Cryptocurrency basics

smart contracts

- Computer protocols that facilitate, verify, or enforce the performance of a legal or financial contract, or any sort of agreement that multiple counterparties can codify. - A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained in the code exist across a distributed, decentralized blockchain network.

collection (AKA gallery or store(

A body of NFT works.

hardware wallet

A cryptocurrency wallet that is typically kept offline and is disconnected from the internet.

blockchain

A decentralized (or distributed) ledger that records transactions or activity between two participants permanently and with verification.

Ethereum

A decentralized, open-source blockchain with smart contract functionality. Ether (ETH) is the currency used on the Ethereum blockchain.

cryptocurrency

A digital asset designed to be used as a medium of exchange, including making payments, receiving payments, or facilitating transactions on a blockchain. Ownership and transaction records exist within the blockchain used by this digital asset. Examples include Bitcoin (BTC) and Ether (ETH).

crypo

A generic description for blockchain-based assets like cryptocurrency or non-fungible tokens (NFTs)

seed phrase

A list of words that can be used to recover crypto assets in the event of a lost password or lost access to a crypto wallet. Best if backed up in multiple locations and not on anything accessible to the internet.

ledger

A record of transactions between two entities. A centralized ledger, physical or digital, relies on an authoritative copy.

distributed ledger

A record of transactions that is kept on multiple nodes (computers) on a peer-to-peer network. a It is a database that is consensually shared and synchronized across a network spread across multiple sites, institutions or geographies.

token

A representation of value or the permission to do something within an application.

royalty-free

A term that describes intellectual property (such as a work of art) that for a single royalty payment can be used without having to pay a fee or royalty each time it is used.

rights managed

A type of licensing agreement that gives a buyer permission for specific, limited uses (or reuses) of intellectual property such as a copyrighted image. Any changes require a new license.

non-fungible token (NFT)

A unique token, verified by a blockchain and with blockchain-managed ownership that can't be exchanged for something of similar value. Examples of NFTs include digital art and ownership records for physical assets. This kind of token is unique and can't be replaced with an identical item. Can also have embedded within the token a smart contract that puts limitations on use, resale, etc.

crypto wallet

An application or hardware device that allows individuals to store and retrieve digital assets such as crypto currency and non-fungible tokens (NFTs).

Bitcoin

An open-source, decentralized payment system or cryptocurrency that operates in a peer-to-peer environment, without a bank or central authority. It is both a currency and a record of transactions.

decentralized Applications (dApps)

Applications that run on all the machines on a blockchain network.

off-chain

Blockchain transactions, including embedded smart contracts, that are not on the primary blockchain.

on-chain

Blockchain transactions, including embedded smart contracts, that are on the primary blockchain.

immutable

Can't be changed

blockchain standards

Characteristics assigned to non-fungible tokens (NFTs), such as ownership, transfer, and access control.

public key cryptography

Cryptographic method that uses a publicly available algorithm to encrypt information (key) and a second privately held algorithm to decrypt it. Method used for digital wallets, blockchains, and tokens.

decentralized contracts

Decentralized applications that are housed and distributed on the blockchain.

metadata

Descriptive information for a specific token ID. Metadata can either be a part of a smart contract (on-chain), or it may be stored separately (off-chain).

gas (also gas fees)

On the Ethereum blockchain, these are the costs or fees associated with performing a transaction on the network. The price is based on supply and demand for the computational power of the network needed to process smart contracts and other transactions

ERC-721

The Ethereum-based NFT token standard.

tradeability

The ability to have an open free market and the liquidity of a digital or non-digital asset.

Ether (ETH)

The token for Ethereum

wallet address

The unique locator used to send crypto or NFTs to a crypto wallet.