The Bitcoin and blockchain ecosystem can be a daunting market for people without prior technical expertise, and even seasoned industry players and enthusiasts can find themselves tangled in the noise, hype, and endless crypto jargon flooding the space.
While familiarity with Bitcoin and blockchain opens the floodgates to further innovation, it also allows us to recognise genuine advancements, filter out distractions and drive meaningful engagement with diverse communities built within its walls.
Whether you’re an OG Bitcoiner, someone just stepping into the world of Web3, or attending a tech event, this handy blockchain glossary of terms that we’ve compiled will help you confidently navigate the ecosystem.
Blockchain and Crypto Dictionary by Section:
Core Blockchain Concepts and Types
Block – A collection of confirmed transactions grouped on a blockchain containing a timestamp, a link to the preceding block and a distinctive cryptographic hash.
Block Confirmation – A process that takes place when a transaction gets included in a block and is validated by the network. An increased number of confirmations provides greater confidence in the transaction’s validity and permanence.
Block Height – The cumulative total of blocks that have been integrated into the blockchain since its development. This indicates the length of the chain and assists in monitoring the sequence of transactions.
Block Size Cap – The highest volume of data that can fit into one block on a blockchain. This restriction influences transaction processing capacity, costs and the general scalability of the network.
Blockchain – A distributed digital ledger that captures transactions in a sequence of blocks connected in time. Its clarity, safety and permanence serve as the basis for cryptocurrencies and various digital assets.
Byzantine Fault Tolerance – The capacity of a distributed system to keep operating even when certain participants behave maliciously or experience failures. It guarantees the dependability of the network despite possible “Byzantine” actors.
Consensus – The process through which blockchain participants reach an agreement on the accuracy of transactions. Consensus mechanisms ensure trust and security in decentralised networks.
Enterprise Blockchain – A blockchain tailored for corporations and organisations to enhance operational efficiency, security and data exchange. This classification of blockchain is typically permissioned and specifically engineered for scalability and adherence to regulations.
Genesis Block – Often referred to as Block 0, the Genesis Block is the initial block in a blockchain. In the case of Bitcoin, it was created by Satoshi Nakamoto in 2009, signalling the beginning of the network.
Immutable – A key feature of blockchain technology in which when a transaction is recorded, it can no longer be altered or deleted. This ensures transparency and fosters trust within the system.
Network Confirmation – The process where nodes verify and reach a consensus on the validity of a transaction. Having multiple confirmations lowers the chances of fraud or double-spending.
Node – Any computer linked to a blockchain network contributing to the system’s upkeep by storing, validating and transmitting transactions. Full nodes maintain a complete replica of the blockchain.
Private Blockchain – A private blockchain that only allows participation from approved users. These are frequently utilised by companies for enhanced efficiency, improved security and regulated governance.
Protocol – Consists of a collection of guidelines that outlines the process for transmitting and verifying data on-chain. It guarantees uniformity, security and interaction among participants.
Public Blockchain – A blockchain that is accessible to all, allowing users to participate, verify transactions, and retrieve information. It highlights the importance of transparency and decentralisation, though it might encounter issues related to scalability.
Keys, Wallets and Security
Bitcoin Wallet – An application that can either be a software or a physical device that allows users to store and transact with digital currencies. It is also used to keep users’ cryptographic credentials known as private keys.
Cold Wallet – A cold wallet keeps cryptocurrency offline by utilising hardware devices or paper wallets. It offers enhanced security against online threats, making it ideal for long-term storage.
Distributed Denial of Service (DDoS) Attack – An attack that inundates a network or server with an influx of traffic, ultimately overwhelming it and leading to downtime. In the context of blockchain, attackers might aim at exchanges or nodes to interrupt their services.
Dusting Attack – The practice of distributing small quantities of cryptocurrency, known as “dust,” to numerous wallets. Cybercriminals subsequently examine transaction behaviours to attempt to associate wallets with users and uncover their identities.
Hot Wallet – A cryptocurrency wallet that is online, like a mobile application or an exchange wallet. While it provides ease of use, it is more susceptible to hacking compared to offline storage solutions.
Mnemonic Phrase/Mnemonic Key – Consists of a series of words that encodes the private key of a wallet in a format that is easy for humans to read. It serves as a safeguard, enabling users to retrieve their funds in the event that their wallet is misplaced.
