Glossary

Aa

Altcoin: Any crypo that is not Bitcoin. These are other coins that were created after bitcoin with the aim of offering better features.

Airdrop: The distribution of a cryptocurrency or token to a community, with the aim of increasing the popularity of the coin or token. It is mainly used as a marketing scheme and usually requires users to complete a task like downloading an app or referring friends. 

Arbitrage: Taking advantage of price differences of the same currency, security, or commodity in two or more markets. For example, crypto prices on African exchanges can be different from US exchanges. An arbitrage trader would buy in one market and sell in the other for a profit.

Atomic Swap: A direct exchange of one type of cryptocurrency for another on a different blockchain or off-chain, without centralized exchange as an intermediary. 




Bb

Bear: A person who expects the market to decline.

BIP (Bitcoin Improvement Proposals): A design document for introducing new features to Bitcoin.

Bitcoin: Bitcoin is the world's first peer to peer decentralized digital currency created in 2009 by an unknown person or group of persons known as Satoshi Nakamoto, it's also called a cryptocurrency for its use of cryptography to secure the network and make transactions pseudonymous, with bitcoin you don’t need to go through a bank, clearinghouse or third party of any kind use money.

Bitcoin Cash: Bitcoin Cash is a cryptocurrency forked from Bitcoin. Bitcoin Cash offers a larger block size, which allows miners to process more transactions per block.

Bitcoin ATM: Similar to the idea of a tradition Atm, but you can withdraw Bitcoin. Usually, Bitcoin ATMs have high fees for their convenience.

Bits: A subunit of one Bitcoin. 1,000,000 bits make up one Bitcoin.

Block: This is a single digital record created within a blockchain. Each block is a continuation of the previous block, carrying all the transactions earlier recorded, and when linked together these become a chain of blocks filled with information, blockchain.

Blockchain: This is a string of ongoing digital records created within a distributed network. Each block is a continuation of the previous block, carrying all the transactions earlier recorded, and when linked together these become a chain of blocks filled with information, blockchain.

Block explorer: An online tool used to view transactions that have taken place on the blockchain. It provides detailed information on blocks, addresses, and transactions.

Block Reward: When a bitcoin miner finds a block he receives newly minted bitcoins known as the block reward. The reward is halved every four years and is responsible for controlling bitcoin’s supply.

Bubble: A bubble is when the price of an asset, such as housing, stocks, ​gold, or cryptocurrencies become over-inflated. Prices rise quickly over a short period. It's a bubble when investors bid up the price beyond any real sustainable value.

Bug bounty: A reward for finding an issue or vulnerability in a program's code. Crypto companies offer these rewards to help find exploits in their protocols, exchanges, and wallets.

Bull: A person who believes the market will increase. This person would be “bullish” about the market.

Burn: The process of making a coin or token unusable, essentially taking it out of circulation.




Cc

Candlesticks: A graph type that shows the change in price over time. Each candle shows the opening price, closing price, high, and low. This graph is also called as “candles”.

Cash: A physical form of a currency, such as banknotes or coins.

Centralized: An organization that only has a small number of nodes in one place. This organization is likely to hold a majority of its coin or token.

Chain split: Another term for fork.

Cipher: An algorithm that encrypts and decrypts information.

Cold Storage: Cold storage is an offline wallet provided for storing cryptocurrencies. With cold storage, the digital wallet is stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to.

Confirmation: This is a process carried out by miners to verify transactions on a cryptocurrency’s network to certify that a transaction is valid. This prevents double spending & can take some minutes to be completed.

Cryptocurrency: A digital or virtual currency that uses cryptography to secure and verify financial transactions.

Cryptography: This is an encryption technique used to secure data in transmission, data in storage, and user authentication that allows only those for whom it is intended to read, interpret or process to access. This is what cryptocurrency is built with and gets its name from.

Custodial: The storage of private keys to an exchange or wallet are being held by a third-party service provider.




Dd

Dash: Dash (formerly called Darkcoin) is a fast payment cryptocurrency that was built using a copy of the Bitcoin source code in 2014, however, some significant improvements have been made to it that makes it’s major holders vote on network governance & use.

Decentralized: This is a form of organized system that has no central point of control or authority, the whole system exists and functions from individual parts that follow a set of rules mutually agreed upon.

Decentralized Applications(dApps): An application that runs on a decentralized network, this negates a single point of failure.

Decentralized Exchange(DEX): A peer-to-peer crypto exchange in which no intermediary is involved.

