Glossary of terms commonly used in the world of blockchain and cryptocurrency:
RedditReddit is a social media platform that is used intensively in the crypto community. The website has pages per topic, which is called a subreddit. Visitors can post messages and respond to it. Coins often have their own subreddit for the community to converse and for the team to post (development) updates.
2 Factor Authentication (2FA)2 Factor Authentication is a double layer security measure. Most crypto exchanges use it. In order to log in, you not only need to enter a password, but also a code that you receive from the Google authenticator for example.
51% AttackA ‘51% attack’ refers to a possible attack on a blockchain by a group of ‘miners’, who hold more than 50% of the hashrate. In such a situation the ‘miners’ have the possibility to deliberately not confirm transactions or to issue transactions twice (double-spend).
AbstractAn ‘abstract’ is a summary of a (technical) document. A logical place is the beginning of a ‘white paper’ to describe it briefly.
AccountTo log in to a website or computer you need an account. This consists of a username and a password. In the cryptocurrency world, a private key is usually sufficient to log in to the wallet.
AddressAn address is comparable to a bank account number. It is a unique collection of numbers and letters. This identification code is required to carry out a blockchain transaction and is unique for each owner.
AddyADDY means “Address”.
Affiliate linkAn affiliate link is a specific URL that contains a special and mostly unique identification. This URL can be obtained when a websites offers an ‘affiliate program’. Sharing an affiliate link makes it possible for the website to record the traffic you generated. This is usually compensated with money, credits or coins.
AirdropAn airdrop is a way to distribute coins. End users can generally get coins for free or in exchange for a small task, such as subscribing to a newsletter, sending a tweet or inviting other people via a personal affiliate link. The opportunities and dangers of an airdrop are described in detail in this article: What is an airdrop?
AlgorithmThe ‘algorithm’ is a way to solve a task using data processing and calculations. There are different types of algorithms in use by blockchains.
AlphanumericAlphanumeric is something, like a code or password, that consists of both letters and numbers.
AltcoinAn altcoin is any cryptocurrency or token created after the Bitcoin was developed.
AMAAMA is the abbreviation for ‘Ask Me Anything’. This refers to a set of questions that can be asked to a person or team. Within the crypto world this is a commonly used method to answer questions from the community. The answers can be given via a Youtube live stream, but also in writing in a blog post or on Reddit.
AnonymousAnonymous refers to anonimity. Within the blockchain world this is an important topic. Bitcoin transactions are anonymous to a certain extent, but the transactions are permanently visible in the blockchain. Eventually it will be possible to link it to a person. This has led to the creation of privacy focussed coins, such as Monero and PivX. Anonymous can also refer to an international group of activists and ‘hacktivists’, who in recent years have committed several (DDOS) attacks on websites of agencies and governments.
Anti-Money Laundering [AML]AML is the abbreviation for ‘anti-money laundering’. AML stands for policy and legislation on money laundering. This prevents illegally acquired funds from being converted into a legal variant. Within the crypto world, it is no longer unusual for AML techniques to be used by exchanges and wallets. This term is often used as AML/KYC, where KYC stands for ‘Know your customer’.
ArbitrageArbitration can take place at the moment there is a price difference of a coin between exchange A and exchange B. A trader who responds to this is also called an arbitration trader.
AshdrakedAshdraked means that someone has lost all his money on a certain position.
ASIC (Application Specific Integrated Circuits) MinerASIC is the abbreviation for ‘application-specific integrated circuit’. These are microchips or processors, designed to perform a very specific task very well. The Bitcoin ASIC is a very popular one, which makes it possible to mine Bitcoins very efficiently, making it impossible to mine them on a normal computer. ASICs are also developed for other coins, but they can become useless after a protocol upgrade, that makes the blockchain ‘ASIC-resistant’.
Asymmetric Key AlgorithmAKA stands for Asymmetric Key Algorithm. This is a cryptographic system that uses a ‘pair of keys’, the so-called ‘public key’ and the ‘private key’. The public key is needed by both parties to execute a transaction. The private key is only known to the owner and acts as an authentication method for accessing the coins stored on the public address.
ATHATH is the abbreviation of ‘All Time High’ and means the highest price ever paid for a particular coin. ATH is also often used to indicate that someone’s total portfolio has reached the highest value ever.
ATLATL stands for ‘all-time-low’ and is the opposite of ATH, or ‘all-time-high’. ATL is used to indicate that the price of a coin or the entire wallet of a person is at the lowest level ever in terms of value.
Atomic SwapA technology that allows a user to exchange two different coins directly for each other without a third party or intermediary.
AuditAn audit is an official examination of an organisation’s accounts. The organisation’s records are examined and checked to ensure that they fairly and accurately reflect the transactions that have been made. This is normally carried out by an independent body. If it is done by employees themselves, it is called an internal audit.
Bag HolderA bag holder is someone who has a position in a certain coin, which is not worth much more. Often this is accompanied with the hope that this position will be worth something again.
