Cryptocurrency Glossary

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

A term used to describe coins that do not require expensive equipment for mining. If a coin is ASIC-resistant, its mining is thought to be more fair and decentralized than coins that are not ASIC-resistant.

A famous advocate of Bitcoin who has given speeches and presentations about Bitcoin all over the world.

A unique, alphanumeric identifier used as destination for transferring cryptocurrencies. 

The exchange of one coin or token for another coin or token that takes place without the need for a third party. Atomic Swaps rely on smart contracts to ensure both parties hold up their end of the agreement.

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.

Highly specialized computing machines that are far more efficient for mining than CPUs and GPUs. Jihan Wu (a Chinese businessman) is responsible for creating and selling many ASIC Miners.

A market in which most (or all) prices are rising.

Websites (available for most cryptocurrencies) that allow users to search an address or transaction ID to view its details.

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 market in which most (or all) prices are falling.

The time it takes to mine a new block.

Someone who uses Bitcoin regularly or is heavily involved in its technology.

A blockchain scaling solution in which every user account has its own blockchain. Block lattices reduce blockchain bloat by storing transaction data separately from a cryptocurrency's main blockchain.

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.

A short rise in a cryptocurrency’s price that makes investors think the price will continue to rise. Instead, the price falls significantly following the rise, fooling the “bulls.”  

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.

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 payment given to a miner for securing a blockchain that uses POW (Proof-of-Work) consensus

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

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."

Optimistic about the future of a cryptocurrency’s price.

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

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 trader or speculator who believes cryptocurrency prices will rise.

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

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.

Free movement of coins between individuals.

In the cryptocurrency sphere this term refers to storing cryptocurrency in a location that is offline and thus inaccessible by anyone on the internet.

Addresses created to hold the remaining balance when users spend less than a full input. Mostly used in hierarchical deterministic wallets that can create an unlimited number of addresses.

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

Code making, breaking and studying.

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

An offline wallet for holding cryptocurrencies. Considered more secure than hot wallets.

Verifications of consensus by miners and/or nodes. After an individual sends payment on a blockchain, confirmations are required before the recipient can accept payment. 

A general agreement among participants using and mining a cryptocurrency.

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

An application created to run on a user's PC.

Parts of the Internet that are not accessible through ordinary means, like search engines.

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

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.

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.

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

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.

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 tax on cryptocurrency holdings that encourages spending coins because they are constantly being destroyed.

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

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

A measure of how much hashing power (computing power) is required to find the next block on a blockchain. Difficulty increases over time on blockchains.

An organization that operates to earn profits for its shareholders (coin holders) by creating value for the free market.

DAA. A collection or portfolio of assorted cryptocurrencies. For example, one Digital Asset Array could contain BTC, ETH, and DASH.

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

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 predominant standard for creating smart contracts on the Ethereum blockchain. Others may include ERC 721, ERC888, and more

An extremely secure messaging functionality offered by QRL.

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

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 percentage of block reward that is paid to the founders of a cryptocurrency rather than to its miners. Zcash is a cryptocurrency with a Founders’ Reward.

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.

Financial technology (Fintech) is used to describe new technologies that seek to improve the use and delivery of financial services.

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

A change in the original code of a software.

Fear of Missing Out. Investors with FOMO buy cryptocurrency (emotionally rather than logically) for fear of missing out on profits.

Fear Uncertainty and Doubt. The emotional (rather than logical) belief that cryptocurrency prices will fall.

APR stands for Annual Percentage Rate. It's the interest rate charged during a whole year. For example: borrow $1,000 at 10% APR means at the end of the year you'll pay back $1,100. The extra $100 may be split into 12 payments, once per month, if that is how the creditor asks for them.

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.

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

The power of a mining rig. Similar in concept to the Horse Power of a vehicle.

Output emitted from an algorithm for maintaining consensus on a blockchain.

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.

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.

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%.

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

The process of increasing a cryptocurrency's supply, which usually drives its price down.

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

A request for communication from one node to another node.

Initial Coin Offering. An event in which a cryptocurrency project “goes public,” selling early coins in exchange for funds.

CEO of Bitmain, the largest distributor of cryptocurrency mining machines.

A popular programming language.

Know Your Customer. Information gathered by cryptocurrency exchanges in compliance with AML (Anti Money Laundering) laws.

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

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.

