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Hired3
Glossary index

Glossary

Clear, plain English definitions for protocol, DeFi, security, and infra terms you will see in Web3 jobs.

270 terms

A

Account
A wallet or contract that owns assets and sends transactions.
Account Abstraction
Smart contract wallets with flexible rules and better UX.
Address
Public identifier used to receive funds or interact.
Address Poisoning
Scam where attackers mimic your address to trick you.
Admin Key
Privileged key with special control over a contract or system.
Aggregator
Tool that routes orders or data across sources.
Airdrop
Free token distribution to users or addresses.
Altcoin
Any cryptocurrency other than Bitcoin.
AML (Anti-Money Laundering)
Controls and monitoring that prevent illicit fund flows.
AMM (Automated Market Maker)
On chain pools that set prices from token balances.
Anon
Anonymous or pseudonymous participant in online communities.
API
Interface that lets programs call a service.
API Key
Secret credential used to authenticate API requests.
APR (Annual Percentage Rate)
Yearly rate that does not include compounding.
APY (Annual Percentage Yield)
Yearly return that includes compounding.
Arbitrage
Profit from price gaps across markets or pools.
Asset
Resource with value that can be owned or transferred.
ATH (All-Time High)
Highest price an asset has ever reached.
ATL (All-Time Low)
Lowest price an asset has ever reached.

B

Backup
Redundant copy of critical data for recovery.
Backup Phrase
Another term for recovery or seed phrase.
Bagholder
Investor holding depreciated assets after a downturn.
Base Fee
Protocol set minimum gas price per unit under EIP 1559.
Base Layer (Layer 1)
Main chain that provides security, data availability, and settlement.
Bear Market
Prolonged period of declining asset prices and sentiment.
Bearish
Expectation that prices will decline; negative market view.
Beta
Pre-release phase for testing with real users.
Bitcoin
Decentralized digital money secured by proof of work.
Block
Batch of transactions appended to the blockchain.
Block Explorer
Web tool to inspect blocks, transactions, and addresses.
Block Height
Number of blocks since genesis; position in the chain.
Block Reward
Newly created coins and fees paid to the block producer.
Blockchain
Append-only ledger of blocks secured by cryptography.
Bonding Curve
Formulaic pricing mechanism based on token supply.
Borrow
Obtain assets by posting collateral or using credit.
Bridge
System to transfer assets or messages across chains.
Bull Market
Sustained period of rising prices and optimistic sentiment.
Bullish
Expectation that prices will rise; positive market view.
Burn
Permanently remove tokens from circulation.
Burn Address
Irrecoverable address used to destroy or renounce tokens.
Burner Wallet
Temporary wallet for low-stakes use; limits risk exposure.

C

CeFi (Centralized Finance)
Centralized financial services built around crypto assets.
CEX (Centralized Exchange)
Custodial trading venue managed by a centralized operator.
Chain
A blockchain network with its own consensus and state.
Chain ID
Numeric identifier that distinguishes EVM networks.
Chainlink
Oracle network that delivers off-chain data on-chain.
Cliff
Initial period before vesting starts.
Cold Storage
Offline storage of keys to minimize attack surface.
Cold Wallet
Wallet kept offline to minimize exposure to attacks.
Collateral
Assets pledged to secure a loan or leveraged position.
Composability
Ability to combine protocols like modular building blocks.
Confirmation
Additional blocks that increase confidence a tx is final.
Consensus
Process by which nodes agree on the chain’s state.
Contract Address
Address where a smart contract is deployed and reachable.
Copy Trading
Automatically mirroring trades executed by another account.
Cosmos SDK
Framework for building appchains.
Cross-Chain
Interacting or transferring across multiple blockchain networks.
Cryptocurrency
Digital assets secured by cryptography and public networks.
Custodial Wallet
Wallet where a third party holds and manages your keys.
Custody
Safekeeping and control of assets on behalf of users.

