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Glossary: Common Crypto Vocabulary

Here you will find an alphabetical list of the most commonly used cryptocurrency vocabulary words, terms, & acronyms from around the world. *This will be updated, as new terms develop!*

A

Account: An account is a place for you to keep track of your financial assets or investments

Address: A cryptocurrency address is a string of alphanumeric characters that represents a wallet, exchange, or similar blockchain-specific address. All wallet and exchange addresses are unique and denote the location of the sender and receiver on the blockchain network. Blockchain addresses can be evaluated publicly on a blockchain explorer (a web service that records all transactions that have ever taken place on the network), but are also pseudonymous, because they are not necessarily linked to their user’s real-world identity.

Airdrop: An airdrop is a token distribution method in which assets are directly transmitted to user wallets for free. Airdrop recipients do not pay for tokens received. Typically used as a marketing tactic to create awareness around a project, airdrops can also result after a chain fork, token upgrade, or as part of a fundraising mechanism.

Altcoin: An altcoin is an “alternative coin,” or any cryptocurrency launched after Bitcoin. It refers to any cryptocurrency that is not BTC. For example, ETH, XRP, and LTC are all altcoins.

AMA: Abbreviation for “Ask me anything” it is an event/meeting that usually takes place via a Twitter space or via Discord chat

APE/Aping:  To “ape” into something is to recklessly invest in the hopes of short-term profit. Everyone knows scams abound, and careful investors do research to vet a cryptocurrency or NFT project to ensure it’s safe. To “ape” into a project is to see its value rising and to throw money into it hoping for the best.

API: API stands for Application Programming Interface. It is a set of routines, protocols, and tools for building software applications. APIs specify how software components should interact, such

ATH (All Time High): The highest point (in price, in market capitalization) that a cryptocurrency has been in history. *see All-Time-Low (ATL).

ATL (All Time Low): The lowest point (in price, in market capitalization) that a cryptocurrency has been in history. *see All-Time-High (ATH).

Audit: An audit is a process where developers inspect the underlying code and/or algorithm that compose systems and applications.

 

B

Bag: Crypto slang for a large quantity of a specific cryptocurrency. Alternatively (but less frequently) used to refer to the contents of an individual’s crypto portfolio.

Bear/Bearish: Someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.”

Bear Trap: The attempted manipulation of a specific cryptocurrency’s price, based on the coordinated activity of a group of traders.

Bullish: A person that is optimistic and confident that market prices will increase, this person is also known to be “bullish” about the market or price.

Bearwhale: A bearwhale is a person who has a high number of cryptocurrencies and uses their massive account to drive the price down and profit out of it.

Bitcoin: Bitcoin is a blockchain network with a native cryptocurrency (bitcoin). It is the first blockchain and cryptocurrency, hence its dominant presence within the broader crypto ecosystem. Bitcoin was established in 2009 and pioneered Proof of Work, a technology for reaching consensus on a decentralized network.

Block: A file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.

Blockchain: A blockchain is a public ledger of transactions that is maintained and verified by a decentralized, peer-to-peer network of computers that adhere to a consensus mechanism to confirm data. Each computer in a blockchain network maintains its own copy of the shared record, making it nearly impossible for a single computer to alter any past transactions or for malicious actors to overwhelm the network. Sufficiently decentralized blockchains do not rely on centralized authorities or intermediaries to transact globally, securely, verifiably, and quickly, making technology like cryptocurrency possible.

Bot: Automated software that can carry out tasks such as cryptocurrency trades.

BTFD (Buy the F****** Dip): An enthusiastic exclamation by supporters of a cryptocurrency to buy while prices are at a low point. Buy The (F*******) Dip, implies that any dips in the price of your favorite coin should mean only one thing that it’s f******* time to buy more.

Bullflag: A bull flag is a technical charting pattern shaped like a flag that often signals further bullish momentum and an increase in price. With a bull flag, the flagpole is formed during a significant rise in price where buyers significantly outperform sellers, while the flag itself is formed during a consolidation period that usually signals a continued price increase. Bull flags, like all technical formations, can sometimes be negated and fail to produce the results they may have originally indicated.

Bullish: The term “bullish” can be used to describe how positive or optimistic a person feels about a particular asset. Someone who is bullish on bitcoin believes the price of bitcoin will increase. A person who is bullish on bitcoin may also be referred to as a bitcoin “bull.”

 

C

Candlestick: Candlesticks are part of a charting methodology employed by stock and cryptocurrency investors that shows historical and real-time prices of a specific asset. Candlesticks are designed to display the open, high, low, and closing (OHLC) prices of an asset for specific time periods (usually by the minute, hour, day, week, and month). Typically, green candlesticks denote a bullish increase in price, while red candlesticks signify a bearish decrease in price. Candlesticks are generally thought of as the most well known technical indicator that investors use.

Candlestick Chart: A candlestick chart is a method of showing historical prices of an asset (e.g. cryptocurrency), giving a good summary of the price’s behavior.

Coinbase: Coinbase is one of the largest cryptocurrency exchanges in the world. Based in the U.S.A., it provides spot trading to retail U.S. investors and custody services to hold large amounts of crypto for institutional investment firms. Coinbase was founded by CEO Brian Armstrong in 2012 and completed an Initial Public Offering (IPO) via NASDAQ in April 2021.

Central Bank: A central bank controls the monetary policy and currency of a nation-state. Central banks function as the bank of governments, and have the power to set interest rates and the money supply. The Federal Reserve is the central bank of the United States.

Centralization: Centralization refers to the consolidation of control, authority, and access by a person or group. In a blockchain context, centralization refers to the level of privilege and distribution of nodes verifying and managing the network. Blockchains relying on powerful ‘super nodes’ or nodes concentrated in a limited geographical area are considered more centralized.

CEX (Centralized Exchanges): Centralized exchanges (CEXs) are a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner.

Chain Split: Chain splits are another term used to describe cryptocurrency forks — the separation of a single original coin into several independently managed projects.

Circulating Supply: The circulating supply is the total number of tokens of a specific cryptocurrency that are available in the market. The circulating supply includes all tokens locked in decentralized applications and held on crypto exchanges or in user wallets. The circulation supply is different from the total supply, which is the total amount of tokens that will ever be created.

Cloud Mining: Cloud mining is the process of mining cryptocurrency through the use of a third-party provider by purchasing a cloud mining contract. It doesn’t require owning the associated hardware. You typically purchase a fixed amount of cloud computing power (measured in hashes per second) for a set period of time and receive the associated mining rewards associated with your contract. You can also lease the mining rigs themselves — usually application specific integrated circuit (ASIC) miners — which can give you more flexibility but generally includes setup and maintenance fees.

CMC: Short for Coin Market Cap

Coin: A coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency.

Cold Storage: Cold storage refers to the offline storage of a cryptocurrency wallet. “Offline” means that the wallet is disconnected from the internet, preventing hackers from accessing it. Cold storage is considered to be the most secure way to hold crypto assets.

Cold Wallet: A cold wallet is a cryptocurrency wallet that is not connected to the internet. Cold wallets most often come in the form of hardware wallets, which are physical devices that store private keys. Cold wallets stand in contrast to hot wallets, which are connected to the internet.

Collateral: Collateral refers to an asset that is offered as security for repayment of a loan, to be forfeited in the event of a default (a situation in which an individual is unable to pay back a loan). When borrowing money on a DeFi lending platform, collateral in the form of a token must be locked. The collateral is returned upon repayment of the loan. If the loan is not repaid, the collateral remains locked on the platform.

Confirmation: A cryptocurrency transaction is considered confirmed when it is included in a block on the blockchain. Each new block after the first one is an additional confirmation for that transaction.

Consensus: Consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain.

Contract Address: The contract address is usually given when a contract is deployed to the Ethereum Blockchain. The address comes from the creator’s address and the number of transactions sent from that address (the “nonce”).

