A traditional cryptocurrency exchange operated by a company that custodies user funds and matches orders on internal systems. Examples: Coinbase, Binance, Kraken. CEXs offer fiat on/off ramps, high liquidity, and familiar UX but require KYC and trust in the operator. Users deposit crypto and trade against the exchange's internal ledger, not directly on-chain.
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A traditional cryptocurrency exchange operated by a company that custodies user funds and matches orders on internal systems. Examples: Coinbase, Binance, Kraken. CEXs offer fiat on/off ramps, high liquidity, and familiar UX but require KYC and trust in the operator. Users deposit crypto and trade against the exchange's internal ledger, not directly on-chain.
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Wallets, signing flows, dApps, and key management concepts.
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CEX (Centralized Exchange) (cex) Category: Web3 Definition: A traditional cryptocurrency exchange operated by a company that custodies user funds and matches orders on internal systems. Examples: Coinbase, Binance, Kraken. CEXs offer fiat on/off ramps, high liquidity, and familiar UX but require KYC and trust in the operator. Users deposit crypto and trade against the exchange's internal ledger, not directly on-chain. Aliases: CEX Related: DEX (General Concept)
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A decentralized exchange allowing peer-to-peer token trading without a centralized order book or custodian. Users trade directly from their wallets. DEXs use automated market makers (AMMs) or on-chain order books. Advantages: no KYC, self-custody, censorship-resistant. Disadvantages: potential for higher slippage, smart contract risk, and MEV extraction.
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A decentralized exchange allowing peer-to-peer token trading without a centralized order book or custodian. Users trade directly from their wallets. DEXs use automated market makers (AMMs) or on-chain order books. Advantages: no KYC, self-custody, censorship-resistant. Disadvantages: potential for higher slippage, smart contract risk, and MEV extraction.
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The vision of a decentralized internet built on blockchain technology, where users own their data, identity, and digital assets. Web1 was read-only (static pages), Web2 is read-write (platforms like social media), Web3 is read-write-own (permissionless, user-sovereign). Web3 applications use wallets instead of logins and smart contracts instead of centralized servers.
An application with its backend logic running on a blockchain as smart contracts rather than centralized servers. dApps typically have a traditional web frontend that interacts with on-chain programs via RPC. Users authenticate with wallets instead of username/password. Examples: Uniswap (Ethereum DEX), Jupiter (Solana DEX), Magic Eden (NFT marketplace).
Software or hardware that manages cryptographic keys and enables users to sign transactions, view balances, and interact with dApps. Hot wallets (Phantom, Solflare, Backpack) are internet-connected for convenience. Cold wallets (Ledger, Trezor) store keys offline for security. Wallets don't actually 'hold' tokens—they hold the private keys that control on-chain accounts.
A 12 or 24-word human-readable backup of a wallet's master private key, generated using BIP-39 standard. The seed phrase can deterministically regenerate all derived keypairs (BIP-44 derivation paths). Losing the seed phrase means permanently losing access to all associated accounts. Never share, photograph, or store seed phrases digitally in plain text.