Institutional Blockchain Glossary

Atomic Swap

Simultaneous exchange of two assets on the blockchain without counterparty risk. If one party fails, the entire transaction is cancelled.

DvP (Delivery vs Payment)

Settlement mechanism where the transfer of securities (delivery) only occurs if payment (cash) is confirmed, eliminating the principal risk.

ERC-3643 (T-REX)

Tokenization standard for regulated assets (RWA). It integrates an on-chain identity system (ONCHID) to validate holder eligibility in real-time.

Gas Fees

Transaction fees paid to validators to execute calculations on the network (e.g., Ethereum). Variable cost depending on congestion.

Oracle

Data bridge allowing Smart Contracts to access off-chain information (asset prices, weather, sports results) securely (e.g., Chainlink).

PoS (Proof of Stake)

Consensus mechanism where validators lock funds (Stake) to secure the network, replacing energy-intensive mining (PoW).

Smart Contract

Self-executing computer program deployed on the blockchain that automatically enforces the terms of an agreement when conditions are met.

TPS

Measurement of a network's capacity to process transactions. Bitcoin ~7 TPS, Ethereum ~15 TPS, Solana ~65,000 TPS.

ZK-Rollup

Layer 2 (L2) solution that bundles hundreds of transactions into a single cryptographic proof (Zero-Knowledge Proof) to reduce costs and increase speed.

Nakamoto Coefficient (Metric)

Minimum number of entities (nodes, validators, developers) required to compromise a blockchain system. The higher this number, the more decentralized the network.

Source: Balaji Srinivasan (2017)

Bicameral Governance

Bicameral governance system (e.g., Token House + Citizens' House) allowing for the separation of financial decisions from identity or public good decisions.

Example: Optimism Collective

Futarchy

Form of governance where decisions are made by prediction markets ("Vote on values, bet on beliefs"). The market decides which policy will maximize a given metric.

Concept: Robin Hanson / Vitalik Buterin

MiCA (Markets in Crypto-Assets)

European Union regulation (2024) establishing a harmonized framework for the issuance and service of crypto-assets, including strict rules for Stablecoins (EMTs).

Ref: Regulation (EU) 2023/1114

VARA (Virtual Assets Regulatory Authority)

Dubai's regulatory authority dedicated to virtual assets. Offers a specific framework (FMP License) covering issuance, trading, and custody.