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Glossary

The complete glossary for Web3 and DappRadar
The glossary serves as a starting point for those new in Web3, or those interacting with dapps for the first time. The glossary covers industry terminology, crypto culture, and of course an explanation of DappRadar's very own products and metrics. Do you know what UAW means?
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A B
C D E
F G H I
J K L M
N O P
Q R S
T U V
W X Y Z

2-factor authentication (2FA)

Two-factor authentication (commonly referred to as 2FA) is a system where a user will require separate methods of authentication to access an account or service. This is commonly achieved by using a password first and then using a code sent via SMS or generated through a 2FA app. At DappRadar we prefer to use 2FA apps over SMS, which is prone to scams.
Examples: Google Authenticator, Authy

51% attack

A cyber attack where a single entity gains control over more than half of the nodes or mining power in a blockchain network. This then allows the perpetrator to exclude certain transactions or to double spend cryptocurrency.

A

Aavegotchi

An open-source community-owned NFT gaming protocol with strong connections into decentralized finance (DeFi). Players use an Aavegotchi, sometimes called Gotchi, to move around in the Gotchiverse, a virtual world made by Pixelcraft Studios.

Account recovery

Account recovery is the process of allowing a user to restore their DappRadar account on their mobile device.

Adjusted TVL (aTVL)

Instead of calculating the Total Value Locked in DeFi smart contracts based on crypto prices, aTVL uses a fixed price. This way aTVL can clearly show growth or decline in the DeFi space.

Airdrop

An airdrop is the practice of giving away tokens related to cryptocurrency or an NFT project. It is normally given to users who qualify certain criteria or accomplish certain tasks. This is usually done as a promotion.

All Time High (ATH)

The highest price an asset has ever had, often measured in US dollar.

All Time Low (ATL)

The lowest price an asset has ever had, often measured in US dollar.

Alpha

The most valuable information someone can get, and potentially so valuable they can discover a new Web3 project early.

Altcoin a.k.a. alts

Altcoins used to refer to every cryptocurrency that’s not bitcoin. But now it’s more used for coins with small market caps.

Animoca Brands

A Web3 company that develops, invests in, and publishes blockchain-powered games and NFT projects. They invested in or own projects like The Sandbox, Dapper Labs, OpenSea, Axie Infinity & more.

Annual Percentage Rate (APR)

APR is the yearly rate of interest that an individual must pay on a loan, or that they receive on a deposit account.
  • Tip: Use only the acronym

Annual Percentage Yield (APY)

APY is the total amount of interest you earn on a deposit account over one year, assuming you do not add or withdraw funds for the entire year.
  • Tip: Use only the acronym

Apes

Apes typically refers to the popular Bored Apes Yacht Club NFT project. "Apes" has also become a slang term to refer to NFT collectors in general (regardless of what they collect).

Apeing

To ape into a project, means that someone invests into crypto or NFTs without doing proper research. Apeing is done by degens.

Arbitrum

Arbitrum is a Layer-2 blockchain for Ethereum that uses optimistic rollups for scalability. The rollup technology of Arbitrum results in decreased gas fees and a significantly less congested Ethereum network.

Avalanche

The Avalanche blockchain is an open-source platform for launching decentralized applications (dapps) and enterprise solutions in one interoperable, highly scalable ecosystem. The mainnet went live in late September 2020.

Axie Infinity

Axie Infinity is a play-to-earn blockchain game where users can breed and battle their NFT characters. Vietnamese game studio Sky Mavis made the game, and has plans to expand the ecosystem with the help of third-party developers.

B

Bag

When someone holds a bag of a token, it means they own quite an amount of that token. A bag suggests a large amount.

Balance

DappRadar metric. Total value of assets in dapp's Smart Contracts.

Bear market

A bear market is a prolonged period of downward price action in the markets. In crypto, a bear market is typically defined as a prolonged period of time where the prices of assets in the market are consistently falling. This can be a result of a variety of factors, such as a decrease in demand for certain assets, an increase in supply of certain assets, or overall negative sentiment in the market. Bear markets can last for extended periods of time, and can often be difficult to predict when they will occur. However, there are typically certain signs that a bear market is beginning, such as a decrease in trading volume or a sustained period of price declines. It’s the opposite of a Bull Market.

Bearish

Characteristic of a person who tends to believe that the market prices will go down.

Binance

Binance is one of the most used Centralized Exchanges in the world. The company behind it created the BNB Chain.

Bitcoin (BTC)

Bitcoin is a decentralized digital currency that can be transferred on the peer-to-peer Bitcoin network. BTC is often described as digital gold. Sometimes BTC is also abbreviated as XBT. The smallest denomination of a bitcoin is satoshi (sat). Bitcoin bridged to other blockchains, for example Ethereum, is known as Wrapped Bitcoin or WBTC.

Block

A blockchain registers a batch of transactions into block, storing all changes. Every block contains information about the previous block, forming a blockchain.

Block explorer

A block explorer is an online tool that allows users to search for historical information on the blockchain. Every transaction, wallet address and block gets registered, and becomes insightful through a block explorer.

Blockchain

A blockchain is a digital ledger that records transactions that anyone can view and verify - in a decentralized way. It is a decentralized database that is spread across a network of computers. Blockchains are secure because they use cryptography to validate each transaction. It’s often used for cryptocurrency transactions.

