Glossary
Plain-language definitions for terms used across our coverage.
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127 terms
A
- Aid Trust Portal The Aid Trust Portal: an invite-only web tool built by the Algorand Foundation that maps humanitarian payment flows on the public blockchain — from donor and agency wallets down to agents and recipients — integrating blockchain-intelligence firm Elliptic to flag wallets linked to suspicious activity.
- airdrop A free distribution of tokens or NFTs to specific wallet holders, often used to promote a project or reward early supporters. Recipients are usually chosen based on predefined criteria.
- algod The core Algorand node daemon ('algo daemon') and its REST API: the live source of truth for the current state of the chain — latest round, account balances, asset parameters — and the endpoint through which you submit new transactions to the network. It does not store searchable history; for that you use an indexer.
- Algorand Standard Asset A built-in mechanism that allows anyone to create and issue new tokens (like stablecoins, utility tokens, or NFTs) directly on Algorand's base layer, inheriting the same speed and security as the ALGO token.
- anti-snipe timing An auction rule that prevents last-second bidding by extending the auction deadline when a bid is placed near the end. This ensures fairness and gives others time to counter-bid.
- Application escrow accounts Blockchain accounts controlled by smart-contract logic that hold funds and can only spend them according to predetermined program rules, limiting how an automated agent can use the money.
- ARC-18 The Algorand standard for enforcing NFT royalties: a smart contract that holds 'clawback' authority over a token and only lets a sale complete when the royalty payment is bundled into the same transaction group. It is opt-in (the asset's creator must configure it at minting) and marketplaces must integrate it — a plain wallet-to-wallet transfer skips it entirely.
- ARC-19 An Algorand standard for NFTs whose metadata is stored off-chain (typically on IPFS) and referenced from the asset's URL field using a template, so the artwork can be updated without re-minting. A common template derives the IPFS content identifier from the asset's reserve address, letting the asset manager swap the metadata by changing that address.
- ARC-3 A technical standard for defining non-fungible tokens on the Algorand blockchain, specifying how metadata like the asset name, image, and audio links are structured. It ensures tokens created on Algorand have a consistent, machine-readable format.
- ARC-48 An Algorand Request for Comments (technical proposal) that defines a framework for targeted DeFi rewards, where the Algorand Foundation allocates ALGO tokens to DeFi projects to distribute through their pools to incentivize usage.
- ARC-56 A standardized specification that describes a smart contract's methods and data structures on Algorand. It acts as a machine-readable interface so external tools and callers can interact with the contract correctly.
- ARC-69 A standard for how Algorand NFTs store metadata, allowing attributes to be placed on-chain so tokens can be traded across any marketplace that supports it.
- ARC-89 An Algorand Request for Comments standard that defines a registry for storing asset metadata directly on the blockchain using box storage. It supersedes earlier metadata approaches like ARC-19 and ARC-69.
- archival nodes An archival node is a blockchain node that stores the complete historical record of all transactions and blocks, unlike regular nodes that may delete old data. These nodes require substantial storage and are used for querying historical data or building indexes.
- ASA Algorand Standard Asset: the layer-1 mechanism on the Algorand blockchain that allows anyone to issue a token such as a stablecoin or NFT, carrying basic fields like name, supply, and decimals.
- atomic swaps A mechanism enabling direct, peer-to-peer exchanges of different assets (e.g., gold tokens for cryptocurrency) without relying on a third-party custodian. It ensures both sides of the trade execute simultaneously or not at all, reducing fraud risk.
- Atomic transaction groups A way to bundle several blockchain transactions so that they either all execute together or none do, which can bind a payment to certain conditions in an all-or-nothing batch.
- Atomic Transfer A blockchain feature ensuring that a group of transactions either all succeed together or all fail together. This prevents partial payments or lost funds, which is especially important in unstable environments like conflict zones.
- Atomic transfers A blockchain mechanism that bundles multiple payments into a single transaction, which either completes fully or not at all. This prevents partial settlement when multiple parties are involved in one payment.
