Glossary

Important Terms

At 1881 Capital Partners, our goal is to give our clients a great experience by providing education on the nascent digital asset industry. We believe that it is important for our clients to understand why our investment approach provides value

A-C
Account Abstraction

Account Abstraction is the process of making interacting with the blockchain easier. It allows a user to manage their account using a smart contract instead of a private key. In short, it gives the user more control and reduces technical complexity

Actively Validated Services (AVS)

Actively Validated Services (AVS) are any system that require their own distributed validation and security. The EigenLayer protocol popularized security for AVSs as EigenLayer allows new services to leverage the strong security of the Ethereum network without needing to build out their own validator network. This speeds up the launch process, reduces cost, and enhances application-level security

Airdrop

An airdrop is a distribution method in the digital asset space where tokens or coins are sent for free to a large number of wallet addresses. Airdrops are typically used as a marketing strategy to increase awareness, drive adoption, and reward loyal community members or early adopters. The recipients are usually chosen based on certain criteria, such as holding a specific digital asset, participating in a community activity, or completing promotional tasks

Alternative Digital Assets

Alternative digital assets, also known as altcoins or alts, are digital assets that are not Bitcoin. They are built on different blockchain network from Bitcoin. There are thousands of alts in the market today, and each alt claims to have a unique value proposition across the various sectors of the digital asset industry

Automated Market Maker

Automated market makers (AMMs) are types of decentralized exchanges that use code to facilitate the trade of digital assets. In the traditional financial market, liquidity is maintained through high buyer and seller activity. However, AMMs use liquidity pools to maintain liquidity

Backwardation

Backwardation is a market condition where the price of the futures contract is lower than the price of the underlying asset during the contract's maturity. The futures market being in backwardation is a bearish signal in the market because it indicates that the market believes the price of the underlying asset will be lower in the future

Bitcoin

Bitcoin is the first decentralized digital asset. After the global financial crisis, an unknown person (or entity) named Satoshi Nakamoto created bitcoin based off of the free market ideology. Today, bitcoin is seen as a store of value with immutable and non-sovereign properties

Bitcoin Cash

Bitcoin Cash is a cryptocurrency that was created as a result of a hard fork from Bitcoin in 2017. The goal of Bitcoin Cash was to improve on Bitcoin's scalability issues by increasing block size limits and reducing transaction costs. However, this has also led to concerns around centralization

Bitcoin Runes

Bitcoin Runes is a recent development in the Bitcoin ecosystem. It transforms bitcoin into a more functional platform by enabling the creation of fungible tokens on the Bitcoin network. These fungible tokens can be used in ways similar to ERC-20 tokens on the Ethereum network

Block

A block within a blockchain is a blob of data that contains the history of transactions that occurred over a given time interval. Blocks are added by the computers on the network (miners or validators) via the consensus protocol. These computers check the blocks to ensure that the transactions are sound and that the references match up

Blockchain

A blockchain is a decentralized ledger that is organized as a series of "blocks" containing data. Computers running the blockchain are distributed all throughout the world, and use a special set of rules to add the blocks to the blockchain. Once transactions are recorded on the chain, they cannot be tampered with

Central Bank Digital Currency

Central Bank Digital Currencies are fiat currencies that exist in digital form and are distributed by a given country's central bank

Chevron Deference

The Chevron Deference was a precedent set by the Supreme Court in 1984 that stated that judges should defer to federal agencies when the rules they make are reasonable ad the enabling law was ambiguous. In June, the Supreme Court overturned that decision. In the digital asset industry, this could mean that the SEC's interpretative power over the digital asset industry is now more limited

Coin

Coins are digital currencies that operate within their own blockchains. Bitcoin and Ethereum are examples of coins. The purpose of the coin is as a medium of exchange, store of value, or as payment paid to the computers working on securing the network via the consensus protocol

Commodity Tokens

Commodity tokens serve as a resource on their blockchain networks. For example, ETH on the Ethereum network serves as a fuel to power operations, similar to how a car needs gasoline to run

Consensus Protocol

The consensus protocol is the special set of rules that computers running the blockchain follow to add blocks. The consensus protocol determines the "truth" behind what actually occurred in the system, and enables the block addition accordingly. Consensus involves tradeoffs: optimizing for speed means limiting participants, while optimizing for decentralization limits speed