Blockchain trilemma

The blockchain trilemma is the idea that it is not possible to have all three of the following qualities in a single blockchain network: security, decentralization, and scalability.

Blue-chip NFTs

Blue-chip NFT collections are those projects that have demonstrated a high and stable market value over the not-so-long trajectory of the NFT market. For instance, Bored Ape Yacht Club, CryptoPunks, Art Blocks Curated, Doodles, and World of Women.

BNB Chain

BNB Chain is a community-driven, open-sourced, and decentralized ecosystem. The rebranded BNB Chain comprises the BNB Beacon Chain and BNB Smart Chain. BNB Beacon Chain, previously Binance Chain) serves the purpose of governance (i.e., staking and voting). The BNB Smart Chain remains Ethereum Virtual Machine-compatible, performs consensus mechanisms, and becomes a multi-chain hub.

Boost

Boost is a DappRadar product feature that allows you to show support to any dapp listed on our Rankings.
  • Example: As found in Staking: Support your favorite Dapp with a little
    :sparkles:
    Boost of confidence.

Boosted dapps

Boosted dapps are those where its users have chosen to show support on the DappRadar Rankings.

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club is an collection of 10,000 NFTs that began life as a simple profile picture (PFP) collection. The project was created and exists on the Ethereum blockchain and is an example of generative art. It’s one of the most famous and expensive NFT collections of all time.

Bridge

A bridge is a set of contracts that help move assets, tokens, from one blockchain to another.

BTC Fear & Greed Index

The crypto fear and greed index generates a number between 1 and 100. The number 1 indicates that the Crypto market is experiencing extreme fear and people are selling their cryptos. On the other end of the spectrum, 100 suggests that the crypto market is getting greedy and that investors are buying.

BTFD

BTFD stands for Buy the f*ing dip. It’s a popular slang in the crypto community that serves to influence others to buy when they believe a project reached its bottom.

BUIDL

Buidl stand for “build“. It is a way to call the community of a certain project to help build it, instead of passively holding it (HODL).

Bull market

A bull market is the opposite of a bear market, and is defined as a prolonged period of time where the prices of assets in the market are consistently rising. This is typically indicative of an increase in demand for certain assets, or a decrease in supply of certain assets. Bull markets can last for extended periods of time, and often coincide with positive sentiment in the market. Just as with bear markets, there are typically certain signs that a bull market is beginning, such as an increase in trading volume or a sustained period of price gains.

Bullish

Characteristic of a person who tends to believe that the market prices will go up.

Burn

To burn a token, asset, or NFT, is to remove it from circulation and reduce its supply.

C

Cardano

Cardano is a proof-of-stake blockchain platform and home to the ADA cryptocurrency. Cardano boldly claims it is the first blockchain platform to evolve out of a scientific philosophy and a research-first-driven approach.

Centralized

A centralized project means that its control is concentrated in the hands of a small group of people or organizations.

Centralized exchange (CEX)

Centralized exchanges are exchange markets where the organization is centralized, controlled by an authority. Some centralized exchanges include Coinbase, Binance, and Crypto.com.

Centralized finance (CeFi)

Traditional finance, centralized finance, or CeFi, refers to banks and any financial institution that is not decentralized.

Chain

A chain, or blockchain, is a digital ledger that records transactions that anyone can view and verify - in a decentralized way. It is a decentralized database that is spread across a network of computers. Blockchains are secure because they use cryptography to validate each transaction. It’s often used for cryptocurrency transactions.

Circulating supply

The amount of coins that are circulating in the market and are tradeable by the public. It is comparable to looking at shares readily available in the market (not held & locked by insiders, governments).
  • Example: $RADAR Circulating Supply 700,658,938

Coin

A specific cryptocurrency or token native to a blockchain.
  • Example: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE)

Collateralization

When you secure a loan with a valuable asset.

Cold wallet

A wallet that's only used for storing assets, and one that doesn't actively connect with any dapps or exchanges. Therefore this is not a software wallet, but a hardware wallet. A cold wallet is the polar opposite of its software counterpart, although both are used for receiving, sending, collecting, and tracking ownership of crypto assets. Whereas software wallets come in the form of a browser extension or mobile app, hardware wallets are offline USB / thumb drive-like devices.

Consensus

Agreement between nodes in a blockchain network. This is required for transactions to be approved and verified, after which new blocks get added to the blockchain.

Consensus mechanism

A process through which blockchain nodes reach agreement on changes in the state of the network. For example, Proof-of-Work, Proof-of-Stake, Delegated Proof-of-Stake, Proof-of-Authority etc.

Contribute-to-Earn (Contribute2Earn, C2E)

A business model that rewards every contributor in an ecosystem financially, either directly or indirectly.

Cross-chain staking

Cross-chain staking allows users to stake their tokens on one blockchain, and claim the rewards on another. DappRadar pioneered this with the help of LayerZero, with the introduction of RADAR staking.

Crypto asset

A crypto asset is a digital asset that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies, such as Bitcoin, are the best-known type of crypto asset. Other types of crypto assets include non-fungible tokens (NFTs).

Cryptocurrency

A cryptocurrency is a type of digital asset that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies, such as Bitcoin, are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.

Cryptography

The study of cryptology techniques to secure communication.

CryptoPunks

An NFT collection on the Ethereum blockchain, originally using the ERC-20 token standard. Wrapped CryptoPunks allow the NFTs to comply with the ERC-721 token standard. The project launched in June 2017, and is considered a holy grail among NFT collectors. Originally launched by Larva Labs, now owned by Yuga Labs.

