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51% Attack

An attack on the blockchain by a miner (or group of miners) who owns more than 50% of the network’s mining hashrate or computational power. A 51% attack is also known as a Majority Attack.

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Address

A crypto address is a string of characters that represents a specific wallet on the blockchain. It is similar to a bank account, and also referred to as a public key.

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Airdrop

The distribution of cryptocurrency tokens to the wallets of users. Airdrops are usually organized by blockchain-based startups, and they reward users with tokens in exchange for publicity (usually in the form of social media interaction).

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All-Time High (ATH)

ATH is short for All-Time High. It refers to the highest historical price of a cryptocurrency.

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All-Time Low (ATL)

ATL is short for All-Time Low. It refers to the lowest historical price of a cryptocurrency.

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Altcoin

An altcoin (alternative coin) is any cryptocurrency other than Bitcoin.

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Anti Money Laundering (AML)

AML is a set of laws and regulations meant to prevent the laundering of money obtained from illegal activities.

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Application Programming Interface (API)

An API is a code that allows one application to pull data/information from another. For example, if we were to display the weather in our platform’s dashboard, an API would give us access to that data directly.

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Application-Specific Integrated Circuit (ASIC)

An ASIC (Application-Specific Integrated Circuit) is a processing chip created with a specific purpose. In the case of cryptocurrencies, that purpose is mining.

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Arbitrage

In the trading world, arbitrage refers to the process of buying and selling cryptocurrencies over different markets to make a profit from the price difference.

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ASIC-resistant

An ASIC-resistant cryptocurrency is a coin whose protocol blocks (or renders useless) the usage of ASIC miners.

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Atomic Swap

An atomic swap is a smart contract technology that helps a user exchange one cryptocurrency for another, without using an exchange.

B

Bear Market

A bear market is a market whose share prices are falling, encouraging owners to sell.

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Benchmark

The practice of comparing business processes and performance against industry best practices in order to determine the quality of the tested product/business.ey

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Block

Commonly known as records, bitcoin blocks are files that contain information on transactions. Together, all the blocks form the blockchain.

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Block Height

The block height represents the number of total blocks in a blockchain.

B

Blockchain

The blockchain is digital ledger which holds information on all the transactions of a cryptocurrency.

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Bounty

A bounty is a reward offered by a business or an individual to encourage users to perform certain promotional tasks. These usually include reviewing a product in a video or a blog post, or interacting with the business’ social channels.

B

Bull Market

A bull market is a market whose share prices are rising, encouraging people to buy.

B

Buy Wall

A buy wall is a concept that describes the situation when a wealthy trader or group (commonly known as whales) performs a huge buy order or multiple large buy orders at the same price. This action is done in order to control the market and set the buying price of a currency at a desired value.

C

Candidate Block

A candidate block is a block that a miner is trying to mine in order to receive the block reward.

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Central Processing Unit (CPU)

A CPU is the central core of every device (computer, smartphone, or tablet). The CPU handles the basic operations of a device, and allocates the more complex ones to other components.

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Cipher

A cypher is an algorithm that helps encrypt and decrypt messages.

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Circulating Supply

Circulating supply represents the total number of units a specific cryptocurrency makes publicly available at the moment.

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Cloud

The cloud is a network of servers that runs on the Internet (instead of locally) and that is used as a storage point for data.

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Cloud Mining

Cloud mining represents the usage of a remote data center with shared processing power in order to mine Bitcoin or other cryptocurrencies. The processing power is owned, maintained, and contracted to customers by mining companies. Customers are able to register and buy contracts and mine a coin without investing in their own mining infrastructure.

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Commodity Futures Trading Commission (CFTC)

Commodity Futures Trading Commission (CFTC) is an independent agency of the US government that is charged with regulating futures and options markets.

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Cryptocurrency

A cryptocurrency is a form of digital currency that uses strong cryptographic technology to ensure the security of financial transactions and control the creation of new units.  A cryptocurrency is usually designed to work as a unit of account, a store of value, and a medium of exchange. In some cases, it can also be a digital representation of an asset.

