deBridge DeFi Glossary | Understand The Words of Crypto
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Fiat

Government-issued currency, e.g., USD or EUR.

Finality

The assurance of the irreversibility of a blockchain transaction.

Fork

A fork happens when a blockchain splits into two versions. It can be planned (upgrade) or unplanned (disagreement).

Front-running

Front-running is executing a trade before someone else to profit from their order. MEV bots often use this strategy to exploit orders for profit.

Fully Diluted Valuation (FDV)

A projection of a protocol’s market value in the future if all tokens were in circulation. It helps assess long-term valuation.

Gasless

Gasless transactions are processed without requiring user gas payments. Protocols cover the cost or use alternative fee systems.

Genesis Block

The genesis block is the very first block of a blockchain, also known as Block 0 or Block 1. It marks the beginning of its chain history.

GM (Good Morning)

“GM” (short for Good Morning) is a friendly greeting widely used in crypto communities. It represents positivity and shared culture.

Governance Token

A governance token gives holders the right to vote on protocol decisions. It represents decentralized ownership.

Hard Wallet

A hard wallet is a physical device for storing crypto securely offline. It helps to protect funds from online attacks, helping you safely store your crypto.

HODL

An acronym for Hold on for Dear Life - maintaining ownership of tokens lifelong despite volatility. It’s a popular meme symbolizing strong conviction.

Honeypot

A honeypot is a tool to detect unauthorized access attempts. It helps identify malicious activity.

Hot Wallet

A software-based crypto wallet connected to the internet. It’s convenient but more vulnerable to hacks compared to a hard wallet.

Hooks

Hooks are cross-chain abstraction tools offered by deBridge. They enable smart contracts to work across chains seamlessly.

Initial Coin Offering (ICO)

An ICO is a fundraising method for early-stage crypto projects. Investors receive tokens in exchange for capital when investing in an ICO.

Interoperability

Interoperability is a concept of allowing different blockchains to communicate seamlessly. It enables transfers, messaging, and data sharing.

Layer 1 (L1)

L1 blockchains operate independently with their own consensus systems. Some examples of L1 blockchains include Ethereum, Solana, and Bitcoin.

Layer 2 (L2)

L2 networks scale L1 blockchains by processing transactions off-chain. They are built on top of an existing blockchain and help reduce fees and improve speed.

Limit Order

A limit order is placed to help buy or sell an asset at a specific price. It gives traders more control than market orders.

Liquidity

Liquidity measures the ease of buying or selling an asset without causing fluctuations. High liquidity reduces price impact for an asset.

Mainnet

Mainnet is a live, production-ready version of a blockchain. Unlike testnet, transactions on mainnet carry real value.

Maker

A maker is someone who places an order on an exchange. Their order adds liquidity to the market.

Market Order

A market order executes immediately at the best available price for a cryptocurrency. This order prioritizes speed over precision.

Miner Extractable Value (MEV)

MEV is profit made by reordering or inserting transactions in some order. Bots often exploit this on high-traffic chains.

MetaMask

MetaMask is a widely-used crypto wallet for Ethereum and EVM chains. It’s available as a browser extension and mobile app.
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