Crypto winter

A crypto winter is a term used to describe a period of time where the prices of cryptocurrency assets are in decline. Crypto winters typically follow periods of hype and speculation in the market.

CZ a.k.a. Changpeng Zhao

Changpeng Zhao, commonly known as CZ, is a Chinese-Canadian founder of Binance, the world’s largest cryptocurrency exchange by trading volume. According to Forbes he has a net worth of $17.4 billion (2022).

D

Daily Active Users (DAU)

Users that are actively interacting with a dapp daily. (on-chain or off-chain)

Dapp

A decentralized app is a computer application that runs on a decentralized computing system.

DappRadar

The World's Dapp Store
  • Example: DappRadar ✅, but not Dapp Radar, Dappradar, DapperRaddar ❌

DappRadar Community Proposal (DCP)

A proposal coming from the DappRadar community to develop, initiate or change something within the DappRadar ecosystem. A DCP is first discussed on Discord, after which a proposal gets formulated on the Forum. Eventually the community will vote for a DCP using their RADAR tokens as voting power.

Decentraland (DCL)

Decentraland is a virtual world in the metaverse where everybody can freely enter, invest and participate in content creation. Players, investors and community members own everything in Decentraland.

Decentralization

Decentralization refers to the distribution of power or authority away from a central entity. Decentralization is often used as a measure of how distributed a blockchain network is.

Decentralized autonomous organization (DAO)

A DAO is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.

Decentralized exchange (DEX)

A decentralized exchange is a type of cryptocurrency exchange that does not rely on a central authority to match orders or hold assets. Decentralized exchanges are often created on blockchain platforms and use smart contracts to facilitate transactions. Because they are not subject to the same regulations as centralized exchanges, decentralized exchanges often offer a greater degree of anonymity to users.

Decentralized finance (DeFi)

Decentralized finance, often referred to as DeFi, is a growing sector in the cryptocurrency industry that refers to the development of financial applications that are built on decentralized infrastructure. DeFi apps are typically powered by smart contracts and often offer a greater degree of transparency, security, and openness than traditional financial applications. The sector has seen rapid growth in recent years.

Degen

A person who invests a lot into the Web3 space without doing proper research. A degen takes high-risks, winning some and losing some. Short for degenerate. A degen often apes.

Diamond hands

Someone with diamond hands shows conviction on a certain asset. They have no plans to sell their asset, despite market volatility and extreme drops in price. Opposite of paper hands.

Digital identities (DID) a.k.a. decentralized identifiers

DIDs, digital identities or decentralized identifiers, are a type of identifier that allows individuals to control their own data. They are often used in conjunction with dapps. Crypto wallets and their unique address could be seen as a DID.

Digital asset

A digital asset is a type of asset that exists in digital form. Digital assets can be created, traded, and stored electronically. Bitcoin, the first and most well-known cryptocurrency, is an example of a digital asset. Other types of digital assets include non-fungible tokens (NFTs). You can find all your digital assets on Ethereum, BNB Chain and Polygon in your DappRadar Portfolio.

Dip

A dip is a short-term decline in the price of an asset. Buy the dip is an investment strategy that suggests buying assets when they are experiencing a dip in price.

Due diligence (DD)

The process of conducting your own research on cryptocurrency, stocks or others assets, before investing. Doing your own DD is important, something not done by a degen.

Do your own research (DYOR)

Similar to DD, used to remind people to do their own investigation into an asset before investing in it.

Dynamic NFT

They are a type of NFTs that change according to certain circumstances that trigger their smart contracts. Also often referred to as “Living NFTs”, they can have their characteristics change because of a special event or a real-world occurrence and also see their value and demand shift.

E

Ethereum Request for Comments (ERC)

A standard smart contract system on which the contracts on Ethereum are built. See:
  • ERC-20
  • ERC-721
  • ERC-1155

ERC-20

ERC-20 is a technical standard for smart contracts on the Ethereum blockchain that specifies how these contracts should function. ERC-20 tokens are a type of cryptocurrency that is built on the Ethereum blockchain and compliant with the ERC-20 standard. Examples of ERC-20 tokens include USD Coin (USDC), Shiba Inu (SHIB), and Wrapped Bitcoin (WBTC). These are fungible tokens.

ERC-721

ERC-721 is a technical standard for non-fungible tokens (NFTs) on the Ethereum blockchain.

ERC-1155

ERC-1155 is a token standard that supports fungible and non-fungible tokens. It can combine multiple tokens into one transaction, saving gas fees.

Esports

Esports is a term used to describe the competitive gaming industry. Esports often refers to professional gamers who compete in tournaments for prize money.
  • Example: In esports, esporters compete in all kinds of games.

Ether (ETH)

Ether (ETH) is the native cryptocurrency of the Ethereum blockchain. Ether is used to pay transaction fees and gas costs on the Ethereum network. Ether can also be traded on cryptocurrency exchanges.

Ethereum

Ethereum is a decentralized, open-source blockchain that runs smart contracts. Smart contracts are applications that run exactly as programmed without any possibility of fraud or third-party interference. It was created in 2013 by Vitalik Buterin. The protocol's native coin is called Ether (ETH), and it's one of the most famous and used cryptocurrencies in the world.

Ethereum Improvement Proposal (EIP)

A standard proposal format for the Ethereum development community. Used to implement new features or processes onto the Ethereum blockchain.

