Glossary

Find the meaning of common terms, abbreviations and acronyms

Augmented reality (AR)

Technology that creates an enhanced version of the physical world by overlaying digital information such as visual elements, sound, or other sensory stimuli through a device such as a smartphone camera.

Avatar

An image used to represent an individual user within a VR environment.

Access control

The process of granting or denying specific requests either to obtain and use information and processing services or to enter specific physical facilities.

Advanced Encryption Standard (AES256)

AES is an asymmetric key algorithm – a technique used to encrypt data in most modern protocols and technologies. 256 refers to the length of the key, which in this case is 256 bit.

Air-gapping

A way of securing computers without the device connecting to the internet or any other open networks.

Airdrop

A token distribution method used to send cryptocurrency or tokens to wallet addresses. Sometimes, airdrops are used for marketing purposes in exchange for simple tasks like re-shares, referrals, or app downloads.

Ask me anything (AMA)

An interactive interview where viewers and followers can ask the host of the AMA any question – providing an opportunity for the community to have a discussion with a panel of internal and external experts on a particular topic.

Asymmetric keys

Two related keys—a public key and a private key—that are used to perform complementary operations, such as encryption and decryption or signature generation and signature verification.

Authentication

The process of establishing confidence of authenticity; in this case, the validity of a person’s identity and an authenticator (e.g., PIV Card or derived PIV credential).

Process of verifying the identity of an individual, device, or process. Authentication typically occurs through the use of one or more authentication factors such as:

• Something you know, such as a password or passphrase

• Something you have, such as a token device or smart card ▪ Something you are, such as a biometric

Biometric authentication (BIO, BIO-A)

A form of authentication in which authenticity is established by biometric verification of a new biometric sample from a cardholder to a biometric data record read from the cardholder’s activated PIV Card. In BIO, the biometric sample may be captured from the cardholder in isolation, while in BIO-A, an attendant must oversee the process of biometric capture.

Blockchain

The underlying technology on which cryptocurrencies operate. A blockchain is essentially a complete ledger of transactions held simultaneously by several people on a computer network.

Block

Think of a blockchain as consisting of a ledger that is being constantly updated, and those changes synced between any number of different nodes (indeed, “distributed ledger technology” is another phrase used to describe it).

After a certain number of transactions have been added to the ledger and consensus has been reached among the nodes that the transactions are valid, then they are cryptographically locked into a “block” and officially recorded. This “block” forms the basis for the next one; in this way, they are all linked together in a chain, hence–blockchain.

Certification

The process of verifying the correctness of a statement or claim and issuing a certificate as to its correctness.

Crypto-

Even though this prefix is originally Greek, our current usage comes from cryptography. Technologies that are referred to with the blanket term of “crypto” tech are underlain by cryptographic tools and processes (such as public/private key pairs) that enable them, and enable them to be secure. Of course, “cryptocurrency” often gets shortened to simply “crypto”, so this emerging field is full of instances where something “crypto” is being added to or shortened.

Cryptocurrency

Digital currency that is based on mathematics and uses encryption techniques to regulate the creation of units of currency as well as verifying the transfer of funds. Cryptocurrencies operate independently of a central bank, and are kept track of through distributed ledger technology.

A digital form of currency that can be traded for goods, services or other currencies. Transactions are verified and recorded using cryptography by ordinary people, rather than a centralised authority such as a bank.

Cryptography

A method for secure communication using code. Symmetric-key cryptography is used by various blockchain networks for transfer of cryptocurrencies. Blockchain addresses generated for wallets are paired with private keys that allow transfer of cryptocurrency. Paired public and private keys allow funds to be unlocked.

A computer science method of keeping information secret and secure by scrambling it into indecipherable information. The information can only be decrypted and read with the necessary key

Cryptographic key

A parameter used in conjunction with a cryptographic algorithm that determines the specific operation of that algorithm.

Personally Identifiable Information (PII)

Information that can be used to distinguish or trace an individual’s identity—such as name, social security number, biometric data records—either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual (e.g., date and place of birth, mother’s maiden name, etc.)

dApp – a decentralised application (dApp) is one that isn’t controlled by a central authority. Twitter is an example of a centralised app, with users relying on it as an intermediary to send and receive messages. As such, users play by the rules it enforces and the algorithm it uses to control content.

Decentralized application (dapp)

An open source, software application with backend code running on a decentralized peer-to-peer network rather than a centralized server. You may see alternate spellings: dApps, DApps, Dapps, and Đapps.

Data-encryption key (DEK)

A cryptographic key used to encrypt or decrypt account data.

DAO – decentralised autonomous organisation. A DAO is a group of people who work together towards a shared goal and abide by rules written into the project’s self-executing computer code. Bitcoin (the project, not the currency) is an example of a DAO.

Digital asset

A digital commodity that is scarce, electronically transferable, and intangible with a market value.

