Let’s understand the meaning behind the crypto jargons

A

All-time high: The highest ever price achieved by a digital asset

All-time low: The lowest ever price achieved by a digital asset

Addresses: The unique locations of cryptocurrency coins on the blockchain.

Algorithm: Mathematical instructions coded into computer software for producing the required outcome.

Airdrop: A marketing campaign referring to the expedited distribution of a digital asset through the population.

Anti-money Laundering: Set of international laws for preventing criminals laundering money via crypto to cash.

Arbitrage: Multiple exchanges trading in the same cryptocurrency at a particular time. It is an act of buying digital assets from one exchange and selling it to another in order to make a profit.

Atomic Swap: A method to allow people to exchange one cryptocurrency for another without buying or selling the same.

All or None Order: An order which should be filed either entirely or not at all in order to prevent the partial filling of the orders.

Allocation: Allotment of coins that can be purchased or earned by any investor or group of investors.

51% Attack: When a single individual or a single group of individuals run more than half of the computer power on the network, it is called a 51% attack.

Altcoins: All the cryptocurrencies except Bitcoin are called altcoins.

Application Specific Integrated Circuit: Represents the piece of computer hardware designed to mine the digital asset and is built to solve hashing problems.

Asset management: A method for helping individuals to manage their assets.

Auction: An event where assets undergo a bidding process led by an auctioneer.

Attack surface: A set of methods by which an attacker can extract the data from the system. It is an indicator of the security of the system. A system with a larger attack surface is more vulnerable to attacks.

Angel Investing: A process where wealthy investors seek opportunities for providing funding to start-ups.

B

Bearish: When the price of a digital asset starts to have negative movement.

Bitcoin: The first-ever cryptocurrency created by Satoshi Nakamoto in 2008 and is intended to be a P2P e-cash system.

Beartrap: A trick played by the traders for price manipulation of a digital asset. The group of traders sell their assets at a similar time, bluffing the market about the price drop and due to that, other traders also start to sell their digital assets, which further lowers the price. The investors who set this trap then buy back their cryptocurrencies at a lower price, making a profit meanwhile.

Blockchain: The digital ledger of all the transactions ever made in a particular crypto, comprising individual blocks chained via a cryptographic signature.

Bullish: When the price of a digital asset starts to have a positive movement.

Block: Blocks comprise the blockchain where each block contains the database of all crypto transactions made till it becomes full. It is a permanent record.

Block reward: Incentive for those miners who calculate the hash in a block successfully.

Block height: Height means the number of blocks connected to each other in a blockchain. For instance, the first block corresponds to height 0 and is also known as Genesis Block.

Block explorer: A tool to explore the blockchain of a digital asset where one can watch live all the transactions on the blockchain.

Burned: When particular crypto becomes un-spendable, it is called burned.

Buy wall: When particular crypto reaches a specific value, and a large limit order is placed to buy it, it is called buy wall. It is to prevent the crypto from falling below the value.

Breakout: When the price of a cryptocurrency goes out of the defined pattern by breaking the resistance area.

Breakeven multiple: The multiple of the current market price required to help reach the particular cryptocurrency to its previous all-time high.

C

Central Ledger: When one entity controls all the records of finance.

CAP: It is the shorthand for market capitalization.

Circulating Supply: Total number of coins of a digital asset in the public’s tradable space.

Cipher: The algorithm which decrypts and encrypts the information.

Confirmed: A confirmed transaction means that the network has approved it.

Cold storage: Storing the private keys on the physical document is called cold storage of paper wallets.

Cryptocurrency: A form of money existing as the encrypted digital information and operates independently of any financial institution.

Consortium blockchain: A blockchain owned and operated privately but is publically transparent.

Chain linking: The process occurring when you transfer one crypto to other, and it needs the transaction to be lodged in two different blockchains to achieve the goal.

Cryptography: A process to encrypt and decrypt the information.

Cryptographic hash function: the process is happening on the node, involving the conversion of an input to an encrypted alphanumeric string registering a place on the blockchain.

Consensus process: The process refers to nodes that maintain the blockchain ledger to reach a consensus during a transaction.

D

DApp: Decentralized application is a computer program utilizing the blockchain for storing the data. It runs autonomously and is not operated by a single entity.

