51% Attack
-If more than half of the computer power on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means this entity has full control of the network and can negatively affect a cryptocurrency by halting mining, stopping or changing transactions and reusing coins.
Addresses
-Every cryptocurrency coin has a unique address that identifies where it sits on the blockchain. It’s this address and this location, at which the coin’s ownership data is stored, and where any changes are registered when it is traded. These addresses differ in appearance between cryptocurrencies but are usually a string of over 30 characters.
Airdrop
-This is a marketing campaign that refers to the expedited distribution of a cryptocurrency through a population of people. It usually occurs when the creator of a cryptocurrency provides their coin to low-ranked traders or existing community members in order to build their use and popularity. They are usually given away for free, or in exchange for simple tasks like sharing news of the coin with friends.
Algorithm
-Mathematic instructions coded into and implemented by computer software in order to produce a desired outcome.
All Time High
-The highest price ever achieved by a cryptocurrency.
All Time Low
-The lowest price ever achieved by a cryptocurrency.
Altcoins
-Bitcoin was the first and is the most successful of all the cryptocurrencies. All of the other coins are grouped together under the category of Altcoins. Ethereum, for example, is an altcoin, as is Ripple.
AML
-Acronym for Anti-Money Laundering.
Anti Money Laundering
-These are a set of international laws that hope to prevent criminal organizations or individuals laundering money through cryptocurrencies into real world cash.
Application Specific Integrated Circuit
-A piece of computer hardware – similar to a graphics card or a CPU – that has been designed specifically to mine cryptocurrency. They are built specifically to solve hashing problems efficiently.
Arbitrage
-There are multiple exchanges at any given time trading in the same cryptocurrency, and they can do so at different rates. Arbitrage is the act of buying from one exchange, and then selling it to the next exchange if there is a margin between the two that is profitable.
ASIC
-Acronym for Application Specific Integrated Circuit.
ATH
-Acronym for All Time High.
ATL
-Acronym for All Time Low.
Atomic Swap
-A way of letting people directly and cost-effectively exchange one type of cryptocurrency for another, at current rates, without needing to buy or sell.
Bag
-If you have a large quantity of units in a certain cryptocurrency you’d have a bag of them.
Bear/Bearish
-If the price of a cryptocurrency has a negative price movement.
Bear Trap
-This is a trick played by a group of traders aimed at manipulating the price of a cryptocurrency. The bear trap is set by this group all selling their cryptocurrency at the same time, which bluffs the market into thinking there is a drop incoming. As a result, other traders sell their assets further driving the price down. Those who set the trap then release it, buying back their assets, which are now at a lower price. The overall price then rebounds, allowing them to make a profit.
Bitcoin
-The very first cryptocurrency. It was first created in 2008 by an individual or group of individuals operating under the name Satoshi Nakamoto. It was intended to be a peer-to-peer decentralized electronic cash system.
Block
-The blockchain is made up of Blocks. Each Block holds a historical database of all cryptocurrency transactions made until the Block is full. It’s a permanent record, like a bag of data that can be opened and viewed at any time.
Blockchain
-The blockchain is a digital ledger of all the transactions in a particular cryptocurrency ever made. It comprises of individual blocks (see definition above) that are chained to each other through a cryptographic signature. Each time a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and must always match each other. As there is no master copy stored in one location, it’s considered decentralized.
Block Explorer
-An online tool for exploring the blockchain of a cryptocurrency, where you can watch and follow live, all the transactions happening on the blockchain. Block explorers can serve as blockchain analysis and provide information such as total network hash rate, coin supply, transaction growth, etc.
Block Height
-Refers to the number of blocks connected in the blockchain. For example, Height 0, would be the very first block, which is also called the Genesis Block.
Block Reward
-A form of incentive for the miner who successfully calculates the hash (verification) in a block. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of these.
Bull/Bullish
-If the price of a cryptocurrency has a positive price movement.
Burned
-If a coin in any particular cryptocurrency has been made unspendable, it is said to be burned.