Correction: A correction, in a stock trading and crypto investing context, is an occurrence that signifies that the market, or a specific asset has just had a large drop in price from its recent higher price. The process usually results in the price returning to a level more established over the long-term. Corrections are often followed by a recovery in price and a continued uptrend, but can sometimes indicate a prolonged long-term market downturn called a bear market.

CryptoShort for cryptocurrency. See Cryptocurrency.

Cryptocurrency: Cryptocurrency is a digital asset that circulates on the internet as a medium of exchange. It employs blockchain technology — a distributed ledger of transactions that is publicly available — and is secured by advanced cryptography. This revolutionary asset architecture allows for certainty that cryptocurrency coins and tokens cannot be double-spent even in the absence of a centralized intermediary. The first cryptocurrency to achieve mainstream success was Bitcoin which paved the way for the proliferation of many other cryptocurrencies.

 

D

DAO (Decentralized Autonomous Organization): A decentralized autonomous organization (DAO) is a blockchain-based organization that is democratically managed by members through self-enforcing open source code and typically formalized by smart contracts. DAOs lack centralized management structures. All decisions are voted upon by network stakeholders. DAOs often utilize a native utility token to incentivize network participation, and allocate proportional voting power to stakeholders based on the size of their stake. As DAOs are built on top blockchains — often Ethereum — their transactions are executed transparently on the underlying blockchain.

DApps: A type of application that runs on a decentralized network, avoiding a single point of failure. DApps are any computer applications whose operation is maintained by a distributed network of computer-nodes, as opposed to a single server.

Darkweb: The dark web is a segment of the internet intentionally hidden from conventional search engines and only accessible by means of special software. The most common web browsers used to access the dark web are Tor and I2P, which use masked IP addresses in order to hide the identity of dark web users and site owners. The dark web is typically associated with cybercrime and illicit activity. The dark web constitutes a small sliver of the larger deep web, which is also hidden from conventional search engines, but is not generally associated with illicit activity.

DCA: DCA stands for Dollar Cost Averaging, a trading technique to remove any short-term price speculation out of your investments. Dollar cost averaging, or DCA, means investing set amount of money into an asset on a regular basis, disregarding the price action.

Dead Cat Bounce: A dead cat bounce is a technical analysis charting pattern that refers to a temporary recovery in the price of an asset that is experiencing a prolonged decline, followed by a continued downtrend. A dead cat bounce is essentially a fake out in the recovery of the price of an asset. This term is derived from a Wall Street adage that “even a dead cat will bounce if it falls from a great height.”

DeFi: Decentralized finance (DeFi) is a major growth sector in blockchain that offers peer-to-peer financial services and technologies built on Ethereum. DeFi exchanges, loans, investments, and tokens are significantly more transparent, permissionless, trustless, and interoperable than traditional financial services, and trend towards decentralized governance organizational methods that foster equitable stakeholder ownership. Platform composability in DeFi has resulted in unlocking value through interoperability with innovations like yield farming and liquidity tokens.

Dex (Decentralized Exchange): A decentralized exchange (DEX) is a financial services platform for buying, trading, and selling digital assets. On a DEX, users transact directly and peer-to-peer on the blockchain without a centralized intermediary. DEXs do not serve as custodians of users’ funds, and are often democratically managed with decentralized governance organization. Without a central authority charging fees for services, DEXs tend to be cheaper than their centralized counterparts.

Digital Identity: A digital identity is data that is used to represent an individual, organization, or device. For individuals, digital identities can be digital versions of government documents that verify one’s date of birth (DOB), nationality, sex, and other important information. It also refers to an individual’s social media profiles, email, and internet usage history. The concerns with digital identity — particularly for individuals — typically revolve around security and personal privacy. Often in blockchain, a digital identity is directly linked to a Decentralized Identity (DID), which once established, allows for a blockchain-based ID that can be verified through key-pair cryptography.

Dildo: (Not what you are thinking) The red or green “candles,” or vertical lines, on graphs showing cryptocurrency market data. Dildos simply show price movements on graphs related to cryptocurrency.

Dip: A dip is when markets experience a short or protracted downturn. A dip is the process of buying an asset after it has declined in value. 

Discord: Discord is an instant messaging (IM), voice over internet protocol (VOIP), and digital distribution platform for creating online communities. Discord enables users to communicate via voice calls, video calls, and instant messaging, and to share media and files in private chat environments organized into “servers.” Discord has become well-known in the blockchain industry (along with Telegram) as a hosting community where blockchain projects give regular updates and allow fans, investors, and users to ask questions and keep in touch with founding team members.

Dividens: Dividends are regular payments made by a stock issuing company to its company’s shareholders. While not all stocks pay dividends, the exact distribution of stock dividends is determined by a company’s board of directors. Dividends are usually paid in cash, although they are sometimes paid in new shares of additional stock.

Dolphin: Someone with a moderate holding of cryptocurrency.

DYOR: The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing.

Dump: A dump is where a substantial amount of cryptocurrency is sold off in quick succession, often by a whale. In some cases, these sell-offs will drag the price of an asset downwards.

Dumping: A collective market sell-off that occurs when large quantities of a particular cryptocurrency are sold in a short period of time.

Dusting Attack: An attack that aims to uncover the identity of a wallet’s owner, information that can subsequently be used in phishing scams.

 

E

Encryption: Encryption is a method through which information can be made into code that hides the information of its true meaning. The science behind encrypting as well as decrypting information is known as cryptography

Exchange: A cryptocurrency exchange is a type of digital currency exchange where digital assets can be bought, sold, and traded for fiat currency or other digital assets. They are similar to mainstream exchanges where traditional stocks are bought and sold in the type of transactions and orders that users can execute. Crypt legal compliance in accordance with the jurisdictions in which they operate. As the cryptocurrency space continues to grow, more exchanges have emerged which provide competitive trading fees, exchange rates, and user-friendly.

Exchange Coin: Exchange coins are digital assets launched on a crypto exchange via an Initial Exchange Offering (IEO), a fundraising method for crypto companies that’s similar to an Initial Coin Offering (ICO). There are two different types of exchange coins: those launched by the exchange itself as the native coin or token of the platform, and those launched by other crypto companies using the token launch infrastructure and services of the exchange. These exchange assets can either be tokens (digital assets enabled by an existing blockchain) or coins (digital assets that run on their own blockchain).

 

F

Fiat: Fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash or it can be represented electronically,such as with bank credits. 

Fish: Someone who has a small crypto investment.

Flippening: A hypothetical scenario where Ethereum’s market cap overtakes Bitcoin’s.

Flipping: An investment strategy where you buy something with the goal of reselling for a profit later, usually in a short period of time.

FOMO: An acronym that stands for “Fear of Missing Out.”

Fork: Forks, or chain splits, create an alternate version of the blockchain, leaving two blockchains to run simultaneously.

FUD: An acronym that stands for “Fear, Uncertainty and Doubt.” It is a strategy to influence perception of certain cryptocurrencies or the cryptocurrency market in general by spreading negative, misleading or false information.

FUDster: Someone that spreads fud (negativity).

Fungible: In cryptocurrency, fungibility is when a coin or token can be replaced by any other identical coin or token.

 

G

Gains: an increase of value or profits.

Gas: The fees associated with transacting and executing smart contracts on the Ethereum , Binance , or many other blockchains are referred to as gas. For example; Decentralized applications (dApps) on the Ethereum blockchain run using smart contracts that lay out rules for execution of events. The execution of events happens through transactions, which come with a cost to the network. These costs are figured based on the computational power required for each action and how long each action operates. Gas costs are denoted in gwei, a denomination of ether (ETH), equal to 0.000000001 ETH. Gas was built into the system to allocate resources to the network of miners who validate transactions and create new blocks. Gas also acts as a spam mitigation tool. By adding a cost to each transaction, nefarious actors who might try to disrupt the system by sending a large number of tiny transactions are deterred from doing so.

Gas Fees: Gas fees are payments made by users to cover transaction or smart contract execution costs on the Ethereum blockchain network, in compensation for the computing energy that such executions require. Gas fees are generally priced in a small amount of the cryptocurrency ether (ETH). The sender of a transaction can decide if they want the transaction to be sent slowly or quickly. The faster the transaction is processed, the more gas fees it will require.

