Cryptocurrency Glossary

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

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. 

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.

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

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

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

1 Bit is equal to 1/1,000,000 of a Bitcoin. Not to be confused with the computer science definition in which 1 bit equals 0.125 bytes.

A digital, distributed ledger which contains data for all the transactions that have ever taken place using a given cryptocurrency.

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

The unofficial website of Bitcoin Core.

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 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.

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

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 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.

A transaction that combines multiple transactions into one for increased efficiency and decreased fees.

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

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

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

Optimistic about the future of a cryptocurrency’s price.

A new version of the Bitcoin Protocol developed using the Javascript programming language.

A trader or speculator who believes cryptocurrency prices will rise.

A short drop in a cryptocurrency’s price that makes investors think the price will continue falling. Instead, the price rises significantly following the drop, fooling the “bears.”  

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

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.

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

Free movement of coins between individuals.

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

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

Digital currency that uses cryptography. Bitcoin & Altcoins are all types of cryptocurrency. 

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.

A trade on a popular cryptocurrency exchange.

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 cryptocurrency that relies solely on its own technology to function.

An aspect of the Darkcoin crpytocurrency that allows users to make anonymous transactions.

A metric for measuring bitcoin inactivity. Each day a Bitcoin remains unspent is another day added to its total number of Days Destroyed.

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.

The act of selling cryptocurrency.

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

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

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

A group of businesses and organizations working together to build a globally-accepted identity verification system. The DIF uses blockchain technology to create a system that doesn't require a centralized authority for purposes of identification.

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

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

Decentralized Autonomous Organization. An organization governed by smart contracts founded to allocate funds to cryptocurrency projects.

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

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

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

Software for storing cryptocurrency that offers decreased risk of losing funds because of its ability to generate unlimited addresses from a single starting point, or "seed."

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.

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

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.

An amount of coins paid to users for participating in PoS consensus.

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 does not make it incompatible with the original version.

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

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

A change in the original code of a software.

A CNBC show on which cryptocurrencies are frequently discussed.  

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.

An open-source database for developers to create and share computer coding with a large community.

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

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).

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

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

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

Created each time coins are sent to an address.

When an asset (i.e. coin) cannot be easily bought or sold due to a lack of buyers or sellers in a market. If there are only a handful of buyers or sellers the price may be substantially higher (due to few sellers charging a premium) or substantially lower (due to a few buyers demanding discounts).

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.

A cryptocurrency forked from Bitcoin known primarily for its decreased block time, which (theoretically) allows for faster transactions.

The measure of how quickly an asset can be exchanged for usable currency.

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

A limit order is an order where the price is determined by the trader. The trade is only executed if the market price reaches the trader's limit price or better.

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.

An individual that volunteers computing power to verify transactions on a blockchain in exchange for block rewards.

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

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 process of allowing two different cryptocurrencies using the same consensus algorithm to be mined simultaneously. 

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 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 popular online wallet that supports Ether and most ERC20 tokens.

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.

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

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

An arbitrary number that is used only once in cryptography to make replay attacks impossible.

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

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

Over The Counter Exchange, also known as Off-Exchange Trading. Trades that occur between two parties rather than using a centralized exchange.

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

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.

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.

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 process of storing information that cannot be changed or deleted.

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

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.

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

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.

Freedom from surveillance.

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

The consensus algorithm introduced by Bitcoin. PoW requires miners to compete against each other to add new block and earn rewards.

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.

Permissionless refers to public blockchains (like Bitcoin) - anyone can generate an address and transact BTC.

A cryptocurrency's main blockchain which connects its sidechains or subchains.

A rapid rise in a cryptocurrency’s price.

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.

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

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

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.

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

The process by which a full database is split into smaller databases called shards. Sharding helps with the scalability of cryptocurrencies.

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

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.

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 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.

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.

A programming language used to create smart contracts.

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

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

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

An altcoin that is marketed as technology with potential, but is really just sold to make money with no promise of a future use case.

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

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

Price-stable cryptocurrencies that achieve stability through pegging their value to another asset, like the US dollar.

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.

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

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

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.

TradFi is short for Traditional Finance. It refers to traditional retail, commercial, and investment banks, and FinTechs.

An individual who buys and sells cryptocurrency.

An identical version of a protocol that uses fake money to discover bugs without the consequences such bugs would have on a Mainnet protocol.

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.

In the cryptocurrency sphere a Tether is a type of coin. This coin is ‘tethered’ or paired 1-to-1 with the U.S. Dollar.

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

An amount of value that must be paid to transfer value on a blockchain.

A measure of how frequently and how heavily a cryptocurrency is bought and/or sold during a given time period. 

Test

The practice of creating digital assets that represent real-world physical assets.

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.

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.

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

Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Zk-SNARKs is a technology which allows cryptocurrencies to shield transaction information from uninvolved parties.

Two Factor Authentication. A protective measure that uses one-time passwords to prevent keyloggers from gaining unauthorized access to accounts.

A formula that uses data to make predictions about how financially secure businesses are.