Cryptocurrency Glossary

An event in which individuals that hold existing cryptocurrencies (like Bitcoin and Ethereum) are given tokens of a new cryptocurrency.

Wealthy individuals who contribute significant funds (usually over $1,000,000) to emerging projects.

The practice of buying and selling the same coins on different exchanges at the same time to take advantage of price differences.

Artificial Intelligence. As machines advance in intelligence, they are capable of learning from their environments and completing more complex tasks.

Anti-Money Laundering. AML laws and restrictions require exchanges to obtain personal information about their customers and their activities.

All-Time High. The highest price a cryptocurrency has ever reached.

All-Time Low. The lowest price a cryptocurrency has ever reached.

A process for solving a mathematical problem. In blockchains consensus algorithms are used to verify transactions.

Komodo's Decentralized Exchange which connects all of its independent blockchains and allows atomic swaps.

The amount of data that can be stored in one block of a given blockchain. For example, the Block Size limit of Bitcoin is 1MB. Larger block size allows for more transactions per block. Thus, it’s not that transactions are “faster” or “slower”. It’s that transactions may be seemingly faster because the network is handling more transactions at a time.

A free, open-source web browser that aims to provide its users the best possible user experience by blocking trackers, hiding advertisements, respecting user privacy, and even offering a built in tipping mechanism that allows users to reward content creators.

The amount of money one has available to him/her.

A term used to describe cryptocurrency projects that facilitate programmable transactions rather than simply acting as methods to store and transfer value. Projects like Ethereum are known as Blockchain 2.0 contracts because they allow their users to create and execute smart contracts and develop decentralized apps.

The original Bitcoin wallet, considered to be among the safest wallets available.

The first successful hard fork of Bitcoin that allows the protocol to grow and scale by removing its block size limit.

A regretful investor who bought a crypto (or cryptos) believing they would appreciate in value. Instead, the crypto decreased in value and the investor is left "holding bags."

Backtesting is the method of running your trading strategy on historical data to find out how well it would have performed.

A forum of myriad boards where enthusiasts and experts alike can go to discuss various cryptocurrency related topics.

A condition that affects cryptocurrencies when the data stored reaches very large sizes due to increasing numbers of users and transactions. When blockchain bloat gets severe, transaction speed suffers.

A mechanism that destroys an amount of coins or tokens, thereby decreasing the total coin supply of a cryptocurrency. 

The first blockchain-based peer-to-peer protocol that allows its users to store and transfer wealth.

The first blockchain-based network that allows its users to store and transfer wealth.

An individual who believes that increasing Bitcoin’s block size would improve its scalability. Roger Ver is the most notable Big Blocker.

A segment of data recorded on the blockchain that can contain transactions and other information.

A Bitcoin wallet that gives its users an aesthetically pleasing interface while still employing the core Bitcoin protocol.

A tool used to identify moments when an asset's price is relatively high or relatively low to inform trading decisions.

The total number of blocks on a blockchain since the genesis block (first block) was mined.

a high-yield ponzi scheme in the cryptocurrency market, guarantee profits to investors. Customer losses are estimated to have exceeded $1 billion and was shut down in January 2018.

BNB (Binance Coin) is an ERC20 token that lives on the Ethereum blockchain. The token has multiple forms of utility, essentially being the underlying gas that powers the Binance Ecosystem. Most important, it can be used to pay for trading fees on the exchange, obtaining the equivalent of a 50% discount on trades during the first year, 25% during the second year and so on.

Bitcoin’s ticker symbol.

The shorthand form of Cryptocurrency. 

A paper written by Eric Huges that outlines Cypherpunks’ philosophy and vision. This Manifesto was a big influence on many early cryptocurrency enthusiasts.

No longer in production, these were physical coins created by Mike Caldwell that have private Bitcoin keys.

An asset, of any kind, that a lender will accept to secure a loan. If the borrower doesn't pay back the loan -- the lender keeps or sells the asset.

The volume of coins being held and spent at a given time for a given cryptocurrency.

Free movement of coins between individuals.

An aspect of the Bitcoin Core wallet that allows users to specify which coins they wish to spend and which Change Addresses any remaining balance will be sent to.

The first exchange that allowed individuals to buy and sell cryptocurrencies.

The usage of remote servers (rather than personal computers) to store, manage, and process data.

An irreversible list of all transactions that have ever occurred on a platform.

A method of encoding inputs to create unique outputs, especially for creating digital fingerprints.

The act of selling cryptocurrency.

Delegated Proof of Stake. A consensus mechanism that has a blockchain's nodes vote on the correct version of the blockchain. 

A famous problem that occurs when cryptocurrency is spent more than once. Miners and transaction finality ensure that double-spend cannot occur.

