Cryptocurrency and Blockchain Dictionary

A complete list of crypto definitions

Cryptocurrency and blockchain glossary

Commonly used terms in the world of blockchain and cryptocurrency

Terms commonly used in the world of blockchain and cryptocurrency

Altcoin

An altcoin is any cryptocurrency or token created after the Bitcoin was developed.

Other Important Terms

Tokens

These are assets on the blockchain. Tokens can have a wider functionality than being a means of payment like a coin. However, you’ll hear people use these terms interchangeably.

Liquidity

Liquidity is the availability of liquid assets. It is mega-important for DeFi protocols since fees, slippage, and overall UX improves with greater liquidity. 

Collateralization Ratio

To borrow tokens from a DeFi lending protocol, one must put up more collateral than the loan is worth. Typically this amount runs between 125% to 150% of the loan amount. However, protocols can use different collateralization ratios. Users must maintain the designated ratio to prevent liquidation.

Governance Tokens

ERC-20 tokens have always been a form of money, but governance tokens also act like legislative certificates. They allow the hodler to vote on changes to the protocol. 

ERC-20

This is the technical standard used for smart contracts on the Ethereum blockchain. ERC-20 defines the list of rules that Ethereum tokens must abide by.


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