Crypto Slang Explained
Your complete crypto lingo guide with over 150 entries
Unpacking the Lexicon: The Vibrant History and Importance of Crypto Slang
In the fast-paced world of cryptocurrency, where finance and technology merge, a distinct culture has taken shape. This culture, inspired by the cypherpunk values of privacy, freedom, and decentralization, isn't just focused on complex algorithms and financial theories — it's also distinguished by its own language. Crypto slang and memes aren't just shortcuts in communication; they're symbols of belonging, capturing the community's ideals, victories, and obstacles.
The Genesis Block of Crypto Slang
The beginning of crypto slang dates back to the start of the cryptocurrency movement. Satoshi Nakamoto, the enigmatic person behind Bitcoin, didn't just introduce digital currency to the world but also set the principles that would define its culture. Although Nakamoto wasn't known for using slang, the early forums and chat rooms where Bitcoin began to gain attention were alive with terms that have since become iconic.
Terms like "HODL," a misspelling of "hold" from a 2013 post on the BitcoinTalk forum, encapsulate the community's bullish stance on cryptocurrencies, urging investors to keep their coins through volatility. It reflects a fundamental belief in the long-term value of Bitcoin, beyond the immediate fluctuations. This spirit is echoed in phrases like “In crypto we trust,” hinting at the deep faith in the transformative power of blockchain technology.
Crypto Slang: Reflecting and Shaping Reality
Crypto slang does more than mirror the community's ethos; it actively shapes it. "FUD" (Fear, Uncertainty, and Doubt) and "FOMO" (Fear of Missing Out) describe the psychological dynamics influencing market movements, while "DeFi" (Decentralized Finance) and "NFT" (Non-Fungible Token) signify the expanding boundaries of crypto innovation.
Elon Musk’s endorsement of Dogecoin as “the people’s crypto” illustrates the powerful influence of prominent figures in steering the narrative and popularity of cryptocurrencies. Similarly, Vitalik Buterin’s assertion that “Blockchain solves the problem of manipulation,” encapsulates the core value proposition of decentralization and trustless systems.
The Lingua Franca of a Decentralized Future
As cryptocurrency continues to evolve, so too does its language. Each new innovation, from blockchain technology to the latest altcoin, brings with it a wave of new terms and memes. This evolving lexicon is not just for insiders; it invites newcomers into the fold, demystifying a complex world through humor and shared language.
In essence, crypto slang and memes are more than just everyday language; they are the core of the cryptocurrency community. They embody the spirit of innovation, resilience, and fellowship that characterizes the crypto realm. As the world of digital currency keeps evolving, one thing stays the same: the dynamic culture expressed through its slang and memes, a tribute to the revolutionary spirit of its members, mirroring the belief that, as Nick Spanos once stated, “Bitcoin is unstoppable.”
The language of crypto, filled with quotes from figures like Nakamoto, Musk, and Buterin, along with the grassroots slogans and memes, creates a mosaic of a movement that isn't limited by geography or institutions but is united in its vision for a decentralized financial future.
13%er • 14° • 2FA • 42 • 6529 • (3,3) • Aantonop • Addy • Airdrop • Altcoin • AMFA • AML • AMM • aNFT • Anon • API • Aping • APR • APY • ASIC • ATH • Bag • Bear • Bearwhale • BIP • BIP39 • Bitcoin • Bitshaming • Blockwars • BMI • Boomer • BRC-20 • BTCD • BTD • BUIDL • Bull • CBDC • CBRC-20 • CeFi • CEX • Cheatsheet • Coinbase • Consensus algorithm • Copium • CZ • DAG • DAO • dAPI • DApps • DCA • Death spiral • DeFi • Degen • DEX • Diamond hand • dPoS • DYOR • Educator • EIP • ELI5 • Elon Musk • ERC • ERC-20 • ERC-721 • Escrow • ETF • FA • FATF • Fiat • Flippening • Flappening • FOMO • Fren • GFY • Gigabrain • Gigachad • GM • Goat • GPU • Gwei • Hash • HFSP • HODL • Hopium • HSBAF • HTLC • Hyperbitcoinization • ICO • IOU • Influencers • In it for the tech • Inscription • IPFS • IPO • IYKYK • JOMO • KYC • Lambo • Laser eyes • LFG • Memes • MFA • Middleman • Miner • Mint •Mixer •MOOC • Moon • NFA • NFT • NGMI • No-coiner • Noob • Normie • Nuke • NYKNYC • -oooor • Ordinal • Ossification • P2E • P2P • Paper hand • PayNym • PFP • Pirates • Pleb • PoS • PoW • Private key • Probably nothing • Pump • Public key • QR code • Rare Sat • Reflection • REKT • Rug • Runes • SAFU • Satoshi • Ser • SHA 256 • Shill • Shitcoin • Smol brain • Smooth brain • SNAFU • SRC-20 • SSO • TradFi • Trilemma • TX • UTXO • Vaporware • Vitalik Buterin • WAGBO • Wagecuck • WAGMI • Wallet • Web3 • Wen • Whale • XBT • Yield • Zk-SNARK •
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13%er
A "13%er" refers to individuals within cryptocurrency circles, who exclusively invest in Bitcoin and often include "13%er" in their X nickname, shunning altcoins which they call shitcoins. Statistics indicate that about 13% of Bitcoin holders exclusively own Bitcoin, while the rest hold Bitcoin and altcoins at the same time.
14°
The Bitcoin logo is characterized by a 14° tilt, a feature that embodies the cryptocurrency's constant forward movement and innovation. This specific angle is the result of summing an infinite series related to the geometrical representation of the letter "B," which approximates to 13.888 degrees. When this calculation is rounded to the nearest whole number in graphic design software, it standardizes to 14°. This design choice metaphorically represents Bitcoin's ongoing advancement and its potential to reshape the future of financial systems.
2FA
"2FA", or "Two-Factor Authentication", serves as an umbrella term for a security strategy where users must provide two distinct authentication factors to verify their identity.
42
Bitcoin's logo features a reference to 42, known from "The Hitchhiker's Guide to the Galaxy" as the ultimate answer to life, the universe, and everything. Phil Wilson, who contributed to the logo's design, scaled the orange circle to 525% by multiplying 12.5 (representing one-eighth of 100 and highlighting the logo's theme of the number 8) with 42. By integrating this element, Wilson suggests that Bitcoin, much like 42, seeks to provide a deeply innovative solution to the world of finance.
6529
Punk6529 is well-known in the NFT world for his big impact and many contributions to digital art and the Open Metaverse. Coming from the U.S. with a Harvard education, he got into cryptocurrencies in 2011 and jumped into the NFT world in 2016, collecting various artworks and leading projects to build a digital universe focused on freedom and culture. His name, Punk6529, comes from his digital avatar, a special Punk NFT that was the 6,529th piece created out of 9994. This number isn't just for show; it highlights his standout role in the NFT community, showing how NFTs are more than just digital items.
(3,3)
The "(3,3) WAGMI" phrase has evolved into a meme within the crypto community, symbolizing the collective success possible when users stake Olympus DAO's OHM tokens. It borrows from the prisoner's dilemma to illustrate the mutual benefits of staking — (3,3) represents the optimal, cooperative choice where everyone wins ("We're All Gonna Make It"). Bonding options (1,3 or 3,1) offer individual gains, while selling (1,-1 or -1,1) can be detrimental, and mutual selling (-3,-3) is the least desirable, akin to collective betrayal. The meme encapsulates a strategy of unity and shared prosperity in the crypto space.
| STAKE | BOND | SELL | |
|---|---|---|---|
| STAKE | (3,3) WAGMI | (1,3) | (-1,1) |
| BOND | (3,1) | (1,1) | (-1,1) |
| SELL | (1,-1) | (1,-1) | (-3,-3) |
A
Aantonop
"Aantonop" is a popular abbreviation for Andreas M. Antonopoulos, a well-known figure in the cryptocurrency space. He is a highly respected Bitcoin advocate, author, and speaker who educates the public about Bitcoin and blockchain technology through his books, talks, and online content. Website.
Addy
An "addy" is crypto slang for "address", a unique identifier for a cryptocurrency wallet used to receive or send digital assets on the blockchain.
Airdrop
In the crypto world, an airdrop involves distributing free tokens or coins to wallet holders, usually to promote a new currency. Despite their appeal, airdrops are notorious for potential security threats, as claiming them often requires revealing ownership of certain assets, thereby exposing your wallet to attacks. Due to the sophisticated nature of these attacks, it is advisable to avoid airdrops altogether unless you are a crypto professional.
Altcoin
An altcoin is any cryptocurrency other than Bitcoin. These coins often aim to address perceived limitations of Bitcoin or offer different features and uses. Altcoins can vary widely in their purposes, from enhancing privacy to speeding up transactions.
AMFA
Adaptive Multi-Factor Authentication (AMFA) builds on the foundation of Multi-Factor Authentication (MFA) and Two-Factor Authentication (2FA), enhancing security by dynamically adjusting its requirements based on the risk level of a login attempt. While MFA and 2FA require fixed forms of identification, AMFA evaluates additional factors like location and behavior, intensifying security for suspicious activities and streamlining it for trusted situations. This adaptive method makes AMFA a more sophisticated and secure approach, offering tailored security measures for each login scenario.
AML
AML (Anti-Money Laundering) involves protocols and checks mandated by governments and regulatory bodies. These measures, enforced by businesses and financial institutions, aim to identify and report suspicious transactions, preventing individuals from using legitimate channels to launder illicit funds.
AMM
An Automated Market Maker (AMM) is a system that allows cryptocurrencies to be traded automatically by using liquidity pools instead of traditional markets. Users pool their assets together, creating a fund that others can buy from or sell into. Prices are set by a mathematical formula based on supply and demand within the pool. This innovation enables 24/7 trading without the need for a traditional buyer-seller matching system.
aNFT
An aNFT (Autonomous Non-Fungible Token) is a self-executing blockchain asset. With pre-set conditions, it manages tasks like automatic royalty payments or ownership transfers in areas like art and real estate, enhancing efficiency and removing the need for manual oversight. This innovation opens up new avenues in digital art, gaming, DeFi, and supply chain management, making interactions more dynamic and autonomous.
Anon
"Anon" in the crypto community refers to individuals who engage in the ecosystem under pseudonyms, often to preserve privacy and focus on merit-based contributions rather than personal identity. These anonymous participants may range from casual enthusiasts to well-known figures within the space, such as the notable NFT collector Punk6529, whose significant influence and following demonstrate that reputation in crypto can be built on the strength of one’s ideas and actions, irrespective of their revealed identity.
API
An API, or Application Programming Interface, serves as a protocol for enabling different software applications to communicate and share data. For instance, when a user queries a weather forecast through an app, the app utilizes an API to retrieve weather information from a remote server, which then delivers the forecast data back to the user's device.
Aping
In the context of cryptocurrency and NFTs, "aping" describes the act of hastily investing in a project without thorough research or consideration of potential risks. This term captures the behavior of jumping into investments based on hype or peer influence, rather than informed decision-making, often leading to unpredictable outcomes.
APR
APR, or Annual Percentage Rate, measures the yearly cost of borrowing money, including interest and fees. It shows the total yearly cost as a percentage of the amount borrowed. For example, if you borrow $100 at an APR of 10%, you'd pay $10 in interest and fees over a year. It helps compare different loan and credit offers.
APY
APY, or Annual Percentage Yield, represents the total interest earned on a savings account or investment in a year, accounting for compounding. If the APR is 10%, with daily compounding, the APY will yield slightly more due to compounding effects, resulting in a higher return at the end of the year. For example, with a $100 deposit, the APY might yield around $10.47, while the APR would yield a flat $10 over the same period.
ASIC
ASIC (Application-Specific Integrated Circuit) is specialized hardware designed for specific tasks, like cryptocurrency mining. Unlike general-purpose processors, ASICs offer higher efficiency and performance for particular algorithms. In Bitcoin mining, ASICs excel at solving complex mathematical problems to secure the network, crucial for maintaining blockchain integrity in proof-of-work systems.
ATH
ATH, or All Time High, refers to the highest price that a financial asset has ever reached in its trading history.
ATL
ATL, or All Time Low, refers to the lowest price that a financial asset has ever reached in its trading history.
B
Bag
In crypto terms, a "bag" refers to a significant holding or quantity of a particular cryptocurrency that an investor owns, often implying that the asset is being held in anticipation of future price increases.
Bear
A "bear" in crypto is someone who expects prices to drop, signaling a market where values are generally decreasing. The term comes from the way a bear swipes downward, representing falling prices. The opposite is a bull someone optimistic about rising prices .
Bearwhale
A "Bearwhale" refers to a large holder of a cryptocurrency, often Bitcoin, who sells a significant portion of their holdings, exerting downward pressure on the market. The term combines "bear" (representing a downward market trend) with "whale" (a holder of substantial assets).
BIP
BIP, or Bitcoin Improvement Proposal, is a standard for proposing changes to the Bitcoin protocol. It allows developers to suggest upgrades, enhancements, or modifications to the Bitcoin network. Each BIP undergoes community review and, if accepted, may lead to protocol upgrades. BIPs play a crucial role in the decentralized governance of Bitcoin, enabling the community to evolve the network in response to technological advancements or emerging challenges.
BIP39
BIP39, within the Bitcoin Improvement Proposal framework, specifies a method for transforming a random number, essentially the master private key, into a seed phrase, such as "book paper tiger strong disaster cake smile mobile sun tree silver witness." This seed phrase streamlines the memorization and recovery process for cryptocurrency wallet keys, enhancing both security and user accessibility. All addresses and keys within the wallet are derived from this seed, ensuring that the user can recover their entire wallet using the seed phrase in any compatible wallet
Bitcoin
Bitcoin is a digital currency that operates without a central authority, like a government or bank. It uses a public ledger called blockchain to record all transactions. Anyone with internet access can send and receive Bitcoin, making it accessible worldwide. Bitcoin's design limits the total number of coins that can ever exist, which appeals to people looking for an alternative to traditional, inflation-prone currencies. Its decentralized nature ensures that no single entity can control or manipulate the currency, offering a new way to think about money in the digital age.
Bitshaming
Bitshaming refers to mocking individuals who have been engaged with Bitcoin for many years yet have not become wealthy. It gained attention when supporters of Andreas Antonopoulos, a notable figure in the Bitcoin community, rallied on Twitter to donate to him in response to such mockery.
Blockwars
The most notable "Blockwars" in Bitcoin occurred around 2015 to 2017, reaching a critical point in 2017. The primary issue was how to effectively scale the network to handle more transactions. The conflict led to the creation of Bitcoin Cash through a fork of the Bitcoin blockchain. Bitcoin Cash implemented an increased block size limit from the original 1 megabyte (MB) to 8 megabytes (MB), aiming to allow more transactions per block. This change was made to address the growing transaction volume and improve transaction processing speed and efficiency, which had been points of contention within the community.