Ethereum Name Service (ENS)

Ethereum Name Service (ENS) is a decentralized Domain Name System (DNS) on the Ethereum blockchain. ENS allows users to register and resolve domain names on the Ethereum blockchain.

Exchange

A cryptocurrency exchange is a platform that allows users to buy and sell cryptocurrencies. Some exchanges only offer crypto-to-crypto trading, while others also offer fiat-to-crypto trading. exchanges typically charge a fee for each transaction. They can be decentralized, such as Uniswap, or centralized, like Binance.

F

Fam

Short for family, often referring to an online community.

Few

Short for ‘few understand’. This emphasizes we’re still early in the crypto space.

Fiat

Government-issued legal tender—what most of us know as "money".

Financial advice (FA, NFA)

Financial advice is professional guidance about investing and financial planning. Financial advisors can give advice on a wide range of topics, including retirement planning, saving for college, and investing in stocks, bonds, and other assets. DappRadar does not offer financial advice on any of its publishings (No financial advice, NFA).

Flippening

A reference to the possibility of ETH getting a higher market cap than bitcoin. Flippening often gets used in similar situations between other cryptocurrencies or NFT projects as well.

Flow

A blockchain ecosystem developed by Dapper Labs. Hosts projects like NBA Top Shot, Chainmonsters and BloctoSwap. This is an energy efficient Proof-of-Stake network that uses different types of nodes, each with their own function. This allows more flexibility to scale up the network.

Floor price

Lowest sale price for an NFT in a collection. DappRadar calculates this based on actual sales, while marketplaces often refer to the cheapest NFT asset available in a collection.

Floor sweeping

Floor sweeping is the process of buying all the remaining assets, like NFTs, at the current floor price. This is often done in order to prevent the price of an asset from falling any further.

FOMO

FOMO is an acronym for "fear of missing out." It refers to the feeling of anxiety that comes from thinking that you are missing out on a good investment opportunity. FOMO can lead to impulsive and irrational investment decisions. Many people experience FOMO when investing in cryptocurrencies, as they can be volatile and offer the potential for high returns. However, crypto speculation can also lead to large losses.

Fork

A fork in crypto is a change to the protocol of a blockchain network. A fork can be either a hard fork or a soft fork. They are used to upgrade or change a blockchain.

Fractionalize

Fractionalize means to divide something into smaller parts. Fractionalization is often used in the context of fractionalizing assets or tokens.

Fren

Fren is a term used in the cryptocurrency community to refer to a friend or close associate. Frens often help each other out with trading or investing in cryptocurrency.

FUD

FUD is an acronym that stands for Fear, Uncertainty, and Doubt. FUD is often used to describe negative or misleading information that is spread in an attempt to cause panic or sell-offs.

Full node

A full node is a type of node on a blockchain network that stores a copy of the entire blockchain. Full nodes are often used to validate and relay transactions on the network.

Fully Diluted Valuation (FDV)

FDV = Current Price x Max Supply. The market capitalization (valuation) when the max supply of a coin would be in circulation.
  • Example: RADAR Fully Diluted Valuation $12,345,678.90

Fundamental analysis (FA)

Fundamental analysis is a method of evaluating an asset by studying its economic, political, and social factors. Fundamental analysts believe that these factors can affect the price of an asset and that by analyzing these factors, they can predict future price movements.

Fungible

Fungible refers to the fungibility of a good or commodity whose individual units are essentially interchangeable. One bitcoin is the same as another bitcoin, there’s no difference.

Futures

A future is a type of contract in which two parties agree to buy or sell an asset at a later date, at a price that is agreed upon today. Futures contracts are often used by investors to speculate on the future price of an asset.

G

GameFi

GameFi is a term used to describe games that use cryptocurrency or blockchain technology. GameFi games often allow players to earn cryptocurrency while they play. It unites the words Game and Finance, in this case, decentralized finance (DeFi).

Gas

Gas is a unit of measurement used to determine the amount of work that is required to execute a transaction on a blockchain. It is often used to pay fees to miners.

gm

GM stands for Good Morning. It is a term used in the cryptocurrency community to greet each other in the morning, afternoon or evening.

Governance

Governance refers to the process by which decisions are made in an organization or system. It is often used to refer to the decision-making process in a blockchain network.

Gwei

Gwei is a unit of measurement for gas prices on the Ethereum blockchain. Gwei is often used to denote the amount of ETH that is required to pay for a transaction.

H

Hacking

Hacking is the unauthorized access or use of computer systems, networks, or data. Hacking can be used to gain access to private information or to disrupt services. Hacks have become common in the blockchain industry as projects, investments, and interests evolve.

Hard fork

A hard fork is a type of fork that results in a permanent split in the blockchain. It often occurs when there is a disagreement among the developers or users of a blockchain project.

Hardware wallet

A hardware wallet is a physical device that stores your cryptocurrencies offline. Hardware wallets are considered to be the most secure type of cryptocurrency wallets, as they are not susceptible to hacking like software wallets.

Harvesting

Harvesting is a synonym for claiming, meaning that participants can claim rewards for certain activity in a Web3 project, i.e. staking.

Hashing

Hashing is the process of converting data into a fixed-sized alphanumeric string. It is often used to create unique IDs or to encrypt data.

Hash rate

A hash rate is the number of hashes that can be performed in a given period of time, used to measure the performance of a mining rig.