A feature which allows KyberNetwork to maintain high levels of liquidity. The DRP keeps reserves of cryptocurrencies and establishes rates of exchange between them, allowing any user to easily trade one crypto for another.

A cryptocurrency that uses the “Doge” meme with a cult-like following.

A consensus mechanism that uses professional nodes to broadcast a version of the blockchain. If two thirds or more of the nodes agree, that block is written onto the chain. 

A network that requires special software (like TOR) to access. Websites on the Darknet are much more difficult to shut down than normal websites. The Darknet was one of the first communities to use cryptocurrencies for transactions.

Software that allows its users the ability to store cryptocurrency on their personal computer.

A list of transactions that exists on every computer that elects to run blockchain software.

Directed Acyclic Graphs. Also referred to as “Tangle.” DAG is an alternative to the “chain of blocks” architecture used in many crypto projects.

Transfers of value that are too small to be sent due to the proportionately high fee incurred. 

A unique, encrypted output that cannot be duplicated. Useful for creating digital identities and confirming authenticity.

Decentralized exchange. A platform (which isn't controlled by any single authority) that allows users to buy and sell cryptocurrencies.

A set of data used to represent an entity on a network or on the Internet.

Dynamic Proof of Work (dPoW) is currently in the early stages of development. Not many new blockchain projects are experimenting with it.

Distributed amongst its users rather than controlled by one group or within one certain area.

Distributed Denial of Service. A means by which a malicious individual shuts down another individual's internet connection by overloading it with requests.

An extremely secure messaging functionality offered by QRL.

A cryptocurrency created by Vitalik Buterin that runs on Ether (ETH). Ethereum was the first blockchain-based technology to make smart contracts and decentralized applications possible.

The native tokens of the Ethereum platform. Required in order to send transactions or execute smart contracts.

Ethereum Virtual Machine. A testing environment on the Ethereum network for executing smart contracts and promoting security.

Transforming data into unrecognizable code that can only be decoded with the exact decryption key.

A change in a cryptocurrency’s software that does not make it incompatible with the original version.

A website that sends users small amounts of cryptocurrency intermittently and make money by advertising other services.

A hypothetical society in which no one is forced to do anything against their wishes and all actions are voluntary.

Paper money issued by governments as default currency. The US Dollar, Japenese Yen, Chinese Yuan, and Euro are all fiat currencies.

A term used to describe the way that cryptocurrencies remove many of the inefficiencies and hassles inherent in alternative methods of transferring payment.

A CNBC show on which cryptocurrencies are frequently discussed.  

The idea that all units in a money supply are exactly equal. Fungibility is considered to be an essential aspect of effective currencies by many economists.

A change in a cryptocurrency’s software that makes it incompatible with the original version. For example, any block size increase in the Bitcoin protocol constitutes a hard fork.

The first block mined on a blockchain.

Graphics Processing Unit. Hardware that can be used for mining some cryptocurrencies.

LTV stands for Loan-to-value. The ratio expresses the amount of a loan compared to the value of an asset. For example: taking a $1,000 loan and putting up $2,000 worth of Bitcoin as collateral = 50% LTV. The loan is worth 50% of the bitcoin collateral securing it.

Someone who does not sell, but holds on to his coins. "HODL"  was originally a typo but it gained the status of a funny backronym: “Hold on for dear life”.

Hashgraph is a consensus alternative to blockchain. It uses a gossip protocol to spread transactions across the network by sending data to randomly chosen neighbors.

The act of protecting an asset from risk. A hedge can protect against losses or even offset against gains.

The number of hashes a miner performs over a given period of time.

An online wallet for storying cryptocurrencies. Considered less secure than cold wallets.

A programming language used to develop several cryptocurrencies (including Cardano and Nanocoin).

The process of intermittently decreasing the block reward given to cryptocurrency miners by 50%.

Initial Public Offering. An event in which a company “goes public,” selling early shares of their business in exchange for funds.

Internet of Things. The system that will digitally connect physical objects, making them identifiable and trackable online.

A request for communication from one node to another node.

Internet Protocol Address. A series of numbers and periods used to identify computers communicating through a network.

Invisible Internet Project. A network layer that facilitates anonymous, censorship-resistant communication between users.

A popular programming language.

A feature of Komodo that offers its users private payments. Jumblr works by exchanging the cryptocurrency being used for payment and mixing it among other cryptos prior to the making an anonymous transaction.

An algorithm used to adjust mining difficulty so that all miners are given a fair chance at earning block rewards.

Purchasing a coin with the expectation to sell it at a higher price sometime in the future for a profit. Basically profiting from the rising price of an asset.

A network layer that functions on top of the Bitcoin blockchain and allows for a huge number of low-fee microtransactions.

A type of exchange used to make it easier for individuals to exchange assets for usable currency.

