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Glossary

What is Consensus?

The short answer

The process by which a decentralised network agrees on which transactions are valid, without a central authority.

Since no single company decides what’s “true” on a blockchain, the network needs a mechanism for independent participants to agree — commonly proof of work or proof of stake. That agreement is what makes the shared ledger trustworthy.

Related terms

Full glossary

HODL

Crypto slang for holding an asset long-term rather than trading it, originating from a famous misspelling of "hold."

Gwei

A tiny unit of ETH used to price gas fees — one gwei is one billionth of one…

Hot Wallet

A wallet connected to the internet, like a phone app — convenient, but more exposed than a cold…

Peg

The target value a stablecoin is designed to maintain, typically $1 for dollar-pegged coins.

Cold Wallet

A wallet whose keys are stored completely offline, disconnected from the internet — the most secure storage option.

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