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Glossary
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- EIPAn Ethereum Improvement Proposal is an official online document that proposes changes or new features for the Ethereum network. These changes could be to the core protocol, the client APIs, or the smart contract standards, like ERCs. It assists the decentralized community in planning upgrades more effectively. Anyone can make an EIP by first reading EIP-1, which explains how to draft a proposal. After that, you can copy the official EIPs GitHub repository. They can write the proposal using the template that is already there and send it in as a Pull Request (PR) for review. The proposal needs to be clear, well-organized, and have parts like an abstract, motivation, specification, rationale, and backward compatibility. EIPs have different categories. For example, a standard track would include a core for forks or an ECR for applications. Meta would suggest process changes, while an informational EPI would suggest a change in guidelines. All EIPs start as drafts and follow lifecycle stages. EIP editors review the PR for formatting and merge it as a draft. It is then reviewed by peers and goes through community discussions. There is then a 14-day final call for feedback. Consensus is required for impactful changes. If and when approved, it moves to the final stage for implementation. So it can be considered a hard fork for the core EIP. Otherwise, the project may become stagnant, withdrawn, or require ongoing updates. It is possible to resurrect stagnant EIPs in the future.
- EMA An Exponential Moving Average (EMA) is a tool used in crypto trading that helps observe price movements and spot trends early. EMA gives more weight to recent prices than a simple moving average, which treats all prices the same. This lets the EMA react more quickly to changes in the market. How does it work? It calculates the average price of a coin or token over a chosen period of time. This interval could be 9 or 50 or even 200 days. The recent events or price fluctuations will influence the line much more than the older ones. For example, a shorter EMA of 12 to 20 days is more sensitive and great for short-term trading. A longer EMA of 50 or 200 days, on the other hand, denotes more important long-term trends. People mostly use it to find patterns. A price above the EMA would mean a bullish uptrend, while a price below the EMA would mean a bearish downtrend. You can also notice crossovers. That's when a short-term EMA crosses above a long-term EMA to form a ‘Golden Cross.’ This too is a buy signal, and the opposite, when the long-term EMA crosses below the long-term, it forms a 'Death Cross', which is a sign to sell. EMA lines often act as dynamic support or resistance levels. New traders love to check on the EMA line because it's responsive and helps filter out market noise. It's widely used on charts for Bitcoin, Ethereum, and altcoins to make smarter entry and exit decisions.
- ERC-20 ERC-20 serves as a technical standard which enables developers to create fungible tokens on the Ethereum blockchain. The term fungible indicates that all tokens of a particular type possess identical characteristics which enable their complete interchangeability. One ERC-20 token has the same value and properties as another of the same issuance. The ERC-20 standard launched in 2015 which created the foundation for various Ethereum-based tokens that emerged during that period. It gives developers a standard framework which they need to follow when creating their new tokens. The rules define methods for distributing tokens and tracking balances and allowing users to approve their token spending. The standard lets wallets and exchanges and decentralized applications work with ERC-20 tokens because they do not need to build separate systems for each project. ERC-20 tokens serve as the foundation for many popular cryptocurrencies. The standard is commonly used for stablecoins and governance tokens and utility tokens. The ERC-20 standard gained widespread acceptance during the 2017 and 2018 initial coin offering boom because it enabled startups to create new tokens without needing to develop an entire new blockchain system. ERC-20 tokens operate through smart contracts. The contracts execute their functions by controlling supply and managing transactions and authorization rights through established operational procedures. Developers can create tokens which either maintain their total supply or undergo inflationary growth according to their specific developmental objectives.
