IMPCT Institute · Reference
Glossary.
Every term introduced in the course, in one place. Each entry links back to the module where it first appeared. Updated as new modules release.
116 terms · 21 letters
A.
- AI agent tokensMod 27 →
- Tokens associated with infrastructure or protocols designed to support autonomous AI agents operating on chain.
- AltseasonMod 23 →
- A period when altcoins outperform Bitcoin, typically associated with falling Bitcoin dominance.
- AMM (Automated Market Maker)Mod 17 →
- A DEX that uses a mathematical formula and a pool of two assets to set prices, instead of matching buyers to sellers via an order book.
- APY (Annual Percentage Yield)Mod 18 →
- The effective annualized return on an investment, accounting for compounding.
- Automated Market Maker (AMM)Mod 10 →
- The pricing mechanism most DEXs use instead of an order book. Uses liquidity pools and a formula to set prices algorithmically.
B.
- Base feeMod 05 →
- (Ethereum post-EIP-1559) The portion of the gas fee that is burned, dynamically adjusted based on network demand.
- BitcoinMod 01 →
- The first cryptocurrency, launched in January 2009 by an anonymous developer or group using the name Satoshi Nakamoto. Designed as peer-to-peer electronic cash that doesn't require a financial intermediary.
- Bitcoin dominanceMod 23 →
- The percentage of the total crypto market capitalization that Bitcoin represents. A navigation tool for risk appetite within crypto.
- BlockMod 02 →
- A bundle of transactions added to the blockchain at one time. New blocks are produced on a regular cadence (about every 10 minutes for Bitcoin, about every 12 seconds for Ethereum).
- Block explorerMod 02 →
- A website that lets you read the blockchain. Etherscan, mempool.space, and similar tools show every transaction, address, and block in human-readable form.
- BlockchainMod 01 →
- A shared, append-only ledger maintained by a distributed network of computers rather than by a single authority.
- Blockchain trilemmaMod 08 →
- The tradeoff every base-layer blockchain makes between security, decentralization, and scalability. You can optimize for two; the third gives.
- BridgeMod 08 →
- Infrastructure that moves assets between chains or layers. Often the most-attacked part of crypto.
- BUIDLMod 25 →
- BlackRock's tokenized money market fund, launched in 2024. The largest tokenized Treasury product.
- Byzantine Generals problemMod 02 →
- A 1982 computer-science problem describing the difficulty of getting independent parties to agree on a shared state when some of them may be dishonest. Bitcoin's blockchain solves a real-world version of this problem.
C.
- CBDC (Central Bank Digital Currency)Mod 26 →
- A digital form of fiat currency issued directly by a central bank.
- CCTP (Cross-Chain Transfer Protocol)Mod 19 →
- Circle's native USDC bridging system. Burns on source, mints on destination, eliminating the wrapped-asset middleman.
- Centralized exchange (CEX)Mod 10 →
- A company that operates a trading venue, holds customer assets, and matches trades on an internal order book. (Coinbase, Binance, Kraken.)
- ChainlinkMod 20 →
- The dominant oracle network. Most major DeFi protocols use Chainlink price feeds.
- Circulating supplyMod 22 →
- The amount of a token currently in circulation (excludes tokens locked in vesting, foundation reserves, or future emissions).
- CoinMod 13 →
- The native asset of a blockchain. BTC, ETH, SOL, etc. Issued by the protocol.
- ComposabilityMod 15 →
- The property that lets DeFi protocols use each other as building blocks. "Money legos."
- Concentrated liquidityMod 17 →
- The Uniswap V3 mechanism that lets LPs provide liquidity within a specific price range, improving capital efficiency.
- Constant-product formulaMod 17 →
- The x × y = k formula used by Uniswap V2 and many other AMMs. The product of the two asset balances stays constant through every trade.
- ConvictionMod 29 →
- Strength of belief in a thesis, usually expressed as the size of a position you're willing to hold through volatility.
