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A solution software entity by Fetch. The average directional index ADX is a technical indicator that measures how strong a market trend is by using price moving averages and is represented by figures ranging between 1 and , where a larger value suggesting a stronger trend. Bag Crypto slang for a large quantity of a specific cryptocurrency.
Alternatively but less frequently used to refer to the contents of an individual's crypto portfolio. An investor who continues to hold large amounts of a specific coin or token, regardless of its performance. Baking is the process that Tezos uses in order to append new blocks of transactions to its blockchain.
Baking is a process that is used by Tezos in order to append new blocks of transactions onto its blockchain. The quantity of data capacity available for transactional activity on a network is known as bandwidth. The BIS is an international financial institution that promotes global monetary stability. BaaS platforms provides a higher level of financial transparency options by letting banks open up their APIs for third parties in order to develop new services.
A basket, when used in the cryptocurrency space, refers to a collection of digital currencies managed as a single asset. Batch auctions are a trading mechanism in which individual orders are grouped together and executed simultaneously. A blockchain that coordinates shard chains, manages staking and the registry of validators in a PoS cryptocurrency, such as Ethereum 2. Someone who believes that prices in a given market will decline over an extended period.
As a result, investor confidence is low, and the economy and market turn pessimistic. A bearwhale is a person who has a high number of cryptocurrencies and uses their massive account to drive the price down and profit out of it. Benchmarking is a method of comparing the performance of your asset or investment portfolio to that of similar assets to see whether there is a gap that can be bridged by increasing performance indicators. A benchmark index is a popular index security that is used as a gauge or benchmark, against which the progress of the broader market may be tracked.
The cost that someone is willing to pay for a security, asset, commodity, service, or contract is referred to as a bid price. Bid-ask spread is the difference between the highest price which a buyer is willing to pay for an asset as well as the lowest price that a seller is willing to accept.
The four or five biggest technological corporations, particularly Facebook, Apple, Google, and Amazon, are referred to as "Big Tech" as they enjoy the biggest shares in their respective industries. Binance Labs is a project to nurture, invest in, and develop blockchain and cryptocurrency businesses, initiatives, and communities, as well as a social impact fund.
Binance Launchpad offers crypto-startups a platform to raise capital and market their projects to millions of crypto investors in the Binance ecosystem. Binary code is a two-symbol system that is based on numbers, "0" and "1," to represent text, computer processor commands, or any other type of data. An automated teller machine ATM or cashpoint that allows the user to buy and sell Bitcoin.
Bitcoin Dominance is a metric that determines how much share of the overall crypto market share is owned by Bitcoin. The standard format for documents proposing changes to Bitcoin. Bitcoin Pizza refers to the infamous transaction where a guy, named Laszlo Hanyecz, paid 10, Bitcoins for two pizzas making it the first business transaction of Bitcoin in the real world. Bitcointalk is the most popular online forum dedicated to Bitcoin, cryptocurrency and blockchain technology.
A business license permitting regulated virtual currency activities, issued by the New York State Department of Financial Services. A commonly used unit, or subdivision, of a single Bitcoin. Black hat hackers usually use malware to penetrate into computerized networks and systems to steal data. A black swan event, also known as black swan occurrences, is a metaphor for an unexpected event that has a significant impact. A file containing information on transactions completed during a given time period.
Blocks are the constituent parts of a blockchain. An application enabling a user to view details of blocks on a given blockchain. Also known as a blockchain browser. A block header is a unique identifier for a block on a blockchain that is hashed on a continuous basis to supply proof-of-work for mining incentives.
A value describing the number of blocks preceding a given block in the blockchain. A block producer BP is a person or group whose hardware is chosen to verify a block's transactions and begin the next block on most Proof-of-Stake PoS blockchains. The coins awarded to a miner or group of miners for solving the cryptographic problem required to create a new block on a given blockchain. In blockchain technology, block size refers to the amount of data about transactions a single block in the chain can carry.
Block time refers to the approximate time it takes for a blockchain-based system to produce a new block. A block trade is a large-scale purchase or sale of securities that occur outside of an open market. It uses blockhouse as a financial intermediary to aid investors with risk management.
A distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. Blockchain 1. Blockchain 2. Blockchain 3. A blockchain explorer is simply a search engine allowing users to browse through blockchain records. Blockchain Transmission Protocol BTP enables isolated blockchains to operate as a fully decentralized settlement layer by securely anchoring transactions using a protocol that is universal.
