction is settled for good. It is like the moment a notary stamps a contract: before the stamp it can still change, after it the record is fixed. Some networks reach finality in seconds, others only become more certain as more blocks are added.; Related terms:Consensus Throughput (TPS)Validator Fork
Firmware: Firmware is a device's internal operating program, like the brain of a hardware wallet. Updates add features and fix flaws, so install them only from the manufacturer's official app or site and verify them.; Related terms:Hardware wallet Tamper-evident Open source Cold wallet
Fork: A fork is like a road splitting in two. A soft fork tightens rules while remaining compatible, while a hard fork breaks compatibility and can create a separate chain if not everyone upgrades. Forks can also be a normal way of shipping upgrades.; Related terms:Governance Open source Blockchain Consensus
Foundation: Many projects set up a foundation to fund development, run grants and hold part of the token supply. It is like a trustee for a shared project. How much control it keeps differs, so it is worth reading how a given network describes its governance.; Related terms:Governance DAO (decentralized autonomous organization)Open source Token
Gas fee: A gas fee is the price of getting a transaction included on a network, like postage on a parcel. The amount usually depends on how complex the action is and how busy the network is. On many networks it is paid in the native token.; Related terms:Smart contract Token Layer 1 (L1)EVM (Ethereum Virtual Machine)
Governance: Governance is the decision-making system of a network, like the way a country amends its laws. It may be on-chain voting, a council, a foundation or informal rough consensus among developers. Each model has trade-offs between speed and decentralization.; Related terms:DAO (decentralized autonomous organization)Foundation Fork Delegation
Hardware wallet: A hardware wallet works like a small, sealed signing booth: transactions go in, are approved with a button press, and come out signed while the key never leaves the device. Buy only from official sellers and check packaging, as tampered devices have been reported.; Related terms:Cold wallet Private key Tamper-evident Firmware
Hashgraph: Hashgraph is a data structure and consensus algorithm in which nodes repeatedly tell random peers what they know, building a graph of who-told-whom events. Because every node ends up with the same graph, each can work out the agreed order locally. It is like office gossip that spreads until everyone can reconstruct the same timeline.; Related terms:Distributed ledger DAG (directed acyclic graph)Consensus Finality
Hot wallet: A hot wallet is convenient for frequent use, like the cash in your pocket. Because it is online, it is more exposed to malware and phishing than offline storage. Many people keep only small amounts in one.; Related terms:Cold wallet Software wallet Phishing Private key
Howey test: The Howey test asks whether people invest money in a common enterprise expecting profit from others' efforts. US regulators and courts have applied it to some crypto offerings, and the outcomes depended on specific facts.; Related terms:SEC Security token ICO (initial coin offering)MiCA
ICO (initial coin offering): An ICO resembles a crowdfunding campaign where backers receive tokens. Many were unregulated early on, and regulators in several countries have treated some as securities offerings. Quality and honesty varied widely.; Related terms:Token Vesting SEC Howey test
Inflation: In crypto, inflation means new units are issued over time, for example as rewards to validators. It works like a company issuing more shares: existing holders own a smaller slice unless they also receive new units. Schedules differ greatly between networks.; Related terms:Maximum supply Burn Staking Circulating supply
Inheritance planning: Without keys, funds are lost, so heirs cannot access crypto the way they can a bank account. Planning means documenting where backups are and how access works, without exposing secrets today. Legal advice can help with the details.; Related terms:Seed phrase Cold storage Custody Passphrase
Interoperability: Interoperability is like adapters and common standards that let different devices work together. Blockchains are built separately, so connecting them requires bridges, messaging layers or shared standards, each with its own trade-offs and risks.; Related terms:Bridge Layer 1 (L1)ISO 20022 Oracle
ISO 20022: ISO 20022 defines a common, data-rich format for payment messages, like a standard form that every bank can read. It is a messaging standard for financial institutions, and it does not by itself make a crypto asset compliant or part of the banking system. See the ISO 20022 learn page for details.; Related terms:SWIFT CBDC DTI (ISO 24165)Interoperability
KYC (know your customer): KYC is the check a bank does when you open an account: ID, address and sometimes more. It helps platforms meet legal duties. It means that your activity on that platform is linked to your identity.; Related terms:AML (anti-money laundering)Exchange Source of funds Custodial
Layer 1 (L1): Layer 1 is the foundation of the building: the main network that records and finalizes transactions. Other systems, like layer 2s, are built on top of it. Each layer 1 makes its own choices on speed, cost and decentralization.; Related terms:Layer 2 (L2)Sidechain Native token Consensus