- Automated Market Maker The underlying algorithm used by most Algorand DEXs. Instead of matching buyers and sellers via an order book, AMMs use smart contracts and mathematical formulas to price assets and facilitate trades instantly.
- AVM Algorand Virtual Machine, the software environment that executes smart contracts on the Algorand blockchain.
B
- block explorers Websites or applications that allow users to search and view blockchain data, such as transaction histories, wallet addresses, and block contents. They are used to verify on-chain activities.
- Bonding curve A pricing mechanism where a token's price rises automatically as more of it is bought, so early buyers pay less and later buyers pay more. Fair-launch platforms use it to sell an entire token supply directly through the market instead of a presale.
- box storage On-chain key-value state attached to a smart contract, used by AlgoDirectory to store listing data directly on the blockchain instead of in a traditional database.
C
- CALP The Cash Learning Partnership; a global network of organizations that gathers evidence and expertise on delivering humanitarian aid as cash or vouchers.
- Cash and voucher assistance Cash and voucher assistance (CVA): humanitarian aid delivered as money or vouchers that recipients can spend as they choose, rather than as in-kind goods. It has grown to roughly a fifth of all international humanitarian aid, and is the delivery model that blockchain-based aid payments aim to make faster and cheaper.
- CGAP Consultative Group to Assist the Poor: a global partnership for financial inclusion and a research hub housed at (and closely linked to) the World Bank, which studies how digital finance, including stablecoins, can serve poor and crisis-affected people.
- Circle Impact A US-based stablecoin issuer (USD Coin, USDC) whose treasury-management arm, Circle Impact, partners with humanitarian organizations and sits on Algorand's Humanitarian Aid Payments Council.
- clAMM An acronym for concentrated liquidity automated market maker, a type of decentralized exchange protocol that lets liquidity providers concentrate their funds within a specific price range, improving capital efficiency and narrowing spreads.
- clawback A feature in some blockchain assets allowing an authorized address to forcibly reclaim tokens from a user’s wallet. It introduces centralized control over decentralized assets, often used for compliance or recovery purposes.
- committed ALGO ALGO tokens that a user locks in Algorand governance to participate in a specific governance period. These tokens are inaccessible for the duration of the period, ensuring the user's stake is tied to the process.
- composable In software, a system is composable when its parts can be freely combined and reused in different applications. Here, it means marketplace listings can be shown and bought through other websites, with the listing itself remaining on the original contract.
- cooldown phase A period within an Algorand governance cycle during which governors cannot withdraw or transfer their committed ALGO. It occurs after the voting phase and before the period rewards are distributed.
- Correspondent banking The system by which banks in different countries hold accounts with each other to process international transfers; when global banks withdraw these relationships from high-risk jurisdictions ('de-risking'), cross-border transfers to those countries become slow, expensive, or impossible.
- Counterparty risk The risk that the other party in a transaction or agreement might not fulfill their obligations, such as a project team failing to deliver promised rewards or tokens. This is especially relevant in unaudited or anonymous projects where accountability is limited.
- custodial risk The potential for loss or theft when a third party holds and manages private cryptographic keys on behalf of users or institutions. In public sector blockchain applications, this risk arises if governments lack secure systems to safeguard these keys themselves.
- Custodial wallet A digital wallet model where a company (here, a payments platform like HesabPay) holds the private keys to users' funds on their behalf, like a bank holding an account. Users get easy recovery and app-based access, but must trust the provider; the alternative is a self-custodial wallet where the user alone controls the keys.
- CVA The cash and voucher assistance delivery model in which aid is given as money or vouchers recipients can spend as they choose — roughly a fifth of all international humanitarian aid, and the model blockchain-based aid payments aim to make faster and cheaper.
D
- dApp A decentralized application, a software program that runs on a blockchain network instead of a central server, so it's not controlled by a single company or authority.
- Decentralized Exchange A peer-to-peer marketplace built on Algorand where users can trade ASAs directly from their wallets without relying on a centralized intermediary (like Binance or Coinbase). Tinyman and Pact are popular examples on Algorand.
