The cryptocurrency world, like most spaces related to technology, views the language people use in and around it evolve in record speed. So, consider this glossary CEDEX’s way of trying to keep you updated on some of the language you may run into in your research, across various mediums.
We will attempt to keep this section as updated and relevant as we can though we know its a losing battle… here we go anyway!
*These are in no particular order, as we will try to keep the list as current and as updated as possible.
HASH – Used to confirm virtual coin transactions, this is the act of performing a check on the data that is put out by a hash function.
DISTRIBUTED LEDGER – Virtual ledgers stored over a network of nodes that are decentralized; they can be both permissioned or private.
CRYPTOCURRENCY – Sometimes known as tokens, these are the digital representations of certain assets.
BLOCKCHAIN – A shared ledger on which the transactions are stored by adding new and modified blocks to the existing chain, from the “genesis” block, all the way to the newest one created.
MINING – The act of validating a transaction on the Blockchain. This is a necessity to keep the Blockchain functioning properly, so it is often incentivized by giving “miners” a reward, usually in the form of coins.
PROOF OF STAKE – An algorithm that earns rewards for you, based on how many coins you’re currently holding. The more you mine or invest in a coin, the more you stand to make from it.
SMART CONTRACT – A set of rules written in a programmable language onto the Blockchain, to be enforced by network participants.
WALLET – Essentially a file to contain private keys and would normally contain software to allow the viewing and creation of Blockchain transactions, for whatever Blockchain the wallet was designed for.
WHALE – A person that has control over a great deal of cryptocurrency or cryptocurrencies.
FIAT / FIAT MONEY – A form of currency that is established by governments and other such organizations, it has no real “use value” and only derives its value from it being maintained by the government or organization that issued it.
BULL MARKET / BEING BULLISH – A market on the rise, or person that expects the market to rise.
Bear market/being bearish – the opposite of a “bull”.
ALTCOIN – A cryptocurrency that is not Bitcoin or Ethereum (though some Bitcoin “purists” refer to Ethereum itself as an Altcoin).
EXCHANGES – Websites where people can buy, sell or exchange various cryptocurrencies.
ICO – Initial Coin Offering, the practice of a company/startup offering a certain amount of the coins it is issuing for sale to the general public.
FOMO – Fear of Missing Out – A sensation that if one doesn’t act quickly, one might miss out on something that will soon hit all time highs.
FUD – Fear, Uncertainty, Doubt – A sentiment that’s usually spread intentionally by individuals trying to damage the reputation of a person or entity.
PUMP & DUMP – A cycle describing the status of a coin becoming well known, thus leading to many people buying it, which in turn leads to a sharp rise in prices, soon followed by a crash, as many of those purchasers sell their coins.