- Counterparty riskMod 24 →
- The risk that an intermediary holding your assets (exchange, custodian, lending platform) fails to honor its obligations.
- CryptocurrencyMod 01 →
- A form of digital money that uses cryptography to secure transactions and is recorded on a blockchain rather than in the books of a central institution.
- CryptographyMod 01 →
- The mathematical techniques used to secure information. In crypto, primarily public-key cryptography (which lets users prove ownership without revealing secrets) and hashing (which fingerprints data).
- CustodialMod 04 →
- A wallet or service where a third party (an exchange, a fintech) holds your private keys on your behalf.
D.
- DAIMod 09 →
- MakerDAO's crypto-collateralized stablecoin. Decentralized, structurally robust, capital-inefficient.
- DAT (Digital Asset Treasury company)Mod 25 →
- A public company whose primary balance-sheet asset is held in crypto. Strategy (formerly MicroStrategy) is the canonical example.
- DecentralizationMod 01 →
- The property of a system in which no single party can unilaterally change the rules or block participation.
- Decentralized exchange (DEX)Mod 10 →
- A trading venue implemented as smart contracts on a blockchain. Customer assets stay in self-custody throughout. (Uniswap, Curve, dYdX.)
- DedollarizationMod 26 →
- The process by which countries or institutions reduce their use of the US dollar. The pace has been debated; the magnitude is real but not as fast as proponents claim.
- DeFi (Decentralized Finance)Mod 15 →
- Financial services implemented as smart contracts rather than as company-run businesses.
- DePIN (Decentralized Physical Infrastructure Networks)Mod 27 →
- Networks that coordinate real-world hardware contributions (cell coverage, storage, compute, mapping) via tokens.
- DeSci (Decentralized Science)Mod 27 →
- Blockchain-coordinated alternatives to the existing scientific research, publishing, and funding systems.
- Double-spend problemMod 01 →
- The challenge of preventing someone from spending the same unit of digital money twice. Solved by Bitcoin without needing a central authority.
- DrawdownMod 23 →
- The percentage decline from a peak to a trough. Bitcoin has had multiple 80%+ drawdowns across its history.
E.
- EIP-1559Mod 05 →
- An Ethereum upgrade activated in August 2021 that introduced the base fee + tip structure and made gas fees more predictable.
- ERC-20Mod 13 →
- The most common Ethereum standard for fungible tokens.
- ERC-721Mod 13 →
- The most common Ethereum standard for non-fungible tokens.
- Ether / ETHMod 06 →
- The native currency of the Ethereum network. Used to pay gas fees and as a store of value.
- EthereumMod 06 →
- The second major blockchain, launched in 2015. The original general-purpose smart-contract platform.
- EVM (Ethereum Virtual Machine)Mod 06 →
- The runtime environment that executes Ethereum smart contracts. Other chains compatible with the EVM (Polygon, Arbitrum, Base, etc.) are called "EVM-compatible."
F.
- FDV (Fully Diluted Valuation)Mod 22 →
- The market cap a token would have if every token that will ever exist were already in circulation. (Token price × max supply.)
- Flash loanMod 15 →
- A loan that exists for a single transaction. Borrow without collateral, use the funds, repay (plus fees) all before the transaction ends. If you can't repay, the entire transaction reverts.
- FungibleMod 13 →
- Property where any one unit is interchangeable with any other. (Dollars, bitcoin, USDC.)
G.
H.
- HalvingMod 03 →
- The protocol-enforced event, occurring approximately every four years, that cuts the rate of new bitcoin entering circulation in half. Tightens supply against existing demand.
- Halving cycleMod 23 →
- The roughly four-year pattern in Bitcoin's price driven by the halving of new issuance every ~210,000 blocks.
- Hardware walletMod 04 →
- A physical device that stores private keys in an offline chip and signs transactions with a button press. (Ledger, Trezor, Coldcard, GridPlus.)
- HashMod 02 →
- A cryptographic fingerprint of a piece of data. If the data changes at all, the hash changes completely. Used to chain blocks together and detect tampering.