Gems: Gem is a term for relatively unknown low-cap coins that have immense potential or are grossly undervalued.

Governance Token: A governance token provides holders with a degree of influence over a platform’s protocol, products, and future functionality. Governance tokens are often issued via decentralized protocols that aim to encourage community-led growth and self-sustainability. Holders of governance tokens are typically able to propose changes to the protocol as well as use their tokens to vote on those changes. Governance tokens are used to democratically manage a protocol in a fair and decentralized manner. On Proof-of-Stake (PoS) blockchains, governance tokens may be staked within network validator nodes to secure the platform’s security and operational efficiency in exchange for regular staking rewards.

Gwei: Gwei is a denomination of ether, the native cryptocurrency of the Ethereum blockchain. 1 gwei is equal to 0.000000001 ETH. Gas fees, which are fees charged on every Ethereum transaction, are denominated in Gwei.

 

H

Hacking: Hacking is the process of using a computer to manipulate another computer or computer system in an unauthorized fashion.

Hacker: Computer hackers are often malicious actors who use their programming skills and technical expertise to break into computer systems or networks to steal, destroy, or modify data. Hackers are often employed by governments, large enterprises, or other organizations for varying purposes such as law enforcement agencies in order to retrieve information that could lead to the arrest and conviction of criminals.

Halving: A halving is when the reward allocated to miners for mining new blocks is reduced by 50%. Halving events usually occur at fixed intervals. For example, Bitcoin’s block reward is halved every 210,000 blocks, and happens about every four years.

Hardware Wallet: A hardware wallet is a wallet for cryptocurrencies that usually resemble a USB stick.

High: The high, or highest price, is one of four main data points used for day trading on the stock market. The other three are called opening price, low, and close — and all four are collectively known as OHLC. The high is generally classified as the highest price obtained during the last 24-hour trading period since the markets opened. Cryptocurrency markets are open 24 hours a day, every day of the year unlike the traditional stock market, which is closed for trading on weekends.

Hodl: “Hodl” is a slang expression that refers to the holding of cryptocurrency assets, as opposed to liquidation. The term was derived from a post on Bitcointalk in which the poster misspelled ‘hold,’ and subsequently became a meme.

Hot Wallet: The term hot wallet refers to a cryptocurrency wallet that is connected to the internet. The wallet’s assets are therefore held online, as opposed to a cold wallet, which is held in an offline environment.

I

Initial Coin Offering (ICO): Initial Coin Offerings (ICOs) or token sales are a fundraising mechanism made possible by blockchain and Ethereum that incorporates the creation and sale of a token to raise funds for a project — usually a new blockchain platform, decentralized application (dApp), or digital asset product. Instead of providing buyers with equity or shares, an ICO sells tokens that usually claim future utility in the products they are sold to fund. Despite this, ICO-launched tokens may still be considered securities, and are subject to jurisdictional regulation.

Insider Trading: Insider trading is an illegal activity in which a person who has access to non-public, material information about a company utilizes that information to make advantageous trades of the company’s stock.

Invest: Investing is when you put money in a financial scheme with the intent of making a gain.
IP Address: IP addresses are unique numeric addresses assigned to devices connected to the internet or a local network.

J

JOMO: Acronym for “Joy of missing out.”

 

K

Key: A cryptographic key is a string of bits that is used by an encryption algorithm to convert encrypted ciphertext into plaintext and vice versa as part of a paired key access mechanism. Keys are usually randomly generated and, unlike a password, are not intended to be memorized by users.

Know Your Customer (KYC): Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.

 

L

Lambo: Slang for the type of car that many crypto enthusiasts aspire to buy when their digital assets “moon” — or rise in value substantially.

Laser Eyes: Laser eyes is a viral Twitter meme that is used by Bitcoiners who attempt to push the price of BTC to its new all-time highs.

Liquidity Mining: Liquidity mining is a mechanism or process in which participants supply cryptocurrencies into liquidity pools, and are rewarded with fees and tokens based on their share.

Liquidity Provider: Liquidity providers are decentralized exchange users who fund a liquidity pool with tokens they own.

Listing: An exchange listing is when an exchange initially chooses to offer trading pairs for a specific crypto asset. When an asset is listed on a large, reputable crypto exchange and given major trading pairs such as BTC or ETH, it signifies trust in the project and its founders. A major exchange listing also usually signifies that the newly listed asset possesses a sufficient amount of liquidity. Crypto exchange listings are similar to when a traditional company’s shares are first listed for trading on a specific stock exchange which similarly signifies that the company is trusted by the exchange.

 

M

Market Capitalization (Market Cap): Total capitalization of a cryptocurrency’s price. It is one of the ways to rank the relative size of a cryptocurrency. 

Master Node: Master nodes are part of the infrastructure that sustains cryptocurrencies such as Bitcoin, Ethereum, and Dash. Unlike regular nodes, master nodes do not add new blocks of transactions to the blockchain. Instead, they verify new blocks and perform special roles in governing the blockchain.

Maximum Supply: Maximum supply refers to the maximum number of coins or tokens that will ever exist in the lifetime of a specific crypto asset, such as the maximum number of bitcoin (BTC) or ether (ETH). This classification is analogous to the number of fully diluted shares of an asset that is traded in a traditional stock market. The maximum supply is different than the circulating supply (which represents the number of tokens circulating in the market publicly) and the total supply (which represents the number of tokens that have already been created, minus any burned tokens).

Medium: Medium is a blogging platform that hosts articles written by a combination of amateur and professional writers. Medium has an in-house staff of paid writers and also incentivizes independent writers through a compensation program based on reader engagement. While some articles are free, some are behind a paywall and require a paid membership to access them. In the blockchain industry, Medium has become a popular place for blockchain teams to reach their communities, post technical updates, and share project-related news.

Meme Coin: A memecoin is a cryptocurrency or crypto token based on a viral joke or cultural reference. Projects built around memecoins rely heavily on social media hype to attract new users/investors. This means that while certain memecoins may have purported use cases and sound cryptoeconomics, these projects can be strongly hype-driven and often lean heavily on the strength of their marketing efforts and community initiatives to drive adoption.

MetaMask: MetaMask is a web browser-based blockchain wallet that allows users to connect to Ethereum decentralized applications (dApps) without running an Ethereum full node. MetaMask is also used to integrate to numerous decentralized exchange (DEX) platforms like Uniswap. Currently (December 2020) a mobile-based version of MetaMask is undergoing extensive development and will be fully launched in 2021.

Metaverse: A metaverse is a shared virtual reality world.

Miner: Miners are an essential component of every Proof-of-Work (PoW) blockchain consensus protocol, and are responsible for validating new transactions and recording them on the blockchain ledger. Miners validate these transactions by solving complex math problems, which results in the minting of new tokens while reinforcing the network’s security and trustworthiness. In order to incentivize users to allocate processing power to mine new blocks, miners are typically rewarded a fraction of a network’s native currency with every successfully mined block.

Mining: Mining is the process of using computing power to verify and record blockchain transactions. Mining also results in the creation of new coins, which miners earn as a reward for their efforts. Mining is utilized in Proof-of-Work (PoW) blockchains.

Minting: Minting is a process that is used to create new tokens for a blockchain network. Minting requires no resources and is used to increase the circulating supply. It is often carried out by validator nodes (in systems that contain these types of nodes). Cryptocurrencies that are minted often have no upper supply limit and tend to rely on the constant growth of the project’s economic system in order to remain valuable. Crypto minting is similar to the minting of fiat money within the traditional finance and banking process, in that there is in theory no limit to the amount of money that can be printed, except that the printing must be controlled to prevent excessive inflation/devaluation.

Mobile Wallet: A mobile wallet is a cryptocurrency wallet that is installed on a smartphone. Mobile wallets are typically ‘hot’ wallets, meaning they are connected to the internet.

Moon: A situation where there is a continuous upward movement in the price of a cryptocurrency. 

