Crypto Jargons

dictionary-Image by Gerd Altmann from Pixabay

51% Attack – A brute force attack on a crypto network. Conducted by directing more computational power than half (%51) of what the network currently uses, with the intention of manipulating the consensus mechanism (typically for gains made through double spending). Imagine this as a democratic voting procedure – majority always wins consensus.

Address – an alphanumeric string of characters that represent a reservoir/destination where crypto can be sent to and from

AirDrop – A method of distributing cryptocurrency in which market participants do not need to exchange their existing assets for a new one; but rather receive it based on some prerequisite factors (such as holding a parallel cryptocurrency)

Altcoin – An alternate coin, that is not Bitcoin.

API – Application Program Interface. A software that basically tells other software’s how they should interact with each other.

Arbitrage – the act of “risk-free” profiteering by trading an asset between multiple different markets.

ASIC – Application Specific Integrated Circuit.

ASIC Miner – mining equipment that is dedicated entirely for the purpose of mining. *(think unfair monopolization of the POW systems in crypto-verse)*

ATH – All Time High. Refers to the highest price ever reached by an asset.

ATL – All Time Low. Refers to the Lowest prices and asset has ever been at.

Bag Holder – A cryptocurrency trader / investor that is stuck holding large amounts of some crypto asset that have severely depreciated and cannot be sold back into the market for a relatively decent price.

Bear – Someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.”

Blockchain – Online management system which stores information on all cryptocurrency transactions.

Bull – A person that is optimistic and confident that market prices will increase, this person is also known to be “bullish” about the market or price.

Burning – A method by which tokens become unspendable (commonly by just being sent to an unspendable address) and thus serve as deflationary mechanism.

Centralized – Owned by and benefited off of by one party. A structure in which the involvement of is guaranteed by subjection to another party which explicitly owns the said object of interest. Think money(politically owned), data (owned by big tech companies), and so on.

CEX – Centralized EXchange. Just an abbreviation used to express centralized exchange without actually writing it out. But in and of itself, it is any Market exchange platform: NYSE, NADAX, the list goes on.

Circulating Supply – The price of a coin has no meaning on its own. However, the price of a coin, when multiplied by the circulating supply, gives the coin’s market cap.

Confirmation – validation of a transaction / series of transactions. In the Bitcoin blockchain, each individual transaction must be validated by 6 independent nodes in order to be considered as a true act.

Consensus – a brief, recurring state of the network that constitutes a widespread agreement on a subject. The term used to describe how a network conjugates in order to maintain a distributed anonymous method of guaranteeing the integrity of itself.

CryptoCurrency – A digital/virtual asset that is secured by advanced cryptography and by its nature not owned by any ONE entity

DAO – Decentralized Autonomous Organization. A collective of entities that converge on some unified concept and operate as one organism.

DApp – Decentralised application which runs on a peer-to-peer computer network.

Decentralized – Owned by no one entity. Ownership is spread out to whoever wants to join. Previously only thought to be objects classified as commodities (nobody actually owns gold [once you possess gold you owe nobody nothing for owning it] — {as opposed to a phone which no matter what you attempt to do some part will be monopolized on your needs, including but not limited to: charging it-electricity, using it-service providers, and so on}) and now is possible on a digital layer.

DeFi – the choice acronym used to reference to Decentralized Finance.

Deflation – the economic side effect of value accrual; when something is deflationary it is limited in supply and highly demanded, directly cascading into a self-fulfilling prophecy of Price Hike.

DEX – a Decentralized EXchange; the terminology used to quickly address and exchange that is decentralized.

Difficulty – a measure of the computational resources required to solve the hash of the next block. This is the methodology which helps the network maintain a 10 minute block time (adjusted automatically every 2016 blocks).

Double Spending – the malicious act of spending the same currency twice by subverting the networks hashrate and mining off-ledger. The entity that has to bear the price of such activities tend to be cryptocurrency exchanges.

Ethereum – An decentralised software platform for smart contracts.

ERC-20 – The most popular Token protocol for use on the Ethereum Network. Deciphered into: Ethereum request for Comments — 20 as in the request digital fingerprint (the numbers simply represent a unique identifier from its concurrent protocol brethren. Also known as a “Utility token”, its actual functionality on the ethereum network is “access/interactivity” to DAPPS.

FIAT Currency – what we know as the political denomination of money(s). Money that is backed by political positioning and global influential strength.

Flippening – a hypothetical event that happens within the crypto verse; in which: Bitcoin loses its first place dominance to Ethereum.

FOMO – Fear Of Missing Out. Commonly regarded as the driving force behind enormous bull rallies in times of bull markets — the huge parabolic explosions we so love (and profit from).

Fork – A network split. Usually happens when there is some necessary software code update that requires ditching the previous copy of the code (Hard & Soft)

FUD – Fear Uncertainty and Doubt. An abbreviation for the terminology used to refer to very dark and unsettling times regarding the future of something. An example would be: fake media propaganda saying that Bitcoin is dead because the Chinese government will ban its mining operations. What happened shortly after? Price went up. What is true today? It has been banned and partially unbanned in China. Who knows what the next round of Bullsiht is on the way — just be ready

Futures – A futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future.

GAS – the blockchain agnostic/universal term (gwei on Ethereum, gas on NEO, etc) used to refer to the micro payments that help coordinate transaction digestion.

Genesis Block – The first block created in a blockchain.

