“Blessed are you …” – Christ said. But if he had raided here, he probably would have interpreted: “You have an advanced upgrade …”

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Blockchain is generally considered to be a complex technical topic. An important requirement for advancing in the blockchain space is understanding how certain technical elements interact with each other (especially when trying to understand crypto economics or cryptocurrency). This, in turn, requires a basic familiarity with its terminology..

Basic blockchain terminology

There are many terms that are used in this area. They all have their own meaning. To use Blockchain effectively and understand it, we need to know all the relevant terms, and the slang of cryptocurrency traders..

So let’s get started:

ASIC [А’SIK]

ASIC is an acronym for Application-Specific Integrated Circuit. These are silicon chips specially designed for one task. In the case of Bitcoin, they are designed to handle SHA-256 hashing problems for mining new BTC.

Blockchain [Blockchain]

Blockchain is an ever-growing list of block-forming records that are linked to each other in a specific order and protected by cryptography..

DAO (Decentralized Autonomous Organization)

Can be viewed as a corporation that is governed without any human intervention and controlled by an incorruptible set of business rules.

DApp [YES]

This is a fully open source decentralized application that runs autonomously and no entity controls most of its tokens.

ERC-20 [EPCi’-20]

Ethereum token standard used for smart contracts that implement tokens. This is a general list of rules governing interaction between tokens, including transfer between addresses and data access..

Ethereum [Et’rium] / Ether

It is an open source software platform based on blockchain technology that allows developers to write smart contracts, build and deploy decentralized applications. Ethereum blockchain token – ETH, which is used to pay transaction fees, miners’ rewards and other services on the network.

Ethereum Classic [Et’rium Classic]

The result of the split of the existing Ethereum cryptocurrency after the hard fork on July 20, 2016.

HODL

Of all the slang expressions of the cryptocurrency World on the Internet, HODL is one of the most commonly used. In short, HODL means keeping your crypto alive even when the market suggests you do otherwise. It was originally a typo in an online forum. Today some people use HODL as an acronym for “Hold for Dear Life”. It also sounds a lot like Hodor from Game of Thrones..

Lamba [La’mba]

Getting rich and buying a Lamborghini for your crypto profit has become not just the dream of every crypto evangelist, but one of the most common memes in the cryptocurrency world..  

Lightning Network [Laitning Ne’tvorg]

It is a “second layer” payment protocol that runs on top of the blockchain. It is designed to provide fast, scalable transactions between and between participating nodes, and is marketed as a solution to Bitcoin’s scalability problem..

Nocoiner [Nouko’iner]

A person who does not have cryptocurrency.

Pump & Dump [Pump and Dump]

Intentional market manipulation that occurs when large groups of investors buy at the same time (Pump) to stimulate price increases or sell at once (Dump) a huge mass of an asset in order to bring the price down.

Sats [Sats] / Satoshis (Satoshi)

Originally a “penny” for bitcoin. There are 100,000,000 Satoshi in one Bitcoin. The name is in honor of the creator of Bitcoin – Satoshi Nakamoto. In fact, it has become a common name for the minimum division of any cryptocurrency.

Altcoin

It is an acronym for Bitcoin Alternative. Currently, most altcoins are forks of bitcoins, with usually minor changes to the POW algorithm of the bitcoin blockchain. The most famous altcoin is Litecoin. Litecoin introduces changes to the original BTC protocol, such as a decrease in block generation time, an increase in the maximum number of coins and a different hashing algorithm.

Attack 51%

The type of security issue. If someone can control the hashing power of the blockchain, they can theoretically build their own chain history, breaking the assumed immutability.

Bagholder

This is someone who holds coins for a long period of time because they believe they are worth more than they actually are..

Barge

Slang name of a cryptocurrency exchange.

Bitcoin

The very first cryptocurrency in the history of mankind, based on a blockchain with a verification of work.

Komsa

Name of commission fees on crypto exchanges.

Consensus algorithm

A term defining significant differences between cryptocurrencies. The consensus algorithm is the part of the blockchain protocol that describes who gets the right to validate blocks of data (and is eligible for rewards) and how others can verify its legitimacy. All participating entities in the blockchain must adhere to and follow the same matching algorithm in order to participate in the blockchain.

Crane

A reward system on a website or app that rewards users for completing certain tasks. Basically this is a technique used when first launching an altcoin to get people interested in the coin.

Cryptocurrency / Crypt

Crypto is a form of digital currency based on blockchain technology and cryptographic encryption.

Crypto Jack

Using the other party’s computer to mine cryptocurrency without their consent.

Crypto maximalist

Someone who is exceptionally passionate about cryptocurrency, verbal, bullish or bearish about something. As a rule, maximalists have extreme views and are stubborn in their beliefs..

Liquidity

It is an indicator of how easy it is to convert an asset into cash quickly and without loss. The simpler, the more liquid the asset. One of the factors contributing to liquidity in the cryptocurrency trading world is the presence of many different limit orders, creating depth in the exchange order book..

