Glossary

Currency that must be accepted as payment by law; El Salvador made Bitcoin legal tender in 2021.

A record-keeping system for transactions; in blockchain, a distributed ledger is maintained across many nodes simultaneously.

Application-specific chains or protocols built on top of Layer 2 solutions to provide even more specialized functionality.

A secondary framework built on top of an existing blockchain to improve scalability and transaction throughput.

The base blockchain protocol such as Bitcoin or Ethereum that forms the foundation of the network’s infrastructure.

The underlying infrastructure layer of blockchain networks including physical hardware, internet protocols, and peer-to-peer networking.

A platform that helps new cryptocurrency projects raise funds and distribute tokens to early supporters.

A popular cryptocurrency exchange known for a wide selection of altcoins, nicknamed The People’s Exchange.

A compliance process that monitors cryptocurrency transactions for suspicious activity to prevent money laundering.

A regulatory compliance process requiring cryptocurrency exchanges to verify the identity of their customers.