- ERC-721 ERC-721 is a technical standard used on the Ethereum blockchain to create non-fungible tokens, which people refer to as NFTs. ERC-721 tokens differ from cryptocurrencies like Ether and ERC-20 tokens because they exist as individual distinct assets. Each token possesses unique characteristics which prevent its direct exchange with other tokens through one-to-one transactions. The ERC-721 standard was introduced in 2018 and became the foundation for most early NFT projects. The standard establishes development guidelines which developers must adhere to when they create unique digital assets for Ethereum. The rules enable all wallet systems and marketplace platforms and application software to identify and handle NFTs through standardized methods. People use ERC-721 tokens to represent digital art and collectibles and gaming items and virtual real estate. Every token consists of an identifier which sets it apart from all other tokens and it includes metadata that describes its attributes, including name, image, and traits. The blockchain system records ownership information which enables anyone to check who possesses a particular token at any moment. Because ERC-721 tokens have non fungible properties, they cannot be divided into smaller portions like cryptocurrencies. The tokens transfer between wallets as complete assets. The feature enables them to function as digital assets which need distinctiveness together with proof of ownership.
- ERC-1155 ERC-1155 is a token standard on the Ethereum blockchain that allows developers to create and manage multiple types of tokens through a single smart contract.ERC-1155 allows developers to handle both fungible and non-fungible assets because it combines the functions of ERC-20 and ERC-721 into one system. The 2018 launch of ERC-1155 established a standard for enhanced operational performance and adaptability which became essential to gaming and digital asset distribution systems. Through this standard a single contract can create multiple token types which include in-game currencies and collectible items and limited edition assets without the need for separate contract deployments for each category. One key feature of ERC-1155 is batch transfers. It allows multiple token types to be transferred in a single transaction, which lowers gas fees and improves scalability compared to sending tokens individually. This functionality has made the standard especially popular in blockchain-based gaming environments, where users may hold different asset types at once. ERC-1155 tokens can represent both identical items, such as in-game coins, and unique items, such as rare collectibles. This hybrid capability distinguishes it from earlier standards that required separate systems for each asset type. Developers can also define supply limits and metadata within the same contract. The crypto news reports use ERC-1155 when they need to report on NFT platforms and gaming systems and flexible tokenized asset systems. The readers will understand Ethereum's development through the ERC-1155 standard which enables complex digital asset systems to operate more efficiently and at reduced expenses within decentralized applications.
- ETF An Exchange-Traded Fund (ETF) is a financial product that goes with the performance of a specific group of assets and is traded on a stock exchange like a normal share. One does not buy just one stock or asset, but rather buys shares in a fund that is holding the basket of investments, be it stocks, bonds, commodities, or crypto, which is the latest addition to the list. The main advantage of the ETFs is their broad market access and the ease of transaction. With a single investment, the investor gets a small piece of the whole pie consisting of different assets, thus lowering the risk associated with a single stock or asset. Moreover, ETFs are open for trading throughout the day, and their prices fluctuate as per the market demand and supply, contrary to the case of the traditional mutual funds, which are priced only once at the end of the day. In the crypto world, ETFs give investors the opportunity to come in contact with digital assets without actually owning or taking care of them. For instance, a Bitcoin ETF follows the price of Bitcoin very closely, allowing investors to get in through their regular brokerage accounts. That way there is no hassle for wallets, private keys, or self-custody. ETFs, being regulated financial products, are in this way more appealing to the institutions and the cautious investors. At the same time, they are charged with management fees and their performance may not always be perfectly aligned with that of the underlying asset.
- Ethereum Ethereum is the second main blockchain behind Bitcoin. It allows developers to build and run applications without a central authority in very different categories. Ethereum was introduced in 2015, and it was the first cryptocurrency to feature the smart contract concept, which are simply programs that automatically execute outputs based on defined inputs, or when defined conditions are met without a need to a middleman. Smart contracts are the building blocks for decentralized applications (dApps), which can actually run applications in finance, gaming, digital assets, supply chain, and many more categories. Two of the most popular dApps in DeFi are "Uniswap", a decentralized trading protocol, and "Aave", a decentralized lending protocol, which are used to process transactions without a bank or intermediary. Ether (ETH) is the primary currency on the Ethereum network that is used to process transactions, as well as power the network. In addition to processing transactions, a small fee is charged to this currency for any transactions processed on the network or for executing contracts on the network, called gas fees which also saves the network from scams attempts. In 2022, Ethereum ran a major upgrade called The Merge that transitioned from a proof-of-work, which mainly depends on mining system, to a Proof-of-Stake (PoS) system.