Mining (production)

Blockchain transaction verification act. Requires processing power and energy to solve puzzles. Mining rewards coins based on computing power.

Mining pool

A group of miners who come together to pool their computing power on the blockchain network and then redistribute the rewards that were found in the pool.

Coin / Coin / Coin

A coin is a cryptocurrency that can operate independently of other cryptocurrency assets.

To the Moon

One of the memes of the cryptocurrency World – which calls for an explosive rise in the price of cryptocurrency, sharp, rapid and protracted like a flight to the moon.

Initial Bounty / Bounty Offer (IBO)

The initial offer of rewards or IBO is a time-limited process, usually within the framework of an ICO, which consists in the allocation of a part of the funds from the collected fund to reward people involved in marketing, direct advertising and other services to ensure a successful ICO.

Initial Coin Offering (ICO)

A procedure similar to an IPO, when a project makes an initial placement of coins by analogy with shares in an IPO to raise funds for further development or launch of a project. Often used for crowdfunding and fundraising for blockchain start-ups.

Mediator

This is a person who buys a crypto for the sole purpose of resale They function as intermediaries between cryptocurrency holders.

Rect

The value is “spent”. This is what happens when you are unlucky to trade or the market drops. A common phrase among gamers is a term that has infiltrated the crypto space and popularized in 2018.

Scam

The name of the projects that closed for various reasons. Often, this term has a negative connotation and refers to scammers who conducted an ICO under a deliberately false pretext.

Mining difficulty

This is a measure aimed at balancing block production. Bitcoin should ideally produce a block every 10 minutes, but the amount of hash power dedicated to mining directly affects the average. Therefore, Bitcoin adjusts the mining computation difficulty every 2016 blocks, which is equivalent to two weeks. If it took more than 14 days to get this amount, the difficulty decreases. If it took less, it increased.

Smart Contract

Self-executing blockchain-based contract with conditions written in the code.

Burning coins

When a coin or token has been made permanently invalid or unusable.

Stablecoin 

A cryptocurrency tied to any stable asset, such as fiat currencies, gold or other precious metals. In most cases, stablecoins are associated with a decentralized autonomous organization that controls pricing and issuance.

Ponzi circuit

A fraudulent investment involving the payment of an estimated return to existing investors from funds contributed by new investors.

Distributed ledger technology (DLT)

The technology behind distributed ledgers. This term is most often discussed in the context of enterprise use cases for distributed ledger technology..

Token

The generalized name of any digital record in the blockchain, which is a unit of measurement of any asset, digitized in the existing blockchain.

Tokenization of an asset

Transfer of the asset value to the blockchain environment with the emission of unique tokens, the transfer of which fixes the transfer of ownership of the corresponding share of the asset (analogue of a share in the stock market).

Farm

Installation for mining cryptocurrencies.

Fiat currency

Any money declared by the government as valid to fulfill financial obligations such as US dollars or Euros.

Halving

Bitcoins have a limited supply, making them a scarce digital commodity. The total number of BTCs that will ever be issued is 21 million. The number of coins generated per block is reduced by 50% every four years. This is called halving (halving). The extreme split in half will be in 2140.

Hard Fork

The term fork is used in open development environments where a project is split up, allowing the same fundamental work to go in different directions. A soft mlm soft fork occurs when transactions are still accepted by the blockchain before the update, and a hard fork occurs when new rules or implementations split the chain into two competing branches that are not compatible with each other.

Hamster

Crypto trader who does not understand trading. As a rule, working all the time at a loss.

Cold storage

Offline storage of cryptocurrencies, typically using non-storage hardware wallets, USB, offline computers, or paper wallets.

Hash function

A cryptography tool that turns any input into a character string that serves as a virtually indestructible digital fingerprint of data called a hash.

Sharding

Sharding is a scaling technique that allows nodes to maintain partial copies of blockchains. This can improve network performance and increase negotiated speeds..

Shilling

The act of deliberately spreading false news in order to “pump” the price of a coin when there is self-interest.

Shitcoin

A derogatory term used to describe an altcoin that has become useless. The value of a shitcoin may disappear, since interest in it was not realized either due to general disappointment or due to the incompetence of the project team or due to the banal SCAM of the project. 

Cypherpunk

An activist advocating for the massive adoption and use of secure cryptographic solutions and privacy technologies to drive social and political progress.

These are gentlemen

Popular Meme in the Currency World Reflecting a Way to Communicate Positive Crypto News.

Conclusion

All industries, communities and technologies need their own vocabulary. And since cryptocurrencies are all three of the above, they have their own ever-growing language. It is not easy to dive into trading without a clear understanding of what you are actually doing. Let our article on cryptocurrency terms and acronyms be your guide to the world of the crypto industry, from memes to smart investments in cryptocurrency. With more knowledge, you can take advantage of opportunities in this new sector without taking too much risk..

Mike Owergreen Administrator
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