Bitcoin & Cryptocurrency Glossary2023-11-27T05:55:59+00:00

Bitcoin & Cryptocurrency Glossary

51% Attack2023-01-02T11:19:31+00:00

An attack on a cryptocurrency blockchain by a group of miners who control more than 50% of the network’s mining hash rate.

Airdrop2023-01-02T11:18:06+00:00

A distribution of a crypto (currencies’) token to a number of users, often those who have interacted with the issueing entity associated with the airdrop’s sponsor.

Altcoin2023-01-02T11:18:06+00:00

The term used for all cryptocurrencies except Bitcoin.

ASIC (Application-Specific Integrated Circuit)2023-01-02T11:18:05+00:00

ASIC (Application-Specific Integrated Circuit) is a computer, respectivly, a computer chip especially designed to perform one function, in relation to cryptocurrencies to Bitcoin mining/minting, and nothing else.

ATH (All-Time High)2023-01-02T11:18:05+00:00

ATH (All-Time High): The highest value ever reached by Bitcoin (or an Altcoin) in its history.

Bagholder2023-01-02T11:18:43+00:00

A crypto investor who continues to hold large amounts of a specific coin, even when it performs poorly.

Bearish2023-01-02T11:18:42+00:00

The belief and according attitude that market progress and prices are trending downwards.

Bearwhale2023-01-02T11:18:42+00:00

An individual or single entity who holds a large enough amount of a cryptocurrency to be able to profit from driving the price down.

Bitcoin Mining2023-01-02T11:18:42+00:00

The process of guessing a special defined value before all other participants on the Bitcoin blockchain in order to propose a block of transactions for confirmation.

Bitcoin/BTC2023-01-02T11:18:42+00:00

The first and most well-known cryptocurrency running on a blockchain started in 2008.

Block2023-01-02T11:18:42+00:00

A grouped number of transactions broadcast to the network and then written to the Bitcoin blockchain.

Blockchain2023-01-02T11:18:42+00:00

A ledger of Bitcoin transactions maintained and distributed across a network of computers.

BTD (Buy The Dip)2023-01-02T11:18:42+00:00

The act of purchasing Bitcoin when the price has dropped in a short time period.

Bullish2023-01-02T11:18:41+00:00

The belief that market progress and prices are trending upwards.

Central Bank Digital Currency (CBDC)2024-02-08T08:50:44+00:00

CBDC refers to proposals involving a digital currency issued by a central bank. Although the term is not precisely defined, it represents a new form of central bank money.

Centralized2023-01-03T01:42:35+00:00

A system or organization that is controlled by a person, group, corporation, or government.

CEX (Centralized Exchange):2023-01-03T01:44:21+00:00

A cryptocurrency exchange that uses traditional market making methodologies and is operated by a centralized entity.

Coinbase Transaction2023-01-20T11:02:15+00:00

A coinbase transaction is the first transaction in a block. It is a unique type of bitcoin transaction that can be created by a miner. The miners use it to collect the block reward for their work and any other transaction fees collected by the miner are also sent in this transaction.

Cold Storage2023-01-03T01:45:11+00:00

The act of keeping one’s Bitcoin private key in a secure, offline environment.

Confirmation2023-01-03T01:46:41+00:00

The successful (immutable and irreversible) inclusion of a block of Bitcoin transactions within the blockchain.

Crypto2023-01-03T01:48:03+00:00

A term generally used to describe blockchain and blockchain-adjacent technologies and protocols, other than Bitcoin, respectively in a more generic way.

Cryptocurrency2023-01-03T01:48:46+00:00

A digital asset designed to work as a medium of exchange, store of value, unit of account, or, in the case of Bitcoin, all three.

Cryptocurrency Exchange2023-01-03T01:49:36+00:00

A platform that allows users to exchange cryptocurrencies and fiat currencies.

Cryptocurrency Mixer2023-01-03T01:51:09+00:00

A service that mixes different streams of potentially identifiable cryptocurrency in order to improve anonymity.

Cryptocurrency Wallet2023-01-03T01:50:22+00:00

A device or program that stores the private and public keys that together grant access to stored cryptocurrencies.

Cryptography2024-02-08T08:49:08+00:00

Cryptography is a technique in which mathematical and logical problem-solving skills are combined to encrypt or decrypt encrypted messages. In addition to the difficulty of calculating certain mathematical problems, computer cryptography depends to a large extent on mathematical proofs.