Contango

Contango is a futures market condition where the price of the future's contract is higher than the price of the underlying asset at maturity. The futures market being in contango is considered a bullish sign because it signals that the market believes that the price of the underlying asset will increase in the future

Cryptocurrency

Cryptocurrency are a digital, encrypted, and decentralized medium of exchange. Cryptocurrency is a broad term that encompasses different categories of tokens including commodity tokens, utility tokens, and governance tokens

Cryptography

Cryptography is the process of hiding or coding information. In the digital age, this is needed to facilitate information exchange. Cryptography allows two computers communicating with one another to encode the message (privacy) and ensure that the message was not tampered with (integrity). Cryptography also helps the communicating parties ensure that the messages received are authentic

D-F
DAO

DAOs are decentralized (rules cannot be changed by a single individual) and autonomous (operate based on smart contracts and without human intervention) organizations (coordinate activity among a distributed community). The DAO extends traditional corporate governance into the digital world by encoding laws into smart contracts

DeFi

DeFi, or decentralized finance, is a financial technology that includes decentralized applications used for financial operations such as trading, lending, and saving. These applications are encoded in smart contracts that have been deployed to various blockchain networks. DeFi has unlocked the door to a world of programmable, faster, and more powerful financial applications

DePIN

DePIN, or Decentralized Physical Infrastructure Networks, refers to a protocol using blockchain technology to incentivize creating, maintaining, and operating real-world infrastructures in a decentralized manner

Derivative

Derivatives are usually used for risk hedging. An investor may sign a derivatives contract allowing them to purchase an asset at a specific price. This allows them to hedge against potential fluctuations in the value of the asset

Digital Asset

A digital asset is anything created and stored digitally, is identifiable and discoverable, and has or provides value

Digital Asset Ecosystem

A digital asset ecosystem encompasses many different types of digital assets, including: cryptocurrencies, tokenized assets, virtual assets, non-fungible tokens (NFTs), and more

Digital Currency

Digital currencies are digital assets that perform all the functions of fiat money, in that users can pay for goods or services with them. Essentially, it would be considered legal tender

Distributed Ledger

A distributed ledger is a database that is consensually shared and synchronized across multiple parties. Distributed ledgers can record static and dynamic data about publicly traded (permissionless) blockchains or private and permissioned blockchains

Double-Spending Problem

The double-spending problem is the issue that a currency could be used to purchase two assets with the same coin because there is no one authority on validating digital currency transactions. The problem can be solved through consensus mechanisms and blockchain technology

EigenLayer

EigenLayer is a middleware built on the Ethereum network. EigenLayer allows protocols that are built on it to leverage Ethereum's trust network. This will allow protocols built on EigenLayer to have low barriers to entry, since they can just leverage Ethereum's security to create their ecosystems

EIP-1559

EIP-1559 is an upgrade to the Ethereum network that simplified the fee market mechanism. Previously, the fee mechanism in Ethereum was based on a first-price auction, where users bid a set amount of money to have their transactions processed, and the highest bidder won. Now, with EIP-1559, there is a set 'base fee' required to be included in the next block

ERC-20

ERC-20 is a widely used standard for creating and issuing fungible tokens on the Ethereum blockchain. This standard has significantly contributed to the growth and development of the Ethereum ecosystem. By creating a common framework for creating and managing tokens, ERC-20 unlocked a wide range of applications, from simple tokens to complex financial instruments. These common set of rules ensure interoperability and ease of integration within Ethereum

Epoch

An epoch refers to a specific period during which certain events or processes occur. For blockchains, the concept helps in organizing and managing processes such as block validation, staking rewards, and other consensus-related activities

eETH

eETH is the native token for EtherFi. Minting eETH allows users to get exposure to Ethereum staking rewards, EtherFi loyalty points, restaking rewards, and the ability to provide liquidity to Decentralized Finance protocols

Ethereum

Ethereum was created by Vitalik Buterin in 2013. While the Bitcoin Network unlocked the monetary use case of blockchain technology, Buterin argued that blockchain technology allowed for other opportunities in the space. Through smart contract technology, Ethereum opened the door for developers and applications to benefit from blockchain technology

