Our Crypto Lingo features a wide range of terms related to the world of the metaverse, NFT, cryptocurrency, blockchain, decentralization, and much more, as well as references to blog posts, ebooks and other resources related to these terms.
We plan to add new terms and related articles regularly to help you understand the latest trends and concepts in the metaverse.
Have any questions? Want to know more about metaverse gifting? Feel free to contact us at [email protected].
An atomic swap refers to an exchange of cryptocurrencies from separate blockchains. The swap is conducted between two individuals without the involvement of a third party. The concept, referred to as decentralization, is to remove third-party intermediaries like regulated exchanges and give token owners validation powers.
Axie Infinity is an Ethereum-based game similar to the Pokemon game series, with an added blockchain twist. Axie Infinity which has 2.8 million unique players every day. In the game, players breed and collect NFT-based digital pets called Axies in order to battle other players. Each Axies possesses a specific genetic imprint. Thus, the weaknesses and strengths of Axies are passed down to their offspring. The digital pets are tradeable on Ethereum NFT marketplaces, and their prices depend on their rareness and unique traits.
Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without a third party like a bank. In 2009, Bitcoin’s creator, Satoshi Nakamoto, spoke of the need for “an electronic payment system based on cryptographic proof instead of trust.”
As of March 2022, 18,999,775 BTC are in circulation, meaning that 2,000,225 BTC are left to mine, constituting some 10.7% of the total bitcoin supply.
Bitcoin is built on a distributed digital record called a blockchain, which is a linked body of data, made up of units called blocks containing information about each transaction. This includes date and time, total value, buyer and seller, and a unique identifying code for every exchange. Entries are strung together in chronological order, creating a digital chain of blocks.
Bored Ape Yacht Club (BAYC)
A leading NFT collection is Bored Ape Yacht Club (BAYC), which includes 10,000 cartoon figures of apes on the Ethereum blockchain. The prices of Bored Apes have been exceedingly high. On January 30, 2022, Bored Ape #232 was sold for 1080.69 ETH ($2.85 million).
In April 2022, Bored Apes had a floor price of over 113 ether, or $351,868. Open Sea states that by that date, 496,700 ether, or $15,466,641,960, of volume for BAYC had been traded.
Today, the cheapest BAYC is over $350,000. Various celebrities purchased Bored Apes in late 2021 and early 2022 including Eminem, Gwyneth Paltrow, Shaquille O’Neal, Snoop Dogg, Mark Cuban, Post Malone, Stephen Curry, Paris Hilton, Jimmy Fallon, and Serena Williams.
Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson. It is one of the biggest cryptocurrencies by market cap. Cardano is a decentralized proof-of-stake (PoS) blockchain which is designed to serve as a more efficient alternative to existing proof-of-work (PoW) networks. The Cardono system is dedicated to scalability, interoperability, sustainability, efficient energy use, and quicker transaction times.
Cardano’s token Ada is used in the blockchain’s PoS consensus mechanism. Ada is awarded for work performed for the blockchain by users participating in a stake pool.
ADA can be used to store value, to send and receive payments, and for staking and paying transaction fees on the Cardano network.
A cold wallet, which is also called a “hardware wallet” and “offline wallet,” stores the user’s address and private key offline and works in conjunction with compatible software in the computer. This software generates a unique key that accesses the wallet. This prevents hackers from accessing users’ funds because they are stored in the hardware device.
Cryptocurrency, (also called crypto), refers to any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies are not subject to a central issuing or regulating authority. A decentralized system such as blockchain technology is used to record transactions and issue new units.
Bitcoin, which was issued in 2009, is considered the first cryptocurrency. It was founded by a programmer (or, possibly, a group of programmers) under the pseudonym Satoshi Nakamoto.
As of March 2022, there are 18,465 cryptocurrencies in total. However, not all cryptocurrencies are active. If you discount “dead” cryptos, there are around 10,363 active cryptocurrencies today.
CryptoPunks is an NFT (non-fungible token) collection based on the Ethereum blockchain. CryptoPunks are 10,000 uniquely generated graphic images. No two are alike, and each one of them can be owned by a single entity on the Ethereum blockchain. To start with, they could be claimed for free by anybody with an Ethereum wallet, but all of the original 10,000 figures were quickly snatched up. Now they must be purchased from an owner via the marketplace embedded in the blockchain.