- Decentralized Identifiers (DIDs) A W3C standard for globally unique, owner-controlled identifiers that do not depend on any single platform. They allow people or AI agents to prove their identity cryptographically in a decentralized way.
- DigiLocker A digital document wallet run by the Government of India where citizens store and share official documents; used by the Mann Deshi credit-scoring system as the source of the documents that get attested on-chain.
- dualSTAKE A DeFi staking feature where users stake two assets at once to earn combined rewards. It's offered by Myth Finance and requires depositing a pair of tokens.
- Dutch auction A declining-price sale in which an item is listed at a high starting price that drops by set steps (here, hourly) until someone buys it or it reaches a floor price. Used by NFT projects to let early buyers pay more and late buyers pay less.
E
- Elliptic A blockchain analytics and compliance firm whose screening is integrated into the Aid Trust Portal, so wallets that have interacted with suspicious accounts can be flagged to aid organizations.
- emission schedule A planned timeline for how and when new tokens are created and released into circulation. It determines the rate at which supply increases, which can affect the token's value over time.
- escrow addresses Special blockchain addresses that temporarily hold assets (like NFTs or tokens) until certain conditions are met, ensuring secure transfers between parties without direct trust.
- EVM-style chains EVM-style chains are blockchains that run the Ethereum Virtual Machine, like Ethereum or Binance Smart Chain. Moving assets between them often requires bridges or wrapped copies, which makes cross-chain transfers more complex than on Algorand.
F
- fabrication premium The extra cost over the spot price of a precious metal to cover manufacturing and distribution of a physical bar or coin.
- Falcon-1024 A digital signature algorithm designed to be secure even against future quantum computers, standardised by NIST at its highest security level.
- fee sink In blockchain systems, a fee sink is an address or smart contract that collects transaction fees, often removing them from circulation. On Algorand, transaction fees are partially redirected to a dedicated fee sink address to manage network revenue.
- floor price Floor price is the lowest listed asking price for an item in an NFT collection, such as the cheapest Ankh currently for sale.
- front-running A practice where someone exploits knowledge of pending transactions to execute their own trades first, often profiting at the expense of others. In DeFi, this can happen when bots detect and prioritize transactions before they are confirmed on the blockchain.
G
- Generative art Art produced by an algorithm rather than painted or drawn by hand: a fixed set of rules takes a seed value (often random) and deterministically produces a unique output, so every piece in a collection differs while sharing a consistent style.
- guardian network A set of validators (in this case, 19) that verify and ratify cross-chain messages, securing bridges between different blockchains.
H
- HAFN A digital currency issued by HesabPay, pegged to the Afghan afghani and minted on the Algorand blockchain against fiat deposits, used to pay aid recipients and merchants in Afghanistan.
- HD wallets Short for hierarchical deterministic wallets, a type of cryptocurrency wallet that derives a structured tree of addresses from a single master seed phrase. This makes backup easier (you only need the seed) and lets you generate many addresses without tracking each one individually.
- Humanitarian Aid Payments Council The Humanitarian Aid Payments Council: a body founded by the Algorand Foundation in 2024, convening UN agencies, stablecoin issuers, payment processors and aid organizations to promote blockchain-based aid payments.
- Humanitarian cash transfers Delivering humanitarian aid as money (cash or vouchers) that recipients spend as they choose, instead of distributing physical goods. Roughly a fifth of all international humanitarian aid is delivered this way; stablecoin-based rails like HAFN aim to make the underlying transfers faster and cheaper.
- Humanitarian Venture Lab A global humanitarian NGO's innovation arm (here Mercy Corps Ventures) that pilots technologies like stablecoin aid delivery and runs a Humanitarian Venture Lab; distinct from the parent organization's country programs.
I
- IMTA Informal money transfer agents: unlicensed remittance and cash-delivery networks, common in Afghanistan and other fragile states, that humanitarian agencies rely on to move cash where banks do not work — at fees that can reach 10% of the transfer.
- indexer A service that organizes and indexes blockchain data so that applications can quickly search and retrieve information from the blockchain.
- IPFS A decentralized file storage system where data is stored across multiple computers, making it resistant to censorship or loss. NFTs often use IPFS to store metadata like images and traits to ensure they remain accessible.