DAO (Decentralized Autonomous Organization)2023-01-03T01:55:22+00:00

A DAO, or decentralized autonomous organization, is a blockchain-based community, the purest form of which has no elite class of members, and is controlled in a decentralized way.

dApp (Decentralized Application)2023-01-03T01:56:45+00:00

A dApp, or decentralized application, is a software application running on top of a quasi-decentralized protocol and commonly incorporates a smart contract.

Decentralized2023-01-03T01:57:40+00:00

Globally distributed, peer-to-peer, and not reliant on any person, group, corporation, or government.

Decentralized Ledger2023-01-03T01:59:31+00:00

A system of independent computers that are simultaneously recording data, while also maintaining identical copies of the data.

DeFi (Decentralized Finance)2023-01-03T02:00:20+00:00

Blockchain-based financial services that claim to be used without the need for an intermediary.

DEX (Decentralized Exchange)2023-01-03T02:01:05+00:00

A cryptocurrency exchange that, to some degree, may not be totally centralized and in some regards operates on top of blockchains through use of smart contracts and liquidity pools.

Diamond Hands2023-01-03T02:02:02+00:00

A term used to describe an investor who has a high tolerance for risk and volatility and refuses to sell their holdings.

Difficulty2024-02-08T08:47:53+00:00

Difficulty is a measure of how difficult it is to mine a block in a blockchain for a particular cryptocurrency.

DINO (Decentralized In Name Only)2023-01-03T01:58:46+00:00

A term that refers to centralized or quasi-centralized blockchains, protocols, and groups that self-identify as “decentralized” without achieving real decentralization.

Double Spend / Double Spending Problem2023-01-03T02:03:41+00:00

The act of spending the same Bitcoin UTXO in more than one transaction.

Dox2023-01-03T02:04:30+00:00

The act of publishing identifying information about a formerly anonymous or pseudonymous individual on the internet, typically with malicious intent.

DYOR (Do Your Own Research)2023-01-03T02:05:04+00:00

The process of researching one’s investments rather than turning to a third party who supports a particular asset.

Ethereum (ETH)2023-01-04T08:37:21+00:00

The second-largest cryptocurrency by market cap, Ethereum’s claimed primary focus is on enabling blockchain-based services through the use of smart contracts.

Fee2023-01-04T08:30:04+00:00

See “Transaction Fee”

Fiat2023-01-04T08:38:24+00:00

A government-issued currency that is not backed by a physical commodity, but rather by the government that issued it.

Flippening2023-01-04T08:39:03+00:00

The hypothetical growth of another cryptocurrency to exceed the size, value, and importance of Bitcoin.

FOMO (Fear Of Missed Opportunity)2023-01-04T08:44:00+00:00

The real or imagined fear to miss an option by not performing an action.

FUD (Fear, Uncertainty, Doubt)2023-01-04T08:39:46+00:00

Negative, misleading, or false information that influences the perception of Bitcoin or the market as a whole.

Fungible2023-01-04T08:40:44+00:00

A quality in which two or more of the same thing, such as Bitcoin, have identical value and are a perfect substitute for one another.

Gas2023-01-02T11:22:14+00:00

Gas is the fee paid to execute transactions on the Ethereum blockchain, and is denominated in gwei, a sub-unit of the Ether cryptocurrency.

Genesis Block2023-01-02T11:22:55+00:00

A term to describe the very first block mined on the Bitcoin blockchain.

Halvening2023-01-04T08:44:44+00:00

The periodic halving of the issuance rate for Bitcoin, or the rate at which new Bitcoin are released into circulation through mining.

Hard Fork2023-01-04T08:45:32+00:00

A radical change to Bitcoin’s software that makes previously valid blocks and transactions invalid.

Hardware Wallet2023-01-04T08:46:30+00:00

A device specially designed to lock away the private key used to access one’s Bitcoin.

Hash Rate2023-01-04T08:49:05+00:00

The unit of measurement for the amount of processing power on the Bitcoin blockchain.

Hashing2023-01-04T08:48:27+00:00

The act of using a computer program to create from information a string of letters and numbers (of a predetermined length).

HODL2023-01-04T08:50:25+00:00

The act of buying, respectively not selling) Bitcoin with the intent to hold it for an extended period of time.

Hot Storage2023-01-04T08:52:28+00:00

The act of keeping a private key connected to the internet to increase accessibility.

Hyperbitcoinization2023-01-04T08:53:16+00:00

The rapid and irreversible process of adopting Bitcoin as the world’s primary reserve currency as fiat currencies collapse.

ICO (Initial Coin Offering)2023-01-02T11:24:11+00:00

An ICO, or initial coin offering, is a funding method used by crypto-based companies and protocols in which a native token is exchanged for fiat currencies or other digital assets.