Buy the F$%king Dip
-A less than savoury phrase used when you’re (enthusiastically) telling someone a currency has dipped to a low value and should be bought.
Buy Wall
-A buy wall is when a large Limit Order has been placed to buy when a cryptocurrency reaches a certain value. This can prevent a cryptocurrency from falling below that value, as demand will likely outstrip supply when the order is executed.
CAP
-Acronym for Capitalization.
Central Ledger
-When a single entity has control of all financial records, it is considered to be a Central Ledger. This is how banks operate.
Chain Linking
-Each cryptocurrency has its own blockchain – the digital ledger that stores all transaction records. Chain Linking is the process that occurs if you transfer one cryptocurrency to another. This requires the transaction to be lodged in two separate blockchains, so they must link together to achieve the goal.
Cipher
-The name given to the algorithm that encrypts and decrypts information.
Circulating Supply
-The total number of coins in a cryptocurrency that is in the public trading space is considered the Circulating Supply. Some coins can be locked, reserved or burned, therefore unavailable to public trading.
Cold Storage
-Another term used for a Paper Wallet.
Confirmed
-When a transaction has been confirmed, it means it has been approved by the network and permanently appended to the blockchain.
Consensus
-When a transaction is made, all Nodes on the network verify that it is valid on the blockchain and if so, they have a consensus.
Consensus Process
-Refers to those Nodes that are responsible for maintaining the blockchain ledger so that a consensus can be reached when a transaction is made.
Consortium blockchain
-A privately owned and operated, yet publicly transparent, blockchain.
Cryptocurrency
-A form of money that exists as encrypted, digital information. Operating independently of any banks, a cryptocurrency uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Cryptographic Hash Function
-This process happens on a Node and involves converting an input such as a transaction – into a fixed, encrypted alphanumeric string that registers its place in the blockchain. This conversion is controlled by a hashing algorithm, which is different for each cryptocurrency.
Cryptography
The process of encrypting and decrypting information.
DAO
-Acronym for Decentralized Autonomous Organization.
dApp
-Acronym for decentralized application.
Decentralized Application
-A computer program that utilizes a blockchain for data storage, runs autonomously, is not controlled or operated from a single entity, is open source, and has its use incentivized by the reward of fees or tokens.
Decentralized Autonomous Organization
-Refers to organizations that are run by an application (computer program), rather than direct human input. Control of this application is granted to everyone, rather than a single central entity.
Decryption
-Turning encrypted cipher text back into plain text.
Deflation
-When the demand for a particular cryptocurrency decreases, bringing down the price of its economy.
Depth Chart
-This graph plots the requests to buy (known as bids) and the requests to sell (known as asks) on a chart. Because you can put a Limit Order on your buy or sell transaction, the Depth Chart shows the crossover point at which the market is most likely to accept a transaction in a timely fashion. It also shows if there are any significant Buy Walls or Sell Walls in play.
Deterministic Wallet
-This type of wallet is created by producing multiple keys from a seed. If you lose this wallet, your wallet key can be recovered from the seed. Plus, when you make transactions, instead of producing new keys each time, you use variations from the seed, which makes it more transferable and easier to store.
Difficulty
-When someone refers to difficulty in the cryptocurrency space, they are referring to the cost of mining in that moment in time. The more transactions that are trying to be confirmed at any single moment in time, divided by the total power of the Nodes on the network at that time, defines the difficulty. The higher the difficulty, the greater the transaction fee – this is a fluid measurement that moves over time.
Digital Commodity
-An intangible, hard to get asset that is transferred electronically, and has a certain value.
Digital Currency
-Another term for Digital Commodity.
Digital Signature
-Used to confirm that a document being transmitted electronically is authentic. They generally appear as a code generated by a public key encryption.
Distributed Ledger
-A ledger that is stored in multiple locations so that any entries can be accessed and checked by multiple parties. In cryptocurrency, this refers to the blockchain being held on multiple Nodes on the network, all of which are checked simultaneously.
Double Spend
-This occurs when someone tries to send a cryptocurrency to two different wallets or locations at the same time.
Dump
-The term used to describe selling all (or a lot) of your cryptocurrency.
