The investor's guide
Welcome to our ChainEcos glossary. Whether you’re an individual investor, a financial professional or simply curious about Web3, this page is designed to help you understand the key terms of the crypto, Web3, blockchain and DeFi ecosystems, as well as traditional finance and investment in the broadest sense.
Glossary | Web3, Crypto & DeFi
Blockchain: Distributed ledger technology that enables transactions to be recorded transparently, securely and immutably. It is the basis of crypto-assets.
Find out more about blockchain
Crypto-assets: Digital assets based on the blockchain, including cryptocurrencies such as Bitcoin or Ethereum, but also stablecoins, NFTs or governance tokens.
DeFi (Decentralized Finance): A set of autonomous financial protocols operating on the blockchain, without intermediaries, enabling assets to be borrowed, lent or exchanged in an automated fashion.
Token: A digital asset created on a blockchain. It can represent a unit of value, a right of governance, a share in an asset or a utility token in a protocol.
Stablecoin: Cryptocurrency backed by a stable value (often a fiat currency such as the euro or the dollar). Example: USDC, USDT.
Wallet: Digital wallet for storing, sending and receiving crypto-assets. It can be software (hot wallet) or physical (cold wallet).
Staking / Yield Farming: DeFi investment methods for generating returns via cryptocurrency staking or participation in protocol liquidity.
NFT (Non-Fungible Token): Unique token representing a digital asset (artwork, music, virtual object), non-interchangeable with any other token.
Tokenization: Process of transforming an asset (real estate, share, work) into a digital token that can be split up and exchanged on the blockchain.
Find out more about tokenization
Web3: New generation of the web based on decentralization, data ownership and direct user interaction via blockchain.
Airdrop: Free distribution of tokens to certain users based on criteria of activity or participation in a community.
Seed phrase: Cryptographic key enabling access to a wallet. The seed phrase is a sequence of words that can be used to regain access to a wallet.
TVL (Total Value Locked): Total amount of assets locked in a DeFi protocol. An indicator of popularity and confidence.
APY (Annual Percentage Yield): Annual yield expressed as a percentage, taking compound interest into account. Indicates the profitability of a crypto investment over one year.
Glossary | Funds, compliance, real estate, savings & other investments
Investment funds & regulated vehicles
Regulated funds: Investment funds supervised by the financial authorities (AMF, CSSF, etc.), guaranteeing a clear legal framework, investor protection and enhanced transparency requirements.
OPCVM (Organisme de Placement Collectif en Valeurs Mobilières): Funds open to the public, investing in a diversified portfolio of financial securities. Regulated in Europe.
FIA (Fonds d’Investissement Alternatif): Funds not covered by the UCITS Directive. More flexible, but often reserved for sophisticated investors.
Specialized professional funds (FPS): Reserved for professional investors, these funds can invest in a wide range of assets, with lighter regulatory constraints.
FCPR / FCPI / FIP: Funds specializing in unlisted investments, often used as part of a tax exemption strategy (SMEs, innovation, regions).
SICAV / FCP: Two legal forms of mutual fund. SICAVs have legal personality, FCPs do not. Both allow collective investment in financial securities.
Compliance & regulation
AML (Anti-Money Laundering): A set of procedures designed to combat money laundering. Mandatory for financial institutions.
KYC (Know Your Customer): Procedure for verifying a customer’s identity, essential for complying with current regulations.
MiFID II: European directive governing financial markets. It aims to protect investors and enhance transparency.
MiCA (Markets in Crypto-Assets): European regulation designed to regulate crypto-asset markets, improve investor protection, combat market abuse and establish a uniform framework for crypto-asset issuers and service providers throughout the European Union.
RegTech: Companies and technologies that facilitate regulatory compliance via the automation and digitization of controls.
Sanctions Screening: Verification process to identify individuals or entities subject to international sanctions.
Real estate
SCPI (Société Civile de Placement Immobilier): Collective investment scheme for investing in real estate without directly owning the assets.
REIT (Real Estate Investment Trust): Anglo-Saxon equivalent of SCPI. Listed structure that invests in real estate.
Tokenization of real estate: Fractionation of real estate into digital tokens to make it more accessible.
LMP / LMNP: French tax status allowing furnished property to be rented within a favorable tax framework.
Real estate crowdfunding: Participatory financing of real estate projects, with fixed or variable returns depending on the operation.
Financing & credit
Lombard loan: Loan backed by a portfolio of financial assets. Allows you to keep your investments while accessing liquidity.
Mortgage loan: Loan secured by real estate. Frequently used to finance the purchase or renovation of a home.
Leverage: An investment mechanism that uses borrowing to increase exposure to an asset and potentially boost profitability.
Senior debt / Mezzanine debt: Types of financing differing in their level of risk, return and repayment priority in the event of liquidation.
Consumer/affected credit: Loans granted to individuals to finance a good or service, often with a fixed rate and fixed term.
Investments for individuals
ETF (Exchange Traded Funds): exchange-traded funds that invest in a basket of assets at low cost.
Plan d’épargne retraite (PER): Long-term, tax-advantaged savings solution designed to supplement retirement income.
Life insurance: Flexible, tax-advantaged savings product. Can be invested in euros or unit-linked funds.
Private equity: Investment in unlisted companies, often via specialized funds.
Crypto-assets / DeFi: New forms of digital investment via digital assets or decentralized financial protocols.
Bank savings: Includes regulated passbooks (Livret A, LDDS, etc.), passbook accounts and term accounts. Low risk, but generally modest returns.
Épargne salariale: Collective savings scheme set up by the company (PEE, PERCO) with tax benefits and possible employer matching.
Wealth transfer
Wealth transfer: A range of tax-optimized ways of transferring real estate, financial and professional assets. This includes gifts, life insurance policies, property stripping and the creation of family SCIs.
Inheritance optimization: Legal and tax techniques designed to reduce inheritance tax while ensuring the protection of heirs and the continuity of assets.
Legal structures & holding companies
Holding company: Parent company that holds shares in other companies. Used to structure a group, optimize taxation or centralize management of business or family assets.
SCI (Société Civile Immobilière): Structure enabling collective ownership of real estate. Particularly useful in wealth transfer strategies or for managing jointly-owned property.
SASU (Société par Actions Simplifiée Unipersonnelle): A flexible legal form suited to individual entrepreneurs. Allows great freedom of management with a distinct legal status.
SARL / EURL / SAS: Common forms of commercial company, each with its own specific features in terms of tax regime, liability, governance and flexibility.
Trust / Fiducie: Legal mechanisms used in some countries to manage or transfer assets, often in a confidential or protective context.