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Web3 & Blockchain Glossary

Plain-language definitions of popular Web3, blockchain, and Stellar ecosystem terms — each linked to deeper EduNode courses and articles.
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67 terms

A

A design that moves account logic into smart contracts, enabling features like social recovery, passkey signers, and sponsored fees instead of a single private key controlling everything. Learn more →Crypto Fundamentals masterclass →
The distribution of free tokens to wallet addresses, often used for marketing, rewarding early users, or decentralizing token ownership. Learn more →Crypto Wallet Security guide →
Entities within the Stellar network that issue assets and take deposits. They serve as a bridge between existing financial systems and the Stellar network. Learn more →Anchors course →Stablecoins hub →
A type of decentralized exchange protocol that prices assets algorithmically using liquidity pools instead of a traditional order book. Learn more →DeFi Explained: What is an AMM? →What is a liquidity pool? →

B

A minimum amount of XLM that every Stellar account must hold to exist on the ledger. It prevents ledger spam and funds subentries like trustlines. Learn more →Stellarnomics →Stellar operations course →
The first successful implementation of a digital currency using blockchain technology, invented by an anonymous person or group of people under the pseudonym Satoshi Nakamoto. Learn more →Learn about Blockchain →
A type of distributed ledger that holds transaction data in "blocks" which are cryptographically linked and secured. Learn more →Learn about Blockchain →Blockchain basics course →Crypto Fundamentals masterclass →

C

A wallet whose private keys are generated and stored offline — e.g., a hardware wallet or paper backup — making it resistant to online attacks. Learn more →Crypto Wallet Security guide →
A protocol that enables assets or data to move between different blockchain networks. Learn more →Cross-Chain Development course →
A type of digital or virtual currency that uses cryptography for security. Bitcoin, Ethereum, and Litecoin are examples. Learn more →Crypto Fundamentals masterclass →What is a stablecoin? →

D

An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. Learn more →The Web3 Revolution →
Applications that run on a decentralized network, rather than being controlled by a single authority or organization. Learn more →The Web3 Revolution →
A sector of blockchain-based applications designed to eliminate traditional financial intermediaries, offering services like lending, borrowing, and trading. Learn more →What Is DeFi? A Beginner’s Guide →DeFi Protocol Engineering course →Crypto fundamentals hub →
When a stablecoin’s market price drifts away from its intended peg — for example, trading at $0.97 or $1.03 instead of $1.00 — either temporarily or permanently. Learn more →Are stablecoins decentralized? →Stablecoins hub →
A database that is shared and synchronized across multiple nodes or locations, with no central administrator. Blockchains are a type of distributed ledger. Learn more →Learn about Blockchain →

E

A blockchain-based platform that supports smart contracts, enabling more complex financial and logistical operations beyond simple transactions. Learn more →Ethereum hub →Ethereum Basics course →Ethereum Development masterclass →
The runtime environment that executes smart contract bytecode on Ethereum. Its instruction set and gas model are replicated by many compatible chains, making Solidity code portable. Learn more →Ethereum hub →Ethereum Development masterclass →

F

The model of consensus employed by the SCP, which requires nodes to only trust a subset of the overall network. This model strikes a balance between decentralization and efficiency. Learn more →Stellar Network masterclass →
An uncollateralized DeFi loan that must be borrowed and repaid within a single transaction. Used for arbitrage — and, when abused, for oracle manipulation attacks. Learn more →Smart Contract Security Vulnerabilities →
A token where each unit is identical and interchangeable — like XLM or USDC — in contrast to NFTs, where each token is unique. Learn more →What Is a Stablecoin? →

G

The fee required to perform a transaction or execute a contract on the Ethereum network. Learn more →What is gas in Ethereum? →Ethereum hub →Ethereum Basics course →

H

A physical device that stores private keys offline and signs transactions internally, so keys never touch an internet-connected computer. Learn more →Crypto Wallet Security guide →
The client-facing API server for the Stellar ecosystem. Applications use Horizon to submit transactions and query ledger data from the network. Learn more →Stellar Network masterclass →

