Glossary index:

123

51% Attack

A forcible, intense attack on the cryptocurrency network, conducted through taking over more than a half of computational power; hence the name 51% attack. The attack is commonly directed towards taking over 51% of the network’s mining power in order to enable double spending of assets on the network by manipulating the consensus mechanism and controlling the majority hash rate. During the attack, attacker is taking over the majority of computational power so the initial consensus mechanism is being manipulated.

A

Address

A string of characters consisting of alphanumeric symbols. The address represents a point of destination to where cryptocurrency can be sent, as well as a point base from which cryptocurrency is sent from. Each address is unique and matches a unique access key.

Airdrop

A process of cryptocurrency distribution where cryptocurrency startups, exchange platforms or wallets are rewarding the market participants based on a set of rules which are predetermined and usually include owning a type of digital asset. Market participants are not buying assets during airdrops, but are receiving them as a form of a reward.

Algorithm

Encoded processes or sets of instructions used to perform and conduct commands executed by computational power.

Altcoin

Alternative cryptocurrency and digital assets that are not Bitcoin (BTC). The term is used to address all coins that represent alternatives to the original cryptocurrency, and which came after Bitcoin’s initial launch.

AML

Abbreviation for Anti Money Laundering, representing a legal framework for preventing illegal activities related to money laundering.

API

Abbreviation for Application Program Interface. A program, software or a set of functions designed to define actions and operations between features and data of different services, such as applications and operating systems.

Arbitrage

buying and selling cryptocurrency in a simultaneous way by using various different markets in order to make profit under a lowered risk.

ASIC

Abbreviation for Application Specific Integrated Circuit. ASICs are a type of competitive mining equipment holding hegemony over mining pools where ASICs are still allowed through consensus mechanisms.

ASIC Miner

ASIC Miners or ASICs are a type of competitive mining equipment holding hegemony over mining pools where ASICs are still allowed through consensus mechanisms.

ATH

Abbreviation for All Time High, describing the highest price of a digital asset ever achieved since the point the asset was first launched into the market. The term can also describe an all time high for a specific period of time.

ATL

Abbreviation for All Time Low, describing the lowest price of a digital asset ever achieved since the point the asset was first launched into the market. The term can also describe an all time low for a specific period of time.

Atomic Swap

A method created by cryptocurrency networks where users can instantly exchange their assets for other types of digital assets without selling or buying cryptocurrency through an exchange market. A form of crypto-to-crypto conversion.

B

Bag Holder

A trader of cryptocurrency and digital assets holding a substantial amount of currency that had depreciated in value over a certain period of time to the extent where it appears that these assets cannot be sold at an adequate price to cover at least a portion of losses.

Bear Market

Bear market metaphorically describes the state of the market when prices are falling, more exactly when price of assets falls 20% or more from recent highs. Normally this state encourages pessimism and selling of digital assets is more likely. Traders selling at this time are bearish as they believe the downtrend.

BIP

Bitcoin Improvement Protocol, set to represent a design document that proposes changes and features to the Bitcoin blockchain.

Bit

A fragment and a unit of measurement represented as a 0 or 1 in binary code for computational operations. Bit also represents an accounting unit of one Bitcoin where 1,000,000 Bits equals 1 Bitcoin.

Bitcoin

The most famous and the most popular cryptocurrency. The first ever cryptocurrency to be released, launched back in 2009, marking the beginning of the cryptocurrency market era. Bitcoin is a blockchain-based digital assets for transacting of monetary value.

Block

A digital file created to store data of all and any activities on a blockchain network. A Block is an immutable digital file, created with a unique timestamp to prevent alterations of data. Each block consists of a Merkle Tree hash, digital signatures, transactions and timestamps.

Block Explorer

Block explorer (also block browser) is a website or software for exploring cryptocurrency blockchain. It is a tool for viewing information about blocks, addresses and transactions on the chain.

Block Height

A number of blocks being hashed at the present moment, expressed in numeric symbols.

Block Reward

Reward made based on the internal consensus mechanism within a blockchain-based environment that enables operations on the chain by incentivizing miners or network participants working on validations and block creation.

Blockchain

A digital ecosystem consisting of multiple block units that represent cells of a peer-to-peer network of multiple computers. A decentralized ecosystem running on chains that consist of blocks.