HFSP

Have fun staying poor

HODL

Hodl is a term used in the Web3 community to describe holding onto an asset for a long-term investment - a misspelling of the word "hold."

Hot wallet

A hot wallet is a type of cryptocurrency wallet that is connected to the internet or software. Unlike cold wallets or hardware wallets, they are considered to be less secure.

Hyperinflation

Hyperinflation is a type of inflation that occurs when prices increase at an accelerating rate, such as at the loss of value of a currency.

I

Initial Coin Offering (ICO)

ICO stands for Initial Coin Offering. It is a type of fundraising event in which a new blockchain project sells tokens to investors in exchange for funds. The concept spawned a wide range of variations, including:
  • Initial Token Offering (ITO)
  • Initial Game Offering (IGO)

Immutable X

Immutable X is a Layer-2 scaling solution built on top of the Ethereum blockchain. It was designed and created to offer near-instant confirmation and near-zero gas fees for NFT trading and minting.

Impermanent loss

Impermanent loss, often referred to as IL, is a type of loss that can occur when providing liquidity to a pool. It happens when the price of an asset you are holding is too volatile, wether it increases or decreases.

Inflation

Inflation is a type of economic event in which the price of goods and services increase over time. Not to be mixed up with hyperinflation. Inflation can be caused by a variety of factors, such as an increase in the money supply.

Intellectual property (IP)

Intellectual property (IP) is a type of legal protection that covers intangible assets, such as ideas, designs, and trademarks. Some NFT projects offer collectors intellectual property rights along with the purchase of an NFT.

Interest rates

Interest rates are the percentage of an asset that a lender charges a borrower for the use of that asset. In the cryptocurrency world, interest rates are often used to denominate the amount of a loan in a lending platform.

Interoperability

Interoperability is the ability of different systems to work together. In the cryptocurrency world, it often refers to the ability of different blockchain networks to communicate with each other.

IPFS

The InterPlanetary File System (IPFS) is a protocol, hypermedia and file sharing peer-to-peer network for storing and sharing data in a distributed file system. IPFS uses content-addressing to uniquely identify each file in a global namespace connecting IPFS hosts.

IRL

IRL stands for In Real Life. It is often used online to refer to events or meetups that are happening offline.

J

JOMO

JOMO is an acronym for "joy of missing out." It refers to the feeling of contentment that comes from knowing that you are not missing out on a bad investment opportunity. JOMO can lead to more rational and thought-out investment decisions.

Jumppad

Jumppad is a type of smart contract that allows users to exchange one cryptocurrency for another, used for trading between different blockchain protocols.

K

Key

A key is a piece of data that is used to encrypt or decrypt information. In the cryptocurrency world, keys are often used to secure wallets and transactions. We also call this your private key, and it should never be shared with anybody.

Know Your Customer (KYC)

Procedures to verify the identity of a customer or client in a business relationship. Within the cryptocurrency space, this typically means verifying the real-life identity of a person behind a cryptocurrency wallet, or the identities of people running a project.

L

Lambo

Lambo is a term used in the cryptocurrency community to describe the purchase of a Lamborghini with cryptocurrency. It is often used as a goal or aspiration for cryptocurrency investors.
  • Example: wen lambo?

Laser eyes

Laser eyes is a term used by the crypto community to describe when someone is holding a cryptocurrency that they believe will increase in value. The term is often used when someone is speculating on a particular coin or token.

Layer-1 (L1)

Layer-1 (L1) refers to the main or base layer of a blockchain protocol. Bitcoin and Ethereum, for example, are Layer-1 protocols.
  • Example: Layer-2 ✅, but layer2 or Layer 2 ❌

Layer-2 (L2)

Layer-2 (L2) refers to an additional layer built on top of a Layer-1 blockchain protocol. The best known Layer-2 solution is the Lightning Network, which is built on top of Bitcoin. On Ethereum there's Immutable X, Arbitrum and Optimism.

Leverage

Leverage is the use of debt to finance the purchase of an asset. In the context of cryptocurrency, leverage is often used by traders to increase their exposure to a particular asset without having to put up the full amount of capital. Leverage can increase profits if the price of the asset goes up, but it can also magnify losses if the price falls.

Limit order

A limit order is an order to buy or sell an asset at a specific price. Limit orders are often used by traders to get the best price for an asset.

Liquidation

Liquidation is the process of selling an asset in order to pay off a debt. In the context of cryptocurrency, liquidation often occurs when a trader is unable to meet the margin requirements of their trade and is forced to sell their assets at a loss.

Liquidity

Liquidity is a measure of how easy it is to buy or sell an asset. Assets with high liquidity are often easier to trade than assets with low liquidity.

Liquidity pool

Funds locked in a smart contract, which facilitate trading and lending in a given exchange.

Liquidity pool tokens (LP tokens)

When users lock funds in a liquidity pool (i.e. ETH and RADAR on SushiSwap) they will receive liquidity pool tokens. These tokens represent ownership over a percentage of the total liquidity pool.

Liquidity provider (LP)

A liquidity provider is a person or entity that provides liquidity to an exchange or liquidity pool. Liquidity providers often get paid for their services in the form of a transaction fee, and are referred to as LPs.

Longing

Traders who go long on their position, expect the price to go up. Opposite of 'shorting'.

