Blockchain glossary: Every crypto phrase you need to know

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Despite all odds, blockchain technology has gone mainstream. Bitcoin has become a household word, and financial institutions around the world invest in cryptocurrencies or allow their clients to do so. Meanwhile, NFT has attracted the patronage of celebrities such as Eminem, Jimmy Fallon and Stephen Curry.

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But despite all the hype, blockchain technology is still extremely mysterious. This is really only understood by talented engineers – many of whom were early adopters of cryptocurrencies like bitcoin and ether – and can be overwhelming to the layman.

Below is an alphabetical glossary of blockchain terms that you might find useful. Note: This is far from a comprehensive list of words and phrases, but it covers the basics.

airdrop

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An airdrop is when a company puts cryptocurrency or NFTs directly into your wallet. Instead of an initial public offering, blockchain services will start a token and AirDrop users who have used that service in the past. This can be done for a number of reasons: it can be pure marketing, as airdrops raise awareness of a token that people can then invest in, or it can be to provide governance tokens, for one. DAO,

A recent example: the Ethereum name service allows users to change their wallet number to a wallet name (such as Nerdshala.eth). In December, IT Launched its own ENS token, transmitting an amount to each person using the service. The more people who used the Ethereum name service, the more tokens they were airdropped – in some cases worth tens of thousands of dollars.

apping

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To “monkey” into something is to invest recklessly in the hope of a short-term profit. Everyone knows scams abound, and careful investors do research to see if a cryptocurrency or NFT project is safe. To “monkey” a project means to increase its value and invest money in it hoping for the best.

Altcoin

Any cryptocurrency It’s not like that Bitcoin or ether, Many are also known as “Rubbish,

bag

Your bags are investments that you hold for a long time, often investments that have performed poorly. “Hopefully Bullrun pumps my bags.”

Binance

world’s largest cryptocurrency Exchanges, where people buy and trade cryptocurrencies. this is Under investigation by the US Department of Justice and the IRS For tax evasion and money laundering.

blockchain

A blockchain is a “distributed database”. In simple words, it is a decentralized ledger that records information in digital “blocks”. Once a block is mined and added to the chain, it cannot be changed, thus blockchains offer public records of immutable data.

There are many different blockchains with varying degrees of decentralization, efficiency, and security. Many people have their own cryptocurrencies — for example, ether is a cryptocurrency built on Ethereum Blockchain.

Bitcoin

bitcoin is the first cryptocurrency, is built on the bitcoin blockchain. It was created in 2009 by a person or group of people under the pseudonym satoshi nakamoto, Only 21 million can ever be mined, approximately of which 18.9 million are already in circulation,

On fire

cryptocurrency Sending them to a wallet is “burnt” that can only receive them and not send them. Burn mechanics are often used to produce a deflation effect: low token In practice, the more scarce the investors have.

buy dip

It implies buying more after the price of an asset has fallen. For example, if the price drops to $10,000, a bitcoin holder can “buy a dip”.

Candle

Cryptocurrency graphs that chart price movement showing green and red bars – green for price ups, red for price going down – are sometimes referred to as “candles”.

doge.png

Green and red candle.

cold wallet

a cryptocurrency Wallet is not connected to the internet. these Safe and less prone to scams,

cross-chain

The ability to send data, tokens or assets from one blockchain to another. It is “different from”multi chain“Services, which are built to work on multiple blockchains.

cryptography

A form of information encryption, where data can be unencrypted with only one key. blockchain using the proof of work Protocols rely on solving incredibly complex cryptography puzzles in order to mine and verify new blocks.

cryptocurrency

A cryptocurrency is a token that is basically a . Is blockchain, Cryptocurrencies are usually mined with each new block mined. For example, each new block of Ethereum The miner receives a reward of two Ether tokens as compensation.

cryptocurrency is a type token, Their naturalness is their defining factor: other tokens are created using platforms and apps built on top of the blockchain, while cryptocurrencies are built into the blockchain’s protocol.

dapps

Short for decentralized apps.

