A glossary of crypto and blockchain terminology
A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities. A product which has a piece of art embedded on the front, and private keys to an address holding a digital currency or other token. These typically hold less value than traditional cryptocurrencies since they don’t have a price set by markets, but are considered collectables that can be bought as gifts for others.
Double-Spending – the risk that a digital currency can be spent twice. This is possible because a digital token consists of a digital file that can be duplicated or falsified. It leads to inflation by creating a new amount of fraudulent currency that did not previously exist. Read more about where to sell monero here. The volatility ratio is a technical metric used to identify price trends and breakouts.
11.2.4 transfer any Interest in Supported Cryptocurrency from your Cryptocurrency Account to any other account (e.g. a cryptocurrency wallet you may hold with another provider). You may not use your Skrill USA Account or Cryptocurrency Account to buy Interests via any cryptocurrency exchange that we do not partner with. Miner fee – small amounts of crypto given to the miners as a reward for the services they are providing. The miner fee depends on the current networking congestion, the size of the bitcoin transaction and the priority of the transaction. The proof-of-history mechanism acts as a mechanism of clock and timestamp, which are supposed to ensure the originality of transactions. The PoH makes it possible to add new blocks to the blockchain before they have to be confirmed by the nodes. To increase the efficiency of a blockchain, layer 2 blockchains have been developed, which are based on a layer 1 blockchain. For example, transactions can be moved from layer 1 to the layer 2 blockchain to validate them before they are fed back into layer 1.
A 64 character alphanumeric address which allows view only access of unspent funds and used to receive funds. The equivalent of bank account details, the address to which crypto can be sent, and the balance seen by anyone. A blockchain consensus mechanism where the ability to mine or validate blocks is in proportion to funds staked. Used in reference to a public blockchain where no permission is required to participate, for example by downloading the relevant network software and running a node.
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The name given to a significant volume of Asks at a specific price that creates the impression of a wall on the Depth Chart for a given cryptocurrency. A mining strategy where a miner doesn’t broadcast newly mined blocks, privately growing a rival chain in an attempt to eventually hijack the public chain with his https://www.beaxy.com/buy-sell/xmr-btc/ longer private chain and claim block rewards. A soft fork of the Bitcoin protocol intended to increase block space and transaction speed by splitting transactions and separating signature detail. The term used to describe applications built on top of a blockchain, e.g the Lightning Network built on Bitcoin.
A special type of digital signature scheme where there can be multiple signers for a single digital signature. A multi-signature or “multi-sig” transaction is only valid if it is signed by a set threshold of participants, just like some legal documents require a co-signer. If a private key is the door to a house, a view key is a window into a specific room. Fungibility means that each individual unit is interchangeable, as in how we consider two separate dollar bills to be interchangeable. This is powerful because it creates the “network effects” that enable economies to grow to large scale. Just like LEGO-like blocks can be combined in any number of ways to build something new, composability enables the various components of a system to be mixed and matched to create novel systems and applications. In crypto, ASICs optimized to compute hash functions now dominate proof-of-work mining. This activity has become increasingly concentrated among a handful of large, specialized firms.
This fee can occur every time you make a deposit or will be calculated as a percentage of the value of the funds transferred to your account. If you are trading a cryptocurrency the fee will depend on the coin you are transferring, be it bitcoin or an altcoin. It is a way of conducting finance on the blockchain and engaging with an ecosystem of financial applications. DeFi differs from traditional finance in that it eliminates centralized third parties and intermediaries, and instead operates a more transparent and direct financial system. DeFi growth is typically measured by analyzing the amount of ETH locked in smart contracts. Cold wallet solutions store the private keys to assets offline, invalidating the risk of exchange hacks.
A fixed piece of code in the application layer of a blockchain that self-executes an agreement between parties when certain events happen, such as the initial creation of a token or its transfer to a new owner. A record of ownership on a blockchain of a unique or rare asset that cannot be transacted in a like-kind exchange. A digital currency issued and backed by a central bank that runs on a centrally permissioned blockchain as an alternative to cash. A cryptocurrency designed to minimise price volatility, usually by pegging its value or supply against a physical asset such as fiat currencies like the US dollar or metals like silver and gold. A technical indicator that measures market sentiment based on the prices of seven different assets. An event where a blockchain project distributes free tokens or coins to the community.
