# Key Terms
This section provides definitions for **important terminology** related to **Zipper, the Fabric ecosystem, and general crypto concepts**. Understanding these terms will help users navigate the documentation and interact with Zipper more effectively. *** ### **Zipper-Specific Terms** #### **Zipper** A decentralized protocol on **Fabric** that allows users to **zip (wrap) and unzip (unwrap) assets**, bringing external blockchain assets into the Fabric ecosystem. #### **Zipping (Wrapping)** The process of **depositing an external blockchain asset into Zipper**, where it is stored securely in a vault, and receiving an equivalent **zAsset** on **Fabric**. #### **Unzipping (Unwrapping)** The process of **returning a zAsset to its original blockchain**, where Zipper burns the zAsset on **Fabric** and releases the equivalent asset to the user on the originating chain. #### **zAssets** Fabric-compatible, **tokenized representations of external blockchain assets** created when users zip assets into Zipper. **Each zAsset is fully backed 1:1** by its original asset. #### **Deposit Address** A **unique blockchain address assigned to a user** where external assets are sent to be zipped. Deposit addresses are controlled by **Zipper’s TEE-secured vaults** and later consolidated into the main vault. #### **Main Vault** The **primary storage location for zipped assets** before they are unzipped. Zipper consolidates funds from multiple deposit addresses into the main vault for efficient asset management. #### **Zip/Unzip Fees** The **network costs** associated with zipping and unzipping assets. Zipper does not charge additional fees—**only blockchain network fees apply**. *** ### **Fabric Ecosystem Terms** #### **Fabric** A high-performance **Layer 1 blockchain** designed for **AI integration, decentralized oracles, and scalable infrastructure**. It serves as the foundation for Zipper and other ecosystem applications. #### **Polyester** A **decentralized exchange (DEX)** built on Fabric that allows users to **trade zAssets** with an order book model similar to a centralized exchange (CEX). #### **FabricScan** The **block explorer for Fabric**, allowing users to verify **zAsset contract addresses, transactions, and blockchain activity** for full transparency. *** ### **Security & Compliance Terms** #### **Trusted Execution Environment (TEE)** A **hardware-based security technology** that **isolates and protects private keys and cryptographic operations** from external access, even if the host system is compromised. Zipper’s vaults use **TEE to prevent unauthorized access**. #### **Chain Monitoring** A compliance mechanism that **tracks blockchain transactions for illicit activity**, ensuring **sanctioned wallets, stolen funds, and OFAC-listed addresses** are blocked from using Zipper. #### **1:1 Backing** A fundamental security measure ensuring that **every zAsset on Fabric is fully backed** by its original asset in Zipper’s vaults, maintaining **full transparency and redeemability**. *** ### **General Crypto & Blockchain Terms** #### **Blockchain** A **decentralized, immutable ledger** that records transactions across multiple nodes, ensuring security, transparency, and resistance to censorship. #### **Smart Contract** A **self-executing contract stored on the blockchain** that automatically enforces rules and conditions, eliminating the need for intermediaries. #### **Layer 1 (L1)** A **base blockchain network** that processes transactions and provides security. Examples include **Fabric, Ethereum, Solana, and Bitcoin**. #### **Layer 2 (L2)** A **secondary network built on top of an L1 blockchain** to improve scalability and reduce fees (e.g., Optimistic Rollups on Ethereum). **Fabric is an L1, not an L2.** #### **Decentralized Exchange (DEX)** A **peer-to-peer trading platform** that allows users to trade assets **without intermediaries**. Polyester is the primary DEX on Fabric. #### **Centralized Exchange (CEX)** A **traditional cryptocurrency exchange** operated by a central authority (e.g., Binance, Coinbase) where users trade assets through an intermediary. #### **Liquidity** The **availability of assets** in a market, determining how easily they can be traded without significant price changes. #### **Bridging** The process of **moving assets between blockchains**, often using smart contracts or centralized custodians. **Zipper is NOT a bridge - it only zips and unzips assets into Fabric.**