Cryptocurrency that has had its origins intentionally obscured to hide evidence of illegal activities.

A group of people online who agree to combine their mining rigs into one for more collective mining power. They split rewards evenly based on each person's mining power.

A cryptocurrency exchange led by Mark Karpeles that allegedly lost millions of dollars in user funds.

A popular online wallet that supports Ether and most ERC20 tokens.

The total value of a cryptocurrency. Calculated by multiplying a coin’s price by its total supply.

A trade in which an investor sells their position to repay the lender of a loan.

The version of a protocol that uses real money. A cryptocurrency is generally considered to be “live” after the first Mainnet block (the genesis block) is mined.

A mathematical problem that is solved by participants of a blockchain to verify transactions in exchange for block rewards.

A node (device running the full software of a cryptocurrency) that fulfills more purposes than regular nodes - such as increasing privacy, providing instant transactions, and participating in governance.

An agreement that allows individuals to sell their computing power for the purposes of verifying transactions on a blockchain.

The ability of machines and computers to integrate data and learn from it without being programmed to do so.

The process by which users on a PoS blockchain verify transactions and receive new coins for their participation.

A feature that requires several keys to authorize a single transaction, especially for dividing responsibility among separate parties.

Metamask is a Chrome extension which allows users to store and transact Ethereum and other ERC-20 tokens.

When a blockchain features several levels for scalability and encryption purposes, it can be said to be "Multi-Layered."

A feature that requires several keys to authorize a single transaction, especially for dividing responsibility among separate parties.

The process by which new coins are created as transactions on a network are verified.

A popular framework for JavaScript code to be written in. 

The quality by which cryptocurrencies become more useful as more people use them.

Near-Field Communication. Enables devices located close to each other to transmit data without the need for internet connection.

An individual that trades cryptocurrencies but does not have a high net worth or high salary, and is not elgiible for certain investment opportunities.

A term used to describe software that is made available online so that any individual can view its code and submit improvements.

A grouping of addresses that receive coins in a cryptocurrency transaction.

Cardano's Proof-of-stake algorithm. It is used to randomly pick the next node to produce a block in. Ouroboros divides physical time into epochs, and then slots. Slot leaders have the sole right to produce one block and are chosen from the group of stakeholders.

Transfer of value that takes place outside of a blockchain for reduced fees and quicker transaction time.

PoS. A method of minting new coins and securing a platform by allowing users to stake their coins and receive more coins as a reward. Introduced as an energy efficient alternative to PoW (Proof of Work).

A portion of the total supply of a cryptocurrency reserved for its founders. These funds are often marked as funds to pay developers or fund future ventures, but cryptocurencies with premines are generally viewed as less legitimate and fair those without premines.

Short for Price Down Limit. PDL is a price set by DeFi platforms. If the collateral crypto price decreases below the PDL set , customers' collaterals will be sold.

PoP for short. A consensus mechanism used by DigixDAO to track the movements of physical assets, identify their ownership, and ensure their security.

Proof of Stake. A consensus mechanism in which individuals use their holdings of a cryptocurrency to secure the platform in exchange for rewards.

Private keys are used to spend cryptocurrencies.

Any cryptocurrency that focuses on maintaining private transactions between users. Examples are Dash, ZCash, and Monero.

Proof-of-Importance is a consensus algorithm similar to PoS. Nodes "vest" currency to participate in the creation of blocks. Unlike PoS, Proof-of-Importance quantifies a person’s support of the network. NEM is using Proof-of-Importance.

A situation that occurs when an asset's market value is far higher than it's actual worth, making a sharp drop in price imminent.

Proof of Work. A consensus mechanism for verifying transactions with computing power that creates new coins in the process.

Similar to a password but often longer. Where a password is generally a single word -- a passphrase can be a combination of words.

An address that individuals share with others to receive cryptocurrency.  

A scalability solution for Ethereum that allows more transactions per second by introducing additional blockchains to the main Ethereum blockchain. 

Peer-to-Peer. Refers to networks in which individuals connect to each other rather than a central authority.

Occurs when a cryptocurrency’s price shoots up and then quickly crashes. Pump and dumps are often coordinated manipulations of the market by groups of individuals for profit.

If you are running a full node, a “peer” is some else also running a full node.

A social attack in which a malicious individual masquerades as a trustworthy person in an attempt to fool the victim into giving up personal information (like passwords).

A method of increasing monetary supply (and lowering interest rates) by introducing new money to the market from a central authority.

An advanced form of computing that allows extremely complex problems to be solved very quickly. For cryptocurrency, quantum computing is important because once it is advanced enough, it may be capable of hacking private keys.

RNG refers to 'Random Number Generator," which is the technological device responsible for producing random results, based on a game's established Return to Player (RTP) percentage. It is designed to avoid bias.