The project was launched in June 2017 by the Larva Labs studio.It was inspired by the London punk scenes and electronic music artists Daft Punk. This crypto art blockchain project facilitated the ERC-721 standard for NFTs and the modern crypto art movement.
DAO (Decentralized Autonomous Organization)
DAO is an organizational structure which enables token holders to take part in the management and decision-making of an entity. Rather than having a central authority, power is distributed among the token holders who collectively cast votes and determinate order.
Decentraland is a 3D virtual world platform. Users may buy virtual plots of land in the platform as NFTs using the MANA cryptocurrency, which is employed in the Ethereum blockchain. It was launched in February 2020 and is overseen by the nonprofit Decentraland Foundation.
Decentralized ecommerce (DeCo) enables users to process transactions without any centralized control (including banks, regulators and other third parties), which charge high fees and have the power to block transactions. This system is based on blockchain technology and smart contracts.
A decentralized marketplace matches buyers and sellers of goods and services without the involvement of middlemen. Most of the important functionality, such as executing trades and releasing funds, are controlled by a smart contract or program rather than an external entity. Decentralized ecommerce is more efficient and less expensive than centralized ecommerce, and it also offers a level of security and transparency which is lacking in the latter.
DeFi (Decentralized Finance)
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies. This system’s aim is to build a new, internet-native financial system, using blockchains to replace traditional intermediaries and trust mechanisms.The elimination of third-party involvement significantly reduces fees and boosts transparency.
Since DeFi first emerged in 2020, the majority of DeFi projects have been built on the Ethereum blockchain. Crypto-assets offer the same products as traditional banks do, but in a decentralized form. This includes lending, borrowing, spot trading, and margin trading. With DeFi loans, any person can easily take out a loan without having to disclose their identity to a third party or go through regular banking checks.
Launched in 2013, Dogecoin is considered to be the first “meme” coin. There is no limit on the number of Dogecoins that can be created, leaving the currency susceptible to devaluation as supply increases. Dogecoin’s price in 2017 stood at $0.0002. By July 2022, its price rose to $0.065, an increase of almost 32,400%.
Encryption refers to the process of encoding information. Encryption converts plaintext into an alternative format called ciphertext. It strengthens the security of a message by scrambling the content. Encryption is highly effective in hiding communication through encoded data, and only the sender and the recipient possess the key to decipher it. Encryption is used to secure blockchain transactions.
Ethereum is a decentralized, open-source blockchain that establishes a peer-to-peer network which securely executes and verifies application code called smart contracts. It is a robust ledger technology that companies are using to build new programs.
Ether (ETH) is the native cryptocurrency of the Ethereum platform. Miners produce Ether tokens that can be used as a currency and to pay for usage fees on the Ethereum network. Ether is second only to Bitcoin in market capitalization.
Fiat money is a government-issued currency. The use of fiat currency allows central banks greater control over the economy because they can decide how much money is printed at any time. Most modern paper currencies, such as the U.S. dollar and the Euro, are fiat currencies. Governments have the power to stabilize their currencies in contrast to cryptocurrencies that are not pegged to any coin.
In contrast, cryptocurrencies are based on decentralized blockchain technology, which eliminates the need for third parties such as banks and other financial service providers. The use of a decentralized technology contributes to lower fees, increased security and greater transparency.
Cryptocurrency futures are contracts between two investors that bet on a cryptocurrency’s future price. These are legally-binding agreements to trade an asset at a previously agreed upon date and price at a later date.
NFTs can fit into online games in various ways. The first play-to-earn gaming models were not something that game designers invented, but evolved out of the needs of large online game communities where some game players were willing to pay others to do the hard work for them in exchange for cash. In this model, players can offer to pay real-world money in exchange for in-game items or in-game currency.
In various games, such as Decentraland, the Worldwide Webb and Treeverse, virtual real estate is offered for purchase. Another use for NFTs in virtual games is collecting and selling accessories and items of clothing for avatars. These items may include sunglasses, shoes, watches, dresses, or bags that people can use to dress up their 3D avatars in the virtual world.
A gas fee refers to the amount of Ether (ETH) required for an Ethereum blockchain network user to conduct a transaction on the network. As a rule of thumb, the higher the gas, the more expensive the transaction.
How are Ethereum gas fees calculated? Gas fee calculation is based on the concept of gwei. Gwei is a very small denomination of Ether (1 gwei = 0.000000001 ETH) which is used to measure the cost of gas. To exemplify, a gas fee of 30 gwei is equivalent to 0.000000030 ETH.