Bear / BearishA ‘bearish’ market means that the complete (crypto) market trend is in a downward spiral. The opposite of ‘bearish’ is called ‘bullish’.
Bear TrapA bear trap is the opposite of a bull trap. This is when there are false signals on the price chart that a downtrend is coming. This can be a trigger for traders to take a short position. However, the price will rise again and the traders are lured into the trap and lose money with their short positions.
Bear flagA bear flag is an indication on the price chart that the market is probably going to start a downwards trend. This is the opposite of a ‘bull flag’.
BearwhaleA ‘bear whale’ is someone with a very large position in a coin, but with a ‘bearish’ vision. The bear whale will take every opportunity to sell parts of his position, which prevents the price from rising significantly.
BECH32Bech32 is a Bitcoin ‘Segwit’ address format. These addresses always start with ‘bc1’ and therefore ‘bech32 addresses’ are also known as ‘bc1 addresses’. The format has not yet been implemented very widely in wallets, so it is not recommended to use it until that situation changes.
BIP (Bitcoin Improvement Proposal)BIP is the abbreviation of ‘Bitcoin Improvement Proposal’. This is a standardized way to introduce functions and other issues, such as design issues. Because of the decentralized nature of Bitcoin and therefore the lack of a formal structure, this system is used to improve Bitcoin in a well-founded and consensus-driven way.
Bitcoin (BTC)Bitcoin is the very first, best known and currently the most valuable digital coin. Read more in this article with an explanation about Bitcoin.
Bitcoin (unit of currency)The bitcoin is the very first cryptocurrency invented in 2008 by an anonymous developer named Satoshi Nakamoto. It can be divided up to 8 digits after the comma. The smallest one is called a satoshi (0.00000001 BTC).
Bitcoin ATMA ‘bitcoin ATM’ is a physical ATM where you can exchange fiat money for cryptocurrencies and vice versa. Of course you can get bitcoin in these machines, but often you can also get Ethereum or Dash.
Bitcoin Cash (BCH)The result of a so-called ‘Hard Fork’ of Bitcoin. Bitcoin Cash (BCH) makes it possible to generate more transactions per second than Bitcoin. In November 2018, Bitcoin Cash itself also had a ‘Hard Fork’, from which ‘Bitcoin Cash SV and Bitcoin Cash ABC emerged.
Bitcoin PizzaThe first known Bitcoin purchase ever. At the time this pizza was bought for 10.000 bitcoins, which would be worth a fortune today.
BitconnectBitconnect (BCC) is a cryptocurrency with the ticker BCC. It was a very popular altcoin in 2017, because it promised a daily yield of 1%. They said they could live up to this due to a very successful trading bot. It used a ‘multilevel marketing’ method to attract new buyers. The company behind this coin was suspected of Ponzi fraud and was investigated by the American regulators. Eventually the company could not provide any evidence and closed its doors in January 2018. The price of the coin plummeted dramatically afterwards and it is now no longer tradable.
BitgrailBitgrail’ is an Italian cryptocurrency exchange. In February 2018 hackers have stolen Nano coins (formerly known as RaiBlocks) worth more than 170 million dollars.
BitpayBitpay (Bitpay.com) is a US-based bitcoin payment provider. It enables (online) stores to accept Bitcoin and Bitcoin Cash as a means of payment without the risk of price fluctuations. This is achieved by converting the payments directly and automatically to fiat money.
BittubeBitTube is a video platform without ads in which publishers can make money with their content. It can be seen as an alternative to Youtube. Sometimes videos on Youtube are demonetized by the platform, cause some to switch to or republish it on BiTube.
BlockA block is a file in which blockchain data, like transactions, is stored. Each block relates to it’s previous block, making it a chain. This is why it’s called ‘Blockchain’. Most blockchains have a predetermined maximum file size per block. The first block in a blockchain is called the ‘genesis block’.
Block explorerA block explorer is an online service to track blockchain transactions. It usually is a website where you can see all the new blocks that are being created. You can also search for transactions and wallet addresses. The best known block explorers are blockchain.info for Bitcoin and etherscan.io for Ethereum.
Block HeightThis is the number of blocks that make up the distance between the current block and the first block ever created in a blockchain, which is called genesis block.
Block RewardThe block reward is the payment that is offered to the node that is securing the blockchain. In the case of Bitcoin, which is has a Proof-of-Work consensus algorithm, these would be the miners. The payment is in the form of the native cryptocurrency of that blockchain. The amount is a predetermined reward per block, but often that is supplemented with the fees that are paid for the transactions that block contains. For Bitcoin the current block rewards are cut in half every four years. This is called the ‘halvening’.
Block sizeThe block size represents the size of each block in a blockchain. Transactions are stored in a blockchain block. For Bitcoin this is limited to 1MB per block. More transactions can be stored when the blocks are larger. This is the case with many altcoins. There are also disadvantages to large blocks, such as required storage space. In addition, it can become less attractive for miners if the transaction fees become too low as a result of large blocks.
