Definition: A scaling solution that processes multiple transactions off the main blockchain and bundles them into a single transaction to reduce costs. Example: Using a rollup network like Arbitrum or Optimism, you pay mere pennies for a transaction that would normally cost dollars on the main Ethereum chain.

Definition: The vision for a new, decentralized iteration of the internet where users maintain full ownership of their data, assets, and digital identity. Example: In Web3, you log into a website using your crypto wallet (like MetaMask) instead of relying on a Google or Facebook account.

Definition: A 12–24 word backup that can restore control of your funds if your device is lost. Example: If your phone breaks, you restore access by entering the recovery phrase on a new device.

Definition: The human-readable word format used to represent wallet recovery data. Example: The wallet shows a list of words instead of a long string of characters.

Definition: An optional extra secret that adds another layer to a recovery phrase. Example: Two people could have the same 12 words, but different passphrases create different access.

Definition: A setup connected to the internet, optimized for convenience and frequent use. Example: A browser-based setup used daily for swaps and small transfers.

Definition: A setup kept offline or isolated to reduce remote attack exposure. Example: Long-term holdings kept in an offline environment you rarely connect.

Definition: A physical tool that helps keep authorization actions separated from an internet-connected computer. Example: You confirm a transaction on the device itself before it is approved.

Definition: A service provider controls the keys and you access funds through an account. Example: Keeping funds on an exchange where withdrawals depend on the platform.

Definition: You control the keys directly and therefore control access without intermediaries. Example: You can move funds anytime because no company can block the authorization.

Definition: A scam that tricks you into revealing recovery information or approving malicious actions. Example: A fake “support” chat asks you to “verify” your recovery phrase.

Definition: An attack where someone hijacks your phone number to intercept codes and reset accounts. Example: Your carrier is tricked into moving your number to the attacker’s SIM.