| Term | Definition | Learn more |
|---|---|---|
A meme created by OlympusDAO that represents game theory: the outcome for each participant depends on the actions of all. | [VIDEO] Olympus | (3,3) explained | |
The concept of a blockchain had been in the works since 1979, but Bitcoin was the 1st blockchain built. Its only purpose is to create and move bitcoins. Bitcoin has high energy consumption because of its proof-of-work mining process. | ||
A chronological collection of digital records (aka a distributed ledger), with each block referring to the block before it. Blocks can not be rewritten, instead, a new block is added to the chain that details the changes. | ||
Facilitates cross-network transactions; can reduce transaction fees but they are generally operated by a centralized authority (rather than code) so can be slow and have security concerns. | What Are Blockchain Bridges?; Blockchain bridge Wormhole confirms that exploiter stole $320 million worth of cypto assets | |
Selling assets to a treasury, and receiving that treasury’s asset at a discounted rate at a later time. Used by OlympusDAO to expand its treasury and stabilize its floating market price. | [VIDEO] What is OlympusDAO? Staking, Bonding, and the $OHM Token Explained | |
Permanently removing tokens/coins from circulation. | ||
Built by Toucan Protocol to connect the voluntary carbon market to Web3; creates tokens that represent carbon credits. | ||
Layer 2 Scaling Solutions that allows you to lock up funds and use a virtual representation of those funds—similar to the way a credit card represents actual money; only used for transactions not smart contracts or applications; allows people to void high transaction fees. | ||
Uses its own blockchain to keep track of data; validates its own transactions. A coin is always a token, but a token is not always a coin. | ||
Connecting blockchain networks; dApps can be cloned and integrated into other dApps are composable. | ||
Virtual currencies, built on a blockchain. | ||
An organization that operates independently of human intervention, including its original creators. Run by code written on interconnected and open Ethereum smart contracts. | What is a DAO? (Decentralized Autonomous Organization Examples) | |
Autonomous applications that run on the blockchain, usually via smart contracts. | [VIDEO] What are dApps? (12 Decentralized Application Examples) | |
Allowing people to interact one on one with assets, without the need for an intermediary. | [VIDEO] The case for a decentralized internet | Tamas Kocsis | |
Pieces of code that replace banks. Based on cryptography, blockchain, and smart contracts. Allows people to use the value of their tokens, without losing their tokens. Tokens are deposited into a smart contract in exchange for a representation of the original tokens + interest, and borrowers put up collateral (+ extra) that can be used to repay the owner if they default. | ||
Using new technology (like web3 and DAOs) to create and fund a more transparent research ecosystem without the bottlenecks of traditional academic institutions. | Twitter thread by Cyrus Clarke on DeSci: Decentralized Science on GitHub | |
All transactions are synchronized across a network of independent computers with no central entity; blockchain and hashgraph are two types of DLTs | ||
Added smart contracts to the blockchain, making it possible to run programs. Ethereum was proof-of-work but has now transitioned over to proof-of-stake, reducing the computational demands of mining on the blockchain. | Ethereum Explained; The great renaming: what happened to Eth2? | |
A smart contract that allows you to borrow money if you can instantly pay it back. | [VIDEO] What are Flash Loans? | |
Fees charged by the developers running the computers that power Ethereum. | ||
The first block in a chain; aka Block 0. | ||
A digital fingerprint that identifies a block in the blockchain, each block also contains the hash of the previous block (creating the chain). | ||
A proof-of-stake alternative to blockchain; the “gossip about gossip” protocol (rather than mining) means it grows exponentially and is faster/less energy-intensive than blockchain. | Hashgraph is patented, and the only hashgraph is Hedera; [VIDEO] How does gossip about gossip work? | |
All investors have a say in changes to the DAO as anyone who owns the digital asset (or token) has a vote, and all votes are public. | ||
Major blockchains can only do 7—15 transactions/second, so these methods scale blockchains without compromising security and safety; they do not affect the major network, but use outside tools that allow the blockchain to scale through it. | [VIDEO] Layer 2 Scaling Solutions Explained (Rollups, Plasma, Sidechains, Channels ANIMATED); | |
Created via a smart contract, liquidity refers to a pool of cryptocurrency funds that enables instant buying and selling. A new token is pooled 50:50 with an established currency. | [VIDEO] What is a Liquidity Pool in Crypto?; Why Locking Liquidity is Important for Cryptocurrency | |
AKA Lock-up Period. When staking, collateral can be locked up for 1-12 months, depending on the network. | What Is A Lock-Up Period and How Does it Help the Token Prices? | |
Mining on two different blockchains at the same time; the two chains must have the same consensus protocol (POW or POS) and hash function. | ||