DAO

A decentralized autonomous organization. A DAO is an organization where decisions are made by consensus: all holders of governance token Get votes in the organization’s decisions, with the majority of votes resolved is the DAO’s course of action. Imagine a decentralized investment bank, but its holders instead of fund managers make investment decisions. governance token Vote on how the money from its treasury is invested.

decentralized exchange

Decentralized exchanges are used for buying and trading cryptocurrency, Unlike typical exchanges, these use peer-to-peer transactions that bypass any centralized authority. These include Uniswap and Sushiswap.

the dough

Short for “degenerate”, similar to “apes”. A “degen play” or “being degen” means investing in something without due diligence.

DeFi

Short for “decentralized finance”. DeFi is any financial instrument, such as a smart contract or DAO, which uses blockchain Techniques to bypass intermediary institutions.

Diamond Hands

Diamond hands are those who hold onto a financial asset for a long period of time or throughout turbulent price movements.

diary

Short for “do your own research”.

ether

cryptocurrency Mined on the Ethereum blockchain. second only to ether Bitcoin By market cap, but far more widely used is cryptocurrencies. majority of altcoins are also made Ethereum, and is therefore bound to the ether. Most NFTs are also built on Ethereum, which is why the major token used in Ether is NFT business.

Ethereum

a blockchain that competes with Bitcoin, It is designed to take leading blockchain technology by of bitcoin Developers use it for more sophisticated financial tools, such as smart contract,

flash loan

Flash loans are a DeFi Instrument that allows loans without collateral. Flash loans allow you to borrow money to buy a property, but only if the property can be purchased and interest is paid within the same block. Imagine buying a $1 million home using a loan, but the loan is only being approved if you’re already prepared to make enough payments to another buyer to pay off the loan and interest.

These loans use smart contract Technology.

All

Short for “fear, uncertainty and doubt”. It can be legit, such as people expressing concern about the token or NFT Project security or legitimacy, or strategic, as an organized move that encourages people to sell assets while lowering their value.

gas

Gas is the price you’ll pay to use Ethereum Network. Each transaction requires a gas fee, depending on how high the load is blockchain Is. Prices typically range between $50 to $500 per transaction, but can skyrocket during times of heavy network load.

governance token

Governance tokens are cryptocurrencies that give the owner voting rights on a given project. See all: DAO,

weeks

cost of gas is expressed by GWEI. As a rough guide, gas will be cheap when GVE is below 50 and expensive when it is above 100.

HODL

A purposeful misspelling of “hold” used to encourage people to hold on to their tokens during downward price volatility.

Layer 1 and Layer 2

if you dub in cryptocurrency You’ll hear about layer 1 and layer 2 solutions. layer 1 is blockchain is the architecture itself, whereas layer 2 refers to the architecture built on top of the blockchain.

Take, for example, the issue of Ethereum’s high gas cost. A “Air 1 must make solution” Ethereum Blockchain more efficient, such as adoption proof k-stakes An example of a protocol layer 2 solution is ImmutableX, an exchange built on top of Ethereum that uses smart contract Technology to allow gas-free, carbon-neutral trade.

liquid market

A liquid market is one with a large number of buyers and sellers, which allows buy or sell orders to be fulfilled almost instantly. cryptocurrency Markets are liquid, whereas NFT markets are not. Most legitimate cryptocurrencies can be bought or sold at any time, as NFT Merchants need to list an item for sale in the hope that a buyer will purchase it manually.

Mainnet

A blockchain protocol launched for public use will be inserted into the mainnet. This differentiates it from a testnet, which is like a beta launch of a blockchain protocol.

memecoin

The purpose of many cryptocurrencies is to provide utility or serve a purpose. Memecoins offer no potential for utility, and exist as a purely speculative asset. Dogecoin is the most famous
, but there are many, many more.

dogecoin-thumbnail

Dogecoin, the original Memecoin.

metamask

An online, browser-based digital wallet primarily used for transactions Ethereum Blockchain,

digging

Mining is the process by which transactions are verified, and blocks are mined in a . is added to blockchain, It usually involves powerful computers solving complex cryptography Problem. Importantly, also how new cryptocurrency is added to circulation. In the case of Bitcoin, About six bitcoins are mined Each time a new block is mined.

mining rig

A powerful computer set up for a specific purpose…

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