Glossary
ZK Rollup
A Layer 2 that validates transactions with cryptographic proofs rather than assuming honesty.
A zk-rollup compresses thousands of transactions into a single cryptographic proof and posts it to the main chain. zkSync, StarkNet and Scroll work this way.
The advantage over optimistic rollups is faster finality and no multi-day challenge window, since validity is proven rather than assumed. The cost has historically been heavier computation, which is why proving times were the bottleneck early on.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.