A 51% attack is an attack on a blockchain by a number of miners who control over 50% of the network’s mining hash rate. 51% attacks can try and stop other miners, completing blocks and cause disruption.
Altcoins are alternative cryptocurrencies that have been created after Bitcoin, such as Ethereum and Binance Coin. Often referred to as ‘Alts’, Altcoins are considered to offer competition to Bitcoin, as well as different use-cases and generational updates.
Average Confirmation Time
Confirmation time refers to the time taken between the point at which a blockchain transaction enters the network and when it’s confirmed on the chain. The average speed of a network’s transaction speed, is called Average Confirmation Time.
AI (Artificial Intelligence)
AI is the ability for machines to be programmed and learn how to think, act and solve problems in human-like ways.
Airdrops refer to a new cryptocurrency token being created and dropped (deposited) into users’ wallets for free. Example: Holders of XRP in 2020 had their wallets snapshotted to qualify them for a Flare Token airdrop in 2021.
Blockchain is a unique type of database that stores data in blocks, such as Bitcoin’s blockchain.
Bitcoin was created in 2009 by Satoshi Nakamoto, as the first digital currency, to deliver an alternative and decentralised payment system.
Byzantine Generals Problem
The Byzantine Generals Problem is a term from computer science, referring to a scenario where involved actors must agree on a single strategy, to avoid complete failure, but where some of the involved actors are corrupted with bad data and unreliable.
BGP (Border Gateway Protocol)
Border Gateway Protocol (BGP) is a standardised exterior gateway protocol created to swap routing and reachability information between autonomous systems like blockchains on the web.
Binance is currently the largest online cryptocurrency exchange, enabling users can trade hundreds of coins and use digital investing products. Created by Changpeng Zhao in 2017.
Binance Coin (BNB) is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. BNB is limited to 200 million tokens.
BTC is the abbreviation for Bitcoin, the world’s first cryptocurrency, created under the alias of Satoshi Nakamoto in 2009.
BCH (Bitcoin Cash)
Bitcoin Cash (BCH) forked from the Bitcoin (BTC) Network on August 1, 2017, enabling more block transactions, lower fees and faster average confirmation speed.
BNB (Binance Coin)
Binance Coin (BNB) is the cryptocurrency issued by Binance exchange and trades with the BNB symbol. BNB is limited to 200 million tokens and is used to pay for transaction fees on Binance.com, Binance DEX, and Binance Chain.
In blockchains, blocks are used to store data and are linked together via cryptography. Each block holds a cryptographic hash of the previous block, a timestamp, and transaction data (Merkle tree).
Bitcoin price refers to the cost of one Bitcoin at a certain point in time. Fundamentally, Bitcoin demand increases the price of Bitcoin, and versa versa.
Bitcoin supply is limited to 21 million BTC according to the original protocol, with mining currently scheduled to cease in 2140.
Bitcoin Pizza Day
May 22 is Bitcoin Pizza Day, celebrating the anniversary of Florida resident, Laszlo Hanyecz, who is the first person to have used BTC for a commercial transaction (he bought two pizzas).
Bitcoin ATM (Automated Teller Machine) is a kiosk that enables users to buy Bitcoin and other cryptocurrencies with cash or debit card.
Block Height Block
Block height is a specific location in a blockchain, dependent on the block number preceding it. Block height denotes the current size and time in creation.
A block reward is the number of bitcoins received for successfully mining a block of a cryptocurrency. In BTC, block rewards halve every 210,000 blocks (approx. every four years).
A block confirmation means a transaction being included in a block on the blockchain, supporting the confirmation process.
Block time is the time required to make the next block on a blockchain, dependent on a miner to finding a solution to the hash.
Big Data refers to the huge data sets that may be analysed via super computers to find patterns, trends, and links, most notably about human behaviour and interactions.
Crypto is the abbreviation for cryptocurrency, is a digital currency that can be used to buy goods and services and/or as a utility. Crypto works via blockchain (ledger) with strong cryptography.
