Account Abstraction
Account abstraction is a wallet and protocol design direction that makes Ethereum accounts more programmable, enabling features like social recovery, batched tr
Ethereum Glossary
Ethereum Glossary
A practical glossary of Ethereum, ETH, DeFi, stablecoins, rollups, and tokenization terms used across the Virtual Ethereum Index.
A concise glossary of Ethereum and web3 terminology for VEI.XYZ™. Each term explains how the concept connects to Ethereum adoption, onchain settlement, DeFi liquidity, and institutional use cases.
Airdrop
An airdrop is a token distribution event where a project gives tokens to users--often based on past activity such as trading, bridging, providing liquidity, or
AMM (Automated Market Maker)
An automated market maker (AMM) is a decentralized exchange design that uses liquidity pools and formulas--rather than traditional order books--to price assets
Beacon Chain
The Beacon Chain is Ethereum's Proof of Stake consensus layer that launched in 2020 and later became the network's consensus engine after the Merge.
Blob Transactions (EIP-4844 / Proto-Danksharding)
Blob transactions are a new Ethereum transaction type introduced by EIP-4844 (proto-danksharding) to make data availability cheaper for rollups.
Bridge
A bridge is a system that transfers tokens or messages between blockchains or between Ethereum L1 and L2 networks.
Cold Wallet
A cold wallet is a method of storing crypto private keys offline, typically using a hardware wallet or an air-gapped device.
DAO (Decentralized Autonomous Organization)
A DAO is a governance structure where decisions are made through token voting, on-chain proposals, or community processes rather than a traditional corporate hi
DeFi (Decentralized Finance)
DeFi is a category of web3 applications that replicate and extend financial services--trading, lending, borrowing, derivatives, and asset management--using smar
DEX (Decentralized Exchange)
A decentralized exchange (DEX) enables token trading through smart contracts without requiring users to deposit funds with a centralized operator.
EIP (Ethereum Improvement Proposal)
An Ethereum Improvement Proposal (EIP) is a formal specification that proposes a change to Ethereum's protocol, standards, or processes.
EIP-1559
EIP-1559 redesigned Ethereum's fee market by introducing a dynamically adjusting base fee that is burned and a separate priority fee (tip) that goes to validato
ERC-20
ERC-20 is the most widely used Ethereum token standard for fungible tokens--assets where each unit is interchangeable, like dollars or loyalty points.
ERC-721
ERC-721 is the Ethereum standard for non-fungible tokens (NFTs), where each token is unique and individually identifiable.
Ether (ETH)
Ether (ETH) is Ethereum's native asset.
Ether Futures
Ether futures are regulated derivative contracts that allow traders and institutions to gain exposure to ETH price movements without holding ETH directly.
Ethereum
Ethereum is a decentralized, open-source blockchain platform designed to run smart contracts and decentralized applications (dApps).
EVM (Ethereum Virtual Machine)
The Ethereum Virtual Machine (EVM) is the runtime environment that executes smart contract code.
Finality
Finality refers to the point at which a blockchain transaction is considered irreversible under normal security assumptions.
Gas
Gas is Ethereum's unit of measurement for computational work and storage operations.
Governance Token
A governance token is a crypto token that grants holders voting power over a protocol or DAO, such as decisions on upgrades, fee parameters, treasury spending,
Gwei
Gwei is a denomination of ETH equal to 0.000000001 ETH (10-9 ETH).
Hot Wallet
A hot wallet is a wallet connected to the internet, used for frequent transactions such as DeFi swaps, NFT purchases, and L2 activity.
Impermanent Loss
Impermanent loss is a phenomenon experienced by liquidity providers in certain AMM pools when the relative prices of pooled assets change.
Layer 1 (L1)
Layer 1 is the base blockchain network that provides consensus, security, and final settlement.
Layer 2 (L2)
Layer 2 refers to scaling systems built on top of Ethereum that execute transactions off-chain or in specialized environments while publishing data/proofs back
Liquidity Pool
A liquidity pool is a smart contract that holds token reserves used to facilitate trading, lending, or other financial functions in DeFi.
MEV (Maximal Extractable Value)
Maximal Extractable Value (MEV) refers to the profit that validators, block builders, or searchers can capture by reordering, inserting, or censoring transactio
MPC Custody (Multi-Party Computation)
Multi-Party Computation (MPC) custody is a cryptographic approach where a private key is split across multiple parties or devices so that no single entity ever
Multisig
A multisig (multi-signature) wallet is a custody setup where multiple approvals are required to authorize transactions.
Node
A node is a computer running Ethereum client software that validates blocks, verifies transactions, and maintains a copy of the blockchain's state.
On-Chain Settlement
On-chain settlement means finalizing transfers and state changes directly on a blockchain, where the ledger provides a shared, auditable source of truth.
Optimistic Rollup
An optimistic rollup is a Layer 2 system that assumes transactions are valid by default and relies on a challenge period where fraud proofs can be submitted if
Oracle
An oracle is a system that delivers external data to smart contracts, such as asset prices, interest rates, or event outcomes.
Rollup
A rollup is a Layer 2 scaling system that executes many transactions off Ethereum mainnet, then posts compressed data and/or cryptographic proofs to Ethereum fo
RPC Provider
An RPC provider is a service that lets wallets and dApps read blockchain data and submit transactions without running a full node.
Shapella (Shanghai/Capella)
Shapella--short for Shanghai (execution layer) and Capella (consensus layer)--is the 2023 Ethereum upgrade that enabled validator withdrawals of staked ETH and
Slashing
Slashing is a penalty mechanism in Ethereum Proof of Stake that removes a portion of a validator's staked ETH for severe protocol violations, such as double-sig
Smart Contract
A smart contract is a self-executing program deployed on Ethereum that runs deterministically when called.
Spot Ether ETF
A spot ether ETF is an exchange-traded fund that holds ETH directly (through regulated custody) and offers investors ETH price exposure via a brokerage-friendly
Stablecoin
A stablecoin is a crypto asset designed to maintain a stable value--most commonly pegged to a fiat currency like the U.S.
Staking
Staking is the process of locking ETH to participate in Ethereum's Proof of Stake consensus.
Tether (USDT)
USDT is one of the largest and most widely used dollar-pegged stablecoins in global crypto markets.
The Merge
The Merge was Ethereum's 2022 transition from Proof of Work to Proof of Stake, replacing miners with validators who secure the network by staking ETH.
Tokenization (RWA)
Tokenization is the process of representing an asset as a blockchain token, enabling programmable ownership, transfer, and settlement.
Tokenized Treasuries
Tokenized Treasuries are on-chain representations of U.S.
TVL (Total Value Locked)
Total Value Locked (TVL) is a metric that estimates the value of assets deposited in DeFi protocols, such as tokens supplied to lending markets, liquidity pools
USD Coin (USDC)
USDC is a widely used, dollar-pegged stablecoin designed for payments, trading, and programmable finance.
Validator
A validator is an entity participating in Ethereum Proof of Stake by staking ETH and performing consensus duties such as proposing blocks and attesting to other
ZK-Rollup
A zk-rollup is a Layer 2 system that batches transactions and posts a zero-knowledge (validity) proof to Ethereum showing the state transition is correct.