That doesn’t mean you can’t make money on them by selling it to someone else at a higher price than you paid. However, some drawbacks do make Bitcoin and other currencies virtually useless as a currency, a means of exchange. Cryptocurrency is a kind of digital currency that is intended to act as a medium of exchange. Cryptocurrency has become popular in the last decade, in particular, with Bitcoin becoming the most widely tracked alternative currency. Typically, cryptocurrency is electronic-only and does not have a physical form – that graphic at the top of the page is just an artist’s vision of digital currency. Web3 is the next iteration of the internet as imagined by blockchain enthusiasts. Web1 was read-only internet, from the internet’s invention until around 2005. Web2 refers to the advent of people being able to produce content and upload it onto the internet. Imagine owning your social media posts as NFTs, using a cryptocurrency like ether as a universal currency and having your wallet as a form of ID instead of a email-password combo.
🤓 Cryptocurrency glossary
Farmers give their assets to liquidity pools
Raising money for a purpose
Fear, uncertainty, doubt. Strong public concerns about the future of the market
— Eight Finance (@the8finance) July 20, 2022
You can send Crypto Assets to an external digital asset wallet that you own and control, or to an external digital asset wallet owned and controlled by another person, such as a friend or family member. In order to send Crypto Assets outside of PayPal, you will need to provide the wallet address where you want to send the Crypto Assets. Second, the amount delivered into your U.S. dollar Balance Account will be used to fund the purchase. If you sell Crypto Assets during the Checkout with Crypto process, but do not complete the purchase for any reason, the U.S. dollar proceeds of the sale will remain in your Balance Account. You will be able to see your backup payment method before you Checkout with Crypto. Cryptocurrencies can be relatively easily converted into regular currency such as dollars or euros. If you own the currency directly, you can trade it via an exchange into fiat currency or into another cryptocurrency.
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The plan outlining the long and short-term goals of a crypto project and how they will be achieved within a flexible timeline. A decentralised communication network between two parties often known as nodes without a central server/ intermediary. Is an interconnected entity of digital environments comprising social media, NFTs, and virtual currency, powered by virtual and augmented reality. It is a term used by people to declare their joy of not being involved with cryptocurrencies when prices are tanking or a project is revealed to be a scam. Allows individuals to invest in gaming initiatives at an early stage by purchasing the blockchain game’s token or NFTs. A method of launching a crypto project that requires people to contribute their skills and time to earn rewards in the new cryptocurrency. The maximum funding a team is willing to collect from investors during an ICO/IEO. It also denotes the absolute maximum supply of a particular cryptocurrency. The amount of computing power a computer or mining hardware uses to run and continuously solve the different cryptographic puzzles in proof-of-work cryptocurrencies. The native coin and payment method for operating the Ethereum blockchain.
— Eric Vanderburg (@evanderburg) July 20, 2022
The purchases occur at regular intervals, regardless of the asset’s price. As the price will likely vary each time a purchase is made, the investment is not as highly subject to volatility. The volume corresponds to the number of financial assets, e.g. exchange traded products, which are traded during a certain period. Taproot is the name of a voluntary upgrade to the Bitcoin code for nodes and miners. The upgrade was released in November 2021 and brings enhanced privacy, scalability, and smart contract capabilities to the Bitcoin network. A market price corresponds to the current price for which a security, e.g. an exchange traded product, can be purchased.
Transactions that are recorded on the blockchain and distributed among all nodes. Mooning is a term used in the crypto space to refer to a crypto asset that’s rising in value rapidly and sharply. This refers to a publicly-traded company that has a capitalisation worth $10 billion and more. In the crypto markets, it refers to the largest cryptocurrencies in the market. A fundraising technique that allows new DeFi projects to raise funds by selling tokens on a yield farming protocol. It is often attached to spreading negative or misleading information about a crypto asset.
It is recommended to trade on exchanges that have the proper licenses and security measures. Aave is a decentralized lending and borrowing platform on Ethereum. Aave users can take out loans by providing collateral in the form of crypto assets. Lenders who to Aave receive aTokens in return, which automatically pay interest to the holder with funds earned from platform trading fees. Aave has pioneered the technology of ‘flash loans,’ which allow for the uncollateralized lending of funds, so long as the principal is repaid within the same Ethereum transaction block. Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions.