Glossary of Terms: Bitcoin & Crypto

  1. Bitcoin – a decentralized digital currency that is based on a blockchain ledger system.
  2. Blockchain – a digital ledger that records and verifies transactions in a decentralized and secure manner.
  3. Cryptocurrency – a digital or virtual currency that uses cryptography for security and operates independently of a central bank.
  4. Altcoin – any cryptocurrency that is not Bitcoin.
  5. Mining – the process of solving complex mathematical equations to validate transactions on a blockchain and generate new cryptocurrency.
  6. Wallet – a digital storage space that holds your cryptocurrency.
  7. Exchange – a platform that allows users to buy, sell, and trade cryptocurrencies.
  8. ICO – Initial Coin Offering, a method of fundraising for new cryptocurrency projects.
  9. Smart contracts – self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
  10. Decentralized – a system or network that is not controlled by a central authority.
  11. Fork – a split in the blockchain that results in two separate and distinct chains.
  12. Hard Fork – a type of fork that is not backward-compatible and creates a new blockchain.
  13. Soft Fork – a type of fork that is backward-compatible and does not create a new blockchain.
  14. Hash rate – the speed at which a computer is able to solve complex mathematical equations on a blockchain network.
  15. Public key – a cryptographic code that allows users to receive cryptocurrency.
  16. Private key – a cryptographic code that allows users to send cryptocurrency.
  17. Cold storage – a method of storing cryptocurrency offline to protect it from hacking and theft.
  18. Hot wallet – a digital storage space that is connected to the internet and used for frequent transactions.
  19. 51% attack – a scenario in which a single entity controls more than 50% of the computational power on a blockchain network, allowing them to manipulate the ledger.
  20. FOMO – Fear of Missing Out, the anxiety or apprehension that one might miss out on an opportunity or event.
  1. FUD – Fear, Uncertainty, and Doubt, a tactic used to spread negative information or rumors about a cryptocurrency or blockchain project to create doubt and panic among investors.
  2. HODL – a misspelling of “hold,” which refers to the act of holding onto cryptocurrency rather than selling it, usually with the belief that its value will increase in the future.
  3. Satoshi – the smallest unit of Bitcoin, equal to one hundred millionth of a Bitcoin.
  4. Stablecoin – a type of cryptocurrency that is pegged to the value of a fiat currency or commodity to maintain a stable value.
  5. Token – a digital asset that is created and managed on a blockchain network, often used to represent ownership of a specific asset or as a means of payment within a particular ecosystem.
  6. Gas – the fee required to execute a transaction on the Ethereum blockchain.
  7. DeFi – Decentralized Finance, a movement that aims to create a decentralized financial system using blockchain technology, often involving the use of smart contracts.
  8. NFT – Non-Fungible Token, a unique digital asset that is stored on a blockchain and cannot be replicated or duplicated.
  9. DEX – Decentralized Exchange, a type of cryptocurrency exchange that operates on a blockchain network and does not require a central authority to facilitate trades.
  10. DAO – Decentralized Autonomous Organization, an organization that is run on a blockchain network and operates through a set of rules encoded in smart contracts, allowing members to govern the organization without the need for a central authority.
  11. Proof of Work (PoW) – a consensus algorithm used in blockchain networks that requires users to solve complex mathematical equations to validate transactions and create new blocks.
  12. Proof of Stake (PoS) – a consensus algorithm used in blockchain networks that requires users to hold a certain amount of cryptocurrency as collateral to validate transactions and create new blocks.
  13. Public blockchain – a type of blockchain network that is open and transparent, allowing anyone to join, validate transactions, and access the data on the network.
  14. Private blockchain – a type of blockchain network that is restricted to a specific group of users, often used for enterprise applications or internal business processes.
  15. Permissioned blockchain – a type of blockchain network that requires users to have permission to access and validate transactions on the network.
  16. Consensus – the process by which a network of nodes on a blockchain network agrees on the validity of transactions and updates to the ledger.
  17. Node – a computer or device that is connected to a blockchain network and participates in the validation of transactions and updates to the ledger.
  18. Gas limit – the maximum amount of gas that a user is willing to pay for a transaction on the Ethereum blockchain.
  19. Gas price – the amount of cryptocurrency that a user is willing to pay for each unit of gas used in a transaction on the Ethereum blockchain.
  20. Merkle tree – a data structure used in blockchain networks to efficiently store and verify large amounts of data.
  21. Byzantine fault tolerance – a property of blockchain networks that allows them to function even in the presence of faulty or malicious nodes.
  22. Immutable – a property of blockchain networks that makes it virtually impossible to alter or delete data on the ledger once it has been recorded.
  23. Whitepaper – a document that outlines the technical details and specifications of a blockchain project or cryptocurrency.