Giftoins are virtual assets such as crypto coins, artwork, music, sports collectibles and much more, which individuals can present as a gift to a loved one or friend. Each Giftoin is a tokenized, one-of-a-kind creation, which cannot be replicated. As Giftoins are virtual items, they are both exclusive and timeless. Giftoins may potentially rise in value, and gift recipients can monitor their asset’s worth regularly through the Giftoin dashboard.
The advanced Giftoin platform enables NFT Creators to smoothly mint and sell new NFTs, and also provides online resellers with easy tools to sell a variety of NFTs on their websites.
A cryptographic hash function is an algorithm that processes an arbitrary amount of data input in order to issue a fixed-size output of enciphered text called a hash value, or “hash.” The enciphered text, which can be stored instead of the password, can later be used to verify the user.
Bitcoin, the largest cryptocurrency, uses the SHA-256 cryptographic hash function in its algorithm. IOTA, a platform for the Internet of Things, has its own cryptographic hash function, called Curl.
Hedera (HBAR) is a cryptocurrency that runs on a blockchain known as a Hashgraph. This Hashgraph enables cryptocurrencies, smart contracts, and distributed apps (DApps). Hedera, which is owned and backed by several large global corporations, uses a unique version of the proof-of-stake consensus algorithm to facilitate transaction times, reduce fees, and lower energy use vis-a-vis other cryptocurrencies.
A hot wallet is a cryptocurrency wallet that is constantly connected to the Internet and a cryptocurrency network. It is used to send and receive cryptocurrency. The wallet enables the user to view how many tokens are available for use.
The hot wallet facilitates and lists changes to the transaction record kept on the decentralized blockchain ledger for whichever cryptocurrency that is in use. Due to the fact that hot wallets are connected to the Internet, they tend to be more vulnerable to hacks and theft.
Immutable X NFT
Immutable X (IMX) is an Ethereum token that powers Immutable X, which is a scaling solution for NFTs..It offers instant trade confirmation and very low gas fees for minting and trading NFTs. Artists/musicians can easily create and trade NFTs while ensuring the security of their assets.
Initial Coin Offering (ICO)
An Initial Coin Offering (ICO) can be used by any cryptocurrency or blockchain company interested in raising funds to create an app, service or new coin. Through ICO trading platforms, investors receive unique cryptocurrency “tokens”as a reward for their monetary investment in the business.
Initial Game Offering (IGO)
An Initial Game Offering (IGO) is a fundraising event for blockchain gaming projects. The event is launched through launchpad platforms. By buying an IGO, the investor gains the opportunity to secure in-game assets and tokens before they are made available to the public. In some circumstances, tokens and NFTs acquired from IGOs can be traded outside of the gaming ecosystem on decentralized exchanges and NFT marketplaces.
The crypto J-curve models how the market values a cryptocurrency over time. The J-curve helps investors to gauge the mood of the market. In crypto, most often, a J-curve normally starts when a project launches. At this point, interest is great, which facilitates the first spike in price. However, as the cryptoasset progresses over time, the developer team and cryptonetwork usually encounter unexpected roadblocks. These obstacles cause market enthusiasm to wane, weighing on the DEUV.
Founded in 2011, Kraken is a US–based cryptocurrency exchange and bank, In the summer of 2022, it was valued at about $10 billion. The exchange enables trading between cryptocurrency and fiat currencies, and issues price information to the Bloomberg Terminal.
Kraken is the world’s fourth-largest cryptocurrency exchange after Binance, Coinbase and Huobi Global. It offers more than 50 tokens and seven fiat currencies.
Larva Labs is the developer of the CryptoPunks NFT project. In 2017, CryptoPunks were originally given away for free. Since then things have changed radically – some CryptoPunks have recently sold for millions of dollars. Larva Labs has produced additional digital art projects such as Autoglyphs, as well as other Ethereum blockchain-based app development projects. CryptoPunks NFTs are currently sold out, but they can be bid on and bought from third-party marketplaces.
An NFT launchpad is a platform where creators, artists, and organizations can presale, mint, or release projects. Using launchpads, creators can raise funds to construct and launch projects, or engage in marketing of their projects. Launchpads also help creators to introduce their products to audiences.