D

Decentralized Application (dApp)

A dapp (decentralized application) is an application that runs on a distributed network of computers instead of a single central computer.

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Decentralized Exchange (DEX)

A DEX (decentralized exchange) is a cryptocurrency exchange that operates without a central authority, allowing peer-to-peer trading of cryptocurrencies.

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Decryption

Decryption is the process of transforming encrypted data back into a readable format.

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Design Flaw Attack

A Design Flaw Attack is an attack in which a user purposely uses a software or a network with knowledge of certain flaws, so he can later exploit them for malicious actions.

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Diamond Hands

When you have “diamond hands” it means that you hold onto an crypto no matter what. You don’t sell it regardless of volatility, losses or gains. Someone with diamond hands resists panicking when prices dip, but he or she also doesn’t get greedy when prices rise. The person is in it for the long haul.

D

Divergence

A Divergence represents a moment in which the price of an asset and a certain technical indicator are heading in opposite directions.

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Do Your Own Research (DYOR)

DYOR (Do Your Own Research) is a crucial advice in the crypto world. Always do your own research; don’t just follow what the others say.

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Dollar Cost Averaging (DCA)

DCA (Dollar Cost Averaging) is the act of investing fixed amounts of money (dollars) over a period of time, regardless of the price of the asset..

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Double Spending

Double Spending is the act of spending a coin, the same coin that you used already spent in a previous transaction, more than once. This is usually caused by a 51% attack.r.

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Eclipse Attack

Eclipse Attack represents a situation in which the majority of a network’s users are malicious and monopolize the network in order to abuse it for their own benefit.

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Encryption

Encryption is the process of securing information using cryptography.

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ERC-20

ERC-20 is a technical standard used to issue and implement tokens on the Ethereum blockchain.

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ERC-721

ERC-721 is a free, open standard that explains how to build unique tokens on the Ethereum blockchain.

E

Exchange

An Exchange is a marketplace where users can buy and sell crypto coins.

F

Falling Knife

Falling Knife is the action of purchasing an asset while its value is declining, with hopes that the price will rise after a while.

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Faucet

In the cryptocurrency market, a faucet it’s an app or a website based on a reward system, giving away small units of crypto coins. The users can obtain the rewards from claiming, completing a captcha, or a task described on the website. The most popular faucets are based on Satoshi (for Bitcoin) and Wei (for Ethereum).

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Fiat

Fiat represents money that is declared legal tender by the government (such as EUR or USD).

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Finality

Finality is the assurance of guarantee that completed (cryptocurrency) transactions cannot be altered, reversed or canceled.

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Flappening

The Flappening is the event in which Litecoin (LTC) surpasses Bitcoin Cash (BCH) in market cap.

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Flippening

The Flippening is the event in which Ethereum (ETH) surpasses Bitcoin (BTC) in market cap.

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Forced Liquidation

Forced Liquidation represents the involuntary sale of assets or securities to create liquidity.

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Full Node

A Full Node is a program that completely validates transactions and blocks, fulfilling the attributions of a miner.

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Futures Contract

A Futures Contract is a legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.

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Gas

Gas is a unit used on the Ethereum network to measure the computational work of running transactions and smart contracts.

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Gas Limit

Gas Limit represents the maximum amount of gas a user is willing to spend on a particular transaction.

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Genesis Block

Genesis Block is the first block to be recorded on a specific blockchain. Also referred to as Block 0.

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Gwei

Gwei represents one billion wei, wei being the smallest unit of Ether.

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Hacking

Hacking is the process of using a computer to manipulate another computer or computer system in an unauthorized fashion.

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Halving

Halving is the event in which the block reward of a crypto asset, such as Bitcoin, drops to one-half of what it was before; this is used to create a decaying rate of insurance to arrive at an eventual finite supply of a crypto asset.

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Hard Cap

Hard Cap is the maximum amount of funds a project aims to raise during their funding campaign (ICO/IEO/STO).

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Hard Fork

Hard Fork is a radical change to a network’s protocol, a modification in a previous block that requires all nodes or users to upgrade to the latest version. The hard fork creates a permanent divergence from the previous version of the blockchain, creating a new path that continues along with the old path.

