---
title: Glossary
url: "https://www.unknowngravity.com/en/glosario"
site: Unknown Gravity
published: "2026-06-23T14:55:51+00:00"
modified: "2026-06-23T15:18:35+00:00"
language: en-US
section: "Home > Glossary"
---

# Glossary

GLOSSARY · BLOCKCHAIN · TOKENIZATION · WEB3

Lost in the jargon? From AML to ZK Proof: every crypto concept, explained in plain, direct language.

93 TERMS · A–Z INDEX · KEY DEFINITIONS

## A

 2 TERMS

[AML (Anti Money Laundering) Regulations and processes to prevent cryptocurrencies from being used for money laundering.](/en/glosario/aml-anti-money-laundering) [ART (Asset-Referenced Token) An ART is a crypto-asset regulated by MiCA that stabilizes its value by referencing several assets or currencies.](/en/glosario/art-token-referenciado-a-activos)

## B

 6 TERMS

[BIP (Bitcoin Improvement Proposal) A BIP is the formal route to change Bitcoin: proposed, debated and activated only by consensus. It dates from 2011 and was modelled on…](/en/glosario/bip-bitcoin-improvement-proposal) [Bitcoin The first decentralized cryptocurrency that revolutionized digital finance.](/en/glosario/bitcoin) [Blockchain A technology that allows information to be stored in a secure, decentralized and transparent way using a chain of linked blocks.](/en/glosario/blockchain) [Blockchain gaming Use of blockchain technology for digitally owned games and integrated economies.](/en/glosario/gaming-blockchain) [Book-entry security What a book-entry security is: the system whereby a security exists as a simple electronic record in a register, with no physical paper.](/en/glosario/anotacion-en-cuenta) [Bridge A bridge moves tokens and data between chains that cannot talk: it locks on one side and mints on the other. It is also one of the most…](/en/glosario/bridge)

## C

 6 TERMS

[CASP (Crypto-Asset Service Provider) A CASP is a firm authorized under MiCA to provide crypto-asset services across the EU.](/en/glosario/casp-proveedor-servicios-criptoactivos) [CeFi (Centralized Finance) Finance model based on traditional intermediaries, applied to cryptocurrencies.](/en/glosario/cefi-finanzas-centralizadas) [Centralized Exchange (CEX) A CEX holds your funds and matches orders on its own book. What it offers compared with a DEX, and why the EU has required a CASP licence…](/en/glosario/exchange-centralizado-cex) [CNMV Circular 1/2022 (crypto-asset advertising) What CNMV Circular 1/2022 was, and why it has been repealed since December 2024: crypto-asset advertising is now governed by MiCA.](/en/glosario/circular-1-2022-cnmv-publicidad-criptoactivos) [Cold Wallet Device or method for storing cryptocurrency without an internet connection.](/en/glosario/cold-wallet-cartera-fria) [Cryptocurrency Digital currency that uses cryptography to secure transactions and control the creation of new units.](/en/glosario/criptomoneda)