Ethereum Virtual Machine (EVM)

Ethereum Virtual Machine is a computation engine, which acts like a decentralized computer that has millions of executable projects

EtherFi

EtherFi (ETHFI) is a decentralized, non-custodial liquid staking protocol for Ethereum. Users can stake their Ethereum in exchange for liquid tokens that can be used in decentralized finance applications. Under the hood, EtherFi integrates with EigenLayer's restaking technology, simplifying the restaking process and increasing rewards for its users

Exit Liquidity

Founders or early investors in blockchain protocols will sell their ownership of a protocol via a liquidity event. When these founders and early investors sell their token holdings, these holdings are purchased by other individuals or companies. These entities represent the exit liquidity  

Flash Loan

A flash loan is a type of DeFi loan that is swiftly processed, acquired, and repaid in a short period without the need for collateral. Flash loans are an innovative solution that are unique to decentralized applications

Fork

A fork in a blockchain network is created when nodes disagree about which block to add in the block addition process. This disagreement creates a "fork" in the blockchain and creates two parallel chains.
A soft fork does not result in a permanent split in the network and is generally done when the network needs to update.
A hard fork occurs when the nodes do not reach consensus, creating two branches. New blocks accepted on one fork will be rejected by the other

Fraud Proof

A fraud proof is a cryptographic proof used to identify and demonstrate that a transaction or block in a blockchain is invalid or fraudulent. Fraud proofs are essential for maintaining trust and security in certain blockchain protocols, particularly in layer 2 scaling solutions and cross-chain interactions

Fully Distributed Valuations

The fully distributed valuation is the entire token supply that the protocol will ever issue, multiplied by the price of each individual token. This differs from the market capitalization, which is the total dollar valuation of a protocol based on circulating supply multiplied by the price of each individual token

Fundamental Analysis (FA)

Fundamental analysis is a method of evaluating the underlying economic and financial factors that affect the value of an asset. It's often used in traditional financial markets to analyze stocks, bonds, and commodities, but it can also be applied to digital assets. Ultimately, it is used to determine an asset's intrinsic value

G-I
Game Theory

Game is a mathematical framework used for analyzing strategic interactions between rational decision-makers. It provides tools for understanding how individuals and groups make decisions in situations where the outcome depends on the actions of all participants

Gas

Gas (in the context of digital assets), specifically within the Ethereum network, refers to a unit of measurement for the computational work required to execute transactions and smart contracts.=

Governance Token

Governance tokens are tokens that gives holders the right to vote on decisions affecting the decision-making of a protocol. These tokens fuel blockchain-based voting systems

Halving

The bitcoin halving is an event that happens once every four years. Miners on the bitcoin network get some bitcoin as a reward for participating in the block addition process. During the halving, the reward gets slashed in half, creating a supply shock in the bitcoin network. The most recent halving happened on April 19, 2024

Hash Rate

Hash rate is the computational power used to mine and process transactions on a blockchain network that uses Proof of Work for its consensus mechanism

HODL

HODL is an acronym for "hold on for dear life". It's a meme among digital asset investors and a play-on-words on the word "hold". The term refers to an investment strategy of buying digital assets with the intent of never selling it

Honeypot

A honeypot is a scam used in the digital asset industry to trap victims and steal their assets or sensitive information. This can involve setting up a fake website of wallet that looks legitimate, but is instead designed to lure and deceive use into giving information or currency. The scammer will then usually disappear

Immutable

Immutability is the core defining feature of the blockchain. It ensures data cannot be altered, deleted, or tampered with once it has been recorded

Impermanent Loss

The temporary loss of funds experienced by liquidity providers in a liquidity pool due to volatility in the price of assets

Interoperability

Interoperability is about systems talking to each other - whether devices, networks, or applications. It is a way of enabling compatibility between systems

J-L
Liquid Market

A liquid market is a market with a high level of activity and numerous buyers and sellers, ensuring that assets can be quickly bought or sold without significantly affecting the asset's price

Liquidity Pool

A liquidity pool refers to a collection of funds locked in a smart contract to facilitate trading on decentralized exchanges (DEXs) and lending platforms

Liquid Staking

Liquid staking is a mechanism in the cryptocurrency and blockchain space that allows users to stake their digital assets and simultaneously receive a liquid staking token (LST) that represents the staked asset

Liquidation

Liquidation is the process of converting digital assets into cash or cash equivalents, often used to meet financial obligations, settle debts, or close out a trading position. Liquidation commonly occurs when an investor's position is forcibly closed to prevent further losses.