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Hash

The values returned by hash function. Also known as hash values, hash codes, or digests. Contrary to popular belief, in the crypto world, hashes have nothing to do with hash browns.

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Hash Function

Hash Function is the process where a computer takes an input of data (generally transactions) and with the help of a mathematical formula turns it into an alpha-numeric string of characters.

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Hash Rate

Hash Rate is the speed at which a mining rig is able to calculate new hashes, generally measured in seconds.

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Hashed TimeLock Contract (HTLC)

HTLC (Hashed TimeLock Contract) refers to a special feature that is used to create smart contracts that are able to modify payment channels.

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HODL

HODL is a typo for “Hold” originating from BitcoinTalk that has also been retrofitted to be an acronym for Hold on for Dear Life – to maintain ownership of coins and not sell.

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Index

An index is a financial instrument used to track the price value of a specific asset.

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Initial Coin Offering (ICO)

An ICO (Initial Coin Offering) is a token sale organized by a start-up in order to raise funds for the project.

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Initial Exchange Offering (IEO)

An IEO (Initial Exchange Offering) is a token sale organized by a start-up with the help of an exchange platform.

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Initial Public Offering (IPO)

An IPO (Initial Public Offering) represents the moment when a company starts selling its shares to the public.

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Interoperability

Interoperability is the ability of blockchains to build upon each other’s features.

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Java

Java is a general-purpose, class-based as well as object-oriented programming language.

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JavaScript

JavaScript is a powerful, dynamic, lightweight, and advanced programming language. It is mostly used in web-based applications.

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JOMO

 JOMO stands for “Joy of Missing Out.”

K

Key pairs

A key pair is the combination of a public and private key together. During the process of creating a wallet, a pair of keys is generated. The private key is the most important one and should be backed up safely and not shared with anyone.

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Know Your Customer (KYC)

KYC (Know Your Customer) is a procedure that allows companies to identify their customers, complying with KYC and AML laws.

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Know Your Developer (KYD)

KYC (Know Your Developer) is a procedure that allows companies and customers to identify their developers. 

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Lightning Network

Lightning Network is a proposed scaling solution for the blockchain. Acting as a second framework built on top of the existing one, it helps increase transaction speed.

M

Mainnet

The Mainnet is the blockchain where the transactions are being made, verified, and recorded. The main network.

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Mainnet Swap

Mainnet Swap represents the migration of a coin from one blockchain to another.

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Market Capitalization

Market Capitalization represents the total trading value of a crypto coin, calculating by multiplying the supply of tokens with the current price.

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Masternode

Masternode is a PC wallet or crypto coin node that is used as a Proof-of-Service algorithm to protect a real-time copy of the blockchain.

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Merged Mining

Merged Mining represents the process of allowing two different cryptocurrencies to be mined simultaneously.

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Merkle Tree

Merkle Tree is a structure that allows for the efficient and secure verification of content in a large body of data. Also known as a hash tree.

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Metadata

Metadata represents data that is included in the blockchain, other than specific transactions.

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Mining

Mining represents the verification of transactions on a blockchain network, in which transactions are added as entries into the blockchain ledger.

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Mining Farm

A Mining Farm is a group of miners housed in a single location, dedicated to mining cryptocurrencies.

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Mining Rig

Mining Rig denominates a hardware system used for mining cryptocurrencies.

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Multisignature

Multisignature represents a technology used by certain wallets that require more than one party to authorize a transaction.

N

NFT

NFT is the abbreviation of non-fungible token. This is a type of token representing a unique asset. These can be either digital or represent real-world assets. Examples are a sword in a game or ownership of a piece of land. NFT’s are generally scarce, unique and indivisible. The Ethereum blockchain makes it easy to create NFT’s with it’s ERC-721 and ERC-1155 standards.

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Nocoiner

A person, who does not possess any cryptocurrency, is also called a nocoiner.

N

Node

A Node is a point in the blockchain network. All the nodes on the network are connected to one another and ensure its integrity.

