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CROWN & LEDGER
Crypto questions & definitions
Plain-language answers for New York readers under U.S. federal rules. Start with the beginner path; use this page to look up a term or follow a source. Reviewed October 26, 2026. David is not a financial adviser. General education, not personalized financial, investment, tax, or legal advice.
58 answers available.
Ledger: the record, not just a device
A ledger records balances, ownership claims, or activity. It may be maintained by a business, a bank, or a distributed network. Ledger is also a hardware-wallet brand; buying a device from that brand is different from using a ledger.
Blockchain in plain language
A blockchain links batches of records using cryptographic references and network rules. Participants can verify accepted history. It does not establish that an off-chain claim is truthful, and a conventional database may be a better fit for some tasks.
LINK, Chainlink, and a website link
A website link is a destination address. Chainlink is infrastructure for services such as external data and cross-chain communication. LINK is its token. Holding LINK is not ownership of Chainlink and does not make every network or asset connected.
Bitcoin's origins and number of crypto assets
Satoshi Nakamoto published Bitcoin's white paper in 2008; the network began in 2009. Satoshi's identity is not reliably established. There are many other crypto assets; counts vary by what a directory includes, and being listed does not prove quality or usefulness.
Bitcoin, BTC, and a unit of account
Bitcoin names the network and protocol; BTC identifies its asset. The protocol records spendable outputs and authorization rules. A displayed dollar price is a market quote, not a bank promise to redeem BTC for that amount.
Mining, nodes, and proof of work
Bitcoin miners compete to propose blocks using proof of work; full nodes verify blocks against their rules. Mining rewards include protocol issuance and transaction fees. Electricity, hardware, difficulty, and prices affect economics; a mining product does not guarantee profit.
Who can change a blockchain's rules?
Developers may propose and release software, but adoption depends on network participants and the particular governance process. Bitcoin has no single administrator who can guarantee prices or reverse your transfer. Different networks distribute control differently; verify the actual process.
A wallet's job
A wallet helps manage access and authorize activity. Assets are represented on the network, not stored as little files inside the wallet. Recovery, signing, supported assets, and networks vary between products. A familiar logo does not establish that a download is genuine.
Public address versus private key
An address is used to identify a destination or account. A private key authorizes certain actions and must remain secret. An address can reveal financial activity, so public does not mean privacy-free. A public blockchain explorer does not need a recovery phrase.
Custody: who controls access?
With self-custody, you manage the means of authorization and recovery. With third-party custody, a provider controls key operations under its terms. Neither eliminates all risks. Compare recovery ability, key handling, access restrictions, and what happens if the provider fails.
Hot and cold are not the same as self and third-party custody
Hot/cold describes key exposure and signing setup. A hot wallet can be self-custody, and a custodian can use cold storage. A hardware device commonly isolates signing keys; it cannot make a fraudulent recipient safe or replace a sound recovery plan.
Long-term storage versus everyday access
These are different jobs. A person may separate a recovery-planned hardware-wallet account from a small transaction wallet or an eligible exchange balance. This is a model to understand, not an allocation instruction. Account terms and the person's ability to recover access matter.
Recovery phrases, passwords, and recovery designs
A recovery phrase can recreate access for many wallets; a local password usually has a different role. Some products use other recovery systems. Follow the exact product's official process, and never provide secrets to this site, a stranger, or an unsolicited support message.
Public records and financial privacy
Many public networks expose addresses and transaction activity. Those records can be linked to people through other information. Crypto is not automatically anonymous. Different protocols and privacy tools work differently and remain subject to applicable law.
New York access checks
Use NYDFS's current regulated-entity information and the provider's specific product terms. A business listing does not prove that every token, network, yield feature, or loan is available. Do not use false residency or a VPN to evade restrictions.
Kraken and a New York reader
Kraken's current geographic restrictions exclude New York residents. We include it for comparison and general product education, not as a New York onboarding route. Check its latest official restrictions rather than an old tutorial.
Coinbase availability is product-specific
Coinbase, Inc. appears in NYDFS's regulated-entity information. A reader still needs to verify account eligibility, the specific asset and network, and the current product terms. A trading account, self-custody wallet, staking feature, and loan are different products.
