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Text Stack

Your go-to resource for decoding industry jargon and CT (crypto twitter) slang. Find clear, easy-to-understand definitions of web3 and Polkadot terms without the noise.

A

Account

Your personal crypto wallet holding keys, funds, and Web3 identity.

Account abstraction

A blockchain feature that lets smart contracts handle accounts, unlocking custom rules and smarter, user-friendly wallets.

Address

A unique digital location where your crypto lives—like an email address, but for assets.

Agile Coretime

A feature of Polkadot 2.0 that enables flexible access to Polkadot’s computing power for efficient, cost-effective building and deployment

Alpha

Fresh or rare info that could give traders a market edge, or a metric showing how an investment beats the broader market.

altcoin

Any cryptocurrency that's not Bitcoin, the true OG.

Anon

Crypto slang for someone anonymous. Shhhhh.

Apeing

Jumping into a new crypto investment with unbridled enthusiasm (and no research).

Appchain

A blockchain optimized for specific purposes.

Asychronous Backing

A feature of Polkadot 2.0 that enables parallel transaction validation and block production, enabling 10X higher throughput for Polkadot projects.

Automatic Market Maker (AMM)

A decentralized bot that sets the price of assets based on supply and demand—no human brokers required.

B

BABE

Polkadot's system for assigning block creators, ensuring fairness and consistent block production rate. Stands for Blind Assignment for Blockchain Extension.

backing

Validators putting their staked DOT behind blocks, confirming they’re solid and ready for inclusion in the blockchain.

bear market

When crypto markets have plunged—typically 20% or more.

BEEFY

A Polkadot feature that provides light-client-friendly and bridge-efficient finality proofs that improve interoperability.

Bitcoin pizza

The legendary 2010 Bitcoin transaction when 10,000 BTC bought two pizzas. Pepperoni, anyone?

block

A container of transactions that, once verified, becomes a permanent, tamper-proof part of the blockchain.

block explorer

A blockchain search engine for tracking transactions, balances, and network activity.

blockchain

A secure, decentralized digital ledger that records transactions in linked, tamper-proof blocks.

blockchain trilemma

The challenge of achieving security, decentralization, and scalability without sacrificing any of them.

blockspace

Available room in a blockchain to process and add transactions.

Bonding

Locking up tokens to access network benefits or utilities—such as voting with conviction or staking to earn rewards.

Bounty/bounties

A system funded by the treasury and managed by curators, where recipients get paid as they hit milestones in OpenGov-approved tasks.

Bridge

A channel enabling the transfer of assets or data between Polkadot and external blockchains, enhancing cross-chain interoperability.

Bull market

When crypto markets are charging upwards—good vibes all around.

C

Central Bank Digital Currency (CBDC)

Government-backed crypto aiming to modernize money while staying centralized.

Centralized

When control rests in the hands of a few.

Circulating supply

The amount of a cryptocurrency currently on the market—what you can actually buy or sell.

Coins

Represents a store of value native to a blockchain (all coins are considered tokens, but not all tokens are considered coins).

Collator

A Polkadot parachain node.

Commission

A fee set by validators on the network, deducted from the total block rewards before distributing the remaining rewards to nominators who support them.

Consensus

The process of reaching agreement on the blockchain. Polkadot’s approach? GRANDPA.

Consensus mechanism

The rules that govern a blockchain's block verification process.

Coretime

The time you buy to use Polkadot’s cores, billed by blocks—bulk or on-demand.

Cross-chain Message Format (XCM)

Blockchains playing nice together, sharing data and assets across networks seamlessly.

Cryptography

The math magic securing your information on the blockchain, ensuring privacy and trust. Without it, crypto wouldn’t be, well, crypto.

Curator

A person, group, or other entity charged with judging and verifying the successful completion of a bounty.

D

Decentralization

The distribution of authority and control across a network, eliminating the need for a central governing entity.

Decentralized applications (dapps)

Apps running on a distributed network without a central authority—power to the users!

Decentralized autonomous organization (DAO)

A community-led organization governed by code and decentralized voting, without a central authority. Polkadot has the world's largest DAO.

