Airdrop
Quick Answer
An airdrop is the distribution of free cryptocurrency tokens to wallet addresses, typically used for marketing, community building, or rewarding early adopters.
Full Definition
An airdrop is the distribution of free cryptocurrency tokens to wallet addresses, typically used for marketing, community building, or rewarding early adopters of a protocol. Airdrops are common in DeFi and Web3 ecosystems. From a compliance perspective, airdropped tokens may have tax implications depending on jurisdiction, and merchants should be aware of tokens received in wallets used for payment processing.
Related Terms
Account Abstraction
Account abstraction is a blockchain upgrade that allows smart contracts to act as user accounts, enabling gasless transactions and simplified checkout without requiring customers to hold native gas tokens.
Address
A blockchain address is a unique alphanumeric identifier representing a destination for sending or receiving cryptocurrency on a specific network.
AML (Anti-Money Laundering)
Anti-money laundering (AML) refers to laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income through crypto payment systems.
API (Application Programming Interface)
An API is a set of protocols that allows software applications to communicate. In crypto payments, a payment API lets merchants create payment requests, check transaction status, and receive webhook notifications programmatically.
Atomic Swap
An atomic swap is a peer-to-peer exchange of one cryptocurrency for another without a centralised intermediary, using hash time-locked contracts to ensure trustless execution.