Blocks are data structures within the blockchain database. A block permanently records some or all of the most recent transaction data in a cryptocurrency blockchain.
Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. Bitcoin miners run complex computer solve complicated puzzles to confirm groups of transactions called blocks.
The term “altcoin” is “alternative coins” and simply means cryptocurrencies other than Bitcoin. Popular cryptocurrencies are as follows: Ethereum, XRP, EOS, ADA, TRON, LTC, …
Coin/ Token/ Protocol/ Stablecoin
Coins are defined at the core level of a blockchain protocol: they are the native digital assets of a blockchain. Conversely, tokens are built at a higher level, on top of a blockchain network.
A stablecoin (ex: USDT, UST, USDC, DAI) attempts to offer price stability and are backed by a reserve asset. The primary use for a stablecoin is buying equally with fiat currency, like the US dollar.
A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions.
There are now two types of crypto exchanges: CEX (centralized exchanges) and DEX (decentralized exchanges). … CEX (BIB Exchange as example) is built by a centralized organization company acting as a third person to store assets, regulate exchanges, and charge exchange fees. In CEX, the exchange process happened via order book.
DEX is a peer-to-peer marketplace where transactions occur directly between crypto traders via Automated market makers (AMM) that that automates the process of providing liquidity (LP).
AMM is the underlying protocol used by decentralised exchanges with an autonomous trading mechanism. This eliminates the need for centralised authorities like exchanges and other financial entities. Put simply, it allows two users to transact their assets without any intermediary facilitating the exchange.
DeFi refers to financial applications built on blockchain technology that enable digital transactions between multiple parties. The blockchain is essentially a public ledger for digital assets, including cryptocurrencies. DeFi can involve lending crypto, sending crypto, or investing crypto.
The process by which a network participant gets selected to add the latest batch of transactions to the blockchain and earn some crypto in exchange.
The Total Value Locked (TVL) in the DeFi Staking protocols represents the amount of assets deposited by the liquidity providers in the protocols.
A decentralized app (also known as a dApp or dapp) operates on a blockchain or peer-to-peer network of computers. It enables users to engage in transactions directly with one another as opposed to relying on a central authority.
GameFi is simply a fusion of the words “game” and “finance.” It combines cryptocurrency, blockchain, NFTs, and game mechanics to create a virtual environment where players participate and earn money in the process. GameFi operates on a “play-to-earn” model. There are many new models such as “Move-to-earn”, “Watch-to-earn”,”Learn-to-earn”, “Share-to-earn”, …
NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends. Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another.
Minting digital assets (everything from art to music to articles) as NFTs is one way for artists to monetize their work. Of course, selling digital files isn’t new. But one of the more innovative uses for NFTs is the ability to guarantee that you get credit for the original creation.
OTC stands for over-the-counter meaning the trade is negotiated directly between the buyer and the seller and does not provide a public order book listing all the trades. This allows large sums to be moved quietly without the potential to disrupt markets.
Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions.
Transaction hash (txid) is an identifier used to uniquely identify a particular transaction. All on-chain transactions (the transactions from or to external addresses) have a unique txid that can be seen in transaction details. A transaction hash usually looks like a random set of letters and numbers.
The identification of a sender or receiver of cryptocurrency on a blockchain network. Crypto addresses are derived from private keys and are just a bunch of alphanumeric characters. They do not identify the participant by name.
HOLD/ Paper hand/ Diamond hand
Hodl is a cryptocurrency strategy in which, as the name implies, traders are “hodling on for dear life” or Diamond hand, the opposite is Paper hand. This means that a trader needs to restrict themselves from selling the cryptocurrency token, even in extremely volatile times in terms of its value.
Crypto mining refers to a verification and currency creation process where powerful computers race one another to process transactions, solving complex mathematical problems that require quintillions of numerical guesses a second. Miners can be rewarded with new cryptocurrency and transaction fees.
ICOs are another form of cryptocurrency that businesses use in order to raise capital. Through ICO trading platforms, investors receive unique cryptocurrency “tokens” in exchange for their monetary investment in the business.
IDO, or Initial DEX Offering, is a crypto coin (or token) offering that happens on a decentralized exchange (DEX).
Vesting period, also called token lockup period, refers to a period of time in which the tokens sold in the pre-sale of ICO stage are prevented from being sold for a specific period of time.
A Token Generation Event (TGE) is a common practice in the crypto space. As cryptocurrencies become mainstream alternatives for making payments, transferring money, investing in assets, and storing value, it’s become important to understand what common terms, trends, and acronyms in the industry mean.
Web3 is the name some technologists have given to the idea of a new kind of internet service that is built using decentralized blockchains — the shared ledger systems used by cryptocurrencies like Bitcoin and Ethereum.
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