Mt. GOX: A crypto exchange for buying and selling Bitcoin that closed in 2014 after a major hack.

 

N

NFT: A non-fungible token (NFT) is a specialized type of cryptographic token that represents a unique digital asset that cannot be exchanged for another type of digital asset. This characteristic is in contrast to cryptocurrencies and blockchain utility tokens (like Bitcoin and Ethereum) that are fungible in nature. NFT’s are created via smart contract technology and are classified within the ERC-721 token standard.

Node: The most basic unit of blockchain infrastructure that stores data.

Nonce: A nonce (which stands for “number only used once”) is a number that is added to all the data in a block prior to the hashing of that block in the Proof-of-Work mining process.

Noob: Someone that is new to crypto

 

O

OpenSea: OpenSea is one of the world’s foremost peer-to-peer marketplaces for buying, selling, and auctioning digital non-fungible tokens (NFTs). OpenSea, like many of its competitors, allows users to buy, sell, and discover different types of digital art, ranging from collectible digital versions of Nike basketball shoes, to paintings of famous crypto entrepreneurs like Vitalik Buterin, and anything in between. The OpenSea marketplace, like most NFT marketplaces in the industry, accepts payment for NFTs in Ethereum’s token, ether (ETH).

Oracle: Oracles are third-party information service providers that send external real-world data to a blockchain protocol (often to a smart contract or numerous smart contracts). Oracles give blockchain network protocol’s significantly more power because they are able to exponentially secure, verify, and strengthen the validity of data that a blockchain network receives and makes use of (because blockchains and smart contracts are often closed systems). Oracles can be decentralized and rely on numerous data sets, or centralized and controlled by a single entity. Currently, one of the main uses of blockchain-based oracles is to provide price and data feeds needed for the trustless execution of smart contracts used by financial mechanisms in the DeFi sector.

Orphan: A valid block on the blockchain that is not part of the main chain.

 

P

Paper Wallet: A paper wallet is an offline method (a piece of paper) that includes a user’s private key, public key, and wallet address that are used to store and transact cryptocurrencies (when connected online to an exchange or blockchain node). Paper wallets were primarily used around the time Bitcoin was first created but presently they are quite rare and have been replaced by more efficient hardware and software wallets.

Passive Income: Passive income is money produced from investments that do not require the earner to be actively involved.

Peg: Pegs are a mechanism that ties the value of one cryptocurrency to another at a 1:1 equivalent basis. Pegs primarily exist to facilitate the trading of non-similar assets, which is currently hindered because of the reliance on distinct blockchain protocols. Pegging also allows users to buy and sell specific assets that are pegged on a 1:1 ratio to their native asset (for example, the BEP2 Binance Chain version of bitcoin is pegged to the original version of bitcoin from the Bitcoin network) without having to wait for long confirmation times or pay high transaction fees to transfer assets between blockchains.

Phishing: A phishing attack is a common computer-based attack method that is used to obtain sensitive information like email addresses, private key addresses, mobile phone numbers, and credit card details from an unknowing victim. Phishing attacks are carried out by malicious third parties posing as trustworthy entities like co-workers or institutions of authority to gain access to accounts. While phishing attacks are a common form of technological crime, they are confidence tricks more than they are hacks.

Portfolio: A collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual.

Ponzi Scheme: A Ponzi scheme is a type of fraudulent investment or scam, often characterized by promising dramatically high rates of return and minimal risk to investors. Ponzi schemes generally function by offering profits to earlier investors with funds obtained by later investors. They often seek to make victims believe profits are coming from legitimate business, when in fact the alleged ‘profits’ are funds taken from later investors to create a perception of profitability among earlier investors. A Ponzi scheme and a pyramid scheme are related concepts. Ponzi schemes tend to eventually bottom out when the flood of investment capital from new investors starts to die off.

Presale: A pre-sale is held by some blockchain enterprises after the private sale has been completed, but before the public sale, whereby a specific allocation of coins is sold to prospective investors. This pre-sale is often held to give institutional investors, and smaller investment funds that missed out on the private sale, a chance to contribute. Often family members and close friends of project founders, as well as high net worth individuals (HNWIs), are given this early funding round investment opportunity prior to the Initial Coin Offering (ICO) or similar public offering, such as an Initial Exchange Offering (IEO).

Privacy Coin: A privacy coin is a cryptocurrency that is mainly designed to help preserve the privacy of its users and its underlying network protocol — usually by concealing identity and transaction data during exchange of information and tokenized assets. Typically, blockchain networks that are focused on privacy make use of zero-knowledge proofs (often zk-SNARKs) — a type of cryptographic proof used for concealing information in a cryptographically verifiable fashion that is essentially immutable and tamper-proof. Monero and Zcash are two of the most well-known blockchain systems that are privacy-focused and that make use of such cryptographic proofs.

Private Key: Public-key cryptography (asymmetric cryptography) is a specialized cryptographic system that utilizes pairs of lengthy alphanumeric keys that only function when used in tandem. Public keys represent a wallet address that can be distributed to others. Private keys are to be known only by their owner and grant access to funds. The generation of these keys is made possible by the usage of cryptographic algorithms based on mathematical problems to produce a one-way function.

Private Sale: A private sale is generally the first round of funding that is allocated to a blockchain startup prior to the pre-sale and public sale, or Initial Coin Offering (ICO). The purpose of a private sale is to give large institutional investors the opportunity to invest large amounts of capital to fund the development of projects early on. While this practice may be criticized because of its arguably centralized approach, it is often a viable way for startups to acquire the capital they need to realize their ongoing development goals.

Proof of Stake: Proof of Stake (PoS) is emerging as one of the most widely used blockchain consensus mechanisms in existence. PoS networks incentivize participants to stake native coins in a network of validator nodes. Upon the close of a transaction block, validator nodes are eligible to be randomly chosen to validate block data, thus generating the subsequent block, and earning native coins as a reward. A robust nodal network offers increased network security, resiliency, and computational power. Proof-of-Stake systems also generally enable validator nodes to contribute democratically in decentralized platform governance through voting on key updates and decisions. While still a recent innovation, PoS networks are already proving they can be faster and more scalable than Proof-of-Work (PoW) blockchains, in addition to being more energy efficient.

Proof of Work: Proof of Work (PoW) is a blockchain consensus mechanism first popularized by the Bitcoin blockchain network. Proof-of-Work systems rely on a process of mining to maintain the network. Miners provide computer hardware that competes to solve the complex cryptographic puzzles required to confirm data transacted on the network, and are rewarded for doing so with the network’s underlying cryptographic token for doing so. Proof-of-Work blockchain systems are decentralized and secure as compared to other network consensus methodologies, but typically struggle to achieve the network scalability needed for widespread global enterprise adoption. Proof of Work is also criticized for its high energy intensivity.

Public Address: A public address is the cryptographic hash of a public key, allowing the user to use it as an address to request for payment.

Public Key: A public key allows you to receive cryptocurrency transactions. It’s a cryptographic code that’s paired to a private key. While anyone can send transactions to a public key, you need the private key to “unlock” them and prove that you are the owner of the cryptocurrency received in the transaction. You can therefore share this key with the public, while your private key should be kept a secret. The public key that can receive transactions is usually an address, which is simply a shortened form of your public key.

Public Sale: A public sale, or Initial Coin Offering (ICO), is typically the third and final funding round that a blockchain startup offers after the private sale and pre-sale rounds. Public sales are generally open to retail investors, large investors, and the general public with the only prerequisite to participation being registration and the provision of valid Know Your Customer (KYC) identification documentation. ICOs gained widespread popularity in 2017 — corresponding with the 2017 crypto bull market — and while they still exist, ICOs have more recently evolved into other funding models including Initial Exchange Offerings (IEOs) and Initial DEX Offerings (IDO).

