Definition: Self-executing computer code living on the blockchain that automatically runs when predetermined conditions are met. Example: A flight insurance smart contract automatically sends you funds the exact moment a database reports your flight is delayed, with no human approval needed.

Definition: The software runtime environment that processes and executes all smart contracts across the entire Ethereum network. Example: When you interact with a decentralized app, the EVM computes the outcome and ensures all computers globally agree on the result.

Definition: The primary programming language used by developers to write smart contracts specifically for the Ethereum blockchain. Example: A developer writes code in Solidity to define the mathematical rules for a new decentralized exchange.

Definition: An application that runs on a blockchain network rather than being hosted on centralized servers owned by a single company. Example: Uniswap is a DApp that lets users trade cryptocurrencies directly from their wallets without creating an account or providing an ID

Definition: A broad category of financial services (like lending, borrowing, and trading) built on blockchain technology without traditional intermediaries. Example: Instead of keeping money in a standard savings account, a user lends their crypto in a DeFi protocol to earn interest directly from borrowers.

Definition: A unique digital cryptographic token that proves verifiable ownership and authenticity of a specific digital or physical asset. Example: An artist mints their digital painting as an NFT, allowing a collector to buy it and cryptographically prove they own the original piece.

Definition: The transaction fee paid to network validators in order to process an operation, move funds, or execute a smart contract on Ethereum. Example: You pay a $2 Gas Fee in ETH to transfer a custom token from your wallet to a friend’s wallet.

Definition: A consensus mechanism where network participants lock up their own cryptocurrency to validate transactions and secure the network, rather than using computing power. Example: Instead of buying expensive mining computers, validators secure the Ethereum network by locking up their own ETH in a smart contract.

Definition: The historic network upgrade in 2022 where Ethereum officially transitioned from Proof of Work (mining) to Proof of Stake. Example: Because of The Merge, Ethereum’s total energy consumption dropped by over 99%overnight

Definition: A participant in a Proof of Stake network who is randomly selected to verify transactions, propose new blocks, and maintain network security. Example: The network selected a validator to process your token swap and rewarded them with a small fraction of ETH for their honest work.

Definition: The act of locking up cryptocurrency as collateral to participate in network validation and earn passive rewards. Example: A user delegates their ETH to a trusted staking pool and earns a 4%annual return for helping to secure the blockchain.

Definition: A future scaling upgrade designed to divide the blockchain into smaller, more manageable pieces (shards) to drastically increase transaction capacity. Example: Once sharding is fully implemented, the network will be able to process thousands of transactions per second instead of just fifteen.