BUIDL

Created based on the model of the expression HODL (hold

Bull Market

Bull market occurs when uptrend on trading market is noticed and generally happens when economy of the industry is strengthening. Prices of digital assets are rising and traders buying are bullish in belief that prices of digital assets will soar further. Bull market is a metaphor for market’s uptrend.

Burning

A way of preventing inflation and devaluation of cryptocurrency units by sending already-spent cryptocurrency to addresses where these coins and tokens are cryptographically destroyed and cannot be spent.

C

Censorship

Removing and filtering data and information in a subjective manner and distributing biased information while removing unwanted data.

Censorship resistant

An entity immune to censorship and data alterations conducted by a third party.

Centralized

Description for a centralized ecosystem that has identified central authority that holds ownership over data, monetary value or a digital ecosystem. A centralized blockchain network means that there is a single point of authority that is able to control all operations on the network without network participants.

CEX

Abbreviation for Centralized Exchange and a simple way of creating a cryptocurrency-related term to describe centralized exchange platforms in the market of digital assets that make up the majority of crypto exchanges.

Circulating Supply

Circulating Supply refers to what number of coins or tokens is circulating. Sometimes Total Supply but not necessary.

Confirmation

Validating transactions by confirming the validity of blocks and spent cryptocurrency units. Each consensus mechanism has a different way of providing confirmations/validations for transactions. On the Bitcoin Blockchain, miners are in charge of confirmations where each transaction needs to be confirmed by six independent nodes in order to become valid.

Consensus

A general agreement on the set of rules created to provide an operating mechanism for a cryptocurrency/blockchain network. Consensus comes with a predetermined set of rules and is created to achieve an agreement on the way the network works.

Cryptocurrency

A digital asset or a virtual currency, created based on a decentralized nature where cryptocurrency is owned by no central entity. Cryptocurrency is cryptographically secured and may carry monetary value.

Cryptography

Privatizing and securing data and information by using cryptographic symbols to create codes and preserve information in terms of security.

D

DAO

Abbreviation for Decentralized Autonomous Organization. A collective or autonomous organization represented in a set of rules that are coded similarly to the way computer programs are. DAO is transparent, has no central authority and is designed to control network participants.

DAPP

Abbreviation for Decentralized APPlication. Applications created on a blockchain and built through smart contracts to facilitate immutability, control over personal data and accessibility through decentralized environments.

Day Trading

Day trading describes trading on a very short-term, generally buying and selling assets within the same trading day.

DDoS

Abbreviation for Distributed Denial of Service. A type of cyber attack where one attacker or a group of attackers is targeting the network by creating more traffic through multiple devices.

Decentralized

A description for environments with no central authority. One of the main core values of blockchain and cryptocurrency platforms is decentralization. Decentralized environments don’t belong to a single entity, where authority is equally distributed to network participants

Deep/Darkweb/Darknet

“The underground” of the internet. The Darkweb represents encrypted content found online and unindexed on search engines such as Google. The Darkweb can be accessed by VPN servers and by using special search engines such as Tor.

DeFi

Adopted acronym for Decentralized Finance.

Deflation

Reduction in value and prices in the economy, based on the relation between demand and supply.

Delegated

A type of network structure operating by segmentation of data flow. A delegated network structure is based on authoritative access to data silos.

DEX

A Decentralized Exchange. The terminology used to quickly address and exchange, which is decentralized.

Difficulty (Block difficulty)

A type of measure used for calculating the capacity of computational power needed to resolve the hash on the block. Block difficulty is set up for every cryptocurrency network, determining the time needed to generate a new block. Bitcoin has a block time of 10 minutes, adjusted at every 2,016 blocks.

DLT

Abbreviation for Distributed Ledger Technology. A digital system where transactions of assets are being recorded on multiple locations through distribution of data.

Double Spending

A type of malicious attack that includes subversion of the network’s hashrate that enables off-ledger mining and double spending of the same currency. Exchange platforms are usually targeted.

DTM

Abbreviation for Digital Tokens and Money, or Decentralized Tokens and Money. A modern term used to describe the sphere of cryptocurrency, blockchain technology and digital finance.

E

ERC-20

Abbreviation for Ethereum Request for Comments-20. The most popular format for Token protocol used on the Ethereum blockchain, otherwise known as a Utility token. The primary purpose of these tokens is accessing DAPPs.