N

Nonce

A nonce is short for “number only used one”. This relates to a number that is added to a hashed or encrypted block in a blockchain. It is the number that blockchain miners are trying to solve. Once the solution is found, the miner will receive a reward in the form of cryptocurrency. You can read more about this in the blog post ‘What is blockchain‘.

N

noob / n00b

A person who is not very experienced in a particular topic, like the complex world of crypto, for example, can be called a noob or sometimes spelt n00b. This person might think they know enough about the topic, but actually does not and is often not very willing to learn as well. It is different from a newbie or newb. The topic is new to them and they ask questions to learn more about it.

O

ODN

ODN is the abbreviation of ‘OriginTrail Decentralized Network’. This is an open-source and permissionless network that relies on an off-chain technology stack consisting of several inter-related layers. It is a decentralised network of data providers, data creators, data holders, and data viewers. The glue between all entities is the ERC-20 based Trace Token (TRAC). This is used as a collateral stake to keep data holders honest and for payments to compensate the data holders for providing their resources.

O

Off-chain

A transaction that is recorded and validated off the blockchain.

O

OG

OG refers to ‘original gangster’ and has its origins in the rap and hip hop culture. These days it’s used more widely and also in the crypto space on Twitter and in Telegram chat groups. It means somebody who is around and involved since the early beginnings. In crypto, this would mean since around the inception of a coin. There can be Bitcoin OG’s and altcoin OG’s.

O

Orphan Block

An ‘Orphan’ or ‘Orphan block’ is a block in the blockchain that is not further built on. Blockchain blocks are usually generated by ‘mining’ or ‘staking’; occasionally two blocks are created simultaneously by different computers. Only one of the two can be valid on the blockchain, so the other expires and becomes an orphan block

P

Paper wallet

A paper wallet is an alternative to a hardware or software wallet. It is a piece of paper or a PDF containing the information to access the cryptocurrency in that wallet. It normally consists of a ‘public key’ and a ‘private key’.

P

Parachain

A parachain is a part of the Polkadot blockchain and is a simpler form of blockchain where the security is provided by a “relay chain” instead of providing its own. The relay chain provides the security to the attached parachains and guarantees passing messages between them in a secure way. Computations on parachains are independent and this prevents slowing down of transactions due to it’s parallelized execution instead of sequential.

P

Permissioned blockchain/ledger

Anyone can mine Bitcoins because it is a public blockchain. This is not the case with a permissioned blockchain. There is a layer above it that determines which entity is allowed to write transactions in a block. The XRP coin from the company Ripple Labs is an example of such a blockchain and has CGI, MIT and Microsoft as approved entities for example. These are called ‘transaction validators’.

P

Phishing

Phishing is when hackers try to get a user to give up personal information such as login and password or credit card details. This is often done using a fake website or application, which is very similar to the original. This is common in cryptocurrency because only the private key is enough to steal all coins.

P

PoA (Proof of Authority)

PoA stands for ‘Proof of Authority’. This is a validation method to process transactions and blocks in a blockchain only by approved accounts. These are known as ‘validators’ and run specific software to store the transactions in blocks. Since the identity is linked to the system, it can contribute to more trust

P

PoB (Proof of Burn)

PoB stands for ‘Proof of Burn’. This is a method to invest in a new cryptocurrency by destroying coins of an existing one, which has been given the term ‘Burning’ in the crypto world. This is done by sending coins to a special, unusable address. That’s usually the only way to destroy coins within a blockchain. This method can also be used when a coin gets a relaunch with a new team and a new coin.

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PoD (Proof of Developer)

PoD is the abbreviation for ‘Proof of Developer’. This can be any verification that can serve as proof that a cryptocurrency was created by a real software developer. This method is mainly used when launching a new cryptocurrency to prevent scams.

P

Polka

Polka is short for Polkadot, which is a cryptocurrency similar to Ethereum. Because of the growth of the ecosystem, it is referred to in short using Polka instead of the full name, like for example: ‘this is a new polka project.’