Private Key – A confidential cryptographic code that enables a user to access and manage their cryptocurrency. The individual who possesses the private key has complete authority over the linked funds.
Public Key – A cryptographic code associated with a private key, utilised for receiving cryptocurrency. It is secure to share since it only enables others to send money, but not to withdraw it.
Unspent Transaction Output (UTXO) – The leftover amounts of cryptocurrency following a blockchain transaction, functioning similarly to digital “change.” They serve as inputs for subsequent transactions, maintaining the security and traceability of Bitcoin and comparable networks.
Mining and Validation
Application-Specific Integrated Circuit (ASIC) – A dedicated hardware device designed for a particular function, like cryptocurrency mining. Compared to general-purpose computers, ASICs are significantly more efficient and powerful for mining activities.
Block Reward – An incentive miners get for successfully adding a block to the blockchain. This compensation typically consists of newly minted coins along with transaction fees associated with the block.
Gas Fee – Gas fee is the amount users are charged for each unit of computational effort on blockchains such as Ethereum. Increased gas prices motivate miners or validators to prioritise a transaction.
Hash Function – A hash function is a cryptographic algorithm that transforms input data into a string of characters of a predetermined length. It guarantees data security, permanence, and integrity within a blockchain.
Hash Rate – The hash rate refers to the computing power employed for mining and validating transactions on a blockchain. An increased hash rate signifies enhanced network security and a quicker ability to solve cryptographic puzzles.
Memory Pool (Mempool) – The location where unconfirmed transactions reside until they can be included in a block. Miners select transactions from the mempool according to the fees they offer.
Miners – Individuals who utilise computational power to confirm transactions and protect the blockchain. In exchange, they receive block rewards and transaction fees.
Mining – Involves verifying and incorporating new transactions into the blockchain. Miners race to solve cryptographic challenges, and the one who succeeds first gets the opportunity to add the next block.
Mining Pool – Comprises a group of miners who collaborate by pooling their computational resources to improve their chances of successfully solving a block. The rewards are then allocated to the participants based on their contributed power.
Consensus Mechanisms
Delegated Proof-of-Stake (DPoS) – A consensus model in which token holders select a limited number of delegates responsible for validating transactions and producing blocks. It provides quicker performance and greater efficiency than conventional Proof-of-Stake.
Liquid Proof of Stake (LPoS) – A consensus method that enables token holders to either stake their coins directly or delegate them to validators. It enhances flexibility by permitting stakers to transfer or withdraw their stake without extended lock-up durations.
Proof of Stake (PoS) – A consensus method in which validators are selected to approve transactions based on the quantity of cryptocurrency they put up as collateral. This approach is more energy-efficient compared to Proof of Work.
Proof of Work (PoW) – A consensus approach in which miners tackle intricate mathematical problems to authenticate transactions and protect the network. While it requires significant energy, it offers a high level of security.
Proof-of-Authority (PoA) – A consensus method in which a select group of trusted validators authorise transactions and generate blocks. It provides enhanced efficiency and speed but is comparatively more centralised than other approaches.
Proof-of-Burn (PoB) – A consensus mechanism wherein participants must eliminate coins by transferring them to an address that cannot be used, demonstrating their commitment. In exchange, they obtain the opportunity to mine or validate blocks, fostering both scarcity and security.
Proof-of-Developer (PoD) – Refers to a principle where projects showcase evidence of genuine, engaged developers supporting them. It assists investors in recognising authentic teams and steering clear of fraud in the cryptocurrency industry.
Tokens and Assets
Altcoin – A play on words “alternative” and “coin,” which when merged, meant another form of cryptocurrency or tokens other than Bitcoin. This diversified cryptocurrency built on different blockchain networks has distinct technical features and more often address the shortcomings of the original Bitcoin, hence, offering new functionalities beyond payments.
Bitcoin – A cryptocurrency in the digital age that is closely attributed to fiat. It was introduced by Satoshi Nakamoto in 2009 as a peer-to-peer payment method that operates on a decentralised blockchain. Unlike fiat, this cryptocurrency isn’t backed by a governing body nor widely considered a legal tender for financial transactions. As of September 2025, only two countries have recognised Bitcoin as legal tender – El Salvador and the Central African Republic.
Crypto Token – A digital unit of value built on top of established blockchain networks whose functionality centers on facilitating transactions on-chain, including accessing services, voting, participating in decentralised finance (DeFi) or playing games.
Cryptocurrency – A cryptographic form of money that is native to blockchain. These assets are created through the process of mining and have no central issuing and regulating authority.
Fungible Token – Fungible tokens are units of value that can be exchanged for one another, indicating that every token of the same type is the same as another. Cryptocurrencies, such as BTC and ETH, are considered fungible since one coin is equivalent to another.
Non-Fungible Token (NFT) – Individual digital tokens that signify ownership of unique assets, including art, music, or virtual items in games. Unlike cryptocurrencies, NFTs cannot be exchanged on a one-to-one basis.
Stablecoin – A programmable cryptocurrency that is tied to a reserve asset to maintain a “stable” value. Despite being pegged to a financial asset, often the US dollar, stablecoins are not backed by central banks and governments but by private entities. While their value may be less volatile than Bitcoin and altcoins, their existence also faces risks, including issues concerning de-pegging, liquidity and issuance controls.
Tokenisation – Tokenisation refers to the method of transforming tangible assets, such as real estate or shares, into digital tokens recorded on a blockchain. This enables partial ownership, simplified transfers, and increased liquidity.
Utility Token – A utility token grants entry to a product, service or feature within a blockchain environment. In contrast to security tokens, they are not intended for investment purposes but rather serve as practical instruments within a platform.
Markets and Trading
Bear Market – A bear market contrasts with a bull market, characterised by a prolonged decrease in prices. This typically indicates a sense of pessimism, lower demand, and a wary approach from investors.
Bull Market – A financial environment marked by increasing prices and robust investor optimism. In the cryptocurrency sector, it typically leads to a surge in trading activity and additional investments.
Crypto Exchange – A digital marketplace that falls under three types: decentralised, centralised and hybrid. This marketplace acts as a broker in the Bitcoin space, with its operation focusing on helping users sell, buy and trade cryptocurrencies.
Exchange-Traded Fund (ETF) – An investment vehicle that is bought and sold on stock markets, monitoring the performance of specific assets or a collection of assets. Cryptocurrency ETFs, such as those tied to Bitcoin, provide investors the opportunity to gain exposure without physically possessing the coins.
Fully Diluted Valuation – The complete market value of a cryptocurrency assuming all potential tokens are available in circulation. It aids investors in evaluating a project’s future prospects and in comparing valuations.
Futures – Financial agreements that require the buyer to acquire, or the seller to dispose of, an asset at a set price on a specified future date. In the cryptocurrency market, traders to bet on price fluctuations without needing to possess the actual coins.
HODL – A slang term in the cryptocurrency community that signifies retaining assets over the long term rather than selling them in times of market fluctuations. It embodies a conviction in future price appreciation.
Initial Coin Offering (ICO) – A fundraising technique in which a project offers newly created tokens directly to investors, frequently before the platform is completely built. This approach gained popularity during the cryptocurrency surge of 2017 but is now subject to stricter regulations due to fraudulent activities.
Initial Exchange Offering (IEO) – A fundraising approach where a cryptocurrency initiative offers its tokens via a centralised exchange. The exchange serves as an intermediary, enhancing trust and security for investors.
Initial Public Offering (IPO) – A conventional financial counterpart of an ICO, which allows a private company to sell its shares to the public for the first time. This process raises funds for the company and gives investors a chance to acquire ownership interests.
Market Capitalisation – The overall value of a cryptocurrency, determined by multiplying its current price by the total quantity of coins that are currently available. This metric is commonly utilised to assess the scale and importance of various projects.
Mircropayments/microtransactions – These transactions typically involve very small amounts, frequently less than a cent, facilitated by cryptocurrencies. They are beneficial for activities such as tipping, gaming, and pay-per-use services where conventional systems would impose significant fees.
Pump and Dump – A deceptive plan in which a group raises the price of a cryptocurrency artificially by creating excitement, then promptly sells it at its highest point. This results in unsuspecting investors incurring losses.
Security token offering (STO) – A fundraising approach in which tokens signify ownership of tangible assets like equity, debt, or real estate. Unlike initial coin offerings, STOs operate under regulation and must adhere to securities legislation, providing greater protection for investors.
Shilling – The promotion of a cryptocurrency or project, often in an exaggerated or misleading manner, aimed at boosting its value. This practice is frequently seen in pump-and-dump schemes.
Whale – A person or organisation that possesses a substantial quantity of cryptocurrency. The trades made by these individuals or entities can greatly impact market prices because of the scale of their assets.
Blockchain Upgrades and Scaling
Bitcoin Fork – A modification in Bitcoin’s protocols that results in the formation of a new blockchain version. Forks can be classified as “soft” or “hard.”
Cryptography – The practice of protecting information through mathematical methods such as encryption and hashing. In the context of blockchain, it protects data, maintains privacy and confirms transactions.
Cryptography and Security Foundations
Double Spending – A possible vulnerability in digital currencies, wherein a single coin can be used multiple times. Blockchain technology addresses this problem by authenticating and documenting transactions through consensus among the network participants.
Hard Fork – A significant alteration in a blockchain’s protocols that lacks backward compatibility, resulting in a division into two distinct chains. An instance of this is Bitcoin Cash (BCH), which split from Bitcoin in 2017.
Layer 2 Solutions – Technologies developed on existing blockchains aim to enhance scalability and efficiency. They execute transactions outside the main chain while maintaining security linked to the primary chain.
Lightning Network – A secondary payment protocol developed on the Bitcoin blockchain to facilitate quicker and less expensive transactions. It functions by establishing off-chain payment channels that are reconciled later on the primary blockchain.
Merkle Proof – A cryptographic technique used to confirm that a particular transaction is included in a block. It enables quick validation without requiring access to the complete blockchain.
Merkle Root – The ultimate hash found at the peak of a Merkle tree, encapsulating all transactions within a block. It offers an efficient method to confirm that the data remains unaltered.
Merkle Tree – A data structure that arranges transactions within a block through the use of cryptographic hashes. This structure facilitates the efficient validation of extensive data sets by requiring the verification of only a limited number of hashes.
Secure Hash Algorithm 256-bit (SHA-256) – A cryptographic hash function utilised in Bitcoin. It transforms input data into a fixed-length 256-bit string, guaranteeing the security and permanence of transactions.
Segregated Witness (SegWit) – An upgrade to the Bitcoin protocol that decouples transaction signatures from the transaction details. This leads to a reduction in block size, enhances transaction throughput and addresses problems related to transaction malleability.
Sharding – Sharding is a scalability technique that divides a blockchain into smaller sections, with each able to handle its own transactions and smart contracts. This enhances the overall speed and efficiency of the network.
Soft Fork – A blockchain update that remains backward compatible, allowing older nodes to acknowledge new blocks as valid. It implements new regulations without causing division in the chain.
Turing Complete – A system’s capability to carry out any computation, provided that sufficient resources are available. Numerous blockchains, such as Ethereum, achieve Turing completeness, which allows for intricate smart contracts and decentralised applications (dApps).
Zero-Knowledge Proof (ZKP) – A cryptographic technique enabling one party to demonstrate the validity of a statement without disclosing the actual information. This method is commonly utilised in blockchain technology to improve both privacy and security.
Advanced and Emerging Technologies
AI Agents – Computer programs designed to gather information, make decisions and perform actions to reach designated objectives, frequently requiring little human involvement. They integrate reasoning, learning, and automation to accomplish tasks such as responding to inquiries, carrying out workflows or engaging with other systems.
AI Data Centre – An AI data center is a dedicated facility built to manage the high computing power, storage and networking demands necessary for developing and executing AI models.
Artificial Intelligence – A technology that encompasses computer systems created to undertake activities typically needing human cognitive abilities, including learning, making decisions and solving problems.
Interoperability – The capability of various blockchains or digital platforms to interact and exchange data smoothly. This enables users to move assets or information between different systems.
Post-Quantum Cryptography – An area of cryptography dedicated to the development of algorithms designed to withstand potential attacks from quantum computers. It guarantees enduring security for cryptocurrencies and digital communications.
Post-Quantum Readiness – This pertains to the readiness of systems and organisations to respond to challenges posed by quantum computers. In the realm of cryptography, it includes the implementation of post-quantum cryptographic standards prior to the advancement of quantum technology.
Quantum Computing – An advanced method of computing that utilises quantum bits (qubits) for information processing. It holds the promise of rapidly solving intricate problems, significantly outpacing classical computers, which may jeopardise existing cryptographic systems.