ERC-223

An updated version of the ERC-20 token protocol, created with additional modules for interaction of assets within an internal ecosystem. The protocol prevents unsupported tokens or cryptocurrency from being sent to addresses specified for other types of digital assets. The ERC-223 protocol is designed to enable token transfers on the Ethereum network, also preventing the loss of funds through unhandled transactions.

ERC-721

A type of token protocol related to token collectibles that can be found in decentralized applications on the Ethereum network, such as Crypto-Kitties. Each token built in accordance with the ERC-721 protocol represents a non-fungible asset that is at the same time unique. ERC-721 tokens can be described as rare and unique assets built for a specific purpose that matches utilizing Dapps.

ERC-827

A type of token protocol created by Ethereum developers to perform more than just transacting value. ERC-827 is one of the latest creations on the Ethereum blockchain and is designed to address some shortcomings present in the ERC-20 token protocol. One of the roles of the ERC-827 protocol is to provide improvements in domain of execution of calls in transactions and approvals.

Escrow

An intermediary account or a party represented as a mediator between two different parties regarding any type of transfer in order to provide a warranty for compliance.

F

Faucet

Websites that practice cryptocurrency giveaways in micro amounts in return for clicking on a Captcha or visiting the website.

Federated Network

A form of network architecture with a goal to share resources between multiple independent networks that are linked in order to reduce costs, share resources between these networks and optimize the way the network is functioning.

FIAT (Currency)

Political denomination of monetary value

Flappening

A term used for describing one cryptocurrency taking over a rank of another cryptocurrency by market capitalization. The term was first used when Litecoin (LTC) surpassed Bitcoin Cash (BCH) by market capitalization.

FOMO

Abbreviation for Fear of Missing Out. FOMO is usually the first factor that drives major bull runs in the cryptocurrency market, which is the time when investors are able to collect more profits due to skyrocketing prices of digital assets.

Fork

Splitting of a cryptocurrency network. There are two types of forks, Soft Fork and Hard Fork. A Soft Fork involves updating the network to fit a new set of rules without resulting in minting a new cryptocurrency, whereas a Hard Fork usually involves the creation of a new cryptocurrency through network splitting.

FUD

Abbreviation for Fear Uncertainty and Doubt. The term is used to describe unsettling times that involve fearing that something bad will happen in the future. Cryptocurrency news are often filled with FUD information, for example: Bitcoin was proclaimed “dead” several times over the last decade.

G

GAS

Universal term for the price value needed to complete a transaction. For instance, Ethereum uses GAS to power up transactions for ETH and Ethereum-based tokens. The amount of GAS units determined the speed of transaction.

Genesis Block

The “baby block.” The first block ever to be created on the Bitcoin blockchain. Other cryptocurrency networks use the term to describe the beginning of their native chains.

GPU

Abbreviation for Graphics Processing Unit. A hardware device used for processing graphics, but also for mining of cryptocurrency in order to resolve hashing processes on which the mining mechanism is based.

H

Halving

The process of decreasing rewards for mining on a blockchain network. Bitcoin is being halved every four years, starting from a 50 BTC reward for mining. The first time Bitcoin was halved was in 2012, when the mining reward was reduced to 25 BTC. The halving of Bitcoin mining rewards continues.

Hard Fork

A fundamental change on a blockchain network forming an updated or radically changed blockchain environment. A hard fork usually involves changing protocols and consensus mechanisms and often results in creating a new cryptocurrency built on an old set of rules that existed on the chain before the upgrade through a hard fork. One of the most famous hard forks is Ethereum Classic (ETC), derived from Ethereum (ETH) after their upgrade as a result from a horrific DAO fault.

Hash

A conversion function created by using algorithms, while operating with letters and symbols through input in order to provide an encrypted output. A hash is essential for blockchain mechanisms.

Hash Rate

A measurement unit referring to the processing power of blockchain-based networks.

HODL

A contemporary term created out of a misspelled version of the word HOLD. The term is now used to describe action of holding (HODLing) cryptocurrency without selling it or for selling it at its peak price for a given period.

