Glossary
Your comprehensive guide to understanding the terminology and concepts in digital asset tokenization, blockchain technology, and decentralized finance.
A set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
Monitoring transaction patterns to detect suspicious activity in token transfers.
The process of converting rights to an asset into a digital token on a blockchain. This enables fractional ownership, improved liquidity, and global accessibility for traditionally illiquid assets.
Real estate properties, art collections, or private equity shares converted into blockchain tokens.
The safekeeping and administration of assets on behalf of clients, including the management of private keys for digital assets.
A qualified custodian holding the private keys for institutional investors' tokenized assets.
An organization governed by smart contracts and token holders rather than traditional management structures, enabling decentralized decision-making.
Token holders voting on protocol upgrades or treasury allocation decisions.
A blockchain-based financial ecosystem that operates without traditional intermediaries like banks, using smart contracts to provide financial services.
Lending platforms, automated market makers, and yield farming protocols.
A method of ownership where multiple parties can own shares of an expensive asset, making it more accessible to individual investors.
Owning 1% of a $10 million commercial property through tokens worth $100,000.
The fee required to execute a transaction or smart contract on a blockchain network, paid to compensate network validators.
Paying $20 in ETH to execute a token transfer on the Ethereum network.
A token that grants holders the right to vote on protocol changes, parameter adjustments, or other governance decisions within a decentralized system.
UNI tokens allowing holders to vote on Uniswap protocol improvements.
The ability of different blockchain networks and protocols to communicate and work together, enabling seamless asset transfers and data sharing.
Moving tokens from Ethereum to Polygon network while maintaining their properties.
A regulatory requirement for financial institutions to verify the identity of their clients and assess potential risks of illegal intentions for the business relationship.
Requiring government-issued ID and proof of address before allowing investment in tokenized assets.
Secondary frameworks or protocols built on top of existing blockchain networks to improve scalability and reduce transaction costs.
Polygon, Arbitrum, or Optimism networks for faster and cheaper transactions.
The ease with which an asset can be converted into cash or traded in the market without affecting its price significantly.
Being able to sell tokenized real estate shares quickly on a digital exchange.
A security feature that requires multiple private keys to authorize a cryptocurrency transaction, providing enhanced security for digital asset management.
Requiring 3 out of 5 board members to sign off on large token transfers.
A service that provides external data to blockchain networks, enabling smart contracts to access real-world information.
Chainlink oracles providing real estate price data to tokenization smart contracts.
A digital token that represents ownership of an underlying asset and is subject to securities regulations. Security tokens provide holders with rights such as equity, dividends, or profit sharing.
Tokenized shares of a real estate investment trust (REIT) or equity tokens representing company shares.
The difference between the expected price of a trade and the actual executed price, typically occurring in volatile or low-liquidity markets.
Expecting to sell at $100 but actually selling at $98 due to market conditions.
Self-executing contracts with terms directly written into code on a blockchain. Smart contracts automatically execute when predetermined conditions are met, without requiring intermediaries.
A contract that automatically distributes dividend payments to token holders quarterly.
A cryptocurrency designed to maintain a stable value relative to a reference asset, typically fiat currency like the US Dollar.
USDC, USDT, or DAI used for payments and as a store of value in DeFi applications.
A list of approved participants who are authorized to participate in a token sale or access certain features of a platform.
Only allowing accredited investors on a whitelist to purchase security tokens.
A DeFi practice where users stake or lend their crypto assets to generate high returns or rewards in the form of additional cryptocurrency.
Providing liquidity to a decentralized exchange to earn trading fees and governance tokens.