Coinbase crypto-backed borrowing in New York
Coinbase's current loan introduction excludes New York from its U.S. eligibility. Its lending technology does not override that restriction. We therefore do not present Coinbase Borrow as an available loan route for a New York resident.
Buying, selling, and bank cash-out are separate
A purchase acquires the asset under a provider's terms. A sale exchanges it for another balance. Withdrawing dollars to a bank is a further step with its own rules and timing. A pending deposit, order, or displayed balance may not be available to withdraw.
Fees, spread, APR, and APY
A transaction can have platform costs, a quoted-price spread, withdrawal charges, and network fees. APR and APY describe rates using different conventions; APY includes an assumed compounding effect. Variable rates and incentives are not guaranteed future returns.
Asset name, network, and memo/tag
The sender and recipient must support the exact route. A token can exist on several networks, and an address format alone does not establish compatibility. Some deposits require a memo or destination tag in addition to an address.
An incorrect transfer or missing deposit
Stop and verify the network, transaction ID, destination, and provider instructions. Some mistakes cannot be recovered; some providers may have limited recovery processes for particular cases. Only contact official support independently. Never assume a second payment or a recovery stranger can fix it.
Block time, confirmation, and finality
Block time concerns block production. Confirmations and finality concern accepted history and settlement under network rules. An exchange may wait longer before crediting a deposit. No single transfer time applies to all chains and services.
An explorer is a viewer, not a wallet connection
An explorer displays public network records. It can help inspect a transaction ID or address, but cannot reveal a lost recovery secret or prove that an investment offer is legitimate. Opening an external explorer shares the lookup with that service.
What if a provider stops withdrawals or fails?
Recovery depends on custody arrangements, contracts, applicable law, and the actual failure. A license or large brand is not a guarantee of reimbursement. Preserve records, use official complaint channels, and do not pay a stranger who promises to unlock funds.
How much should someone invest?
This site cannot determine a suitable allocation for an individual. Goals, essential expenses, debts, time horizon, and ability to withstand loss matter. An example amount is for arithmetic only; choosing not to buy is a valid learning outcome.
Is this the right time to buy?
No lesson can identify a guaranteed entry or forecast a profitable exit. Compare a claim with dated evidence and your own circumstances. A scheduled purchase strategy does not remove the risk of loss. Learning now does not create an obligation to buy now.
Trading versus holding
Trading adds repeated execution decisions, costs, records, and exposure to rapid moves. Holding still carries price, custody, and access risks. A successful hypothetical exercise does not establish a reliable strategy or justify leverage.
Federal and New York tax education
The IRS generally treats digital assets as property. Sales, exchanges, spending, and certain receipts raise different reporting questions. Federal guidance does not settle every New York issue. Keep complete records and use current official guidance or a qualified professional for personal treatment.
NFTs versus interchangeable units
An NFT identifies a distinct token record. It does not automatically convey copyright, legal title to an off-chain asset, or a right to ongoing hosting. Read the actual license and rights. Interchangeable units and unique tokens serve different purposes.
Ethereum and ETH
Ethereum is a network for programmable applications and transactions. ETH is its native asset, used in fees and proof-of-stake security. Owning ETH is not company equity. An Ethereum-compatible address or app can also appear on other networks, so always check the chain.
Can ETH still be mined on Ethereum Mainnet?
No. Ethereum Mainnet changed from proof of work to proof of stake in September 2022. Laptop, Mac, GPU, hashrate, difficulty, or cloud-mining instructions for mining current mainnet ETH are outdated. Other networks may have different rules.
Staking is not an insured savings account
Staking participates in certain proof-of-stake systems directly or through a service. Rewards, fees, access delays, penalties, and provider risks vary. A quoted rate is not guaranteed, and a feature shown in an app may not be available to New York residents.
Smart contracts and applications
A smart contract is code executed under a network's rules. An application can use such code alongside websites, administrators, price feeds, and other services. Automated does not mean safe, legally enforceable in every circumstance, or free of centralized dependencies.