I

ICO

Abbreviation for Initial Coin Offering. AN ICO is a crowdfunding mechanism similar to an Initial Public Offers (IPO), but conducted in the spirit of decentralization. Unlike the case with IPOs that have major financial companies as underwriters and mediators during the crowdfunding process, ICOs are issued through a platform or exchange market with no third parties involved.

IEO

Abbreviation for Initial Exchange Offering. Much like ICO it serves the purpose of raising funds in a simple and easy manner with technical support of blockchain technology. The main difference with ICO is that IEO is offered through a cryptocurrency exchange platform.

Immutable

Immutability is one of the core values of blockchain-based ecosystems, including decentralization and transparency. Immutable in terms of blockchain networks means that original creations of data cannot be meddled with or altered. Regular data structures enable users to read, delete, update and create data, while blockchain-based networks only allow for creating and reading data formats.

Inflation

Increased prices of goods that indicate that a government’s currency is going through depreciation due to negative factors in the economy.

Inputs

Inputs in cryptocurrency represent channels for making transactions. Once a transaction is made, funds can’t be used in outputs. Each output is created from one or more inputs.

J

JOMO

Abbreviation for Joy of Missing Out. JOMO is no-coiners answer to FOMO and in contrary to fear of missing out, no-coiners joyfully celebrate that they are not involved in any cryptocurrencies or ICOs.

K

KYC

Acronym for Know Your Customer. KYC is a legal framework consisting of a set of rules so that governments can obtain information and data from users such as personal ID and trading cryptocurrency.

L

Lightning Network

Lightning network is layer 2 of blockchain-based cryptocurrency (e.g. Bitcoin). It is a payment protocol envisioned to make micro-payments with bitcoin faster and more scalable. By taking transactions from mainnet it is also expected to decongest bitcoin and reduce associated transaction fees.

Liquidity

Describes to what extent certain cryptocurrency can be quickly bought or sold without causing greater fluctuations of the asset on the market.

Listing

Term mostly used for coins and tokens, also exchanges that wish to be listed on a specific site.

M

Market Cap

Also, Market Capitalization referring to the total dollar market value of the cryptocurrencies outstanding coins/tokens.

mBTC

A Bitcoin metric used for representing a thousandth part of one Bitcoin (BTC). mBTC is also known as millibitcoin.

MemPool

A digital storage for yet unprocessed transactions or data. A place where all unprocessed transactions are stored.

Merged Mining

A type of mining that includes dividing a single source of computational power to multiple sources of mineable cryptocurrency, which are consequently mined simultaneously.

MicroTransaction

Usually referring to funds below 1 USD. A small transaction to the extent of representing an unprofitable sum for blockchain validators.

Miner

Node participants who are working on validating transactions on the blockchain by solving complex mathematical equations, while getting rewards in return for securing the network.

Mining

A process where nodes are competing to solve complex mathematical equations in order to validate and confirm transactions on the blockchain. Miners get rewards for each resolved equation.

Mining Pool

A group or collective of miners with combined computational power for more efficient and more competitive mining, equally distributing mining rewards among participants.

Minting

Creating a new cryptocurrency or a token in order to incentivize network participants. Minting can also refer to the creation of new currencies as a product of Hard Forking.

Mooning

An expression used to describe a positive and radical change in the price. A verb to describe price spiking in the cryptocurrency market. The expression, “We are going to the moon,” or “(Some coin) is going to the moon!” is commonly seen among crypto communities.

Mutable

Used to describe any type of assets, network or digital environment as susceptible to change, changeable and editable. Mutability is the opposite of blockchain-based networks’ architecture and mechanisms that are otherwise characteristic to decentralized systems (Refer to Immutability under “I” in the dictionary).

N

Node

A device (computer) used to connect a cryptocurrency ecosystem, creating a network and providing strength for a blockchain-based environment through resilience

Nonce

A single unit/a number showing parameters used for hashing and mining algorithms.

O

Off Chain Transactions

Transactions that are made outside the native cryptocurrency network, usually in order to reduce traffic clusters when networks are overcrowded and transacting traffic is increased.

Open Source

Any type of software, including blockchain-based environments with decentralized authority, that is free and allows users and participants to make and propose changes to the software/network. Github is one of the favorite open source networks.

Orphaned Block

A part of a blockchain network and a valid block which is abandoned and unused due to forking the network and creating updates. Orphaned Blocks later become an actively used part of a blockchain network.