BlockchainThe blockchain is a technique that makes it possible to safely store data in a decentralized way. This data can be money, but it could be other data as well. Also read this extensive explanation about blockchain.
Bollinger BandBollingerbands is a tool for a crypto or stock trader. The bollingerband consists of three lines, usually based on a ‘simple moving average’. The middle line is a ‘simple moving average’ and the outer lines are a multiplication of the middle ‘simple moving average’. A detailed explanation can be read in this article about ‘Technical Analysis’.
BotA ‘bot’ is an autonomous program on a network, such as the Internet, that can interact with systems or users. It is often designed to automate certain manual tasks. Bots are often used in Telegram chat groups to prevent spam.
Bounty programBounties are simple tasks of jobs by the team behind a coin. These can be as simple as joining a Telegram channel or by (re)tweeting. It could also be a bit more difficult like a translation job for example. The participants receive rewards in the form of coins in exchange for completing these bounties.
Brute Force Attack (BFA)A brute force attack is an attack performed by a hacker on a password or pin number. An automated script tries to execute as many different combinations as possible as quickly as possible, until the password or pin number is guessed.
Bull marketA bull market is the condition of a financial markets where the prices of securities are rising or expected to rise. This concept can now also be applied to the crypto market. Prices rise and fall every day, but the term bull market is only reserverd for longer periods of rising prices. This can be a duration of months or even years. The opposite of this is called a ‘bear market’.
Bull TrapA bulltrap is a false signal (during a bear market) that the price will go up again. However, after a short rise, the price drops again sharply.
BullflagA bull flag is an indication on the price chart that the market is probably going to start an upwards trend. This is the opposite of a ‘bear flag’.
BullishA bullish market means that the complete (crypto) market is in an upward trend. The opposite of bullish is bearish.
Candlestick ChartA ‘candlestick chart’ is a way of representing the price of a tradable effect. One candlestick stands for a certain period (a day, an hour, a quarter of an hour, etc.). The ‘body’ of the candlestick represents the opening and closing price. The peaks indicate the highest and lowest price in the time span.
CentralizedCentralised means that one particular organisation has control. For example, governments and companies are centralised. The opposite of centralised is decentralised, such as the Internet and the blockchain.
Chain SplitA chain split is another word for ‘fork’.
Circulating SupplyThe total number of freely tradable coins of a cryptocurrency or token.
CMCCMC is the abbreavation of Coinmarketcap. This is one of the first websites to list cryptocurencies and exchanges.
CoinA Coin is the umbrella term for cryptocurrencies and tokens.
CoinbaseCoinbase is cryptocurrency broker. You can directly buy Bitcoin, Bitcoin Cash, Ethereum and more with fiat currencies. It is based in the United States of America and has over twenty million users worldwide.
Cold StorageCold storage refers to storing cryptocurrency on a place where the private key cannot be accessed via the internet. This can be done on a hardware wallet, paper wallet or software wallet in in offline environment.
Cold WalletA cold wallet is a wallet for storing cryptocurrency where the private key is not exposed to the Internet.
ConfirmationA new transaction on a blockchain must first get a confirmation before it has been definitively processed. This is done by one of the consensus mechanisms, such as proof-of-work and proof-of-stake. The more confirmations, the greater the chance that the transaction is valid and a double spend is no longer possible.
Contract addressA contract address is the address used by the smart contract on a DApp platform. For Ethereum each token is based on the ERC-20 standard and has a contract address.
CorrectionA correction is a price movement (up or down) after the price has risen or fallen. This is caused by traders that want to cash in their profits. This occurs with both long and short positions.
CryptoCrypto is the generic term to refer to cryptocurrency, the crypto market and the blockchain industry.
CTCT is the abbreviation of ‘Crypto Twitter’, which refers to the global group of crypto enthousiasts that is active on Twitter talking about everything blockchain related. It can be used in a sentence like ‘I miss the saltiness of CT’, meaning that not many people are as negative as during a heavy bear market.
CypherpunkSomeone who advocates a broad use of cryptography and technology to promote privacy with the aim of social and political change is called a ‘Cypherpunk’. These people form an active community that has been around since the 1980s. It is possible that Bitcoin was developed by ‘Cypherpunks’.
DCA (Dollar cost averaging)DCA is the abbreviation for Dollar-Cost averaging. This is an investment technique, where a fixed amount in dollars is used to make an investment. Not the entire amount is used in one time, but according to a fixed schedule, no matter what the price is. With this method you can never buy on the top, but also not on the bottom. Within crypto the term is also used to indicate that someone buys low after a huge price drop of a coin.
Dead Cat BounceA ‘Dead Cat Bounce’ is a term used in finance and now also in the crypto markets. It refers to a brief price recovery before a major crash.