NFT land is a plot of digital space that can be purchased in a virtual project or game. A metaverse project divides its map into smaller areas and sells them in one or multiple land offerings. The NFT landowner can use metaverse real estate to host online experiences, display content, or gain benefits in a game. The most popular NFT land projects include Decentraland, The Sandbox and Axie Infinity. Leading brands and celebrities, such as Adidas and Snoop Dogg, have started investing in and using NFT land.
A cryptocurrency public ledger is a decentralized record-keeping system. The ledger anonymously preserves the participants’ identities, as well as their respective cryptocurrency balances, and a record of all transactions executed between network participants. The system is based on blockchain, a secure Digital Ledger Technology (DLT) which can be used in a business network.
An NFT marketplace is a unique platform where NFT trading takes place. These marketplaces serve different purposes for various parties but they share the same structure. Artists can generate an NFT token through minting (which requires a crypto wallet crypto like Metamask), while buyers and collectors can view a whole gallery of NFT creations and buy them. Leading NFT marketplaces include OpenSea, Axie Marketplace, Larva Labs/CryptoPunks and NBA Top Shot Marketplace.
MetaMask is a free crypto wallet that enables users to store, swap and transact with cryptocurrencies, interact with the Ethereum blockchain ecosystem, and save decentralized applications (dApps). When connecting through MetaMask to Ethereum-based dapps, users can spend crypto coins in games, stake tokens, and trade them on decentralized exchanges. Metamask also provides users with access to DeFi apps.
Micro Bitcoin futures (MBT) is a decentralized P2P payment protocol for the micro-economy. It is hard forked from Bitcoin on 525 000-th block number.a USD cash-settled contract which is based on the CME CF Bitcoin Reference Rate (BRR). Its value is 1/10 the size of one Bitcoin.
Crypto mining refers to the process by which networks of specialized computers generate and release new crypto coins and verify new transactions. Mining is the process used by several cryptocurrencies to generate new coins and verify new transactions. The process involves decentralized networks of computers worldwide that verify and secure blockchains. As a reward for contributing their processing power, computers on the network are allocated new coins. To illustrate, a miner currently earns 6.25 Bitcoin ($250,000 as of April 2022) for successfully validating a new block on the Bitcoin blockchain.
Nano is software designed to encourage fee-free cryptocurrency transactions.
In the Nano format, each account has its own blockchain that can be updated only by the owner. When performing a transaction, an account owner signs a transaction that updates their own ledger, after which it is broadcasted out to the Nano network. Once Nano nodes observe enough confirmations to validate the transaction, it is deemed irreversible, and their copy of the ledger is updated. Nano’s design is different from other cryptocurrencies, as its blockchain does not keep a full record of its transactions.
NBA Top Shot
Among the best selling NFT collections is NBA Top Shot. This NFT collection enables basketball fans to purchase unique collectibles to celebrate their passion for the game. NBA Top Shot offers NBA Moments in the form of memorable clips. NBA Moments are a collection of authenticated NBA highlight clips, which can be used as trading cards.
NFT (Non-fungible Token)
NFTs (non-fungible tokens) are tokenized digital files with rights of ownership. These digital assets may take the form of a video clip, gaming accessories, sports cards, artwork, music and even gaming real estate. When purchasing an NFT, the buyer’s right of ownership is registered on blockchain. No one can modify the record of ownership or replicate an authenticated NFT.
Some NFTs, such as images from the Bored Ape Yacht Club, have sold for over a million dollars. Justin Bieber paid $1.29 million for a Bored Ape Yacht Club NFT. Jimmy Fallon, Paris Hilton and Eminem are other Bored Ape Yacht NFT holders.
As of June 30, 2022, the market cap of Art Blocks NFT projects available on the Ethereum blockchain and listed on OpenSea was worth roughly $840 million.
In the world of crypto, a node is a computer that connects to a cryptocurrency network. The node supports the network through validation and relaying transactions. It also receives a copy of the full blockchain Nodes check and verify each other through a consensus mechanism without relying on a central system. For this reason, any individual can set up a node by downloading the blockchain’s software onto their personal computer. On blockchain networks there are two kinds of nodes: For example, on Bitcoin, Full Nodes fully enforce all the Bitcoin rules while Lightweight Nodes facilitate ease of use.
In contrast to off-ledger currency, On-Ledger Currency is a cryptocurrency that is minted on a blockchain. This concept is the basis of all cryptocurrencies, which utilize a single distributed ledger shared among all participants.