D

DAO (Decentralized Autonomous Organization)
On-chain organization governed by tokenholders or members.
DApp (Decentralized Application)
Application that uses smart contracts and wallets.
DCA (Dollar-Cost Averaging)
Investing fixed amounts at regular intervals regardless of price.
Decentralization
Distribution of control and operation among many parties.
DeFi (Decentralized Finance)
Open financial protocols built on blockchains.
Deposit
Move funds into a protocol, account, or position.
Derivative
Instrument whose value derives from an underlying asset.
DEX (Decentralized Exchange)
Exchange using smart contracts and pools or order books.
DEX Aggregator
Router that splits orders across multiple DEXes for best price.
Diamond Hands
Holding through volatility with strong conviction.
Digital Asset
On-chain representation of value, rights, or access.
Digital Signature
Cryptographic proof that a message was authorized by a key holder.
Dust
Tiny token amount, often uneconomical to move.
Dusting Attack
Sending tiny amounts to deanonymize or trick users.
DYOR (Do Your Own Research)
Verify claims independently before investing or using a product.

E

ENS (Ethereum Name Service)
Human-readable names mapped to addresses and records.
EOA (Externally Owned Account)
Account controlled by a private key; initiates transactions.
Escrow
Funds held by a trusted party until conditions are met.
ETH
Native asset of the Ethereum network used to pay fees.
Ethereum
Programmable blockchain for smart contracts and applications.
EVM (Ethereum Virtual Machine)
Runtime that executes smart contracts on EVM chains.
Exchange
Venue where assets are traded between participants.
Exit Liquidity
Later buyers enabling insiders to sell at higher prices.
Exit Scam
Project operators disappear with user funds or promises unfulfilled.

F

Faucet
Service that dispenses test tokens for development.
Fee
Amount charged by a network or service for an action.
Fiat
Government-issued currency like USD or EUR.
Finality
Point at which a block is effectively irreversible.
Flash Loan
Uncollateralized loan repaid within a single transaction.
Fork
Protocol split creating new rules or chain history.
Foundry
Modern Ethereum development toolkit.
Free Mint
NFT mint with zero mint price; users pay only network fees.
Front-Run
Acting on knowledge of pending orders to gain advantage.
FUD (Fear, Uncertainty, Doubt)
Negative sentiment or rumor that undermines confidence.
Full Node
Node that fully verifies and stores blockchain state.

G

Gas
Unit measuring computational work in EVM transactions.
Gas Fee
Price paid for gas consumed by a transaction.
Gas Limit
Maximum gas a transaction is allowed to consume.
Gas Price
Price per unit of gas a user is willing to pay.
Genesis Block
First block of a blockchain; root of the chain’s history.
Governance
Processes for proposing, deciding, and executing changes.
Governance Token
Token granting voting or proposal rights in governance.
Grant
Funding provided to support work without repayment.
Gwei
Denomination of ETH equal to 1,000,000,000 wei.

H

Halving
Scheduled reduction of block rewards to control issuance.
Hard Cap
Maximum amount that can be raised or minted.
Hardware Wallet
Device that stores keys offline and signs securely.
Hash
Fixed-size digest produced by a cryptographic hash function.
Hash Rate
Aggregate computational power securing a PoW network.
Health Factor
Metric indicating how close a position is to liquidation.
HODL
Long-term holding regardless of short-term volatility.
Hot Wallet
Internet-connected wallet for convenience with higher risk.

I

ICO (Initial Coin Offering)
Fundraising by selling newly issued tokens to investors.
Impermanent Loss
Value loss from price divergence while providing liquidity.
Inflation
Increase in token supply or general price level over time.
Interoperability
Ability for systems to work together across chains and apps.
IPFS
Peer-to-peer, content-addressed storage and distribution network.

J

JSON‑RPC
Standard RPC interface for Ethereum nodes.

K

Key Management
Practices and tools to secure, rotate, and recover keys.
Keystore File
Encrypted JSON file containing a private key.
KYC (Know Your Customer)
Identity verification required by compliance and risk policies.

L

L1 (Layer 1)
Base chain handling consensus, data, and settlement.
L2 (Layer 2)
Scaling layer that inherits security from a base L1.
Layer 2 (L2)
Scaling networks built atop Layer 1.
Leverage
Use of borrowed funds to amplify exposure and returns.
Lightning Network
Fast Bitcoin payments using off chain channels.
Limit Order
Order to trade at a specified price or better.
Liquid Staking
Staking with receipt tokens usable in DeFi.
Liquidity
Ease of trading without causing significant price moves.
Liquidity Pool
Smart contract reserves enabling automated swaps and fees.
Liquidity Provider (LP)
Participant supplying assets to a pool in exchange for fees.
Lockup
Period during which tokens cannot be transferred.
LP Token
Token representing a share of a liquidity pool.