Decentralized exchange (DEX)

A peer-to-peer platform for trading cryptocurrencies directly, without intermediaries or centralized control.

Decentralized finance (DeFi)

A blockchain-based financial system. Open, permissionless access to borrowing, lending, trading—everything traditional finance does, but without intermediaries.

Decentralized governance

A system where the community collectively calls the shots about a network’s rules and upgrades, typically through blockchain-based voting mechanisms.

Decentralized identifiers (DID)

Your digital identity, but powered by blockchain. It’s self-owned, secure, and puts you in control of your personal data.

Decentralized physical infrastructure networks (DePIN)

The use of blockchain technology to manage and coordinate physical assets and infrastructure in a decentralized manner.

Decentralized storage

Storing data across multiple blockchain nodes for better privacy, security, and censorship resistance.

Decoded

An educational and community-driven event series by Polkadot, aimed at demystifying blockchain technology and fostering a deeper understanding of decentralized systems.

DOT

Polkadot’s native token, used for governance, general operation, and bonding to support and secure the network.

DOTSAMA

The collective nickname for the Polkadot and Kusama ecosystems—two chains sharing a similar ethos.

Duty roster

The list of tasks each validator is assigned to perform.

E

Elastic scaling

A feature of Polkadot 2.0 that enables parallel processing of parachain blocks on multiple Polkadot cores.

Epoch

A time period within the BABE protocol, divided into slots for orderly block production.

Era

A set period containing sessions where validator and nominator updates happen, and rewards are distributed.

F

Faucet

A crypto freebie dispenser, giving out small token amounts to get you started.

Fiat

Traditional government-issued money—think dollars, euros, and yen.

Finality

A block property that cannot be reverted.

Finality gadget

The tech that decides when blocks are final, aka GRANDPA on Polkadot.

Floor price

The lowest price of an NFT in a collection, setting the bar for entry.

Fork

A split in a blockchain’s protocol, leading to a new chain.

Forkless upgrades

Seamless updates to the protocol without creating chain splits—continuity at its best.

FUD

"Fear, uncertainty, and doubt"—a classic tactic to stir the pot and throw shade on a project. Drama, meet crypto.

Fully homomorphic encryption (FHE)

Encryption that lets you process data without decrypting it—privacy at every step.

Fungible

Swappable for an identical item, like one dollar for another dollar.

G

GameFi

The intersection of gaming and finance—where you can play, earn, and level up your crypto.

Gas

The fee you pay for blockchain transactions, covering the computing power needed.

Gavin Wood

Co-founder of Ethereum and creator of Polkadot, known for developing the Solidity programming language and key blockchain technologies.

Genesis

The origin of a blockchain, also known as block 0.

GRANDPA

Polkadot’s tool for locking in blocks, making them unchangeable. Short for GHOST-based Recursive Ancestor Deriving Prefix Agreement.

Gray Paper

Technical paper introducing the scope and direction for Dr. Gavin Wood's new computational model JAM, Join-Accumulate Machine.

H

Hackathon

Developers teaming up for rapid-fire blockchain building sessions, often for prizes during timed events.

Hacking

Exploiting system vulnerabilities—can be good (ethical) or bad (malicious).

Hard fork

A permanent blockchain split requiring all users to upgrade to stay in sync.

Hash

The digital fingerprint of data, uniquely representing it in the blockchain.

HODL

The legendary crypto misspelling that means “Hold On for Dear Life”—ignore the dips, ride the waves.

Hyperbridge

A scalable cross-chain protocol for seamless transfers across blockchains. Short for hyper-scalable bridge. Short for hyper-scalable bridge.

I

Immutability

A blockchain superpower—once data’s written, it can’t be changed.

interoperability

The ability of different blockchains to communicate and share information, enabling greater connectivity in the crypto space.

J

Join-Accumulate Machine (JAM)

Gavin Wood’s vision for a supercharged Polkadot focused on speed, scalability, full decentralization, and enhanced user experience.

K

KSM

The token for Kusama, Polkadot’s sister chain.