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

A third party that enables anonymous transactions by grouping payments together, obscuring their sources.

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.

Software that allows individuals to store their cryptocurrencies on handheld devices.

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

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.

The practice of borrowing money to buy and sell assets.

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

A mining rig is a computer used for mining cryptocurrencies. The rig might be a dedicated computer or it could be a computer that fills other needs too.

A very small payment made possible with digital currencies.

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

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

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

A series of words that can be used to recover an account or wallet.

A cryptocurrency that is very popular on the Darknet because it is considered to be more anonymous than Bitcoin and similar coins.

A cryptocurrency that allows data (and transactions) to be written onto its blockchain.

Digital agreements between users on NEO's platform that are carried out automatically when their terms are met.

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

A popular framework for JavaScript code to be written in. 

A third-party entity capable of transmitting reliable information to a blockchain so that smart-contracts can be executed.

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

The initiator of communication on a cryptocurrency network.

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

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-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 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).

Outputs of an algorithm that can be examined and verified. This term is commonly used in cryptocurrency gambling.

PoI stands for Proof-of-Importance. It is a new consensus algorithm that requires users to stake currency to participate in the consensus. Compared to PoS, it adds importance to staking. Thus, it takes into account one’s involvement in the network. PoI was introduced by NEM.

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

A cryptocurrency that uses both PoW and PoS in its consensus mechanism to offer increased 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.

Proof of Stake and Trust. A consensus mechanism used by Waltonchain that relies on token holders (nodes) to verify transactions while retaining information about nodes' past performance to give higher rewards to the most reliable nodes.

Pseudonymity is an almost anonymous state in which users have a unique identifier that is different from their real name.

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.

An address that individuals share with others to receive cryptocurrency.  

A physical piece of paper containing a private key, a public key, and often corresponding QR codes.

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

Decentralized networks in which individuals interact with each other directly.

QRTs. Customizable tokens that can be created using Quantum Resistant Ledger. QRTs are resistant to attacks from quantum computing.

A code containing information that can be read by a device with a camera.

A site that aggregates a nearly endless range of topics. Subreddits exist within Reddit to focus on specific topics.

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.

An individual who predicts future prices of assets and makes bets based on their predictions.

A financial instrument (stock, bond, etc) that has monetary value and can be bought, sold, and traded.

Typically a person posing as a legitimate user of a product but who is, in fact, being paid or otherwise compensated to promote said product.

A derogatory term used to describe altcoins that are based on faulty technology or have little promise for the future.

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.

Secure Hash Algorithm 256. An algorithm used by some Proof of Work consensus mechanisms (most notably, Bitcoin's).

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

Segregated Witnesses. A protocol implemented by Bitcoin to increase transaction speed. SegWit allows more transactions to be written into a single block on a blockchain.

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 measure of how easily a cryptocurrency will be able to handle more users and increased transactions.

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

A feature of PIVX that allows users to complete transactions instantly without needing to wait for confirmations.

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.

Smart Contract. An agreement between two parties that carries itself out once its terms are met.

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.

An individual who believes that the blocks in Bitcoin should be kept small so that anyone can run a full node.  

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.

The minimum amount of funds that a cryptocurrency's founders wish to raise in an ICO. If an ICO does not meet its soft cap, it will often be canceled until a later date.

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.

Any cryptocurrency pegged to a stable asset for the purpose of reducing price volatility.

A measure that describes how many coins of a given cryptocurrency can exist (after all mining is completed, if applicable).

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

Transmission Control Protocol/Internet Protocol. A set of protocols that allow multiple computers to communicate.

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). 

Test

Software preprogrammed to buy, sell, short, long or execute other trading strategies and commands when the owner is absent. Trading while asleep or away from the keyboard.

Transactions per second. A measure which describes how fast a cryptocurrency can handle its users' transactions.

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

Software that changes an environment irreversibly after its release. For example, once Bitcoin’s code was launched and distributed amongst many machines, it virtually could not be stopped.

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

User-Issued Assets, Tokens that can be created on the BitShares network.

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

Coins which haven’t ever been spent. Virgin coins were mined and left alone.

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

The filename which stores public and private keys for a full node.

A technical document that outlines a project’s features, technology, and vision.

An electronic transaction in which value is sent from one party to another.

eXtensive Business Reporting Language. A language for defining and exchanging financial data that makes extracting useful data from a large body of data easier.

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.

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