Dumping
-When a lot of people dump at once, causing a sharp downward movement in a cryptocurrency’s price.
Dust Transaction
-Sometimes people will look to slow the network by deliberately flooding it with minor transactions that are incredibly small. These minuscule amounts are referred to as a Dust Transaction.
DYOR
-Acronym for Do Your Own Research.
Encryption
-Converting plain text into unintelligible text with the use of a cipher.
ERC
-Acronym for Ethereum Request for Comments, and is a summation of proposed improvements to the Ethereum system.
ERC-20
-The standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC-20 standard, piggybacking on the Ethereum network in the process.
Escrow
-When an intermediary is used to hold the funds during a transaction, those funds are being held in escrow. This is usually a third-party between the entity sending and the one receiving.
Ethereum
-One of the top three cryptocurrencies in the world based on its market capitalization. Despite being open source and based on blockchain technology, it differs from Bitcoin in two key ways: it allows developers to create dApps and also write smart contracts.
Ethereum Virtual Machine
-A virtual machine, effectively sitting in the cloud, that is Turing complete and is used by all Nodes on the network during blockchain confirmations. It allows those on the Node to execute random EVM Byte Code, which is part of the Ethereum Protocol.
EVM
-Acronym for Ethereum Virtual Machine.
Exchange
-The platform through which cryptocurrencies are exchanged with each other, with Fiat currencies and between entities. Exchanges can vary widely on the currency conversions they will enable, and their fee structures.
FA
-Acronym for Fundamental Analysis.
Faucet
-If you find a website that offers to give you free cryptocurrency for connecting with them, it is termed a Faucet. The majority of these are scams.
Fiat
-Refers to money recognized as legal tender by governments, such as the US dollar, pound, Euro and Canadian dollar.
FOMO
-Acronym for Fear of Missing Out.
Fork
-When a new version of a blockchain is created, resulting in two versions of the blockchain running side-by-side, it is termed a Fork. As a single blockchain forks into two, they will both run on the same network. Forks are categorized into two categories: soft or hard.
Frictionless
-If there is no transaction cost and no restraints on trading, then the system is considered Frictionless.
FUD
-Acronym for Fear, Uncertainty, and Doubt.
Full Node
-Some Nodes download a blockchain’s entire history in order to enforce its rules completely. As they fully enforce the rules, they are considered a Full Node.
Fundamental Analysis
-A method through which you can attach value to a coin, by looking at similar economic and financial factors, and researching the underlying motives of the creators and market opinion.
Futures Contract
-This is a pre-approved contract between two entities to fulfil a transaction when the value of cryptocurrency hits a certain price. It’s different from a Limit Order in that the buyer and seller are already nominated and bound. A future contract becomes relevant when a buyer wants to go Short, and a seller wants to go Long on the asset.
Gas
-Gas a is measurement given to an operation in the Ethereum network that relates to the computational power required to complete it. That measurement relates to the fee offered to miners who process that transaction. Other operations have a small cost of 3 to 10 gas, but a full transaction costs 21,000 gas.
Gas Limit
-When a user makes a transaction in the Ethereum network, they set their Gas Limit, which is the most they are willing to pay as a fee for that transaction. If the transaction is going to cost more Gas than what is offered, the transaction will not go through. If it costs less, the difference will be refunded.
Gas Price
-The amount you are willing to pay for a transaction in the Ethereum network. If you want miners to process your transaction fast, then you should offer a higher price. Gas prices are usually denominated in Gwei.
Genesis Block
-The first or first few blocks of a blockchain.
Group Mining
-Another term used to describe a Mining Pool (see below).
Gwei
-The denomination used in defining the cost of Gas. So set a Gas Price of 20,000 Gwei, for example.
Many of the definitions shown above can be credited to Andrew Munro of Finder.com
There have been other sources as well, which are too random to categorize with credit.
to be continued.....
-If more than half of the computer power on a network is run by a single person or a single group of people, then a 51% attack is in operation. This means this entity has full control of the network and can negatively affect a cryptocurrency by halting mining, stopping or changing transactions and reusing coins.