I

The loss liquidity providers can suffer when the price ratio of pooled tokens changes compared to simply holding them — a core risk of providing liquidity to AMMs. Learn more →What is a liquidity pool? →DeFi Explained: What is an AMM? →
The ability for different blockchain networks to communicate and interact with each other. Learn more →Cross-Chain Development course →

L

Secondary frameworks or protocols built on top of an existing blockchain network to improve its scalability and efficiency. Learn more →What is a rollup? →Ethereum hub →
A pool of two tokens locked in a smart contract that enables decentralized trading and provides liquidity. On Stellar, liquidity pools are built into the protocol layer. Learn more →What is a liquidity pool? →DeFi Explained: What is an AMM? →DeFi Protocol Engineering course →
The native cryptocurrency of the Stellar network. Lumens serve as a bridge currency for transactions involving different currencies and are used to pay for transaction fees on the network. Learn more →Stellarnomics: Stellar Network economics →How to keep your lumens safe →Stellar Network masterclass →

M

The primary, production blockchain network where transactions have real economic value, as opposed to test networks used for development. Learn more →Crypto Fundamentals masterclass →
Profit that block producers or searchers can extract by reordering, inserting, or censoring transactions within a block — e.g., front-running DEX trades. Learn more →Ethereum hub →
The process of validating and adding new transactions to a blockchain's ledger, often requiring significant computational power. Learn more →Learn about Blockchain →
A security feature that requires multiple parties to sign a transaction before it can be executed. Stellar supports multi-signature transactions, enhancing the security of the network. Learn more →Stellar operations course →

N

A type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, using blockchain technology. Unlike cryptocurrencies which are fungible, NFTs are unique and can't be exchanged like-for-like. Learn more →How to mint NFTs on Stellar →NFT Marketplace Development course →What is IPFS? →
A fundamental unit in a network or data structure, representing a point of connection or an element in a graph. In blockchain, a node is a computing device that participates in the network by maintaining a copy of the ledger. Learn more →Stellar Nodes map →
A wallet where the user alone controls the private keys and funds — "not your keys, not your coins" — versus custodial wallets where a third party holds the keys. Learn more →Crypto Wallet Security guide →

O

A service that feeds real-world or off-chain data, such as asset prices, to smart contracts so they can execute based on external events. Learn more →Oracles Basics course →

P

A phishing-resistant credential based on WebAuthn that replaces passwords — and increasingly seed phrases — with biometrics or device-bound keys. Learn more →Crypto Wallet Security guide →
A feature of the Stellar network that allows a user to send one type of asset while the receiver gets another type of asset. Stellar automatically converts the asset at the most favorable rate. Learn more →Stellar Network masterclass →
An alternative to PoW, where validators are chosen to create a new block based on the amount of cryptocurrency they hold and are willing to "stake" as collateral. Learn more →Ethereum hub →
A consensus algorithm used in blockchain networks where miners compete to solve a complex mathematical problem first. It is used to validate transactions and produce new blocks to the chain. Learn more →Learn about Blockchain →
A cryptographic keypair where the public key identifies an account and the private key proves ownership by signing transactions. The private key must never be shared. Learn more →Crypto Wallet Security guide →

R

A Layer 2 scaling technique that executes transactions off-chain and posts compressed proofs or data to the main chain, inheriting its security. Learn more →What is a Layer 2? →Ethereum hub →
The interface applications use to talk to a blockchain node — reading balances, submitting transactions, and querying contract state. Learn more →Stellar Network masterclass →