M

Mainnet
Primary network where transactions have real economic value.
Margin
Borrowed funds used to increase position size and leverage.
Market Cap
Token price multiplied by circulating supply.
Market Order
Order to execute immediately at the best available price.
Max Supply
Maximum number of tokens that can be issued.
Mempool
Pool of pending transactions awaiting inclusion in a block.
MEV (Maximal Extractable Value)
Miner/Maximal Extractable Value from ordering.
Miner
Participant producing blocks and securing PoW networks.
Mining
Producing blocks via proof of work to secure a network.
Mint
Create new tokens or NFTs and record them on-chain.
Mnemonic
Human-readable word list that backs up a wallet’s seed.
Mobile Wallet
Wallet application running on a smartphone.
MPC (Multi‑Party Computation)
Cryptography for shared key operations.
Multichain
Architecture spanning multiple blockchains or rollups.
Multisig
Wallet requiring multiple signatures to authorize actions.

N

Native Token
Primary asset used for fees and incentives on a chain.
Network
Group of nodes connected to exchange data and maintain a chain.
Network Fee
Fee charged by the network to process transactions.
NFA (Not Financial Advice)
Disclaimer that information is not investment advice.
NFT (Non-Fungible Token)
Unique token representing an individual asset or claim.
Node
Participant running software to validate, store, and relay data.
Non-Custodial
Service that never controls user funds or private keys.
Nonce
Per-account counter ensuring each transaction is unique and ordered.

O

Off-Chain
Operations occurring outside the blockchain state.
On-Chain
Data and execution recorded directly on the blockchain.
Open Source
Code available for use, study, modification, and distribution.
Optimistic Rollup
Assumes correctness unless disputed.
Oracle
Service that brings external data and events on-chain.
Order
Instruction to buy or sell under specified conditions.
Order Book
List of buy and sell orders organized by price levels.
OTC (Over-The-Counter)
Direct trade between counterparties outside of exchanges.

P

P2P (Peer-to-Peer)
Direct communication or exchange between participants without intermediaries.
Paper Hands
Selling early due to fear or volatility.
Paper Wallet
Physical print or written record of keys or seed phrase.
Peg
Targeted exchange rate linking an asset to another value.
Permissionless
Open access—no approval needed to use or build.
Perpetuals
Derivatives without expiry; funding aligns price to spot.
Phishing
Deceptive attempt to trick users into revealing secrets.
Pool
Shared funds used for trading, lending, or staking.
Portfolio
Collection of assets held by a user or entity.
Pre-Mine
Token allocation minted before public launch.
Pre-Sale
Token sale to select buyers before a public offering.
Price Impact
Execution slippage from trade size versus available liquidity.
Private Key
Secret key that enables signing and control of funds.
Proof of Reserves
Attestation that a custodian holds assets it claims.
Proof of Stake (PoS)
Consensus where validators secure the chain with staked tokens.
Proof of Work (PoW)
Consensus secured by computational work to produce blocks.
Protocol
Set of rules defining network or application behavior.
Public Key
Key used to verify signatures and derive addresses.
Pump and Dump
Coordinated price spike followed by insiders selling.

Q

Quorum
Minimum participation required to validate a decision.

R

Recovery Phrase
Human-readable backup of wallet keys (seed phrase).
Reserve
Assets set aside to back liabilities or stabilize systems.
Roadmap
Planned milestones and timelines for a project.
Rollup
Layer 2 that executes off-chain and posts data to L1.
Rug Pull
Developers withdraw liquidity or abandon a project with funds.
Rust
Systems language used in many L1/L2 protocols.