Addresses
-Every cryptocurrency coin has a unique address that identifies where it sits on the blockchain. It’s this address and this location, at which the coin’s ownership data is stored, and where any changes are registered when it is traded. These addresses differ in appearance between cryptocurrencies but are usually a string of over 30 characters.
Airdrop
-This is a marketing campaign that refers to the expedited distribution of a cryptocurrency through a population of people. It usually occurs when the creator of a cryptocurrency provides their coin to low-ranked traders or existing community members in order to build their use and popularity. They are usually given away for free, or in exchange for simple tasks like sharing news of the coin with friends.
Algorithm
-Mathematic instructions coded into and implemented by computer software in order to produce a desired outcome.
All Time High
-The highest price ever achieved by a cryptocurrency.
All Time Low
-The lowest price ever achieved by a cryptocurrency.
Altcoins
-Bitcoin was the first and is the most successful of all the cryptocurrencies. All of the other coins are grouped together under the category of Altcoins. Ethereum, for example, is an altcoin, as is Ripple.
AML
-Acronym for Anti-Money Laundering.
Anti Money Laundering
-These are a set of international laws that hope to prevent criminal organizations or individuals laundering money through cryptocurrencies into real world cash.
Application Specific Integrated Circuit
-A piece of computer hardware – similar to a graphics card or a CPU – that has been designed specifically to mine cryptocurrency. They are built specifically to solve hashing problems efficiently.
Arbitrage
-There are multiple exchanges at any given time trading in the same cryptocurrency, and they can do so at different rates. Arbitrage is the act of buying from one exchange, and then selling it to the next exchange if there is a margin between the two that is profitable.
ASIC
-Acronym for Application Specific Integrated Circuit.
ATH
-Acronym for All Time High.
ATL
-Acronym for All Time Low.
Atomic Swap
-A way of letting people directly and cost-effectively exchange one type of cryptocurrency for another, at current rates, without needing to buy or sell.
Bag
-If you have a large quantity of units in a certain cryptocurrency you’d have a bag of them.
Bear/Bearish
-If the price of a cryptocurrency has a negative price movement.
Bear Trap
-This is a trick played by a group of traders aimed at manipulating the price of a cryptocurrency. The bear trap is set by this group all selling their cryptocurrency at the same time, which bluffs the market into thinking there is a drop incoming. As a result, other traders sell their assets further driving the price down. Those who set the trap then release it, buying back their assets, which are now at a lower price. The overall price then rebounds, allowing them to make a profit.
Bitcoin
-The very first cryptocurrency. It was first created in 2008 by an individual or group of individuals operating under the name Satoshi Nakamoto. It was intended to be a peer-to-peer decentralized electronic cash system.
Block
-The blockchain is made up of Blocks. Each Block holds a historical database of all cryptocurrency transactions made until the Block is full. It’s a permanent record, like a bag of data that can be opened and viewed at any time.
Blockchain
-The blockchain is a digital ledger of all the transactions in a particular cryptocurrency ever made. It comprises of individual blocks (see definition above) that are chained to each other through a cryptographic signature. Each time a block’s capacity is reached, a new block is added to the chain. The blockchain is repeatedly copied and saved onto thousands of computers all around the world, and must always match each other. As there is no master copy stored in one location, it’s considered decentralized.
Block Explorer
-An online tool for exploring the blockchain of a cryptocurrency, where you can watch and follow live, all the transactions happening on the blockchain. Block explorers can serve as blockchain analysis and provide information such as total network hash rate, coin supply, transaction growth, etc.
Block Height
-Refers to the number of blocks connected in the blockchain. For example, Height 0, would be the very first block, which is also called the Genesis Block.
Block Reward
-A form of incentive for the miner who successfully calculates the hash (verification) in a block. Verification of transactions on the blockchain generates new coins in the process, and the miner is rewarded a portion of these.
Bull/Bullish
-If the price of a cryptocurrency has a positive price movement.
Burned
-If a coin in any particular cryptocurrency has been made unspendable, it is said to be burned.