Cryptocurrency (Crypto), is a digital currency that can be used to buy goods and services and/or as a utility. Crypto works via blockchain (ledger) with strong cryptography.
Cryptography enables for secure communication in the presence of malicious third-party actors (adversaries). It uses encryption algorithms and a key to change basic input data into an encrypted output (ciphertext).
Offline crypto holding is knows as custodial storage (cold storage wallets), supporting maximum security for crypto investors.
Cold storage is a means of holding digital data such as cryptocurrency, offline, on devices such as hardware wallets. All keys and passwords in the ownership of the user.
A centralised ledger (General ledger) holds all the accounts for recording transactions linked to a company’s assets, liabilities, equity, revenue, and expenditure.
Consensus protocol ensures new blockchain blocks, are valid, as agreed by all the nodes in a blockchain. A consensus algorithm seeks to finding a common agreement the entire network.
Currency is a medium of exchange for goods and services. Cryptocurrency is digitised currency.
A commodity is a basic good used in business that can be exchanged with other goods of a similar type. Cryptocurrencies such as Bitcoin are increasingly viewed as commodities in the digital economy.
Clients in blockchain are software enablers, which facilitate users to participate in the network and sync with others.
A coin is traditionally a piece of hard material, which is used as a form of money, but have evolved to become non-physical, encoded crypto coins, in the digital economy.
See Cold Storage
Confirmation refers to the act of consensus on a blockchain network, meaning a transaction has validated in the chain.
DeFi (Decentralised Finance)
Decentralised finance (DeFi) is a blockchain-based finance solution, which does no rely on centralised financial bodies, such as banks and brokerages. DeFi uses smart contracts on blockchains, such as Ethereum.
Decentralised refers to decentralised market and technology, which cryptocurrencies, which means users can trade directly with other users, without a centralised exchange such as a bank.
Distributed ledgers are databases that are openly shared and synched across many places, institutions, locations – and accessible by many actors. Bitcoin’s blockchain is a classic example of distributed ledger.
DLT (Distributed Ledger Technology)
Distributed Ledger Technology (DLT) is a protocol that elicits the safe operation of a decentralised digital database. Data stored via DLT becomes locked in an immutable database, subject to the network’s rules.
DigiCash Inc. was an electronic money company, create by David Chaum in 1989. DigiCash was a unique breakthrough, due to using anonymous cryptographic protocols.
Dogecoin (DOGE) is a cryptocurrency originally made by software engineers Billy Markus and Jackson Palmer, as a joke. Over time, DOGE has gained value, famously fuelled by bullish tweets from Elon Musk.
Digital signatures are digitised and encrypted, marks of authentication on digital data, including email messages, contracts, and diverse electronic documentation.
Digital currency is any currency, money, or money-like asset that is fundamentally managed, stored or used on the Internet, such as Monero.
Digital Commodities are in-demand digital assets, with some form of perceived value. Bitcoin and Ethereum are examples of digitised commodities.
DAO (Digital Decentralised Autonomous Organisation)
A decentralised autonomous organisation (DAO), is an organisation that runs via rules that are encoded via computer software. DAO is transparent and decentralised, with no central governance. Otherwise known as DAC.
Decentralised Application (DApp)
A decentralised application (DApp) is a computer app that operates on a distributed computer network.
Digital assets refer to anything digital, that has perceived value. Digital asset examples, include crypto coins, NFTs, art, music, images, videos, websites, databases, and more.
Digital identity refers to the data that supports the creation of a verifiable person identity, digitally.
Double-spending is an error in a digital cash system, resulting in a digital token, being spent more than once.
Ethereum is a decentralised, open-source blockchain with smart contract features. Ethereum is the most actively used blockchain.
Ether (ETH) is the native cryptocurrency of the Ethereum platform. After Bitcoin, it is the second-largest cryptocurrency by market capitalisation. ETH works as a digital fuel in transactions, creating different transaction burn and fees.