DEVCONDEVCON stands for ‘Developers Conference’. This is a meeting of software developers, usually organized by a company. The latest developments are discussed here. At Apple it is called WWDC (the Apple Worldwide Developers Conference). Within blockchain, the annual Ethereum Devcon is best known.
DEXA DEX is short for Decentralized Exchange. This is an exchange where people can trade cryptocurrencies and tokens without the need of a middleman. It is usually run by code in a ‘smart contract’. The transactions are generally written to the blockchain, which makes a DEX by default slower than a centralized exchange that uses fast databases. The main benefit of a DEX is that nobody, but yourself, holds the private key to the funds. Even though a DEX will not have a middleman regarding the trades, there are people managing the exchange and the website if it’s not software based. Therefore it’s not 100% decentralized in fact. The level of decentralization differs per DEX. Use the filters in this list with exchanges to find each DEX.
Digital IdentityA digital identity refers to information used by computers to represent a real world entity, like a person or an organisation. It could also represent an application or device. It can be seen a set of attributes related to the entity. This digital identity is used to for authentication and verification in order to access systems on a network, such as the Internet. There are several developments going on in the blockchain world where a digital identity plays a crucial role. For example in the Elastos ecosystem.
DildoA dildo, in crypto terms, refers to a large rise in the price of a coin. At the moment that a sudden rise in the price takes place, a ‘candlestick’ in a ‘candlestick chart’ shoots up. According to some people this phenomenon looks like a dildo.
DipA ‘Dip’ is a rapid decrease in the value of, for example, a cryptocurrency or an entire market. It is less strong than a ‘crash’ and can also quickly recover to the old price level. Also read this extensive explanation about a ‘dip’.
DividendsDividends are amounts of money that is periodically paid to reward people for holding a certain security over a certain period of time. In cryptocurrency, rewards are often paid on blockchains with a DPoS or PoS concensus algorighm, which can be seen as dividends, but aren’t legally declared dividends. For security tokens with revenue sharing of the platform, this is more likely to be seen as real dividends.
DYORDYOR is a term, which you often see in disclaimers and in chat groups regarding the cryptocurrency market. It stands for ‘Do your own research’. It is a quick way of saying that no financial advice is given and you have to do your own research before you make an investment.
EEAThe EEA (Enterprise Ethereum Alliance) is a partnership as part of the Ethereum Foundation. It connects Fortune 500 companies, start-ups, academics and technology suppliers with experts regarding Ethereum.
Emission RateThe term ‘Emission’ is in relation to blockchain, often used as ‘Emission Rate’. This is the speed at which new coins are released and thus increases the ‘circulating supply’. This speed is known in advance by the design of the blockchain and can be shown in a graph, the ‘Emission Curve’.
ERC-20ERC20 coins are all tokens on the Ethereum blockchain. These coins are also supported by most Ethereum wallets.
ETFETF is an abbreviation for ‘Exchange-Traded-Fund’, or a listed fund on a stock exchange. This is a tradable product (security) that follows the price of an underlying asset. Examples are an equity index, a basket of certain securities, bonds and commodities. There are several applications for a Bitcoin ETF, but none of these have yet been approved by the SEC in the United States of America.
Ether (ETH)Ether is the native cryptocurrency of the Ethereum blockchain. According to their website it is a necessary element (a fuel) for operating the distributed application platform. It is a form of payment made by the clients of the platform to the machines executing the requested operations. The transaction fees for using the platform are paid for in Ether and measured bsed on the gas limit and gas price.
EthereumEthereum (ETH) is consists of one blockchain where both its own transactions (Ether) and those of numerous other coins (tokens) are recorded. Ethereum distinctive feature is the so-called “smart contract”. The programming language of Ethereum is written in such a way that programmers can write their own programs based on the Ethereum blockchain. Read more about ethereum in this article: ‘What is Ethereum?’
Ethereum Classic (ETC)Ethereum Classic (ETC) is cryptocurrency that came to existence due to a hard fork of the Ethereum blockchain. After a major hack where over 200 million USD worth of Ether was stolen, the Ethereum foundation decided to rollback the blockchain. Part of the community didn’t agree with this decision and kept mining the original chain, which was then called Ethereum Classic.
ExchangeAn exchange is a place where you can buy and sell different kinds of cryptocurrencies and tokens. These coins can then be deposited back to a wallet, which supports the coin. Sometimes it’s also possible to convert it to dollars. This is an overview with all exchanges.
FAFA is the abbreviation of ‘Fundamental analysis’. It is a method of evaluating an investment, such as a cryptocurrency, by looking at its intrinsic value. Related economic and financial factors are also examined.
FiatFiat money relates to all currencies issued by governments. Examples are the Euro (EUR), American dollar (USD) and Chinese Yuan (CNY).
Fiat CurrencyFiat currency or also simply called fiat is money issued by a government or organizations that are allowed to issue it, like banks for example. It doesnt have any value by itself and is for decades not backed by gold anymore either. It instead remains value based on the trust by the people. Once the trust goes away it will decrease in value and could eventually cause hyperinflation.