Layer 2 (L2): A layer 2 is like an express lane built next to a highway: it handles traffic cheaply and posts a summary to the main road. Security assumptions differ by design, and moving funds in and out usually uses a bridge.; Related terms:Layer 1 (L1)Sidechain Bridge Gas fee
Leverage: Leverage is like buying a house with a large mortgage: a small price move changes your equity a lot. A relatively small adverse move can cause liquidation of the position, so it carries a high risk of losing the entire deposit.; Related terms:Derivatives Volatility Spot trading Exchange
Limit order: A limit order is like naming your price at an auction: it executes only if the market reaches it, so it may not execute at all. It gives price control but no guarantee of completion.; Related terms:Market order Spread Slippage Spot trading
Liquidity: Liquidity is like the depth of a lake: a large stone barely changes the water level in a deep lake but makes waves in a shallow pond. High liquidity usually means tight spreads and small slippage, while thin markets can move sharply on a single order.; Related terms:Slippage Spread DEX (decentralized exchange)Market order
Market capitalization: Market cap is a quick size measure, like multiplying the price of a share by the number of shares. It is not money actually invested, and it can mislead when supply is mostly locked or liquidity is thin. Always check which supply figure a site uses.; Related terms:Circulating supply Total supply Maximum supply Volatility
Market order: A market order prioritizes speed over price, like hailing the first taxi that stops. The final price may differ from what you saw, especially in thin markets, because of spread and slippage.; Related terms:Limit order Slippage Spread Liquidity
Maximum supply: Maximum supply is a cap written into the rules, like a print run limited to a fixed number. Some assets have one and some do not. A cap can sometimes be changed through governance, so check how a given network treats it.; Related terms:Total supply Circulating supply Inflation Burn
Memo / destination tag: Some networks, such as XRP Ledger (destination tag), Stellar (memo) and Hedera (memo), let an exchange use one shared address for many customers. The tag is like an apartment number on a shared building address: without it, the deposit may be delayed or lost. Always copy it exactly as shown.; Related terms:Address Exchange Network selection Test transaction
MiCA: MiCA (Markets in Crypto-Assets) is an EU rulebook, like a single license regime for crypto firms across member states. It covers issuers, stablecoins and service providers, with its provisions taking effect in stages.; Related terms:SEC Security token Stablecoin KYC (know your customer)
Minimum reserve / minimum balance: On networks such as XRP Ledger, Stellar and Algorand, an account must hold a minimum balance, which can rise for each extra object or asset it owns. It is like a deposit for keeping a locker. Exact amounts are set by the network and can change, so check the official documentation.; Related terms:Address Native token Account model Burn
Native token: A native token is the asset a network needs to function, like the fuel for a specific kind of engine. Examples include ETH on Ethereum, XRP on the XRP Ledger and HBAR on Hedera. Its role varies by network.; Related terms:Coin Token Gas fee Layer 1 (L1)
Network selection: Many tokens exist on several networks, like one parcel carrier with several different roads. Sending on a network the receiving side does not support can cause lost funds. Check the network name, not only the token name, before confirming.; Related terms:Address Bridge Memo / destination tag Test transaction
NFT (non-fungible token): An NFT is like a numbered collectible: each one is distinct, unlike coins where every unit is interchangeable. It records who holds the token, but does not by itself guarantee rights to the underlying work.; Related terms:Token Smart contract Wallet Blockchain
Node: A node is one computer connected to a blockchain network. Think of it as a branch office that keeps its own copy of the records and relays messages to other branches. Some nodes only store and relay data, while others also validate or vote.; Related terms:Validator Blockchain Consensus Block explorer
Non-custodial: With a non-custodial wallet nobody else can move or freeze your funds, like keeping cash in your own safe. The trade-off is responsibility: if you lose the seed phrase there is usually no support desk that can restore access.; Related terms:Custodial Private key Seed phrase Wallet
Open source: Open source is like a recipe published for everyone: you can check what goes in it. It allows independent review, but being public does not guarantee that the code is safe or that anyone has actually reviewed it.; Related terms:Foundation Governance Fork Node
Oracle: Smart contracts cannot see the outside world on their own, so they rely on oracles, like a messenger bringing news into a sealed room. If the data source is wrong or manipulated, the contract acts on bad information.; Related terms:Smart contract DeFi (decentralized finance)Interoperability Bridge