  24. Roadmap – a plan or timeline for the development and implementation of a blockchain project or cryptocurrency.
  25. Cryptography – the practice of secure communication in the presence of third parties, often used in blockchain networks to protect the integrity and privacy of transactions.
  26. Address – a unique identifier used in blockchain networks to represent a user’s public key.
  27. Block reward – the amount of cryptocurrency that is awarded to a node on a blockchain network for successfully validating transactions and adding a new block to the chain.
  28. SegWit – Segregated Witness, a protocol upgrade for the Bitcoin blockchain that increases the block size limit and improves the network’s scalability.
  29. Lightning Network – a layer-2 scaling solution for the Bitcoin blockchain that enables faster and cheaper transactions by allowing users to create payment channels off-chain.
  30. Smart oracle – a software program that allows blockchain networks to access and use data from external sources, often used in decentralized finance (DeFi) applications.
  31. Layer-2 scaling – a solution that aims to improve the scalability of a blockchain network by moving some transactions off-chain to a secondary layer, reducing the burden on the main blockchain.
  32. Atomic swap – a peer-to-peer trade between two different cryptocurrencies without the need for an intermediary or centralized exchange.
  33. Multi-signature – a security feature that requires multiple signatures or authorizations before a transaction can be executed, often used in high-value transactions on blockchain networks.
  34. Mining – the process of validating transactions and adding new blocks to the blockchain, typically done by nodes in exchange for block rewards and transaction fees.
  35. Fork – a split in a blockchain network, resulting in two or more separate chains with different transaction histories.
  36. Hard fork – a type of fork in which a blockchain network is split irreversibly, resulting in a new and separate blockchain with different rules and transaction history.
  37. Soft fork – a type of fork in which a blockchain network is updated with new rules that are backward-compatible with the previous version, resulting in a single chain with a shared transaction history.
  38. Consensus algorithm – a set of rules that govern the process by which a blockchain network reaches agreement on the validity of transactions and updates to the ledger.
  39. Altcoin – any cryptocurrency that is not Bitcoin.
  40. Initial Coin Offering (ICO) – a type of crowdfunding campaign in which a new cryptocurrency is offered for sale to investors in exchange for other cryptocurrencies or fiat currencies.
  41. Initial Exchange Offering (IEO) – a type of crowdfunding campaign in which a new cryptocurrency is offered for sale through a cryptocurrency exchange.
  42. Security token – a type of token that represents ownership in an asset, such as a company, real estate, or commodity, and is subject to securities regulations.
  43. Privacy coin – a type of cryptocurrency that prioritizes the privacy and anonymity of users, often using advanced cryptography techniques to obscure transaction data.
  44. DApp – Decentralized Application, an application that is run on a blockchain network and operates through a set of rules encoded in smart contracts, allowing for greater security, transparency, and decentralization.
  45. Gas token – a type of cryptocurrency that is used to pay for transaction fees on the Ethereum blockchain, with the added benefit of being able to be traded on exchanges.
  46. Stablecoin – a type of cryptocurrency that is designed to maintain a stable value relative to a fiat currency or other asset, often achieved through pegging the value to an external asset or using algorithms to maintain stability.
  47. Decentralized Finance (DeFi) – a movement that aims to create financial systems and applications that are decentralized, open, and accessible to anyone, typically built on blockchain networks.
  48. Yield farming – a strategy used in DeFi to earn cryptocurrency rewards by providing liquidity to a decentralized exchange or lending platform.
  49. Liquidity pool – a pool of funds provided by users that is used to facilitate trades on a decentralized exchange, often earning rewards in the form of trading fees or other incentives.
  50. Non-Fungible Token (NFT) – a unique digital asset that is verified on a blockchain network, allowing for ownership and provenance to be established and easily transferable.
  51. Tokenization – the process of converting real-world assets, such as art, real estate, or commodities, into digital tokens that can be traded on a blockchain network.
  52. Gas fees – the fees charged for executing transactions on a blockchain network, typically paid in cryptocurrency.
  53. Proof of Stake (PoS) – a consensus algorithm used in some blockchain networks, in which users can validate transactions and add new blocks to the chain based on the amount of cryptocurrency they hold and “stake” as collateral.
  54. Proof of Work (PoW) – a consensus algorithm used in some blockchain networks, in which users must solve complex mathematical problems in order to validate transactions and add new blocks to the chain, typically using specialized hardware.
  55. Centralized exchange – a cryptocurrency exchange that is owned and operated by a centralized authority, often requiring users to provide personal information and follow KYC/AML regulations.
  56. Decentralized exchange – a cryptocurrency exchange that operates on a blockchain network, typically allowing for greater privacy, security, and accessibility.
  57. Web3 – a term used to describe the next evolution of the internet, in which decentralized blockchain networks and applications will play a larger role in the way we interact with technology and each other.