Glossary

Definition of Key Terms

Wallet Address

An alphanumeric string representing a destination for cryptocurrency payments. Each wallet has a unique address that can be shared to receive funds.

Public Address

A cryptographic hash of a public key, used as an address to which cryptocurrencies can be sent. It is the equivalent of an email address for digital assets.

Airdrop

The distribution of digital assets to multiple wallet addresses, often for free, to promote the awareness of a new cryptocurrency.

Token Allocation

The distribution plan of the total token supply among different stakeholders, including developers, investors, and the community.

AML (Anti-Money Laundering)

A set of regulations, procedures, and laws aimed at preventing criminals from disguising illegally obtained funds as legitimate income.

Smart Contract Audit

The process of reviewing the code of a smart contract to ensure it is secure, reliable, and functions as intended, identifying potential vulnerabilities to prevent future attacks or failures.

BANGK Coin

The native digital currency of the BANGK platform, used for transactions, rewards, and governance participation within the platform.

Vesting Schedule

A predetermined timeline outlining when and how much of the vested tokens will be released to stakeholders, typically to prevent mass selling on the market and encourage loyalty.

Market Capitalization

The total value of all mined or issued coins or tokens. It is calculated by multiplying the current price of a single coin or by its total supply.

CeFi (Centralized Finance)

Financial services provided by a centralized organization or institution, as opposed to decentralized finance (DeFi).

CEX (Centralized Exchange)

A cryptocurrency trading platform operated by a centralized authority.

Public Key / Private Key

A pair of cryptographic keys where the public key can be shared with others to encrypt messages or receive cryptocurrencies, and the private key is kept secret by the owner to decrypt messages or access the cryptocurrencies held.

Cold Wallet / Hot Wallet

Cold wallets are cryptocurrency wallets not connected to the Internet, offering additional security for digital assets. Hot wallets are connected to the Internet, making them more convenient for daily transactions but also more vulnerable to attacks.

DEX (Decentralized Exchange)

A decentralized exchange based on blockchain technology that allows users to trade cryptocurrencies directly with one another without the need for central authority.

Fiat Currency

Government-issued currency that is not backed by a physical commodity like gold or silver, but rather by the trust and authority of the issuing government.

Decentralized Finance (DeFi)

An emerging financial technology based on secure distributed ledgers like those used by cryptocurrencies, aiming to eliminate intermediaries in financial transactions.

Sustainable Finance

Financial activities and investments that consider environmental, social, and governance (ESG) considerations, aiming for long-term prosperity while minimizing impact on the environment and society.

Liquidity Provider

An individual or entity that funds a liquidity pool with their assets to facilitate trading on the platform and earn passive income from transaction fees, usually based on their share of the pool.

Governance

The processes of interaction and decision-making among stakeholders or participants of an organization or platform, especially in decentralized networks where governance determines the system’s direction and changes.

Hard Cap

The maximum amount of funds a cryptocurrency project intends to raise during its initial coin offering (ICO) or other fundraising mechanisms.

ICO (Initial Coin Offering)

A fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin, either, or fiat currency. It is like an initial public offering (IPO) but for cryptocurrency ventures.

KYC (Know Your Customer)

A process used by businesses, especially in the financial sector, to verify the identity of their customers to prevent fraud, money laundering, and terrorism financing.

Liquidity

The ease with which an asset or security can be converted into cash without significantly affecting its market price. In cryptocurrency, it refers to the ability to buy or sell large amounts of tokens or coins without major price fluctuations.

Market Maker An individual or institution that actively buys and sells securities, commodities, or currencies to provide liquidity to the markets, profiting from the difference between bid and ask prices.

Circulating Supply

The total amount of cryptocurrency currently available on the market and eligible for trading.

Off-chain / On-chain

Off-chain refers to transactions or processes that take place outside the blockchain, while on-chain refers to transactions and processes recorded on the blockchain, making them transparent and immutable.

Peer-to-Peer (P2P)

A decentralized communication model in which each party has equal capabilities and can initiate a communication session. In cryptocurrency, it refers to the direct exchange of digital assets without the need for an intermediary.

Liquidity Pool

A collection of funds locked in a smart contract used to facilitate decentralized trading, lending, and various other functions. Liquidity pools are the backbone of many decentralized exchanges (DEXs).

PoH – Proof of History

A consensus mechanism that verifies the sequence and passage of time between events, used to encode time in a trustless way on a ledger.

PoS – Proof of Stake

A consensus mechanism for blockchains that allows for energy-efficient transaction validation and security protocols compared to Proof of Work (PoW). It involves validators staking their tokens as collateral to confirm transactions.

Security Token

A type of cryptographic token that represents ownership or investment interest in an external asset or business, offering holders rights such as dividends, profit sharing, or participation in project growth.

Smart Contract

Self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms once predefined conditions are met.

Soft Cap

The minimum amount of funds a cryptocurrency project aims to raise during an ICO or crowdfunding campaign. If the soft cap is not reached, the funds may be returned to investors.

Solana (blockchain)

A high-performance blockchain supporting decentralized applications and cryptocurrencies. It is known for its high throughput and low transaction costs, using a unique consensus mechanism called Proof of History (PoH) alongside Proof of Stake (PoS) to achieve scalability and speed.

Staking

Participating in a Proof-of-Stake (PoS) blockchain network by holding and locking a certain amount of cryptocurrency in a wallet to support network operations, in return for rewards or interest.

Supply

The total number of coins or tokens that currently exist, either in circulation or locked according to the rules of the protocol.

Token

A unit of digital value issued by a project, representing various rights within the ecosystem, such as network access, payment, or participation rights.

Governance Token

A token that grants its holders the right to participate in decision-making processes on a blockchain platform, often related to protocol updates, rules, or configurations.

Tokenomics

The economic model of a cryptocurrency, detailing the token’s utility, supply, distribution strategy, and how it incentivizes behavior within the ecosystem.

Utility Token

A type of cryptocurrency that serves a specific purpose within its native ecosystem, granting holders access to services, products, or benefits offered by the project.

Public Sale

The stage of an ICO or token sale when the cryptocurrency project is open to public investment, typically following private sales or presales.

Vesting

A process through which allocated tokens or assets are locked in a certain period and gradually released to their holders, often used to ensure long-term commitment.

Wallet

A digital tool that allows users to securely store, send, and receive cryptocurrencies. Wallets can be software-based (online, mobile, or desktop) or hardware-based for enhanced security.

Whitepaper

A document published by a cryptocurrency project outlining its technology, methodology, proposed product or service. It includes technical details, project philosophy, team background, and business model aiming to inform and attract investors and users.