FlippeningThe FlippThe Flippening is a term used to describe the moment that a coin becomes more valuable than Bitcoin. Ethereum has been the second most valuable coin for most of the time, but so far it’s market cap has been always lower than Bitcoin’s.
FOMOFOMO is the abbreviation for ‘Fear Of Missing Out’ and is used in regard to people who are afraid they are missing the boat and therefore take a position in a coin.
FreecoinerA person who owns cryptocurrency, but has not bought it himself. The coins are obtained for free as a gift, airdrop or through affiliate programs. This term is coined by Blockspot.io (Tweet).
FUDFUD is de afkorting voor ‘Angst, onzekerheid en twijfel’. Een artikel of post kan worden gezien als FUD en kan de prijs van een coin doen dalen.
FUDsterA ‘Fudster’ is a person who spreads wrong information in order to negatively influence the price.
FutureThe term ‘futures’ comes from the financial markets. It is a financial contract, which obliges the buyer to buy a security or the seller to sell it. This has to be done on a predetermined date and price in the future. It is a trading instrument on the stock exchange and is used for various underlying instruments, including Bitcoin nowadays. Some contracts require the physical delivery of the underlying instrument and others are settled in cash.
GasGas’ or ‘Wei’ is used to execute a transaction on the Ethereum blockchain. The used ‘gas’ can be seen as ‘fee’ for the ‘miners’. The more ‘gas’ you set, the faster your transaction will be completed. Because of the higher reward, more miners will be incentivized to process the transaction earlier.
Genesis blockThe ‘Genesis Block’ is the first block in the blockchain of a cryptocurrency.
GIFA GIF is the abbreviation of Graphics Interchange Format. It is an image format that allows an animation. These can be a couple seconds long and are often used in the cryptocurrency chat groups and Twitter. Most of the time they are used in a funny way.
HODLHODL is a wrong spelling of ‘hold’. This spelling mistake was once made by someone accidentally or intentionally on a forum. Since then, this term has been used to indicate that you keep or should be holding your position.
ICOAn ‘initial coin offering’ (ICO) can be compared a bit with an IPO. Investors get an opportunity to invest in a certain coin for the first time. The difference with the stock market however is that a company has to meet all kinds of requirements before the IPO can take place. The market of ICO’s is much less regulated. Therefore, it happens more often that an ICO is fraudulent.
JOMOJOMO is the abbreviation of ‘Joy Of Missing Out’ and refers to a trader who is happy that he has not taken a certain position and is often said after a considerable price drop.
KYCKYC is an abbreviation for ‘Know Your Customer’ and was created to combat money laundering via cryptocurrencies. At almost every ICO currently it is mandatory to prove that you are who you say you are. This is also regularly requested at crypto exchanges.
LamboLambo is an abbreviation of Lamborghini, a fast Italian car. In the crypto world this is often used to ask when the price is going to rise sharply, so that he can pay for such a car. In general, it is written: ‘When Lambo? An alternative is: ‘When Moon?
Ledger BlueA ‘Ledger Blue’ is a Hardware wallet in the shape of a small tablet and is made by the French company Ledger SAS. It is the successor of the popular Ledger Nano S.
Ledger Nano SA ‘Ledger Nano S’ is a popular Hardware wallet in the form of a usb stick, made by the French company Ledger SAS.
Limit OrderWith a ‘limit order’ you give the order to the stock exchange to buy an x number of coins for price x. When ‘filling’ the order, the price can’t differ with the order you gave. The number of coins can however differ, but never more than the order.
MACDMACD stands for ‘Moving Average Convergence/Divercence’ and is a tool traders use to see what the trend is in a price. The instrument consists of 2 parts. An exponential moving average (EMA), which is subtracted from another EMA (usually 26 and 12 days) and an EMA which is calculated with a less number of days (usually 9), this last EMA is also called the signal line. A common trading signal is that as soon as the signal line breaks the other line from below, a buy order is placed and as soon as the line is broken from top to bottom, a sell order is executed. Read more about this subject in this article.
Market CapThe marketcap shows the total value of all coins together. Many beginners make the mistake to only look at the unit price of a coin to decide if the coin in question is worth much or little. The marketcap is a more suitable instrument for this.
Market OrderWith a ‘marketorder’ you give the order to buy or sell a coin at the best price at that moment. The chance that an order will be executed is almost 100 percent, because there are almost always buy or sell orders. With coins with little volume the marketorder is a dangerous order because your coins may be sold at a very low price, or the opposite happens: you buy your coins at a very high price.
Maximum supplyThis is the maximum number of coins that will exist for a token or cryptocurrency. If there is a max supply defined, no more coins can be created. ‘Burned’ coins are part of this supply, so therefore it is always larger than or equal to the total supply. For Bitcoin the maximum is set to 21 million.