A cryptocurrency exchange (digital currency exchange) is a platform that enables users to trade (buy, sell, convert) cryptocurrencies and digital assets, as well as stake coins and invest in crypto pools.
Encryption is the method of converting data into secret coding, that secures the information. This is a vital aspect of blockchain and crypto.
ERC20 Token Standard
ERC20 tokens are the standard token used for generating and issuing smart contracts on Ethereum blockchain. ERC stands for Ethereum request for comment’ was launched in 2015.
ERC721 Token Standard
ERC721 tokens are more frequently called Non-Fungible tokens (NFTs) and enable allow developers to tokenise ownership of any arbitrary data and magnify the design area via tokenisation on Ethereum blockchain.
Crypto exchange rates refer to the conversion price between two currencies, in real-time (e.g. Exchanging 1 ETH for BTC).
In the digital world, Fungibility is the property of a digital product or commodity, whose individual units are in essence, interchangeable, and each of its parts is identical (e.g. like a Bitcoin token).
In blockchain, a fork refers to a blockchain, diverging into two potential paths into the future, such as a change in protocol.
- Soft Fork: A change to the software protocol where only previously valid transaction blocks are invalidates. Backwards-compatible.
- Hard Fork: A a radical evolution to network protocol, eliciting previously invalid blocks and transactions valid, or vice-versa. All nodes must be upgraded.
Fiat currency is government-issued money that is not backed by a commodity such as gold or silver. Fiat gives central banks greater control of the economy, such as the British Pound, Euro, and U.S. Dollar.
A Genesis Block is the name stamped on the first block of a cryptocurrency, such as Bitcoin, ever mined.
On-chain governance is a system for managing and implementing changes to crypto blockchains. Governance rules are encoded into a blockchain protocol. All nodes vote on whether to accept or reject changes, proposed by developers.
In crypto, ‘Gas’ refers to the fee, or pricing level, needed to fully elicit a transaction or execute a contract on the Ethereum blockchain.
Hash is the maths function that crypto and blockchains use to encrypt inputted data via cryptocurrency
A hash key is a small value that is used to denote a large bit of data in a hash system, such as blockchain transactions.
A hardware wallet is a cryptocurrency wallet which stores an individual’s private keys and crypto, in a secure hardware device such as a pen drive wallet.
Hot storage is cloud storage of crypto, such as in an exchange wallet like Coinbase or Binance. Hot storage wallets are very fast for frequent access, such as trading.
Halving is the point when Bitcoin’s block allocation gets cut in half. The halving of Bitcoin’s block occurs every 210,000 blocks (approx. every four years). Over time, less and less BTC is therefore minded.
A Hard Fork is a radical evolution to network protocol, eliciting previously invalid blocks and transactions valid, or vice-versa. All nodes must be upgraded.
HODL means ‘hold on for dear life and is a popular phrase used b crypto investors, when deciding to hold and not sell a coin, despite potential market turbulence.
Hybrid Consensus Model: PoS / PoW
Hybrid PoW/PoS consensus mechanisms uses features of both PoW and PoS models when determining transaction validation access. This hybrid aims to neutralise the weaknesses of each consensus mechanism.
Hashrate Distribution is an estimation of hashrate distribution amongst the biggest mining pools. It should be relied upon 100% but gives a valuable estimation.
Immutability in crypto, is the capacity of a blockchain ledger to remain unaltered and unchanged.
ICO (Initial Coin Offering)
An Initial Coin Offering (ICO) is the release of a new coin or digital asset, working in a similar way to the release of a new stock. ICOs may happen on one or more crypto exchanges.
IoT (Internet of Things)
Central to digital world, The Internet of Things (IoT) is a system of interrelated, internet-connected objects that are able to collect and move data over a wireless network without human involvement.
Public and private keys are a crucial part of Bitcoin and other crypto currencies, facilitating exchange, without a third party for verification.
- Public Key cryptography (asymmetric cryptography), is a cryptographic system that uses pairs of public keys and private keys, generated via cryptographic algorithms.