Pump and Dump: A pump and dump is a scheme that occurs when a trader or investment firm buys a large amount of an asset — sometimes illegally — and later promotes, or “pumps” up the underlying company with misleading information to draw unsuspecting investors to buy in, thus further increasing its value. Shortly afterwards, the trader or investment firm “dumps” by selling the asset at a much higher price, which results in losses to investors who bought in at a later time. In crypto markets, this often occurs when a whale buys a large quantity of a specific crypto asset with a large sum of money to drastically increase the price before selling after a substantial profit.

 

Q

Query: In computing, a query is a specific request for information retrieval using a database or computer system. Queries can be entered into many types of computing platforms or databases, and are used both publicly and privately by retail users, enterprises, governments, and other constituents. As they relate to blockchain systems and computing, queries are often carried out through decentralized indexing and querying platforms that make use of a graph. Graphs are an abstract data type that is designed to make use of undirected graphs and directed graphs through the mathematical field of graph theory.

QR Code: A quick response code (QR code) is a type of matrix barcode that uses a machine-readable optical label (typically scanned with a mobile phone) containing sensitive information about the item it is attached to. QR codes often contain data for a tracker, locator, or identifier that points to a mobile application or website. QR codes use four standardized encoding methods (byte/binary, alphanumeric, numeric, kanji) to store data.

R

Rank: The relative position of a cryptocurrency by market capitalization.

Rebase Token: A token designed so that the circulating supply adjusts automatically according to price fluctuations.

Rebrand: A token or entity that has gone through a name change

Recover Phrase (Recovery Seed): A recovery phrase, also referred to as a “seed phrase” or “recovery seed phrase,” is a 12, 18, or 24-word code that is used as a backup access mechanism when a user loses access to a cryptocurrency wallet or associated private key. The seed phrase matches information stored inside a corresponding wallet that can unlock the private key needed to regain access.

Reddit: Reddit is a network of communities where people can dive into their interests, hobbies and passions.

Rekt: A shorthand slang for “wrecked,” describing a bad loss in a trade.

Roadmap: A shorthand slang for “wrecked,” describing a bad loss in a trade.

ROI: Short for “Return on Investment,” the ratio between the net profit and cost of investing.

Rug Pull: A rug pull is a type of scam whereby a dubious blockchain project is “launched,” only for the founding team to run away with investors’ funds. Rug pulls typically occur in the decentralized finance (DeFi) ecosystem often via a decentralized exchange (DEX) which enables malicious actors to create a cryptocurrency, list it on a DEX, and pair it with an asset like bitcoin (BTC) or ether (ETH). Then, after a substantial number of unsuspecting investors exchange their ETH or BTC for the listed token, the founders withdraw funds from the liquidity pool, leaving investors holding essentially worthless assets.

 

S

Satoshi: The smallest unit of bitcoin with a value of 0.00000001 BTC.

Satoshi Nakamoto: The individual or group of individuals that created Bitcoin.

Scam: A scheme that is designed to dupe people out of cash or crypto.

Scammer: A scammer is someone that participates in a fraudulent scheme.

Schilling:The act of enthusiastically promoting a cryptocurrency or ICO project.

Security Exchange Commission: The U.S. Securities and Exchange Commission (SEC) is a large independent body of the U.S. federal government that is responsible for proposing securities rules, enforcing federal securities laws, and regulating the U.S. investment industry. The SEC is responsible for protecting investors, maintaining fair and smooth functioning of U.S. securities markets, and facilitating capital formation.

Seed Phrase: A seed phrase, also referred to as a “recovery phrase’ is a 12, 18, or 24-word code that is used as a backup access mechanism when a user loses access to a cryptocurrency wallet or associated private key. The seed phrase matches information stored inside the corresponding wallet that can unlock the private key needed to regain access.

Sell-Off: A sell-off is a sudden, high-volume sale of a security or other asset which typically reduces the price of the relevant asset, at least in the short term. While there are a variety of reasons for why a sell-off may occur, in most instances sell-offs take place as a result of widespread market panic, either due to negative news or a black swan event, or coordinated market manipulation initiated by institutional investors or “whales”.

Sell Wall: A sell wall is said to occur when a large limit order is placed at a specific price level to sell a large amount of a certain asset. Sell walls can result in a substantial drop in price of the asset, especially if a large amount is sold by a whale or high net-worth individual (HNWI). Sell walls can sometimes be considered a form of market manipulation, when a trader creates a large limit sell order at a certain price, then also submits a large leveraged short position betting that the price of the asset will go down in price.

Settlement: Settlement is the process of determining when a transaction is completely confirmed, or settled, by all interested parties. Until settlement provides confirmation of a completed exchange, the transaction remains pending and unresolved. The speed of settlement finality has major economic repercussions for businesses. Longer settlement times may lead to costly and time-consuming delays, and add up throughout a marketplace to significantly slow the process of conducting business throughout many industries. Shorter settlement times speed up business operations, save money, and remove uncertainty.
ShibaSwap: ShibaSwap is a decentralized exchange (DEX) currently in development by the Shiba Inu blockchain project. ShibaSwap is designed to create a safe and user-friendly environment to trade cryptocurrencies in a fully decentralized manner. As of early 2021, little has been publicized about how the DEX would differ from platforms already on the market.
Shielded Transaction: Shielded transactions are a unique transaction type that conceals specific data about a transaction, such as the amount being transferred or the involved account addresses, in a way which is still verifiable on the blockchain. While different blockchain projects deploy different methods to enable the use of shielded transactions.
Short: A trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. ln the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making  the difference in profit.
Short Position (Shorting): Short selling (also known as “going short” or “shorting”) is the practice of seeking to profit from the decrease in an asset’s price (for example, short selling a stock). A short seller sells shares borrowed from a broker. If the price of the share goes down, they can be purchased at a discount and returned to the broker. The short seller can then pocket the difference between the purchase price and the price the stock was initially shorted — or sold — at.
Side Chain: A sidechain (or side chain) is an external secondary blockchain protocol that is connected to a primary blockchain network (mainchain). Sidechains are typically designed to allow for the transfer of data and value between themselves and the mainchain, and oftentimes use a different consensus mechanism than the mainchain. As a result, sidechains can allow for a higher degree of flexibility and scalability, given that systems with a significant sidechain interoperability component are often designed to cater to a broader range of enterprise and individual users. For example, some sidechain solutions allow for the transfer of assets back and forth between multiple protocols like Ethereum and Bitcoin.
Signal: Signals are a call to action to either buy or sell an asset.

Signature: A cryptographic signature is a mathematical mechanism that is used to verify the authenticity of a digital message or digital document within a digital network. Cryptographic signatures are commonly used for financial transactions, digital contract management, software distribution, and a broad array of other use cases that prioritize the accurate detection and prevention of forgery and data-tampering. In regards to blockchain technology, cryptographic signatures are typically used to prove that the correct private key was used to initiate and send a transaction through a complex authentication process that involves the use of both a private and public key.

SIM Swap Attack: A SIM swap attack is an attack that involves taking control of a victim’s SIM card, which stores private user data and a broad range of user access credentials. Attackers executing a SIM swap attack will oftentimes deploy a variety of social engineering techniques, such as calling a cell phone provider and impersonating the victim, with the goal of obtaining sensitive personal information about the victim. If successful, the attacker will typically use the information they acquired to request a new SIM card, which will allow them to gain control over the victim’s phone number and whatever potentially sensitive data is linked to that number.

Silk Road: Silk Road was a former online black market that was launched in February 2011, and subsequently shut down in October 2013 by the FBI. Silk Road served as a platform for selling illegal drugs, weapons, and other sensitive commodities and data. The platform relied on the Tor web browser that allowed users to remain anonymous. At its height, the website provided services to over 100,000 buyers, and often accepted payments in bitcoin (BTC). The founder, Ross Ulbricht, received a double life sentence without the possibility of parole for 40 years, though some human rights activists oppose his sentencing.

Skale Elastic Sidechains: SKALE Elastic Sidechains are highly configurable blockchains that operate on virtualized subnodes. Users create Elastic Sidechains by submitting their request to the SKALE Manager along with the required subscription fee.