BMI
BMI, or Blockchain Mutual Infrastructure, enables trustless interaction and data exchange between different blockchain networks. It enhances scalability, security, and interoperability in the blockchain ecosystem, fostering innovation and collaboration among decentralized applications (dApps) and protocols. BMI facilitates cross-chain transactions and decentralized finance (DeFi) applications, contributing to a more interconnected and inclusive crypto landscape.
Boomer
"Boomer" is informally used to describe an individual, typically older, seen as out of touch with modern trends or technology. In crypto, it could denote skeptics or traditional investors resistant to digital assets' adoption. This term sometimes symbolizes resistance to change within the cryptocurrency community, contrasting with younger, more tech-savvy enthusiasts. It's often linked with individuals born between 1946 and 1964, originating from the term "Baby Boomer."
BRC-20
The BRC-20 standard is a blockchain protocol specifically developed for the Bitcoin network, inspired by Ethereum's ERC-20 standard. It utilizes the Ordinals project to enable the creation and management of fungible tokens by inscribing data directly onto individual satoshis. This innovative approach allows developers to implement decentralized applications, including NFTs and various DeFi projects, directly on Bitcoin's blockchain. By doing so, it leverages Bitcoin's renowned security features while expanding its use cases beyond simple transactions to include smart contract functionalities and tokenization.
BTCD
Bitcoin Dominance (BTCD) measures Bitcoin's market capitalization relative to the total cryptocurrency market. Initially dominant, Bitcoin's share has diminished with the emergence of alternative cryptocurrencies like Ethereum. In 2013, Bitcoin held a 94% market share, but with the rise of ERC-20 tokens and stablecoins, its dominance has declined, reflecting the diversification of the cryptocurrency landscape. The current BTCD can be seen here
BTD
BTD, or "Buy The Dip," is a common investment strategy in cryptocurrency and stock markets. It involves purchasing assets when their prices experience a temporary decline, anticipating their eventual rebound. BTFD, or "Buy The Fucking Dip," is a more informal variation of this strategy, emphasizing urgency and conviction in taking advantage of market downturns for potential profit.
BUIDL
BUIDL is a crypto term derived from HODL representing building and development activities within the blockchain and cryptocurrency ecosystem, emphasizing productive contributions to projects rather than just holding assets.
Bull
A "bull" in crypto is someone who expects prices to rise, indicating a market where values are generally increasing. The term comes from the way a bull thrusts its horns upward, representing rising prices. The opposite is a bear someone pessimistic about falling prices.
C
CBDC
CBDC, standing for Central Bank Digital Currency, is a digital currency issued by a central bank. It is used alongside cash money, yet there is an intention in many countries to phase out cash. While cash allows for a high degree of anonymity, CBDCs aim to track and even control spending habits. CBDC map
CBRC-20
CBRC-20 - also called Cy[bord] - is a blockchain standard that supports on-chain liquidity locking and permissionless swaps while maintaining self-custody. It is designed for efficient decentralized exchanges (DEX) like MotoswapBTC, developed by @bc1plainview. Particularly useful in Bitcoin's ecosystem, CBRC-20 facilitates deep liquidity pools without relying on second-layer solutions. With its integration in platforms like Motoswap, where every transaction involves Motoswap and fees benefit stakers, CBRC-20 is positioned as a potential leader in Bitcoin-based decentralized finance (DeFi), unmatched in enabling true on-chain BTC DeFi. The CBRC-20 standard, building upon the BRC-20 protocol, stems from enhancements in Bitcoin's taproot upgrade, notably leveraging the Ordinals project. It utilizes metadata and CBOR formats within the Ord v0.10 upgrade, effectively reducing the size and cost of transactions.
CeFi
Centralized Finance (CeFi) refers to the traditional financial system where services like banking, investments, and asset management are controlled by central institutions such as banks and regulatory bodies. These institutions act as intermediaries, handling and safeguarding money and other assets for individuals and businesses, but this centralized approach has a disadvantage: the presence of middlemen can sometimes lead to censorship or denial of service. Operating under strict regulations, CeFi allows only verified participants to access financial services. TradFi, short for Traditional Finance, is another term meaning similar to CeFi. Unlike decentralized finance (DeFi), which operates 24/7, CeFi generally operates only during standard workdays, limiting accessibility outside of these hours.
CEX
"CEXs", known as "Centralized Exchanges", enable cryptocurrency trading, similar to traditional stock exchanges. They manage order books, match buyers and sellers, and announce market prices. Typically requiring KYC, they support large transactions. Popular CEXs include Binance and Kraken.
Cheatsheet
The Wall Street Cheat Sheet illustrates a theory of cyclical phases in market psychology, detailing the emotional journey of investors through market trends. The phases include Optimism, Belief, Thrill, Euphoria, Complacency, Anxiety, Denial, Panic, Capitulation, Anger, Depression, and Disbelief. Each phase represents a distinct psychological state that investors experience as the market fluctuates from growth to decline and eventual recovery, highlighting the emotional rollercoaster that can influence investment decisions.
Coinbase
In Bitcoin, the "Coinbase" refers to the reward given to miners for validating transactions and adding them to the blockchain. It serves as an incentive mechanism, issuing new bitcoins with each block mined. Additionally, "Coinbase" is the name of a popular cryptocurrency exchange platform.
Consensus algorithm
A consensus algorithm is a protocol used in blockchain networks to achieve agreement among nodes on the validity of transactions and the state of the distributed ledger. It ensures that all participants in the network reach a common understanding without the need for a central authority. Here are various consensus algorithms: Proof of Work (PoW), Proof of Stake (PoS), Delegated Proof of Stake (DPoS), Proof of Authority (PoA), Proof of Space (PoSpace) / Proof of Capacity (PoC), Proof of Burn (PoB), Proof of Activity (PoA), Proof of Elapsed Time (PoET), Proof of History (PoH), Proof of Importance (PoI) and Federated Byzantine Agreement (FBA)
Copium
In Web3, "copium" is slang for coping with losses or disappointments in the volatile crypto market, humorously suggesting users inhale "cope" to maintain optimism despite downturns.
CZ
"CZ" commonly refers to Changpeng Zhao, the founder of Binance, a major cryptocurrency exchange. CZ is widely recognized in the crypto community for his role in building and expanding Binance into a prominent player in the industry.
D
DAG
DAG (Directed Acyclic Graph) is a data structure where nodes represent transactions, linked in a non-linear pattern without cycles. In cryptocurrencies like IOTA and Nano, each transaction confirms previous ones, allowing for decentralized consensus and scalability without the need for traditional blockchain architecture.
DAO
DAO (Decentralized Autonomous Organization) is an innovative governance system opposite to a centralized authority, where decision-making and operations are governed by smart contracts on the blockchain. It's useful for managing community projects or businesses, even when participants wish to remain private and are spread across the globe.
dAPI
dAPI (Decentralized Application Programming Interface) allows developers to interact with decentralized networks, enabling access to functionalities like executing smart contracts or querying blockchain data.
DApps
DApps (Decentralized Applications) are applications running on decentralized networks like blockchain, with no central authority controlling them. They offer transparency, security, and censorship resistance, often used for financial services, gaming, and social platforms.