- Private Key cryptography enables users to access their cryptocurrency and uses advanced cryptographic to protect data and secure transactions and funds.
KYC (Know Your Customer)
KYC (Know Your Customer) refers to the processes used by crypto exchanges and products, to verify one’s identity, analyse risk profile and optimise security for all parties.
A cryptocurrency public ledger is a record-keeping system that keeps users’ identities private, along with account balances of cryptocurrencies.
Litecoin (LTC) is a peer-to-peer cryptocurrency and open-source software project, released in 2011, as a Bitcoin alt. LTC is very similar to Bitcoin in terms of technical structure.
The Lightning Network is a “layer 2” payment system made to be layered on top of a blockchain-based cryptocurrency like as BTC or LTC, to support faster transactions.
Free Republic of Liberland is a sovereign state located between Croatia and Serbia, founded by its President, Vit Jedlicka. The Liberland merit is the currency of Liberland and the country function on blockchain. The country’s motto is: ‘To live and let live’.
Liquidity in crypto, is the ease at which one can convert cryptocurrency into cash — and whether this can be attained without the asset’s value dropping. Highly liquid assets, can typically be bought around market price at the time.
Bitcoin mining is the process used to create new bitcoins, which are created via very complex computers, that solve extremely complex math problems to mint coins.
Monero is a privacy-focused cryptocurrency created in 2014, using open-source protocol based on the CryptoNote application layer. Monero is currently one of the leading privacy coins.
A mining farm is a dedicated area and business operation, which operates a large number of commercial cryptocurrency mining computers, using sophisticated technology.
Market Cap (Market Capitalisation)
Market capitalisation (market cap) is the total value of all the crypto coins that have been mined. In crypto, market cap is calculated by the sum of coins minded, multiplied by the coin value at the time of calculation.
Multi Signature (MultiSig)
Multi-signature arrangements are a process that uses multiple signatures or keys, rather than one signature, to authorize a Bitcoin or crypto transaction.
Machine Learning Models
A machine learning model is a file that has been programmed to recognize various types of patterns, using algorithms to enable reason to solve complex problems.
A Merkle root is a simple mathematical method that enabled data verification on a Merkle tree. In crypto Merkle roots are used to maintain data integrity across blockchains.
NFT (Non-Fungible Token)
A non-fungible token (NFT) is a unit of data stored on a blockchain. NFTs certify a digital asset to be unique and thus not interchangeable – such as photos, videos, audio, and other types of digital files. NFTs have a diverse range of use cases and may be central to the future digital economy.
A non-custodial wallet is a form of crypto wallet that enables users to hold and own their private key, while having total control of funds. Keys are stored with encryption.
Nodes on a cryptocurrency network are computers that connects to a cryptocurrency blockchain and is used to validate and process transactions. For example, on Bitcoin network, all nodes fully enforce all BTC rules.
The node or computer supports the network. It supports it through validation and relaying transactions. … Full nodes fully enforce all the Bitcoin rules.
In cryptography, a nonce is an random number that can be used just once in a cryptographic communication, meaning old communications cannot be used again in replay attacks.
Network Hash Rate
The hash rate is the measuring unit of the processing power of a crypto network. In Bitcoin, a hash rate of 10 Th/s means it could perform 10 trillion calculations per second.
Number of Users
The number of users in crypto, refer to the number of global crypto users (reached 106 million in January 2021).
A paper wallet is a printed bit of paper that features keys and QR codes that are used to elicit cryptocurrency transactions.
Public Key cryptography (asymmetric cryptography), is a cryptographic system that uses pairs of public keys and private keys, generated via cryptographic algorithms.
Private Key cryptography enables users to access their cryptocurrency and uses advanced cryptographic to protect data and secure transactions and funds.
The public ledger is a record-keeping system that maintains users’ identities in secure and (pseudo-)anonymous form, plus cryptocurrency balances, and a store of all the legitimate transactions executed between network users.
The Privkey is a secret key coded with an algorithm to encrypt and decrypt code and offer high levels of security for crypto.
