Useful terms/phrases in cryptocurrency
Hello fellow steemians!
I saw a lot of questions when it comes to words like "FUD","FOMO",etc so I thought it would be useful to explain them
- FOMO = Fear of missing out
- FUD=Fear, uncertainty and doubt
- Altcoin =Bitcoin alternative(Many of the altcoins are built up on the basic framework provided by Bitcoin)
- ASIC = Application Specific Integrated Circuit(It's a chip specially created to execute one task,you usually hear about ASIC's when it comes to mining)
- Mining= Discovering and solving blocks along the blockchain.You will get rewarded for doing so.(It's a longer topic,I might speak about mining in another post)
- PoW=Proof of Work
- PoS=Proof of Stake
- Address=It usually refers to a long alphanumeric string used to receive,send or hold your coins.
- Blockchain=A data system that allows for the creation of a digital ledger of transactions.The blockchain is comprised of “blocks” and is constantly growing
- Block=Transaction data is permanently recorded in files called blocks.Blocks are basically pages from the "ledger"
- Ledger=A ledger is the principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.(source Wikipedia)
- Hot Wallet=Any kind of online wallet
- Cold Wallet =A wallet that is stored offline
- Block Height=The number of blocks preceding the first block(genesis block)
- Block Reward=A reward for hashing, or solving the mathematical equation related to a block.
- Hashrate=The speed at which the computer is completing a calculation
- P2P=Peer to Peer
- Private Key = A key used to sign a message.It's very important to keep your private keys safe.If you lose/post them it's the equivalent of losing your wallet in real life
- Public Key = A key used to check if the signature is correct
- Smart contract = An unalterable agreement stored on the blockchain. Once signed it can never be altered
- Hardware Wallet = A hardware storage device(Trezor,Ledger Wallet)
- HODL=An enthusiastic misspelling of "hold".Often used when prices drop significantly (Just hold your coins noob)
- LAMBO=An inside joke in the crypto sphere.We use to ask the color of your next Lamborghini(meaning that you'll be rich one day)
In PoW(Proof of Work) you must offer computational power in order to get rewarded,while in PoS(Proof of Stake) you need to "show ownership" of a certain amount of coins
Have a nice and green day!
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