DCA
Dollar-cost averaging (DCA) is an investment strategy where an investor periodically invests or sells a fixed amount in a target asset. This approach often results in a better average purchase price than attempting to time the market by buying low and selling high. DCA is suitable not only for buying into positions but also for liquidating them.
Death spiral
A "death spiral" in Bitcoin mining refers to a feared scenario where falling Bitcoin prices lead to decreased profitability for miners, prompting them to shut down their operations. This could reduce the network's computing power and slow down block creation, further decreasing profitability. However, this spiral is largely theoretical and not typically possible because as miners drop out, fewer miners are left to share the block rewards. Consequently, the remaining miners might find mining economically viable again due to less competition for rewards, stabilizing the network. Additionally, the Bitcoin protocol adjusts the mining difficulty periodically to ensure a steady rate of block creation, which counteracts the effects of dropping hash rates.
DeFi
"DeFi", short for "Decentralized Finance", leverages blockchain technology to provide financial services directly between users without centralized intermediaries such as banks. By using smart contracts, DeFi enables peer-to-peer lending, borrowing, and trading, thereby reducing reliance on traditional financial institutions. This approach not only mirrors certain functionalities of traditional finance but also introduces innovative business models and services that conventional systems cannot accommodate. DeFi enhances transparency, increases accessibility, and gives users more control, operating continuously to offer global financial access. Its decentralized structure promotes a more inclusive financial ecosystem, empowering individuals by minimizing middlemen, lowering costs, and increasing efficiency, making it a resilient and censorship-resistant option. This innovative system stands in contrast to Centralized Finance (CeFi) and traditional finance (TradFi), which rely on established financial institutions to mediate transactions.
Degen
"Degen" is slang for "degenerate", often used in the NFT and DeFi space to describe individuals engaging in high-risk, speculative activities, such as leveraged trading or risky investments, driven by the pursuit of quick gains despite potential losses.
DEX
DEX (Decentralized Exchange) is a platform enabling peer-to-peer cryptocurrency trading without intermediaries, offering users control over assets and enhanced privacy. No KYC (Know Your Customer) is required, distinguishing it from centralized exchanges.
Diamond hand
Investors with diamond hands demonstrate extreme resilience by holding onto their investments through market ups and downs, embodying a deep commitment to their long-term potential. This contrasts with paper hands, who quickly sell at the first sign of trouble, driven by fear of loss.
dPoS
Delegated Proof of Stake (dPoS) optimizes transaction speed and energy efficiency by utilizing a select group of elected validators, addressing limitations of Proof of Work. However, it introduces the possibility of centralized power, contrasting with Proof of Stake (PoS), which prioritizes widespread participation in network validation for enhanced decentralization, albeit sometimes at the cost of transaction speed and scalability.
DYOR
DYOR stands for "Do Your Own Research." It's advice urging people to investigate and gather information themselves before making decisions, especially when investing or exploring new topics. It emphasizes the importance of personal due diligence and critical thinking to avoid fraud, misinformation, or financial losses.
E
Educator
Cryptocurrency educators focus on sharing knowledge about blockchain and digital finance, aiming to empower their audience with understanding rather than seeking personal gain. However, distinguishing them from influencers can be challenging, as some influencers disguise themselves as educators. These individuals, who might seem to offer valuable advice, often profit from promotions and endorsements, potentially engaging in unethical practices like pump and dump schemes. This underscores the critical need for careful evaluation of sources within the cryptocurrency community.
EIP
EIP (Ethereum Improvement Proposal) is a standards document proposing changes, improvements, or additions to the Ethereum blockchain protocol, facilitating community collaboration and development.
ELI5
ELI5 means "Explain Like I'm 5," asking for a very simple and easy-to-understand explanation of a topic.
Elon Musk
Elon Musk, known for founding SpaceX and Tesla, also acquired Twitter, now renamed X. He aims to turn X into a multifunctional platform, incorporating features like payments, with ambitions to support cryptocurrencies like Bitcoin and Dogecoin. Musk's ventures into space travel, electric cars, and renewable energy, alongside his impact on crypto markets through his social media influence, highlight his vision for leveraging technology to build a sustainable and interconnected future.
ERC
ERC (Ethereum Request for Comments) is a technical standard used for token creation and smart contract implementation on the Ethereum blockchain, fostering interoperability and compatibility among decentralized applications (DApps). They are identified by numbers, e.g., ERC-20 for fungible tokens and ERC-721 for non-fungible tokens.
ERC-20
ERC-20 is a standard for fungible tokens on the Ethereum blockchain, ensuring compatibility between different tokens and enabling seamless interaction within the Ethereum ecosystem, including wallets and exchanges. It defines basic functions like "Transfer" for moving tokens between addresses, "BalanceOf" to check token balances, "Approve" for authorizing third-party spending, "TransferFrom" to transfer tokens on behalf of another address, and "TotalSupply" to retrieve the total token supply. These standards provide a common framework for token creation and management, facilitating widespread adoption and interoperability.
ERC-721
ERC-721 is a standard for non-fungible tokens (NFTs) on the Ethereum blockchain, allowing unique token creation and ownership representation. It defines functions like "Transfer" for transferring tokens, "OwnerOf" to identify token owners, "Approve" for authorizing token transfers, and "TotalSupply" to retrieve the total token count. These standards enable the creation and management of unique digital assets, such as collectibles, artwork, and virtual real estate, within the Ethereum ecosystem.
Escrow
Escrow is a neutral financial arrangement where a third party securely holds and regulates payment between two parties in a P2P transaction, without controlling the funds directly. Unlike a traditional middleman who might facilitate or influence a deal, an escrow service ensures that funds are released only when all transaction terms are met, acting as a protective buffer against fraud or default.
ETF
An ETF (Exchange-Traded Fund) is a type of investment fund that trades on stock exchanges, holding assets like stocks, commodities, or bonds. It allows investors to buy or sell shares of the fund throughout the trading day like individual stocks. Bitcoin ETFs, approved in early 2024, offer investors exposure to Bitcoin's price movements through traditional brokerage accounts, providing a regulated and convenient way to invest in cryptocurrency for those who prefer the ETF structure over direct ownership. Unlike futures markets, where contracts are settled in cash, ETFs physically hold the underlying asset, providing investors with direct exposure to the item they're investing in.
F
FA
Fundamental analysis (FA) in the context of Bitcoin and cryptocurrencies involves assessing factors such as adoption rates, technological developments, regulatory changes, and network activity to determine their long-term value. This approach contrasts with technical analysis, where price predictions are based on historic price movements and other data.
FATF
FATF, the Financial Action Task Force, controlled by major economies, mandates countries to comply with its stringent anti-money laundering standards, including regulations for cryptocurrencies and other virtual assets, as a prerequisite for integration into the global financial system.
Fiat
"Fiat" money is currency that has value because a government decrees it so, not because it's backed by a physical commodity like gold. "Fiat" comes from Latin, meaning "let it be done," reflecting its value by government order rather than intrinsic worth.
Flippening
The "Flippening" refers to a potential future event in the cryptocurrency world where Ethereum (or another cryptocurrency) surpasses Bitcoin in market capitalization, indicating a shift in dominance within the crypto market.
Flappening
The "Flappening" describes the moment Litecoin's market capitalization and technological advancements outpace those of Bitcoin Cash, symbolizing a change in their positions within the cryptocurrency hierarchy. This term plays off the "Flippening," focusing on Litecoin and Bitcoin Cash's rivalry and potential shifts in market rankings.
