Crypto Accounting Glossary

Money that is owed or due.

Decentralized computing refers to the allocation of computing resources from multiple machines participating in a network, rather than a centralized server.

A cryptocurrency exchange which operates without a central authority.

DeFi is a term for financial services on blockchain that eliminate intermediaries like banks and brokers.

Decentralized Storage is a method of storing data across multiple nodes in a decentralized network rather than in a central location.

The risk that a party will not meet its contractual obligations.

The decrease in the general price level of goods and services.

A consensus algorithm maintaining irrefutable agreement on the truth across the network, validating transactions and acting as a form of digital democracy.

The gradual loss of value of an asset.

A financial contract deriving its value from an underlying asset.

A measure of how difficult it is to find a new block compared to the easiest it can ever be.

A digital asset is anything that exists in a binary format and comes with the right to use.

A distributed ledger is a decentralized database that records and maintains a permanent and transparent record of transactions or digital assets. Unlike traditional centralized systems where data is stored in a single location, a distributed ledger is spread across multiple participants or nodes in a network. It allows for secure and transparent transactions without the need for intermediaries.

A network structure in which components are located in different places but share resources.

A risk management strategy that mixes a wide variety of investments within a portfolio.

Dogecoin is an open-source peer-to-peer digital currency, introduced as a "joke currency" in 2013,

An investment strategy where a fixed dollar amount of a particular asset is bought on a regular schedule, regardless of the asset's price.

The risk that a digital currency can be spent twice.

A design document providing information for the Ethereum community about a proposed change to the system.

A blockchain-based, decentralized system that enables the development, hosting, and execution of commercial-scale decentralized applications (dApps).

An ERC20 token is a type of token that follows the ERC20 standard for Ethereum which enables the creation of new tokens.

A standard for representing ownership of non-fungible tokens (NFTs), a special type of cryptographic token on the Ethereum blockchain.

The runtime environment for smart contracts in Ethereum.

The profit that a company makes.

A measure of a company's profitability.

Economy is the system of production, distribution, and use of goods and services.

Elastos is a blockchain-powered Internet platform where users own and generate wealth from their data.

The rate at which new cryptocurrency coins are created and distributed.

The process of encoding data to prevent unauthorized access.

Tendency of people to overvalue items they own.