Glossary Of Terms

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A blockchain and software development company that provides security protocols for organizations.
Someone who holds a large amount of cryptocurrency, especially Bitcoin and can impact the market when they transact.
Wallet Address
A string of 26 to 35 characters used to send or receive cryptocurrencies.
A digital file where users can store or transact their cryptocurrencies.
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).
Transaction (TX)
The act of exchanging cryptocurrencies on the blockchain.
A token that runs on another blockchain e.g, an ERC token. A coin runs on its native blockchain.
Tether (USDT)
The world’s most popular stablecoin that’s pegged on the dollar at a ratio of 1:1
The amount of crypto that can be traced to another account.
Stale Block
Blocks that aren’t accepted in a network due to a time lag during processing.
Holding crypto to help verify transactions in a network and earn from it.
Cryptocurrencies that help cushion investors from market volatility by being pegged to an external currency such as the dollar.
Smart Contracts
Digital versions of traditional legal contracts built using blockchain technology.
Side Chains
A ledger that runs in parallel to the primary blockchain allowing it to operate independently, with its own protocols.
Splitting of a blockchain to increase the computational power and storage capacity of the network.
The smallest unit of Bitcoin (100 millionth of a Bitcoin) -named after the ‘creator’ of Bitcoin Satoshi Nakamoto.
Ripple (XRP)
Ripple is both a platform and currency designed to facilitate international money transfer.
Public Key
An encrypted code that allows one to receive funds into their account.
Public Blockchain
A blockchain network that is accessible to anyone
Proof of Work (PoW)
A system used by blockchain networks to prevent double spending.
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.
Private Key
A secure form of cryptography that lets one access their cryptocurrencies.
Private Blockchain
A blockchain network that is only accessible to specific people who have been authorized.
Peer-to-Peer (P2P)
A network for the exchange of currencies which isn’t governed by a single central authority.
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.
Short for “memory pool”, it is a set of unconfirmed transactions in a blockchain.
Short for “memory pool”, a set of unconfirmed transactions in a blockchain.
The process of solving a ‘mathematical puzzle’ to help process a crypto transaction and add it to a public ledger.
Market Cap
The size of a cryptocurrency which is calculated by taking the currency price compared to the total coins in circulation.
Lightning Network
A faster payment platform built on top of Bitcoin
World class crypto trading platform with an easy to use interface to buy and sell cryptocurrencies.
A crypto network that functions like Bitcoin but is far quicker and cheaper.
Initial Coin Offering (ICO)
An activity similar to Initial Public Offering (IPO) to raise money for a crypto project.
Hardware Wallet (or Cold Wallet)
A special and secure device that stores one’s cryptocurrencies offline.
A fixed-length character string that records data on a network.
Genesis Block
The root where every other Bitcoin-related network can trace its lineage from.
A regulated crypto exchange and wallet owned by the Winklevoss Twins who were the first Bitcoin billionaires.
When an existing blockchain breaks and two new protocols emerge from the act.
A government-issued medium of exchange such as money.
Ethereum 2.0
An upgrade of the Ethereum network to increase its speed and efficiency while reducing the cost of transactions.
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.
Native cryptocurrency of the Ethereum network that is used for payment just like cash
ERC20 Token
Tokens designed to work only on the Ethereum network.
Converting plain data into a code that can be interpreted by a computer.
Decentralized Finance (DeFi)
A movement whose vision is to create a permissionless and transparent financial service industry.
Decentralized Exchanges
A cryptocurrency trading platform that isn’t controlled by a centralized authority.
Decentralized Applications (DApps)
Digital applications that run on a peer to peer network rather than from a single computer.
Control or power is distributed from a central authority to all individuals who use the blockchain and cryptocurrency.
Cryptocurrency Exchange
A platform where one can buy and sell cryptocurrencies for a small fee.
A key security feature of blockchain, where all information is protected by complex mathematical codes.
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.
Consortium Blockchain
A ‘semi-private’ blockchain network where different entities have control over the functions done on the network.
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.
Successful processing of a transaction on blockchain with a minimal chance of it being reversed.
Cold Wallet
A place to store cryptocurrencies that are off the internet thus can’t be compromised.
A secure trading platform where people can easily buy and sell cryptocurrencies.
Coin Utility
The usefulness of a token in a network or crypto space.
Cloud mining
A process of mining cryptocurrencies such as Bitcoin by renting computing power without the need to have the necessary hardware.
Software for an end-user to generate and secure a private key.
Circulating supply
The number of coins available for the public to transact.
The algorithm that defines the steps followed to decode information.
A cryptocurrency that encourages people to use blockchain to provide reliable and real data to smart contracts.
Central Bank Digital Currency (CBDC)
Virtual/ digital currency issued/developed by a country’s central bank.
Where tokens have been permanently removed from circulation to reduce their supply.
A positive feeling in the market that prices will increase.
Rewards are given to people for successfully completing a given number of tasks, especially in an Initial Coin Offering (ICO).
A system of recording transactions and information in a way that can’t be changed, hacked, or manipulated.
Bitcoin ATM
Similar to a regular bank ATM, this one allows users to use a credit or debit card to buy Bitcoin.
The largest and first cryptocurrency to hit the industry in 2009. It’s an online version of cash.
One of the largest crypto trading platforms in the world: it only accepts crypto to crypto trades not cash.
When there is selling pressure in the market and prices are declining.
Amount of coins or tokens one is holding in their crypto portfolio/wallet
Alternative Coins - any other coin except Bitcoin.
Similar to an email address, it’s used to receive and send funds/tokens between two blockchain networks.
51% Attack
Refers to a situation where a person/ organization is controlling over 50% of the network’s computing power.
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