Understanding Crypto Words A-D
Address—an alphanumeric identifier used as destination for transferring which is unique.
Accredited Investor—one who has over $1 million or an annual salary over $200K.
Airdrop—a special event where someone gives new cryptocurrency tokens to individuals already holding crypto.
Algorithm—solving mathematical problems whereby blockchain consensus algorithms verify transactions.
Alt Coin—all other coins or cryptocurrency that is NOT Bitcoin.
Angel Investor—one who contributes over $1 million to emerging projects.
Arbitrage—buying and selling the same coins on different exchanges at the same time to take advantage of the price differences.
ASIC (Miners)—Created and sold by Jihan Wu from China, the computer type machine was created to be more efficient for crypto mining than typical CPU’s and GPU’s.
ASIC (Resistant)— Coins that don’t require big bucks equipment; the mining done on this equipment is supposedly more fair and decentralized than coins that are not resistant.
Bank Run—bank patrons withdraw money at the same time due to belief that bank may not function, may run out of cash, or may collapse.
Backtest—the method of running a trading strategy on historical data to discover performance outcome.
Batch (Transaction)—a transaction combining many transactions into one transaction for smaller fees and improved efficiency.
Barter—giving an item and receiving another item (usually of the same value).
Bear (Bearish)—One who believes the market will decline or fall.
Big Blocker—one that thinks increasing Bitcoin’s block size would improve scalability. (Most known: Roger Ver).
Bit—1/1,000,000 or a bitcoin.
Bitcoin—First blockchain cryptocurrency or ASSET created in 2009.
Bitcoin Cash—after the first hard fork of Bitcoin, protocol allows Bitcoin to grow and scale by removing block size limit.
Bitcoiner—a person who believes Bitcoin is the future and is involved in its technology.
BitcoinJS—the latest version of the Bitcoin protocol using JavaScript programming.
Bitcoin—name given to a type of digital currency occurring on a computer ledger or block chain.
Bitcoin Ledger—a public accounting which tracks bitcoin transactions. Since it is public, this ledger promotes security, transparency and ownership.
Bitcoin Network—a ledger that keeps track of exchanges of bitcoin or pieces of bitcoin which are peer-to-peer.
Bitcoin Protocol—first blockchain network which allows users to store and transfer wealth.
Blockchain—a ledger that contains digital data for transactions which have taken place since the creation of that particular cryptocurrency.
Blockchain 2.0—cryptocurrency that facilitates programmable transactions instead of simply acting as methods to store and transfer value. Ethereum is known for this as Eth allows users to create and execute smart contracts and develop decentralized applications.
Blockchain Bloat—when data that is stored on the blockchain (and speed of transactions slows) reaches a large size because of increased number of the users and transactions.
Block Explorer—websites for cryptos which allow users to search transaction ID’s (addresses) to view its details.
Block Height—total number of blocks on a blockchain since the first block was mined.
Block (Reward)—reward or payment given to miner after he secures a proof-of-work blockchain.
Blocks—records of bitcoin exchanges within the blockchain. (Blocks get validated and then they close.)
Block Time—time it takes to mine a new block.
Block Size—the amount of data that is stored on one block of a given blockchain.
Block Lattice—a scaling solution where a user has his own blockchain; they reduce blockchain bloat by storing transaction date separately from a cryptocurrency’s main blockchain.
Bollinger Bands—a technical analysis tool used to determine high and low prices; composed of three lines where the middle band is the average and the upper and lower band show the deviations.
Bull (Bullish)—Optimism of the future of money, markets, and cryptocurrencies; and the person who has that outlook. (BTC trader who thinks Crypto will rise.)
Bull Market—where market prices of some if not most are all rising.
Bull Trap—When cryptocurrency makes a short rise and investors think it will keep going up but the price falls whereas it fools the bulls.
Burn—destroying coins or tokens, resulting in decreasing the total coin supply of a particular cryptocurrency.
Centralized—a group that controls something in a specific area; like the IMF controlling all money policies.
Central Ledger—a list of all transactions that have ever occurred on a platform and is irreversible.
Change Address—created to hold a balance that is remaining after users spend crypto.
Circulation—coins moving freely between individuals.
Circulating Supply—volume of coins held and spent at a given time; includes all types of cryptocurrencies and Bitcoin.
Cloud—a remote server(s) to manage and store data. Computing processes are also available.
Coin—a functional cryptocurrency that relies on its own technology.
Coin Control—has to do with the Bitcoin Core wallet; one can specify which coins to spend, and which change addresses the remaining balance is sent to.
Cold Storage—storing cryptocurrency and Bitcoin offline; not on the internet or active computer whatsoever.
Collateral—an asset such as real estate, cash, Bitcoin, etc., that a lender accepts to secure a loan.
Confirmations—consensus by miners that are verified after one sends payments on the blockchain. Before a recipient can accept a payment, he needs confirmation.
Consensus—an agreement among all parties using and mining cryptocurrency.
Crypto—short for Cryptocurrency.
Cryptocurrency—cryptography was used to create a digital currency called cryptocurrency such as Altcoins. Bitcoin, an asset, was also created with cryptography.
Cryptographic Hash Function—encoding inputs to create unique outputs (purpose is to create a digital fingerprint).
Cryptography—the study and creation of code.
Darksend—where anonymous transactions take place with Darkcoin cryptocurrency.
Days Destroyed—Bitcoin that is unspent or inactive; each day Bitcoin is unspent is another day added to its total number of days destroyed.
Decentralized—something that is distributed among users rather than a specific group or in a certain area.
Deepweb—the inner internet not available by ordinary means such as search engines.
Deflation—the decreasing supply of Bitcoin, which will drive the price higher.
Delegated Byzantine Fault Tolerance—always in consensus where professional nodes broadcast a version of the blockchain; 2/3rds or more nodes need to agree that the block will be written onto the blockchain.
Delegated Proof of Stake—(DpoS)—consensus where blockchain nodes vote on correct version of the blockchain.
Demurrage—a tax on cryptocurrency that encourages spending because they are constantly be destroyed.
Desktop Client—a user’s computer which runs a specific application.
Desktop Wallet—a piece of software where one stores their cryptocurrency on a personal computer.
Deterministic Wallet—software for storing cryptocurrencies. Claims of decreased risk of losing funds because of unlimited addresses created from a starting point or seed.
Dice—a guessing game using number generators for output allowing individuals to bet using cryptocurrency.
Difficulty—computing power is required to find the next block on the blockchain, and the difficulty is the measure of it as it increases over time on the blockchain.
Digital Asset—something of value that is not physical; audio file, logo, etc. which can be owned and or controlled.
Digital Identity—data set as to represent an entity on the internet.
Digital Signature—an encrypted output that cannot by copied or duplicated. Used for confirming authentication and creating digital identities.
Digital Wallet Address—an alphanumeric digital wallet that represents an account number for digital holdings.
Distributed Autonomous Company—one that operates specifically to earn profits for coin holders by creating value for the free market.
Distributed Ledger—list of transactions on a computer which contains blockchain software which is updated with worldwide transactions when asked to do so.
Distributed Network—nodes which are spread across different locations to achieve decentralization.
Dogecoin—a coin created using a “Doge” theme.
Dump—selling cryptocurrencies.
Dust Transactions—Transfers of value which are too small to send due to the high fee price.
Double Spend—in banking situations where money is spent more than once. This cannot occur with Bitcoin transactions as the miners ensure all transactions are verified.
Dynamic Reserve Pool—keeps reserves of cryptocurrencies and establishes rates of exchange so as any user can easily trade one cryptocurrency for another.