Kusama

Polkadot’s “canary network”—a playground for new tech and experimentation.

L

Layer 0

The foundational infrastructure layer of a blockchain network, supporting Layer 1 blockchains and ensuring connectivity and security.

Layer 1

The base layer of a blockchain, such as Ethereum, which processes and validates transactions directly.

Layer 2

A secondary protocol built on top of a Layer 1 blockchain, designed to improve scalability and transaction speed.

Layer 3

A layer that extends Layer 2 with additional functionality, like data management.

Learn-to-earn

Blockchain’s spin on education—get rewarded for learning about crypto and Web3.

Light client

A slimmed-down blockchain node that verifies transactions without downloading the whole chain—minimal effort, maximum security.

Liquid restaking

Re-staking tokenized staked assets (or rewards) to secure additional protocols while maintaining flexiblility—double duty for your assets.

Liquid staking

Staking without locking up your tokens, so they remain usable while still earning rewards.

Liquidity

The availability of assets that can be easily traded or exchanged without causing major price changes, crucial for the efficient functioning of decentralized markets and exchanges.

Liquidity pool

A blockchain-based reserve where users lock tokens to facilitate seamless trading and other activities on decentralized exchanges.

M

mainnet

The live, fully operational version of a blockchain where real transactions happen. Short for main network.

McDonald's

Crypto’s inside joke for fallback plans during bear markets—“See you flipping burgers!”

Memecoin

A cryptocurrency born from internet memes, often with passionate community followings.

mempool

A blockchain’s waiting room where pending transactions sit until they’re processed and added to a block.

Merkle tree

A blockchain filing cabinet, organizing and verifying data efficiently with cryptographic roots and branches.

Metaverse

A digital universe of interconnected virtual spaces where you can work, play, and live your best Web3 life.

Minting

The process of creating new cryptocurrency or digital assets, like NFTs, and recording them on the blockchain—a crypto birth certificate.

Modular

A plug-and-play approach to blockchain design, where parts like consensus and execution can be tailored for specific needs.

Modular blockchain

A pick-and-mix blockchain design where components like consensus and execution are separate for flexibility.

Monolithic blockchain

A one-size-fits-all blockchain handling consensus, data, and execution all in one package.

Move-to-earn

Earn crypto while you stay active—think of it as a blockchain-powered Fitbit.

MPC wallet

Similar to multisigs, MPC wallets are where several users collaborate for enhanced security—a modern-day crypto vault. Short for multi-computational wallet.

Multichain

The blockchain multiverse, connecting multiple chains for a more versatile ecosystem.

Multisig

A crypto wallet requiring multiple signatures to approve transactions—like a safe with several keys.

N

Network

A collection of nodes or computers connected to support the operation of a blockchain, facilitating transactions and data sharing.

Network latency

The lag time between a blockchain action and its confirmation—faster is always better.

Node

A computer that helps run the blockchain network by validating transactions and maintaining the ledger.

Nominated Proof of Stake (NPoS)

Polkadot’s fair staking model, where nominators back trustworthy validators to secure the network.

Nominator

A Polkadot participant who stakes tokens to support validators and earn rewards, contributing to network security.

Non-fungible token (NFT)

Unique digital collectible—a one-of-a-kind asset on the blockchain.

O

Offchain

Actions or processes that occur outside the blockchain

Offchain governance

Decision-making about blockchain that happen outside of code, such as community discussions.

Onchain

Blockchain-based activities recorded permanently and transparently—what happens on the chain stays on the chain.

Open source

Software anyone can use or improve—a way of saying, "Let’s build together!"

OpenGov

Polkadot's decentralized governance system where DOT holders can propose, discuss, and vote on changes to the network, ensuring community-driven decision-making

Optimistic rollup

A scalability solution where transactions are assumed valid unless proven otherwise—trust, but verify.

Oracle

A service that provides real-world data to a blockchain, enabling smart contracts to interact with external information.

P

Paper hands

Describes those who panic-sell their crypto at the slightest dip.