The blockchain trilemma is the set of three issues that plague blockchains: decentralization, security and scalability. Blockchain-enabled smart locks solve many security issues and can be locked or unlocked based on the state of a variable that is embedded in a smart contract. A tool developed by Bollinger to help in the recognition of systemic pattern recognition in prices; it is a band that is plotted two standard deviations away from the simple moving average, or exponential moving average in some cases.
A bonding curve is a mathematical curve that defines the relationship between the price and the supply of a given asset. Automated software that can carry out tasks such as cryptocurrency trades. A cryptocurrency bounty is a reward users receive for performing tasks assigned by a given blockchain or project. In the world of cryptocurrencies, breaking the forward compatibility of cryptoassets is seen in hard forks of a cryptocurrency.
Brian Armstrong is the founder of Coinbase, one of the largest cryptocurrency exchanges in the United States. A blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects. A browser extension is a plugin for an internet browser that adds additional features. An attempt to crack a password or key through automated trial and error.
When an asset is traded at a price exceeding that asset's intrinsic value. A reward offered for the identification of vulnerabilities in software. A bug exploit is an attack that take advantage of a system's vulnerabilities.
A person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. A bull market in crypto and stock markets refers to a time during which the prices of assets grow dramatically.
These markets act as a source of motivation for both investors and purchasers. This is not a permanent state, although it can linger for months or even years. A bull run also known as a bull trend is a period of time in the financial market during which the values of certain assets are constantly rising.
A bull trap occurs when a steadily declining asset appears to reverse and go upward, but soon resumes its downward trend. An enthusiastic exclamation by supporters of a cryptocurrency to buy while prices are at a low point. A buy wall is a disproportionately large buy limit order placed on a cryptocurrency exchange. Byzantine Fault Tolerance BFT is the property of a computer system that allows it to reach consensus regardless of the failure of some of its components. A situation where communication that requires consensus on a single strategy from all members within a group or party cannot be trusted or verified.
The Byzantium hard fork was geared towards making Ethereum's smart contracts suitable for usage in the commercial space and to increase the speed of the transactions with an enhancement in the security on its blockchain. Call options are financial contracts that give an option buyer the right, but not the obligation, to purchase a stock, bond, commodity or other asset at a specific price.
A candlestick chart is a graphing technique used to show changes in price over time. Each candle provides 4 points of information opening price, closing price, high, and low. Capital is most commonly defined as the large sum of money you would use to invest. Capital efficiency is the ratio that compares the spending of a company on their growing revenue and how much they are receiving in return in the way of profits.
Capital funding is the money provided in the form of debt or equity to operate a company. Capitulation is the process of selling assets or cryptocurrencies at a significant loss because you have lost hope or belief that it will ever increase in price. A physical unit of Bitcoin that comes in the form of brass, silver or gold-plated coins. Cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term.
Casper is a project designed to implement PoS into the Ethereum network. CeDeFi, or centralized decentralized finance, combines traditional centralized financial services with decentralized applications, merging conventional regulatory policies with modern financial products and infrastructure. Censorship is the act of altering, suppressing, or prohibiting speech or writing that is considered detrimental to the general public.
Censorship resistance refers to the idea that no party can prevent anyone from participating in a given platform or network. In contemporary economies, the central bank is responsible for the formulation and transmission of monetary policy, as well as for the regulation of member banks.
CBDCs are digital currencies issued by a central bank whose status as legal tender depends on government regulation or law. A central ledger is a physical book or a computer file used to record transactions in a centralized manner. A central processing unit CPU is the part of a computer that is in charge of interpreting and executing programs and coordinating the work of all other components. A centralized organizational structure is one in which a single node or a small number of them are in control of an entire network.
Centralized exchanges CEXs are a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner. A certificate of deposit CD is a financial product allowing customers to earn an interest rate premium after making a deposit. Chain reorganization is a process in blockchain technology that allows node operators to replace blocks and adopt new ones, in order to create new, longer chains of data.
Chain splits are another term used to describe cryptocurrency forks — the separation of a single original coin into several independently managed projects. Change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. In cryptocurrencies, a change address is where the change from a transaction is temporarily stored before it is returned to the sender wallet.