LST Restaking

LST Restaking is the process of taking liquid staking tokens (LSTs) that have been received as a representation of staked assets and staking them again in various DeFi protocols to earn additional yields or rewards

M-O
M1 Money Supply

The M1 money supply is a key economic indicator used to measure the money in circulation. M1 consists of the most liquid forms of money, such as currency in circulation (physical money such as coins and bills), demand deposits (checking accounts where money can be withdrawn on demand), as well as other checkable deposits such as NOW (negotiable order of withdrawal)

M2 Money Supply

The M2 money supply is a key economic indicator used to measure the total amount of money in circulation within an economy. M2 includes M1 as well as less liquid forms of money that are easily convertible to cash or checking deposits. These include savings deposits, small-denomination time deposits, and retail money market mutual funds

Mempool

A mempool is a digital asset node's mechanism for storing information on unconfirmed transactions, acting as a waiting room for transactions that have not yet been included in a block

Merkle Tree

A Merkle tree is a data structure used in cryptography and computer science to verify the integrity of data stored or transmitted. It consists of a tree-like arrangement of hashes, where each hash represents a block of data. The Merkle tree ensures data integrity by comparing hashes at each level of the tree. At the top of the tree is, which represents the combined hash of all data blocks. This root hash can be used to verify the integrity of the entire data set

MetaMask

MetaMask is a popular digital asset wallet and browser extension that allows users to interact with the Ethereum blockchain and decentralized applications

Merge (Ethereum 2.0)

The Merge is the transition of Ethereum from its original Proof of Work (PoW) mainnet to a new Proof of Stake (PoS) network. In essence, it involves changing the validation system for the Ethereum blockchain

Miners

Miners are participants in a blockchain network who use their computational resources to solve complex mathematical problems, validate transactions, and add new blocks to the blockchain. In return for their efforts, miners are rewarded with newly created cryptocurrency tokens and transaction fees.

Mount Gox

Mount Gox was a bitcoin exchange launched in Japan in 2010. It handled over 70% of all bitcoin buys and sells worldwide, but in early 2014, it ceased its operations once it was revealed that it was involved in the loss and theft of hundreds of thousands of bitcoin. In June 2024, Mount Gox announced that 140,000 bitcoin would be moved to clients

Multiparty Compute

Multiparty computation allows parties, who each have their private data, to come together to evaluate a computation without revealing their sensitive information. The multiparty computation protocol ensures privacy (the private information cannot be inferred from the protocol) and accuracy (bad actors cannot force honest actors to output an incorrect result)

Multi-signature (multi-sig)

A special type of digital signature scheme where there can be multiple signers for a single digital signature. A multi-signature or “multi-sig” transaction is only valid if it is signed by a set threshold of participants, just like some legal documents require a co-signer.
Multi-signature schemes enable more advanced smart contracts and Layer 2 scalability solutions. They are also particularly important for digital asset custody

Non-Fungible Tokens (NFTs)

Non-fungible Token (NFT) is a type of digital asset that uses blockchain technology to represent ownership and verify the authenticity of a unique item or piece of content. Unlike digital assets such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are unique and cannot be exchanged on a like-for-like basis

Node

A node is a device or computer connected to a blockchain network that participates in the network by maintaining a copy of the blockchain and performing various functions such as validating transactions, storing data, and relaying information to other nodes. Nodes are essential for the decentralization, security, and reliability of a blockchain network

Operator

An operator in the context of digital assets is an individual or entity responsible for managing and maintaining a particular component or service of a blockchain network. This can include running nodes, validators, miners, or other essential infrastructure that supports the functionality, security, and efficiency of the blockchain

Open Interest in Futures

Open interest refers to the total number of outstanding derivative contracts, specifically futures and options, that are held by market participants at the end of each trading session. Unlike stocks, where the number of issued shares stays constant, the supply of futures contracts fluctuates daily based on market activity