OTC Trading (Crypto)
Over-The-Counter Trading or OTC Trading is a framework of financial technology that enables trading markets outside a regular exchange. This activity occurs particularly in cryptocurrency markets. Crypto OTC trading refers to the trading of crypto assets directly between two parties in a closed market. The parties involved have a private price they share with each other and can negotiate deals based on the amount each party is interested in buying.
Peer-to-Peer (P2P) Crypto Trading
Peer-to-peer (P2P) crypto trading refers to decentralized exchange markets that permit users to buy and sell cryptocurrencies directly to one another, without dependency on third parties. This system enables traders to choose the best rate and most suitable payment method at lower cost.
Polygon is a “layer two” scaling solution that runs alongside the Ethereum blockchain. It enables faster transactions and low fees. Polygon’s native currency is MATIC, which is used to fund fees, staking, and other purposes. The system enables developers to build secure, scalable user-friendly dApps with minimal transaction fees.
Proof-of-stake refers to a cryptocurrency consensus mechanism used to process transactions and generate new blocks in a blockchain. Using POS, cryptocurrency owners validate block transactions based on the number of coins a validator stakes. POS is regarded as more secure than POW (see next entry) when it comes to the potential for an attack on the network as its compensation structure renders an attack less advantageous.
Proof-of-work (POW), refers to the original consensus mechanism used to validate a blockchain and add new blocks. PoW mechanisms obligate miners to resolve cryptographic puzzles, whereas PoS mechanisms require validators to simply hold and stake tokens.
In trading, the quote is the price at which an asset was last traded, or the price at which it can currently be bought or sold.
Rarible is a community-owned NFT marketplace, whose “owners” hold the ERC-20 RARI token. Rarible awards the RARI token to users on the platform, who buy or sell on the NFT marketplace. 75,000 RARI are distributed every week. Rarible buys and sells NFTs in categories like art, games, music, memes, and more.
Royal Q Crypto
The Royal Q trading bot is a computer program based on a set of cryptocurrency trading signals that helps to decide whether to buy or sell a crypto pair at a specific time. Launched in 2017, the AI software was originally limited to Asia and only traders in countries like China and India were allowed to use it. However, the trading bot app spread worldwide in 2021.
Sandbox software is the third-largest virtual metaverse based on the Ethereum blockchain. In the Sandbox game, players can buy digital plots of land, called LAND, and create experiences on them which they share with other users.
Owners can build, sell, and monetize real estate assets and gaming experiences. Users are able to play and build properties and in-game assets in the decentralized virtual gaming world.
Solana is the fastest blockchain in the world with a growing ecosystem in crypto and thousands of projects spanning DeFi, NFTs, Web3 and more. The Solana network can theoretically process over 710,000 transactions per second (TPS) without any scaling solutions needed. Launched in March 2020, SOL has become a leading cryptocurrency by means of total market capitalization.
Stablecoins are cryptocurrencies that peg their market value to an external reference. Stablecoins are considered to be more stable than most cryptocurrencies as a medium of exchange. They may be pegged to a currency like the US dollar or a commodity such as gold. Centralized stablecoins, such as USDT (Tether) and USDC, make money through lending and investing using methods similar to traditional banking.
Tether (USDT) is a popular stablecoin that crypto investors use to leverage their cryptocurrency trades. USDT is pegged to the US dollar, which means that it should be unaffected by cryptocurrency market volatility. As of May 2022, Tether was the third-largest cryptocurrency after Bitcoin and Ethereum, and the largest stablecoin with a market capitalization of nearly $83 billion.
A token sale is a form of Initial Coin Offering (ICO). A company may launch an ICO to raise money to create a new coin, app, or service. Tokens are exchanged for a certain amount of an existing medium of exchange, such as Bitcoin or Ether, at a fixed or tiered exchange rate.
Trading Platform (Crypto)
A trading platform or crypto exchange is a marketplace where people can buy and sell cryptocurrencies like Bitcoin and Ether. Coinbase is the most popular and one of the best cryptocurrency exchanges because investments can be made directly with USD. Some crypto exchanges are centralized, meaning they are managed by a single corporate authority. Others are decentralized,which means they generally distribute verification powers to individuals willing to join a network and certify transactions, much like cryptocurrency blockchains.
