Glossary

The words, without the fog

Short definitions, for readers who already sign, or who want to stop signing blind. Not a course. Internal links.

Airdrop: A token drop, often to reward use of a protocol.; An airdrop is not a salary. It is an allocation, sometimes retroactive, sometimes a points hunt. The risk is not only “the token is worth nothing”. It is also the site that asks for a signature to “claim”. See drainer.
Approval: A lasting permission for a contract to spend your tokens.; On EVM chains, approving a contract is not a payment. It lets the contract come back later. An unlimited approval survives a closed tab. You revoke it (Revoke.cash, an explorer). You do not “disconnect”.
DeFi: Decentralised finance: on-chain protocols, no bank in the middle.; DeFi replaces the counter with a contract. It does not erase code risk, bridge risk, or the interface you sign. TVL measures deposits, not wisdom.
Drainer: A kit that empties a wallet when you sign, not when you “connect”.; A drainer is rented. It profiles the balance, asks for a transfer or an approval, and sends the funds. Connecting a wallet is not enough: a signature is required. Seed phrases are usually not asked. Useless, if you already signed.
EVM: Ethereum Virtual Machine: Ethereum’s model, copied by several chains.; Polygon, BNB Smart Chain, Avalanche, Arbitrum, Base, Fantom speak roughly the same language. An EVM drainer can therefore hit several networks with the same gesture. A revocation is done network by network.
Hardware wallet: A physical device that displays and confirms the transaction off the computer.; It is not a talisman. The box signs what you confirm on its screen. If the screen says “send everything” and you accept, the steel of the vault is worthless. Read the screen, always.
Infostealer: Malware that steals passwords, cookies, sometimes seed phrases, from the machine.; Different from a drainer: here it is not an on-chain signature, it is software dropped by a fake demo or a fake installer. A hardware wallet limits the damage if the seed never touched the PC.
KYC: Know Your Customer: identification required by a regulated provider.; Under MiCA, authorised platforms identify you. That is neither a guarantee against a hack, nor proof that the product is “safe”. It is a counter, with a name and a regulator.
Layer 2 (L2): A chain that executes more cheaply, leaning on Ethereum for security.; L2 fees can be tiny. The risk moves: bridge, sequencer, data availability. “Cheap” is not “no single pipe”.
MiCA: The EU regulation on crypto-asset markets, in force in stages.; MiCA changes the counter: authorisation, white paper, issuance rules for some tokens. It does not ban Bitcoin. It files the intermediaries. A year on, we mostly see KYC and shorter lists, not a “death of crypto”.
Node: A computer that checks and relays the rules of a blockchain.; Without nodes there is no network, only APIs. A newsroom, a wallet, an indexer that “talks to one provider” rediscovers the cloud problem: one pipe, one outage.
Seed phrase: The list of words that recreates the wallet. Who holds it, holds the funds.; No legitimate game, airdrop or “Ledger support” site asks for it. Photographing it, pasting it in a chat, typing it on a fake site: that is handing over the vault. A drainer often does not need it.
Sequencer: The operator that orders a Layer 2’s transactions. One of them, and the chain stops.; On an Arbitrum Orbit-style L2, the sequencer has priority: it orders txs, it posts them to Ethereum. If it stops, the explorer freezes. You can sometimes force inclusion from L1. Not always: a filter can still censor. “Ethereum security” is not “the broker cannot cut the flow”.
Signature: The act that authorises an on-chain move. This is where the trap closes.; Connecting shows an address. Signing moves value, or grants an approval. Read the preview (amount, recipient, infinite permission). Closing the tab after a signature already given revokes nothing.
Solana: A fast chain, outside the EVM, heavily targeted by drainers and memecoins.; Permissions and fees do not work as on Ethereum. A script can leave enough to pay the network and take the rest. Check permissions in the wallet, not only “disconnect”.
Spot ETF: A listed fund that actually holds the asset, not a futures contract.; A spot Bitcoin ETF buys bitcoin and keeps it. A day’s net inflow is not the price. You can see $700 million of inflows and a break of $80,000 the next day: two markets, two clocks.
Stablecoin: A token that aims at $1 (or €1), via reserves or a mechanism.; Stability is a promise, not a law of physics. The issuer, the reserves, frozen addresses: that is centralised risk, even if the token moves on-chain. MiCA looks at it closely.
Starlink: SpaceX constellation: internet from low-Earth orbit.; For a newsroom or a node, it is a backup pipe. For a state, it is a dependency. Orbit has camps, standards, absentees at summits. It is no longer “above the maps”.
TVL: Total Value Locked: the sum deposited in a DeFi protocol.; TVL inflates with token prices. It is not revenue. A protocol can have huge TVL and a fragile bridge. Read who can withdraw, and in how long.
USDe: Ethena’s synthetic dollar, backed by a hedge, not a bank account.; USDe is not a deposit. The advertised yield comes from the market (perp funding, collateral), not a savings book. A neobank that serves it as “everyday dollar” moves that risk into the pocket, the card and the wage. Read the terms, the jurisdiction, what is not insured.
Wallet: Software or a device that holds the keys. Not a bank account.; A wallet “connected” to a site does not send your funds by itself. The connection reveals the address. The signature acts. Browser extension, mobile app, hardware: three attack surfaces, one reflex: sign nothing for a game, a leak or an airdrop that looks too good.