Glossary of Terms

This glossary is intended to provide general definitions of certain technical terms commonly used in the field of blockchain and asset tokenisation.

The information contained herein is provided for informational purposes only and does not constitute financial, legal or investment advice.

Blockchain: A distributed database in which transactions are recorded chronologically and immutably through cryptographic mechanisms and consensus among network participants.

Tokenisation: Tokenisation refers to the technical representation of certain rights or assets through tokens registered on a blockchain network, in accordance with the legal and technical structure defined in each case.

This glossary is provided solely for informational purposes and aims to offer general definitions of terms commonly used in the field of blockchain and tokenisation. The information included does not constitute financial, legal or investment advice.

Airdrop: Free distribution of cryptocurrencies or tokens to users as a promotional or reward strategy.

Digital Asset: A representation of value in digital form stored on a blockchain, such as cryptocurrencies, tokens and NFTs.

Consensus Algorithm: A protocol that allows blockchain participants to agree on the state of the network without a central authority. Examples include Proof of Work (PoW) and Proof of Stake (PoS).

Altcoin: Any cryptocurrency other than Bitcoin. Examples include Ethereum, Solana and Cardano.

Blockchain: A decentralised accounting database in which transactions are recorded using a triple-entry system, with the decentralised network acting as a trusted third party.

Block Explorer: An online tool that allows users to view transactions, addresses and blocks within a public blockchain.

Digital Wallet (Wallet): A technical tool that enables interaction with blockchain addresses. In regulated environments, asset custody may be provided by authorised custodians.

Centralized Exchange (CEX): A cryptocurrency exchange operated by a centralised entity.

Cold Wallet: A cryptocurrency storage device that is not connected to the internet.

Smart Contract: An autonomous program stored on a blockchain that automatically executes agreements when predefined conditions are met.

Cryptography: The science of encoding and protecting information to ensure confidentiality, integrity and authenticity.

Cryptocurrency: A blockchain-based digital asset that may be used as a medium of exchange.

Asset Custody: A service that stores and safeguards digital assets on behalf of third parties.

DAO (Decentralised Autonomous Organization): An organisation governed by smart contracts rather than a traditional hierarchical structure.

DApps (Decentralised Applications): Applications that run on blockchain networks without central servers.

DeFi (Decentralised Finance): An ecosystem of blockchain-based financial services without traditional intermediaries.

DEX (Decentralised Exchange): A decentralised trading platform that enables direct peer-to-peer trading through smart contracts.

Decentralisation: The distribution of control and decision-making across participants without a central authority.

Ethereum: A decentralised blockchain platform that enables the execution of smart contracts and decentralised applications.

Exchange: A platform where cryptocurrencies and tokens can be bought, sold or exchanged.

Fiat Currency: Government-issued currency not backed by physical assets, such as the euro or the US dollar.

Fork: A change in the rules of a blockchain protocol that may result in a new version of the blockchain.

Gas Fee: A fee required to execute transactions or smart contracts on a blockchain.

Blockchain Governance: Mechanisms through which decisions are made within a blockchain network.

Hash: A cryptographic function that converts data into a unique fixed-length value.

HODL: A colloquial term referring to the long-term holding of digital assets.

ICO (Initial Coin Offering): A fundraising mechanism in which tokens or cryptocurrencies are issued to raise capital.

Interoperability: The ability of different blockchains to interact and share data with one another.

Lightning Network: A second-layer solution built on Bitcoin that enables fast and low-cost transactions.

Liquidity Pool: Assets locked in smart contracts that facilitate trading operations.

Meme Coin: A type of cryptocurrency whose popularity is often linked to internet culture or social phenomena.

Mining: The process of validating transactions and adding new blocks to a blockchain through consensus mechanisms.

Metaverse: Virtual environments built on blockchain where users interact and participate in digital economies.

NFT (Non-Fungible Token): A unique digital token representing ownership of a specific digital or physical asset.

Node: A computer that participates in a blockchain network by validating and transmitting data.

Oracle: A service that provides external data to smart contracts, enabling interaction with the real world.

Peer-to-Peer (P2P): A direct transaction model between users without intermediaries.

Security Token Offering (STO): A token issuance structure representing rights subject to financial regulatory frameworks, in accordance with applicable legislation.

Stablecoin: A cryptocurrency whose value is linked to a stable reference asset such as a fiat currency.

Staking: The process of participating in transaction validation by locking cryptocurrencies.

Utility Token: A token designed to provide access to a product or service within a blockchain ecosystem and not representing a financial instrument.

Web3: The evolution of the internet towards decentralised architectures where users control their data and digital assets through blockchain.

Whitepaper: A technical document describing the purpose, technology and roadmap of a blockchain project.

Wrapped Token: A tokenised representation of a cryptocurrency on another blockchain to facilitate interoperability.

XRP: A cryptocurrency developed by Ripple Labs primarily used to enable fast and cost-efficient cross-border payments.

Zero-Knowledge Proof: A cryptographic method that allows the verification of information without revealing the underlying data.

This glossary is provided for informational purposes only and may be updated periodically to reflect technical or terminological changes.