Decryption: The process of transforming encoded data back to a readable form.

Difficulty: limiter that cryptocurrencies use to keep the average times between blocks constant as the hashing power of the network changes.

Digital Currency: Is digital or electronic money, that is exclusively online. Digital currency is not bound by borders and allows for instant transactions.

Distributed Ledger: Digital data which is stored in nodes that are spread out across a network.

Dump: To sell off your cryptocurrency or when the marketing drops.

Dominance: Is a measure of Bitcoin’s marketing capitalization compared to the rest of the combined market capitalization of all other cryptos.




Ee

Ethereum: Ethereum is an open-source, global, decentralized platform for money and new kinds of applications. Its cryptocurrency is used by applications built on Ethereum as platform fees to keep the applications running.

ERC-20: A token standard for the Ethereum blockchain, used for implementing tokens. ERC-20 has rules defining interactions between tokens, transfer between address and data access.

Exchange: This is also known as trading exchange or trading platform where buyers & sellers of a particular commodity, asset or currency meet to transact business. For cryptocurrencies, this is where people buy or sell crypto coins for other crypto coins or fiat.




Ff

Fiat: This is a currency belonging to a particular nation-state or group of nation-states that has no intrinsic value but is established as money by the government to be used for the payment of goods & services. Its acceptance by the public gives it value.

Fork: This is when there is a split in a blockchain into two possible paths due to a protocol change.

FOMO: Stands for "fear of missing out".

Full Node: A node that downloads a blockchain full history and checks blocks against Bitcoin’s consensus rules.




Gg

Gas: A unit used to measure the computational effort of processing a transaction or smart contract in the Ethereum network. It “fuels” the Ethereum network.

Genesis Block: The first block of data that is processed and validated from a new blockchain, also called block 0 or block 1.




Hh

Hard Fork: A cryptocurrency splits in two, creating a new blockchain that follows a different protocol. Bitcoin Cash is a hard fork of Bitcoin.

Hash: An algorithm that maps data of arbitrary size to a bit string of a fixed size and is a one-way function. It can't be read without a cipher.

Hot Storage: Storing private keys online, which offer quick access to cryptocurrencies. This also comes with a higher risk. 




Ii

Inflation: A decrease in the buying power of money and an increase in prices. 

Initial Coin Offering (ICO): Sell tokens with the intention of crowdfunding a project.




Jj

JOMO: Stands for ‘joy of missing out’.




Kk

KYC: “Know your customer”, the obligation of the financial company to verify the identity of the customer.




Ll

Ledger: This is a (digital) record book of all transactions on a cryptocurrency network, also known as the blockchain. The records are updated in real-time & show a history of all transactions from the day of inception to present making verification of data easy.

Lighting Network: Layer two payment protocols on top of the blockchain. Its goal is to solve Bitcoin scalability issues by enabling faster, scalable transactions between and across nodes.

Liquidity: An indication of how easily cryptocurrency can be bought and sold.




Mm

Mainnet: A blockchain that is running on its own technology and protocol.

Marlin Protocol: High-performance network infrastructure for modern decentralized networks.

Microtransaction: tiny payments that are made in exchange for digital products or services. An example would be purchasing something in a video game, which could be in-game currency or upgrades.

Mining: Using gpu power to solve PoW equations that add blocks to the blockchain and verify transactions.

Miner Fee: Also called transaction fees, users of a cryptocurrency who send out coins on the cryptocurrency blockchain/network pay small amounts of their coins to miners whose work is to verify the authenticity of transactions on the network and are paid according to the size of value being sent.

Mining Reward (Block Reward): The reward received from contributing your computation power to process transactions.

Mining Pool: Grouping together computational power to gain an advantage in finding the next block on the blockchain.

Mining Rig: A computer used for mining. It is usually composed use multiple GPUs to get the highest hash rate.

Multi Signature: More than one key is required to authorize a transaction, that way if a single key is compromised one or more keys are still required to approve the transaction.




Nn

Network: All active nodes of a blockchain at any time.

Non-custodial: The users directly hold their private keys to their wallets.




Oo

Offline Storage: Storing cryptocurrency on a device that is not connected to the internet.

Open Source: The open-source model is a decentralized software development style in which the source code is available to the general public for use, audit & modification from its original design free of charge.

Over the Counter (OTC): Over the counter trading is an activity done directly between two parties without using a regular exchange.