## D

 11 TERMS

[DAC8 What DAC8 is: the EU directive requiring crypto-asset platforms to report to the tax authority and to share that data between EU countries.](/en/glosario/dac8) [DAO (Decentralized Autonomous Organization) Digital entity governed by rules programmed in smart contracts where members collectively make decisions.](/en/glosario/dao-organizacion-autonoma-descentralizada) [Decentralization Decentralizing spreads validation, governance and data across independent nodes rather than one server. It removes intermediaries and makes…](/en/glosario/descentralizacion) [Decentralized Exchange (DEX) Platform for exchanging cryptocurrencies without intermediaries or central custody.](/en/glosario/exchange-descentralizado-dex) [DeFi (Decentralized Finance) Ecosystem of financial applications that operate on blockchain without traditional intermediaries such as banks.](/en/glosario/defi-finanzas-descentralizadas) [Digital asset custodian What a digital asset custodian is: the entity that safeguards and protects the cryptographic keys of your tokens and crypto-assets on your…](/en/glosario/custodio-activos-digitales) [Digital identity Unique representation of a person in the blockchain ecosystem, based on verifiable wallets and credentials.](/en/glosario/identidad-digital) [Digital signature Cryptographic method for verifying the authenticity and integrity of a transaction or message.](/en/glosario/firma-digital) [DLT (Distributed Ledger Technology) What DLT or distributed ledger technology is: the shared ledger held across many computers that makes tokenization possible.](/en/glosario/trd-tecnologia-registro-distribuido) [DLT Pilot Regime The DLT Pilot Regime is the European testing framework for trading and settling tokenized securities using DLT.](/en/glosario/regimen-piloto-dlt) [DLT-MTF, DLT-SS and DLT-TSS What DLT-MTF, DLT-SS and DLT-TSS are: the three types of market infrastructure authorized by the EU pilot regime to trade and settle…](/en/glosario/dlt-mtf-ss-tss)

## E

 11 TERMS

[Eligible counterparty What an eligible counterparty is under MiFID II: the category with the lowest protection (banks, investment firms, governments) in order…](/en/glosario/contraparte-elegible) [EMT (E-Money Token) An EMT is a crypto-asset regulated by MiCA that keeps its value referenced to a single official currency.](/en/glosario/emt-token-dinero-electronico) [ERC (Ethereum Request for Comments) An ERC defines the interface a contract must implement so wallets, exchanges and marketplaces can read it: ERC-20, ERC-721 and ERC-1155 all…](/en/glosario/erc-ethereum-request-for-comments) [ERC-1155 Hybrid standard that allows both fungible and non-fungible tokens to be created in the same contract.](/en/glosario/erc-1155) [ERC-20 Standard for fungible tokens on Ethereum and other EVM-compatible blockchains.](/en/glosario/erc-20) [ERC-3643 Standard for regulated tokens and permissions that meet legal requirements such as KYC and AML.](/en/glosario/erc-3643) [ERC-721 Standard for non-fungible tokens (NFTs) on Ethereum, used for unique assets such as art, collectibles or digital property.](/en/glosario/erc-721) [ERIR (Entity Responsible for the Registration and Recording) Spain's Law 6/2023 requires an ERIR to register tokenized securities on DLT. See who may act as one, what it answers for and why the CNMV…](/en/glosario/erir-entidad-de-registro-e-identificacion-registral) [Ethereum Blockchain platform that allows you to create and execute smart contracts and dApps.](/en/glosario/ethereum) [EVM (Ethereum Virtual Machine) Virtual machine that executes smart contracts on the Ethereum blockchain.](/en/glosario/evm-ethereum-virtual-machine) [Exchange (Cryptocurrency Exchange) Platform where cryptocurrencies and tokens are bought, sold and traded.](/en/glosario/exchange-intercambio-de-criptomonedas)

## F

 2 TERMS

[Fork (Bifurcation) Change or update to a blockchain protocol that creates two possible routes.](/en/glosario/fork-bifurcacion) [Fungible Token A token that can be exchanged for an identical token, used as a currency or as a representation of assets.](/en/glosario/token-fungible)

## G

 1 TERM

[Gas Unit that measures the computational cost of executing operations on a blockchain such as Ethereum.](/en/glosario/gas)

## H

 3 TERMS

[Hash A cryptographic function that transforms data of any size into a fixed string of characters, unique for each entry.](/en/glosario/hash) [Hot Wallet Digital wallet connected to the internet to manage cryptocurrencies quickly and affordably.](/en/glosario/hot-wallet-cartera-caliente) [Howey Test What the Howey Test is: the US criterion for deciding whether a token or investment is a security subject to financial regulation.](/en/glosario/howey-test)

