Cryptocurrency and Blockchain Dictionary
A complete list of crypto definitions
Cryptocurrency and blockchain glossary
Commonly used terms in the blockchain and cryptocurrency
Terms commonly used in the world of blockchain and cryptocurrency
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DeFi (Decentralized Finance)
DeFi defined as a new financial ecosystem consisting of various financial tools, apps and services utilizing blockchain technology. Examples of DeFi functionality are banking services in the form of stablecoins, decentralized exchanges, derivatives, prediction markets, or lending and borrowing systems. It is a combination of replicating products and services in the traditional finance industry as well as innovative new ones only possible with blockchain technology.
DEX (Decentralized Exchange)
Decentralized Exchange is an exchange where people can trade cryptocurrencies and tokens without the need of a middleman. It is usually run by code in a ‘smart contract’. The transactions are generally written to the blockchain, which makes a DEX by default slower than a centralized exchange that uses fast databases. The main benefit of a DEX is that nobody, but yourself, holds the private key to the funds. Even though a DEX will not have a middleman regarding the trades, the exchange and the website are centrally managed. Therefore it’s not 100% decentralized in fact.
Double Spending
With digital currency, there is a risk that the holder could make a copy of the digital token and send it to a merchant or another party while retaining the original.
Emission Rate
The term ‘Emission’ is in relation to blockchain, often used as ‘Emission Rate’. This is the speed at which new coins are released and thus increases the ‘circulating supply’. This speed is known in advance by the design of the blockchain and can be shown in a graph, the ‘Emission Curve’.
ERC-20
ERC-20 is a technical token standard used to issue and implement tokens on the Ethereum blockchain. These coins are also supported by most Ethereum wallets. It was proposed in November 2015 by Ethereum developer Fabian Vogelsteller. The standard describes a common set of rules that should be followed for a token to function properly within the Ethereum ecosystem. Therefore, ERC-20 should not be considered as a piece of code or software. Instead, it may be described as a technical guideline or specification.
Ethereum
Launched in 2015, Ethereum is the world's programmable blockchain. Like other blockchains, Ethereum has a native cryptocurrency called Ether (ETH). ETH is digital money. People all over the world use ETH to make payments, as a store of value, or as collateral. But unlike other blockchains, Ethereum can do much more.
Fiat Currency
Fiat currency or also simply called fiat is money issued by a government or organizations that are allowed to issue it, like banks for example. It doesn’t have any value by itself and is for decades not backed by gold anymore either. It instead remains value based on the trust of the people. Once the trust goes away it will decrease in value and could eventually cause hyperinflation.
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