Gas, gas limits, and native fee assets
Gas measures work in systems such as Ethereum. A gas limit constrains the amount of work a transaction can use; a fee setting concerns payment. A failed transaction can still incur charges. A wallet balance in a token does not necessarily supply the network's fee asset.
What backs a crypto asset?
Ask what enforceable claim, reserve, or redemption right actually exists. ETH is not a promise to redeem for dollars or gold. A stablecoin, fund share, deposit, and native network asset can have very different obligations and risks.
Nodes, clients, and blockchain software
A client implements network rules and communicates with other participants. Running a node is different from mining or validating for rewards. Software can be public or proprietary, and participating in one network does not confer access to every other one.
Public networks, private ledgers, and DLT
Distributed ledger technology is broader than blockchain. A public network permits participation under its rules; a private or permissioned system restricts some roles. Compare who controls access, can alter rules, or can censor activity rather than assuming every ledger is decentralized.
Zero-knowledge proofs in plain language
A zero-knowledge proof can demonstrate that a claim meets a defined condition without disclosing all underlying information. It is a cryptographic tool, not an automatic privacy guarantee for an entire application. Implementations and what they actually conceal matter.
Programming and blockchain businesses
Developers build clients, contracts, interfaces, and infrastructure. Solidity is one language used for EVM contracts; it is not the language for every network. A company using blockchain still has business, legal, governance, and execution risks.
Roadmaps, upgrades, and historical names
An old upgrade name describes a past change, not today's complete roadmap. Proposed work can change or be delayed. Verify status in the network's current documentation, and distinguish a released feature from a research proposal.
Bitcoin or Ethereum: which is better?
Better depends on the task and the assumptions you accept. Compare settlement, programmability, security design, fees, governance, and ecosystem needs. A technical comparison cannot establish the best personal investment or predict relative returns.
DeFi, Aave, and Morpho
DeFi applications use blockchain-based contracts for activities such as trading or credit. Aave and Morpho are examples of lending infrastructure, not bank accounts or blanket New York recommendations. Frontends, protocols, markets, curators, and assets can each introduce separate risks.
Supplying assets versus borrowing against collateral
A supplier makes assets available under a product's terms and may receive variable yield. A borrower incurs debt and posts collateral where required. Do not confuse the advertised supply APY with the borrow cost, or an asset you own with one pledged to a lender.
Loan-to-value and liquidation
LTV compares debt with collateral value. Falling collateral or growing debt can increase the ratio and trigger a product's liquidation rules. A margin alert is not a guarantee of time to react. Fees, asset prices, and thresholds must be read for the exact market.
Does a wallet pay APY or make a loan?
A wallet may expose a staking, lending, or third-party earn service. The return and borrowing terms belong to that underlying activity. A plain storage wallet has no inherent interest rate. Check the exact asset, chain, provider, variable rate, fees, risks, and New York eligibility before downloading or depositing.
Bitcoin-backed borrowing versus a home mortgage
A loan secured by crypto and a mortgage secured by real estate are different obligations; some products may combine collateral or finance a down payment. Verify the lender, New York lending authority, written terms, repayment ability, and liquidation exposure. No New York-eligible Bitcoin mortgage provider has been verified on this site.
Tokenized gold, bonds, shares, or property
Tokenization records a representation or right using a digital system. The token may or may not carry direct legal ownership, redemption, income, or voting rights. Check the issuer, underlying assets, governing documents, custody, valuation, and transfer restrictions.
Will crypto replace all money?
That outcome is uncertain. Existing bank deposits are already largely digital. Public crypto, private stablecoins, tokenized deposits, and central-bank money have different issuers and claims. Adoption or a pilot does not establish universal replacement or make a related token a profitable investment.
Scams and fake recovery offers
Guaranteed returns, forced unlocking payments, secret requests, and impersonated support are warning signs. Preserve relevant evidence privately, stop additional payments, and use official help and reporting channels. No Crown & Ledger lesson requires a wallet connection, deposit, private key, or recovery phrase.
Bonds and debt claims
A bond represents a debt obligation with defined terms. Its issuer, payment promises, maturity, credit risk, and tradability matter. Recording a bond as a token does not remove the possibility of default or change the legal terms by itself.
