Research · Trading Glossary
Trading Glossary
Plain-English definitions of the trading terms that start with V.
V
- Validator
- A participant in proof of stake that stakes collateral and performs consensus duties: proposing blocks and attesting to those proposed by others.
- Validity Proof
- A succinct cryptographic proof that a state transition was executed correctly.
- Validium
- A design using validity proofs for correctness while keeping transaction data off the Layer 1, reducing cost at the expense of data availability guarantees.
- Vanity Address
- An address deliberately generated to contain a desired character pattern.
- Vault
- A contract that accepts deposits and executes a defined strategy on the pooled capital.
- Verifiable Compute
- Producing cryptographic proof that an off-chain computation was executed correctly.
- Verifiable Credential
- A cryptographically signed attestation that can be independently verified without contacting the issuer.
- Verifiable Delay Function (VDF)
- A function requiring a fixed amount of sequential computation to evaluate but which can be verified quickly.
- Verifiable Random Function (VRF)
- A function producing a random output together with a proof that the output was generated correctly. Used for validator selection and fair lotteries.
- Verified Contract
- A contract whose published source code has been confirmed to compile to the deployed bytecode, allowing public inspection.
- Vesting
- The schedule over which allocated tokens are released.
- Viewing Key
- A key permitting a designated party to inspect otherwise private transaction details, enabling selective disclosure for audit or compliance.
- Virtual Asset
- The term preferred by international regulators (notably FATF) for digital representations of value that can be traded or transferred.
- Virtual Asset Service Provider (VASP)
- FATF's term for businesses conducting virtual asset activities on behalf of others: exchanges, custodians, transfer services.
- Volatility
- The magnitude of price fluctuation over time, usually expressed as annualized standard deviation.
- Volition
- A hybrid model letting users choose per transaction between on-chain and off-chain data availability.
- Volume-Weighted Average Price (VWAP)
- An execution benchmark and strategy weighted by traded volume.
- Vote-Escrowed Tokenomics (ve-model)
- A design in which users lock governance tokens for a fixed term in exchange for boosted rewards and amplified voting power, aligning holders with long horizons.
- Voting Power
- A participant's weight in a vote, generally proportional to tokens held, delegated, or locked.
- Vyper
- An alternative EVM language emphasizing simplicity and auditability.