A plan that sets goals and deadlines for a project's future development.

Radio Frequency Identification chips. RFID chips are attached to physical objects to make them easier to identify and track.

Often referred to as Bitcoin Jesus, he was the first major Bitcoin and cryptocurrency investor.

A memory-intensive hash function designed discourage hacking attempts by requiring large amounts of RAM. It is used by Litecoin, as an alternative to SHA-256.

Selling, before buying, and intending to repurchase the stock at a lower price to realize the profit from a coin/asset decreasing in value. Basically profiting from the falling price of an asset.

Agreements between two parties that self-execute when their terms are met and automatically cancel when their terms are not met.

A type of password that an individual can use to recover their wallet.

A block that has been worked on by a miner but is not included in the blockchain because another miner successfully completes another block first.

The pseudonym of the original creator(s) of Bitcoin. Also the smallest sub-unit Bitcoin can be divided into: 1 Satoshi = 1/100,000,000 of a Bitcoin.

A platform that functions alongside an existing blockchain protocol, allowing transactions to occur off of the main blockchain. Sidechains can be customized to allow features like faster transaction time and increased anonymity.

A mathematical mechanism for combining a public address with a private address to ensure authenticity and prevent forging.

The act of locking up one's coins or tokens to help verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers earn staking rewards for providing this service.

An online black market on the Darknet best known as a place individuals could buy and sell illegal goods and services. One of the first communities to use Bitcoin as currency.

A blockchain that runs separately from a cryptocurrency's main blockchain, using the native currency to carry out transactions. Subchains help scalability by reducing the amount of data stored on a cryptocurrency's main blockchain, often called the "parent chain."

The Securities and Exchange Commision. A regulatory US agency responsible for the investigation and shut down of several cryptocurrency-related projects.

An indication of support for a feature, often sent out by miners to inform the general public of their opinion.

An alternative to mining rewards. Staking rewards are earned by putting a certain amount of your cryptocurrency up as a 'stake' to confirm transactions. Rewards are given for doing this.

A computer that is far more powerful than an ordianry computer due to its superior performance.

Simplified Payment Verification. Allows wallets to function by letting them connect to local nodes that have full copies of the blockchain rather than requiring download of the full blockchain (like Bitcoin Core).

A feature of the ARK cryptocurrency which allows separate blockchains to connect with each other and communicate.

A popular exchange service created by Eric Voorhees that allows individuals to trade most altcoins anonymously for a small fee.

An individual that volunteers to lock some of their coins or tokens up to verify transactions on a blockchain in exchange for staking rewards.

All processes involved in delivering products and services from their providers to their customers.

The first hardware wallet, created by a Bitcoiner called “Slush.”

The Onion Router. A web browser that allows users anonymous access to darknet sites.

A computing system that can perform a whole set of computational functions is considered “Turing Complete.”

Transaction.

A consensus method that allows users to transact anonymously and requires relatively little electricity. An alternative to PoW (Proof of Work) and PoS (Proof of Stake). 

A cryptocurrency created using another platform (like Ethereum). Tokens operate by using the technology of the platform on which they were created.

A sequence of numbers used to identify the moment in time that a transaction occurred.

Commonly known as 2FA. A measure of security used for protecting accounts. 2FA requires users to have not only a username and a password to login, but an extra piece of information, as well.

A measure that describes the strength of association between an address and earlier transaction addresses.

The ability of a system to be trusted without the need of trusting the individuals with which you are transacting.

Test

A unit of currency consumed in a process. For example, an arcade token that gets used when a game is played or a coin like BNB Binance token, which is used to pay exchange fees.

Unspent transaction output. For example, if an individual receives 1 BTC and holds it, they possess a UTXO.

An adult person without an account at a bank or other financial institution. 

Addresses that hold cryptocurrency. Instead of random alphanumeric strings, however, users with vanity addresses can choose specific words and phrases for their addresses, similar to vanity license plates,

A measure that describes how rapidly an asset tends to fluctuate in price.

A highly respected programmer responsible for writing Ethereum's white paper and co-creating Ethereum's technology.

Software or devices that contain public and private keys for storing cryptocurrencies

A very wealthy individual capable of making large trades.

A list of registered and approved participants in an ICO. Whitelists are used to exclude non-accredited investors in order to better comply with regulations.

The native currency of Monero.

Payment that has been broadcast but is still pending inclusion on a blockchain.

Even millions of dollars worth of security won't protect an individual if someone threatens to hit them with a $5 wrench unless they give up their passwords. The best defense is keeping quiet about your cryptocurrency holdings.

A hypothetical attack in which a malicious individual gains control of more than half of a cryptocurrency’s hashing power and is then able to re-write old blocks, allowing double-spend.