A threshold cryptosystem is a system that protects information by encrypting it and distributing it among a cluster of fault-tolerant computers..A public key is used to encrypt the message, while the corresponding private key is shared among the participating individuals. Within this system, the only way to decrypt an encrypted message or to sign a message, is for several parties (exceeding the threshold number) to cooperate in the decryption or signature protocol.
The unbanked phenomenon is connected to individuals who do not use mainstream financial services, such as checking or savings accounts, and primarily conduct transactions in cash because they do not have a bank account. Cryptocurrencies and decentralized offerings can serve as a viable alternative for traditional banking because they are not dependent on intermediaries.
Built in 2018, Uniswap (UNI) is a leading decentralized crypto exchange that runs on the Ethereum blockchain. Uniswap uses smart contracts to function as an automated market maker.The system is completely open source, so anyone can copy the code to create their own decentralized exchanges. Users are permitted to list tokens on the exchange for free.
An unspent transaction output (UTXO) refers to the amount of digital currency that remains after a cryptocurrency transaction. The advantage of UTXOs is that each UTXO can be traced back to the point where the actual Bitcoin was created.
A blockchain validator verifies transactions on a blockchain. Upon verification, transactions are added to the distributed ledger. In proof of work (PoW) systems such as Bitcoin, validators (also known as miners), solve complex computational math problems to be allowed to verify transactions and receive rewards for their work.
Vaporware refers to a blockchain or software project that is at the conceptual stage and lacks a working product. A project considered vaporware is not necessarily canceled. It may still be in the construction stages and it is not yet available for public release. At times companies announce blockchain projects months and even years in advance of release.
VeChain is a cryptocurrency and smart contracts platform that relates to supply chain management. The system enables manufacturers to attach sensors, such as RFID tags, to their inventory that record data onto the VeChain blockchain. The VeChain platform claims that it provides a holistic view of crucial data related to a product and its business processes, including storage, transportation, and supply.
There are various types of wallets: A digital wallet takes the form of an electronic device, online service, or software program that enables an individual to conduct electronic transactions with another party, and barter digital currency units for wares and services. Crypto wallets enable users to store cryptocurrency passwords in a central and secure location. Crypto wallets do not actually hold the currencies, but rather provide the wallet owner with tools to access and use them. Hot wallets are wallets that are permanently connected online, while cold wallets are kept offline.
Wash trade refers to illegal market manipulation in which investors initiate artificial activity in the marketplace by simultaneously selling and buying the same cryptocurrencies. In some cases, wash trades are performed by a trader and a broker who are in collusion. In other cases, investors act as both the buyer and the seller of the security.
Wei is the smallest denomination of ether, the cryptocurrency coin used on the Ethereum network. One ether = 1,000,000,000,000,000,000 wei (1018).
The term crypto whale refers to individuals or entities that hold large amounts of cryptocurrency. Whales hold enough cryptocurrency to enable them to potentially manipulate currency valuations.
WNFT is an abbreviation for Wrapped NFT. It is an ERC721-compliant contract deployed by StarBlock DAO on Ethereum. WNFT is an NFT that is completely owned by the community.
XRP refers to a native cryptocurrency for products developed by Ripple Labs. Its products are used for payment settlement, asset exchange, and remittance systems that function similarly to SWIFT. The XRP Ledger permits only select network participants to validate transactions and secure the network. There are over 150 of these participants in the network, who are known as the Unique Node List.
Y Coin is a transfer and payment cryptocurrency which employs democratic governance. Its aim is to correct the current situation whereby the biggest coin holders have greater voting power due to the size of their stake in the coin.
A yield curve is a system used to measure investors’ feelings regarding risk. This factor can impact significantly on the returns received on investments.
Launched in 2016, ZCash was initiated by a team of scientists that aspired to create a cryptocurrency similar to Bitcoin which would offer additional features. In a joint effort, they developed a fork of the Bitcoin blockchain, featuring greater user security and anonymity. The currency started out with the name Zerocoin, which was later changed to Zerocash and was finally renamed ZCash.
This term refers to transactions that have been broadcast but have not yet been included in the blockchain. To illustrate, transactions processed on Layer 2 blockchains will have the status of zero confirmation until they are summarized on the main chain.
Zero Knowledge Proof (ZKP)
Zero Knowledge Protocol (ZKP) is a cryptographic technique in which no information or password is revealed during a transaction with the exception of a certain value which is known to both the prover and verifier. As passwords are not exchanged, there is no risk of theft.