P

Portfolio

A cryptocurrency portfolio is total holdings of your crypto assets in one place. You can own several cryptocurrencies and tokens and to track the value of that you need to register the size and price of each buy and sell order. This can be done in a spreadsheet, but it is much more convenient to use a dedicated app like Delta for example. With these types of apps, you can easily register your portfolio changes since they retrieve the current price of a coin from API providers. Often you can also set alerts on to notify you when the price goes above or below your target.

P

Pre-Sale

A ‘Pre-sale’ the phase of an ICO before the ‘Public-sale’. During this phase, investors can make the first investment. The tokens often have a lower price than during the public sale. The money raised is generally used for further development, financing of the public sale and as a method to explore the market’s enthusiasm. It is possible that the ICO itself is not successful and a ‘refund’ is not always guaranteed. This also makes a pre-sale riskier than a public sale.

P

Privacy coin

A privacy coin is a cryptocurrency, which focuses on security and anonymity of the users. Some examples are PivxDash, and Monero. There are several methods to make a transaction anonymous.

P

Private key

A private key in the crypto space can be defined as the combination of letters and numbers that corresponds to a specific public key. The private key can be used to gain access to the assets on that public key, also known as the wallet address. Once you share your private key with somebody, store it on your computer in plain text or type it in a website or app, you risk losing all your funds stored on its a corresponding public address.

P

Proof of Stake (PoS)

The Proof-of-Stake (PoS) consensus algorithm is introduced as an alternative to Proof-of-Work (PoW) without the energy-consuming aspect. In the case of PoS the creator of the next block is randomly chosen based on a combined selection of age and wealth, where the wealth is the ‘stake’ or amount of cryptocurrency that has been put to work. This is done by having it in an unlocked wallet for staking. The staking can usually be done on a VPS or computer at home.

P

Proof of Work (PoW)

POW (Proof of Work) is a mechanism that rewards users who validate blocks by using pure computational power to decrypt their hash value.

P

Public key

A public key in the crypto space can be defined as a combination of letters and numbers and forms the address to which the cryptocurrencies or tokens can be sent to. Everybody who knows the public key of somebody can see the assets stored on that address. Only the owner of the corresponding private key can send those assets out.

Q

QR Code

A QR code is a type of barcode in the form of a square. The letters QR stand for ‘Quick Response’. The code contains many dots, a few small squares and sometimes a small logo in the middle. This is different from most other barcode types, which are rectangular with lines. A QR code can therefore contain much more information. Within the crypto world, it is often used to make a ‘wallet’ address scannable. This speeds up the process of transferring crypto and prevents errors.

R

Raiden Network

The ‘Raiden Network’ is a way to make the Ethereum blockchain scalable, for example by making off-chain transactions possible. It is a separate ERC20 token and the team held an ICO in 2017.

R

Rebrand

Rebrands already happened many times in the crypto space. It means that the coin changes their name, logo and sometimes their vision. This can be done for several reasons. It could be a better fit for what they are trying to achieve, or the old name has a bad reputation. Rebranding can be used as an attempt to make people forget it. Sometimes it even causes hype where the price goes up. The ‘ticker’ sometimes stays the same though, because it’s more practical in regards to third parties like wallets and exchanges.

R

Reddit

Reddit is a social media platform that is used intensively in the crypto community. The website has pages per topic, which is called a subreddit. Visitors can post messages and respond to them. Coins often have their own subreddit for the community to converse and for the team to post (development) updates.

R

Refund address

A ‘Refund address’ is a wallet address that a user sometimes has to enter to receive a chargeback. This is often necessary for coin conversion websites in case a transaction fails.

R

REKT

The term ‘REKT’ is a comes from the word ‘Wrecked’ and is used in the crypto community to indicate enormous losses.

R

Replay attack

These are attacks on a blockchain after a fork. When you try to send coins on one of the chains there could be an attempt to mirror the action on the other chain. So when sending 1 BTC it could happen that 1 BCH is also sent. Bitcoin Cash has implemented a replay protection method, but not all (Bitcoin) forks have this, which could be done on purpose. This is a risk when claiming hard fork coins.