M

Magic Eden

One of the most used secondary NFT marketplaces, originally build only for Solana NFTs. From September 2022 on, you can also buy and sell Arbitrum and Ethereum NFTs on Magic Eden.

Mainchain

The mainchain is the original blockchain (of whatever ecosystem one is referring to.) The mainchain is often considered to be the most secure and reliable blockchain.

Mainnet

A mainnet is a decentralized network where transactions are live and can be seen by the public. The Ethereum blockchain, for example, has a mainnet and a test net.

Market cap

Market cap (or market capitalization) is the total value of all the assets in a market. Market cap for NFTs is determined by multiplying floor price times total supply
  • Example: RADAR market cap is $4,567,890

Market order

A market order is an order to buy or sell an asset at the best available price.

Masternode

A masternode is a type of node that is responsible for processing, verifying, and propagating transactions on a blockchain network.

Maxi

Maxi is a term used to describe an investor who buys a large amount of an asset all at once. Maxing out refers to buying the maximum amount possible.

Maximum supply

Refers to the maximum number of coins or tokens that will be ever created for a given cryptocurrency.
  • Example: RADAR Max Supply 10,000,000,000

Memecoin

A memecoin is a cryptocurrency that is created for the purpose of memes and social media. Memecoins often have low value and are not meant to be serious investments. However, some have got extremely popular and saw their volume and value increase to the top cryptocurrencies, for example, Dogecoin.

MetaMask

The world’s most famous cryptocurrency wallet software. Developed by ConsenSys.

Meta transaction

A blockchain transaction signed by a user and sent to a third party called a relayer to execute it and, thus, pay the gas fee.
  • Example: The Decentraland Foundation sponsors a relayer to allow users to interact with the platform’s web3 features without the burden of gas fees.
    Moreover, since Decentraland runs on multiple networks (Ethereum and Polygon), meta-transactions improve the user experience by allowing users to sign transactions in Ethereum that end up as transactions relayed on Polygon. Since a single relayer executes meta-transactions, these do not count as Unique Active Wallets.

Metaverse

A network of 3D virtual worlds focused on social connection, entertainment, services and more. Some metaverse worlds envision using cryptocurrencies, NFTs, and other blockchain-based technologies both to make exchanges within a given metaverse, and potentially transfer assets between different metaverse-enabled worlds, tools and services.

Mining

Cryptocurrency mining is the process of verifying transactions and adding them to the blockchain - validating them. Miners are rewarded with cryptocurrency for their work.

Minting

Minting is the process of creating new tokens on a blockchain. This often refers to users creating NFTs, but also refers to the addition of other tokens, such as increasing the quantity of a cryptocurrency in circulation.

Moon

Moon is a term used in the Web3 community to describe a situation where the price of an asset goes up very sharply. To the moon means that the project value will go up so high that it is out of reach.

Move-to-Earn (Move2earn, M2E)

Move-to-earn refers to games that allow players to earn cryptocurrency tokens by playing a fitness game, such as StepN, Step App and Sweat Wallet.

N

NFT domains

NFT domains are blockchain-based domain names that can be bought and sold like any other NFT.

NFT Dominance

NFT transaction volumes vs whole blockchain transaction volumes.

NFT Explorer / NFT Collection Explorer

A DappRadar tool that allows you to search through all NFTs and collections on the Ethereum network. Access real-time value, stats, sales activity, new collections, and more.

NFT Value Estimator

A DappRadar tool that uses machine-learning to provide estimates of value of NFTs in the most popular collections. This tool is intergrated in Portfolio, Single NFT Page or other DappRadar products.

NGMI

Not gonna make it

Nocoiner

Nocoiner is a term used to describe someone who does not own any cryptocurrency. It can be used as an insult by members of the crypto community.

Node

A node is a computer that is connected to a blockchain network and helps to maintain the network. Nodes can earn rewards for processing transactions and verifying blocks.

Non-fungible token, or NFT

NFT stands for non-fungible token. It is a type of digital asset backed by blockchain that, unlike cryptocurrencies, are unique. They can represent ownership of digital or physical items, such as art, virtual land, or collectibles.

Nonce

Nonce is a number that is used only once, typically in cryptographic applications. In the context of cryptocurrency, it is used in mining to refer to the number used to generate a block.

O

Off-chain

Off-chain refers to any activity that happens outside of a blockchain. This can include things like data storage, processing, and communication.

On-chain

On-chain refers to any activity that happens on a blockchain, and is registered through a transaction or signature.

OpenSea

OpenSea is one of the most popular secondary NFT marketplaces in the world. Initially it only presented Ethereum NFTs, but now also supports BNB Chain, Polygon, Arbitrum and Solana NFTs.

Oracle

An oracle is a type of service that brings real-world data onto a blockchain network. This data can be used to trigger smart contracts or to provide information to decentralized applications (dapps).

Orderbook

An orderbook is a list of all the buy and sell orders for an asset on an exchange.

Ordinals

Ordinals is a protocol that allows fully on-chain NFTs to exist on top of the Bitcoin blockchain. The Ordinals protocol operates by assigning unique identification to each individual satoshi (the smallest unit of Bitcoin) and appending additional data via an inscription.

P

Paper hands

Someone who sells their assets very fast, sometimes even at a loss, has paper hands. Having paper hands shows no conviction in the project. Opposite of diamond hands.

Passive income

Passive income is income that is generated without the need for active work. Many people in the cryptocurrency space generate passive income by staking their coins or tokens.