- EVM The Ethereum Virtual Machine, or EVM, runs smart contracts on the Ethereum blockchain. Think of it as a giant computer spread across thousands of machines worldwide that executes code exactly as written, with nobody able to stop or mess with it. When you interact with a decentralized app—swapping tokens, buying an NFT, or lending crypto—the EVM handles your transaction. Developers write smart contracts in programming languages like Solidity, and the EVM turns this code into actual actions on the blockchain. EVM creates identical results on every computer running it. Your transaction produces the same outcome whether it runs in Tokyo, London, or Mumbai. This consistency lets strangers trust the system without trusting each other. The EVM charges gas fees for every operation. Diffcult transactions (requiring more work) have more cost because they require more computing power. This cost (called gas fees) is given to validators who keep the network running. Lots of blockchains are copying the EVM's design. Binance Smart Chain, Polygon, and Avalanche all run EVM-compatible networks, letting developers move their Ethereum apps over without major rewrites. This compatibility turned the EVM into crypto's go-to operating system. The EVM changed blockchain from simple money transfers into a platform for building entire financial systems, games, and organizations that run without anyone in charge.
- Exchange An exchange is a website that allows you to buy or sell cryptocurrencies.There are two main categories of exchanges: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).Centralized Exchanges, such as Binance, KuCoin, or Bitget, are the most well-known type of exchange. Easy to access and use, they allow users to conveniently purchase cryptocurrencies in multiple currencies and offer superior liquidity. They also provide a wide range of features. The downside lies in the fact that these platforms are entirely centralized; the cryptocurrencies held there belong to the exchange and not to the users ("not your keys, not your coins"). Consequently, if an exchange gets hacked, goes bankrupt, or turns out to be a scam, users risk losing all their funds—as was the case with the collapse of FTX in 2022.Decentralized Exchanges, such as Uniswap or PancakeSwap, are the exact opposite of CEXs. They are more difficult to access because they require using a wallet, knowing how to perform blockchain transactions, and interacting with dApps (decentralized applications). However, they are far more secure in terms of ownership. DEXs are decentralized because they run on the blockchain. This means that you have full control over your cryptocurrencies. You are almost never at risk of the human management problems mentioned above, even though hacks can still happen at the code level.DEXs also provide access to a wider selection of cryptocurrencies, as anyone is free to list any token they wish—with all the associated risks (scams, low liquidity, rug pulls). Unlike a CEX, they do not have customer service, which means any user error is permanent.Depending on your needs, you may find yourself using one or both types of exchanges. The conclusion remains the same: do your own research (DYOR).
- Exit Scam An exit scam in crypto happens when the project creators take the investor's money and disappear. They build hype, collect investments, and then vanish with the funds overnight. It's one of the oldest and nastiest cons in crypto. Here's how it usually goes down. A project team starts a new token/coin or platform with rosy promises such as groundbreaking technology, guaranteed whopping returns, or the next Bitcoin. They use social media, pay influencers to talk about it, and create fake hype. Investors put their money in. The token price shoots up. Everything looks legit. Then boom—the developers drain the liquidity pools, nuke their social media accounts, and kill the website. Your tokens turn worthless. The money's gone. Some exit scams get fancy. Squid Game token rode the Netflix show's hype in 2021, rocketed up thousands of percent, and then the creators bailed with roughly $3 million. Investors couldn't even sell because of sneaky code restrictions. Others keep it simple. Anonymous teams launch coins on decentralized exchanges, pump the price through coordinated buying, then dump everything and run. What are the aspects that highlight the red flags? Anonymous teams, no actual product to verify, promises of very high returns, and a lot of pressure to invest fast. Real projects have transparent teams, clear use cases, and audited smart contracts. The brutal reality? Once scammers exit, your money's probably gone forever. Crypto's setup means no bank reverses anything and no insurance bails you out. Police struggle to chase anonymous criminals across borders. Your best protection? Stay skeptical and do homework before throwing money at any project.