In crypto, the Pubkey is a large numerical code that is used to encrypt data. In asymmetric cryptography, Pubkey encrypted data, can only be unlocked with the corresponding Privkey.
Proof of Work (PoW)
Proof of Work (PoW) is a type of cryptographic zero-knowledge proof in which one actor (the prover) proves to others (the verifiers) that a certain amount of a specific computer effort has been expended.
P2P (Peer / Peer-to-Peer)
Peer-to-Peer in crypto (P2P) refers to the exchange of currencies between users (Peers) that are not generated by a central bank, such as with Bitcoin.
In Private blockchain, only a single organisation can read and write on the ledger (e.g. a private company’s blockchain). Nodes are also limited to a certain number, and can also delete entries on a block.
In a public blockchain, any user can read and write on the ledger. The public blockchain can not be altered once data is entered.
Proof of Authority
Proof of authority is a blockchain algorithm, that provides relatively fast transactions through a consensus mechanism based on identity as a stake. VeChain is a leading PoA crypto.
Proof of Stake (PoS)
Proof of stake is a type of consensus mechanism for blockchains, which uses selected validators in proportion to their quantity of holdings in the relevant cryptocurrency.
Quantum supremacy (quantum advantage) is the process of showing that a programmable quantum device can solve a problem that no standard computer can solve in a viable timeframe.
Quantum Computing/ Computer
Quantum computing is the use of collective properties of quantum states, such as superposition and entanglement, to elicit computation.
A qubit is in quantum computing, is the basic unit of quantum data.
Satoshi Nakamoto, is the alias of the person who created Bitcoin in 2007. Satoshi wrote Bitcoin: A Peer-to-Peer Electronic Cash System, Bitcoin’s famous White Paper.
Smart contracts are digital contracts. They are computerised transaction protocols, which have the ability to automatically execute, control and document legally relevant acts, creating binding contracts.
Soft Forks refer to changes in blockchain software protocols, where-by only changes to perviously valid transaction blocks are made invalid. Soft Forks are still recognised by old nodes, meaning a soft fork is backwards-compatible.
Satoshi per Byte is a measurement scale for for determining transaction priority (Satoshi transaction’s fee in Satoshi, divided by the byte size of the transaction).
Crypto trading refers to the concept of buying and selling crypto assets via exchanges such as Coinbase and Binance, with the aim of creating a profitable trade (‘Buy low Sell high’).
Crypto tokens are specific virtual currency tokens or cryptocurrencies denominations. Tokens are fungible and tradable assets or utilities that reside on their own blockchains.
The blockchain transaction fee, is a cryptocurrency payment fee, charged to users when executing crypto transactions. The lower the transaction fee, the lower your transaction’s priority in the chain.
Transaction volumes on on crypto, represents the movement of coins across blockchains. For example, the volume of BTC transactions in a 24h period, or the total number of crypto transactions across the whole Ethereum blockchain.
24 hour volume in crypto, denotes the volume of a particular cryptocurrency, traded in the pervious 24h period. For example, how many thousand Bitcoins were traded yesterday, on a specific exchange, or across the whole Internet.
Wallets are traditionally, storage units made of leather of synthetic material, that hold coins, notes and payment cards, which can be used to make payments. Digital wallets operate as electronic payment wallets, for fiat and crypto.
Web wallets enable access to one’s crypto, from any browser or mobile, connected to the Internet. Coinbase, Binance and Crypto.com are well established web wallet providers.
In crypto, White Papers are detailed document released by projects, to give an oversight of a coin’s general concept, technology, and future goals. Bitcoin: A Peer-to-Peer Electronic Cash System, by Satoshi Nakamoto is the most famous.
‘Whales’ are considered to be individuals or groups who own large volumes of specific cryptocurrencies, giving them the leverage to manipulate the value of cryptocurrencies such as Bitcoin, and trade the volatility.
Ripple (XRP) is a real-time gross settlement infrastructure, currency exchange and remittance system, owned by Ripple Labs Inc., a US tech firm.