Inflation2023-01-02T11:25:20+00:00

An increase in the supply, or total available amount, of a currency. Inflation directly leads to both the decline in value and loss of purchasing power of the currency.

KYC (Know Your Customer)2023-01-03T02:26:13+00:00

Requirements imposed by centralized service providers, often at the demand of governments, that collect personal and identifying information from users.

Layer-22023-01-02T11:27:08+00:00

A protocol or platform built on top of the Bitcoin (or another) blockchain that typically adds additional functionality or efficiency to the network.

Lightning Network2023-01-02T11:28:10+00:00

A Bitcoin Layer-2 application designed for economical, fast, and private payments at low-to-no fee.

Market Capitalization2023-01-04T08:54:41+00:00

The size of Bitcoin denominated in fiat terms, calculated by multiplying the amount of coins in circulation by the current fiat-based price.

Medium of Exchange2023-01-04T08:55:23+00:00

A tool, such as a currency, that’s used to facilitate sales, purchases, and trades of goods and services between parties.

Metaverse2023-01-04T08:56:09+00:00

A network of 3D virtual worlds focused on social connection, often intersecting with cryptocurrencies and other crypto assets.

Mining / Minting2023-01-02T11:17:39+00:00

The process of guessing a special defined value before all other participants on the Bitcoin blockchain in order to propose a block of transactions for confirmation. As a “side effect” new Bitcoins are brought in circulation.

Mixer/Mixing Service2023-01-03T01:52:42+00:00

See “Cryptocurrency Mixer”

Mooning2023-01-04T08:56:44+00:00

A term used to describe a cryptocurrency that is experiencing a strong upward market trend.

NFT2023-01-02T11:29:00+00:00

An NFT, or non-fungible token, is a cryptographically unique representation of a digital or physical asset on a blockchain.

Node2023-01-02T11:29:44+00:00

A computer that participates in validating transactions on the global peer-to-peer Bitcoin network.

Orphan Block2023-01-02T11:30:22+00:00

A block on the Bitcoin blockchain that has been abandoned in favor of a different block and will not be built upon.

Paper Wallet2023-01-04T08:58:54+00:00

A piece of paper on which the private key (or a seed phrase) used to access one’s Bitcoin is written.

Peer-to-Peer (P2P)2023-01-04T08:59:39+00:00

A connection between two computers or people that allows information, files, goods, etc., to be shared without an intermediary.

Permissionless2023-01-04T09:00:25+00:00

A quality in which anyone is allowed to join and participate in a blockchain network.

Private Key2023-01-04T09:01:15+00:00

A cryptographic key that can be used to decrypt messages or transactions meant for a specific recipient.

Proof-of-Stake (POS)2023-01-04T09:02:08+00:00

A blockchain algorithm in which a participant’s likelihood of being selected to confirm a block on a blockchain is probabilistically tied to the percentage of the blockchain’s token supply the participant controls.

Proof-of-Work (POW)2023-01-04T09:02:48+00:00

The algorithm upon which the Bitcoin blockchain operates. Proof-of-work is defined by the conversion of electricity into processing power.

Protocol2023-01-04T09:03:28+00:00

An established set of rules dictating how nodes on the Bitcoin blockchain interact with one another and the code base.

Public Key2023-01-04T09:04:07+00:00

A cryptographic key that can be used to encrypt messages or transactions meant for a specific recipient.

Pump and Dump2023-01-04T09:05:31+00:00

A market manipulation in which an entity accumulates a large amount of an asset to inflate the price before dumping it.

QR Code2023-01-02T11:31:26+00:00

A digital version of a Bitcoin address (i.e., public key) that can be scanned by a QR code reader.

Rug pull2023-01-02T11:32:02+00:00

A rug pull is the theft of digital assets entrusted to developers, real or fake, of a crypto-based project, before or soon after the project launches.

Satoshi Nakamoto2023-01-03T02:32:49+00:00

The person or people responsible for releasing the Bitcoin whitepaper and original software code.

Satoshis (Sats)2023-01-03T02:33:44+00:00

The smallest on-chain unit of Bitcoin, equal to 0.00000001 BTC.

Scalability2024-02-08T09:01:56+00:00

Scalability refers to the ability of a blockchain project to handle network traffic, application capacity and requirements for future growth.

Seed/Seed Phrase2023-01-03T02:34:41+00:00

A list of words that, when spelled correctly and entered in the proper order, allow recovery of Bitcoin on its blockchain.

Serialization2024-02-08T09:03:51+00:00

It is a process of converting a data structure into an encoding format consisting of a series/sequence of bytes.

Sh*tcoin2023-01-03T02:38:52+00:00

Any cryptocurrency that has little or no value and no discernible purpose.