R

Ripple

Ripple is the company that created the coin XRP. The coin itself is sometimes also called Ripple, but that is not correct.

R

Roadmap

A roadmap is a plan that shows what an organization or team wants to achieve. This usually contains the deliverables for the year, but sometimes it’s even a couple years in the futures. In can be as detailed with specific dates or months, but it can also be broader and based on quarters. In crypto, it’s a common practice that the team shares this roadmap publicly to give insight into the coming features and when those will be realised.

R

ROI

ROI is an abbreviation for ‘Return on Investment’. This is an indicator to show the ratio between your initial investment and the return on it. The formula is ((current value – investment) / investment) x 100. Example: if 1 Ether deposit in an ICO total has become worth 1.6 Ether, then the ROI is 60%.

S

SAFU

SAFU is a term in the cryptocurrency world that means safe. It is used by, for example, exchange CEO’s when a hack has happened and then can say ‘All user funds are SAFU

S

Sat

Sat is the abbreviation of Satoshi.

S

Satoshi

A satoshi (sat) is the smallest amount of bitcoin and is named after the creator Satoshi Nakamoto. It is the eighth decimal place, so 0.00000001 BTC

S

Satoshi Nakamoto

Satoshi Nakamoto is the alias of the creator of Bitcoin, who wants to remain anonymous. Nobody knows who it is. It could be a person, a group, a company or even a government. It is quite likely that it is a person because there are people who have communicated with him or her via e-mail.

S

Scam

A ‘Scam’ is a fraudulent scheme that is performed by a dishonest individual, group or company. The goal is to get money or something else of interest like personal information or in the case of cryptocurrency the ‘private key’.

S

Scammer

A scammer is a person who performs a scam.

S

SEC

SEC is the abbreviation of ‘Securities and Exchange Commission’. This is an independent government organization of the United States of America. The SEC holds the primary responsibility regarding the financial markets. They enforce the federal securities laws, propose new rules and regulate the US financial markets.

S

Segregated Witness (SegWit)

SegWit is a solution to make Bitcoin more scalable with the goal of faster transactions at lower costs. The use of SegWit required a ‘soft fork’ which took place on 21 July 2017. Altcoins like Litecoin, Digibyte or Vertcoin have also implemented SegWit in their Bitcoin-based blockchain.

S

Shilling

Shilling is when someone is subjectively promoting a coin or ICO. This is sometimes just out of enthusiasm and sometimes just to convince as many buyers or investors as possible to join in withto have as much profit as possible when the price goes up.

S

Shitcoin

A Shitcoin is any coin, which is badly rated by the one who talks about it. So it can be any altcoin, but also Bitcoin. The reason given could be a lack of innovation, poor communication, slow development or another coin is considerably better according to that person.

S

Short

Shorting or going short on an asset is a trading strategy where you speculate on a price decline of that asset. It is a very risky tactic and you can easily lose money with this method. Therefore it is only useful for experienced traders and investors with a high-risk tolerance. Shorting comes from the traditional finance world, but is now also possible on crypto and is mostly done on Bitcoin. The shorting method itself is a practice where borrowed assets are sold on the market to buy back at a lower price and make gains with the difference. It’s also possible to use high leverage for even higher gains, but that bears even more risk of losing. The opposite of going short is going long.

S

Smart Contract

A smart contract came to existence with the launch of the Ethereum blockchain but has nowadays also been replicated in different forms on other blockchains. It can be seen as a protocol or computer program that is meant to autonomously and automatically execute pre-defined commands based on relevant events. The goal of this technology is to automate events and reduce the need for trusted third parties. This technology can be used for various purposes like the creation of tokens, facilitating DeFi, prediction markets and more. Oracles enable the usage of real-world data in smart contracts. The possibilities of this technology are endless.

S

Solidity

Solidity is a programming language for writing or implementing ‘Smart Contracts’ that run on the Ethereum blockchain. Several Blockchains now support this new language.