Optimistic Rollup

An optimistic rollup is a type layer 2 scaling solution that relies on off-chain computation to trustlessly record transactions that happen in layer 2. Periodically, the system publishes a Merkle root of the transactions that happen within the rollup in order to update the "state" of the rollup on the main underlying blockchain. A network of external validators checks the Merkle roots to make sure that they are correct before the state is updated some time later. If an inconsistency arises, then the validator can publish a fraud proof during the dispute period, which can cause the state of the system to be rolled back to the previous valid state

On-Board and Off-Board

On-boarding is the process of swapping fiat for digital assets, usually through an exchange. Off-boarding is the process of selling digital assets for fiat currency, also through an exchange

P-R
Pendle

Pendle is a DeFi protocol that tokenizes and trades future yield. By separating the ownership of the underlying asset from its future yield, Pendle creates new financial instruments that can be traded on its platform. Users on Pendle can sell their future yield for liquidity, or can speculate on the future yield of various DeFi assets. In short, traders can use Pendle to strategize yield optimization

Permissionless

A system is said to be permissionless when it has no so-called “gatekeepers.” In the case of blockchains, we can say that Bitcoin is permissionless since no entity can forbid anybody else from using it or limiting its use for any purpose

Points

Points are used to track a user's activity with decentralized applications or measure the user's contribution. Points are often connected to airdrops

Private Key

A confidential code known only to the owner of a digital wallet, used to access and manage digital assets. Private keys prove ownership of the underlying address

Proof of Stake

Proof of Stake (PoS) is a consensus algorithm used by blockchain networks to validate transactions and create new blocks. In PoS, validators are chosen to create new blocks and confirm transactions based on the number of cryptocurrency tokens they hold and are willing to "stake" as collateral.

Proof of Work

Proof of Work (PoW) is a consensus algorithm used by blockchain networks to validate transactions and create new blocks. In PoW, miners compete to solve complex mathematical puzzles using significant computational power. The first miner to solve the puzzle gets the right to add a new block to the blockchain and receive a reward, typically in the form of newly minted digital asset tokens and transaction fees

Protocol

A protocol is a formal set of rules, conventions, and standards that dictate how data is transmitted, received, and interpreted across a network. In the context of blockchain technology, a protocol defines the mechanisms for consensus, transaction validation, network communication, and security, ensuring that all participants in the network can interact with each other in a consistent and reliable manner

Provenance

Provenance refers to the documented history and origin of an asset, detailing its creation, ownership, and any transactions or changes it has undergone over time. In the context of blockchain and digital assets, provenance provides a transparent and immutable record of an item's lifecycle, ensuring authenticity, traceability, and accountability

Pseudonymous

Transactions in the digital asset space are often pseudonymous, meaning that they are done without revealing the identities of the parties involved. Instead, these transactions will usually be linked to a public key or cryptographic address of the users

Public Address

A public address is a unique alphanumeric string derived from a user's public key, used to receive cryptocurrency transactions on a blockchain network. It serves as a destination for sending funds and is shared publicly to facilitate transactions. A public address is akin to a bank account number in traditional finance, allowing others to send digital assets to the address holder

Restaking

Restaking via a platform like EigenLayer typically means depositing one's ETH or liquid staking token (LST) into the protocol, and then selecting which Actively Validated Service (AVS) to secure in exchange for interest

S-U
SAB 121

SAB 121 is a guideline created by the Securities and Exchange Commission in March 2022 that required publicly traded banks to hold custodied digital assets on their balance sheets. Generally, custodial assets of a bank are always held off-balance sheet. This rule has made it difficult for banks to custody digital assets. As of May 16, 2024, both the House of Representatives and the Senate voted against the recommendation

Scalability

Scalability is the capability of a blockchain network to accommodate a growing number of transactions, users, and data without suffering from performance degradation, excessive delays, or high costs. It involves enhancing the network's throughput (transactions per second), reducing latency, and maintaining or improving security and decentralization

Security Token

A security token is a digital asset that represents ownership rights or a stake in a real-world asset, such as shares in a company, real estate, or bonds. Security tokens are issued on a blockchain and are subject to federal securities regulations, providing legal rights and protections similar to traditional securities

