Baskin Logic Crypto Academy

Glossary · Intermediate

Intermediate crypto glossary: 40 terms

By Joshua Baskin, founder · Reviewed · Sources

40 intermediate terms in one line each. Tap a term in the timed glossary match to make them stick.

Allowance
How much of a token an app is approved to move from your wallet.
Bridge
A system that moves assets between two blockchains, often by locking and minting.
CBDC
Central bank digital currency, such as the digital rupee. Not a cryptocurrency.
Change output
The part of a Bitcoin transaction that returns leftover coins to you.
Cold storage
Keeping keys on a device that never touches the internet.
Consensus
How a network’s computers agree on the next block.
Custodial
Someone else holds the keys for you.
Derivation path
The rule a wallet uses to generate addresses from a seed.
Destination tag
An extra number some networks (like XRP) need to credit a shared exchange address.
EIP-55 checksum
Mixed upper and lower case in an Ethereum address that catches typos.
Finality
The point where a transaction is practically irreversible.
Gas
The unit for computation on Ethereum. Fee = gas used × gas price.
Gwei
One billionth of an ETH, used to quote gas prices.
Hot wallet
A wallet on an internet-connected device.
KYC
Know your customer: identity checks by regulated services.
Layer 2
A network on top of a base chain for cheaper, faster transactions.
Lightning
Bitcoin’s payment-channel layer 2.
MiCA
The EU’s Markets in Crypto-Assets Regulation.
Multisig
A wallet that needs several keys to sign.
Nonce
A counter: in mining, the number changed to find a valid hash; in Ethereum, a per-account transaction count.
Optimistic rollup
An L2 that assumes validity and allows challenges.
Passphrase (25th word)
An extra secret added to a seed phrase that creates a different wallet.
Permit
A signed message that grants an approval without a separate transaction.
Proof of reserves
An exchange’s evidence that it holds customer assets.
Prompt injection
Hidden instructions that hijack an AI agent.
Rollup
An L2 that batches transactions and posts data to L1.
Sats
Satoshis: one hundred-millionth of a bitcoin.
Sequencer
The operator that orders transactions on many L2s.
Session key
A limited, temporary key for an app or agent.
Shor’s algorithm
A quantum algorithm that could break elliptic-curve signatures.
Slashing
Penalty that destroys staked coins for validator misbehaviour.
Smart account
A wallet controlled by code, allowing limits and recovery rules.
SPL token
Solana’s token standard.
TDS
Tax deducted at source; India applies 1% on many crypto transfers.
Travel rule
Rule that providers share sender and receiver data on transfers.
UTXO
Unspent transaction output: Bitcoin’s way of tracking coins.
vByte
Virtual byte, the unit for Bitcoin transaction size in fee rates.
VDA
Virtual digital asset: India’s legal term for crypto.
Watch-only wallet
A wallet that shows balances without holding keys.
ZK proof
A proof that something is true without revealing the details.

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Common questions

What is the difference between gas and gwei?

Gas measures work; gwei is the price unit per gas.

Sources

  1. ethereum.org glossary
  2. Bitcoin developer glossary

Sources checked October 23, 2026. Rules change; check the official source before acting.

Education only. Not investment, tax or legal advice. We do not pick coins.