Glossary Of Terms

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Glossary Of Terms


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51% Attack
Refers to a situation where a person/ organization is controlling over 50% of the network’s computing power.

A

Address
Similar to an email address, it’s used to receive and send funds/tokens between two blockchain networks.
Altcoins
Alternative Coins - any other coin except Bitcoin.

B

Bag
Amount of coins or tokens one is holding in their crypto portfolio/wallet
Bearish
When there is selling pressure in the market and prices are declining.
Binance
One of the largest crypto trading platforms in the world: it only accepts crypto to crypto trades not cash.
Bitcoin
The largest and first cryptocurrency to hit the industry in 2009. It’s an online version of cash.
Bitcoin ATM
Similar to a regular bank ATM, this one allows users to use a credit or debit card to buy Bitcoin.
Blockchain
A system of recording transactions and information in a way that can’t be changed, hacked, or manipulated.
Bounty
Rewards are given to people for successfully completing a given number of tasks, especially in an Initial Coin Offering (ICO).
Bullish
A positive feeling in the market that prices will increase.
Burned
Where tokens have been permanently removed from circulation to reduce their supply.

C

Central Bank Digital Currency (CBDC)
Virtual/ digital currency issued/developed by a country’s central bank.
Chainlink
A cryptocurrency that encourages people to use blockchain to provide reliable and real data to smart contracts.
Cipher
The algorithm that defines the steps followed to decode information.
Circulating supply
The number of coins available for the public to transact.
Client
Software for an end-user to generate and secure a private key.
Cloud mining
A process of mining cryptocurrencies such as Bitcoin by renting computing power without the need to have the necessary hardware.
Coin Utility
The usefulness of a token in a network or crypto space.
Coinbase
A secure trading platform where people can easily buy and sell cryptocurrencies.
Cold Wallet
A place to store cryptocurrencies that are off the internet thus can’t be compromised.
Confirmation
Successful processing of a transaction on blockchain with a minimal chance of it being reversed.
Consensus
A process where developers and/or individuals who own a specific cryptocurrency vote on changes that should be made to improve or maintain the blockchain or cryptocurrency.
Consortium Blockchain
A ‘semi-private’ blockchain network where different entities have control over the functions done on the network.
Cryptocurrency
A digital medium of exchange which can be used in the exchange of goods and services. It’s like paper money but in digital form.
Cryptocurrency Exchange
A platform where one can buy and sell cryptocurrencies for a small fee.
Cryptography
A key security feature of blockchain, where all information is protected by complex mathematical codes.

D

Decentralized
Control or power is distributed from a central authority to all individuals who use the blockchain and cryptocurrency.
Decentralized Applications (DApps)
Digital applications that run on a peer to peer network rather than from a single computer.
Decentralized Exchanges
A cryptocurrency trading platform that isn’t controlled by a centralized authority.
Decentralized Finance (DeFi)
A movement whose vision is to create a permissionless and transparent financial service industry.

E

Encryption
Converting plain data into a code that can be interpreted by a computer.
ERC20 Token
Tokens designed to work only on the Ethereum network.
Ether
Native cryptocurrency of the Ethereum network that is used for payment just like cash
Ethereum
A public blockchain and software platform, often compared to a global App Store without a single owner, where you can create and run applications to utilize the benefits of blockchain.For information on how Ethereum differs from Bitcoin, check out Should I Invest in Bitcoin or Ethereum guide.
Ethereum 2.0
An upgrade of the Ethereum network to increase its speed and efficiency while reducing the cost of transactions.

F

Fiat
A government-issued medium of exchange such as money.
Fork
When an existing blockchain breaks and two new protocols emerge from the act.

G

Gemini
A regulated crypto exchange and wallet owned by the Winklevoss Twins who were the first Bitcoin billionaires.
Genesis Block
The root where every other Bitcoin-related network can trace its lineage from.

H

Hardware Wallet (or Cold Wallet)
A special and secure device that stores one’s cryptocurrencies offline.
Hash
A fixed-length character string that records data on a network.

I

Immutable
Unchangeable
Initial Coin Offering (ICO)
An activity similar to Initial Public Offering (IPO) to raise money for a crypto project.

K

KuCoin
World class crypto trading platform with an easy to use interface to buy and sell cryptocurrencies.

L

Lightning Network
A faster payment platform built on top of Bitcoin
Litecoin
A crypto network that functions like Bitcoin but is far quicker and cheaper.

M

Market Cap
The size of a cryptocurrency which is calculated by taking the currency price compared to the total coins in circulation.
Mempool
Short for “memory pool”, a set of unconfirmed transactions in a blockchain.
Mempool
Short for “memory pool”, it is a set of unconfirmed transactions in a blockchain.
Mining
The process of solving a ‘mathematical puzzle’ to help process a crypto transaction and add it to a public ledger.

N

Node
A computer that is connected to other computers with the purpose of supporting a specific blockchain by accepting, verifying, and adding completed transactions to the blockchain.

P

Peer-to-Peer (P2P)
A network for the exchange of currencies which isn’t governed by a single central authority.
Private Blockchain
A blockchain network that is only accessible to specific people who have been authorized.
Private Key
A secure form of cryptography that lets one access their cryptocurrencies.
Proof of Stake (PoS)
A concept where one needs to state how many coins/ tokens they have so that they can be allowed to validate a transaction.
Proof of Work (PoW)
A system used by blockchain networks to prevent double spending.
Public Blockchain
A blockchain network that is accessible to anyone
Public Key
An encrypted code that allows one to receive funds into their account.

R

Ripple (XRP)
Ripple is both a platform and currency designed to facilitate international money transfer.

S

Satoshi
The smallest unit of Bitcoin (100 millionth of a Bitcoin) -named after the ‘creator’ of Bitcoin Satoshi Nakamoto.
Sharding
Splitting of a blockchain to increase the computational power and storage capacity of the network.
Side Chains
A ledger that runs in parallel to the primary blockchain allowing it to operate independently, with its own protocols.
Smart Contracts
Digital versions of traditional legal contracts built using blockchain technology.
Stablecoin
Cryptocurrencies that help cushion investors from market volatility by being pegged to an external currency such as the dollar.
Staking
Holding crypto to help verify transactions in a network and earn from it.
Stale Block
Blocks that aren’t accepted in a network due to a time lag during processing.

T

Taint
The amount of crypto that can be traced to another account.
Tether (USDT)
The world’s most popular stablecoin that’s pegged on the dollar at a ratio of 1:1
Token
A token that runs on another blockchain e.g, an ERC token. A coin runs on its native blockchain.
Transaction (TX)
The act of exchanging cryptocurrencies on the blockchain.

V

Validation
The process of confirming that the transaction meets requirements to be deemed complete, such as ensuring that the sender in the transaction has an initial balance in their wallet equal to or greater than the amount being sent in the transaction (including the transaction fee).

W

Wallet
A digital file where users can store or transact their cryptocurrencies.
Wallet Address
A string of 26 to 35 characters used to send or receive cryptocurrencies.
Whale
Someone who holds a large amount of cryptocurrency, especially Bitcoin and can impact the market when they transact.

Z

Zeppelin
A blockchain and software development company that provides security protocols for organizations.