Self-Custody Wallet

A self-custody wallet is a type of digital asset wallet that allows users to have full control and ownership of their private keys, and thus their digital assets. In a self-custody wallet, users are solely responsible for managing and securing their private keys, without relying on any third-party service or custodian

SHA-256

SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that generates a 256-bit (32-byte) fixed-size hash value from input data of any size. SHA-256 is commonly used for ensuring data integrity, digital signatures, and within blockchain protocols such as Bitcoin

Sharding

Sharding is a classic technique in distributed systems that reduces the load on the nodes participating in a network by eliminating the requirement that each node process every transaction. With sharding, each node instead processes only a subset of all transactions. This enables a much greater network throughput, though at the cost of some redundancy

Sidechain

A sidechain is an independent blockchain that operates in parallel to a primary (main) blockchain, facilitating the transfer of assets and data between the main chain and the sidechain. Sidechains are used to enhance scalability, introduce new features, and provide more flexibility in the development and deployment of blockchain applications

Slashing

Slashing is a penalty mechanism in blockchain networks, particularly those using Proof of Stake (PoS) or similar consensus algorithms, designed to deter and penalize malicious or negligent behavior by validators. When a validator is found to be acting against the network's rules, a portion of its staked assets is forfeited or "slashed," reducing its economic incentives and protecting the network's security and integrity

Smart Contract

A smart contract is a self-executing contract with the terms of the agreement directly written into code. It runs on a blockchain network, where the code and the agreements contained therein are executed automatically when predetermined conditions are met. Smart contracts facilitate, verify, and enforce the negotiation or performance of a contract without the need for intermediaries

Spot Trading

Spot trading involves the immediate exchange of a financial instrument at the current price. A spot trade is the most common type of trade among digital assets and forex, where two coins are traded against each other. In addition to cryptocurrency pairs, spot trading includes commodities, bonds, and stocks

Stablecoin

A stablecoin is a type of digital asset that is designed to minimize price volatility by being pegged to a stable reserve asset, such as a fiat currency (e.g., USD), a commodity (e.g., gold), or another cryptocurrency. Stablecoins aim to combine the benefits of digital assets—such as fast transactions and security—with the stability of traditional financial assets

Staking

Staking is the process of locking up digital assets within a blockchain ecosystem. By doing so, the "staker" participates in the security and block addition process of the network via Proof of Stake. The staker earns a return on the principal for participating in this process

Transactional Tokens

Transactional tokens are digital assets that are used primarily as a medium of exchange to facilitate transactions within a blockchain network or ecosystem. These tokens are designed to be used for buying goods and services and transferring value between users in a fast, secure, and efficient manner

Token

A token is a digital asset that is created, issued, and managed on a blockchain. Tokens can represent various types of assets, rights, or utilities and are used within decentralized applications, platforms, and ecosystems to facilitate transactions, incentivize behavior, or provide access to specific services

Tokenization

Tokenization is the process of representing real-world assets or rights as digital tokens on the blockchain. Tokens can represent ownership or rights to a particular asset and can be traded. Tokenization allows for both cost reduction and capital efficiency in the transaction process

Tokenomics

Tokenomics, a blend of "token" and "economics," refers to the study and design of the economic system surrounding a digital asset or blockchain-based token. It involves the analysis and strategic planning of various factors such as token creation, distribution, supply, demand, utility, and incentive mechanisms to create a sustainable and functional economy within the blockchain ecosystem

Token Generation Event

A Token Generation Event (TGE) is a process in which a new digital asset or token is created and distributed to investors, developers, and other stakeholders. TGEs are typically associated with the initial distribution of tokens for a new blockchain project or decentralized application and are important for funding the development and operation of the project

TOTAL3

TOTAL3 is the total market capitalization of the digital asset market after removing Bitcoin and Ethereum. In other words, TOTAL3 measures the market capitalization of the alternative digital assets

Total Value Locked (TVL)

Total Value Locked (TVL) is a metric used in the decentralized finance (DeFi) sector to measure the total value of digital assets that are currently locked or staked in a specific DeFi protocol or smart contract. TVL reflects the amount of capital being used within the protocol and serves as an indicator of its popularity, liquidity, and trustworthiness

