Glossary

Airdrop:  a way for blockchain projects to distribute free tokens or NFTs to users, usually to promote engagement or reward early supporters.

Blockchain:  a digital ledger that records transactions securely and transparently. It’s like a shared database that everyone can trust because no one can change past records without everyone else agreeing.

Blockchain Explorer:  a website or tool that lets you look up transactions, wallet addresses, and data recorded on the blockchain. It’s like a public search engine for blockchain activity.

Bridge:  a tool that allows you take your ELMT digital rewards, which currently exist and only have utility on the Element Blockchain, and exchange them for ELMT ERC-20 tokens on the Ethereum network.

Carbon Offset:  represents a measurable reduction of greenhouse gases. 

Cryptocurrency:  a type of digital money that uses blockchain to verify transactions. Bitcoin and Ethereum are examples, but Element also has its own token (ELMT) for use within its ecosystem.

DAO:  stands for Decentralized Autonomous Organization. It’s a community-led group that makes decisions collectively using blockchain-based voting, rather than through a traditional company structure.

Decentralization:  no single person or company controls the network. Instead, control is distributed across thousands of computers around the world, making the system more secure and transparent.

Decentralized Application (DApp):  an app built on blockchain that runs without central servers. Users interact directly with the blockchain instead of going through a company’s servers.

DeFi:  stands for Decentralized Finance — a system of financial tools and services built on blockchain that let people lend, borrow, earn interest, or trade without using a bank.

DGF: (Digital Governance Framework), a set of rules for managing the Element Blockchain. These rules have been adopted by and agreed to by all Node owners comprising the Element Node Network, pursuant to a charter that was duly ratified. The Element Node Network consists of Element Node Owners who have purchased a license to an Element Node. Node licenses include rights and responsibilities within the Element DGF, such as the right to vote on governance proposals. The Element DGF is responsible for governance of the Element Blockchain, the features of the Distribution Algorithm, the infrastructure, and other common resources.

Digital Rewards:  digital rewards are distributed to Element node owners on the Element blockchain called ELMT-P. It can be used for transactions, rewards, and participation in Element-related projects. Often compared to a digital currency available only within the Element ecosystem.

ERC-20 Tokens:  Stands for Ethereum Request for Comment 20 and is a set of rules that tokens must follow to be compatible with the Ethereum ecosystem since ERC-20 tokens don't have their own blockchain and exist/operate on the Ethereum network. Unlike unique items (NFTs), ERC-20 tokens are fungible. This allows them to be easily traded and integrated with a wide range of applications and services. All transactions involving ERC-20 tokens require a fee paid in ETH to cover the computational cost on the network. You need to have some ETH in your wallet to perform any action with ERC-20 tokens.

Ethereum/ETH:  the main token housed on the Ethereum blockchain. As with any other cryptocurrency, ETH can be used as payment directly to another person or entity without the need for a centralized intermediary, such as a bank.

Fungible:  something is capable of being exchanged for another identical item of equal value, such as a dollar bill or a bushel of wheat. It is an adjective used for goods or assets that are not unique and can be freely interchanged or replaced with another of the same kind, making them substitutable and interchangeable.

Gas/Gas Fees:  small payments made to cover the cost of processing transactions on a blockchain (like Ethereum). They pay the computers that do the work to verify and record transactions.

Governance:  the way that decisions get made. The governance of a blockchain is typically decentralized and community-driven.

KYC:  stands for Know Your Customer. It’s the process of verifying your identity before you can use certain crypto services. It helps prevent fraud and ensure compliance with financial regulations.

Metaverse:  a shared digital world where people can interact, create, and own digital assets — often using Web3 tools like NFTs and blockchain-based identities.

Minting:  the process of creating a new NFT or token and recording it on the blockchain. Once minted, it becomes part of the permanent blockchain record. When NFTs are minted on the Element Blockchain, this action typically refers to your NFT being created and sent to your unique wallet.

NFT:  stands for Non-Fungible Token. It’s a unique digital item stored on the blockchain — like art, music, collectibles, or even proof of ownership for something physical. Each NFT is one of a kind.

Node:  a computer that helps run and maintain a blockchain network by validating transactions and storing data. In the Element ecosystem, a license to run Smart Nodes play a key role in earning rewards and supporting transparency.

"On-Chain":  When something is said to be "on-chain" it means the data or transaction is permanently stored on the blockchain. It can’t be edited or deleted, ensuring transparency and trust.

Proof-of-Stake:  a method blockchains use to agree on what's true and relies on users locking up tokens to help verify transactions.

Proof-of-Work:  a method blockchains use to agree on what's true. Proof-of Work uses computing power (like Bitcoin). 

Private key:  like your password — you must keep it secret. Anyone with your private key can access your assets.

Public key: like your email address — you share it with others so they can send you tokens or NFTs.

Smart Contract:  a self-executing program on the blockchain that runs automatically when conditions are met. It removes the need for middlemen by enforcing rules through code. Some smart contracts used on the Element Blockchain could be activating an NFT or bridging rewards to ERC-20 tokens.

Smart Node:  a digital license that helps power Element’s blockchain network. Operating a Smart Node can earn you daily digital rewards as part of network participation.

Stablecoin:  a cryptocurrency designed to keep a stable value, often pegged to something like the U.S. dollar. It makes digital payments easier without the price swings of other crypto assets. (USDC)

Staking:  locking up your tokens to help support a blockchain network. In return, you often earn rewards or yield for contributing to network security and operations.

Token:  a digital asset that lives on a blockchain. It can represent currency, ownership, access, or even real-world items like gold or carbon credits.

Tokenized Asset:  a real-world item — like gold, property, or carbon credits — that has been converted into a digital token on the blockchain. This allows it to be traded or tracked more easily.

Transaction Hash/TX ID:  a unique string of characters that is given to every transaction that is verified and added to the blockchain.  In many cases, a transaction hash is needed in order to locate funds.  It commonly appears at the top of the page when viewing your transaction through a block explorer website, or can be found by copying the URL from that same page.

VPS:  (Virtual Private Server) that people can rent for a fixed monthly price. A VPS provider takes a large, powerful, computer and splits it into smaller, less powerful, virtual computers. People can customize their computers based on the needs of the node network. Pricing can vary based on provider, but a reputable provider can offer much better uptime than hosting at home.

Wallet:  a digital tool that lets you store, send, and receive cryptocurrencies or NFTs. Think of it like a secure online bank account, but one that only you control with your private keys instead of being managed by a central bank.

Web3:  the next phase of the internet — one built on decentralization and ownership. Instead of big companies controlling data, users own and control their own digital assets and identities using blockchain technology. Element uses Web3 tools like blockchain, NFTs, and smart contracts to make resource data transparent and empower individuals to participate in global sustainability systems.

Wallet Address:  your unique identifier on the blockchain — like your digital mailbox for sending or receiving tokens and NFTs.

Disclaimer: ELMT is a digital reward distributed through the Element node network according to predetermined smart contracts. ELMT is designed to have utility on the Element platform for the purchase of Element products and services, although other cryptocurrencies may be used as well.  ELMT is not available for purchase from Element United. ELMT is not an investment product and may never have any value.  Element node owners should not expect to recognize any value from ELMT other than its utility with Element.  Although Element plans to undertake efforts to become a successful business, it is highly likely that ELMT’s value will not correlate with the success or failure of Element.