Output

An essential part of the cryptocurrency transaction mechanism. Outputs contain all necessary information on transactions, leading the final balance to inputs.

P

P2P (Peer-to-Peer)

Distribution and sharing of a data structure where a point of failure doesn’t exist around the participant.

Paper Wallet

A printed, physical storage for cryptocurrency. Paper wallets are otherwise known as cold storage, having the private keys printed out for physical safekeeping.

PreMining

A term for the first block on a blockchain network to be created, referring to the Genesis Block, which is when a blockchain network is “born.” Bitcoin started out at 1% within its premining state, but the majority of cryptocurrency networks start at a higher percentage with a part of private keys and crypto units already in the ownership of dev teams.

Private Key

A proof of ownership and one of the two keys needed for public cryptographic interactions. A private key unlocks access to a personal digital wallet and is unique for every wallet address. Losing the private key will most definitely result in losing access to your cryptocurrency funds.

Public key

A key shared with the public in order to receive funds to the given address related to the public key. A public key is cryptographically defined, so information can be accessed only with a private key matching the address.

Q

QR code

Abbreviation for Quick Response code. API representation through pictography that can be scanned in order to gain access or unlock a program or action related to the scanned QR code.

R

REKT

A phrase created by cryptocurrency enthusiasts to address beginner traders who are failing in the market. The term is read as “wrecked.”

Remittance

A certain amount of funds sent cross-border to represent a gift or compensation.

ROI

Abbreviation for Return On Investment. ROI is a measure to evaluate efficiency of an investment. To know how your investment is performing calculate ROI using one of the equations:
ROI= Cost of Investment/Net Return on Investment ×100%
ROI= Cost of Investment/Final Value of Investment − Initial Value of Investment ×100%

S

Satoshi

The smallest unit of Bitcoin, representing a micro unit indicating 0.00000001 of a Bitcoin.

Satoshi Nakamoto

Pseudonym for Bitcoin creator/creators. A person or an entity that released Bitcoin, blockchain and DLT for utilization of wide masses.

Scalability

The ability of blockchain-based platforms to scale and support increasing traffic without having issues that will result in network failure. Scalability is also one of the key values of third-generation cryptocurrencies.

Scamcoin/Shitcoin

Adopted term that describes a cryptocurrency project that is actually a scam or set to fail with no value to offer.

Script

A hashing process created for implementation into Proof-of-Work cryptocurrency networks. Scripts are working on modifying protocols to match determined consensus parameters.

SEC

Abbreviation for Securities & Exchange Commission. The US federal organization tasked to create and proclaim legal frameworks within the financial sector, which includes cryptocurrency trading.

Seed

A deterministic system’s private key based on digital randomness. The first seed in Bitcoin’s genesis block can be mathematically identified.

SegWit

Acronym for Segregated Witness. A soft fork update to Bitcoin code, enabling more transactions on the network.

Shill

Unsuitable propaganda conducted by cryptocurrency enthusiasts where a certain cryptocurrency project is being marketed in an unsolicited way.

Side Chains

A part of the blockchain-based ecosystem created to enable two-way ramping. Side chains are connected to the Motherchain, creating a network.

Signature

Otherwise known as digital or cryptographic signature. Signature in blockchain is used to represent a digital counterpart to a human signature in blockchain-based digital environments.

Signature (Digital Signature)

A proof of digital ownership powered by a mathematical process that is equally efficient to a biometric fingerprint signature.

Smart Contract

Digital agreements based on the blockchain and created under a specific set of rules that exclude external intervention. Smart contracts are created to represent a digital blockchain-based form of real-life physical contracts.

Soft Fork

An update to a network protocol where the old version of the network is still available, as nodes are not forced to accept updates.

Spoofing

A malicious attack typically targeting centralized networks that need a form of authorization. The attack is set to subvert communication systems, targeting privacy protocols and security mechanisms by disguising as friendly entities.

SPV

Abbreviation for Simplified Payment Verification. SPV is used to enable mobile users to make transactions without having a copy of an entire blockchain ecosystem.

Staker

A collector of staking rewards and a network participant who locks some of their cryptocurrencies or tokens in order to verify on-chain transactions and collect staking rewards.

