Fiat
Government-issued currency not backed by a physical commodity, used as legal tender in digital asset trading.
What is Fiat?
Fiat currency, such as the US Dollar (USD) or Euro (EUR), derives value from government decree and public trust rather than intrinsic worth like gold, enabling central banks to control supply via monetary policy.
Stablecoins like USDC peg to fiat at 1:1, backed by reserves audited quarterly (e.g., Circle holds $35 billion in USD equivalents), bridging traditional finance to DeFi by minimizing volatility for cross-border transfers costing under $0.01 versus SWIFT’s $25 average.
Related Terms
SegWit (Segregated Witness)
SegWit (Segregated Witness) is a Bitcoin protocol upgrade that separates signature data from transaction data to increase block capacity and improve transaction malleability.
Jupiter on Solana
A decentralized exchange aggregator on the Solana blockchain that routes trades across multiple DEXs to optimize prices and minimize slippage for SPL token swaps.
Convertible Preferred Stock
Preferred stock convertible into common shares, blending dividend income with equity conversion potential.
Depth Chart
A visual graph depicting the cumulative buy and sell orders across price ranges in an order book.
Casper FFG
A proof-of-stake consensus protocol combined with LMD-GHOST to determine the head of the Ethereum Beacon Chain.
Conversion Ratio (MSTR)
The number of common shares receivable per convertible security upon exercise.