Key terms to understand in crypto


- A decentralized digital ledger that records transactions in a secure and transparent manner.
- A digital or virtual currency that uses cryptography to secure and verify transactions, as well as to control the creation of new units.
- A digital software program that stores private keys used to access and manage cryptocurrencies.
- The process of verifying and adding new transactions to the blockchain using powerful computers and specialized software.
Public key
- A unique address used to receive cryptocurrency transactions.
Private key
- A secret code used to access and manage cryptocurrencies.
- The distribution of power and control away from a central authority or entity.
Smart contracts
- Self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.
- Initial Coin Offering, a fundraising method where new projects sell their underlying cryptocurrency tokens to investors in exchange for funding.
- Fear of Missing Out, a phenomenon where investors fear missing out on potential profits and rush into buying cryptocurrencies.


Fiat currency
- Government-issued currency that is not backed by a physical commodity, such as gold or silver.
- A unit of value or utility created and managed on a blockchain platform.
- A platform where cryptocurrencies can be bought, sold, and traded.
- A computer that connects to a blockchain network and helps to validate and transmit transactions.
Hash rate
- The speed at which a computer can solve complex mathematical problems in order to verify transactions on the blockchain.
- A split in the blockchain where a new version of the ledger is created, often due to disagreements among users or developers.
Private blockchain
- A type of blockchain that is controlled by a single organization or group of organizations.
Public blockchain
- A type of blockchain that is open to anyone and allows for transparent and decentralized transactions.
Cold storage
- A method of storing cryptocurrencies offline in order to protect them from hacking or theft.
- A type of cryptocurrency that is designed to maintain a stable value, often by being pegged to a fiat currency or commodity.


- A process by which all participants in a blockchain network agree on the validity of transactions and the state of the ledger.
Hard wallet
- A physical device used to store private keys and cryptocurrencies offline, often considered a more secure option than software wallets.
Soft fork
- A type of fork in which the changes made to the blockchain are backward compatible, meaning that older versions of the software can still validate new transactions.
Hard fork
- A type of fork in which the changes made to the blockchain are not backward compatible, meaning that older versions of the software cannot validate new transactions.
Hash function
- A mathematical function used in cryptography to convert input data into a fixed-size output (hash).
- A network architecture in which participants interact directly with each other, without the need for intermediaries.
- The smallest unit of a bitcoin, equivalent to one hundred millionth of a bitcoin.
- Any cryptocurrency other than bitcoin.
- A document that outlines the concept, technology, and objectives of a new cryptocurrency or blockchain project.


- Short for decentralized application, a software application that runs on a blockchain network and is not controlled by any central authority.
Proof of Work (PoW)
- A consensus algorithm used by some blockchain networks, where miners compete to solve complex mathematical problems in order to validate transactions and earn rewards.
Proof of Stake (PoS)
- A consensus algorithm used by some blockchain networks, where validators are chosen based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.
- The process of improving the capacity and efficiency of a blockchain network to handle more transactions and users.
- A technique for scaling blockchain networks by partitioning the data and transactions into smaller, more manageable subsets.
Lightning Network
- A layer-two scaling solution for the Bitcoin blockchain, designed to enable instant and low-cost transactions.
Non-fungible token (NFT)
- A type of cryptocurrency token that represents a unique asset, such as a digital artwork, and is not interchangeable with other tokens.
- Short for decentralized finance, a set of financial applications and services that operate on blockchain networks without the need for traditional financial intermediaries.
- Short for decentralized autonomous organization, an organization that is run by rules encoded as computer programs on a blockchain network.


Gas fee
- A fee paid to process transactions on a blockchain network, calculated based on the complexity of the transaction and the network congestion.
- The process of creating a new blockchain network by copying the code and transaction history of an existing blockchain network.
- The main blockchain network of a cryptocurrency project, where all transactions are recorded and validated.
- A separate blockchain network used for testing and development purposes, where real transactions can be tested without risking real cryptocurrency.
- A term used to describe a large holder of cryptocurrency who has significant influence over the market.
Market capitalization
- The total value of a cryptocurrency, calculated by multiplying the current price by the total number of coins or tokens in circulation.
P2P lending
- A form of lending in which individuals lend money to each other directly, without the need for traditional financial intermediaries.
- A service or technology that connects smart contracts to real-world data, enabling them to execute automatically based on external events.
Atomic swap
- A type of peer-to-peer trade between two parties in which cryptocurrencies are exchanged without the need for a centralized exchange.
Mining pool
- A group of miners who combine their computing power and resources to increase their chances of earning rewards for validating transactions on a blockchain network.

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