Crypto Glossary by Baker McKenzie

No.

51% attack
A blockchain platform secured using a proof-of-work consensus protocol is generally 
protected from attack provided that honest nodes collectively control more mining power 
than any cooperating group of attacker nodes. A 51% attack is a situation where over half 
of the nodes on a blockchain network are controlled by a single malicious miner or a group 
of miners and such bad actors manipulate the blockchain to their own end (e.g., censoring 
transactions, including allowing double-spending. 51% attacks cannot steal coins as such 
because it is not possible to fake the signatures that secure transactions).
Aa

Address
An address is an alphanumeric character string, which can also be represented as a 
scannable QR code, that is used to send and receive transactions on a blockchain network. 
To send cryptocurrency to another person or platform, you will need their address (e.g., a 
cryptocurrency wallet has an address, as does an account on a cryptocurrency exchange).
Airdrop
A distribution of tokens free of charge to the cryptocurrency wallets of certain users, with 
or without advance notice. Typically carried out to reward loyal users, or create a buzz about 
a particular token.
Altcoin
A term used to describe cryptocurrency alternatives to Bitcoin such as Litecoin and Ether. 
Altcoins typically arise from forks of the Bitcoin software code rather than the Bitcoin 
blockchain itself (sometimes changing the number of coins, using a different hashing 
algorithm or adding some other new feature), but many innovative altcoins (e.g., Ethereum, 
Monero, NEO, IOTA, and others) use completely separate computer code and blockchains 
from Bitcoin.
Asset-backed tokens
Asset-backed tokens reflect an underlying physical asset such as gold.
Asset tokens
These tokens represent assets such as a debt or equity claim on the issuer, for example, 
a share in future company earnings or future capital flows, and may be tradable 
as investments.
ASIC
An “application-specific integrated circuit” — a silicon chip dedicated to a specific purpose 
rather than general purpose use, such as performing the hash algorithm, used to secure a 
proof-of-work blockchain. ASICs are more efficient at performing those specific purpose 
tasks than general purpose chips (it is now only viable to mine Bitcoin using an ASIC).
Atomic swap
An exchange of cryptocurrencies from separate blockchains without the use of a centralized 
intermediary such as an exchange. Such swaps are typically achieved using swap-enabled 
wallets and smart contracts

Bb

Bag
A term used to refer to the holding of a significant quantity of a specific cryptocurrency 
by a person.
Bitcoin (BTC)
The first and best-known cryptocurrency created by Satoshi Nakamoto is a proof-of-work 
cryptocurrency facilitated by a blockchain. 
Bits
A sub-unit of one Bitcoin. There are 1 million bits in one Bitcoin.
BIP
A “Bitcoin Improvement Proposal” — a technical design document providing information 
to the Bitcoin community, describing new proposed features, processes or environments 
affecting the Bitcoin protocol. Suggested changes to the protocol are submitted as a BIP. 
The BIP author is responsible for soliciting feedback.
Bitcoin maximalist
A person or entity that believes only the Bitcoin cryptocurrency deserves to survive long-

term out of all cryptocurrencies on the market.
Block
Packages of data recorded on the blockchain. The block provides a lot of important 
information about the block, including its hash, the hash of the previous block, the nonce, 
timestamp, the difficulty and the block reward.
Blockspace
As block size is typically limited, there is a limit on the number of transactions that can be 
processed at a time. This creates a supply and demand market between miners, mining 
pools and users of a blockchain. The commodity of this market is often referred to as 
“blockspace,” and is often in relation to where such blockspace is in high demand and thus 
at a premium cost in gas fees (e.g., as is the case with Ethereum blockspace). 
Block explorer
An online tool that enables you to search for real-time current and historical information 
about a blockchain, including data related to blocks, transactions, addresses, hash rate 
and more.
Block height
The number of a given block, counted from the genesis block (sometimes referred to as 
“Block 0” or “Height 0”).

Crypto Glossary by Baker McKenzie