MediumMedium (medium.com) is a platform for online publications. It is especially popular for blogs and news and is used by many coins to share the latest developments and newsworthy events.
MEWMEW is the abbreviation for MyEtherWallet. This is one of the best known wallets to store Ether and tokens on the Ethereum blockchain.
Microbitcoin (uBTC)Microbitcoin is the name for the abbreviation uBTC. This represents one millionth of a bitcoin and is commonly written as 0.000001 BTC.
Millibitcoin (mBTC)Millibitcoin is the name for the abbreviation mBTC. This represents one thousandth of a bitcoin and is commonly written as 0.001 BTC.
MinerA ‘miner’ is a person or organisation that uses computing power (CPU, GPU or ASIC) required to find the next blockchain block. Once the answer is found, a new ‘block’ is generated, in which a number of transactions are permanently stored. The miner is rewarded with the predefined number of cryptocurrencies. Usually this is complemented with the transaction costs, which are paid by the user.
Moon (Mooning)Mooning’ is used to describe a rapid increase in price of a cryptocurrency or token. It’s often used in chats like ‘Coin X is mooning!’. It is also used to show the desire of a price increase by saying ‘When moon?’ or alternatively ‘When lambo?’.
Mt GOXMt. Gox (or Mount Gox) was the largest and most important exchange for Bitcoin in its early years. However, it went bankrupt on February 28, 2014. The cause, according to the company, is a hack, in which Bitcoins worth hundreds of millions of dollars were stolen.
NocoinerA person, who does not possess any cryptocurrency, is also called a nocoiner.
OrphanAn ‘Orphan’ or ‘Orphan block’ is a block in the blockchain that is not further built on. Blockchain blocks are usually generated by ‘mining’ or ‘staking’; occasionally two blocks are created simultaneously by different computers. Only one of the two can be valid on the blockchain, so the other expires and becomes an orphan block.
Paper walletA paper wallet is an alternative to a hardware or software wallet. It is in fact a piece of paper or a PDF containing the information to access the cryptocurrency in that wallet. It normally consists of a ‘public key’ and a ‘private key’.
Permissioned blockchain / ledgerAnyone can mine Bitcoins, because it is a public blockchain. This is not the case with a permissioned blockchain. There is a layer above it that determines which entity is allowed to write transactions in a block. The <ahref=”https://blockspot.io/coin/xrp”>XRP coin from the company Ripple Labs, is an example of such a blockchain and has CGI, MIT and Microsoft as approved entities for example. These are called ‘transaction validators’.
PhishingPhishing is when hackers try to get a user to give up personal information such as login and password or credit card details. This is often done using a fake website or application, which is very similar to the original. This is common in cryptocurrency, because only the private key is enough to steal all coins.
PoA (Proof of Authority)PoA stands for ‘Proof of Authority’. This is a validation method to process transactions and blocks in a blockchain only by approved accounts. These are known as ‘validators’ and run specific software to store the transactions in blocks. Since the identity is linked to the system, it can contribute to more trust.
PoB (Proof of Burn)PoB stands for ‘Proof of Burn’. This is a method to invest in a new cryptocurrency by destroying coins of an existing one, which has been given the term ‘Burning’ in the crypto world. This is done by sending coins to a special, unusable address. That’s the usually the only way to destroy coins within a blockchain. This method can also be used when a coin gets a relaunch with a new team and a new coin.
PoD (Proof of Developer)PoD is the abbreviation for ‘Proof of Devloper’. This can be any verification that can serve as proof that a cryptocurrency was created by a real software developer. This method is mainly used when launching a new cryptocurrency to prevent scams.
Pre-SaleA ‘Pre-sale’ the phase of an ICO before the ‘Public-sale’. During this phase it is possible for investors to make a first investment. The tokens often have a lower price than during the public sale. The money raised is generally used for further development, financing of the public sale and as a method to explore the market’s enthusiasm. It is possible that the ICO itself is not successful and a ‘refund’ is not always guaranteed. This also makes a pre-sale more risky than a public sale.
Privacy coinA privacy coin is a cryptocurrency, which focuses on security and anonymity of the users. Some examples are Pivx, Dash, and Monero. There are several methods to make a transaction anonymous.
QR CodeA QR code is a type of barcode in the form of a square. The letters QR stand for ‘Quick Response’. The code contains many dots, a few small squares and sometimes a small logo in the middle. This is different from most other barcode types, which are rectangular with lines. A QR code can therefore contain much more information. Within the crypto world it is often used to make a ‘wallet’ address scannable. This speeds up the process of transferring crypto and prevents errors.
Raiden NetworkThe ‘Raiden Network’ is a way to make the Ethereum blockchain scalable, for example by making off-chain transactions possible. It is a separate ERC20 token and the team held an ICO in 2017.
