If you’re new to cryptocurrency, you’re probably confused by the many terms that are used everywhere. We decided to help you and compiled a mini-dictionary for the novice cryptocurrency user.
The algorithm is a way to solve the task using data processing and calculations. Modern programs all work on certain algorithms.
All cryptocurrencies that have emerged since bitcoin.
ASIC stands for”application-specific integrated circuit”. These are chips that are developed for a specific task — in our case it is mining. They are useless for other tasks but are ideal for mining on a certain algorithm.
Bounties are simply jobs, tasks, or projects that are created by coin developers. Participants receive rewards and payments in exchange for completing bounty tasks.
The file in which the data is stored. Numerous blocks make up the blockchain.
Services where you can track transactions on the blockchain. The most famous block explorer is blockchain.info, it is used to track bitcoin. Also, there are etherscan.io chainz.cryptoid.info, dogechain.info, and many others.
The number of blocks that make up the distance between the actual block and the first block, called genesis block.
A network in which cryptocurrency transactions are tracked in sequential order.
The cryptocurrency reward, which the miner receives for participation in the process of opening new blocks.
Storing cryptocurrency anywhere with no access to the Internet. This wallet can be of two types:
- Hardware wallet — a physical device with online access only when connected to a computer.
- Paper wallet — a sheet of paper that becomes a physical embodiment of cryptocurrency with keys.
In cryptocurrency topic, bitcoin is a digital token.
Confirmations are required to confirm the transaction. The number of required confirmations is based on the features of the network. The more confirmations, the more likely the transaction is legitimate. If the network has only a few confirmations, there is a possibility of double spending coins.
This concept applies to Ethereum and ERC-20 tokens. Contract address is the address used by the smart contract at the end of the transaction.
The service which uses a decentralized cryptocurrency and decentralized technology. For example, it can be exchanges and exchangers.
This is a shortcode used in Ripple (XRP). Most Ripple wallets require you to enter destination tag to confirm that funds are being sent to the right recipient.
ERC-20 is a standard for tokens issued on the Ethereum platform. The concept of ERC stands for” Ethereum Request for Comments “ and is intended to improve the system.
A service that allows you to trade cryptocurrencies between users.
The rate at which one cryptocurrency changes to another, or to fiat money and vice versa.
Common, centralized currencies issued by central banks, such as the Dollar and the Euro.
Cryptocurrency, which is obtained as a result of the split of the blockchain.
Gas (wei) is what is used on the Ethereum network to send funds. A small portion of Ethereum is required to complete a transaction, and it is called gas. If the transaction does not have enough gas, it may not be confirmed.
The very first block on the blockchain.
A single Gwei amounts to 10⁹ Wei or 10^-9 ETH. Gwei is used to measure gas price in Ethereum network.
Slang term, which means to hold cryptocurrency, instead of freely dispose of it.
Wallet for cryptocurrencies, constantly connected to the Internet. There is a huge variety of such wallets, the most famous are Breadwallet, Jaxx, Exodus.
Public and private keys together. When you create a wallet, you get a pair of keys — one of them is private. You should backup it and never show to the third parties.
The old format of Bitcoin crypto-addresses, which started with “1”. The same format was present in Litecoin and Bitcoin Cash, but they started with different numbers. The new formats appear as the result of SegWit or the need to differ from other cryptocurrencies.
The shorthand of “market capitalization” — this term implies the total value of the entire asset traded in the market. For cryptocurrencies, the market cap is the total value of each coin, it is calculated as the number of coins in circulation multiplied by the price of one coin.
A set of all transactions waiting to be confirmed on the network
The process of calculating complex cryptographic tasks that are necessary to confirm transactions on the blockchain.
Payment received by the miner for the fact that his equipment is used to maintain the network — to include the transaction into the block.
Multisignature allows users to sign a document digitally to confirm a transaction. Multisignature is a condition for a transaction to be executed only if it is signed by several private keys.
Node is any computer with the full downloaded blockchain that helps other components to communicate with each other in the network and to disseminate information about transactions and blocks.
A number consisting of letters and numbers that confirms that the transaction in Monero will pass to the correct recipient. Not all Monero wallets require you to enter a payment ID, but many of them have this option. Some other cryptocurrencies also have their equivalents for payment ID.
Cheating users when a fraudulent website or app disguises itself as a real one but actually steals money or information.
A private cryptographic key that only the user knows. The key is used to decrypt messages generated by the public key.
A cryptographic key used to encrypt messages that are then decrypted using a private key.
The address that the user specifies if the funds are intended to be returned.
An attack on the authentication system by recording and playing back previously sent valid messages or parts thereof.
A satoshi is a small amount of bitcoin. One bitcoin contains 100,000,000 satoshis.
The alias of the creator of bitcoin, who wants to remain unknown.
SegWit stands for “Segregated Witness”, it is a superstructure over the existing cryptocurrency protocol, which helps to “boost” the network, to improve network throughput, while not breaking main-chain blocks.
SHA-256 is the cryptographic hash algorithm. It uses 256-bit signature.
A computer algorithm designed to conclude and maintain commercial contracts in blockchain technology. Smart contract is a digital protocol written with the help of computer code. Its purpose is to transfer information and ensure the execution of the contract by both parties.
To the moon
This phrase expresses a sharp jump in the value of cryptocurrencies. For the first time, they began to say so when Dogecoin increased in its price abruptly.
The commission, which is taken for each operation on the transfer of cryptocurrencies.
The TXID (transaction ID) or the hash is a memo consisting of numbers and letters, marking each transaction in the blockchain.
A UTXO stands for “unspent transaction outputs”. This is used for validation via nodes on the network. The sum of these outputs is the user’s total balance.
E-wallet, which stores cryptocurrencies
The main document, which is written by those who launch a new crypto-coin. This document explains all aspects and importance of this coin: how will it be used, for what purposes, why will it grow in price.
The address that the user specifies to get his money after the exchange.