S

Stablecoin

Stablecoins are tokens or cryptocurrencies attempting to have a minimized volatility of its price. It usually tries to keep a stable price of a related asset like USD for example. It can be backed by the related asset or replicated using smart contracts. Stablecoins are usually pegged to fiat money, but it’s also possible to be pegged to precious metals like gold or silver, or even other assets. It enables an easily accessible way to store crypto wealth, temporarily, in a more stable asset during market volatility instead of using the traditional financial ecosystem. Fiat withdrawals can take a few days and could be costly as well. Examples are USDC and USDT.

S

Staking

Staking the process that belongs to ‘Proof-of-Stake’.

S

Stock-to-Flow model (S2F)

This model uses scarcity to quantify the value of bitcoin, but it can also be applied to other assets like gold or silver. Although the model has become very popular in the crypto space, not everybody agrees

S

Swing

A ‘Swing’ is a zigzag movement of price. A ‘Swing trader’ is someone who makes intensive use of it to get more coins.

T

TA

TA stands for Technical Analysis. This is used to analyze the graph of a cryptocurrency or stock with different indicators. This gives an investor or trader more justification for the choice to buy or sell

T

Tanking

Tanking stands for a decrease in value. If a cryptocurrency ‘tanks’, the price drops considerably. This can have several causes on a fundamental level or when an important cross in technical analysis is formed.

T

The Flippening

The moment that another cryptocurrency has a market value greater than Bitcoin is called ‘The Flippening’. This has not happened yet.

T

To the moon

This expression is common in cryptocurrency chat groups and forums. It is used to communicate the desire for a huge price increase. For that purpose, they say ‘When Moon?’. It is also used at times when the price of a coin is rising rapidly. In those cases the phrase ‘To the moon!’ is common.

T

TOR

TOR is an abbreviation for ‘The Onion Router’. Onion routing is a method to send data anonymously over the Internet. The TOR Network consists of thousands of proxy servers on the Internet run by volunteers, which enables the routing. There are already cryptocurrencies that support ‘nodes’ on the TOR network.

T

Total Supply

The ‘total supply’ indicates the number of coins already in circulation, supplemented with the coins that are not tradable yet. So it only applies to coins already in existence. This is different from the ‘max supply’, in which future coins are included. The total supply is greater than or equal to the ‘circulating’ supply’. It can consist of tradable and non-tradable coins, such as reserved or not yet released coins for the team or investors.

T

TPS

TPS stands for transactions per second and refers to the number of transactions that a network can process each second. For example, the TPS of Bitcoin is around 5 and that of Ethereum is around 10 at the moment. This means that a higher fee is needed to have a transaction processed quickly. New Blockchains can distinguish themselves by having a much higher TPS, but this often comes with more centralisation of lower (chain) security.

T

Trading Bot

A trading bot is an algorithm that trades for a trader on a stock exchange or crypto exchange. Trading bots are used by both professionals and amateurs.

T

Transaction fee

The ‘transaction fee’ is the amount that has to be paid to execute transactions on the Blockchain. This fee is usually paid to the ‘Miners’, but sometimes they are burned. There are also several cryptocurrencies, where you don’t have to pay a fee.

T

Transaction ID

All transactions in the Blockchain, such as the amount, the address of the sender and recipient and the date of transfer, are provided with an identification, which is publicly accessible in the ledger of the Blockchain. This is the ‘Transaction ID’.

T

Trezor

The Trezor is a popular ‘Hardware Wallet’, which supports multiple blockchains.

T

Trillion

A trillion is in numbers 1,000,000,000,000. Since this is such a large number, you can also say that it is one thousand billion or one million million. For most people, those are more understandable numbers. In 2021 Bitcoin reached a market cap of 1 trillion for the first time.

U

User Experience (UX)

UX (User Experience) refers to the affective, experiential, meaningful, practical and valuable aspects of human-computer interaction in order to improve the user’s satisfaction with a product by focusing on its usability.

U

User Interface (UI)

UI (User Interface) refers to the human-computer interaction and communication in a device. It ensures that the product looks good, and users can understand at a glance what every element does.