FOMO
"FOMO", or "Fear of Missing Out", is the anxiety of potentially missing out on rewarding experiences or investments, often prompting impulsive decisions. In finance and social contexts, it drives people to follow trends or make investments based on others' actions, fearing regret over missed opportunities.
Fren
"Fren" is a slang term from online communities, used to refer to someone in a friendly manner. It originated within digital circles and has become particularly popular in the crypto community.
G
GFY
"GFY" is an internet slang acronym that stands for "Go F*** Yourself." It's often used online in a confrontational or dismissive manner to express anger or disdain towards someone else's comment or opinion.
Gigabrain
In the cryptocurrency realm, "Gigabrain" refers to individuals possessing an advanced understanding of the technology underpinning digital currencies.
Gigachad
"Gigachad" describes someone who has achieved something remarkable within a specific area of the cryptocurrency industry.
GM
In crypto, "gm" is more than a greeting; it embodies optimism, community unity, and a shared belief in blockchain's potential, signaling participation and positivity in the cryptocurrency world.
Goat
In crypto, "GOAT" stands for "Greatest Of All Time," a term used to highlight influential figures, projects, or assets with significant industry impact. The term "GOAT" originates from sports and was popularized in broader culture before being adopted by the crypto community.
GPU
A GPU, or Graphics Processing Unit, is a specialized electronic circuit designed to accelerate the creation and rendering of images, which in the context of cryptocurrency, is extensively used for mining by solving complex mathematical problems to validate transactions and secure the network.
Gwei
In the Ethereum network, "Gwei" is a commonly used unit for measuring transaction fees. One Gwei equals 1,000,000,000 wei, or 10^9 wei. It provides a convenient measurement scale for transactions, as it balances readability with precision. The smallest unit of ether (ETH) is "wei." One ETH is equivalent to 1,000,000,000,000,000,000 wei, or 10^18 wei. Wei is used for very precise measurements and calculations within the Ethereum network.
H
Hash
A hash functions as a digital fingerprint for any given set of data, generating a distinct code that certifies its authenticity, much like a digital signature. It's irreversible, preventing anyone from deducing the original data from this code. This attribute is crucial for blockchains, as it allows for the demonstration of private key ownership without disclosing the actual key.
HFSP
HFSP, "Have Fun Staying Poor", is a sarcastic remark in crypto communities aimed at skeptics not investing in cryptocurrencies or certain projects.
HODL
The term "HODL" in the cryptocurrency community refers to holding onto your investments rather than selling them, reflecting a belief in their long-term increase in value. It originally came from a misspelled word "hold" in an online forum. Beyond just a misspelling, "HODL" is often playfully expanded as "hold on for dear life," which captures the sentiment of enduring through the price volatility typical in cryptocurrency markets.
Hopium
"Hopium" is internet slang, prevalent in online communities, mocking excessive optimism without basis. This term is a blend of "hope" and "opium," symbolically suggesting an addictive reliance on hope in the absence of tangible evidence for positive outcomes.
HSBAF
HSBAF, "Holy Shit Bears Are F**ked," originates from the crypto community, symbolizing bullish triumph following a price surge while mocking those who bet against the market.
HTLC
"HTLC", or "Hashed Timelock Contract", is a smart contract feature that, for example, is used in the Bitcoin Lightning Network to solve the trust issue in peer-to-peer transactions, enabling escrow-like exchanges without the need for mutual trust between parties.
Hyperbitcoinization
The meteoric rise of Bitcoin as the leading global asset, ledger and flourishing on-chain economy, driven by the migration of capital from lesser assets to Bitcoin due to its superior security and decentralization, further amplified by the network effect.
I
ICO
An ICO, or "Initial Coin Offering", is a way for cryptocurrency projects to raise funds by selling their own tokens in exchange for major cryptocurrencies, allowing early investors to support new ventures.
IOU
An IOU, short for "I owe you," in crypto represents a promise to deliver assets or services in the future. It's common in fundraising like ICOs, where tokens serve as placeholders for future products or services, allowing investors to support projects early on and potentially benefit later.
Influencers
Influencers often portray themselves as successful in the cryptocurrency market, yet their earnings primarily come from sources other than their crypto investments. They monetize through traffic, subscriptions, and merchandise on platforms like YouTube. In the crypto industry, a darker practice emerges where influencers are paid to promote projects, leading to potential pump and dump schemes. They may invest in these projects before promoting them, artificially inflating demand before selling off for profit. This cycle of hype and misinformation underlines the importance of skepticism towards influencer endorsements in the cryptocurrency space. In contrast to this, the cryptocurrency community also includes educators individuals motivated primarily by the desire to teach and inform others about crypto, focusing on both foundational concepts and advanced topics, rather than prioritizing personal financial gain.
In it for the tech
The meme "in it for the tech" became popular on Crypto Twitter after economist Nouriel Roubini's April 25th, 2018 tweet. It humorously shows people claiming noble intentions while actually seeking personal gain. One notable example features Indian businessman Dattatrey Phuge wearing a 22-carat gold shirt with chains and a Bitcoin emblem, mocking prioritizing innovation over money.
Inscription
An inscription is a process used within the Ordinal protocol on the Bitcoin blockchain to embed additional data into a satoshi, the smallest unit of Bitcoin. This data, which can include pictures, text, or code, is stored in a UTXO (Unspent Transaction Output). These inscriptions transform standard satoshis into unique digital assets by adding identifiable and functional characteristics. Individuals can create their own inscriptions or purchase pre-existing ones on various markets, making them not only valuable as currency but also sought after as collectibles.
IPFS
In the world of crypto NFTs, IPFS (InterPlanetary File System) acts as a decentralized protocol. It stores and retrieves NFT metadata and content off-chain on conventional servers, ensuring their accessibility and permanence. By distributing data across a node network, it enhances reliability and censorship resistance.
IPO
An IPO, or "Initial Public Offering", is a process where a private company goes public by selling its shares to the general public for the first time, allowing it to raise capital from investors and list on a stock exchange.
IYKYK
IYKYK stands for "If You Know, You Know." It's a phrase used to suggest that certain information or experience is understood or appreciated only by those who are already familiar with it. It often hints at insider knowledge or shared experiences that aren't explained in detail, leaving those in the know to nod in agreement, while others may be left curious about the deeper meaning or context.
J
JOMO
"JOMO" stands for "Joy of Missing Out," a crypto slang expressing relief or satisfaction from avoiding potentially risky investments or the hype around certain cryptocurrencies.
K
KYC
"KYC", or "Know Your Customer", is a regulatory process used by financial institutions to verify client identity, aiming to prevent fraud. However, it comes with drawbacks: centralized storage poses risks of data breaches, information is usually automatically shared with tax authorities
L
Lambo
"Lambo" in crypto slang symbolizes the aspiration to buy a Lamborghini, often joked about with phrases like "wen moon" and "wen lambo," referring to the anticipation of significant profits from cryptocurrency investments.
Laser eyes
Initiated on February 16, 2021, the #LaserRayUntil100K meme campaign motivated participants to modify their social media avatars with laser eyes, expressing their bullish confidence for Bitcoin to reach $100,000. This trend quickly caught on, drawing in celebrities, politicians, and the wider community in a united visual demonstration of cryptocurrency enthusiasm.
