PAW Documentation



A compilation of terms and definitions related to cryptocurrency and blockchain technology.

An altcoin refers to any cryptocurrency other than Bitcoin. Each altcoin has its own set of rules, properties, and specific use cases. They may introduce new technologies or be forks of existing cryptocurrencies.

All-time high / All-time low
This term refers to the highest or lowest price ever reached by a given asset.

Bull market
A bull market describes a period when market prices are generally trending upward and public perception is positive.

Bear market
A bear market is the opposite of a bull market, where outlooks are negative as market prices trend downward.

A blockchain is a decentralized method of storing data, where information is duplicated and distributed across a network of computer systems. Operated by a community of miners or validators, blockchains function without a centralized intermediary.

A blockchain is composed of a growing list of transactions, formatted into blocks. Each block contains a cryptographic reference to the previous one, making it impossible to alter the blockchain's history.

Block reward
When miners or validators create new blocks, they receive a block reward in the form of newly minted cryptocurrency. This incentivizes participants to help maintain the blockchain.

Also known as an "epoch," is a predetermined period of time during which blocks are created and added to the blockchain. They can happen four times a day or four hundred times a day - there is no minimum or maximum times this can happen. At these checkpoints, rewards are given out to the Validators and Delegators when a block is signed. If a block is missed by the Validator, then the reward isn't distributed.

In cryptocurrencies, consensus refers to the method by which blockchain participants agree on what should be included in the blockchain. The most prominent consensus mechanisms are proof-of-work and proof-of-stake.

Cooldown Period
Also known as "Unbonding," is referred to the period one must wait from the time they un-stake with a Validator to the time their assets appear in their wallet. This length of time will be predetermined by the development team. There are both detriments and benefits to short Cooldown periods and long Cooldown periods.

Cryptography is the science of keeping information secure. It is used to secure blockchains and cryptocurrencies through algorithms like SHA-256 for proof-of-work and private-key/public-key cryptography for validating transfers.

dApps, or decentralized applications, are programs that run on blockchain networks using smart contracts to provide trustless tools and services. Ethereum is the most widely adopted platform for dApps.

A Decentralized Autonomous Organization, or DAO, is a business entity represented by transparent rules encoded in smart contracts. It aims to reduce centralization, typically allowing the community to govern its future through voting.

Decentralized technologies use distributed systems to provide increased security and redundancy while reducing reliance on governing bodies and centralized intermediaries.

Decentralized Finance, or DeFi, is an ecosystem of applications and services that leverage blockchain technology to provide decentralized financial services, such as borrowing, lending, and earning interest on cryptocurrencies.

A delegator in a crypto network is an individual who stakes their tokens by assigning them to a validator, thereby participating in the network's consensus process indirectly. By delegating their tokens/coins, they earn a share of the rewards generated by the validator for securing and validating transactions on the network.

"Do Your Own Research." This warning from cryptocurrency influencers reminds investors that due diligence is crucial, as media outlets and influencers may have different incentives.

An ERC-20 token is a widely used crypto-token standard on the Ethereum network, enabling developers to create digital currencies compatible with existing infrastructure.

The ERC-721 standard on the Ethereum network is used for Non-Fungible Tokens (NFTs), which are unique and cannot be counterfeited. They are used for digital collectibles, gaming items, and tokenizing real-world unique items.

The Ethereum Virtual Machine (EVM) is a global blockchain-based computer that provides a runtime environment for creating decentralized applications on the Ethereum network.

Fiat refers to traditional money, such as the US dollar and the euro. Using fiat currencies in blockchain requires trusting a centralized entity to custody your funds.

A fork occurs when a blockchain undergoes a protocol change, creating two parallel chains. Hard forks result in new currencies and break backward compatibility, while soft forks update rules and require support from the majority of participants.

"Fear of missing out." In crypto markets, it refers to the anxiety of not owning tokens that are experiencing significant upward price movements.

"Fear, uncertainty, and doubt." This refers to information that creates a pessimistic market outlook.

Fundamental analysis
This method evaluates the value and future performance of an asset by considering factors like technology, team, and token distribution.

A fee for performing operations on a blockchain.

A Gwei is a small unit of Ether, the native currency of Ethereum. One Ether equals 1,000,000,000 Gwei.

The reduction of the Bitcoin block reward by 50%. It occurs approximately every four years, with the current reward at 6.25 BTC per block.

Hash rate
A measure of processing power in the Bitcoin network, indicating how many calculations are performed per second. A higher hash rate suggests a more secure network.

