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Explore Crypto Terms & Definitions
Unspent Transaction Output (UTXO)
Abbreviation for unspent transaction output. Every bitcoin transaction originates from a UTXO, essentially balances of bitcoin capable of being spent. When spent a UTXO becomes two new separate UTXOs - one sent to the recipient address and one to the sending address containing any change that is left.
Validator
Blockchains use specific mechanisms for ensuring new transactions are valid, the role of Validators is to use the required consensus mechanism to validate new transactions, often in exchange for rewards.
Volatility
The measurement of a cryptocurrency price’s fluctuation. The more fluctuation, the more volatile.
Wallet
A means of storing cryptocurrency balance ownership. Made visible on the blockchain by its unique code, or public key, a wallet’s function is to store private keys and is available in several different forms.
Weak Hands
Used to describe the behaviour of traders who have made an emotional and/or negative decision that has led to poor performance in the markets. Can also describe someone who doesn’t have faith in a particular position in a market as opposed to Strong Hands.
Web3.0 Wallet
Wallets designed with interoperable functionality across Web3.0 products/services. A web3.0 wallet can for example run from your browser, via a Chrome Extension, and connect you to DApps or Defi Platforms with one click. Metamask is a popular Web 3.0 wallet.
Whitelist
The function of an ICO before they became the marketing tool to generate hype around a new cryptocurrency. Interested buyers were placed on a Whitelist to gain access to cheaper cryptocurrency or have the chance to buy under special early bird conditions.
Wrapped Bitcoin (wBTC)
A tokenised version of bitcoin that follows the ERC20 standard and is therefore interoperable with Ethereum services like Defi and dApps. One wrapped BTC is equivalent to one native BTC. wBTC can only be created from native BTC and supply is managed through a proof of reserve system managed by a dedicated DAO.
Yield farming
A way to earn crypto by staking or lending crypto assets in DeFi markets, usually as rewards for providing liquidity. Considered high-yield, high risk.
Utility Token
A type of crypto token that facilitates a specific function as opposed to representing an asset, like a Security Token. For example, a utility token might be issued within a blockhain-based video game to purchase in-game items or services.
Vitalik Buterin
Russian-Canadian programmer and teen prodigy best known for proposing Ethereum and running the project as one of its co-founders
VPN
Virtual Private Network offers online privacy and anonymity by creating a private network from a public internet connection.
Wallet.dat
A file usually located on a hard drive containing a wallet’s public and private keys as well as any other useful information as a backup.
Web3.0
The development of new internet based services that are driven by machine-based understanding of data. Blockchain technology is a key example of web3.0 technology as are Artificial Intelligence, Augmented and Virtual Reality. See our Crypto Frontiers article for more on Web 3.0
Whale
Individuals or entities that hold large amounts of a particular cryptocurrency - usually Bitcoin. Whales are so-called because they are large enough to ‘disturb the waters’ of the market with their transactions.
Whitepaper
Offers a thorough overview of a cryptocurrency, outlining details including an explanation on programmed purposes, technical information and its potential future to lure buyers.
Wrapped Ether (wETH)
A tokenised version of Ether that follows the ERC20 standard and is therefore interoperable with Ethereum services like Defi and dApps. One wrapped ETH is equivalent to one native ETH. wETH can only be created from native ETH and supply is managed through a proof of reserve system managed by a dedicated DAO.
51% Attack
The term given to a malicious attack on a blockchain network achieved by taking control of 51% (over half) of the mining nodes.
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