## I

 3 TERMS

[Iberclear (Central Securities Depository) What Iberclear is: Spain's central securities depository, which records who owns each security and ensures that trades settle correctly.](/en/glosario/iberclear-depositario-central-valores) [Immutability Immutability means a validated block cannot be rewritten: hash chaining plus PoW or PoS consensus enforce it. See how it holds and where it…](/en/glosario/inmutabilidad) [Interoperability The ability of different blockchains to communicate and share data with each other.](/en/glosario/interoperabilidad)

## K

 2 TERMS

[KYB (Know Your Business) Verification process for companies and legal entities to prevent fraud and comply with regulations.](/en/glosario/kyb-know-your-business) [KYC (Know Your Customer) User identity verification process required by regulators.](/en/glosario/kyc-know-your-customer)

## L

 5 TERMS

[Layer 1 Blockchain base that processes and validates all network transactions.](/en/glosario/layer-1-capa-1) [Layer 2 Solutions that operate on top of a main blockchain to improve scalability and reduce costs.](/en/glosario/layer-2-capa-2) [Layer 3 Layer that adds advanced functionality and user experience to Layer 2 and Layer 1.](/en/glosario/layer-3-capa-3) [Liquidity Pool A pool locks two tokens in a contract so swaps trade against it instead of an order book. You collect a fee and you take on impermanent…](/en/glosario/liquidity-pool-fondo-de-liquidez) [LMVSI (Law 6/2023 on Securities Markets) The LMVSI is the Spanish law governing securities markets and recognizing securities represented through DLT.](/en/glosario/lmvsi-ley-6-2023)

## M

 7 TERMS

[Mainnet The main network of a blockchain where transactions and contracts have real value and permanent consequences.](/en/glosario/mainnet) [Merkle Tree Cryptographic data structure that allows large amounts of data to be verified in an efficient and secure way.](/en/glosario/arbol-de-merkle-merkle-tree) [MiCA (Markets in Crypto-Assets Regulation) MiCA is the European regulation governing the issuance of and services related to crypto-assets across the EU.](/en/glosario/mica-reglamento-criptoactivos) [MiFID II MiFID II is the European directive that regulates markets in financial instruments and protects investors.](/en/glosario/mifid-ii) [MiFIR MiFIR is the European regulation that complements MiFID II with transparency and reporting rules for markets.](/en/glosario/mifir) [Minting Minting creates the token and records it on-chain through a smart contract: an ERC-20 is born with its supply, an NFT with its tokenId and…](/en/glosario/minting) [Modelo 721 What Modelo 721 is: the informational return used to report to the Spanish tax authority cryptocurrencies held on platforms abroad.](/en/glosario/modelo-721)

## N

 4 TERMS

[NFT (Non-Fungible Token) A unique digital token that represents ownership of a specific asset, such as digital art, music, or collectibles.](/en/glosario/nft-token-no-fungible) [NFT metadata Additional information that describes the characteristics of an NFT, such as a name, image, description, or unique attributes.](/en/glosario/metadatos-nft) [Node A node stores the ledger and validates every block. Tell the five types apart, full, light, validator, miner and archive, and what each one…](/en/glosario/nodo) [Nonce A nonce orders your Ethereum transactions and is the number miners change until a Bitcoin block hash is valid. Explained twice: for dummies…](/en/glosario/nonce)

## O

 2 TERMS

[OpenZeppelin OpenZeppelin is the audited Solidity library behind most ERC-20, ERC-721 and DAO contracts. See the risks it removes: reentrancy, overflow…](/en/glosario/openzeppelin) [Oracle An oracle feeds the smart contract the data the chain cannot see: a price, a result, a temperature, a shipment. Execution is only as good…](/en/glosario/oraculo)