U

UXTO

UXTO is the abbreviation of ‘Unspent Transaction Output’. The total balance of bitcoins on an address can be spread over multiple blocks in the blockchain. The unspent bitcoins have a UXTO attribute. By searching the blockchain for the UXTO’s, which belong to a ‘wallet’ address, the total spendable balance can be determined. This is displayed by the wallet when it is fully synchronised.

U

Utility Token

A Utility Token is a digital token issued to fund the development of a cryptocurrency and that can be later used to purchase a good or service offered by the issuer.

V

Vaporware (aka Vapourware)

Vaporware is a term that comes from the software world to indicate announced, but not released or cancelled software. In the cryptocurrency world, this also happens, but the term “Shitcoin” is more common.

V

Volatility

Volatility represents the degree of variation in the value of an asset over a specific period of time. It is calculated as standard deviation of the annualized returns over a given period of time.

V

Vitalik Buterin

Vitalik Buterin is a programmer of Canadian-Russian descent. He is the inventor of ‘Smart Contracts’ and co-founder of Ethereum.

W

Wallet

A ‘wallet’ is a place to store cryptocurrencies encrypted. There are several variants, such as a paper wallet, hardware wallet or software wallet. Each coin has one or more supported wallets.

W

Wash Trading

Wash trading is the activity on an exchange where trades are done with themselves. The sole purpose of this is to increase the trading volume. This could lure in new investors to trade that asset or makes it look like that specific exchange is heavily used and thus makes it look more trustworthy. This behaviour is forbidden in traditional markets.

W

Weak Hands

The term ‘weak hands’ refers to an investor that has sold their investment or a part of it, due to emotional distress. People who got nervous and sold too early are then called ‘weak hands’ in crypto chat groups. The opposite of this can be the term HODL or Hodler.

W

WEB3

WEB3 refers to ‘Web 3.0 Technologies Stiftung’ , which is a foundation that funds research and development teams who are building the foundation of the decentralized web. Web2 refers to the internet as we know it today. A large number of entities received this funding, among a lot of blockchain projects. This is why you’ll see the term WEB3 more often in the crypto space.

W

Wei

A ‘Wei’ is the smallest denomination of Ether. 1 Ether = 1,000,000,000,000,000,000 Wei (10-18)

W

Whale

A ‘whale’ is someone with a very large position in a coin.

W

Whitelist

A “Whitelist” is a list of approved participants, who may participate in an ICO or Pre-ICO. A ‘whitelist’ is not always used, but it is usually used to generate ‘hype’ and exclusivity for the ICO.

W

Whitepaper

A ‘whitepaper’ is a document that is almost always written for the launch of a new coin through an ICO. All aspects of a coin should be explained here: how it is used, for what and sometimes also the price expectation. After the ICO new versions can be released if the situation changes.

W

Wholecoiner

A wholecoiner is someone who owns 1 full Bitcoin. The higher the price of Bitcoin gets, the harder it becomes to achieve this. Therefore, the number of ‘wholecoiners’ will also be limited.

X

XBT

XBT is an alternative abbreviation for Bitcoin (BTC) and is the official ISO 4217 standard. It is a country independent cryptocurrency. The abbreviation for gold is XAU.

Y

Yellow paper

A ‘yellow paper’ is a research document. It describes a more in-depth and technical analysis. The purpose of this document is to inform those involved and interested.

Y

Yield farming

Yield farming is the process of generating the most returns possible on your crypto assets by putting them to work. Within the crypto space, DeFi has taken on a big role and services inside this space are making yield farming possible. There are nowadays ways to move your crypto assets to pools to gain interest on those assets giving it an annual percentage yield (APY). Just buying crypto-assets and holding them in your wallet, won’t generate any yield, but lending them out with DeFi services like, Compound, for example, does make this possible. A term closely related to yield farming is liquidity mining.

Z

Zerocoin (protocol)

Zerocoin, also known as Zerocoin protocol, is originally a proposal to give Bitcoin a privacy function. It is currently implemented by, among others, the coins Firo (formerly Zcoin) and PivX. Read more about this in this detailed description of zerocoin.

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