A misspelling of "hold," defined as Hold On for Dear Life, referring to the practice of keeping cryptocurrencies instead of selling, often against market trends.

"Know Your Customer." The process by which financial service providers gather and verify customer information, enforced by governing bodies.

A ledger is a database of transactions. In cryptocurrencies, it refers to the transaction history stored on the blockchain.

The ease with which a cryptocurrency can be bought or sold. It also refers to the amount of cryptocurrencies available for trading in a liquidity pool.

Limit order
An order to buy or sell an asset at a specified price or better. A buy order executes at the target price or lower, and a sell order executes at the target price or higher.

Margin trading
A trading method that involves using borrowed funds, allowing traders to leverage positions for greater potential profits and higher risks.

Market cap
Market capitalization. The total value of an asset, calculated by multiplying its price by its circulating supply. It measures a project's success.

The process of using computing resources to create new blocks on a blockchain, earning rewards in return.

Mining pool
A group of miners who combine their computing power to increase their chances of earning mining rewards.

Non-Fungible Tokens are unique digital assets on the Ethereum blockchain, used for digital collectibles, artworks, and gaming items.

Network fees
Fees required to process transactions on the Bitcoin or Ethereum network, incentivizing participants to maintain the network.

A participant in a blockchain network that stores data and contributes to the consensus process. Miners act as full nodes, but anyone can operate a node.

A random number used in proof-of-work blockchains like Bitcoin to solve cryptographic puzzles, allowing miners to add new blocks and earn rewards.

Paper wallet
A type of cryptocurrency wallet stored on paper to reduce private key exposure. While considered "cold storage," they are now seen as less secure due to potential centralization and GUI vulnerabilities.

PAW Chain is upgrading its Layer 1 infrastructure with PawJS, a new scripting language designed to be more user-friendly and efficient than Solidity. Set to launch in phase 3, PawJS will streamline smart contract and dApp development with intuitive syntax, enhanced readability, and robust features. This upgrade aims to boost developer participation, improve network performance, and empower the PAW Chain community, positioning the network for future scalability and innovation.

Private key
A password-like string that identifies the owner of a cryptocurrency wallet, allowing access to funds.

PoA is a consensus mechanism used in blockchain networks where a limited number of pre-approved nodes, known as validators, are responsible for validating transactions and creating new blocks. Validators are chosen based on their reputation and identity, ensuring a high level of trust and security. This method reduces the risk of malicious activity and allows for faster transaction processing compared to other mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).

A consensus mechanism where participants stake cryptocurrency to validate transactions and create new blocks, earning rewards.

A consensus mechanism using computing resources to solve cryptographic puzzles, allowing miners to create new blocks and earn rewards.

Public key
A long string of characters generated alongside a private key, used to produce a wallet address.

Sats or Satoshis
The smallest unit of Bitcoin, equal to 0.00000001 BTC, named after Bitcoin's creator, Satoshi Nakamoto.

Short for "segregated witness," an update to the Bitcoin network in 2017 that increased transaction capacity by removing signature data from transactions.

A one-way cryptographic hashing algorithm used in proof-of-work mining to verify transactions.

When a certain Validator behaves poorly or deliberately, the operator (i.e., Validator) and each of its Delegators are penalized by a condition known as Slashing. Both the funds of the Validator and its Delegators are subject to penalties based on the amount staked. If a Validator gets slashed multiple times, eventually they get removed from the blockchain.

Smart contracts
Programs stored and operated on blockchain networks, enabling decentralized applications to provide transparent financial tools and services.

A programming language used to write smart contracts, created by Ethereum co-founder Gavin Wood.

TA or technical analysis
The study of price charts and market indicators to determine market trends and predict future movements.

A testing environment for smart contract platforms like Ethereum, allowing developers to test contracts with valueless cryptocurrencies.

Digital assets issued on a blockchain via smart contracts. Many top cryptocurrencies are Ethereum tokens.

Unspent transaction outputs, representing units of cryptocurrency left over from transactions. They make up a wallet's available balance.

Participants in proof-of-stake blockchains who verify transactions, maintain network integrity, and earn rewards.

The tendency of an asset's price to vary, often seen in young markets like cryptocurrencies.

Tools used by crypto holders to control private keys and interface with the blockchain. Wallets can be software or hardware-based, custodial or non-custodial.

A term for major players in the cryptocurrency markets, such as institutional investors, hedge funds, or wealthy individuals.

White paper
Documents proposing new technologies, outlining details of their implementation. White papers help users and investors understand a project, its use case, and potential.