Cryptocurrency 101 - Common Terms - Issue #1
If you are a complete newbie to the crypto world, the best start is to understand the every day words. Here they are - written neatly.
Block => a permanent record of transaction data in blockchain.
Blockchain => a result of sequential blocks that build upon one another, creating a permanent and unchangeable ledger of transaction.
Node => a computer that connects you to a blockchain network.
Cryptocurrency => a decentralized digital money, based on blockchain technology.
Decentralized Finance (DeFi) => peer-to-peer (without intermediaries such as banks & government) financial activities on public blockchains.
Decentralized Applications (dApps) => digital applications that are deployed on blockchain to carry out actions without intermediaries.ย
Hash => a unique string of characters that represents and secures information on the blockchain of a digital coin.
Token => a unit value on a pre-existing blockchain that represents an asset or has some specific use.
Non-Fungible Tokens (NFTs) => units of value used to represent the ownership of unique digital items like art, music, video games etc.ย
Coins => cryptocurrencies built on their independent blockchain network.
Bitcoin => the first and most valuable cryptocurrency.
Altcoin => any coin that is not Bitcoin.
Wallet => a device, software or service that stores public and private keys for transaction, and provides digital signature.
Hot wallet => a wallet that is connected to the internet.
Cold Wallet => a wallet that is not connected to the internet.ย
Mining => the process whereby new cryptocurrency coins are made available and the log of transaction between users is maintained.
Halving => the process of halving the rewards of mining Bitcoin after each set of 210,000 blocks is mined.
Fork => when blockchain users or developers make fundamental changes to the protocol.
Smart Contracts => an algorithmic program that enacts the terms of a contract automatically based on its code.
Initial Coin Offering (ICO) => a way of raising funds for new cryptocurrency projects, a crypto version of IPO.
Market Capitalization = Current Number of Coins X Current Value of Coins
Gas => a transaction fee that users pay to miners on a blockchain protocol to have their transaction included in the block.
Hodl => "hold on for dear life", though originally was a typo (hold) on bitcointalk forum back in 2013.ย
Rekt => internet slang for "wrecked".
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*Originally posted on Twitter.