K
- Kink design An interest rate model used in lending protocols where borrowing rates stay low until a certain utilization threshold is reached (e.g., 80%), then increase steeply to incentivize repayment and manage liquidity.
- KYC Know Your Customer — a legal requirement for financial services to verify who their customers are, usually by collecting identification documents.
L
- layer-1 The base blockchain network itself, which handles core functions like transaction processing and finality, as opposed to layer-2 solutions built on top of it.
- Liquid staking A DeFi mechanism where a user locks up a proof-of-stake cryptocurrency (like ALGO) and receives a tradable derivative token (such as xALGO) representing the staked amount plus accruing rewards, so the capital stays usable in other applications instead of being locked until unstaking.
- LogicSignature A type of Algorand smart contract that acts as a spending condition, allowing transactions to be authorized without a traditional account key. In this article, Falcon-enabled transactions were initially secured through these stateless programs.
- LP tokens Tokens issued to users who provide liquidity to a decentralized exchange pool. They represent a proportional share of the pool's assets and are usually burned to lock the liquidity permanently, preventing the creator from withdrawing it.
M
- Machine Payments Protocol An emerging standard for enabling autonomous, real-time payments over HTTP, often used for pay-per-use APIs or microtransactions. It allows machines or agents to handle payments without human intervention.
- mainnet The main public blockchain network where transactions are recorded and have real value, as opposed to a test network used for experimentation.
- Mercy Corps Ventures A non-profit aid organization's in-house venture arm (here Mercy Corps Ventures) that funds and pilots startups and technologies, including stablecoin aid delivery, to improve humanitarian outcomes.
- MEV Maximal extractable value: profit a block producer (or a transaction orderer) can capture by reordering, inserting, or censoring transactions in a block, e.g. frontrunning a swap or placing a liquidation right after a price update. On Algorand, transaction ordering is largely first-in-first-out by the block proposer, which changes how MEV can be captured compared to chains with public mempools.
- MiCA Markets in Crypto-Assets Regulation, a European Union law that sets rules for crypto-asset services, including record-keeping requirements of five to seven years.
- micro-reward systems Small, frequent payouts (like staking rewards) designed to incentivize participation. Their effectiveness can be undermined if transaction costs or inflation reduce the net value of the rewards.
- Minimum balance (Algorand) The minimum amount of ALGO an Algorand account must hold, which grows with the account's on-chain footprint — currently 0.1 ALGO per asset held or created and 0.1 ALGO per smart-contract box, on top of a small base. It locks value as a spam-prevention measure.
- Mint-and-burn token model A token issuance model for fiat-backed digital money: new tokens are created (minted) only when real currency is deposited, and destroyed (burned) when it is redeemed, so the total on-chain supply tracks deposits. The minting account typically holds the difference between the nominal maximum supply and the amount actually circulating.
- Model Context Protocol An open standard that gives an AI model tools to interact with external systems. In VibeKit's case, an MCP server exposes blockchain operations (deploy contracts, create assets, query accounts) that an AI coding agent can call directly, instead of the model only generating code text.
- MPC Multi-party computation; a cryptographic technique that lets two or more parties jointly compute a result without revealing their own private inputs. In the article, it splits a wallet's private key across services so no single party has the whole key, allowing passwordless logins for a self-custodial wallet.
- msgpack A compact binary data serialization format, used to encode and transmit blockchain transaction data efficiently.
- Multisig Short for multi-signature, a security setup where more than one private key is required to approve a transaction. A 3-of-5 multisig means any three of five approved signers must authorize an action.
N
- NaCl secretbox algorithm A cryptographic method from the NaCl library that encrypts and authenticates data with a symmetric key, used in Pera Web to protect private keys locally in the browser.
- non-custodial A system where users retain control of their funds or assets at all times, rather than handing them over to a third party to manage.
O
- On-chain Describes transactions that are recorded and permanently stored on a blockchain ledger, making them publicly visible and tamper-resistant.
- on-ramp A service that lets people convert traditional money (like dollars) into cryptocurrency, often by linking a bank account or card.