Parachain

An independent blockchain connected to the Polkadot Chain, benefiting from shared security and interoperability.

Parity Technologies

A company, founded by Dr. Gavin Wood and Dr. Jutta Steiner, developing Kusama, Polkadot, and Substrate—a flexible blockchain framework that powers both these networks and beyond.

Permissionless

A network system where anyone can join the party—no approval needed.

Play-2-earn

Gaming where your skills translate into crypto rewards—play hard, earn harder.

Polkadot 2.0

A new era for to the network, making it faster, cheaper, and more scalable with three new tech features: Agile Coretime, Async Backing, and Elastic Scaling.

Polkadot SDK

A flexible toolkit for developers to build customizable blockchains and dApps with ease.

Proof of attendance (POAP)

Digital badges proving you showed up—like attendance stickers for the Web3 era.

Proof of Stake (PoS)

A consensus mechanism where staking tokens secures the network—skin in the game.

Proof of Work (PoW)

A method where miners solve mathematical puzzles to validate transactions and create new blocks—the OG blockchain security model.

Proposal

A formal idea from a DOT holder for improving the network—submitted, debated, and voted on by the community.

Protocol

A blockchain’s rulebook, dictating how data is shared and transactions are processed.

Public goods

Blockchain-funded projects that benefit everyone, like shared tools or infrastructure (AKA common goods).

Public key

Your crypto mailbox address—safe to share and used for receiving assets.

R

Real-world assets (RWA)

Physical things tokenized on the blockchain—bringing the real world to Web3.

Referendum

A formal vote on an OpenGov proposal—digital democracy in action.

Regenerative finance

DeFi movement aiming for positive environmental and social impact—profits with a purpose.

Relay Chain

Polkadot’s backbone that is responsible for network security, consensus, and connecting all Polkadot blockchains. AKA Polkadot Chain

Relay nodes

Nodes on the Polkadot Chain (AKA Relay Chain) that facilitate communication and coordination between Polkadot and its blockchains.

Remote Procedure Call (RPC)

A protocol used to communicate with blockchain nodes, enabling users and applications to query data or send transactions to the network.

Restaking

Reinvesting your staked rewards back into staking for compounded gains.

Reward

Crypto compensation for validators and nominators who keep the network humming.

Rollup

A Layer 2 solution for improving blockchain scalability and speed by bundling transactions.

Runtime

The state transition function of a blockchain, defining how the next block's state is determined from the previous state.

Runtime module

A plug-in for blockchains, adding features or functionality to their runtime.

Rust

A programming language known for safety and performance, used in building Polkadot and Substrate.

S

Scalability

The ability for the network to scale in capabilities (e.g. processing more transactions) when needed.

Secondary market

A marketplace where NFTs and tokens are resold after their initial launch.

Seed phrase (or recovery phrase)

Your 12-24 word crypto backup—your key to wallet recovery if you lose access.

Settlement layer

The blockchain ledger where transactions are finalized and set in stone.

Shard

A piece of blockchain’s data or execution load, designed for parallel processing and better scalability.

Sharding

Dividing a blockchain’s workload into smaller pieces to boost speed and scalability.

Shared security

Polkadot’s system where all chains are equally protected by the Polkadot Chain (AKA Relay Chain) security.

Slashing

A penalty where a validator loses some of their staked funds for bad behavior or not doing their job properly—crypto’s version of a timeout.

Slippage

The difference between expected and actual trade prices—an unwelcome surprise in trading.

Smart contract

Self-executing code that automates agreements—no middleman needed

Snowbridge

Polkadot’s trustless bridge to Ethereum for smoother cross-chain interactions.

Soft fork

A blockchain protocol change, backward-compatible with previous versions.

Solidity

Ethereum’s programming language developed by Polkadot creator Dr. Gavin Wood, powering smart contracts across the blockchain world.

Stablecoin

A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset like a fiat currency or a commodity.

Staking

The process of locking up cryptocurrency to support the operations and security of a blockchain network, earning rewards in return.

Staking pool

A team effort where participants combine tokens to stake together, sharing the rewards.