Stale Block

A block that can’t reward miners as it has already been solved and confirmed.

STO

Abbreviation for Security Token Offer. The government bodies involved in regulating STOs have come to an agreement that security tokens should be treated in accordance with the Law of the Land.

T

Testnet

An introduction phase that leads to Mainnet development, representing a blockchain-based ecosystem where a developer can work in an ecosystem testing the code and experimenting.

Timestamp

Time measurement used as a proof that something happened on the network.

Token Protocol/Token

A form of a programming framework in decentralized ecosystems where tokens are represented as frameworks that can grant access or interaction on the network in accordance with predetermined rules of the mother platform.

Tokenomics

Acronym created from combining the words Token and Economics. The term is used to express the relation between token metrics and token roles inside a specific ecosystem.

TOR

Abbreviation for The Onion Router. A web tool used for accessing the Darkweb (darknet) with the ability to remove censorship present in commonly used browsers such as Google.

Total Supply

A maximum supply of cryptocurrency units. The total number of issued cryptocurrency units.

TPS

Abbreviation for Transactions Per Second. The term describes how many transactions per second a cryptocurrency network able to withstand in its capacity. TPS can be increased with network scaling.

Trade Volume

A measurement that shows how many times a given cryptocurrency or a token has been bought and sold within a specified period of time. Trading volumes are usually recorded within a 24-hour period in trading metrics.

Trading Pair

An available pair for trading between two cryptocurrencies, for instance BTC/ETH, LTC/BTC. XRP/BCH, etc.

Transaction Fee

A certain amount of funds that network users are paying for having their transactions handled and verified. Transaction fees are due to increase the integrity of a cryptocurrency network.

Trustless

A form of network architecture where the need to rely on centralized systems is minimized to the lowest possible extent. In trustless ecosystems, network participants are using distributed ledger technology to diminish the need for checking whether other participants are able to deliver their part of a digital agreement.

Two-Factor Authentication (2FA)

A security method that enables users to have two different factors of authentication, that way having a way to protect users’ privacy as well as enable users to gain access to inclusive sources.

Tx

A short version of the word “transaction.”

U

Unspendable Address

A type of a one-way address where cryptocurrency can be sent to but not sent from or spent. Unspendable addresses are used for coin and token burns.

Utility Token

A type of token that is created for a specific utility, which is to grant access to applications and systems. Utility tokens have a defined nature in terms of token purpose and utilization.

UTXO

Abbreviation for Unspent Transaction Output. Unspent amounts of cryptocurrency, existing in form of data on the blockchain.

UX / UI (User Experience/User Interface)

Abbreviation used to measure user satisfaction in terms of how easily a user can handle the interface of an underlying technology.

V

Vanity Address

A cryptocurrency network address that contains customized strings of symbols and letters, representing the equivalent of license plates.

Volatility

Volatility is a measurement used for tracking changes in the price of an asset. Cryptocurrency assets have a high level of volatility as the cryptocurrency market is not yet mature, which means that price fluctuations are very common.

W

Wallet

A cryptocurrency software storage created to be user friendly and to safekeep cryptocurrency units. There are several types of cryptocurrency wallets: web wallet, mobile wallet, hardware wallet, software wallet and paper wallet.

Weak Hands

A term commonly used within cryptocurrency communities. The term is used to describe mostly inexperienced traders who are not doing well with cryptocurrency volatility, which leads to selling their assets too soon and falling victims to the highly volatile market of digital assets.

Whale

A term used in crypto communities to describe crypto addresses or high-value transactions of individuals whose trading decisions could notably affect the price of given cryptocurrency, as whales have many assets that are of high monetary value.

White Paper

A whitepaper is equal to a business plan/prospectus that IPOs have. ICOs are issuing whitepapers to inform the public and potential investors on project’s details.

Whitelist

The list of investors who are registering for pre-sale of ICOs.

Y

YTD

Abbreviation for Year to Date.

Z

Zero Confirmation Transaction

An alternative term for describing a transaction that hasn’t been confirmed yet.

Zero Confirmation transaction/ Unconfirmed transaction

A status to describe a type of transaction that has been sent to the network nodes but has not yet become a part of a block.

ZeroCoin

A project set to improve privacy, initially targeting Bitcoin code.

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Author: Tokens Team
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