S

Satoshi
Smallest unit of Bitcoin, equal to 0.00000001 BTC.
Satoshi Nakamoto
Pseudonymous creator of Bitcoin and author of its whitepaper.
Scam
Fraudulent scheme designed to steal funds or data.
Seed Phrase
Mnemonic words encoding a wallet’s master private key.
SegWit
Bitcoin upgrade that fixes malleability and boosts capacity.
Self-Custody
You control private keys and assets, not a custodian.
Sequencer
Orders transactions in rollups.
Service Fee
Charge collected for providing a service or transaction.
Sharding
Partitioning state or processing to scale throughput.
Sidechain
Independent chain bridged to a main chain for transfers.
Signature
Mathematical proof binding a signer to a specific message.
Signer
Entity that authorizes transactions using a private key.
Slashing
Penalty reducing stake for validator misbehavior or downtime.
Slippage
Difference between expected and executed trade price.
Slippage Tolerance
Maximum price deviation a user accepts before canceling a trade.
Smart Contract
Programmable code that runs on a blockchain.
Snapshot
Off-chain voting system using token balances at a block.
SNARK
Succinct Non‑interactive ARgument of Knowledge.
Solidity
Contract programming language for EVM chains.
Spam Token
Worthless or malicious token sent to clutter wallets.
Stablecoin
Token designed to maintain a stable value via a peg.
Staking
Locking tokens to help secure a network and earn rewards.
STARK
Scalable Transparent ARgument of Knowledge.
Supply
Number of tokens outstanding—circulating, total, or fully diluted.
Supply Cap
Maximum number of tokens that can ever exist.
Sweep
Rapidly buy multiple NFTs in a collection or consolidate funds.
Synthetic Asset
Token that tracks the value of another asset or index.

T

Taker
Trader who removes liquidity by matching existing orders.
Taproot
Bitcoin upgrade that improves privacy and flexibility.
Testnet
Public network for testing without real economic value.
TGE (Token Generation Event)
Initial creation/distribution of tokens.
Ticker
Short symbol representing a token or asset (e.g., ETH).
Token
Digital unit representing value, rights, or access on-chain.
Token Burn
Permanent removal of tokens from circulation.
Token Grant
Allocated tokens subject to vesting or lockups.
Token Supply
Total number of tokens outstanding or possible.
Token Upgrade
Process to migrate a token to improved logic or standard.
Tokenomics
Economic design of a token.
TPS
Transactions per second a network can process.
Trading
Buying and selling assets to manage risk or profit.
Transaction
Signed message that changes blockchain state.
Transaction Fee
Fee paid to include a transaction in a block.
Transfer
Movement of assets between accounts or chains.
Treasury
On‑chain or off‑chain reserves managed by a project or DAO.
TVL (Total Value Locked)
Value locked in a protocol.
Two-Factor Authentication
Second verification step beyond password or key.

U

UI
User Interface — visual layer users interact with.
Under-Collateralized
Loan backed by collateral worth less than liability.
Unlock Schedule
Timeline for locked tokens to become transferable.
Upgradability
Patterns for safely changing contracts.
Upgradable Contract
Smart contract whose logic can be upgraded via a proxy.
Utility Token
Token granting product access or in‑app utility.
UTXO (Unspent Transaction Output)
Unspent Transaction Output model used by Bitcoin.
UX
User Experience — overall ease, clarity, and satisfaction.

V

Validator
Node that proposes/validates blocks.
Vault
Product or contract that automates asset management.
Vesting
Time‑based release of tokens or equity.
Volatility
Magnitude of price fluctuation over time.
Volume
Amount traded of an asset over a period.
Voting Power
Weight of a participant’s influence in governance.

W

Wallet
Key management and transaction signing.
WalletConnect
Protocol to connect wallets to apps via QR or deep link.
Watch-Only Wallet
Wallet that tracks balances without private keys.
Web3
Applications built on decentralized networks and cryptographic primitives.
WETH
Wrapped ETH — ERC‑20 representation of ETH.
Whale
Entity holding or moving very large amounts of assets.
Whitelist
List of addresses allowed to participate in an action.
Whitepaper
Technical document describing a project’s design and rationale.
Withdrawal
Removal of funds from a protocol, wallet, or exchange.
Wrapped Token
Tokenized representation of another asset on the same or other chain.
Write Function
Contract method that changes state and costs gas.

X

XPUB (Extended Public Key)
HD wallet root public key.

Y

Yield
Return generated by an asset or strategy.
Yield Farming
Earning tokens by providing liquidity.
YOLO
Risky “you only live once” trade or decision.

Z

Zero Address
The all‑zero address used as a burn or null target.
Zero-Knowledge
Cryptography proving statements without revealing underlying data.
ZK (Zero‑Knowledge)
Cryptography that proves facts without revealing data.
ZK Proof
Cryptographic proof verifying correctness with zero knowledge.
ZK Rollup
Uses zero‑knowledge proofs for validity.