# Glossary
{% hint style="success" %}
**Note**: The examples in this document use **BNB Chain** as a reference, but they apply equally to all **EVM-compatible chains**, including Base, Ethereum Mainnet, X Layer, Plasma, and other Layer 2 solutions.
The underlying logic and interaction methods across these networks are consistent. You simply need to substitute the **network configuration** and **native token** corresponding to the chain you are using to apply the concepts and definitions explained in this guide.
{% endhint %}
### π― Basic Concepts
| Term | Description |
| ------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- |
| Transaction (Tx) | An on-chain state-changing operation (transfer / contract call). |
| **Transaction hash (Tx Hash)** | **The unique identifier of a transaction, used to query its status.** |
| Nonce | The count of transactions an account has sent; an unconfirmed transaction can be replaced using the same Nonce + higher Gas. |
| Gas / Gas Price / Gas Limit | Execution fee / price cap; common unit is Gwei. |
| BNB units | 1 BNB = 10^9 Gwei = 10^18 Wei. |
| RPC node | The entry point for interacting with the chain (HTTP/WS). |
| Confirmations | The number of subsequently added blocks; the more confirmations, the safer. |
| EOA / Contract account | Externally Owned Accounts are controlled by private keys; contract accounts are controlled by code. |
### π Tokens and Standards
| Term | Description |
| -------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **BEP-20** | **BSC fungible token standard (similar to ERC-20).** |
| **BEP-721 / 1155** | **NFT and hybrid standards (similar to ERC-721/1155).** |
| BEP-2 (Beacon Chain) | Token standard of BNB Beacon Chain (non-EVM), not compatible with BEP-20 and requires bridging to convert. |
| WBNB (Wrapped BNB) | Wraps native BNB into a BEP-20 token for easier contract interaction. |
| Decimals | Token precision, commonly 18. |
| Mint / Burn | Increase / destroy token supply. |
| BEP-95 (fee burn) | The network layer burns part of the Gas fees in real time, creating a deflationary mechanism for BNB (independent of token contracts). |
| Tokenomics | Token economic design such as tax rates, allocation, unlocks, etc. |
### πΉ Transactions & Approvals
| Term | Description |
| ----------------------------------------------- | ------------------------------------------------------------------------------ |
| Approve / Allowance (authorization / allowance) | Allows a contract to spend your tokens on your behalf; can be revoked anytime. |
| Permit (EIP-2612) | Authorize with a signature, saving one on-chain approve. |
| Slippage | The tolerable range of price movement. |
| Replace transaction (Speed Up / Cancel) | Replace an unconfirmed transaction by using higher Gas and the same Nonce. |
| Revert | Execution fails but still consumes Gas. |
| Batch / Multicall | Execute multiple operations at once. |
### π DEX and Liquidity (AMM)
| Term | Description |
| ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- |
| AMM | Automated market-making model (e.g., constant product), no order book required. |
| Liquidity pool (LP Pool) | Two assets are injected in proportion for use in trading. |
| LP token | Represents your share of the pool and right to fee earnings. |
| Router / Factory | The swap entry and the contract that creates trading pairs. |
| Multi-hop | Routing through multiple pools to get a better price. |
| Price impact | The immediate impact your order size has on the pool price; the larger the impact, the more the execution deviates from expectations. |
| Impermanent loss (IL) | Potential loss from market making compared to holding a single asset. |
### π‘οΈ Security Must-reads
| Term | Description |
| --------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Mnemonic / Private key** | **The root credential for assets; never screenshot / paste / upload it.** |
| **Unlimited approval risk** | **Approving the maximum may be stolen; it's recommended to approve limited amounts and revoke periodically.** |
| Max transaction / Wallet limits (MaxTx / MaxWallet) | Some tokens set limits per transaction and per-address holdings; exceeding limits can cause failures or inability to sell. Always confirm current values against limits before placing an order. |
| Rug Pull | Withdrawing LP or minting and selling causing a crash. |
| Blacklist / Tax rate / Trading switch | Admins can change these β check contract permissions. |
| Upgradable proxy | Logic contracts can be swapped; require multisig + timelock. |
| Fake contract addresses | Only trust authoritative sources and official announcements. |
| MEV / Sandwich | Being sandwiched due to excessive slippage. |
| Airdrop / Dusting attack | Small unknown token transfers try to induce you to interact or approve; do not interact with or approve tokens from unknown sources. |
{% hint style="info" %}
**Minimum Self-CheckοΌ**
* Is the contract verified?
* Can permissions change tax / blacklist / pause / mint?
* Is the LP locked?
* Is there multisig + timelock?
{% endhint %}
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