Decentralized Autonomous organization: The organizations are run by a computer program instead of the direct human input, and its control is granted to everybody.

Deflation: Bringing down the prices of a particular cryptocurrency due to its decreased demand.

Decryption: To turn the encrypted text back to plain text.

Difficulty: Difficulty in crypto space refers to the cost of mining at a particular time.

Depth chart: The graph plotted between bids (requests to buy) and asks (requests to sell) on a chart.

Digital currency: Another term for cryptocurrency.

Digital signature: Generally appearing as a code and used to confirm the authenticity of the document.

Deterministic wallet: the wallet created by producing multiple keys by a seed.

Digital commodity: Another term for cryptocurrency or digital currency.

Double spend: When a person tries to send the digital asset to two separate wallets at a particular time, it is called double-spend.

Dust transaction: The minuscule small transactions made by people deliberately slow down the network.

DYOR: A shorthand for Do Your Own Research.

Distributed ledger: A ledger stored in various locations to help to access any entry by multiple parties.

Dump: Selling of all the cryptocurrency.

Dumping: The process when a large number of people sell at once decreases the price of the particular cryptocurrency.

E

Ethereum: One of the top cryptocurrencies that allow developers to create decentralized applications and write smart contracts.

Encryption: The process to convert plain text into unintelligible text.

Escrow: The funds which are held by an intermediary during a transaction.

Ethereum Virtual Machine: A virtual machine used by all nodes on the network during the blockchain confirmations, allowing the nodes to execute the EVM byte Code.

Exchange: The platform to exchange cryptocurrencies with each other or with fiat currencies.

ERC: Ethereum request for Comments is a summation of the improvements proposed for the Ethereum system.

ERC-20: The way with which each Ethereum token behaves to make the transaction predictable. Many other cryptocurrencies also use ERC-2- standards.

F

Fundamental analysis: A method to attach the value to a token by researching the underlying motives of the market and the creators.

Futures contracts: The pre-approved contract between two entities for fulfilling a transaction when crypto’s value hit a specific price.

Fiat: Money recognized by the government as a legal tender. For instance, US Dollar.

Faucet: A website offering you the free cryptocurrency to get connected to them is called a faucet, and mostly these kinds of websites are scams.

FOMO: Shorthand for Fear Of Missing Out.

Full node: The nodes which fully enforce the rules by downloading the entire history of the blockchain.

Fork: A new version of blockchain created from the previous blockchain, resulting in two versions running side by side.

FUD: Shorthand for Fear, Uncertainty and Doubt.

Frictionless: The system is called frictionless when there is no restrains and transaction cost on trading.

G

Gas: A measurement of an operation in Ethereum Network related to the computation power required.

Gas limit: A user sets the gas limit while making a transaction that represents the highest amount paid for the transaction in the form of a fee.

Gwei: The unit used to define the cost of gas.

Gas price: Amount which you can willingly pay for a transaction in the Ethereum Network.

Group mining: Another term for a mining pool.

Genesis book: The first block of the blockchain.

H

Hash: Shorthand is used to represent a cryptographic hash function.

Hash rate: It is the measurement of the performance used to represent the number of hashes per second a computer can produce.

Hashing power: Represents the computer’s hash rate in the GH/s, TH/s, PH/s or kH/s.

Hardware wallet: Represents a physical wallet used to store the digital asset in encrypted form.

Halving: The process in which the amount of BTC and few other cryptos are halved at the completion of a block to maintain the hard cap.

Hard fork: A fork in the blockchain responsible for forming a new blockchain to upgrade the network to the new protocol.

Hard Cap: The upper or maximum limit to which a cryptocurrency’s circulating supply can be maintained.

HODL: Hold on for dear life.

I

Initial Coin Offering: The initial batch of coins issued to raise funds by the creator of the digital asset is called initial coin offering or ICO.

J

JOMO: Joy of Missing Out

K

KYC: Shorthand for Know your Customer, referring to the obligation of the financial institutions for verifying the customer’s identity in line with laws.

L

Ledger: Record the financial transactions that cannot be changed but can be appended with the new transactions.

Lock time: Refers to the delaying transaction request when the transaction can be processed to a specific time on blockchain.

Liquidity: liquidity defined how easily can a cryptocurrency be sold or bought without impacting its overall market price.

Leverage: Loan offered by the broker on the exchange.