Pp

Paper wallet: A paper wallet is an offline mechanism for storing cryptocurrency. The process involves printing the private keys and Bitcoin addresses onto paper. Whatever can happen to cash can happen to a paper wallet so safekeeping is advised.

Peer to Peer(P2P): An interaction between decentralized parties in a distributed network.

Portfolio: A collection of cryptocurrencies held by an individual or a fund.

Private Key: A code generated from the encryption process, which can be paired with the public key to decrypt information.

Priority: The speed at which your transaction will be included in a block. The higher the priority the faster the transfer.

Proof of State(PoS): A blockchain consensus mechanism in which the creator of the next block is chosen by various variables.

Proof of Work(PoW): A blockchain consensus mechanism that involves solving computational intensive equations to validate transactions and create new blocks.

Protocol: A rule set that defines interactions on a network.

Public Address: A cryptographic hash of a public key, this address allows you to receive cryptocurrency.

Public Key: A cryptographic system that uses pairs of keys: the public key which can be circulated widely and private key which is only known by the owner.

Pump and Dump (P&D) Scheme: A fraudulent scheme that involves the artificial inflation of the price of a cryptocurrency, which the intention of selling the once low priced currency at a higher amount.




Qq

QR Code: A label that shows information encoded into a graphical black and white patter. Ofter used to share wallet address.




Rr

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




Ss

Satoshi: A satoshi is the smallest unit of a bitcoin. It is equal to one hundred millionth of a bitcoin, or .00000001 BTC. A satoshi are to Bitcoin what cents are to the dollar.

Smart Contract: A software protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and supposedly irreversible.

Shitcoin: The term crypto traders give to some coins which they perceive to be of little or no value.

Stablecoin: A stablecoin is a type of cryptocurrency that has a fixed price with the intention of offering stability to those who want little to no volatility while dealing with cryptocurrencies. They are often backed by a reserve asset like the USD or gold.

Satoshi Nakamoto: An individual or group of individuals that are responsible for creating Bitcoin. The identity of Satoshi Nakamoto has never been confirmed.

Scam: A cryptocurrency that is known to be deceptive or fraudulent.

Seed: A list of random words which store all the information needed to recover a Bitcoin wallet.

Shilling: Promoting a cryptocurrency.




Tt

Transaction ID (TXID): Every cryptocurrency transaction comes with a transaction ID the same way every bank transaction comes with a transaction ID. This ID is a unique string of letters & numbers that makes a transaction trackable on the blockchain of the cryptocurrency.

Testnet: The testnet is an alternative blockchain, to be used for testing software upgrades & improvement protocols to work out errors & bugs before being moved to the main blockchain.

Timestamp: A timestamp is a sequence of characters or encoded information identifying when a certain event occurred, usually giving date and time of day. Entries in decentralized ledgers are timestamped.

Token: Created it for its utility of providing access to a larger cryptoconomic system. They are made so the software can be developed around them.

Tokenize: The process of giving digital value to real assets for the purpose of offering ownership.

Transaction Fee: Also called miners’ fees, users of a cryptocurrency who send out coins on the cryptocurrency blockchain/network pay small amounts of their coins to miners whose work is to verify the authenticity of transactions on the network and are paid according to the size of value being sent.

Trustless: This is a system of distributing trust among different actors in a system via an economic game that incentivizes participants in the system to cooperate with the rules defined by the protocol. The Bitcoin blockchain is an example.




Uu

Unconfirmed: This is when a transaction hasn’t been verified on the blockchain by miners.

Unpermissioned Ledger: A digital record-keeping software that anyone can download, run and add entries into it according to the preset rules to achieve consensus without license or restriction from a central source.




Vv

Vaporware: A product that is announced to the public, but is never actually created.

Volatility: The degree of variation in trading prices over a period of time, measured by using the standard deviation of returns.

Volume: The amount of cryptocurrency that has been traded over a period of time, the supply and demand play a role in determining this.




Ww

Wei: The smallest denomination of Ethereum. 1 Eth = 1,000,000,000,000,000,000 Wei

Whale: An investor who has a large amount of crypto, enough to manipulate the market.

Whitepaper: A document prepared for investors that outlines the vision, cryptocurrency use, cryptoeconomic design, technical information, and a roadmap.




Xx

Xylyl: A univalent radical.




Yy

YTD: Year to Date.




Zz

Zero Confirmation Transaction: Another name for an unconfirmed transaction.