Quantum Cryptography – Utilizes the concepts of quantum mechanics to establish extremely secure communication systems. It offers encryption techniques that are theoretically unbreakable by identifying any attempts at eavesdropping.
Web3 or Web 3.0 – A blockchain-driven, decentralised Internet that utilises smart contracts and cryptocurrencies. It highlights the importance of user ownership, digital identity, and unrestricted access to applications free from centralised authority.
Decentralisation and Governance
Bounty – A reward given for fulfilling particular tasks, including bug reporting, marketing or promoting a project. Bounties motivate community involvement and contributions to development.
Decentralisation – The allocation of power and decision-making away from a centralised authority. In blockchain technology, this decentralisation guarantees that not a single organisation has control over the network, fostering security and trust.
Decentralised Finance (DeFi) – Financial services built on blockchain technology that function independently of banks or middlemen. Instances include decentralised platforms for lending, borrowing and exchanges that utilise smart contracts.
Degen – This slang term, abbreviated as “degenerate,” describes traders who engage in high-risk cryptocurrency speculation, frequently without thorough research. It embodies a culture of speculative and at times irresponsible investing within crypto communities.
Distributed Ledger Technology (DLT) – A digital solution for capturing information across various computers, guaranteeing synchronised and shared records. While blockchain represents one type of distributed ledger technology (DLT), it is not the sole form available.
Peer-to-Peer (P2P) – A distributed system where users engage with each other directly, bypassing third parties. In the context of blockchain, this facilitates the direct transfer of value among users.
Currency Types
Central Bank Digital Currency (CBDC) – A digital representation of a nation’s official currency, created and overseen by its central bank. In contrast to cryptocurrencies, it is centralised and entirely supported by the government.
Digital Asset – A broad category of properties with identifiable value that is stored digitally. It can represent traditional items such as videos, documents, audios and rights to newer assets like non-fungible tokens (NFTs), central bank digital currencies and tokens.
Fiat – Atomic Swap – A direct trade of cryptocurrencies between two different blockchains without requiring a middleman. Smart contracts guarantee that either both parties fulfill the transaction or nothing occurs. Money that is issued by a government, including currencies like the US dollar, euro or yen. Its value arises from being supported by a government and recognised as legal tender, rather than being linked to a physical asset.
Economics and Events
Atomic Swap – A direct trade of cryptocurrencies between two different blockchains without requiring a middleman. Smart contracts guarantee that either both parties fulfill the transaction or nothing occurs.
Bitcoin Whitepaper – The initial document from 2008 authored by Satoshi Nakamoto that presented Bitcoin. It describes the functionality of the cryptocurrency and the foundations of a decentralised cash system based on peer-to-peer interactions.
Halving/Halvening – An occurrence that cuts the block reward for miners by 50%. This event happens approximately every four years, plays a role in regulating Bitcoin’s supply, and is frequently associated with fluctuations in price.
Staking – The process of setting aside cryptocurrency within a Proof-of-Stake (PoS) network to assist in transaction validation and maintain blockchain security. In exchange, participants receive rewards, akin to receiving interest.
Testnet – A blockchain network utilised for experimentation and development without any financial implications. Developers employ it to trial upgrades, smart contracts and applications prior to launching them on the mainnet.
Smart Contracts and Applications
Decentralised Applications (dApps) – Applications that function on a blockchain rather than on centralised servers. They utilise smart contracts to operate independently of intermediaries, providing services such as gaming, finance and marketplaces.
Decentralised Autonomous Organisation (DAO) – Systems built on blockchain technology that are managed by smart contracts and token holders instead of conventional management structures. Members participate in voting on proposals, which ensures that the system is transparent and driven by the community.
Smart contract – A programme that operates independently and is recorded on a blockchain, automatically implementing the terms of a contract once specific conditions are satisfied. They eliminate the necessity for intermediaries and facilitate transactions based on mutual trust.
By enhancing our comprehension of these crypto terms, we’re not merely staying abreast of the future – we’re actively contributing to its formation. Witness innovation firsthand at the London Blockchain Conference, on 22 – 23 October 2025 and seize the opportunity to engage in an engaging dialogue by registering here. You might be in for a surprise, as the surge of blockchain advancements might just begin with you.