Buy the F$%king Dip
-A less than savoury phrase used when you’re (enthusiastically) telling someone a currency has dipped to a low value and should be bought.
Buy Wall
-A buy wall is when a large Limit Order has been placed to buy when a cryptocurrency reaches a certain value. This can prevent a cryptocurrency from falling below that value, as demand will likely outstrip supply when the order is executed.
CAP
-Acronym for Capitalization.
Central Ledger
-When a single entity has control of all financial records, it is considered to be a Central Ledger. This is how banks operate.
Chain Linking
-Each cryptocurrency has its own blockchain – the digital ledger that stores all transaction records. Chain Linking is the process that occurs if you transfer one cryptocurrency to another. This requires the transaction to be lodged in two separate blockchains, so they must link together to achieve the goal.
Cipher
-The name given to the algorithm that encrypts and decrypts information.
Circulating Supply
-The total number of coins in a cryptocurrency that is in the public trading space is considered the Circulating Supply. Some coins can be locked, reserved or burned, therefore unavailable to public trading.
Cold Storage
-Another term used for a Paper Wallet.
Confirmed
-When a transaction has been confirmed, it means it has been approved by the network and permanently appended to the blockchain.
Consensus
-When a transaction is made, all Nodes on the network verify that it is valid on the blockchain and if so, they have a consensus.
Consensus Process
-Refers to those Nodes that are responsible for maintaining the blockchain ledger so that a consensus can be reached when a transaction is made.
Consortium blockchain
-A privately owned and operated, yet publicly transparent, blockchain.
Cryptocurrency
-A form of money that exists as encrypted, digital information. Operating independently of any banks, a cryptocurrency uses sophisticated mathematics to regulate the creation and transfer of funds between entities.
Cryptographic Hash Function
-This process happens on a Node and involves converting an input such as a transaction – into a fixed, encrypted alphanumeric string that registers its place in the blockchain. This conversion is controlled by a hashing algorithm, which is different for each cryptocurrency.
Cryptography
The process of encrypting and decrypting information.
DAO
-Acronym for Decentralized Autonomous Organization.
dApp
-Acronym for decentralized application.
Decentralized Application
-A computer program that utilizes a blockchain for data storage, runs autonomously, is not controlled or operated from a single entity, is open source, and has its use incentivized by the reward of fees or tokens.
Decentralized Autonomous Organization
-Refers to organizations that are run by an application (computer program), rather than direct human input. Control of this application is granted to everyone, rather than a single central entity.
Decryption
-Turning encrypted cipher text back into plain text.
Deflation
-When the demand for a particular cryptocurrency decreases, bringing down the price of its economy.
Depth Chart
-This graph plots the requests to buy (known as bids) and the requests to sell (known as asks) on a chart. Because you can put a Limit Order on your buy or sell transaction, the Depth Chart shows the crossover point at which the market is most likely to accept a transaction in a timely fashion. It also shows if there are any significant Buy Walls or Sell Walls in play.
Deterministic Wallet
-This type of wallet is created by producing multiple keys from a seed. If you lose this wallet, your wallet key can be recovered from the seed. Plus, when you make transactions, instead of producing new keys each time, you use variations from the seed, which makes it more transferable and easier to store.
Difficulty
-When someone refers to difficulty in the cryptocurrency space, they are referring to the cost of mining in that moment in time. The more transactions that are trying to be confirmed at any single moment in time, divided by the total power of the Nodes on the network at that time, defines the difficulty. The higher the difficulty, the greater the transaction fee – this is a fluid measurement that moves over time.
Digital Commodity
-An intangible, hard to get asset that is transferred electronically, and has a certain value.
Digital Currency
-Another term for Digital Commodity.
Digital Signature
-Used to confirm that a document being transmitted electronically is authentic. They generally appear as a code generated by a public key encryption.
Distributed Ledger
-A ledger that is stored in multiple locations so that any entries can be accessed and checked by multiple parties. In cryptocurrency, this refers to the blockchain being held on multiple Nodes on the network, all of which are checked simultaneously.