Skale Node Core: A SKALE Network node is known as a SKALE Node Core. Each of these nodes is compartmentalized into virtualized subnodes to accommodate multiple Elastic Sidechains simultaneously.

Slippage: Within a financial context, slippage refers to the difference between the expected price of a trade relative to the actual price at which the trade is executed. Slippage generally occurs when an investor buys or sells an asset on a platform with poor liquidity and low trading volume. If there is a large gap between the bid-ask price on an exchange’s order book, the asset purchaser may end up paying more for an asset or receive less of the asset than expected once the trade has been executed.

Small Cap: Within a financial context, slippage refers to the difference between the expected price of a trade relative to the actual price at which the trade is executed. Slippage generally occurs when an investor buys or sells an asset on a platform with poor liquidity and low trading volume. If there is a large gap between the bid-ask price on an exchange’s order book, the asset purchaser may end up paying more for an asset or receive less of the asset than expected once the trade has been executed.

Smart Contract: A smart contract is a self-executing code or protocol that carries out a set of instructions that is verified on the blockchain. These contracts are trustless, autonomous, decentralized, and transparent; they are irreversible and unmodifiable once deployed. While they have several use cases, some of the most popular are various financial contracts (loans, derivatives, trading). They can also be used for legal contracts, identity management, and numerous other use cases. Popular in decentralized finance (DeFi), smart contracts can be bundled into decentralized applications (dApps) to execute more complex functions.

Smart Token: Smart tokens are simply regular tokens that not only transmit value they contain but also all the information needed to execute a transaction simultaneously.

Smishing: Smishing is a variant of a phishing attack which involves the use of misleading SMS or text messages to misdirect a target into sharing sensitive information or access. The text messages involved in a smishing attack often contain malicious links or a fraudulent customer support or authoritative phone intended for the target to click on or call. If a target responds to this call to action (CTA), it will typically go on to trigger some form of compromising activity, resulting in the divulging of sensitive information such as one’s Social Security Number or Credit Card details, or losing access to one’s devices.

Software Wallet: A software wallet is a digital wallet which stores a user’s public and/or private keys, thereby securing the user’s digital assets. Since software wallets are essentially computer programs, they are typically locally stored in a user’s desktop or mobile phone and are remotely connected to the internet. Software wallets are oftentimes more convenient than hardware wallets, but are also generally more susceptible to hacks. Common types of software wallets include desktop wallets and mobile wallets. When using a software wallet, it is important for users to keep devices and software up to date in order to minimize the risk of a cybersecurity breach.

Spear Phishing: Spear Phishing is a variant of phishing which targets a specific individual, organization, or business. As is the case with most phishing attacks, spear phishing typically entails the use of misleading emails or other forms of electronic communications. Attackers may tailor these fraudulent communications with the target’s position within an organization in mind, or include other contextual information to more effectively mislead the victim. As a result, spear phishing requires more background research on a target than most other forms of phishing attacks.

Spot: A contract or transaction buying or selling a cryptocurrency for immediate settlement, or payment and delivery, of the cryptocurrency on the market.

Stablecoin: A stablecoin is a digital currency created with the intent of holding a stable value. The value of most existing stablecoins is tied directly to a predetermined fiat currency or tangible commodity, like Gemini dollar (GUSD), which is pegged 1:1 to the US dollar. However, stablecoins can also achieve price-stability through collateralization against other cryptocurrencies or algorithmic token supply management. Since stablecoins do not fluctuate significantly in price, they are designed to be used rather than as an investment.

Staking: Participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards.Staking is the process through which a blockchain network user ‘stakes’ or locks their cryptocurrency assets on a network as part of the consensus mechanism, thus ensuring the security and functionality of the chain. Staked assets are usually held in a validator node or crypto wallet, and in order to encourage staking most projects reward the holders of staked tokens with annualized financial returns, which are typically paid out on a regular basis. Staking is a core feature of Proof-of-Stake (PoS) blockchain protocols, and each blockchain project which incorporates a staking feature has its own policies for staking requirements and withdrawal restrictions.

Staking Pool: On a Proof-of-Stake network, staking pools allow multiple cryptocurrency stakeholders to combine tokens in a collective pool in order to secure the benefits held by a larger, collectivized network stake. By combining computational resources, the individual stakeholders who choose to participate in a staking pool aggregate their staking power to more effectively verify and validate new blocks, which consequently increases their chances of earning a portion of the resulting block rewards.

Storage: Decentralized storage refers to the concept of storing files online by splitting them into encrypted fragments and delegating these fragments to multiple nodes on a distributed network, e.g.

Swap: A swap is a derivative contract that enables parties to exchange the cash flows or value of one asset to another. Usually swaps involve cash flows contingent on a notional principal amount such as a bond or loan. Generally, the principal amount does not change hands during a swap, while different portions of cash flow in the agreement make up one leg. Often one cash flow exchange is fixed while the other(s) are variable based on a floating exchange rate, specific interest rate, or index price. Derivatives swaps are typically carried out by large institutions and take place over-the-counter (OTC).

Swing Trader: Swing trading is a market trading strategy that attempts to capture short- to medium-term gains based on fluctuations in the value of stocks, commodities, and/or currencies over a few days or weeks. In order to be effective, swing traders must actively monitor their positions and time trades meticulously. Their risk/reward ratio sits on the spectrum between that of day traders and trend traders. In most cases, swing traders typically rely on charted technical indicators to identify viable trading opportunities, although technical analysis is regarded by many as an imperfect science.

Symbol: The ticker of a cryptocurrency; for example, Bitcoin’s symbol is BTC.

 

T

Telegram: Telegram is a free cloud-based cross-platform instant messaging (IM) platform initially launched in 2013. The platform also provides end-to-end encrypted Voice Over Internet Protocol (VOIP) calling, file sharing, and other services. Telegram is built for Android, iOS, Windows, Mac, and Linux. It is commonly used in the blockchain industry because of its ability to create project-based business pages for different blockchain platforms that allow prospective users and clients to ask questions regarding ongoing blockchain project development. Telegram has sometimes come under fire because of its extremely open structure, which has become prevalent for scams and malicious behavior.

Ticker: A ticker, or token symbol, is an abbreviation used to signify a specific cryptocurrency and its underlying blockchain project. Token symbols are usually 3 or 4 characters long, such as BTC or LINK which represent Bitcoin and Chainlink respectively. Token symbols are designed to make cryptocurrency names more easily searchable and readable, especially when looking at trading pairs or charts.

Time Stamp: A timestamp is a digital record or log used to identify the moment in time that a transaction occurred. Timestamps recorded onto a blockchain’s ledger are immutable and unique to the specific transaction the timestamp is recording.

Token: Within the context of blockchain technology, a token generally refers to a unit of value for a programmable asset that is managed by a smart contract and an underlying distributed ledger. Tokens are the primary means of transferring and storing value on a blockchain network — most often Ethereum. Tokens can also be designed to be either fungible or non-fungible, depending on a network’s specific needs. And while many tokens are primarily used for simple transactions, an increasing number of blockchain projects are designing tokens encoded with a variety of wide-ranging use cases, primarily in regards to on-chain governance and network maintenance.

Token Lockup: Token lockup refers to a time period during which cryptocurrency tokens cannot be exchanged or traded.

Token Migration: Token migration refers to the process of moving tokens from one blockchain to another as a result of a change in the blockchain.

Token Swap: A token swap can refer to one of two different processes. First, the direct exchange of a one crypto asset to another between two users — say, from ETH to BTC — which is usually facilitated through a special exchange service or decentralized exchange (DEX). Second, the migration of a crypto asset from one specific blockchain protocol to another — like, for example, if a token originally built for the Ethereum blockchain was redesigned to run on the Binance Smart Chain (BSC).

Tokenize: The process by which real-world assets are turned into something of digital value called a token, often subsequently able to offer ownership of parts of this asset to different owners.