Michael Saylor, a prominent Bitcoin advocate, joined this movement on May 10, 2021, by updating his Twitter profile picture to include the symbolic laser eyes, demonstrating his support for Bitcoin as an instrument of economic empowerment. His participation, accessible through this tweet, brought additional attention to the campaign, uniting celebrities, politicians, and the broader community in a visual demonstration of support for cryptocurrency. Saylor's engagement with the #LaserRayUntil100K campaign not only showcased his endorsement of Bitcoin's potential but also contributed to the cryptocurrency's journey towards wider recognition.
LFG
"LFG" stands for "Let's F*cking Go", an expression used in crypto communities to convey excitement, motivation, or readiness for action, often associated with bullish sentiments.
M
Memes
In crypto, memes are images or phrases that become popular online, humorously reflecting trends or ideas in the cryptocurrency community. They're important because they quickly share complex ideas, affecting market trends and how investors act. Memes help spread knowledge, making hard concepts easier to understand, and build a strong sense of togetherness among investors and enthusiasts.
MFA
Multi-Factor Authentication (MFA) requires users to provide multiple proofs of identity from different categories to access an account, enhancing security beyond traditional passwords. MFA can include two or more factors, whereas Two-Factor Authentication (2FA) specifically requires exactly two types of evidence. This makes MFA more versatile, potentially incorporating additional verification steps for higher security. For a dynamic approach, MFA can evolve into Adaptive Multi-Factor Authentication (AMFA), which adjusts security measures based on the risk of each login attempt.
Middleman
In traditional finance, a middleman, such as a bank or payment processor, is necessary to complete transactions. They ensure everything runs smoothly and securely, but they also add fees and time. Moreover, middlemen can abuse their power by blocking or delaying transactions. Crypto changes this by allowing people to trade directly with each other securely over an untrusted network like the internet.
Miner
Miners employ computers or specialized devices optimized for mining to solve cryptographic puzzles. Success lets them create a block, executing and recording transactions on the blockchain. They must strictly adhere to network protocols; failure to comply results in exclusion, ensuring the network's integrity and security.
Mint
"Mint" refers to the process of creating new coins or tokens and adding them to the blockchain. This can include the creation of new digital assets, like NFTs (Non-Fungible Tokens), where minting involves generating a unique digital item and registering its ownership information on the blockchain for the first time.
Mixer
A crypto mixer is a service that blends different streams of potentially identifiable cryptocurrency, like Bitcoin, to obscure the trail back to the fund's original source, enhancing privacy and anonymity by disassociating the identity of users from their transactions.
MOOC
A MOOC (Massive Open Online Course) offers free, large-scale, web-based classes with interactive participation. Among the longest-running is the University of Nicosia's Bitcoin course, pivotal in digital currency education. MOOC in Digital Currency.
Moon
In crypto terminology, "moon" or "mooning" suggests that a cryptocurrency's price is currently skyrocketing or is expected to soar significantly in the future. It conveys optimism for a cryptocurrency’s potential to increase in value multiple times, offering the prospect of considerable gains for investors.
N
NFA
NFA stands for "Not Financial Advice," a disclaimer indicating that information shared is for educational or entertainment purposes only and not meant as professional financial guidance.
NFT
An NFT, or Non-Fungible Token, is a unique digital asset, like digital art or music, that you can buy and sell. Unlike a bitcoin, which is interchangeable, each NFT is one-of-a-kind. They live on blockchains, like Ethereum, providing a record of ownership. Think of it as owning an original piece of digital art, even if copies exist, only one person can claim the original.
NGMI
NGMI, meaning "Not Going to Make It," is a phrase in the cryptocurrency community indicating someone might fail for various reasons, such as poor investment choices, skepticism about crypto's future, or lack of understanding. It's a shorthand critique or joke about someone's approach to cryptocurrency.
No-coiner
A "no-coiner" is a term in the cryptocurrency world for someone who doesn't own any cryptocurrencies. It's often used in a negative way to describe people who are skeptical or critical of cryptocurrencies and their future potential.
Noob
In the crypto world, "noob" is derived from "newbie" and refers to someone new to cryptocurrencies or blockchain. It carries both positive and negative connotations. Positively, it indicates welcoming and educating newcomers, encouraging a supportive community. Negatively, it can signify inexperience, sometimes used mockingly.
Normie
A "normie" refers to someone who is relatively new or unfamiliar with the details of cryptocurrencies, blockchain technology, and decentralized applications. Normies might have a basic understanding or interest in the space but lack the deeper knowledge or experience that more dedicated enthusiasts or professionals possess. This term is similar to "pleb," used in broader contexts to describe an average person or someone not elite.
Nuke
"Nuke" in cryptocurrency refers to a steep and rapid decrease in price, typically by 10% or more, signaling a significant market downturn amid the sector's high volatility. While prices can plummet suddenly, they also have the potential to rise just as swiftly, often referred to as mooning.
NYKNYC
NYKNYC, short for "Not Your Keys, Not Your Coins," popularized by cryptocurrency expert Andreas Antonopoulos, underscores the criticality of controlling one's private keys. Without such control, users risk total loss of their cryptocurrency holdings.
O
-oooor
The suffix "-oooor" is a playful mockery used to exaggerate and ridicule someone's self-proclaimed expertise. A faux cryptocurrency expert can be labeled a "crypto tradoooor," while a boastful financier might be termed an "angel investoooor," both suggesting more noise than substance.
Ordinal
In the Bitcoin ecosystem, an "ordinal" assigns a unique position to each satoshi, the smallest Bitcoin unit, based on its creation order. This system transforms satoshis from mere currency into individually traceable entities with potential for uniqueness. For instance, a satoshi from the 100,000th block carries a distinct historical footprint. Ownership of Bitcoin is managed through UTXOs, which are essentially containers for satoshis, each marked by its ordinal, enabling not just transactional utility but also the possibility for innovative applications like digital collectibles.
Furthermore, the Ordinal Protocol utilizes these unique ordinal numbers to facilitate the creation of inscriptions. Inscriptions are additional pieces of data embedded directly into a satoshi, transforming it into a unique digital asset. This data can be anything from text and images to code, making each inscribed satoshi a collectible with its own identity and history. This protocol expands the functionality of Bitcoin, allowing it to host a new form of digital collectibles and programmable assets directly on its blockchain.
Ossification
Ossification, in a general sense, refers to the process of becoming rigid and bone-like. In the context of protocols like the Bitcoin protocol, this term metaphorically describes how changes to the protocol become increasingly difficult as it matures and gains wider acceptance. Much like the stabilization seen in the Internet's IPv4 protocol, as more stakeholders adopt and depend on a particular protocol, reaching a consensus for any modifications becomes more challenging. This process ensures stability and predictability but can also limit adaptability.
P
P2E
P2E stands for "play-to-earn," a concept where players can earn real-world rewards, like digital currency or items, by playing video games. This model encourages active participation by rewarding players for their time and skill within the game, often through blockchain and cryptocurrency technologies, enabling them to potentially earn income while enjoying the game.
P2P
P2P stands for peer-to-peer, where computers connect directly without a central server for direct file or digital currency sharing. However, trust issues arise when participants don't know each other. To address this, many P2P exchanges implement an escrow system, holding assets until both parties fulfill the transaction terms.
Paper hand
A "paper hand" or "weak hand" investor quickly sells off their holdings at the first sign of a price drop, driven by fear of losing money, indicating a lack of conviction in their investment strategy. In contrast, those with "strong hands" maintain their assets through market fluctuations, believing in their long-term value. Beyond this, investors with diamond hands display the highest level of steadfastness, holding onto their investments regardless of market volatility or downturns, showcasing extreme resilience and a deep commitment to their long-term investment goals.
