Explore an overview and clear definition of relevant terms commonly used in the extended network of Distributed Ledger Technology (DLT). You can also contribute to the glossary by submitting new terms.
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Asset tokens digitally represent assets such as participations in real physical underlyings, companies, or earnings streams, or an entitlement to dividends or interest payments. In terms of their economic function, the tokens are analogous to equities, bonds or derivatives.
Blockchain is a type of DLT where transactions are recorded with an immutable cryptographic signature called a hash. The transactions are then grouped in blocks and each
new block includes a hash of the previous one, chaining them together, hence why
distributed ledgers are often called blockchains.
Distributed Ledger Technology, a system of electronic records that enables a network
of independent participants to establish a consensus around the authoritative ordering
of cryptographically-validated (signed) transactions. These records are made persistent
by replicating the data across multiple nodes, and tamper-evident by linking them by
cryptographic hashes. The shared result of the reconciliation / consensus process – the
“ledger” – serves as the authoritative version for these records. The blockchain is a
specific form of distributed ledger.
Ether is the native cryptocurrency built on top of the open source Ethereum blockchain,
which runs smart contracts and is an open-source computing platform and operating
Interoperability is the ability of two or more DLT networks or applications to exchange information and to mutually use the information that has been exchanged.
A ledger-based security is a right which, in accordance with an agreement between the
parties, is registered in a securities ledger and may be exercised and transferred to
others only via this securities ledger (art. 973d para. 1 CO).
A non-fungible token is a unit of data stored on a digital ledger which can represent a
unique digital item, often used for collectibles.
Transactions occurring on a cryptocurrency network which move the value outside of the blockchain.
Open source refers to software or other projects with source code that can be viewed, modified, or upgraded by anyone.
A securities ledger according to art. 973d para. 2 CO refers to a ledger of securities based
on a DLT infrastructure.
A security token is a type of digital asset that represents or derives its value from
another, external asset and is issued on top of a third-party blockchain network.
A computer protocol stored and run on a decentralized basis, in accordance with a
previously programmed logic.
A token is a standardized smart contract called by a transaction.
Initial generation of tokens and / or DLT-based digitization of a right or asset, meaning
the configuration of legally relevant information with DLT information.