Peer-to-peer (P2P)

Peer-to-peer network refers to a decentralized network where each participant (or node) can connect directly with every other participant. Peer-to-peer financial transactions mean that there is no need for a middleman, such as a bank.

Pegged currency

A pegged currency is a type of cryptocurrency that is pegged to another asset, such as the US dollar. This means that the price of the currency is stable and not subject to the volatility of the cryptocurrency market.

Permissionless

Permissionless refers to a system that does not require any kind of permission from a central authority in order to participate. In the context of cryptocurrency, it means that anyone can join the network without needing approval.

PFP

Abbreviation for ‘picture for proof’ or ‘profile picture’.

Play-to-earn (Play2earn, P2E, PTE)

A game mechanic in which players are rewarded with cryptocurrency tokens or other blockchain-based items from playing. Often play-to-earn games are criticized for acting as a Ponzi.

POAP, or Proof of Attendance Protocol

POAP stands for Proof of Attendance Protocol. It is a system that uses blockchain technology to verify that someone has attended an event, such as a conference or meetup. Then, participants can receive a POAP NFT, like a badge, to show they were there.
  • Example: It’s pronounced like soap.

Polkadot

Polkadot is a next-generation platform that enables blockchains and other parachains to work together under one umbrella. It’s known as a Layer-0 blockchain, where, besides its main Polkadot relay chain, there can be multiple Polkadot parachains that link to it. Shiden, Moonbeam and Moonriver are examples of networks using the Polkadot parachain technology.

Polygon

Polygon is a popular Layer-2 protocol solving problems already inherent with the current Ethereum ecosystem. It provides higher throughput and deals with lower gas fees.

Ponzi scheme

A Ponzi scheme is a type of fraud that involves promising investors high returns in exchange for their investment. However, instead of using the invested funds to generate returns, the operator of the scheme simply uses new investment to pay off old investors. Ponzi schemes eventually collapse when there is not enough new investment to pay off the old investors.

Portfolio

A portfolio is a collection of investments, including cryptocurrencies and NFTs. Investors often track their portfolios with the DappRadar Portfolio Tracker to see how well their investments are performing.

Portfolio Tracker

DappRadar product that allows you to oversee and manage your Web3 investment portfolio.

Probably nothing

Sarcastic. Often means the opposite. It is probably something relevant or important.

Private key

A private key is a cryptographic key that is used to access a wallet. Private keys should never be shared with anyone as they can be used to steal the funds in a Web3 wallet.

Proof-of-Stake (PoS)

Proof-of-stake (PoS) is a type of consensus mechanism that some blockchains use in order to validate transactions with distributed consensus. Unlike proof-of-work (PoW), PoS users become miners and do not need mining facilities. This results in lower environmental impact, and faster and cheaper verified transactions.

Proof-of-Work (PoW)

Proof-of-work (PoW) is a type of consensus mechanism that some blockchains use in order to validate transactions with distributed consensus. PoW miners use their computational power to verify transactions and add them to the blockchain. As a reward, they receive the blockchain’s native cryptocurrency.

Protocol

Protocols are basic sets of rules that allow data to be shared between computers.

Protocol-owned liquidity (POL)

For protocol-owned liquidity, or POL, a project utilizes a bonding mechanism, selling tokens at a discount in exchange for users providing another token. As a result the protocol or project will gain ownership over a percentage of the liquidity on the market.

P/S ratio

Fully diluted market capitalization / annualized revenues.

Public key

A public key is a cryptographic key that is used to receive funds in a crypto wallet. Public keys can be shared with anyone as they cannot be used to steal funds.

Pump and dump

A pump and dump is a type of fraud that involves artificially inflating the price of an asset through false or misleading information in order to sell the asset at a higher price. Pump and dump schemes often involve small, lesser-known cryptocurrencies.

Pyramid scheme

A pyramid scheme is a type of fraud that is similar to a Ponzi scheme. Like a Ponzi scheme, pyramid schemes promise investors high returns in exchange for their investment. However, instead of using the invested funds to generate returns, the operator of the scheme simply uses new investment to pay off old investors. Pyramid schemes eventually collapse when there is not enough new investment to pay off the old investors.

Q

Quorum

A quorum is the minimum number of people required to make a decision. In DAOs (decentralized autonomous organizations,) quorums are used to prevent decisions from being made without enough people agreeing.

R

RADAR

Native token to the DappRadar ecosystem.

Rankings

DappRadar product where you can browse through top blockchain dapps, ranked by specific metrics like Unique Active Wallets (UAW), volume and more.
  • Note: spelled with a capital when referring to our product, i.e. The DappRadar Rankings offer the best rankings in the dapp industry.

Recovery phrase

A recovery phrase is a list of words that can be used to recover a cryptocurrency wallet. Recovery phrases typically consist of 12-24 words and can often be written down on a piece of paper. Similar to a private key, never share this information with others.

Rekt

Rekt (wrecked) is a slang term that is used to describe a situation where someone has lost a lot of money. The term is often used in the context of cryptocurrency trading when a trader loses all the funds invested.

Roadmap

A roadmap is a document that outlines the goals and plans for a project. Roadmaps are often used by businesses and organizations in the Web3 space to give stakeholders, the community, and the general public an idea of what to expect in the future.

Ronin

Ronin is an Ethereum sidechain and was introduced so that Sky Mavis had more control over its entire ecosystem. Sky Mavis created the Ronin network in February 2021.

