Crypto Vocabulary
node
a computer that connects to a blockchain network
ethereum
a crypto network and software platform that developers can use to create new applications and is the second largest cryptocurrency by trade volume
blockchain
a digital form of record keeping and the underlying technology behind cryptocurrency (are decentralized)
exchange
a digital marketplace where you can buy and sell cryptocurrency
halving
a feature written into bitcoin's code in which after a certain number of blocks are mined the amount of new Bitcoin entering circulation is halved, which impacts the Bitcoin's price
gas
a fee that developers have to pay to the Ethereum network in order to use the system
wallet
a place to store cryptocurrency holdings, can be hot or cold
coinbase
a popular centralized cryptocurrency exchange
vitalik buterin
a programmer who invented Ethereum in 2015
coin
a representative store of digital value that lives on a given blockchain or cryptocurrency networks
cold wallet/ cold storage
a secure method of storing your cryptocurrency completely offline (can be physical devices)
hot wallet
a software-based cryptocurrency wallet connected to the internet
cryptocurrency
a type of currency, which is digital and decentralized, that can be used to buy/ sell things or can be used as a long-term stored value
hash
a unique string of numbers and letters that identify blocks and are tied to crypto buyers and sellers
initial coin offering (ICO)
a way that funds are raised for a new cryptocurrency project
bitcoin cash
a-peer-to-peer electronic cash system that formed from a fork of bitcoin, and is better optimized for transactions than bitcoin
smart contract
an algorithmic program that enacts the terms of a contract automatically based on its code
altcoin
any coin, other than bitcoin, that can range in value
decentralized apps (DApps)
applications designed by developers and deployed on a blockchain to carry out actions without intermediaries
decentralized finance (DeFi)
financial activities conducted without the involvement of an intermediary, like a bank, government, or other financial institution
block
groups of data within a blockchain and are made up of transaction records as users buy or sell coins (can only heard a certain amount of info)
how to calculate a crypto's market cap
multiply the current number of coins by the current value of the coins
stable coin
pegs its value to some other non-digital currency or commodity
market capitalization
refers to the total value of all the coins that have been mined
digital flat
represents a fiat, or government- backed currency on the blockchain
HODL
stands for "Hold On for Dear Life", refers to a passive investment strategy in which people buy and hold onto cryptocurrency in the hopes it would increase in value
Satoshi Nakomoto
the anonymous creator, or group, that created bitcoin
digital gold
the comparison of specific cryptocurrencies to real gold based on the way it can store and increase in value
private key
the encrypted code that allows direct access to your cryptocurrency
bitcoin
the first and the most valuable cryptocurrency that was launched on January 3, 2009
genesis block
the first block of cryptocurrency ever mined
decentralization
the principle of distributing power away from a central point
mining
the process whereby new cryptocurrency coins are made available and the log of transactions between users is maintained
peer-to-peer
two users interacting directly without a third party or intermediary
token
unit of value on a blockchain that usually has some other value proposition besides just a transfer of value
non- fungible tokens (NFTS)
units of value used to represent the ownership of unique digital items like art or collectibles
fork
when a blockchain's users make changes to its rules, the results of these changes can lead to two paths
public key
your wallet address
