Layer 2
A secondary protocol built on top of a base blockchain (Layer 1) that speeds up transactions and lowers fees by moving some computation off the main network.
See also
Liquidation
The forced closure of a leveraged trading position by the exchange when losses approach the size of the deposited collateral. It results in losing part or all of the funds invested.
Rug pull
A scam in which a project's creators suddenly withdraw all liquidity or dump their tokens, crashing the price and leaving investors with worthless holdings.
P2P
Peer-to-peer — a direct cryptocurrency exchange between two users, often for fiat money, without a centralized intermediary handling the trade itself.
Bridge
A protocol that allows assets and data to move between different blockchains that are not natively compatible with one another.
DAO
Decentralized Autonomous Organization — a community that makes decisions through token-holder voting, with its rules encoded in smart contracts.
Nonce
A number used once, which miners search for when mining a block in Proof-of-Work networks; also a counter that prevents a transaction from being replayed on an account.