top of page

More advanced crypto terminology!



Feb 12, 2023

Advanced crypto terminology

  1. Blockchain - A decentralized ledger that records all transactions in a secure, transparent and tamper-proof manner.

  2. Proof of Work (PoW) - A consensus mechanism used to secure a blockchain network, where nodes compete to solve a complex mathematical problem in order to validate transactions and add them to the blockchain.

  3. Proof of Stake (PoS) - A consensus mechanism used to secure a blockchain network, where nodes validate transactions based on the amount of cryptocurrency they hold and are willing to "stake" as collateral.

  4. Mining - The process of validating transactions and adding them to the blockchain, often performed by nodes in a PoW network in exchange for a reward.

  5. Token - A unit of value issued on a blockchain, often representing assets such as commodities or stocks, or used to access a specific application or service within a blockchain network.

  6. Smart Contract - A self-executing contract with the terms of the agreement directly written into lines of code, stored and replicated on the blockchain.

  7. Decentralized Exchange (DEX) - A platform for trading cryptocurrencies and tokens without relying on a central authority.

  8. Atomic Swap - A type of transaction that allows for the exchange of one cryptocurrency for another without the need for a centralized exchange.

  9. Oracles - Third-party services that provide real-world data to smart contracts on the blockchain.

  10. Non-Fungible Token (NFT) - A unique, indivisible token that represents ownership of a digital asset, such as a piece of art or music.

  11. Liquidity - The ability of an asset to be easily bought or sold in the market without affecting its price.

  12. Volatility - The degree to which the price of an asset fluctuates over time.

  13. Hard Fork - A significant change to the protocol of a blockchain network, leading to the creation of a new blockchain and potentially splitting the network into two separate versions.

  14. Soft Fork - A backward-compatible change to the protocol of a blockchain network, preserving the existing version of the blockchain and its history.

  15. HODL - An acronym for "Hold On for Dear Life," referring to the strategy of holding onto a cryptocurrency for an extended period of time, regardless of market conditions.

  16. Whales - Large cryptocurrency holders who have the ability to significantly influence the market through their trades.

  17. Public Key - A cryptographic code used to receive or transfer cryptocurrency, made publicly available to others in the network.

  18. Private Key - A cryptographic code used to access and control a cryptocurrency wallet, meant to be kept secret and secure.

  19. Cold Storage - The process of storing cryptocurrency offline in a secure device, such as a hardware wallet, to protect against theft or hacking.

  20. 51% Attack - A situation where a group of miners or nodes controlling over 50% of the network's computing power could potentially manipulate the network and its transactions.

  21. Airdrop - A marketing strategy used by cryptocurrency companies to distribute free tokens to a large number of users, often as a way to build awareness and drive adoption.

  22. Stablecoin - A type of cryptocurrency that is pegged to a stable asset, such as the US dollar, in order to reduce volatility and provide a more stable store of value.

  23. DeFi (Decentralized Finance) - A growing ecosystem of financial applications and services built on blockchain technology, offering decentralized and trustless alternatives to traditional finance.

bottom of page