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Glossary

Address​

An address (or wallet address) is a unique alphanumeric character string that points to a virtual location of a particular wallet on the blockchain network, where the cryptocurrency can be sent, often being represented as a hashed version of a public key.

Blockchain​

A digital decentralized ledger (also called distributed ledger) that consists of data blocks that are used to store information related to transactions or messages that are being sent in the network.

Blockchain protocol​

The procedures and communication rules that govern and operate a blockchain network.

Censorship-resistance​

This term refers to the user property rights in a cryptocurrency network and states that any user can make transactions on the network according to the rules set by the protocol, preventing any entity from altering transactions on it.

Cold Wallet​

Cold wallet, known also as a "hardware wallet" is a hardware device that stores the user's address and private key offline. Since it is not connected to the Internet, it cannot be compromised.

Cryptocurrency​

A digital form of value that is secured by cryptography protocols to work as a medium of exchange within a peer-to-peer (P2P) economic system.

Cryptography​

The scientific study and practice of using mathematical theories, numerical hypotheses and computation in order to encrypt and decrypt information.

Custody​

Custody (or a custodial service) means holding of assets on behalf of a client/user. In crypto, it refers to when a third party holds the private keys to a user’s funds and approves the user's transactions.

Custodial Wallet​

A wallet that is custodied by a centralized entity like an exchange that holds the private keys.

DApp​

Dapp (Decentralized Applications), is an app in decentralized networks operating through smart contracts, automatically executing transactions when specific conditions are met.

DeFi​

DeFi (Decentralized finance) is a collective term for all finance-based Dapps created on public blockchains.

Digital asset​

A term for any valuable asset that exists in a digital form and can be sent over the internet.

Digital Signature​

An identifier code that derives from encrypting a public key for verification of message or a transaction

DKG (Distributed Key Generation)​

Distributed Key Generation (DKG), also known as MPC Key Shares Generation, is an MPC protocol for a complex cryptographic process which creates several independent encrypted key shares for different parties and/or devices. Through DKG each single party is prevented from having a private key, removing the risks of private keys being stolen or compromised.

Encryption​

A cryptographic process of turning comprehensible information into encoded indistinguishable information. This is done for security reasons related to privacy safety and unauthorized access to the data.

GameFi​

GameFi (Game Finance) is an emerging sector of Web3 that integrates gaming services with blockchain features such as tokens, NFTs, smart contracts and DeFi tools to form a new type of gaming experience where users can own, earn and monetize their digital assets within a game.

Gas​

A pricing mechanism in a blockchain protocol to calculate the costs of smart contracts operations and transaction fees.

Hot Wallet​

Hot wallet (or a software wallet) is a software for a desktop, a mobile app or a web browser extension that is keeping a private key and directly connected to the Internet. Hot wallets are considered to have lower security than cold storage systems or cold wallets.

KYC (Know Your Customer)​

A procedure in the finance industry for identification and verification of customers to comply with KYC / AML regulations. Bitizen Wallet does not require KYC verification for its users.

Metaverse​

A virtual digital universe built on networks, virtual reality, augmented reality, and infrastructure protocols focusing on social connection. Blockchain technology can greatly improve cyberspace by creating transparent, immutable and censorship-resistant economic relationships between the users.

Mixed-Custodial Wallet​

A type of wallet which is a mix between Custodial and Non-Custodial. It allows the user to personally hold and manage their private keys or key shares, and also provides a backup /recovery method designed by the wallet provider.

MPC (Multi-Party Computation)​

MPC (Multi-Party Computation) is a cryptographic technology through which all parties involved perform complex joint computations in order to complete a task, while their data remains private and secure, and is not shared with the rest of the parties.

M of N​

The number of parties that must provide their signatures (M) out of the total number of parties (N) in order to complete a signature for a transaction. A common M of N value is "2 of 3" meaning that any two of the three parties can jointly co-sign a transaction.

Multi-signature (Multi-Sig)​

A blockchain technology implemented in a smart contract that enables several parties to use their private keys to authorize a transaction. M of n signing parties must reach a consensus, use their private keys and pay gas fees to sign a transaction. As more parties are required to sign a transaction, the probability of the intervention or unauthorized transaction is lower, which is considered to add an extra layer of security.

NFT (Non-fungible Token)​

Non-fungible token or NFT is a cryptographic digital token created with a unique identifier code that confirms that the token is distinctive and unrepeated in the blockchain.

Non-Custodial wallet​

A type of wallet where users can personally and independently manage their funds. Non-custodial wallets most often don't have any backup/emergency/recovery service or support from the wallet provider.

Private Key​

A cryptographic numerical code similar to a password. In ordinary, base-ten notation, a private key would be hundreds of digits long; for simplicity private keys are expressed as an alphanumeric text string. Private keys allow users to generate receiving addresses, encrypt and decrypt messages or a transaction, and to sign transactions.

Security Audit​

A systematic analysis to evaluate how safe a system, smart contract, or blockchain is against hacker attacks or technical failures.

Seed Phrase​

A seed phrase or mnemonic seed is a backup/restore mechanism in the form of 12 or 24 words that can restore access to all private keys in a wallet

SDK (Software Development Kit)​

A technical guide that provides all the necessary tools for a developer to create or integrate software on a specific platform.

SocialFi​

SocialFi (Social Finance) is an emerging sector of Web3 that integrates social media and social networks with blockchain features such as tokens, NFTs, smart contracts and facilitates communication, work, or entertainment on platforms where users can create, own, and manage their content and monetize it with digital assets.

Signature​

A mathematical proof which shows that a private key (or key shares) have signed a transaction. A single transaction can have from one or multiple signatures depending on the wallet's parameters and authorization method. The signature prevents any further alterations on the transaction.

Smart contract​

A self-executing algorithm setting the terms of a transaction between the parties.

Social Login​

A logging-in procedure which allows the user to apply their login information for various social networks and online platforms.

Social Recovery​

A backup and recovery mechanism that allows a user to restore access and login on a platform with authorization approved by other users.

TSS (Threshold Signature Scheme)​

Threshold Signature Scheme (TSS) is an MPC-based cryptographic digital signature protocol used to authorize transactions. It determines the minimum number of parties (M of N) that are required to jointly compute a transaction signature.

Web 1.0​

An initial form of the Internet, when data was primarily read-only pages connected with hyperlinks, also known as 'read-only' web.

Web 2.0​

The current stage of the Internet, has a concept of “Web as a platform”, where users can interact with online services. At Web2.0 users are mostly consumers on platforms for user-created content such as forums, blogs, social media and networking services, and some customer-oriented business extensions such as online media, online stores, gaming services and so on, in exchange for control of users' personal data.

Web3​

Web3 is a concept of Internet protocols built on top of decentralized and distributed systems. Examples of Web3 technologies include blockchain networks, cryptocurrencies, NFTs and smart contracts. In Web3, users claim ownership and monetization of their own data and can interact with other users via decentralized peer-to-peer networks with greater censorship resistance and privacy protections for users.

UI (User Interface)​

A software or web page layout visible to the users.

Wallet​

In blockchain, a wallet is the API that allows users to store and manage their digital assets. Authorization is done depending on the type of wallet and method of signing used - e.g. MPC, Asymmetric encryption, Multisig. etc.