Crypto fund exposure versus holding the asset
A fund share provides exposure under the fund documents. It is not the same as holding transferable crypto in a self-custody wallet. Read fees, custody, trading arrangements, and redemption terms; a retail holder generally cannot treat a fund share as an ordinary crypto withdrawal.
Gold and a token referring to gold
A gold-related token may be a claim against an issuer or custodian rather than direct possession of metal. Ask who owns the bars, what evidence supports reserves, whether redemption exists, its costs, and what happens if the provider fails. A token name alone establishes none of these rights.
Real estate, fractional interests, and tokens
A property-related token may represent shares in an entity, debt, another contractual claim, or no enforceable property ownership at all. Verify title, issuer documents, distributions, fees, transfer restrictions, and state law. A blockchain entry alone does not settle real-estate title.
Oracles and claims about real-world assets
An oracle supplies external information or computation to a blockchain application. The application still depends on source quality, update rules, and design. A price feed is not an audit of an issuer, proof of legal title, or a guarantee that assets can be redeemed.
Cross-chain messaging is not universal compatibility
A service such as Chainlink CCIP supports defined networks, routes, and token mechanisms. Check the current directory and the exact application. It does not make arbitrary transfers between every network safe or supported.
Liquidity and access to funds
Liquidity concerns the ability to transact or withdraw under actual market conditions. A quoted balance, APY, or collateral value does not promise an immediate exit at that price. A lending vault can face constraints when deposited assets are borrowed or allocated.
Sources explain particular claims, not a guarantee of correctness for every service. Provider eligibility, rates, networks, and law can change. Ask a question or request a correction.
From a definition to a practical next step
Knowing a word is the start. Choose one exercise to explain it in your own words. Use fictional information; no wallet connection or purchase is needed.
| Term you are researching | What to practice | Next step |
|---|---|---|
| Blockchain / ledger | Understand what a record can establish | Begin with ownership and records |
| Wallet / custody / recovery | Draw who controls each key and how recovery works | Practice a wallet map |
| Network / address / fee | Review a fictional receiving checklist | Practice before transferring |
| Stablecoin / USDC / APY | Separate a token balance from a rewards or lending arrangement | Try the paycheck worksheet |
| Collateral / LTV | See how falling collateral changes a loan ratio | Open the calculators |
| Tokenization / oracle / interoperability | Check which relationship is documented and whether it is a pilot | Explore connections from the homepage |
Then return to Crypto without costly mistakes for a short lesson and a self-check. An exercise result is not a certification or instruction to invest.
Optional technical questions
The searchable answers above cover the everyday terms. These additional questions expand the technical topics raised in the linked reading; they are optional for the beginner path.
Enterprise Ethereum Alliance: what role does it play?
The EEA is an organization supporting institutional Ethereum work, research, and collaboration. It is not the Ethereum network, a guarantee that a member’s product is safe, or a regulator approving an investment. Membership alone does not establish token ownership rights.
Ethereum addresses: why is the network still important?
Ethereum addresses commonly begin with 0x, but other EVM networks use similar-looking addresses. The address does not establish which network a recipient supports. Both externally controlled accounts and contract accounts exist, so do not assume every address is a person’s wallet.
How could someone receive ETH without mining it?
ETH can be received as payment or acquired through an eligible service. Certain proof-of-stake activities may provide rewards, with costs and risks; Ethereum Mainnet no longer uses mining. New York availability and the tax treatment of an actual activity require separate checks. A lesson does not promise income.
Why use a blockchain instead of an ordinary database?
A shared verification process can help parties coordinate records under defined rules. It also creates tradeoffs in privacy, control, cost, and performance. It cannot establish that an off-chain gold bar or property claim is truthful by itself. Ask what problem the network solves before assuming every record needs a token.
zk-SNARKs: what does the name refer to?
The abbreviation refers to a zero-knowledge succinct non-interactive argument of knowledge, a type of cryptographic proof. It can verify a defined claim without disclosing all of its underlying information. The surrounding application may still reveal other data; the acronym is not a complete privacy guarantee.