Rug pull

A rug pull is a type of fraud that involves a project owner or team suddenly disappearing with all the funds that have been raised. Rug pulls often occur in the form of an Initial Coin Offering (ICO) where investors are promised a return on their investment, but the project owner abandons with the funds instead.

Rollup

Rollup is a type of blockchain technology that uses "side chains" to process transactions off-chain, a scaling system. This results in cheaper and faster transactions while still maintaining the security of the main blockchain.

S

Sales count

Total number of sales for an NFT collection/marketplace for a certain time

Sales volume

The volume measured in USD or ETH generated from NFT trading activity

The Sandbox

The Sandbox is a metaverse-enabled gaming virtual world in which users can own land to build their own games, play games using their avatar or earn in-game rewards from their activities. Assets for The Sandbox exist mainly on the Polygon blockchain.

Satoshi Nakamoto

Satoshi Nakamoto is the pseudonym used by the unknown person or persons who created Bitcoin. Satoshi Nakamoto is thought to be a man living in Japan, but there is very little evidence to support this claim.

Satoshis (sats)

Satoshis are the smaller denomination of bitcoin. There are 100 million sat in 1 BTC.

Scalability

Scalability refers to an ecosystem’s ability to support an increasing load of users and transactions.

Secondary market

On the secondary market trades happen between consumers, often peer-to-peer using a marketplace. The secondary market does not apply to cryptocurrencies, but only to collectible digital assets or NFTs.

Seed phrase

A seed phrase, also known as a recovery phrase or mnemonic phrase, is a list of words that are used to recover a cryptocurrency wallet. Seed phrases typically consist of 12-24 words and can be used to generate a private key.

Self-custody

Self-custody is the means of holding your digital assets yourself, without interference from a third-party. This means that the user manages their own private keys. A hardware wallet can make self-custody a bit easier to manage, even though one depends on technology. Self-custody is also possible with pen and paper.

Ser

Sir

SHA-256

Abbreviation for Secure Hashing Algorithm, a set of cryptographic hashing functions made by the NSA. SHA-256 generates a long sequence of letters and numbers representing a certain data set. This is called a hash.

Sharding

Sharding is a method to distribute data across multiple machines without losing on performance. This is done to spread the workload across different devices.

Shiba Inu

A cryptocurrency that launched in August 2020, named after the Shiba Inu dog breed.

Shilling (noun)

To shill means that someone promotes or advertises a crypto asset. Shilling is illegal in traditional financial markets, but happens a lot in the crypto world on for example Twitter, TikTok and Instagram.

Shitcoin

A shitcoin is a cryptocurrency that has no real use case or value. Shitcoins are often created as part of a pump and dump scheme.

Short

Shorting is a trading strategy that involves borrowing an asset, selling it, and then buying it back at a lower price in order to profit from the price difference. In the context of cryptocurrency, shorting can be done by borrowing coins through a margin lending platform and then selling the coins in the open market.

Sidechain

A sidechain is a separate blockchain that is attached to the main blockchain. Sidechains are often used to experiment with new features or to scale a blockchain by offloading some of the transactions onto the sidechain.

Slashing

Slashing is a penalty set by a blockchain protocol to make sure that nodes or validators behave well. Slashing can happen when one of two behaviors takes place: downtime or double signing. When a node or validator gets slashed, they can for example pay and automated fine. Or they could be excluded from rewards for a certain time.

Slippage

Slippage is the difference between a trade’s expected and actual price. When there’s low liquidity, the price impact of a crypto trade can be high. Therefore slippage will be high, and the trader will see their trade impacted negatively.

Smart contract

Unlike a traditional contract, a smart contract’s terms are executed as code running on a blockchain like Ethereum. Once deployed, the execution of a smart contract happens automatically. Smart contracts allow developers to build apps that take advantage of blockchain security, reliability, and accessibility while offering sophisticated peer-to-peer functionality — everything from loans and insurance to logistics and gaming.

Solana

Solana is a Layer-1 blockchain ecosystem created to be fast and efficient. Solana supports smart contracts, allowing dapps to deploy on the network. SOL is the native currency on the Solana blockchain.

Solidity

The programming language to develop smart contracts on Ethereum. Programs in Solidity run on Ethereum Virtual Machine (EVM). This means that EVM-compatible blockchains like Polygon and BNB Chain can easily adopt dapps.

Speculation

Speculation is the act of buying an asset in the hope that it will increase in value. Speculation is a risky investment strategy, as there is no guarantee that the asset will increase in value. Many people speculate on cryptocurrencies, as they can be volatile and offer the potential for high returns. However, crypto speculation can also lead to large losses.

Spot

A spot in crypto is the price of a cryptocurrency at the current moment in time. The spot price is often different than the prices quoted on exchanges, as the spot price includes the fees associated with buying or selling on an exchange.

Stablecoin

A stablecoin is a cryptocurrency that is pegged to a stable asset, such as gold or the US dollar. The purpose of a stablecoin is to provide a cryptocurrency that is less volatile than other cryptocurrencies.

Staking

A strategy to earn rewards on cryptocurrency or other assets by locking up assets.

Stickiness Rate

How many monthly users are daily users? Daily UAW / Monthly UAW

Swapping

Swapping is the process of exchanging one cryptocurrency for another. Swaps can be done through a centralized exchange or through a decentralized exchange.

T

Technical analysis (TA)