PayNym
Originating from Bitcoin Improvement Proposal 47 (BIP47), PayNym is designed to safeguard the privacy of Bitcoin addresses (and transactions). It replaces traditional Bitcoin addresses with payment codes that act as permanent, reusable identifiers, concealing the actual addresses. This feature enables users to publicly share their Bitcoin receiving details without disclosing their real Bitcoin addresses. It cleverly maintains privacy by ensuring that the addresses involved in transactions are known only to the sender and receiver, with no visible connection between the publicly shared receiving information and the details recorded on the blockchain. See our blog post for detailed explanation.
PFP
PFP stands for "profile picture," commonly used on social media and online forums to represent a user's visual identity. In the context of cryptocurrency and NFTs, a PFP often refers to digital art or collectibles used as profile images, showcasing ownership or affiliation with certain digital assets or communities.
Pirates
Pirates emerged in an era when governments exerted tight control over commerce and imposed heavy taxes on goods, making life for many seafarers and tradespeople difficult. In response, some sought freedom on the high seas. Notably, pirate communities often embraced democratic principles, providing a stark contrast to the oppressive regimes of their time. They elected their captains and shared their loot equitably among crew members, presenting a form of resistance to the strict and heavily taxing authorities. The told history of pirates is often distorted; governments themselves hired pirates, known as privateers, to legally plunder ships of rival nations, blurring the lines between lawful and outlawed sea raiders.
Pleb
"Pleb" casually refers to average enthusiasts and retail investors, underscoring the grassroots ethos of cryptocurrency. The term derives from "plebeian," which identified common citizens in ancient Rome, highlighting the significant role of ordinary individuals in the crypto movement.
PoS
Proof of Stake (PoS) is a consensus algorithm in cryptocurrencies. It secures the blockchain by validators running network nodes, confirming transactions, and ensuring integrity. Validators are selected based on their stake of cryptocurrency held and risk losing it if they validate fraudulent transactions, incentivizing honest behavior. This approach offers energy efficiency compared to Proof of Work (PoW) but may pose security concerns regarding potential bribery or malicious actions by validators.
PoW
Proof of Work (PoW) is a consensus algorithm used in cryptocurrencies like Bitcoin. Miners compete to solve complex math puzzles, requiring significant computational power and investment in specialized hardware. The first to solve a puzzle validates transactions and adds a new block to the blockchain, earning rewards. PoW ensures security and trust in the network. Attempting to alter the blockchain's history would require more computational power than all miners combined, which is practically and financially impossible.
Private key
In cryptocurrencies, a private key is a secure digital code known only to the owner, used to sign transactions and access funds. Derived from a "seed," essentially a master password, based on the BIP39 standard, it acts as a digital signature. Only the key holder can authorize transactions, ensuring security and ownership.
Probably nothing
"Probably nothing" or "PN" is a sarcastic phrase suggesting a big event or change is being overlooked or undervalued, often signaling something noteworthy on the horizon.
Pump
A "pump" in crypto is when the price of a currency sharply rises, often due to coordinated buying. It relies on exit liquidity — new or unsuspecting buyers, who buy at high prices and may face losses when the market corrects.
Public key
A public key in cryptography is one half of a cryptographic key pair used in encryption and decryption processes. It's shared openly to enable secure communication, allowing others to encrypt messages that only the holder of the matched private key can decrypt. In the context of cryptocurrencies, it’s similar to an account number that you can share with others to receive funds.
Q
QR code
QR codes convert complex crypto addresses into unique, easily scannable square images with black and white dots, significantly simplifying transactions by eliminating the need to type out long, complicated addresses. This not only speeds up the process for activities like sending/receiving payments and making purchases but also greatly reduces the risk of errors, making transactions smoother and more secure across various platforms.
R
Rare sats
Rare sats are unique satoshis, the smallest units of Bitcoin, valued for their specific characteristics or historical context, closely related to ordinals. Ordinals track each satoshi's position in Bitcoin's total supply, highlighting its unique identity. Examples include satoshis from the first Bitcoin block or those in notable transactions. Their rarity stems not from monetary value but their distinct story or place in Bitcoin's history, making them prized by collectors.
Reflection
Reflection in crypto refers to a mechanism where holders of a cryptocurrency automatically earn more of that currency as a reward, just by holding it. When transactions occur, a percentage is distributed back to all holders, increasing their holdings without active trading or staking. This system incentivizes holding and supports a passive income model. BabyDoge is an example of such a coin, utilizing reflection to reward its holders.
REKT
"Rekt" is slang in gaming and crypto, meaning someone has suffered a heavy loss or defeat, especially after a bad trade or market crash, akin to "wrecked" in standard English.
Rug
A "rug pull" in crypto involves developers quickly (fast rug) or gradually (slow rug) withdrawing funds from a project, leaving investors with worthless assets. Among these, the most significant rug pull involved the "Turkish Lira Token" project, where developers disappeared with over $2 billion, marking a record loss in the cryptocurrency space.
Runes
"Runes" are a new type of fungible token protocol on the Bitcoin blockchain, designed to simplify and enhance the process of creating and managing digital tokens. Utilizing Bitcoin's UTXO model and the OP_RETURN opcode, Runes allow for the efficient creation of tokens without relying on off-chain data or complex mechanisms like ordinals and inscriptions. This makes it easier for users to launch community-driven projects like meme coins, expanding Bitcoin's utility and appeal. The protocol's integration with Bitcoin's existing structures ensures minimal impact on network efficiency, offering a straightforward and resource-efficient way to issue new tokens.
S
SAFU
"SAFU" (Secure Asset Fund for Users), a security promise by Binance, turned into a meme that humorously questions how safe funds really are in crypto. This happened despite its goal to make users feel secure about their assets after breaches. In 2019, after a security breach at Binance where funds were lost, they still assured everyone that the SAFU protocol kept their investments safe.
Satoshi
Satoshi Nakamoto, the pseudonymous individual behind Bitcoin, crafted the first cryptocurrency in 2008, merging several pre-existing technologies—blockchain, public-key cryptography, and peer-to-peer networks—into a cohesive system. Notably, he addressed the Byzantine Generals' Problem, a longstanding issue in computer science related to achieving consensus in distributed systems with potentially untrustworthy actors. By solving this problem, Nakamoto enabled a trustless, decentralized network where transactions could be verified without the need for a central authority, marking a major breakthrough in digital finance. Additionally, "Satoshi" or "sat" is also used as the smallest denomination for Bitcoin, being 1/100,000,000 of one Bitcoin.
Ser
"Ser" is a term from crypto slang, a playful or mocking variation of "sir," sometimes used to troll Indian and East Asian participants in the crypto community for their frequent use of the respectful address.
SHA 256
SHA-256 plays a crucial role in securing Bitcoin transactions by generating unique 256-bit hash values through a one-way mathematical algorithm. This algorithm ensures that data cannot be reverse-engineered, maintaining the integrity of transaction details within the blockchain. By applying SHA-256, sensitive information such as transaction contents and block data are protected from tampering or alteration. Additionally, SHA-256 provides a quick and efficient method for verifying the authenticity of transactions without revealing private data.
Shill
"Shill" describes individuals, often "influencers," who promote products, services, or cryptocurrencies without revealing their personal gain or paid endorsement. This term critiques the practice of using one's influence to falsely hype or boost trust in something through non-transparent recommendations.