Passphrase: A passphrase works like a second lock on the safe: the same seed phrase with a different passphrase opens a different wallet. It adds protection, but if you forget it, the funds are not recoverable, and it is not the same as a device PIN.; Related terms:Seed phrase Hardware wallet Private key Cold storage
Phishing: Phishing is like a fake bank clerk asking for your PIN. Common signs are urgent messages, look-alike web addresses and requests for a seed phrase. No legitimate wallet or support team will ever ask for it.; Related terms:2FA (two-factor authentication)Seed phrase Airdrop Private key
Private key: A private key is like the master password and signature in one. Anyone who has it can move the funds, so it should never be shared or typed into websites. Wallets usually derive it from a seed phrase.; Related terms:Public key Seed phrase Wallet Address
Proof of reserves: Proof of reserves is like a bank letting an auditor count the vault. It can show assets on hand, but unless liabilities are also covered it does not prove full solvency. Methods and audit quality differ between firms.; Related terms:CEX (centralized exchange)Custodial Custody Exchange
Proof of stake (PoS): In proof of stake, the network chooses validators partly according to how many coins they have locked. It works like a security deposit: act honestly and earn rewards, break the rules and risk losing part of the deposit. It uses far less electricity than proof of work.; Related terms:Consensus Staking Validator Slashing
Proof of work (PoW): In proof of work, miners compete to find a number that makes a block's hash meet a difficulty target. It is like a lottery where buying more tickets means running more computing power. The cost of the work makes rewriting history expensive, and Bitcoin is the best-known example.; Related terms:Consensus Blockchain Node Burn
Public key: A public key is like an account number or a lock anyone can see but only the key-holder can open. It is safe to share, and it cannot be used to work out the private key in practice.; Related terms:Private key Address Wallet Block explorer
Pure proof of stake (PPoS): In Algorand's pure proof of stake, every online account holds lottery tickets in proportion to its balance, and a verifiable random draw picks who proposes and votes on each block. No one needs to lock funds or delegate, and a block that passes the final vote is not rolled back. It is like a raffle that is re-drawn privately for every single round.; Related terms:Proof of stake (PoS)Consensus Finality Validator
Real-world asset (RWA) tokenization: Tokenization puts a digital receipt on a blockchain for something that exists off-chain. The token is only as reliable as the legal link and the custodian behind it. Regulatory treatment often depends on the rights the token gives.; Related terms:Token Security token Custody Smart contract
SEC: The SEC is the US regulator of securities, comparable to the Israel Securities Authority. It has taken action against some crypto offerings that it viewed as unregistered securities. Its views and the courts' rulings have evolved over time.; Related terms:Howey test Security token MiCA ICO (initial coin offering)
Security token: A security token is a digital version of something like a share or bond. Because it falls under securities law, issuing and trading it usually requires disclosures and licensed venues. Whether a token counts as one depends on its facts and the jurisdiction.; Related terms:Howey test SEC Real-world asset (RWA) tokenization MiCA
Seed phrase: A seed phrase is the master backup of a wallet: it is like a master key to a building full of lockers. Anyone who sees it can take everything, and if it is lost the funds usually cannot be recovered. Never store it as a photo or in a cloud note.; Related terms:Private key Passphrase Hardware wallet Inheritance planning
Sidechain: A sidechain is like a branch office with its own staff and rules, connected to headquarters by a bridge. Because it does not inherit the main chain's security, its safety depends on its own validators.; Related terms:Layer 1 (L1)Layer 2 (L2)Bridge EVM (Ethereum Virtual Machine)
Slashing: Slashing is like forfeiting a security deposit for misconduct, for example signing conflicting blocks. If you delegate to a validator, a share of the penalty may reach you depending on the network.; Related terms:Staking Validator Proof of stake (PoS)Delegation
Slippage: Slippage happens when the price moves or your order eats through available offers, like a queue that gets longer while you wait. It is larger in illiquid markets and for large orders. Many DEXs let you set a maximum tolerance.; Related terms:Market order Liquidity Spread DEX (decentralized exchange)
Smart contract: A smart contract is code that executes on its own once its conditions are satisfied, like a vending machine: insert the right input and it delivers the output without a clerk. It can only do what its code says, so bugs in the code can cause losses.; Related terms:Gas fee EVM (Ethereum Virtual Machine)Token DeFi (decentralized finance)
Software wallet: A software wallet is a program that stores keys on a device you already use. It is free and convenient, but it is only as safe as the device it runs on, so malware and phishing are the main concerns.; Related terms:Hot wallet Wallet Private key Non-custodial