Digital identity

An online or networked identity adopted by an individual, organization, or electronic device.

Digital signature

A code generated by public key encryption and attached to an electronically transmitted document in order to verify the contents of the document.

Digital signature

The result of an asymmetric cryptographic transformation of data that allows a recipient of the data to validate the origin and integrity of the data, and protects the sender against forgery by third parties or the recipient.A cryptographic key used to encrypt or decrypt account data.

Distributed ledger

in traditional finance, an organisation such as a bank holds a ledger of all its customers’ transactions. In defi, the ledger is shared and synchronised among users in different locations around the world. A blockchain is an example of a distributed ledger.

A type of database which spreads across multiple sites, countries, or institutions. Records are stored sequentially in a continuous ledger. Distributed ledger data can be either “permissioned” or “unpermissioned” to control who can view it.

Ethereum

The second biggest cryptocurrency by market capitalisation, after Bitcoin. (See market capitalisation.)

Encryption

The process of making digital information into a form that prevents unauthorised access. If you use a password to access a website, the site should be encrypting it so that it is of no use to hackers if stolen.

The (reversible) transformation of data by a cryptographic algorithm to produce cipher text (i.e., hiding the information content of the data).

Gas

Transactions on the Ethereum network carry a fee. For every transaction, users must pay an amount of the native Ethereum currency ether (ETH). This fee is referred to as gas. Gas is used to reward Ethereum ‘miners’ (see ‘mining’) for the energy they use validating transactions. Gas also serves as a deterrent against malicious users.

Hash

A hash is the result of a piece of data being put through a special algorithm. A hashing algorithm essentially compresses data of any size down into an almost-unique alphanumeric string of text.

Hash function

A mathematical function that takes any arbitrary-length message as input and produces a fixed-length output. It must have the property that it is computationally infeasible to discover two different messages that produce the same hash result. It may be used to reduce a potentially long message into a “hash value” or “message digest” that is sufficiently compact to be input into a digital-signature algorithm.

Initial coin offering (ICO)

The cryptocurrency equivalent of an Initial Public Offering (IPO). It offers investors the opportunity to back a new crypto project.

Identification

The process of discovering the identity (i.e., origin or initial history) of a person or item from the entire collection of similar persons or items.

Identifier

Unique data used to represent a person’s identity and associated attributes. A name or a card number are examples of identifiers.

Identity

The set of physical and behavioral characteristics by which an individual is uniquely recognizable.

Identity verification

The process of confirming or denying that a claimed identity is correct by comparing the credentials of a person requesting access with those previously proven and associated with the PIV Card or a derived PIV credential associated with the identity being claimed.

Integrity

Ensuring consistency of data—in particular, preventing unauthorized

and undetected creation, alteration, or destruction of data.

Know Your Customer (KYC)

exchanges are obliged to carry out certain identity checks on their customers under ‘Know Your Customer’ rules.

Ledger

a record of transactions, including times, dates, senders and recipients.

Mining – crypto mining is the process of verifying cryptocurrency transactions using computer hardware. Bitcoin miners are volunteers motivated by the chance to earn an amount of newly minted Bitcoin. In doing so, they collectively validate transactions on the blockchain and prevent double spending.

Layer one

Layer 1 refers to the main blockchain in a multi-level blockchain network. For example, Ethereum, Fantom and the Bitcoin blockchain are all layer one blockchains. Many layer two blockchain offload resource-intense transactions to their separate blockchain, while continuing to use Ethereum's or Bitcoin's layer one blockchain for security purposes.

Layer two

Layer 2 (L2) refers to a secondary framework or protocol that is built on top of an existing, layer one blockchain. Layer 2 blockchains typically improve transaction speeds and cost efficiency. As layer two's continue to scale, mempool data gives builders looking to migrate or build new Dapps the tools to create the best user experiences.

Metaverse

The big one that everyone seems to be talking about. But what is it really? Coined in the 1992 dystopian sci-fi novel, Snow Crash written by Neal Stephenson, it generally refers to a virtual world that lies beyond, on top of, or is an extension of the physical world. It’s a network of virtual shared spaces with a focus on social connection.

Multi-factor authentication

Method of authenticating a user whereby two or more factors are verified. These factors include something the user has (such as a smart card or dongle), something the user knows (such as a password, passphrase, or PIN), or something the user is or does (such as fingerprints, other forms of biometrics, parametrics, etc.)

Node

Any point in a network that does some form of processing of data, such as a terminal, acquirer, or switch.

Node

A computer or device connected to other computers or devices that all hold a copy of a blockchain. Each node supports the network of nodes by sharing information and validating transactions.

NFT

A Non-Fungible Token is a digital collectible that uses the same underlying technology as cryptocurrencies.

One-time password (OTP)

A one-time password is a common method of providing an additional factor to support MFA/2FA logins. OTPs can be a set of digits or other information sent to a physical token or a passcode sent to an email address, phone or app. Since the OTP is time-dependent, entering it verifies that the user has access to the device or account at the time of the login attempt.