Tokenomics: Tokenomics, a portmanteau of “token” and “economics,” refers to the underlying attributes of a cryptocurrency token that incentivize users to adopt the token’s project ecosystem. Among cryptocurrency investors, the term is commonly referred to in terms of how the token is utilized within the project ecosystem, or how the token will follow a monetary policy as the project develops. Therefore, the term tokenomics encapsulates a variety of processes and concepts, some of which are hard-coded into a blockchain’s protocol, and others which are more speculative in nature.

Total Supply: The complete number of tokens that are created by a blockchain project during the project’s inception. This includes the amount allocated to the foundation, team, and advisors. Projects tend to have a different vesting period for each allocation, and often generate a certain percentage of the total supply of all tokens for a specific vesting period. Total supply contrasts with circulating supply, which is the number of tokens available for potential investors to purchase at any given time. While the total supply generally remains static, the circulating supply tends to regularly change, depending on the token release schedule of the project.

Trading Bot: A trading bot is an application that executes trades automatically within pre-configured parameters and environments. Trading bots are widely used by quantitative traders, market speculators, and other financial market participants. The specific parameters each trading bot is set to can be configured in accordance with its operator’s personal trading strategy and proclivities.

Transaction Fee: Transaction fees are the fees charged to execute a transaction on a blockchain, and are typically charged to the sender. Transaction fees are required to pay for the computational power a network must exert to broadcast and send a transaction. Transaction fees, which can be paid out through various mechanisms to entities that furnish a blockchain network’s transactional capacity, are a key aspect of incentive models for most networks, including Bitcoin and the current iteration of Ethereum (1.0), upon which the fee is called “gas.” Transaction fees are charged every time a person participating in the network sends a cryptocurrency or specific type of data from one recipient to another. Transaction fees vary with each blockchain and often fluctuate according to the total transaction volume currently taking place on a network.

Transaction ID (TXID): A transaction ID, or transaction hash, is an immutable record of a digital transaction that’s been recorded onto a blockchain ledger. Users are able to look up any past transactions using its corresponding transaction ID, typically with the help of a blockchain explorer. In some instances, a cryptocurrency recipient may request the transaction ID from the alleged sender in order to verify the transaction’s origination point.

Transactions Per Hour (TPH): Transactions per hour (TPH) is a metric that refers to the number of data transactions that a computer network can process in an hour. TPH, along with transactions per minute (TPM) and transactions per second (TPS), is sometimes used to determine a blockchain network’s overall network speed and scalability by measuring how quickly a specific platform can process data such as cryptocurrency transactions and smart contract execution. Highly scalable networks with high transaction speeds are pivotal to the widespread adoption of blockchain technology.

Transactions Per Minute (TPM): Transactions per minute (TPM) is a metric that refers to the number of data transactions that a computer network can process in a minute. TPM, along with transactions per second (TPS), is sometimes used to determine a blockchain network’s overall speed and scalability, by measuring how quickly a specific platform can process data such as cryptocurrency transactions and smart contract execution. Highly scalable networks with fast transaction speeds are pivotal to the widespread adoption of blockchain technology.

Transactions Per Second (TPS): Transactions per second (TPS) refers to the number of data transactions that a computer network can exact within a second. The TPS measurement used for sending data on a blockchain network is often an indicator of the protocol’s overall network speed and scalability, and measures how quickly a specific platform can send data like cryptocurrency transactions and the execution of smart contract functions. Highly scalable networks with high transaction speeds are a requirement for the widespread adoption of blockchain technology.

Transaction (TX): In a blockchain context, a transaction (TX) generally refers to the sending and receiving of different types of data between users on a blockchain network. Depending on their origin, transactions can be sent with varying speeds and levels of security and privacy. The most common type of transaction simply allows users to exchange network-specific tokens between each other. For example, Bob sends Linda four ether (ETH) using the Ethereum network, which she promptly receives a few minutes later. In exchange, Linda then sends Bob an equivalent value in bitcoin (BTC) via the Bitcoin network.

TRC-20 Token: TRC-20 is a smart contract standard for creating tokens using the TRON Virtual Machine. TRC-20 tokens are fully compatible with Ethereum’s ERC-20 standard.

Trend: A trend refers to the overall direction of a financial market or an asset’s price. Trends are determined in large part by using technical charting analysis and trendlines that highlight specific price action that make up technical support and resistance levels. An uptrend occurs when the price makes higher swing highs, while a downtrend is characterized by price making lower swing lows. Trends may occur in crypto, stocks, bonds, derivatives, and any other type of market, even when measuring different types of data, such as the overall economic outlook for a specific geographical region during a certain time period.

Trojan: Within the context of cybersecurity, a Trojan describes any type of malware which disguises its true intent in order to gain unauthorized access to a target device or network. In most cases, trojans are designed to look like an innocuous program or are discretely attached to another piece of software a target is likely to install. Once a trojan has infiltrated its target it is free to execute its malicious code, which in most cases will damage, steal from, or otherwise disrupt the target device or network.

Trustless: When a system is trustless within a peer-to-peer (P2P) blockchain network, it means that all participants in the network do not need to know or rely upon verification from one another or a third party. This means that the system is run autonomously by the underlying technical architecture and consensus mechanism of the blockchain protocol itself. Transacting on a shared, trustless network is not beholden to a central organization to ensure trust, and is a key value proposition of blockchain technology. A number of innovations underlay the trustless nature of blockchain networks, including immutability, decentralization, transparency, censorship resistance, and neutrality.

U
Uniswap (UNI): Uniswap is a decentralized exchange (DEX) that uses liquidity pools (LPs) to make markets without the need for order books or central facilitators. Uniswap is underpinned by smart contracts that facilitate token swaps and provide the incentive structure for liquidity providers to participate in the system. As one of the first automated market makers (AMMs) to go live on the Ethereum network, Uniswap has made significant strides in proving that AMMs can be an effective tool for trading digital assets in a decentralized and permissionless way.
Unregulated: Something that isn’t controlled by a centralized authority or a governing intuition.

Unstoppable Domains: Unstoppable Domains is a service that allows users to send and receive tokens using a specific and easy to use self-selected domain name instead of an alpha-numeric wallet address. Unstoppable Domains is powered by the Ethereum and Zilliqa blockchains. Furthemore, Unstoppable Domains has agreements in place with multiple blockchain wallets and service providers, so its partner organizations can reduce reliance on wallet addresses and still use their favorite wallet to hold their cryptocurrencies.

USD Coin: USD Coin (USDC) is a digital stablecoin pegged to the US dollar. It operates on the Ethereum, Stellar, Algorand, and Solana blockchains. As of October 2021, USDC is the second-largest dollar stablecoin asset in the world by market capitalization, with a total valuation of 32 billion USD. USDC was initially created by the Centre consortium, which includes its two main founding members Circle and Coinbase. Each USDC token is backed by $1 held in reserve and regularly audited by Grant Thornton, a major accounting corporation. USDC was launched in September of 2018, and during March 2021 it was announced that Visa would facilitate the use of USDC for settlement on its payment network.

Utility Token: A utility token is a tokenized digital asset designed to grant its holder access to the products or services of a blockchain protocol. As a result, utility tokens are intended to be used within the blockchain’s network, rather than serve as an investment. However, given that most utility tokens fluctuate in value in accordance with its network’s perceived popularity and adoption, many traders and crypto enthusiasts nonetheless purchase certain utility tokens as speculative investments.

V
Validator: Within the context of blockchain technology, a validator is an entity responsible for verifying and approving transactions submitted by users and/or blockchain clients. Each blockchain protocol has its own parameters for what constitutes an acceptable validator and how these validators operate. Most decentralized blockchain networks rely on some form of validator node to process on-chain transactions in a permissionless and distributed manner.

Venture Capital (VC): Venture capital (VC) is a type of private equity financing that is provided by a venture capital firm to start-up businesses that are deemed to have high growth potential. VC is usually provided by high net-worth individuals (HNWIs), investment banks, or large enterprises that invest in a specific industry. Often VC firms specializing in blockchain only invest in startups that are designing blockchain-specific businesses. Venture capital funding also sometimes entails technical or managerial expertise. VC firms often provide funds to companies during their initial stages, such as seed round funding.

