CryptoGlossary

What is it?
Social Wallet is a cryptocurrency wallet that integrates recovery and management mechanisms based on trust in the user's social circle or on conventional Web2 authentication methods (e.g., Google, Facebook, email).
Simply put, this is a wallet designed to eliminate the biggest barrier for newcomers: the fear of losing the seed phrase.

What is it?
Autonomous Decentralized Organization (ADO) is an evolutionary form of DAO, where the main rules and operational management, funding, and development processes are irreversible and fully automated at the smart contract level.
Simply put, it's a DAO that has much less or no need for human intervention to perform its core functions.

What is it?
Slashing is a security mechanism built into blockchains with Proof-of-Stake (PoS) consensus, which involves a penalty (confiscation) of part or all of the validator's stake (staked tokens) for dishonest or malicious behavior.
Simply put, this is the strictest form of punishment that ensures validators act honestly and in the interest of the network.

What is this?
ZK-EVM (Zero-Knowledge Ethereum Virtual Machine) is a type of Layer 2 Rollup solution that uses advanced cryptography known as Zero-Knowledge Proofs (ZK) to scale Ethereum.
Simply put, it is a virtual machine that can execute Ethereum smart contracts and generate a cryptographic proof that all transactions were executed correctly, without revealing the details of these transactions.

What is it?
Dynamic NFTs (dNFTs) are non-fungible tokens whose metadata (characteristics, images, or properties) can change based on external conditions or actions of the owner.
Simply put, unlike classic static NFTs (where the image and description remain unchanged after creation), dNFTs are living digital assets that can evolve.

What is it?
Data Availability (DA) is the guarantee that all data necessary for verifying transactions that occurred on another layer (for example, on Rollup Layer 2) has indeed been published and is available for download and verification by any network participant.
Simply put, it is the assurance that no one can "hide" transaction data, which would allow them to carry out a fraudulent operation that no one would be able to detect.

What is it?
Post-Quantum Cryptography (PQC) is a field of cryptography that develops new algorithms and encryption methods that will be resistant to attacks carried out by powerful quantum computers.
Simply put, this is the technology of the future that is supposed to protect blockchain, digital signatures, and all modern cryptography from the threat posed by quantum computing.

What is this?
MEV (Maximal Extractable Value), or Maximum Extractable Value, is a measure of profit that a validator (or miner in the past) can obtain by manipulating the sequence of transactions (the block) that they create.
Simply put, it is hidden value that can be "extracted" from a block, not only through standard gas fees but also through arbitrage, liquidations, or other profitable operations that the validator sees in the mempool (transaction queue).

What is it?
Account Abstraction (AA) is a concept that allows for the removal of the distinction between the two main types of wallets (accounts) in the blockchain, especially in Ethereum, and significantly enhances their functionality.
Simply put, AA transforms your wallet into a "smart" smart contract that can have its own built-in logic and rules. This makes using crypto wallets as simple and flexible as using a regular bank account or mobile app.

💡 What is this?
Decentralized Compute — is an architectural approach that uses a network of distributed, independent nodes 🧠 to perform computational tasks.
In simpler terms, instead of relying on centralized "giants" (like Amazon Web Services, Google Cloud, or Microsoft Azure) for data processing, computations, or training AI models, this function is delegated to thousands of individual computers 💻 around the world.

💡 What is this?
Blockchain Modularity is an architectural approach 🧩, where blockchain functions are divided into separate, specialized levels or modules.
Unlike "monolithic" blockchains (such as early Ethereum or Bitcoin), which try to perform all tasks (execution, computation, consensus, and data availability) on their own, a modular blockchain delegates these functions to various task-optimized chains.

Algo-trading, also known as algorithmic trading, is an automated trading system where buy and sell orders are placed according to the rules of a computer program or algorithm. The algorithm may be configured to consider price, but it may also look at other factors such as timing and volume. As soon as the market conditions fulfill the criteria of the algorithm, the alga-trading software will place a buy or sell order accordingly. 

A simple example could be the following:

Buy 10 BTC when the ten-day moving average exceeds the 30-day moving average; 

Sell 10 BTC when the ten-day moving average falls below the 30-day moving average.

However, in reality, algo-trading involves many more complex rules and conditions to build a formula for profitable trading. 

There are many reasons why traders use algo-trading — it offers the opportunity for faster and more frequent trading across an entire portfolio that wouldn’t be possible with manual orders. Because orders are instant, algo-trading secures the best prices and reduces the risk of slippage. Algorithmic trading takes the human element out of the equation, reducing the risk of mistakes or emotional reactions to market conditions. 

On a macro level, algo-trading creates more liquid markets thanks to a higher order frequency. It also makes markets more predictable because algorithms are programmed to respond to emerging conditions. 

Although algo-trading is used across many markets, it offers even more benefits in the 24/7 cryptocurrency markets, where traders risk missing opportunities or incurring loss risks while they’re asleep. Therefore, even those who prefer manual trading can use algo-trading as a failsafe for when they’re away from their screens. 

Algo-trading can be suitable for a wide range of trading strategies. Arbitrageurs who rely on incremental price differences can use an algorithm to ensure order efficiency. Short-term traders and scalpers who aim to capture profits from smaller market movements use algo-trading to ensure they can execute at a high enough frequency to be profitable, and eliminate the risk of chasing losses. Market makers also use algo-trading to ensure that there’s sufficient depth of liquidity in the market. 

Traders also use algo-trading for backtesting a particular strategy in order to check if it’s able to return a consistent profit. 

There are some risks with algo-trading, particularly around issues such as system downtime or network outages. Algorithms are also programmed by humans, so they can be subject to human errors, meaning that backtesting is critical to ensure the algorithm behaves as expected. 

Finally, an algorithm will always do exactly what it’s programmed to do and cannot account for unanticipated “black swan” events that may call for a more human intervention and mitigating actions. 

Author: 

Alon Rajic 

#cryptoglossary

What is SSI?
Self-Sovereign Identity (SSI) is a concept where an individual has full control and ownership over their digital identity data and personal information. Unlike traditional systems (such as government registries or social networks), in SSI, you decide who, when, and to what of your data will have access.