Halving – The procedure of reducing the mining rewards on a blockchain. For the Bitcoin network, this occurs once every 4 years or approximately the time it takes to mine 210,000 blocks. Starting at 50, the Bitcoin reward Halved to 25 in 2012, then halved again to 12.5 in 2016. Coming up, a halving to 6.25! (live countdown timer)

Hard Fork – A complete change to a cryptocurrency’s protocol. Usually a change in some very fundamental aspect of the code (such as the privacy protocol or consensus mechanism).

Hash – a fixed length string representing some mind of input data. In Bitcoin’s case, a hash is created from following a very specific set of instructions and points to previous data.
Hash Rate – The unit of measurement of a network’s processing power.

HODL– a misspelled version of HOLD. Once upon a time, in a crypto forum an enthusiast posted a status in which he accidentally wrote hodl instead of hold; It caught on like wildfire.

ICO – Initial Coin Offering. A crowdfunding mechanism that incorporates decentralization; by being able to host a “trustless” method of value transfer, entities can now go directly to the public and raise funds; as opposed to relying on some intermediary to mediate the process & touch the funding.

KYC – Short form for ‘know your customer’. The requirement that businesses must know the identity of their customers.

Lambo – Slang for the type of car that many crypto enthusiasts aspire to buy when their digital assets “moon” — or rise in value substantially.

Leverage – Money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows.

Limit Order – An order placed at a future price that will execute when the price target is hit.

Long – A situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later.

Market Cap – In the cryptocurrency market, the market cap is the total supply of a coin multiplied by the current price. It is used to illustrate a coin’s dominance in the entire cryptocurrency market.

Mining – the process in which nodes compete with each other to verify and publish transactions. For Bitcoin, mining would include compiling all previous block metrics with current ones and trying to solve a super complex computationally demanding puzzle.

Miner – the node/ node operator which chooses to participate in the gamefied/incentivized process of extracting bitcoin and securing its network.

Mining Pool – A group of miners that have unified their computing resources in order to distribute the mining rewards more consistently between its participants.

Minting – rewarding users with newly created coins for their participation in securing the network. More common with Proof-of-Stake cryptocurrencies.

Mooning – the verb used to identify the action of radical price growth.

Node – An interface which handles communication and private keys between wallets, on the Bitcoin network.

Orphaned Block – A valid block which is not a part of the blockchain. These are created when miners create valid blocks at a similar time.

Paper Wallet – a form of cold storage of cryptocurrency, where the private keys and the receiving address is printed out.

P2P – Peer-to-Peer. A structure of data distribution and information sharing where there exists no point of failure outside of the participant.

Private Key – one of the two Keys involved with all public cryptographic interactions. The private key is the key which proves ownership of an address, do not share this with anyone!

Public key – the key that is used in order to represent the counterpart of ownership of an address. This is the key that is shared with the public in order to receive funds at an address as well as backtrack the correlating addresses history.

Pump and Dump – Pump and dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements.

QR Code – Short form for ‘quick response’ barcodes which can be encoded with data.

REKT – Short form for ‘wrecked’ used to describe a bad loss after a trade.

Satoshi – the most micro unit of splitting a bitcoin, representing 0.00000001 of a Bitcoin.
Satoshi Nakomoto – The pseudonym/ entity that created and release Bitcoin + Blockchain + Distributed Ledger technology to the masses

Scalability – the extent to which a platform can be built upon and modified vertically, while sustaining its integrity and data flow. [If Ethereum can handle 20 transactions per second {onchain} but somebody trying to utilize the native ethereum chain for some sort of project that will require 200 transactions per second — we have a scalability problem. The project cannot scale to satisfy the need of the customer ((I used Ethereum as just an example — i love ethereum and have nothing against them))

Scamcoin/Shitcoin – the terminology created by the decentralized crypto community to refer to projects that are (as the name would have it) garbage/ dead end fakes.

SHILL – The act of unsolicited endorsing of the coin in public. Traders who bought a coin has an interest in shilling the coin, in hopes of igniting the public’s interest in that particular coin.

Short – A trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit.

Smart Contract/Self Executing Contract – algorithms that facilitate and enforce obligations without any outside intervention. Stored on the blockchain itself, a smart contract is an unalterable agreement that has specific logic operations akin to a real-world contract. Once signed, it can never be altered.

Spot – A contract or transaction buying or selling a cryptocurrency for immediate settlement, or payment and delivery, of the cryptocurrency on the market.

Stablecoin – A cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency.

Staking – Participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards.

SEC – Securities & Exchange Commission. The Organization / Federal body that is responsible for creating & up keeping a financial and economic legal framework.

Token – The ‘coin’ of a cryptocurrency which can be bought, sold, and owned.

Tokenomics – Merging the words Token and Economics; we are met with yet another crypto-cultural play on words. Used to address the metrics and token role within it’s ecosystem.

Wallet – a storage faculty for cryptocurrencies. A software that allows users to store their cryptocurrencies in a UI/UX friendly way. Abundant in formats; paper wallet, web wallet, desktop wallet, hardware, and mobile wallets.

Weak Hands – a term used by the crypto community, as well as traditional financial communities, to refer to participants of the open markets that cannot handle heavily volition markets and sell preemptively to market fruition. [little time investors whom fall victim to institutional manipulation and are easily “shaken out” of the market, usually for a loss.

Whale – A huge player who has a substantial amount of capital. Whales are often the market movers for small alt-coins due to their huge capital. They are believed to manipulate the market.

White-Paper – a report or guide that is used to inform the public of a project’s specifications. The equivalent of a business prospectus or plan.

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