SHA-2562023-01-03T02:35:36+00:00

A cryptographic hash function used to secure transactions and information on the Bitcoin blockchain.

Sharding2023-01-03T02:37:05+00:00

Breaking up large quantity of data and distributing it among multiple computing units.

Shill2023-01-03T02:37:53+00:00

The act of promoting a cryptocurrency in order to make money, even and especially when the cryptocurrency’s fundamental value is low.

Sidechain2023-01-03T02:39:34+00:00

A separate chain built on top of the Bitcoin blockchain in order to upgrade the technology with additional features.

Signature2023-01-03T02:40:20+00:00

A mathematical mechanism that allows for the proof of ownership by the individual holding a cryptographic key.

Smart Contract2023-01-03T02:41:03+00:00

A smart contract is a set of instructions written in code on a blockchain that execute when specified conditions are met.

Soft Fork2023-01-03T02:41:43+00:00

A change to Bitcoin’s software where only previously valid transaction blocks are invalidated.

Software Wallet2023-01-03T02:42:30+00:00

A computer program designed to secure the private key used to access one’s Bitcoin.

Solidity2024-02-08T09:00:13+00:00

Solidity is a popular programming language for smart contracts that is specifically tailored to the Ethereum Virtual Machine.

Stablecoin2023-01-03T02:44:04+00:00

Any blockchain token that is designed to maintain a price peg with another financial or real-world asset.

Staking2023-01-03T02:44:51+00:00

Staking occurs on Proof of Stake blockchains and entails locking up one’s holdings of the blockchain’s native cryptocurrency to earn additional units of the cryptocurrency.

Token2023-01-04T08:25:45+00:00

A unit of value on the blockchain that can incorporate a variety of use cases, such as governance or a rewards program.

Tokenization2024-02-08T08:59:44+00:00

Tokenization is a process that enables the translation of business assets, strategies or services into discrete units that are tradable and can be recorded on a blockchain.

TPS (Transactions Per Second)2023-01-04T08:27:42+00:00

A measure of a payment network’s, whether centralized or decentralized, average transaction throughput.

Transaction2023-01-04T08:28:45+00:00

A blockchain entry that records the transfer of value or information from one entity to another.

Transaction Fee2023-01-04T08:29:28+00:00

The cost paid to incentivize processors (e.g., miners, stakers, etc.) to confirm a transaction on the blockchain.

Transaction pool2024-02-08T08:59:10+00:00

A transaction pool is a pool or list of transactions that propagate across a shared network but have not been added in a block.

Trustless2023-01-04T08:30:42+00:00

A quality in which two transacting parties are not required to trust one another in order to conduct a transaction.

Turing complete2024-02-08T08:58:33+00:00

Refers to the ability of a programming language to simulate a Turing machine.

Turing machine2024-02-08T08:58:03+00:00

A machine that can perform any task or algorithm that can be performed by a computer.

TVL (Total Value Locked)2023-01-04T08:31:35+00:00

A measure of the total value locked within a smart contract.

Unconfirmed Transaction2023-01-03T02:07:52+00:00

A transaction that has not yet been added to a block on the Bitcoin blockchain.

UTXO (Unspent Transaction Output)2023-01-03T02:07:03+00:00

The output of a previous Bitcoin transaction that has not yet been spent (i.e., used in a subsequent transaction).

Validator2024-02-08T08:54:52+00:00

The validator in a blockchain ecosystem generally refers to a participant in the Proof of Stake consensus algorithm. Validators must provide security services in order to be included in the validator set.

Wallet2023-01-03T01:52:07+00:00

See “Cryptocurrency Wallet”

Weak Hands2023-01-03T02:08:59+00:00

A term that describes an investor whose confidence is tested during market downturns to the point of selling their Bitcoin.

Web32023-01-03T02:09:38+00:00

An idea for a new version of the internet supposedly based on decentralized and pseudo-decentralized blockchain technology.

Whale2023-01-03T02:23:01+00:00

An individual who holds a large enough amount of a certain cryptocurrency to be able to move the market.

xPub (Extended Public Key)2023-01-03T02:30:15+00:00

A set of public keys (i.e., addresses) corresponding to one private key or set of related private keys (e.g., multisig wallet).

Zero Confirmation Transaction2023-01-03T02:31:00+00:00

A transaction that has been broadcasted to the network, but not yet recorded on the Bitcoin blockchain.

Zero-Knowledge Proof2024-02-08T08:52:58+00:00

Zero-Knowledge Proof is a cryptographic mechanism designed to help users verify assertions where the output value can be easily determined without knowledge of the input information.

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