State

A blockchain snapshot of all data, transactions, and accounts at a given moment.

State channel

A way to process transactions off-chain for faster, cheaper exchanges, settled back on-chain

Substrate

A core component of the Polkadot SDK, this open-source Rust framework by Parity Technologies enables the creation of modular, future-proof blockchains tailored for diverse use cases.

Sybil attack

A malicious scheme where someone creates multiple fake identities to gain control over a network.

T

Tap-to-earn

A mobile-friendly crypto earning model—just tap and watch rewards roll in.

Technical Fellowship

A largely autonomous group of experts responsible for representing the technical knowledge and interests of the Kusama and Polkadot networks.

Testnet

A blockchain’s test environment where developers safely experiment before launching on the Mainnet.

Throughput

The speed of a blockchain, measured by transactions per second—faster is better.

Token

A blockchain-issued digital asset representing ownership, utility, or access rights.

Token burn

The act of permanently burning (aka destroying) unused tokens in the treasury to reduce supply and boost scarcity—crypto’s version of a deflationary diet. Polkadot’s current burn rate is 1%.

Token generation event (TGE)

A project’s big debut where tokens are created and distributed—a crypto coming-out party.

Token lockup

A no-sell period for tokens to keep their market value stable.

Tokenization

Turning real-world or digital assets into blockchain tokens for easier management and trading.

Tokenized identity

A digital representation of an individual's identity or personal credentials on a blockchain, giving users control over their data and how it’s shared.

Tokenomics

The economics of a token—how it’s issued, distributed, and used to sustain the network.

TradFi

Traditional finance—the banks, brokers, and systems we’re leaving behind in Web3. Short for traditional finance.

transaction

A blockchain action transferring assets or data between users, recorded forever.

Transactions per second (TPS)

The blockchain speedometer—measuring how many transactions can be processed every second.

Treasury

On Polkadot, a pool of funds governed by the Polkadot DAO used to support development, community projects, and other ecosystem initiatives.

Trust

A feeling of safety—on blockchain, that’s replaced with math and code.

Trustless

Blockchain’s way of working without needing to trust other participants—code is king.

V

Validating

Checking transactions and securing the blockchain—a validator’s job.

Validator

A network guardian who verifies transactions and keeps the blockchain secure.

Virtual machine

A blockchain’s operating system, running smart contracts and decentralized applications.

W

WAGMI

Crypto’s rallying cry: “We’re All Gonna Make It!”

Wallet

A digital tool used to store, send, and receive cryptocurrencies, securing your private keys and managing your blockchain assets.

Web3

Coined by Gavin Wood, Web3 is the next generation of the internet, built on decentralized blockchain technology, empowering users with more control, privacy, and ownership of their data and digital assets.

Web3 Foundation

A non-profit organization supporting the development of decentralized web technologies, including Polkadot, to promote user control over data and identity.

Web3 marketplace

A decentralized online shopping center powered by blockchain, where you can buy and sell digital assets, collectibles, and services—without middlemen.

Web3 Summit

A Web3 Foundation-led gathering to advance the decentralized web through discussions, workshops, and collaboration.

WebAssembly (WASM)

A fast, portable coding format making blockchains snappier and cross-platform.

Whale

An individual or entity holding a large amount of cryptocurrency, with the potential to influence market prices.

White paper

The definitive guide to a blockchain project, outlining its tech, goals, and economics.

Whitelist/allowlist

On Polkadot, a proposal track where referenda are whitelisted on OpenGov by the Technical Fellowship; otherwise, a list of individuals or entities who get early access to projects, token sales, or events.

Wrapped token

A tokenized version of another asset that works on a different blockchain—crypto’s way of traveling abroad.

Y

Yellow paper

A technical sibling to the white paper, diving deeper into the math and mechanics of a project.

Z

Zero-knowledge proof (ZK proof)

A cryptographic trick where you prove something’s true without sharing the details—blockchain’s secret handshake.

Zero-knowledge rollup (ZK-rollup)

Bundles transactions and proves their validity with zero-knowledge magic, all while keeping your data private.