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Explore approved Crypto definitions, everyday examples and related lessons.
Showing 11 of 11 matching terms
In Bitcoin proof of work, the threshold the block header hash must be less than or equal to. A lower target makes a qualifying hash less likely per attempt.
Example: A simplified number game accepts results of 10 or less. Reducing the threshold to 5 makes a qualifying result less likely. Bitcoin uses a much larger numerical threshold.
An Ethereum smart contract investment project launched in 2016. Its June 2016 exploit prompted a disputed July hard fork; the chains continued as Ethereum and Ethereum Classic.
Example: A jointly funded project had a software flaw; participants disagreed on how to respond. The DAO episode shows that code risk and governance decisions can affect each other.
A digital asset issued using an existing blockchain. Many tokens use smart contracts to maintain balances and transfer rules, but technical designs, permissions and holder rights vary.
Example: A voucher uses an existing shop system rather than being the shop's national currency. Many blockchain tokens similarly use an existing network, but their rights and technical designs differ.
Permission allowing a specified spender to transfer a defined token amount from an account, under the token rules. An allowance may be created by an on chain approval or a supported permit signature.
Example: A written collection authorisation names the person and quantity they may collect. Review a token permission with the same attention to scope.
Keep in mind: Connecting a wallet is different from granting spending allowance.
An event or schedule that removes restrictions on allocated tokens, making specified units available under the project terms. Availability is different from an actual sale.
Example: A locked allocation becomes transferable on its written date. The holder may keep it, move it or sell it.
Keep in mind: Check the units, recipients and practical transfer restrictions rather than treating every unlock as an immediate sale.
All tokens created so far, minus any that have been verifiably burned. It includes tokens that are still locked.
Example: A project has created 1,000 units and verifiably burned 100. Under that stated measure, total supply is 900, including units still locked or not publicly circulating.
A measure of the market value of assets counted as committed to a DeFi protocol under a stated data provider’s method at a particular time. Eligible assets, valuation and treatment of nested positions can differ between methods.
Example: A pool holds ten units priced at USD 5, giving USD 50 under that valuation rule. If the price doubles, measured TVL can rise without any new units being deposited.
Keep in mind: Prices, eligible assets and counting rules affect this figure. Nested positions can create double counting across services.
Buying and selling, or opening and closing market positions, to benefit from price changes. Holding periods vary. Costs, execution and losses matter even when the activity follows a written plan.
Example: A learner records an intended entry, exit and costs in a practice trade. The holding period alone does not determine whether the plan is sensible or whether it will make money.
In the Bitcoin context, a transaction spends earlier outputs and creates new outputs with specified spending conditions. These may require a signature, several signatures or other conditions. Other blockchains use different transaction models.
Example: In a Bitcoin example, one input supports a payment output and a change output. The difference between total inputs and outputs pays the fee; the wallet chooses the spending conditions.
A FATF standard concerning collection and secure transmission of originator and beneficiary information for relevant transfers involving regulated providers. National implementation and applicable requirements vary.
Example: A provider may ask who is sending and receiving a transfer. Which information is required depends on its applicable rules; a transfer between personal wallets is not automatically treated like every provider transfer.
An organisation, such as a bank or payment company, that both sides of a payment rely on to keep the record and settle disputes.
Example: Two buyers trust an escrow company to release payment when conditions are met. Its service can help coordination while also creating a dependency on that company.