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Crypto dictionary

Crypto dictionary explaining the most common / important terms forming the cryptocurrency domain

A

Address are used to send and receive transactions on the network. These are hexadecimal strings that represent your unique identifier wallets in blockchain .

Airdrop in cryptocurrencies is the process of distribution to new or existing owners of a given currency, or wallets , where it is sometimes necessary to either own the menu or meet other requirements.

Altcoin (Alt) - all cryptocurrencies (digital currencies) created after Bitcoin are called altcoins.

Arbitrage - using unequal prices of a given object in different places / markets for a profit equal to the difference between these prices (in the absence of any related risks)

ATL (All time Low) - is the opposite of ATH, in other words the lowest value that the cryptocurrency reached for the whole period.

ATH (All time high) - the highest price of a given cryptocurrency in its entire history.

ASIC (Application Specific Integrated Circuit) - microchips are made for only one task, namely the extraction of a specific one cryptocurrencies (one that allows the use of brute force = the higher the power, the greater the profit from mining).

B

Bearish market - state when the market has a declining trend.

BIP (Bitcoin Improvement Proposals) translated suggestions for improvement Bitcoin , which can be submitted by anyone interested in improving the Bitcoin network.

Bitcoin (BTC) - the first digital currency launched in 2009 by a person or group under the pseudonym Satoshi Nakamoto.

Blockchain - distributed (decentralized) database or network that stores all cryptocurrency public ledgers

Blocks - are data packets that transfer permanently recorded data in blockchain .

Bullish market - a state where the market is on an upward trend.

C

Cold wallet - Digital currencies stored outside the Internet. Examples are a paper wallet, a hardware wallet. The reason for the existence of such types of wallets is greater security. The opposite is the so-called hot wallet.

Coin - one unit of digital cryptocurrency. It is often used as a synonym and a shorter term for a cryptocurrency.

Crypto-currency (cryptocurrency) - digital currency based on cryptography.

D

DYOR (Do Your Own Research) - means to do your own research or overview on a given topic or name.

DAO - (Decentralised Autonomous Organizations) in translation means Decentralized Autonomous Organizations - you can imagine them as corporations that can function without any human intervention (autonomy) and have moved all forms of control into uncorruptible business rules.

DAICO - Decentralized ICO - The operation of the ICO will be provided only by a smart contract that will work in the given blockchain . (First of all Ethereum , since the creator of the idea is Vitalik Buterin)

DAPP - (A Decentralized application) je open source aplikácia, ktorá operuje autonómne (bez zásahu človeka), má svoje uložisko údajov na blockchain , je vo forme takyvaných tokenov a operuje na protokole, ktorý dokáže nejakým spôsobom potvrdiť hodnotu.

Dip - the lowest point on the graph or the local minimum value cryptocurrencies . Also time for bargain shopping.

Dump - a significant drop in the value of a cryptocurrency or stock or commodity.

E

ERC-20 - Interface based on which new ones are created tokens based on Ethereum blockchain . In other words, a smart contract that implements a given ERC-20 regulation. Learn more about what the ERC-20 describes here.

ERC-223 - successor to the ERC20 standard. It should bring, among other things, cheaper transactions and, for example, the ability to select long-lost tokens to which no one has access. More info here and here .

ERC-721 is a standard token in the Ethereum network that allows you to produce only NFT tokens and forces developers to create and deploy a new smart contract for each new token. By comparison, the ERC-1155 token standard allows the creation of both NFT tokens and fungible tokens. It is not necessary to create and deploy a new smart contract for each token. Only one is enough.

ERC-1155 ERC-1155 is a token standard that allows you to create so-called Non-fungible tokens (NFT) as well as fungible tokens on the Ethereum network. The ERC-1155 token standard was created to function as an automata, where developers can deploy a single smart contract to create unlimited replaceable (identical) tokens as well as (unique) NFT tokens. By comparison, the ERC-721 token standard only produces NFT tokens and forces developers to deploy and create a new smart contract for each new token.

EP-5 - Similar to ERC20 or ERC223, this is a standard token but for Neo blockchain.

Exchange - a website with a digital exchange where they buy and sell cryptocurrencies .

F

FOMO (The Fear Of Missing Out) - emotion of fear of missed opportunity. It is often the cause of buying currency at its peak or selling at a loss.