RebrandRebrands already happened many times in the crypto space. It means that the coin changes their name, logo and sometimes their vision. This can be done for several reasons. It could be a better fit to what they are trying to achieve, or the old name has a bad reputation. Rebranding can be used as an attempt to make people forget it. Sometimes it even causes hype where the price goes up. The ‘ticker’ sometimes stays the same though, because it’s more practical in regards to third parties like wallets and exchanges.
Refund addressA ‘Refund address’ is a wallet address that a user sometimes has to enter in order to receive a chargeback. This is often necessary for coin conversion websites in case a transaction fails.
REKTThe term ‘REKT’ is a comes from the word ‘Wrecked’ and is used in the crypto community to indicate enormous losses.
Replay attackThese are attacks on a blockchain after a fork. When you try to send coins on one of the chains there could be an attempt to mirror the action on the other chain. So when sending 1 BTC it could happen that 1 BCH is also sent. Bitcoin Cash has implemented a replay protection method, but not all (Bitcoin) forks have this, which could be done on purpose. This is a risk when claiming hard fork coins.
RoadmapA roadmap is a plan with that show what an organization or team wants to achieve. This usually contains the deliverables for the year, but sometimes its even a couple years in the futures. In can be as detailed with specific dates or months, but it can also be broader and based on quarters. In crypto it’s a common practice that the team shares this roadmap publicly in order to give insight into the coming features and when those will be realised.
ROIROI is an abbreviation for ‘Return on Investment’. This is an indicator to show the ratio between your initial investment and the return on it. The formula is ((current value – investment) / investment) x 100. Example: if 1 Ether deposit in an ICO total has become worth 1.6 Ether, then the ROI is 60%.
SatSat is the abbreviation of Satoshi.
SatoshiA satoshi (sat) is the smallest amount of bitcoin and is named after the creator Satoshi Nakamoto. It is the eighth decimal place, so 0.00000001 BTC
Satoshi NakamotoSatoshi Nakamoto is the alias of the creator of Bitcoin, who wants to remain anonymous. Nobody knows who it is. It could be a person, a group, a company or even a government. It is quite likely that it is a person, because there are people who have communicated with him or her via e-mail.
ScamA ‘Scam’ is a fraudulent scheme that is performed by a dishonest individual, group or company. The goal is to get money or something else of interest like personal information or in the case of cryptocurrency the ‘private key’.
ScammerA scammer is a person who performs a scam.
SECSEC is the abbreviation of Securities and Exchange Commission. This is an independent government organization of the United States of America. The SEC holds the primary responsibility regarding the financial markets. They enforce the federal securities laws, propose new rules and regulate the US financial markets.
Segregated Witness (SegWit)SegWit is a solution to make Bitcoin more scalable with the goal of faster transactions at lower costs. The use of SegWit required a ‘soft fork’ which took place on 21 July 2017. Altcoins like Litecoin, Digibyte or Vertcoin have also implemented SegWit in their Bitcoin-based blockchain.
ShillingShilling is when someone is promoting a coin or ICO in a subjective way. This is sometimes just out of enthusiasm and sometimes just to convince as many buyers or investors as possible to join in with the aim of having as much profit as possible when the price goes up.
ShitcoinA Shitcoin is any coin, which is badly rated by the one who talks about it. So it can be any altcoin, but also Bitcoin. The reason given could be a lack of innovation, poor communication, slow development or another coin is considerably better according to that person.
SlackSlack is a cloud-based software for team collaboration. It became popular among coins in 2016 and 2017 to create a place where fans can discuss the coin and interact with the team behind it. Though it’s not very suitable for large groups of thousands of members in it’s free version. This often caused problems where new people weren’t able to join. Nowadays a lot of coins have moved their community to Telegram and Discord.
SoliditySolidity is a programming language for writing or implementing ‘Smart Contracts’ that run on the Ethereum blockchain. Several Blockchains now support this new language.
Stable CoinA ‘Stable Coin’ is a coin with extremely low volatility and tries to peg to fiat money, such as the US dollar, or commodities like gold. A stable price is also the purpose of these coins to temporarily deposit money or to keep the price of blockchain services the same for the buyer. It is also widely used by ‘traders’ to benefit from the price volatility of coins.
StakingStaking the process that belongs to ‘Proof-of-Stake’.
SteemitSteemit is a social media platform that runs entirely on the Steem blockchain. The coins give the user the opportunity to promote messages. The coins can be bought on an exchange, but can also be earned within Steemit by actively contributing in the form of new messages or reactions to existing messages.
SwingA ‘Swing’ is a zigzag movement of price. A ‘Swingtrader’ is someone who makes intensive use of it to get more coins.
TATA stands for technical analysis. This is used to analyze the graph of a cryptocurrency or stock with different indicators. This gives an investor or trader more justification for the choice to buy or sell. The different indicators are explained in this post about TA.
TankingTanking stands for a decrease in value. If a cryptocurrency ‘tanks’, the price drops considerably. This can have several causes on a fundamental level or when an important cross in a technical analysis is formed.
