Understanding Cryptocurrency Terminologies: Top Terms You Need To Know
To succeed in any ecosystem, one has to be acquainted with some terminologies used in that ecosystem - if not all, at least the top terms or frequently used terms. This also applies to cryptocurrencies. So I decided to do some research and bring together some top terms you may need to know as someone in the cryptocurrency space. This is specially done for the "Steemit Family".
Please feel free to add more to the list using the comment sections... Thanks . I will be listing them in no particular order. Or maybe my own order... lol!
- Bitcoin: is the world's first cryptocurrency, a form of electronic cash sent peer-to-peer without the need for a financial intermediary. Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open source in 2009.
- Exchange: A websites where you can buy and sell cryptocurrencies. Such as Binance, Changelly, Coinbase e.t.c.
- Address: A string of alphanumeric characters that are used to send or receive transactions on the cryptocurrency network.
- Blockchain: is an incorruptible digital ledger that is programmed to record almost every transaction on a non-centralized network .
- Altcoin: This simply means "Alternative Coin". This is a term used to refer to other cryptocurrencies other than Bitcoin. E.g Steem
- Blocks: are the files where unalterable data related to the network is permanently stored.
- Tokens: Refers to projects built on the Ethereum network that have raised money via issuing their own currency. E.g GNT (Golem), REP (Augur), BAT (Basic Attention Token) .
- FOMO: This simply means " Fear Of Missing Out". The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket or rise.
- FUD: This Simply Means " Fear, Uncertainty, and Doubt". This is a baseless negativity spread intentionally by someone that wants the price of something to drop. A FUDster is someone that is spreading FUD.
- Transaction ID: Transaction Identity. Another alphanumeric string through which you can publicly see the transfer details (amount sent, sending/receiving addresses, as well as the date of transfer) on a blockchain.
- Block Height: Block height is the number of blocks preceding the genesis block (first block) on the chain. A genesis block will always have a height of zero because nothing precedes it. It’s a metric used to create a bearing on time in the programming world and other areas.
- Fork: A fork is the permanent divergence of an alternative operating version of the current blockchain. Forks come into existence when a 51% attack occurs, a bug in the program, or more commonly a new set of consensus rules come into existence. These happen when a development team creates and inserts notably substantial changes into the system. The successful fork is decided by the height of their blocks.
- Pump and Dump: Massive buying and selling of cryptocurrencies when the price is to one’s benefit.
- Confirmation: Confirmation simply means that a blockchain transaction has been verified by the network and cannot be reversed. The more confirmations a transaction has the harder it is for it to be manipulated.
- Cryptocurrency: A cryptocurrency is a digital currency that is used as a medium of exchange and uses cryptography for security. They are not in physical form and are never issued by central governments. Examples include, Bitcoin, Ethereum, Steem, SBD(Steem Backed Dollars) and many more.
- Smart Contract: This is a two way smart contract is an unalterable agreement stored on the blockchain that has specific logic operations similar to a real world contract. Once signed, it can never be altered.
- Market Cap: The total value held in a cryptocurrency. It is calculated by multiplying the total supply of coins by the current price of an individual unit. Examples of websites for checking Market caps are Coinmarketcap , Currentcoinprices .
The list goes on and on and on... Please keep adding to the list via the comment section. Thank You All!