Source of funds: Platforms and banks may ask for source-of-funds evidence, such as payslips or sale contracts, to meet AML rules. It is like being asked for a receipt for a large cash deposit. Keeping records helps if asked.; Related terms:KYC (know your customer)AML (anti-money laundering)CPA / tax advisor Exchange
Spot trading: Spot trading is the simple form: you pay and receive the actual asset, like buying goods at a shop. It differs from derivatives, where you trade contracts based on price and can use leverage.; Related terms:Exchange Derivatives Market order Limit order
Spread: The spread is like the difference between a currency counter's buy and sell rates. A narrow spread usually signals a liquid market, and a wide one is an implicit cost of trading.; Related terms:Slippage Liquidity Market order Limit order
Stablecoin: A stablecoin aims to track an outside value, like a gift card worth a fixed amount. The peg may be backed by reserves held by an issuer or maintained by algorithms, and the quality of that backing varies, so peg failures have happened.; Related terms:Token CBDC Liquidity Custody
Staking: Staking is like putting money in a term deposit that the network uses as a guarantee of honest behavior. Rewards, lock-up periods and risks such as slashing or provider failure differ by network and method.; Related terms:Proof of stake (PoS)Validator Delegation APY (annual percentage yield)
SWIFT: SWIFT is the postal system for bank instructions: it carries messages, not the money itself. Settlement happens through the banks' own accounts. SWIFT has been migrating its traffic to the ISO 20022 format.; Related terms:ISO 20022 CBDC Interoperability Bridge
Tamper-evident: Tamper-evident seals work like the safety ring on a bottle of juice: if broken, you know someone opened it. A broken seal on a new hardware wallet is a reason to stop and contact the manufacturer. Intact packaging alone is not full proof.; Related terms:Hardware wallet Firmware Seed phrase Cold storage
Taxable event: A taxable event is a moment when tax authorities may treat you as having realized a gain or income. Which actions qualify differs by country, so check the generic overview at /learn/tax and ask a local tax professional.; Related terms:Capital gains tax Cost basis FIFO (first in, first out)CPA / tax advisor
Test transaction: A test transaction is like sending one euro first to check the account number. It costs a small fee but can reveal wrong networks, missing memos or typos before they affect the full amount.; Related terms:Address Network selection Memo / destination tag Block explorer
Throughput (TPS): Throughput is a measure of capacity, like the number of cars a highway can carry per hour. Published TPS numbers are often lab or theoretical figures and can differ from real-world use, so check what conditions they were measured under.; Related terms:Finality Gas fee Layer 1 (L1)Layer 2 (L2)
Token: A token is a unit of value or a right recorded on a blockchain that was created by a project using an existing network. Think of a casino chip or a loyalty point: it exists inside someone else's system. Tokens can represent money, access, assets or votes.; Related terms:Coin Native token Smart contract Stablecoin
Total supply: Total supply counts everything issued so far, whether or not it is tradable yet. Imagine all tickets printed for an event, including those still held back by the organizer. It is always greater than or equal to circulating supply.; Related terms:Maximum supply Circulating supply Burn Vesting
UNL (Unique Node List): On the XRP Ledger, each server chooses a Unique Node List and accepts a ledger only when enough of those validators agree. It is like choosing a panel of referees you trust to settle a dispute. Default lists are published by organizations such as Ripple and the XRP Ledger Foundation, and servers can choose their own.; Related terms:Validator Consensus Federated Byzantine Agreement (FBA)Node
UTXO (unspent transaction output): In a UTXO model, your balance is the sum of the unspent outputs you can sign for, like a wallet holding separate notes. Spending consumes whole outputs and creates new ones, such as change. Bitcoin uses it.; Related terms:Account model Blockchain Address DAG (directed acyclic graph)
Validator: A validator is a computer, run by a person or organization, that verifies transactions and votes on or produces blocks. It is like a referee who checks each play against the rulebook. Depending on the network, validators may stake coins, be chosen by trust lists, or be approved by a governing body.; Related terms:Node Consensus Staking Slashing
Vesting: Vesting works like a salary paid in installments instead of one lump sum. It is meant to align long-term incentives and to avoid a sudden flood of tokens. Unlock dates can affect the circulating supply.; Related terms:Escrow Circulating supply Total supply Airdrop
Volatility: Volatility is like the choppiness of the sea: high means big swings in short periods. Crypto prices have historically moved much more than most traditional assets, so values can fall sharply as well as rise.; Related terms:Bull case Bear case Liquidity Leverage
Wallet: A wallet does not hold coins like a physical purse; it holds the keys that prove control over addresses on a network. Think of a keyring: lose the keys and the door cannot be opened. Wallets come as apps, browser extensions or dedicated devices.; Related terms:Private key Hot wallet Cold wallet Seed phrase