Token Unlocks

Token unlocks refer to the process of releasing or making available previously restricted or locked tokens for use, trading, or transfer. This process typically follows a predetermined schedule outlined in a project's tokenomics or vesting plan. Token unlocks are common in digital asset projects where tokens are initially locked to ensure stability, incentivize long-term participation, or comply with regulatory requirements

Trading Bot

A trading bot is a software program that uses algorithms to automate the process of trading financial assets, such as digital assets. Trading bots analyze market data, identify trading opportunities, and execute trades on behalf of the user according to predefined strategies and parameters. These bots aim to increase efficiency, remove emotional decision-making, and capitalize on market movements in a timely manner

Trustlessness

Trustlessness is a fundamental principle in blockchain and decentralized systems, referring to the ability of a system to function securely and reliably without requiring participants to trust each other or any central authority. In a trustless system, security, integrity, and correctness are maintained through cryptographic protocols, consensus mechanisms, and decentralized network architecture, ensuring that no single party can manipulate or control the system

Uniswap

Uniswap is a decentralized exchange (DEX) protocol that allows users to swap various digital assets directly from their wallets. It uses an automated market maker (AMM) system instead of traditional order books to facilitate token exchanges, providing liquidity through user-contributed liquidity pools

USDC

USDC (USD Coin) is a stablecoin. USDC is issued by Circle, a financial technology firm, in Collaboration with Coinbase. It is pegged 1:1 to the US dollar and is known for transparency and commitment to bein fully backed by reserve assets, in the form of cash and short term US Treasury bonds

USDT

USDT (Tether) is a stablecoin issued by Tether Limited, which is part of the Bitfinex trading platform. USDT, like USDC, is also pegged 1:1 to the US dollar. However, Tether has faced scrutiny and controversy regarding its reserve backing. While Tether claims that USDT is fully backed by reserves, the messaging around the adequacy of this backing has been vague

Utility Token

A utility token is a type of digital asset that provides users with access to a product or service within a specific blockchain ecosystem. Unlike security tokens, utility tokens are not intended to represent ownership or investment in an asset. Instead, they are used to enable functionality and incentivize participation within a decentralized network or application

V-Z
Validator

A validator is a participant in a blockchain network, particularly those using Proof of Stake (PoS) or similar consensus mechanisms, responsible for verifying and validating transactions, maintaining the blockchain's integrity, and participating in the consensus process. Validators are essential for securing the network, proposing and validating new blocks, and ensuring that all transactions comply with the network's rules

Wallet

A wallet is a digital tool or application that allows users to store, manage, and interact with their digital assets, such as cryptocurrencies and tokens. Wallets facilitate the sending and receiving of these assets and provide a means for users to monitor their balances and transaction histories. They can be software-based (online or mobile apps) or hardware-based (physical devices)

Web 3.0

Web 3.0 or Web3, is the next generation of the internet that emphasizes decentralization, user empowerment, and enhanced privacy. It leverages blockchain technology, decentralized protocols, and smart contracts to create an internet where users have more control over their data, identities, and digital interactions. Web 3.0 aims to move away from the centralized structures of Web 2.0, where a few large companies dominate the internet

Whale

A "whale" refers to an individual or entity that holds a large amount of a particular cryptocurrency or financial asset. The term "whale" is used because, like the large mammal in the ocean, a whale in the financial market has the potential to make significant waves and impact the market due to the size of their holdings and trading activities

Whitelist

A whitelist is a list of approved addresses that are permitted to interact with a specific smart contract or participate in a particular blockchain event, such as a token sale or airdrop. Whitelisting addresses ensures that only vetted and authorized participants can engage with the smart contract, enhancing security, compliance, and controlled access

Whitepaper

A whitepaper is an authoritative report or guide that provides detailed information about a specific project, product, or technology, typically within the context of digital assets. It outlines the problem being addressed, the proposed solution, technical specifications, implementation strategies, and potential benefits. Whitepapers serve as a key document for investors, developers, and stakeholders to understand the project's vision, methodology, and potential impact

Yield Farming

Yield farming is a strategy in decentralized finance (DeFi) where users lend or stake their cryptocurrency assets in DeFi protocols to earn rewards, typically in the form of additional digital asses. These rewards can come from transaction fees, interest, or new tokens provided by the protocol as an incentive. Yield farming aims to maximize returns on digital asset holdings by leveraging various DeFi platforms