> ## Documentation Index
> Fetch the complete documentation index at: https://circle-devdocs-test-ai-codegen-component.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Definitions of common terms used within the crypto and digital asset industry

## Airdrop

A marketing tactic in which a company sends tokens of their cryptocurrency into
the wallet address of a member of a blockchain at no charge, to raise awareness
of their cryptocurrency.

## Blockchain

The fundamental basis of cryptocurrency. A blockchain is a digital ledger of
transactions stored simultaneously on multiple nodes of the same network. Unlike
traditional banking and payments solutions, a blockchain's open and
decentralized network allows for instant, low-cost transactions where anyone can
participate, while securing transactional history by cryptography and social
consensus.

## Burn

To remove tokens from circulation permanently. See also [Mint](#mint).

## Chain

A short-hand way to reference a blockchain. See also [blockchain](#blockchain).

## Coin

A short-hand way to reference a cryptocurrency (such as ETH) running on a given
blockchain, or a single unit of that cryptocurrency. (See also [Token](#token)).

## Custody

The capacity of a third-party or an individual to retain and safeguard a user’s
assets in a wallet address. Custody solutions can be either custodial or self
custody, depending on which entity has control over the private keys of the
wallet address. (See also [Private Keys](#private-key)).

## ETH

The native cryptocurrency built into the Ethereum blockchain that is used to pay
gas (or network fees) and can be staked to secure the network. (See also
[Gas](#gas).

## Ethereum

A public blockchain network with smart contract functionality.

## EVM (Ethereum Virtual Machine)

A virtual machine that executes code in a precise manner to create smart
contracts on Ethereum. Many other blockchain networks are based on the EVM and
are known as EVM-compatible blockchains.

## Faucet

A developer tool that issues testnet tokens of no monetary value to be used for
testing payment flows and interactions with smart contracts on blockchain test
networks.

## Gas

A network fee charged in ETH by EVM-compatible blockchains to execute
transactions. Non-EVM blockchains such as Solana charge network fees in SOL. End
users pay the fee by default, although developers can sponsor the fee to provide
a simpler user experience.

## Mint

To generate new tokens and put them into circulation (see also [Burn](#burn)).

## NFT

A non-fungible token is a unique digital identifier that is recorded on a
blockchain, and is used to certify ownership and authenticity. It cannot be
copied, substituted, or subdivided.

## Onchain

A short-hand way to reference "on the blockchain". Often used to denote an
activity that takes place on a blockchain.

## Primitive

A fundamental building block that developers can build on top of on a blockchain
network.

## Private key

An encrypted password that safeguards a user’s holdings in a wallet address.
This can take the form of a data string of letters and numbers 64 characters or
longer. A user (or a user's app) must present a private key to authorize a
transaction. Translated to the world of traditional finance, the private key
could be compared to a personal signature or PIN code.

## Public key

A public-facing address of a user’s wallet that must be shared to receive funds.
Every wallet address has both a private key and a public key. Translated to the
world of traditional finance, the public key could be compared to an account
number or ATM card.

## Smart contract

A protocol on a blockchain network that is facilitated, verified, or enforced
automatically with no third-party approval or interaction required.

## Stablecoin

A cryptocurrency that is pegged to an offchain reserve asset like the US dollar
or the euro. Stablecoins are designed to provide a sound store of value and
facilitate payments in a familiar currency. Circle issues two stablecoins, USDC
and EURC, which reflect 1:1 the value of the US dollar and the euro
respectively.

## Testnet

A blockchain network used for testing purposes by developers, similar to a
staging environment. A testnet will operate just like its corresponding mainnet
(similar to a production environment), but the transactions on a testnet use
tokens of no monetary value.

## Token

A cryptocurrency running on a given blockchain, or a single unit of that
cryptocurrency. (See also [Coin](#coin))

## USDC

A US dollar-backed stablecoin issued by Circle on public blockchain networks.
USDC is fully reserved and can always be exchanged 1:1 for US dollars.

## Wallet

A software or hardware device that is designed to hold and safeguards a user’s
wallet address containing their digital assets (e.g. tokens or NFTs).

## Wallet address

A data string that identifies a location where digital assets are stored on a
public blockchain. Similar to a public key, however a public key serves to
facilitate transactions for a wallet address.