- opt-in transaction In Algorand, a required transaction that adds a specific token to your account before you can receive it, preventing unwanted tokens from being sent to you unrequested.
P
- Parimutuel market A betting structure in which all stakes on both sides of a market go into one shared pool, and when the market closes the winning side splits the pool in proportion to each winner's contribution. The operator's fee is deducted at entry rather than from a spread, and payouts do not depend on matching individual orders the way an order book does.
- Participation keys A separate key pair an Algorand account generates to take part in consensus (voting on and proposing blocks). The account's spending keys (seed phrase) are only needed once, to register the account online; the participation keys can then be handed to a node without risking the account's funds, and must be renewed periodically before they expire.
- Participation nodes Nodes run by ALGO holders to validate transactions and earn staking rewards; in Algorand, all token holders can run them with a minimum stake.
- paymaster A smart contract that pays transaction fees on behalf of users, allowing them to pay gas costs in any token rather than the chain's native currency.
- perps Short for perpetual contracts or perpetual futures, a type of derivative that lets traders speculate on an asset's price without an expiration date, so positions can be held indefinitely.
- Post-quantum cryptography Cryptography designed to remain secure against attacks from quantum computers, which could break the math behind today's widely used digital signatures and encryption. On Algorand it refers to signing schemes such as Falcon that protect accounts and transactions even if a capable quantum computer is ever built.
- Prediction market A market where users buy and sell shares in the outcome of a future event, such as an election, a sports match, or a price move. Share prices reflect the crowd's implied probability of that outcome, and holders are paid out if the event resolves their way.
- price oracle A service that supplies external data, such as current asset prices, to smart contracts on a blockchain.
- Pure Proof-of-Stake A consensus mechanism used by some blockchains to validate transactions and secure the network. Unlike traditional proof-of-work, it relies on validators who hold and stake the blockchain’s native tokens, reducing energy consumption but potentially increasing centralization risks.
R
- Real-world assets (RWA) Physical assets — such as gold, real estate, commodities or securities — that are represented and traded as digital tokens on a blockchain, with the on-chain token standing in for ownership or claims on the underlying asset.
- Rekeying An Algorand feature that lets an account delegate its signing authority to a different key, so that several different addresses can be controlled from a single wallet. The ledger records which key actually signs; checking an account's auth address reveals whether two seemingly separate accounts are really controlled by the same person.
- Reloadable aid card A physical debit-style card linked to a blockchain-based digital wallet, which lets aid recipients in areas without smartphones or reliable internet spend digital money offline at local merchants.
- reorg risk The risk that a blockchain network temporarily splits and a previously confirmed transaction is undone or reorganized, common on proof-of-work chains but avoided on Algorand.
- Reserve address An Algorand account associated with an asset that controls certain parameters of it. In ARC-19 NFTs, the reserve address holds the reference to the metadata, allowing the artwork to be changed by pointing the token to new metadata, while preserving the token's provenance.
S
- scratch slot A temporary storage location in Algorand's smart contract execution environment used to hold intermediate values during contract execution. Efficient use of these slots can reduce transaction costs and improve performance.
- Single-block finality A feature of some blockchains where transactions are confirmed and made irreversible in a single block, eliminating the need for multiple confirmations. This ensures near-instant and permanent settlement of transactions.
- Slashing penalty A rule in proof-of-stake systems that punishes validators who misbehave by taking away some of their staked tokens.
- slippage The difference between the expected price of a trade and the actual executed price, often caused by low liquidity or rapid market movements. It can significantly reduce the value of small or large trades.
- Sortition A random selection process used in Algorand's consensus mechanism to choose which staked users will propose and validate blocks, making the process unpredictable and fair.
- SPF and DMARC Email authentication systems that help prevent spoofing. SPF lets a domain list authorized mail servers, while DMARC instructs receiving servers how to handle messages that fail authentication.
- Stablecoin A cryptocurrency whose value is designed to stay stable, usually by being pegged 1:1 to a traditional currency like the US dollar (e.g. USDC) or, in HesabPay's case, the Afghan afghani. Aid organizations use them so recipients receive a fixed value that does not swing with crypto market prices.