- Hash rateMod 03 →
- The total computational power being applied to mining Bitcoin at any given time. Higher hash rate = more secure network.
- Howey testMod 24 →
- The legal test the SEC uses to determine whether something is a security. Asks whether there is an investment of money in a common enterprise with an expectation of profit derived from the efforts of others.
I.
- Impermanent lossMod 17 →
- The opportunity cost an LP bears when the price of the pool's assets diverges from their entry price. The "loss" is relative to holding, not to the initial dollar amount.
- Information dietMod 28 →
- The set of sources you consume regularly. The quality of your information diet determines the quality of your understanding.
L.
- Layer 1 (L1)Mod 08 →
- A base-layer blockchain. Bitcoin, Ethereum, Solana, Avalanche, etc.
- Layer 2 (L2)Mod 08 →
- A blockchain that runs on top of an L1, inheriting its security while offering cheaper or faster execution.
- Lending protocolMod 16 →
- A smart-contract system where users can deposit assets to earn interest or borrow assets against collateral. (Aave, Compound, Morpho.)
- LeverageMod 16 →
- Borrowing against your existing position to take a larger position. Amplifies both gains and losses.
- Liquid staking token (LST)Mod 12 →
- A token representing your staked position plus accrued rewards, which remains tradeable. (stETH, rETH, etc.)
- LiquidationMod 16 →
- The process by which a third party repays an under-collateralized loan and seizes part of the collateral, plus a bonus. Keeps the protocol solvent.
- Liquidity poolMod 17 →
- A smart-contract holding reserves of two (or more) assets that an AMM uses to facilitate trades.
- Liquidity provider (LP)Mod 17 →
- Someone who deposits assets into a liquidity pool to earn a share of trading fees.
- Loan-to-value (LTV)Mod 16 →
- The ratio of a loan's value to the value of the collateral backing it.
- Lock-and-mintMod 19 →
- The most common bridge design: lock the asset on the source chain, mint a wrapped version on the destination chain.
M.
- MemecoinMod 13 →
- A token whose value is primarily driven by community and meme appeal rather than utility. (DOGE, SHIB, PEPE.)
- MempoolMod 05 →
- The public waiting area where unconfirmed transactions sit before being included in a block.
- MultisigMod 04 →
- A wallet that requires multiple private keys to authorize a transaction. Used for high-value holdings to eliminate single points of failure.
N.
- NarrativeMod 27 →
- A thematic story that captures market attention for a period, driving capital and attention into the associated category.
- Network effectMod 03 →
- The phenomenon where a network becomes more valuable as more people use it. Money, languages, and platforms all exhibit network effects.
- NFT (Non-Fungible Token)Mod 13 →
- A unique, non-interchangeable token.
- NodeMod 02 →
- A participant in the blockchain network. Full nodes hold a complete copy of the chain's history and help validate new blocks.
O.
P.
- PegMod 09 →
- The target price a stablecoin tries to maintain (typically $1.00).
- PermissionlessMod 15 →
- Describes a protocol that anyone can interact with without applying for access or being approved.
- Price feedMod 20 →
- An oracle that provides current asset prices, the most common type of oracle data.
- Private keyMod 04 →
- The secret cryptographic value that controls a blockchain address. Whoever has the private key can spend the funds at that address.
- Profit + PurposeMod 30 →
- The investment thesis that capital can be deployed with both financial return expectations and explicit positive-impact intent. The premise that the two are not in tension when the infrastructure can prove both.
- Proof-of-stake (PoS)Mod 12 →
- The consensus mechanism Ethereum (post-2022) and most modern L1s use, where security comes from locked-up capital.
- Proof-of-workMod 02 →
- The mechanism by which Bitcoin participants compete to add the next block. Requires real computational effort, which makes attacks expensive.
- Protocol riskMod 24 →
- The risk that a smart contract has a bug that can be exploited, causing loss of user funds.