FORK - A software update that results in a change that may be compatible or incompatible with the current software version. See hard fork, soft fork.

FUD (Fear, Uncertainty, and Doubt) - a mixture of emotions such as fear, uncertainty and doubt, caused by negative news from the world of cryptocurrencies. As a result of such panic, the price can often fall.

FUDster - is someone who spreads FUD media.

FIAT - official currencies issued by governments (EUR, USD, etc.)

Fundamental Analysis - analysis based on publicly available information to determine the future price cryptocurrencies / stocks ...

G

Genesis block - The very first block in blockchain .

H

Halving - is an event in which the division of rewards for the occupied occurs Bitcoin exactly half block. This event will also halve the inflation rate and also the speed at which new Bitcoins enter circulation. This happens once every 210,000 blocks extracted.

Hard Fork - software update that leads to a change that is incompatible with the current software version (older), which means that such an out-of-date node is not able to fully function with updated nodes (it may not be able to verify transactions, receive or send transactions, etc.). After the hard fort, there is always room for a new currency. This occurs when part of the network rejects the update and remains on the old version. As of this version, both networks live their own lives. If the network receives an incompatible update, we speak of a hard drive without a new cryptocurrency.

Hardware Wallet Hardware Wallet Trezor T, Trezor One, Ledger Nano X, KeepKey...

Hashrate - A number that indicates the speed of the pull, more specifically the number of hashes that the machine can resolve per second.

HODL - a term derived from the original HOLD means to hold and not to sell coins.

Hot wallet - wallet connected to the internet, for daily transactions. But because of the Internet, it is less secure.

Hype - mass enthusiasm not only around a cryptocurrency in order to make it visible on the market. The term is generally not tied to a crypto.

I

ICO (Initial Coin Offering) - initial public offering of digital currency before listing. It is similar to crowdfunding in the digital world.

K

KAICO - CryptoKami came up with their own idea of how to do ICO. It's a kind of competitor for DAICO. Although they are similar, they also offer different properties. You can read more about it here. .

Capitalization - all coins of a given cryptocurrency that are in circulation multiplied by the current value of the coin. You can read more about it here. .

Confirmation - The transaction is confirmed if it has been confirmed by a certain number of nodes (miners) in the network. This is a successful slashing of the transaction and its addition to the blockchain.

Correction - is the opposite movement, usually negative, usually a 10 percent drop in stocks or securities ... where the overvaluation of the price backwards is compensated. Corrections are temporary and interrupt the usually uptrend.

Consensus - is reached when all participating nodes agree to include the transaction in the blockchain.

KYC (Know your customer) - know your customer. The process where the customer (buyer) verifies his identity by filling in personal data and often also by uploading identification cards to the server.

M

Market cap - total value of all coins in circulation of the given cryptocurrency.

Mooning - state when the price rises. This is not necessarily an extreme increase.

Multi-signature - (multisig) Multiple signable addresses allow multiple parties to request more than one key to authorize a transaction. The required number of signatures is agreed upon when creating the address. Multi-signature addresses are much more resistant to theft.

N

Native token - Cardano allows you to create your own tokens in the Cardano network, which it calls native. Native because they do not differ in any special way from the original ADA token. In the case of ETH, the differences are between ERC-20 and ERC-721 tokens a ETH.

NFT (Non-fungible tokens) these are tokens that are not interchangeable. They are unmistakable because they are different. They differ in the meta properties of the token. For example, ERC-20 tokens on the Ethereum network are tokens with the same meta properties and therefore 1 ETH is interchangeable with another 1 ETH. With NFT tokens, you cannot exchange 1 token for another, because they are not identical and therefore do not have the same price / value. NFTs are created to represent physical as well as virtual assets (weapons, clothingand other subjects in games, music, ...).

Node - A copy of the ledger (transaction blockchain) operated by the network participant.

O

Margin Trading - Trading money that has been lent to you by the exchange itself. To receive the loan, the capital must be injected as a deposit.

P

P2P (Peer to Peer) - A network where each node can perform the role of server as well as client. There is no central point in the form of one or more servers, as is the case with the client-server architecture.

Paper Wallet - Printed paper with wallet information. Often this information is a private address and an address wallets .