TelegramTelegram is a messaging app that can be used on mobile and desktop. It is very popular in the crypto community. Most coins have a telegram channel, where interested people can join and discuss the developments of the coin. You can join as many channels as you want. It is abused a lot though by scammers, who send out links and viruses. But since Telegram supports advanced bots, this can be tackled easily. The bot is also often used to welcome new users or for sending cryptocurrency tips to each other.
TetherThe Tether is often abbreviated as USDT on exchanges. This is a non-government regulated ‘stablecoin’ with a value of around 1 US dollar. The company behind this coin claims that every Tether in circulation is covered with real dollars on their bank account.
The FlippeningThe moment that another cryptocurrency has a market value greater than Bitcoin is called ‘The Flippening’. This has not happened yet.
TickerA ‘Ticker’ is an abbreviation of, among other things, shares on the stock exchange. It consists of a few letters. In the crypto world this system is also used. In the case of shares, a unique ID has also been developed, the so-called ISIN code. Such a system does not yet exist for crypto. It happens a ticker exists several times for different coins. Therefore it is extra important to check the name before placing a buy or sell order.
To the moonThis expression is common in cryptocurrency chat groups and forums. It is used to communicate the desire for a huge price increase. For that purpose they say ‘When Moon?’. It is also used at times when the price of a coin is rising rapidly. In those cases the phrase ‘To the moon!’ is common.
TORTOR is an abbreviation for ‘The Onion Router’. Onion routing is a method to send data anonymously over the Internet. The TOR Network consists of thousands of proxy servers on the Internet run by volunteers , which enables the routing. There are already cryptocurrencies that support ‘nodes’ on the TOR network.
Total SupplyThe ‘total supply’ indicates the amount of coins already in circulation, supplemented with the coins that are not tradable yet. So it only applies to coins already in existence. Thjis is different from the ‘max supply’, in which future coins are included. The total supply is greater than or equal to the ‘circulating’ supply’. It can consist of tradable and non tradable coins, such as reserved or not yet released coins for the team or investors.
Trading BotA trading bot is an algorithm that trades for a trader on a stock exchange or crypto exchange. Trading bots are used by both professionals and amateurs.
Transaction feeThe ‘transaction fee’ is the amount that has to be paid to execute transactions on the Blockchain. This fee is usually paid to the ‘Miners’, but sometimes they are burned. There are also a number of cryptocurrencies, where you don’t have to pay a fee.
Transaction IDAll transactions in the Blockchain, such as the amount, the address of the sender and recipient and the date of transfer, are provided with an identification, which is publicly accessible in the ledger of the Blockchain. This is the ‘Transaction ID’.
TrezorThe Trezor is a popular ‘Hardware Wallet’, which supports multiple blockchains.
USDTSee Tether for the meaning of USDT.
UXTOUXTO is the abbreviation of ‘Unspent Transaction Output’. The total balance of bitcoins on an address can be spread over multiple blocks in the blockchain. The unspent bitcoins have a UXTO attribute. By searching the blockchain for the UXTO’s, which belong to a ‘wallet’ address, the total spendable balance can be determined. This is displayed by the wallet when it is fully synchronised.
Vaporware (aka Vapourware)Vaporware is a term that comes from the software world to indicate announced, but not released or cancelled software. In the cryptocurrency world this also happens, but the term “Shitcoin” is more common.
Vitalik ButerinVitalik Buterin is a programmer of Canadian-Russian descent. He is the inventor of ‘Smart Contracts’ and co-founder of Ethereum.
WalletA ‘wallet’ is a place to store cryptocurrencies encrypted. There are several variants, such as a paper wallet, hardware wallet or software wallet. Each coin has one or more supported wallets. See here all wallets.
WhaleA ‘whale’ is someone with a very large position in a coin.
WhitelistA “Whitelist” is a list of approved participants, who may participate in an ICO or Pre-ICO. A ‘whitelist’ is not always used, but it is usually used to generate ‘hype’ and exclusivity for the ICO.
WhitepaperA ‘whitepaper’ is a document that is almost always written for the launch of a new coin by means of an ICO. All aspects of a coin should be explained here: how it is used, for what and sometimes also the price expectation. After the ICO new versions can be released if the situation changes.
Withdrawal addressDit is over het adres dat op gegeven moet worden om een cryptocurrency op te ontvangen bij een terugstorting (withdrawal). Deze term wordt over het algemeen door exchanges gebruikt. Meestal geef je hier je persoonlijke wallet address op, maar het kan ook het ‘deposit address’ zijn van een andere exchange.
XBTXBT is an alternative abbreviation for Bitcoin (BTC) and is the official ISO 4217 standard. It is country independent. The abbreviation for gold is XAU.
YellowpaperA ‘yellowpaper’ is a research document. It describes a more in-depth and technical analysis. The purpose of this document is to inform those involved and interested.