A Javascript library built to simplify the process of building a DeFi project. | Money Legos And Composability As DeFi Building Blocks; Building with Money Legos | |
Based on Ethereum, but designed to be a user-first blockchain. Was declared ‘carbon neutral’ by SouthPole in 2021 (makes use of offsets). | [VIDEO] What is NEAR Protocol?; NEAR Protocol Awarded the Climate Neutral Product Label | |
Tokens that represent ownership of digital items. The asset itself is not stored in the token, only ownership information and any unique properties associated with the asset. Creators retain copyright and reproduction rights. | ||
Individual computers that keep a full record of the entire blockchain. | ||
Tools that send real-world data (like weather measurements) to smart contracts. | ||
Aka parallelized chain; blockchains that work in parallel, within Polkadot. | ||
A proof-of-stake blockchain that connects blockchains to each other through parachains. | ||
A sidechain that was created to scale Ethereum and provide lower transaction fees. Users can build Ethereum applications on Polygon and not take up network space on Ethereum. | ||
A mechanism for integrating timestamps into blocks. In other blockchains, the nodes have to constantly check back and forth to agree on a time, but POH allows blocks to be continuously created and then sorted by timestamp, allowing the network to grow faster. | [VIDEO] Proof of History Explainer | |
Created to solve the energy demands of proof-of-work. One miner is selected at a time to validate the new block, but that miner must put up collateral (some of that coin) first. If they solve it correctly, they get the reward. If they solve it incorrectly, they lose some of their collateral. | ||
When a new block is created, it is shared to all points on the network and will only be added to the chain once a complex mathematical problem is solved and the block is verified by a consensus. This is the process that is largely responsible for the high energy consumption of blockchain. | Proof of work is at the core of the system that manages Bitcoin transactions and secures the network | |
Collective decision-making process common to DAOs; a voter uses their tokens to vote on a topic, more tokens = more votes. | ||
Using money as a tool to solve systemic problems (racism, environmental degradation, climate change). | A ReFi Twitter thread from Cody Simms; ReFi DAO’s list of climate action in web3 | |
A Layer 2 Scaling Solution; essentially ‘rolling up’ a bunch of transactions into a single transaction | ||
When developers run away with the valuable token from their liquidity pool, essentially rendering the new token worthless. | [VIDEO] What is a Rug Pull in Crypto? (Meaning + 3 Examples) | |
A Layer 2 Scaling Solution; splitting the blockchain into many pieces so more transactions can be processed and less data needs to be stored per node. | ||
Secondary blockchains that run in parallel to the parent blockchain to help process some of the data; trading off security for speed; ex: Polygon | ||
Computer programs stored inside a blockchain that deploy when a condition is met; a smart contract cannot be changed once it is created. ("if this, then that") | ||
A cryptocurrency that doesn’t change price. It is linked (pegged) 1:1 to something external of value, like TETHER and the US$. | ||
Locking cryptocurrencies up for a specific period of time, in exchange for rewards. In proof-of-stake, the likelihood a specific validator will be chosen depends on how much they have staked. | ||
A blockchain is based on a balance between three key elements: security, decentralization, and scalability. If you try to increase one, it will always be at the expense of the other two. | ||
The first DAO. Created in 2016 to help investors gain exposure to Ethereum, it was hacked, and 3.6 million ETH was stolen ($50 million at the time). This led to the hard fork of Ethereum. | ||
Digital assets that use an existing blockchain (and pay a fee to that blockchain) to operate and verify transactions; tokens enable interaction with decentralized applications. Also allows one coin to be represented on another coin’s blockchain network. | ||
A decentralized exchange platform that allows people to swap one token for another through liquidity pools. It also has its own tokens. | ||
According to Cody Simms: "The wallet is the core concept of Web3. You use it to sign into web3 applications (websites) & to transact. It's your identity + your footprint + debit card." | ||
The concept that individual users will own and control their own digital content rather than monopolistic tech companies. | ||
Similar to collateral. Allows one network to interact with another. | ||
Staking your currency and allowing the platform to lend it out to borrowers in exchange for rewards. There is a risk of losing the coins/tokens that have been staked. | Yield farming: An investing strategy involving staking or lending crypto assets to generate returns |
Crypto glossary
When we began looking into the intersection of crypto and climate, we quickly realized there is an entirely new vocabulary we had to learn. The goal of this Crypto Glossary is to break things down into the most simple explanations possible, but there are links provided if you want to learn more.
If you think of a term or concept we missed, please reach out and help us grow this glossary.
Last updated: Mar 2022