Parachain is an application-specific data structure that is globally coherent and validate by validators Polkadot Relay Chain. It will usually take the form of a blockchain, but it does not need to be real blockchains. Parachines allow you to connect to Polkadot ecosystem pre-existing crypto blockchains. These can work in parallel (verification ...) to the Relay chain, which will allow excellent scaling of this ecosystem.

Wallet - digital wallet for 1 or more digital names. It is a place where the coins themselves are not stored, but the private and public keys needed to send and receive coins.

Proof of Work (PoW) - Is the system based on which the blockchain is managed. Verification and addition of the transaction to the blockchain takes place by so-called extraction, which requires considerable computing power (of which proof of work).

Proof of Work (PoW) - Is the system based on which the blockchain is managed. Transactions are received for verifying transactions by each node, depending on how much of the cryptocene it owns. The more it owns, the more the node (wallet) is able to verify transactions over time, and thus obtain more rewards in the form of a cryptocurrency or other cryptocurrency designed for it.

Public Key - The public-private key pair is widely used in cryptography to achieve encrypted communication between two stakeholders. The sender must know the public key of the recipient of the message. Note that the public key usually does not equal the address of your crypto wallets , but is often calculated from it.

Private Key - the public and private key pair is widely used in cryptography to achieve encrypted communication between two stakeholders. The sender signs the messages with his unique private key. In the crypto, the private address is the data that allows you to re-create the wallet, you sign transactions with it. Don't be wrong with seed.

Pump & Dump - organized price manipulation, in which the value of the cryptocurrency is increased by bulk purchases in a relatively short period of time. After reaching the maximum price, there is a mass sale and there is a sudden drop in price.

R

Relay chain is the central chain of the ecosystem Polkadot. All validators Polkadot are linked to a Relay Chain and validate for a Relay Chain.

Resistance - The level of resistance is above the current price of the asset and acts as a ceiling for rising prices. The opposite logic to the support levels - the resistance levels mean that the price is likely to bounce off this level rather than break it.

S

Support - The support level is below the current asset price and defines areas where falling prices will find repeated support before further declines. This means that the price is likely to "bounce" off this level rather than break it.

Supercycle A sustained spell of abnormally strong demand growth that producers struggle to match, sparking a rally in prices that can last years or in some cases a decade or more.

Satoshi - The smallest unit of Bitcoin. It holds that 1 BTC = 1 00 000 000 Satoshi.

Satoshi Nakamoto Unknown Bitcoin creator. It can be one person or a group. It is still not publicly known who appears under this pseudonym.

Soft fork - software update that leads to a change that is compatible with the current software version (older), which means that even an out-of-date node is able to fully function with updated nodes.

Smart Contract - business rules written in the programming language, which can be found in blockchain as software invoked by network participants. There is no need for a third party to be required between the sender and the recipient.

Staking - In the Proof of Stake system, this usually means leaving your coins in your wallet so that you will be rewarded for them in the near future, either in the same currency or in another designated one. Rewards adjust over time. For some, the wallet must be online, for others it may not.

Stop Loss - a function on stock exchanges that allows you to set the value at which the cryptocurrency should be sold.

Seed - a group of sorted words, where their order depends and I can re-create the wallet / wallets , since the wallet creation process is deterministic. It has a different number of words 12, 13, 15 ...

T

TA (technical / trend analysis) - the process of examining the development of a price according to economic data in order to determine its future development.

Token - unit / coin of the cryptocurrency. A token is usually called a coin created on an existing platform (usually intended for a service of the same name). For example Ethereum tokens (Civic , EOS, OmiseGo), NEO tokens (Ontology, TheKey) Ark tokens, WAVES tokens ...

Transaction Fee - All cryptocurrency transactions involve a small transaction fee. These transaction fees are increased by the block reward that the miner receives when he successfully processes the block.

Mining - This is an act of validating blockchain transactions. Miners contribute computational power to the blockchain network to help identify the next block. Miners are usually rewarded in the form of coins. In other words, the network needs to verify the transactions taking place in the network, and for the verification that cost the computing power of the miner and the money needed to buy computers and electricity is received as an incentive against the value of the unit of the currency.

V

Volatility - A term that expresses how often the price of a digital currency changes. The opposite of this concept is the concept of stability.

Whale - designation for the owner of a large quantity of all coins of a given cryptocurrency, who may become a manipulator of its price.