Crypto Guides

Crypto Terminology and Abreviations

Airdrop: a distribution of free tokens to existing holders of a particular crypto currency

 

Altcoin: alternate coin – any crypto currency that is not Bitcoin.

 

AML: Anti-Money-Laundering – regulation compliance.

 

ASIC: dedicated computer equipment designed for crytpto currency mining.

 

Atomic Swap: the ability to easily exchange one altcoin for another.

 

Bearish: a decline in value of crypto currency or the market.

 

BTD: buy the dip. Invest when crypto currency prices decline.

 

Block: digitals files used to store data in a blockchain.

 

Blockchain: a distributed ledger capable of storing data securely and permanently using cryptography.

 

Bullish: an increase in value of crypto currency or the market

 

Byzantine Fault Tolerance: the lack of consensus due to bad actors or failures found inside a network or system. A system is Fault Tolerant if it has 2/3rds consensus.

 

Cold Storage: the storing of crypto currency offline.

 

Consensus: the agreement of all the nodes (links) in a network to verify a transaction.

 

Crypto: refers to the Cryptographic encryption used to secure public and private keys (passwords).

 

Crypto currency: digital assets used as a medium of value between two parties to exchange goods or services.

 

Daaps: Decentralized Applications – a business project that facilities access to a service or product

 

DAO: Decntralized Autonomous Organization. Leaderless projects with shared management of a network enforced through smart contracts.

 

DLT: Distributed Ledger Technology (a network).

 

DDoS: Distributed Denial of Service – a cyber attack on a network by overloading it with massive simultaneous requests.

 

Double Spending: a type of fraud or fault in the system where a transaction is performed twice which runs contrary on how the blockchain system works.

 

DOYR: Do Your Own Research

 

ETF: Exchange Trade Funds – refers to securities, bonds, shares, stocks.

 

Exchange: a website where crypto currencies can be bought, sold, or traded.

 

Fiat: physical, traditional, tangible paper money.

 

FUD: fear, uncertainty, doubt – bad press or negativity towards the crypto market or a project.

 

FOMO: fear of missing out – to buy crypto currency during a flash sale or when prices rise quickly.

 

GAS: a measurement of how much processing is required to perform a transaction on the Etherum network. The more complex a transaction, the more Gas it will require.

 

Graphene: a modification of the Blockchain network (Bitcoin Core) using filters to reduce double spending and reduce data block size in order to speed up transactions.

 

Hard Fork: the separation of a blockchain into two: one old, one new. The new blockchain IS NOT compatible with the old. It is entirely separate.

 

Hash: is the scrambling of data using an algorithm to encode it during transactions.

 

HODL: an anagram of the word ‘Hold’. It means to maintain a position instead of selling during a market decline.

 

ICO: Initial Coin Offering – a fundraising mechanism to raise investment money in exchange for tokens.

 

KYC: Know your Customer – personal verification of true identity.

 

Lambo: attaining a position of wealth from the profits of selling crypto currency.

 

Market Cap: the total value of a coin or the market. It is calculated by multiplying the total supply of a coin by its current price.

 

Masternode: a computer link that holds a determined amount of a particular coin, and which participates in higher voting rights on a network. It also receives a higher reward return than nodes.

 

Mining: the verification of transactions and recipt of payment in the form of crypto currency.

 

Mooning: the exponential rise of a particular crypto currency.

 

Mt. Gox: a former Japanese Bitcoin exchange that collapsed due to fraud and mismanagement causing major loss of money and creating a scandal.

 

Node: a computer linked to a network and which participates in validating transactions and maintaining a full copy of the blockchain of a specific project.

 

Oracles: an outside agent that provides the necessary data to trigger smart contracts to execute when the original terms of the contract are met.

 

Private Key: a personal password consisting of a string of alphanumeric digits that acts a digital signature to access your wallet.

 

Proof-of-Authority: a scaling method where a few selected nodes possess a private key enabling to validate transactions and create blocks in a private blockchain.

 

Proof-of-Concept: evidence that demonstrates that a concept works.

 

Proof-of-Stake: ownership of a given amount of coins – the amount determines how a person can validate or mine a coin. The more coins the more mining/voting power.

 

Proof-of-Work: the process of solving a mathematical problem using powerful computer systems (ASIC) to prove the validity of a transaction.

 

Public Key: a unique public address consisting of a alphanumeric digits used to receive crypto currency

 

Pump and Dump: artificially inflating the price and then selling the asset for short term profit.

 

P2P: Peer-to-Peer (two individuals).

 

REKT: anagram of “Wrecked” used to describe loss during a trade.

 

SAFT: Simple Agreement for Future Tokens – used during an initial coin offerings to arrange for the delivery of tokens that will serve as a utility or commodity in the future.

 

Satoshis: the smallest unit of Bitcoin (0.00000001 BTC).

 

SegWit: Segregated Witness – the separation of a digital signature from the main block in a blockchain to reduce the data size and improve speed transaction.

 

Sharding: a scaling solution where the data contained in the blocks is divided (sharded) and carried using side chains.

 

Shilling: the intentional advertising of a coin to raise its value.

 

Smart Contract: a set of rules that dictate the conditions or terms of transactions.

 

Soft Fork: the separation of a blockchain into two: one old, one new. the new blockchain IS compatible with the previous one. It shares functionalities.

 

Solidity: Ethereum’s programming language; used to write smart contracts and create ERC20 tokens.

 

Tokens: a type of currency issued during an initial coin offering for a specific project.

 

UTXO: Unspent Transaction Output – leftover links on spent transactions. These links can serve to verify future transactions.

 

Wallet: physical object (paper or device) or digital address where crypto currency is stored.

 

Whale: A majority holder of Bitcoin or altcoins.

 

Whitepaper: a business proposal and technical description of a project.

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