Peer to peer (P2)

Peer to peer. Refers to a transaction between two people without an intermediary or central authority involved.

Password

In computer and network security, a specific string of characters used by a program, computer operator, or user to access the system and the information stored within it.

Permission

Authorization to perform activities, such as reading and writing local files, creating network connections, and loading native code.

Personal Identification Number (PIN)

A numeric secret that a cardholder memorizes and uses as part of authenticating their identity.

Plug-in

A separately installable software module that adds function to an existing program, application, or interface.

Private key

The secret part of an asymmetric key pair that is typically used to digitally sign or decrypt data

Proof of work (PoW)

Proof that you’ve done the computational work to guess the 64-character hash necessary to add a block to the blockchain. Broadcasting your solution allows other nodes to quickly verify that your hash is correct and that you must have carried out the work required to get it.

Proof of stake (PoS)

Rather than proving you’ve done the computational legwork to guess the hash (see proof of work), proof of stake shows you’ve staked a certain amount of coins for a chance to become a validator. The more coins you stake, the better your chances of becoming a validator.

Pseudonym

A name assigned through a formal process by a federal department or agency to a federal employee for the purpose of the employee’s protection (i.e., the employee might be placed at risk if their actual name were known) or for other purposes.

Public key

The public part of an asymmetric key pair that is typically used to verify signatures or encrypt data.

Public key certificate

A digital document issued and digitally signed by the private key of a certification authority that binds an identifier to a cardholder through a public key. The certificate indicates that the cardholder identified in the certificate has sole control and access to the private key.

QR code

A QR code is a type of barcode in the form of a square. The letters QR stand for ‘Quick Response’. The code contains many dots, a few small squares and sometimes a small logo in the middle. This is different from most other barcode types, which are rectangular with lines. A QR code can therefore contain much more information. Within the crypto world, it is often used to make a ‘wallet’ address scannable. This speeds up the process of transferring crypto and prevents errors.

Quantum computing – a field of computer science that uses principles of quantum physics to process much larger data sets at much greater speeds than traditional, binary-based computing.

Quantum safe

TBC

Seed (phrase)

A random series of 12-24 words generated by your crypto wallet and used to gain access to it.

The seed phrase, mnemonic, or Secret Recovery Phrase is a crucial part of public blockchain technology, originally created for Bitcoin, and goes by many names. However, they all refer to a set of ordered words which correspond to determined values. These values never change, and therefore the same string of words in the same order will always produce the same number–this is the underlying functionality that allows seed phrases to back up wallets. The Secret Recovery Phrase is exactly what it sounds like: something that is secret, and should be known only to the owner of the account. If the seed phrase is given to someone else, that person has complete control over the account; they can drain it of tokens and funds, execute transactions with it, etc.

Smart contract

A programme that executes itself on a blockchain when certain conditions are met, without the need for human intervention or an intermediary. Once executed, the contract cannot be changed or undone. For example, account 1 will release asset X to account 2 once it receives asset Y.

SHA-256

a hashing algorithm that compresses data of any size into an alphanumeric string that cannot be reverse engineered, keeping the original data secret and secure while being useful for validating input data. It was developed in part with the US National Security Agency (NSA) and is used by Bitcoin.

Symmetric key

A cryptographic key that is used to perform both the cryptographic operation and its inverse (e.g., to encrypt, decrypt, create a message authentication code, or verify a message authentication code).

Token

in crypto, a token is a unit of cryptocurrency other than Bitcoin or Ethereum – which are technically also tokens. Specifically, it’s a way to refer to a currency that runs on a particular blockchain. For example, XRP is a token on the Ripple blockchain.

Trustless

‘Trustless’ is a term that gets used a lot in the decentralized web, and it deserves some explanation. Traditionally, to call something ‘trustless’ would sound like a negative thing. In the context of decentralized technology, it has a more technical meaning: since everyone has a copy of the ledger of all transactions ever executed, there is no need for a third-party repository of ‘truth’ in whom trust resides. We don’t rely on some centralized server somewhere that could be hacked or changed arbitrarily; anyone can verify the transactions themselves. In a way, the rules and assurances built into the blockchain provide the basis for greater trust, because the system works the same for everyone.

Verification

The process of associating and/or checking a unique characteristic.

Wallet – a digital storage device or location for keeping crypto assets secure. Wallets can be online (see hot wallet) or offline (see cold wallet).

Web3 / Web 3.0

Web3, or Web 3.0, are terms used synonymously with “the decentralized web” and are often used to refer, broadly, to the blockchain and decentralized technology ecosystems as a whole.

Zero-knowledge proof

A zero-knowledge proof is a method of verification in which a "prover" shows possession of secretive knowledge to a "verifier" without revealing the sensitive information itself. This encryption scheme can ensure data privacy and confidentiality on a public blockchain.