- Public keyMod 04 →
- The publicly shareable counterpart of a private key, used to derive your wallet address. Anyone can send funds to it; only the private key can move them out.
R.
- Real yieldMod 12 →
- Yield paid from genuine economic activity (lending fees, trading fees, transaction fees, real-world asset returns) rather than from inflation or new deposits.
- Real-World Assets (RWAs)Mod 25 →
- Off-chain assets (Treasuries, private credit, real estate, commodities, equities) that have been tokenized for on-chain representation.
- Risk assetMod 26 →
- An asset whose value tends to rise when investors are willing to take risk and fall when they're not. Crypto, tech stocks, junk bonds.
- RollupMod 08 →
- A type of L2 that batches transactions off-chain and posts a summary or proof back to the L1. Two main types: optimistic and zero-knowledge.
- Rug pullMod 18 →
- A scam where the team behind a protocol disappears with deposits, often after artificially pumping the token's price.
S.
- Security (legal)Mod 24 →
- An investment instrument that falls under SEC jurisdiction in the US, including stocks, bonds, and certain tokens.
- Seed phraseMod 04 →
- A list of 12 or 24 random words that encodes a wallet's private key in a human-readable form. Used to recover or import a wallet on any compatible device.
- Self-custodyMod 04 →
- A wallet where you alone hold the private keys.
- Signal vs noiseMod 28 →
- Signal is information that changes your understanding or decisions. Noise is information that feels significant but doesn't change anything actionable.
- SlashingMod 12 →
- The protocol-enforced penalty (loss of staked tokens) for validator misbehavior.
- SlippageMod 17 →
- The difference between the expected price of a trade and the actual price received, caused by the size of the trade relative to pool depth.
- Smart contractMod 06 →
- A program deployed to a blockchain that executes deterministically when called. The code is the contract; there is no human in the loop.
- StablecoinMod 09 →
- A cryptocurrency designed to hold a stable value, usually pegged to the US dollar.
- StakingMod 12 →
- Locking up tokens as collateral to participate in proof-of-stake validation, in exchange for rewards.
T.
- ThesisMod 29 →
- A coherent set of beliefs about how a market or sector works, what it's for, and what's likely to happen over a given time horizon. Distinct from a position.
- TokenMod 13 →
- Any asset other than a coin that exists on a blockchain. Created by deploying a smart contract.
- Token emissionsMod 18 →
- The newly issued tokens a protocol pays out to incentivize usage. Often dilutes existing holders.
- TokenizationMod 25 →
- The process of representing ownership of an asset as a blockchain token.
- TokenomicsMod 22 →
- The economic design of a token. Includes supply, distribution, vesting, utility, emissions, and revenue accrual.
- TransactionMod 05 →
- A signed instruction broadcast to a blockchain network, specifying what should happen (transfer, contract interaction, etc.).
- Transparency layerMod 30 →
- The infrastructure that makes capital flows, asset holdings, and performance attestations verifiable in real time rather than after audit cycles.
- TVL (Total Value Locked)Mod 15 →
- The total dollar value of assets deposited into a DeFi protocol or across the DeFi ecosystem. The most-used headline metric for DeFi.
U.
- Unlock cliffMod 22 →
- A specific date when a previously-locked allocation becomes available to sell. Major unlock cliffs often coincide with price weakness.
- USDCMod 09 →
- Circle's fiat-backed stablecoin. Most institutionally trusted in the US market.
- USDTMod 09 →
- Tether's fiat-backed stablecoin. Largest by global volume, historically less transparent.
- Utilization curveMod 16 →
- The algorithmic formula that sets interest rates based on the ratio of borrowed to total deposited in a pool. Higher utilization = higher rates.
V.
W.
- Wrapped assetMod 19 →
- A token on one chain representing a claim on an asset locked on another chain. (wETH on Solana, wBTC on Ethereum.)
Y.
- Yield farmingMod 18 →
- Moving capital between protocols to chase the highest available yield, often capturing token-emission rewards.