Double Spend
-This occurs when someone tries to send a cryptocurrency to two different wallets or locations at the same time.
Dump
-The term used to describe selling all (or a lot) of your cryptocurrency.
Dumping
-When a lot of people dump at once, causing a sharp downward movement in a cryptocurrency’s price.
Dust Transaction
-Sometimes people will look to slow the network by deliberately flooding it with minor transactions that are incredibly small. These minuscule amounts are referred to as a Dust Transaction.
DYOR
-Acronym for Do Your Own Research.
Encryption
-Converting plain text into unintelligible text with the use of a cipher.
ERC
-Acronym for Ethereum Request for Comments, and is a summation of proposed improvements to the Ethereum system.
ERC-20
-The standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC-20 standard, piggybacking on the Ethereum network in the process.
Escrow
-When an intermediary is used to hold the funds during a transaction, those funds are being held in escrow. This is usually a third-party between the entity sending and the one receiving.
Ethereum
-One of the top three cryptocurrencies in the world based on its market capitalization. Despite being open source and based on blockchain technology, it differs from Bitcoin in two key ways: it allows developers to create dApps and also write smart contracts.
Ethereum Virtual Machine
-A virtual machine, effectively sitting in the cloud, that is Turing complete and is used by all Nodes on the network during blockchain confirmations. It allows those on the Node to execute random EVM Byte Code, which is part of the Ethereum Protocol.
EVM
-Acronym for Ethereum Virtual Machine.
Exchange
-The platform through which cryptocurrencies are exchanged with each other, with Fiat currencies and between entities. Exchanges can vary widely on the currency conversions they will enable, and their fee structures.
FA
-Acronym for Fundamental Analysis.
Faucet
-If you find a website that offers to give you free cryptocurrency for connecting with them, it is termed a Faucet. The majority of these are scams.
Fiat
-Refers to money recognized as legal tender by governments, such as the US dollar, pound, Euro and Canadian dollar.
FOMO
-Acronym for Fear of Missing Out.
Fork
-When a new version of a blockchain is created, resulting in two versions of the blockchain running side-by-side, it is termed a Fork. As a single blockchain forks into two, they will both run on the same network. Forks are categorized into two categories: soft or hard.
Frictionless
-If there is no transaction cost and no restraints on trading, then the system is considered Frictionless.
FUD
-Acronym for Fear, Uncertainty, and Doubt.
Full Node
-Some Nodes download a blockchain’s entire history in order to enforce its rules completely. As they fully enforce the rules, they are considered a Full Node.
Fundamental Analysis
-A method through which you can attach value to a coin, by looking at similar economic and financial factors, and researching the underlying motives of the creators and market opinion.
Futures Contract
-This is a pre-approved contract between two entities to fulfil a transaction when the value of cryptocurrency hits a certain price. It’s different from a Limit Order in that the buyer and seller are already nominated and bound. A future contract becomes relevant when a buyer wants to go Short, and a seller wants to go Long on the asset.
Gas
-Gas a is measurement given to an operation in the Ethereum network that relates to the computational power required to complete it. That measurement relates to the fee offered to miners who process that transaction. Other operations have a small cost of 3 to 10 gas, but a full transaction costs 21,000 gas.
Gas Limit
-When a user makes a transaction in the Ethereum network, they set their Gas Limit, which is the most they are willing to pay as a fee for that transaction. If the transaction is going to cost more Gas than what is offered, the transaction will not go through. If it costs less, the difference will be refunded.
Gas Price
-The amount you are willing to pay for a transaction in the Ethereum network. If you want miners to process your transaction fast, then you should offer a higher price. Gas prices are usually denominated in Gwei.
Genesis Block
-The first or first few blocks of a blockchain.
Group Mining
-Another term used to describe a Mining Pool (see below).
Gwei
-The denomination used in defining the cost of Gas. So set a Gas Price of 20,000 Gwei, for example.
Many of the definitions shown above can be credited to Andrew Munro of Finder.com
There have been other sources as well, which are too random to categorize with credit.
to be continued.....