Lightning Network: A P2P system for the micropayments of digital assets focused on instant payments and low latency.

M

Mining: The process to verify the transactions on a blockchain that involves solving complex computational problems.

Margin trading: A strategy where experienced traders risk their existing cryptocurrencies to magnify the trade’s intensity. They can buy more than they afford by margin trading.

Margin bear position: The position taken by the investor when he is going short.

Margin bull position: The position taken by the investor when he is going long.

Mining pool: A mining pool refers to the combined computing power of a considerable number of miners to start a new block in the blockchain.

Market capitalization: refers to the multiplication of the total number of crypto supplies by their price.

Mining contract: A kind of investment where a person rents out the hashing power of his mining hardware for a specific period.

Moon: Used to describe the upward price movements.

Money services business: Term used for representing the entity that converts money.

Multi-signature: When more than one user provides their unique code in order to go through a transaction.

N

Network: Network represents all the nodes committed to helping the operations of the blockchain at a particular time.

Node: A computer connected to a blockchain.

O

Oracles: Refers to the smart contract stored on the blockchain stuck within the network. Which only can be reached by the external world.

Oversold: When a digital asset has spent sufficient time being sold without any upward movement, then the crypto is considered to be oversold.

Overbought: When a massive number of purchases have been made on a digital asset and, as a result, its price increases for a specific time.

P

P2P: Shorthand for Peer-to-Peer.

Peer-to-Peer: A connection where two or more two networks connect to each other without involving any third party.

Private key: A string consisting of letters and numbers used for accessing the wallet.

Paper wallet: Another name for cold storage.

Proof of stake: A system used to encourage the miners for sticking to a particular blockchain instead of converting their rewards to some other cryptos. PoW caps the reward of the miners to provide the network with their computational power.

Protocols: Refers to the rules defining the process of data exchange over the network.

Public key: The unique wallet address used to receive the cryptocurrencies.

Public blockchain: A blockchain capable of being accessed by anyone using a Node on a computer.

Pump: Refers to the upward movement of cryptos’ price driven by whales.

R

Ring signature: an encryption process that helps to retain the user’s anonymity.

Relative strength index: Technical analysis for determining the momentum of price change with time.

S

Satoshi Nakamoto: The creator of Bitcoin.

Seed: Refers to the origin point to create the wallet Id.

Scrypt: Refers to the algorithm used to encrypt the key such that it takes a severe amount of RAM to hash.

Short: This can also be called Short selling, where the trader sells the asset they don’t have, hoping that its price will decrease further.

Smart contracts: The contract is written in computer code instead of the traditional legal language, termed a smart contract.

Software wallet: Refers to the common wallet where the private keys can be stored within the software files.

Sell wall: when the limit order used to sell the digital currency reaches the specific value.

T

Transaction: Refers to the value of digital assets when moved from one to another blockchain network.

Transaction fee: The small fees given to those miners who are involved in the approval of a transaction on the blockchain.

Token: Token is the crypt coin that can be bought or sold.

Testnet: When the creator of the cryptocurrency is testing a new version of the blockchain, it’s called testnet.

Tokenless Ledger: A distributed ledger which does not require a currency for its operation.

Timestamp: refers to the time when the transaction was encrypted as the proof for compiling the data.

U

Unconfirmed: After a transaction is proposed, it remains unconfirmed until the network examines the blockchain to ensure no pending transaction with a similar coin.

Unspent transaction output: Represents the number of digital assets sent to an entity. These are termed unspent because the data is stored on the blockchain.

Unit of account: refers to the property of the money, which allows the comparison between the value of two different things.

V

Volatility: It represents the fluctuation in the prices of digital assets.

Volume: Used to measure the individual units of a cryptocurrency in the market at a specific time.

Verification code: Refers to the code sent on another device to ensure someone’s identity.

W

Whitepaper: Refers to the detailed explanation of a digital asset, including its purpose and roadmap to success.

Whale: Term used for describing the investors who can manipulate the market by investing.

Wallet: It is the unique code representing the address on the blockchain.

Z

Zero confirmation transaction: Used to describe the unconfirmed transaction.

Zero-Knowledge proofs: Refers to the proofs used to verify the transactions without revealing any information about the transactions.

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Let’s visualize the way finance looks in 2050. Read our crypto stories at https://blockonomist.com/

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