Cryptocurrency Glossary

A protocol built on top of a base blockchain (Layer 1) that improves scalability or functionality. Layer 2 systems ofte…

A Layer 2 design that executes transactions off-chain and posts compressed data or proofs to a base chain. Rollups aim …

Techniques to increase throughput, reduce latency, or lower costs while maintaining security. Scaling approaches includ…

A scaling technique that splits state or transaction processing across multiple shards, allowing parallelism. Sharding …

A separate blockchain that interoperates with a main chain, often via bridges. Sidechains can have different rules and …

A mechanism where participants transact off-chain and only settle final results on-chain. Channels can reduce fees and …