📚 SCOOP’S DICTIONARY 📚

There’s a lot of brain-busting jargon out there - let’s break some of that down as easy as eating soft-serve on a hot summers day 😎

🪙 CRYPTO

Blockchain: A decentralized digital ledger that records transactions across a network of computers.
Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Wallet: A software program that stores private and public keys and interacts with the blockchain to enable users to send and receive cryptocurrencies.
Mining: The process of verifying and adding transactions to the blockchain by solving complex mathematical problems using powerful computers.
ICO: Initial Coin Offering is a fundraising method in which companies issue digital tokens to investors in exchange for cryptocurrencies.
Decentralized: A network that operates without a central authority or server, allowing for peer-to-peer transactions.
Smart contract: A self-executing contract that is programmed to automatically execute when certain conditions are met.
Altcoin: Any cryptocurrency that is not Bitcoin.
Stablecoin: A cryptocurrency whose value is pegged to a stable asset, such as fiat currency or a commodity.
Satoshi: The smallest unit of a Bitcoin, named after its mysterious creator, Satoshi Nakamoto.
Cold storage: A method of storing cryptocurrencies offline to protect them from hacking and theft.
Fork: A split in the blockchain network that creates two or more versions of the blockchain.
Hash rate: The processing power of a network in solving mathematical problems required for mining.
Public key: A unique address on the blockchain that is used to receive cryptocurrencies.
Private key: A secret code that is used to access and transfer cryptocurrencies from a wallet.
Whale: A person or organization that holds a large amount of cryptocurrency.
HODL: A slang term for "hold" which means holding onto your cryptocurrency investment for a long period of time.
FUD: A slang term for "fear, uncertainty, and doubt" which describes negative sentiments that can affect the cryptocurrency market.

⛓️ NFT

NFT: Non-Fungible Token is a unique digital asset that is verified on the blockchain, often used to represent digital art, music, or collectibles.
Digital Art: Artwork that is created or presented in a digital format.
Collectible: A unique item that is highly valued by collectors due to its rarity or historical significance.
Marketplace: An online platform that facilitates the buying and selling of NFTs.
Royalties: A percentage of future sales that an NFT creator can earn each time the NFT is sold.
Gas: A fee paid to the network for the processing of a transaction on the blockchain.
Rarity: A measure of how unique or scarce an NFT is, often determined by the number of editions or copies created.
Metadata: Information that is attached to an NFT, including the creator's name, title, description, and image or video file.
Minting: The process of creating a new NFT and adding it to the blockchain.
Minting platform: A website or service that allows creators to mint and sell their NFTs.
Blockchain explorer: A website or tool that allows users to view and track NFT transactions on the blockchain.
Smart NFTs: NFTs that use smart contract technology to enable dynamic and interactive features.
Tokenization: The process of creating a digital token that represents a real-world asset.
Wrapped NFT: An NFT that is converted into a fungible token, making it more easily tradeable on decentralized exchanges.
IPFS: InterPlanetary File System is a protocol used to store and access NFT files in a decentralized manner.
Burn: The process of permanently destroying an NFT, often used to increase the rarity of a particular NFT series.
Layer 2: A secondary blockchain network that operates on top of the primary blockchain network, offering faster and cheaper transactions.
Proof of ownership: Evidence that verifies the authenticity of an NFT and proves that the owner is the rightful owner of the digital asset.

💰 DeFi

Decentralized Exchange (DEX): A platform that allows users to trade cryptocurrencies without relying on a centralized authority.
Liquidity pool: A collection of cryptocurrency funds locked into a smart contract that enables automated market-making for trading.
Yield Farming: A process of earning rewards in the form of cryptocurrencies by providing liquidity to DeFi platforms.
Governance Token: A cryptocurrency token that is used to vote on governance issues in a DeFi protocol.
Flash Loan: A type of loan that allows users to borrow cryptocurrency for a very short period of time, typically within a single block.
Stablecoin Swap: A platform that allows users to swap different types of stablecoins with each other.
Automated Market Maker (AMM): A type of decentralized exchange that uses algorithms to set the price of a cryptocurrency based on its supply and demand.
Collateralized Debt Position (CDP): A mechanism that allows users to borrow cryptocurrency by locking up other cryptocurrencies as collateral.
Impermanent Loss: A loss that occurs when providing liquidity to a liquidity pool and the price of the assets changes unfavorably during that time.
Oracles: A mechanism that provides real-time external data to smart contracts to enable DeFi platforms to interact with real-world data.
Wrapped Token: A token that represents another cryptocurrency on a different blockchain, making it compatible with DeFi protocols.
Cross-Chain Swaps: A feature that allows users to swap tokens between different blockchain networks.
Decentralized Autonomous Organization (DAO): A decentralized organization that operates through rules encoded as computer programs, using blockchain technology.
Automated Liquidation: A process in which a smart contract automatically sells the collateralized assets when a borrower's position falls below a certain threshold.
Synthetic Assets: A type of token that represents an asset in a virtual market, providing exposure to the value of the asset without holding the underlying asset.
Rebase: A mechanism that adjusts the supply of a token in response to changes in the token's price, helping to maintain a stable value.
Token Burning: A process of permanently destroying tokens to reduce the overall supply, increasing the value of the remaining tokens.
Flash Swaps: A type of swap that allows users to instantly borrow any token in a liquidity pool and pay it back within the same transaction.
Initial DeFi Offering (IDO): A fundraising method in which a DeFi project offers tokens to investors in exchange for cryptocurrency.
Gas Fees: The fees paid for processing transactions on a blockchain network, usually paid in cryptocurrency.