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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