Feb 10, 2023
Explanation of 15 common cryptocurrency terms.
Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
Blockchain: A decentralized, public ledger that records all transactions on a network.
Bitcoin: The first decentralized cryptocurrency, which was created in 2009.
Ethereum: An open-source blockchain platform that enables the creation of decentralized applications and smart contracts.
Token: A unit of value that represents an asset on a blockchain network, such as a cryptocurrency.
Altcoin: Any cryptocurrency that is not Bitcoin.
Mining: The process of solving complex mathematical problems in order to validate transactions and add new blocks to a blockchain.
Wallet: A digital storage place for cryptocurrencies.
Public Key: A unique address that allows for the receiving of cryptocurrencies.
Private Key: A secret code that allows for the control and transfer of cryptocurrencies.
Decentralized: A network that operates independently and is not controlled by a central authority.
Centralized: A network that is controlled by a central authority, such as a bank or government.
Distributed: A network that is spread across multiple computers or nodes.
Smart Contract: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
Initial Coin Offering (ICO): A fundraising method used by blockchain companies to raise capital by selling their own cryptocurrency tokens to investors.