S

A human-readable list of words (usually 12 or 24) that encodes a wallet's private keys. Anyone with the seed phrase can control the funds, so it must be kept secret and offline. Learn more →Crypto Wallet Security guide →Crypto Fundamentals masterclass →
A scalability solution that involves dividing a blockchain into several smaller, more manageable pieces, or "shards," each capable of processing its own transactions and smart contracts. Learn more →Ethereum hub →
A self-executing contract with the terms of the agreement directly written into code. They automatically enforce and execute when conditions in the contract are met. Learn more →What are Smart Contracts? →Top 10 Smart Contract Security Vulnerabilities →What is a smart contract audit? →
A systematic security review of smart contract code — manual analysis plus automated tooling — that hunts for vulnerabilities before deployment, since on-chain bugs can mean permanent loss of funds. Learn more →Top 10 Smart Contract Security Vulnerabilities →Blockchain Security Auditing course →
Stellar's smart contracts platform. Soroban contracts are written in Rust and compiled to WebAssembly, enabling scalable and secure decentralized applications on Stellar. Learn more →What is Soroban? →Soroban course →Stellar Network masterclass →
A type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve of assets, often a specific amount of fiat currency like the US dollar. Learn more →Stablecoins hub →What Is a Stablecoin? →Stablecoins masterclass →
Stellar makes it possible to create, send, and trade digital representations of all forms of money: dollars, pesos, bitcoin, pretty much anything. It’s designed so all the world’s financial systems can work together on a single network. Learn more →Stellar course: Basic Concepts →Stellar Network masterclass →USDC on Stellar →
The consensus algorithm used by the Stellar network. It provides a way to reach consensus without relying on a closed system to accurately record financial transactions. Learn more →Stellar Network masterclass →Stellar Nodes map →
The software that nodes on the Stellar network run to validate transactions and reach consensus. Learn more →Stellar Nodes map →
The organization responsible for maintaining and overseeing the development of the Stellar network. Learn more →Stellar Network masterclass →
A standards document describing protocols and conventions for the Stellar ecosystem — similar to Ethereum's EIPs — covering things like asset issuance and interoperability. Learn more →SEPs course →
A TOML file that Stellar service providers host to allow clients to discover information about their organization. It includes information such as the organization's currency documentation, images, brand color, etc. Learn more →Stellar Network masterclass →

T

A parallel blockchain network used for testing and development. Testnet assets have no real value, and Stellar's testnet is reset periodically. Learn more →Stellar Network masterclass →
A digital representation of a particular asset or utility that resides on top of another blockchain. Tokens can represent any assets that are fungible and tradable. Learn more →RWA Tokenization Explained →Crypto Fundamentals masterclass →
The process of representing real-world or digital assets — stocks, real estate, currencies — as tokens on a blockchain so they can be traded and managed programmatically. Learn more →RWA Tokenization Explained →
The total value of assets deposited in a DeFi protocol's smart contracts — a common metric for comparing protocol adoption. Learn more →What Is DeFi? →
A Stellar account setting that authorizes the account to hold a specific issued asset. An account must establish a trustline before it can receive any non-native asset. Learn more →How to issue assets on Stellar →USDC on Stellar →

U

A US dollar stablecoin issued by Circle, backed 1:1 by cash and short-term US Treasuries with monthly reserve attestations. It is available natively on Stellar, Ethereum, and many other networks. Learn more →USDC on Stellar →USDC vs USDT →Stablecoins hub →
Tether, the largest stablecoin by market capitalization, pegged to the US dollar and backed by a mix of reserves reported through quarterly attestations. Learn more →USDC vs USDT →Stablecoins hub →

V

A network participant (node) responsible for verifying transactions and helping the network reach consensus on the state of the ledger. Learn more →Stellar Network masterclass →

W

A digital tool that allows users to interact with a blockchain network. Wallets can hold cryptographic keys that allow a user to send and receive cryptocurrencies. Learn more →Freighter Wallet setup guide →Crypto Wallet Security guide →
Short for "Web 3.0", this term represents the next generation of the internet, one where decentralized blockchain technologies and cryptocurrencies play a vital role. Learn more →The Web3 Revolution →Web3 Fundamentals Masterclass →
A portable binary instruction format that lets code written in languages like Rust run efficiently in sandboxed environments. Soroban smart contracts compile to Wasm. Learn more →Code Playground →Soroban course →

Z

A cryptographic method that lets one party prove a statement is true without revealing the underlying information. Learn more →Zero-Knowledge Proofs on Stellar →ZK Proofs masterclass →