- Stablecoins in Humanitarian Cash Transfers (CGAP) A research and training deck published by CGAP in June 2026 assessing when stablecoins can improve humanitarian cash transfers, citing Algorand and Stellar deployments including the Mercy Corps–HesabPay pilot in Afghanistan.
- State Proofs A compact, quantum-resistant cryptographic proof that certifies the state of a blockchain ledger at a certain round. Algorand uses Falcon-based state proofs to provide a lightweight, verifiable snapshot of the chain.
- Stateful Smart Contracts Smart contracts that can maintain and update their state (stored data) over time, enabling dynamic interactions like modifying NFT traits or executing conditional logic based on previous transactions.
- stateless smart contracts A type of smart contract that does not store data on the blockchain between transactions, reducing costs and complexity. This allows for faster and cheaper micro-payments but can make it harder to track or verify large volumes of activity on-chain.
- sub-3-second finality A performance metric in blockchain networks indicating that transactions are confirmed and irreversible within three seconds. This speed is critical for applications like payments or aid distribution where delays are costly.
- Sybil attack A type of security threat where an attacker creates many fake identities or accounts to overwhelm or manipulate a system. This can undermine trust in networks that rely on reputation or voting.
T
- Targeted DeFi Rewards (TDR) An Algorand Foundation incentive program, defined in ARC-48, that distributes ALGO to DeFi projects which deploy it in targeted activities — such as liquidity mining, trading incentives and user acquisition — to grow DeFi usage on Algorand. Projects submit a distribution plan each governance period, and rewards are voted on by governors.
- TEAL A low-level, stack-based programming language used to write smart contracts on the Algorand blockchain. It requires manual stack management and lacks type safety, making it difficult for developers familiar with high-level languages.
- testnet A separate, experimental version of a blockchain used for testing new features or applications without real-world financial risk. Assets and transactions on a testnet have no monetary value.
- Tokenized Trust Framework (TTF) A tokenization framework used by the Mann Deshi credit scorecard, in which an issuer attests to facts about a person (identity, repayment history, training certificates) as portable on-chain tokens rather than sharing the underlying documents, preserving privacy while enabling verification.
- Total Value Locked A key metric measuring the overall health of the DeFi ecosystem. It represents the total fiat value of all ALGO and ASAs currently deposited or "locked" into Algorand's smart contracts, liquidity pools, and lending protocols.
U
- UNDP AltFinLab The Alternative Finance Lab of the United Nations Development Programme: the UNDP unit, led from Istanbul, that experiments with blockchain and other new financial technologies for development, and that co-runs the Blockchain Academy for UN staff with the Algorand Foundation.
- UNHCR reloadable cards A UN Refugee Agency program distributing aid through reloadable payment cards tied to digital wallets, in this case scaled via HesabPay in Afghanistan to more than 625,000 refugee returnees.
- USDC stablecoin A type of cryptocurrency designed to maintain a stable value by being pegged to a traditional currency, like the U.S. dollar. It is issued by a company and used for digital payments, but its use can be restricted by regulations or sanctions.
- USSD A mobile phone protocol that lets users access text-based services on basic feature phones without an internet connection, often used for mobile payments and banking.
V
- Verifiable Credentials (VCs) Digital credentials that can be cryptographically proven as authentic and tamper-evident without relying on a central authority. They allow individuals or agents to share trusted information, like licenses or certifications, securely.
- Verifiable Random Function (VRF) A cryptographic tool that produces an unpredictable random number together with a proof that the draw was fair, used for trustless randomness.
W
- WalletConnect A protocol that lets a web app connect to a cryptocurrency wallet (such as Pera or Defly on Algorand) by scanning a QR code, so the app can read the wallet's address and request signed transactions without ever holding the private keys.
- Wormhole NTT Native Token Transfers (NTT) is a framework by Wormhole that allows tokens to move natively across blockchains without wrapping, preserving their original properties. This reduces fragmentation and improves interoperability between different blockchain ecosystems.