Shitcoin
"Shitcoin" is a blunt term for cryptocurrencies viewed as worthless or inferior, lacking innovation or potential for growth. According to "Bitcoin maximalists" or "maxi", any coin that isn't Bitcoin is considered a shitcoin, perceived as unstable or lacking credibility compared to the pioneering cryptocurrency.
Smol brain
"Smol brain" is a slang term playfully used to describe someone who is uninformed or naive about commonly understood concepts, suggesting a lack of awareness or understanding in a particular subject area. It's similar to "smooth brain," a term also suggesting simplicity of thought. Both are in contrast to "gigabrain," which denotes someone with exceptional insight or intelligence.
Smooth brain
"Smooth brain" humorously suggests a lack of intelligence, referencing the inaccurate belief that fewer brain folds indicate lesser smarts. It's akin to "smol brain," indicating naivety or unawareness, especially in crypto. It's the opposite of "gigabrain," which implies sharp, savvy decision-making.
SNAFU
SNAFU, an acronym for "Situation Normal: All F***ed Up," describes chaotic situations or when things go awry, originally from U.S. military slang. In the cryptocurrency context, it refers to mishaps like failed trades, crashes, or network issues, highlighting the unpredictable and often chaotic nature of the crypto market.
SRC-20
SRC-20 tokens are a type of fungible token on the Bitcoin blockchain, analogous to ERC-20 on Ethereum and similar to BRC-20 tokens. They leverage the Bitcoin Stamps technology, utilizing the UTXO (Unspent Transaction Output) model for data storage, ensuring permanent and immutable record-keeping on the blockchain. SRC-20 tokens facilitate the issuance of digital assets that run parallel to native Bitcoin, with transaction fees paid in Bitcoin. This standard supports the creation of tokens with functionalities ranging from routine trading to the preservation of digital memorabilia, expanding Bitcoin's capabilities beyond simple financial transactions.
SSO
SSO (Single Sign-On) simplifies access by letting users log into multiple applications with one set of credentials, reducing the need to remember various passwords. However, if unauthorized access occurs, it potentially compromises multiple systems. For example, using SSO to access both your email and cloud storage means easier logins but also increased risk if the SSO credentials are breached.
T
TradFi
Traditional Finance (TradFi) refers to the traditional financial system where services like banking, investments, and asset management are controlled by central institutions such as banks and regulatory bodies. These institutions act as intermediaries, handling and safeguarding money and other assets for individuals and businesses, but this centralized approach has a disadvantage: the presence of middlemen can sometimes lead to censorship or denial of service. Operating under strict regulations, TradFi allows only verified participants to access financial services. TradFi is synonymous with Centralized Finance (CeFi), emphasizing the centralized control. Unlike decentralized finance (DeFi), which operates 24/7, TradFi generally operates only during standard workdays, limiting accessibility outside of these hours.
Trilemma
The Blockchain Trilemma is a concept that suggests decentralized blockchain systems must balance between scalability, security, and decentralization. Typically, achieving two of these qualities compromises the third. Scalability refers to handling more transactions, security means protecting the network from attacks, and decentralization distributes control widely across the network, preventing any single entity from having too much power. This trilemma highlights the challenges in designing blockchains that are simultaneously fast, secure, and broadly distributed. For instance, Bitcoin emphasizes security and decentralization, which poses challenges to its scalability.
TX
In crypto, "tx" stands for "transaction", the action of moving cryptocurrency between wallets. Each transaction is recorded on the blockchain and has a unique identifier known as the "tx id" for tracking and verification purposes.
U
UTXO
"UTXO" stands for "Unspent Transaction Output," a fundamental concept in blockchain technology that tracks unspent portions of cryptocurrency. Essentially, it represents the leftover digital currency from previous transactions that are available for new transactions. If you own Bitcoin, your holdings are encapsulated in these UTXOs, and you hold the cryptographic keys required to access and spend them. When you initiate a transaction with Bitcoin, you essentially propose to spend one or more UTXOs. During this process, the amount in the UTXO can be divided: part of it is used to pay for the transaction (this could be a payment to another party or a transfer between your wallets), and the remainder is returned to you as a new UTXO, less any transaction fees that are deducted. Thus, the original UTXO is spent and ceases to exist, while new UTXOs are created and held under new addresses. These new UTXOs are then ready to be used in future transactions, continuing the cycle of spending and unspending.
V
Vaporware
Vaporware in Web3 and crypto refers to projects announced with excitement but never developed or released, leading to unmet expectations and lost investments. This can happen intentionally, where creators hype nonexistent projects for profit, or unintentionally, due to overambition or unforeseen challenges halting development.
Vitalik Buterin
Vitalik Buterin co-founded Ethereum, which is revolutionary because it's not just a cryptocurrency but a platform for creating other digital tokens and decentralized applications (dApps) using smart contracts. This opened the door for decentralized finance (DeFi), transforming how we think about financial services beyond traditional banking by allowing for lending, borrowing, and trading in a trustless, open environment.
W
WAGBO
"Wagbo," short for "We're Gonna Be Okay," is an optimistic expression similar to "WAGMI." It conveys a reassuring message of hope and solidarity, suggesting that despite challenges or uncertainties, things will turn out fine in the end.
Wagecuck
"Wagecuck" blends "wage" and "cuckold," used online to describe people seen as too reliant on regular jobs for money, implying a loss of personal freedom or entrepreneurship.
WAGMI
WAGMI, standing for "We're All Gonna Make It," is a popular phrase in the cryptocurrency and NFT communities, expressing optimism and solidarity among investors and enthusiasts about the future success of their investments or projects.
Wallet
In crypto, a wallet is a digital tool that stores private keys to send, receive, and track ownership of cryptocurrencies. It can be software-based, on a computer or smartphone, or hardware-based, like a physical device. Wallets don't store cryptocurrencies but the private keys needed to access and transact to another address on the underlying blockchain.
Web3
In the evolution of the internet, Web1 (read-only) allowed users to access information, while Web2 (read-write) enabled interaction. Web3 extends this by empowering users to own and control their data through decentralized and blockchain technologies. Additionally, Web3 introduces features such as smart contracts, decentralized applications (dApps), and tokenization, revolutionizing how digital services are accessed and managed.
Wen
The slang "wen" originated in the crypto community as a playful misspelling of "when," often used to eagerly ask about the launch of new features, tokens, or projects, reflecting the impatience and excitement within the space.
Whale
In crypto, a "whale" is someone who owns a large amount of cryptocurrency, capable of influencing market prices with their transactions. For instance, selling a large amount of Bitcoin might lower its price, while a big purchase could push it up. The use of "whale" for such influential market players comes from the gambling world, where it describes big spenders who can significantly affect a casino's profits. This term was adopted into the crypto space to highlight the similar impact these large holders can have on the cryptocurrency markets.
X
XBT
XBT is an abbreviation for Bitcoin (BTC), commonly used by financial institutions and exchanges. It represents the same cryptocurrency but follows the International Organization for Standardization (ISO) currency code conventions, denoting it as a non-national or "crypto" currency.
Y
Yield
In the crypto space, yield is a crucial aspect of DeFi. It represents the returns gained from holding, staking, or lending digital assets, including interest from lending and rewards for providing liquidity in blockchain networks.
Z
Zk-SNARK
Zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) is a cryptographic technique allowing one party to prove to another that a statement is true without revealing any details about the statement itself, ensuring privacy and confidentiality in blockchain transactions.
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