Verification Code: A verification code is a digitally generated code that is typically sent to a user’s email account, mobile device, or computer in order to ensure the validity of a login attempt. Verification codes are generally sent via email, text message, or obtained via two-factor authentication (2FA) services like Google Authenticator which can randomly generate a six-digit number every 30 seconds using a Time-based One-Time Password (TOTP) algorithm or a HMAC-based One-Time Password (HOTP) algorithm.

Vesting Period: Vesting period, also called token lockup period, refers to a period of time in which the tokens sold in the pre-sale of ICO stage are prevented from being sold for a specific period of time

Virus: A virus, specifically a computer virus, is a piece of malicious software that infiltrates a user’s computer without the user’s awareness. The virus can then execute a range of malicious operations on the host computer.

Vitalik Buterin: Vitalik Buterin is a Russian-Canadian programmer and writer most famously known for co-founding Ethereum. In 2013, Buterin published a whitepaper proposing Ethereum as a world computer capable of hosting a wide range of decentralized applications (dApps). In contrast to bitcoin (BTC) — which is more geared towards payments and serving as a store of value — Ethereum was intended to serve as a “Swiss-army knife protocol,” with more flexible and wide-ranging applications. Buterin went on to collaborate with several other co-founders to develop Ethereum, which was launched in 2015. To date, Buterin is regarded by many crypto enthusiasts as the de facto figurehead of Ethereum.

Volatility: Within a marketplace context, volatility refers to the degree of variation an asset’s trading prices undergo relative to its mean price over a certain period of time. The more volatile the price of an asset is, the greater the frequency and number of its price changes. Volatility is usually measured using standard deviations of logarithmic returns. Many investors track an asset’s volatility in order to identify and capitalize on trading opportunities based on perceived price trends.

Volume: Volume can show the direction and movement of the cryptocurrency as well as a prediction of future price and its demand.

 

W

WAGMI: WE’RE ALL ‘GONNA MAKE IT! (In terms of success and financial gain)

Wallet: A cryptocurrency wallet is a device or service that stores users’ public and private keys, allowing them to interact with various blockchains and to send and receive crypto assets. Wallets can be digital (software) or physical (hardware), hot (connected to the internet) or cold (disconnected from the internet), custodial (a trusted third party has control of a user’s private keys) or non-custodial (only the user controls their private keys).

Watchlist: A watchlist is a mechanism, usually web-based, that allows users to create a list of cryptocurrencies they wish to follow or track to better research projects they are considering investing in. Alternatively, watchlists can also be used collect and display other ready-to-hand tools related to blockchain. For example, by creating a watchlist on the tradingview.com stock charting platform, a user is able to store and quickly find their favorite technical cryptocurrency charts to assess their investment readiness in real-time.

Weak Hands: The term “weak hands” is used in the crypto space to refer to an investor who chooses to sell their investments when there is a substantial dip in the market, taking a loss. This is generally considered to be a poor investment strategy as long-term investors tend to believe that, in time, the value of their cryptocurrency portfolios will rise above and beyond their initial value despite substantial market corrections.

Web 1.0 (Web1): Web 1.0 was initially launched in the early 1990s when the internet first began to enjoy mainstream adoption. Web 1.0 was primarily a static, read-only infrastructure which generally lacked the more expanded functionalities of Web 2.0. Web 1.0’s infrastructure was made up of many companies that were mostly unable to maintain their monopoly of the internet because they were replaced by more interactive, capable systems that became more widespread in the early 2000s. Today, many see a new evolution of the internet dawning, as blockchain systems seek to foster a more sophisticated, democratic, user-centric version of the internet: Web 3.0.

Web 2.0 (Web2): The realization of Web 2.0 began in the early 2000’s. This second wave of internet innovation is characterized by its read-write and interactive design model. Platforms such as Amazon, Facebook, Airbnb, Alibaba, and Twitter led the charge in Web 2.0 development, offering dynamic and multi-functional application experiences across all our devices. However, many criticize Web 2.0 for being too centralized, and for paving a path toward excessive focus on profit, unreasonable advertising, mass surveillance, decreased privacy, and widespread data theft. In response, the Web 3.0 movement seeks to leverage blockchain technology to flip the Web 2.0 model on its head and link programs directly with each other.

Web 3.0 (Web3): The term Web 3.0 refers to a vision of the third generation of computing, which anticipates that technologies like blockchain will decentralize the internet and disintermediate Web 2.0 companies like Facebook, Amazon, LinkedIn, and Apple to enable the online exchange of value, and allow users to own their data. Web 3.0 is designed to benefit all participants using a peer-to-peer (P2P) model for websites, applications, and the internet as a whole. It will focus in many ways, on producing a machine-readable data-driven semantic web. Many believe blockchain and crypto are central to the realization of the open, public, censorship-resistant, borderless, free internet: Web 3.0.

Wei: Wei is the smallest denomination of ether (ETH). 1 ETH is equivalent to 1,000,000,000,000,000,000 wei (10^18).

Whale: A crypto whale is a high-net-worth individual (HNWI) — or organization — that holds a large amount of a specific cryptocurrency. While there is no exact monetary threshold, a whale’s asset holdings (when converted to USD) typically exceed $10,000,000. The number of coins (or tokens) necessary to be considered a whale varies by project. For example (in 2021 prices), an Ethereum whale might have over 10,000 ether (ETH) and a Bitcoin whale might have in excess of 1,000 bitcoins (BTC). 

When Lambo: A phrase referring to when cryptocurrency holders will become rich enough to afford the purchase of a Lamborghini.

When Moon: A phrase used to ask when the price of cryptocurrencies will explode.

White Label: White Labeling allows a company to customize an existing product framework in order to rebrand and resell this product as their own.

White List: Whitelist has multiple meanings in a blockchain context. First, it may refer to a list compiled by a blockchain start-up to assess the legitimacy of potential investors — using identity verification and intended investment amounts — that want to participate in an upcoming funding round. Second, it may refer to when cryptocurrency exchanges or wallets ask a user to verify the authenticity of a withdrawal address by “whitelisting” the address. This is done to prevent the user from becoming a victim of fraudulent withdrawals from their wallet or exchange account by malicious actors.

Whitepaper: A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed.

 

X

XRP: XRP is the native coin of the Ripple Ledger Network. It is designed to be a medium of exchange and value transfer, and is intended to be used as a low cost bridge between fiat currencies for a broad range of global transactions.

 

Y

Yearn.Finance: Yearn.Finance is a decentralized community focused on creating a suite of automated, decentralized finance (DeFi) products on Ethereum. Referring to themselves as a ‘collective of contributors,’ the Yearn community is an experiment in decentralization, crowd-sourced investing, and product development.

Year to Date (YTD): Year to Date (YTD) refers to a specific time period which spans from the first day of the current calendar year, or fiscal year, up to the current date. YTD data is critical for analyzing financial and business trends over time or to compare performance data among investments within the same or different industries. The term is usually used within the traditional investment industry but can be also used as it relates to blockchain and crypto investing to keep track of the performance of assets.

Yield Curve: A yield curve is a method for plotting data on a graph to measure yields on different investments over various time periods. Traditionally used to plot yields for financial instruments like bonds, yield curves are also useful for yield farming in crypto. Yield curves show the relationship between the interest rates (or borrowing cost) and the term (or time to maturity) of an asset or group of assets. There are three main types of yield curves including inverted, normal, and flat. Normal or upward sloping curves signify economic growth, while inverted or downward sloping curves signify economic decline or recession.

 

Z

Zerion: Zerion is a portfolio management interface for decentralized finance (DeFi) investors. Offering both a web and mobile app, Zerion allows investors to track their DeFi assets in one place, even if they are spread across multiple wallets. Zerion also enables users to interact with DeFi protocols directly from its platform, making it possible to purchase and exchange tokens, provide liquidity to automated market maker (AMM) pools, and borrow and lend assets without leaving the app.

Zero Knowledge Proof: Proving certain information or data is true without revealing it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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