## P

 5 TERMS

[Professional client What a professional client is under MiFID II: an experienced investor who receives less protection. Per se and on-request routes.](/en/glosario/cliente-profesional) [Proof of Stake (PoS) Consensus mechanism where validators are chosen based on the number of tokens they hold and stake.](/en/glosario/proof-of-stake-pos) [Proof of Work (PoW) A consensus mechanism that requires solving complex calculations to validate transactions and create new blocks on the blockchain.](/en/glosario/proof-of-work-pow) [Prospectus What a prospectus is: the document detailing the risks and features of a securities offering before they are sold to the public.](/en/glosario/folleto-informativo) [Public and private key A pair of cryptographic keys used to secure and sign blockchain transactions.](/en/glosario/clave-publica-clave-privada)

## Q

 1 TERM

[Qualified investor What a qualified investor is: a Prospectus Regulation concept that refers back to the MiFID II professional client. Usually exempts from a…](/en/glosario/inversor-cualificado)

## R

 2 TERMS

[Real World Assets (RWA) RWAs tokenize rights over property, bonds, art or commodities, not the thing itself: ownership still follows the Civil Code (arts. 609 and…](/en/glosario/real-world-assets-rwa) [Remote Procedure Call (RPC) RPC is the door your wallet or dApp uses to talk to a node: it reads balances and sends transactions. If the endpoint goes down, the app is…](/en/glosario/rpc-remote-procedure-call)

## S

 12 TERMS

[Security Token Financial instrument (share, bond or holding) represented on blockchain and subject to securities-market rules.](/en/glosario/security-token) [Self-custody Full and personal control of private keys and digital assets without intermediaries.](/en/glosario/auto-custodia-self-custody) [Side Chain Independent blockchain that connects to the main chain to increase scalability or add functions.](/en/glosario/side-chain) [Slashing Automatic penalty that reduces funds from validators who act poorly on Proof of Stake blockchains.](/en/glosario/slashing) [Smart Contract Program that automatically runs on a blockchain to fulfill agreements without intermediaries.](/en/glosario/smart-contract-contrato-inteligente) [Smart contract Self-executing blockchain programs that automate agreements and processes without intermediaries.](/en/glosario/smart-contract) [Solidity Main programming language for creating smart contracts in EVM.](/en/glosario/solidity) [Solidity language Programming language used to create smart contracts on Ethereum and other blockchains compatible with EVM.](/en/glosario/lenguaje-solidity) [Stablecoin Cryptocurrency designed to maintain a stable value, generally backed by assets or algorithms.](/en/glosario/stablecoin) [State Channel Off-chain private channel that allows multiple quick and cheap transactions before recording the result on the blockchain.](/en/glosario/state-channel) [STO (Security Token Offering) An STO is the issuance of tokens that are transferable securities, subject to securities markets law.](/en/glosario/sto-security-token-offering) [Supply Chain Use of blockchain to track and ensure the traceability of supply chains](/en/glosario/supply-chain)

## T

 4 TERMS

[Testnet A testnet mirrors the consensus, gas and blocks of the live network with worthless tokens: it is where contracts, wallets and dApps are…](/en/glosario/testnet) [Token Digital representation of an asset, value or utility within a blockchain.](/en/glosario/token) [Tokenization The process of representing on blockchain tokens the rights over a real or digital asset. The token mirrors the right; it does not transfer…](/en/glosario/tokenizacion) [Tokenized transferable security A tokenized transferable security is a security (share, bond) represented on a blockchain and regulated as a financial instrument.](/en/glosario/valor-negociable-tokenizado)

## U

 1 TERM

[Utility Token Digital token that grants access to products or services within a blockchain platform.](/en/glosario/utility-token)

## W

 2 TERMS

[Wallet Application or device that allows you to store and manage private keys to send and receive cryptocurrency.](/en/glosario/wallet) [Web3 A set of technologies for interacting with blockchain and decentralized applications from the browser.](/en/glosario/web3)

## Z

 1 TERM

[ZK Proof (Zero-Knowledge Proof) A cryptographic method that allows you to prove that a statement is true without revealing the information behind it.](/en/glosario/zk-proof-zero-knowledge-proof)