Changpeng Zhao CZ is the founder of crypto exchange Binance. A chargeback is the return of money to the payer of a certain transaction, most commonly one that was made with a credit or debit card. Chunk is a fraction of each block produced as a result of sharding in the NEAR protocol.
A cipher is any algorithm that can be used to encrypt and decrypt information. Ciphertext is a result of encryption that has been performed on plaintext through the usage of an algorithm. A client is software that can access and process blockchain transactions on a local computer. A common application of this is a cryptocurrency software wallet.
Refers to the closing price; similar to the same term used in stock trading. Cloud servers are typically located throughout different data centers all over the world. Cryptocurrency mining with remote processing power rented from companies. A person or entity that has partial control and access over a cryptocurrency wallet. The action of coding is to write programming statements for a program.
A coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. Coin mixers allow users to mix up transactions between different cryptocurrency addresses, so they become untraceable and cannot be followed back to the initial sender or receiver of the assets.
In mineable cryptocurrencies, a coinbase is the number of coins that are generated from scratch and awarded to miners for mining every new block. The first transaction in a new block is a coinbase transaction in which the miner receives Bitcoins and mining fees. Offline storage of cryptocurrencies, typically involving hardware non-custodial wallets, USBs, offline computers, or paper wallets. A cryptocurrency wallet that is in cold storage, i.
Collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. In cryptocurrency, collateral tokens are used as a risk mitigation asset when borrowing other types of crypto tokens.
Collateralization is the process of using one asset as insurance for securing a loan in a different asset. A collateralized debt obligation CDO represents a mixture of loans and assets that are offered to big investment firms with a lot of capital. A collateralized debt position is held by locking collateral in smart contracts to generate stablecoins. A collateralized mortgage obligation CMO is essentially a bundle of numerous mortgages combined in a package and sold to investors.
Commingling of funds is a method of combining all funds from different investors into a single investment in order to maximize the benefits. Composable DeFi refers to the interoperability between different DeFi protocols. It enables a multitude of DeFi applications to work along and create a wide range of new use cases and financial products. A composable token is an ERC token, a standard extension to any non-fungible token, adding the ability for non-fungible tokens to own other non-fungible ERC and fungible ERC tokens.
In cryptocurrency, a confirmation is a measure of how many blocks have actually passed since a transaction was added to a blockchain. A cryptocurrency transaction is considered confirmed when it is included in a block on the blockchain. Each new block after the first one is an additional confirmation for that transaction.
Consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. A consensus mechanism is an underlying technology behind the main functionalities of all blockchain technology, which makes them an essential operating feature of all cryptocurrencies. ConsenSys is a blockchain technology company that offers developer tools alongside enterprise solutions.
A privately owned and operated blockchain where a consortium shares information not readily available to the public, while relying on the immutable and transparent properties of the blockchain. A Consumer Price Index or CPI is a type of index where the prices of a basket of goods and services are tracked to gain insights into market segments.
In traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. A contract account is an account that has a crypto balance and associated code. In blockchain technology, a coordinator is a specialized client that allows nodes to verify the validity of their copy of the ledger against specific transactions.
A core crypto wallet is able to contain the entire blockchain, rather than just a piece of a blockchain. A corporate treasury is formed to manage and control the liquidity, risk, funds, capital reserves, and other resources of a company to align with its short and long-term strategies. Since mining requires computing power, the process of generating or mining cryptocurrency using a central processing unit CPU is called CPU mining or central processing unit mining. Craig Wright is an Australian computer scientist that has publicly claimed to be Bitcoin inventor Satoshi Nakamoto.
Credit rating is a measure that allows banks and lending institutions to predict how capable you are of repaying your debt. Crest risk is the number representing the possibility that a bank or lending institution will lose money because a borrower cannot repay their loan.
Cross-border trading in financial markets and trade finance represents the opportunity to trade globally using a local currency. Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. Cross-chain communication between blockchains allows different protocols to verify data and transactions without the intervention of a centralized third-party service.
Crowdfunding enables fundraisers to collect money from a large number of people through a variety of different platforms. A crypto debit card is a type of debit card that allows its holder to pay for goods and services using cryptocurrencies. Crypto invoicing is the process of creating invoices for goods and services that need to be paid in cryptocurrencies. A cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application.
Cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. Cryptocurrency money laundering is a method criminals use to legitimize and enshroud funds by changing fiat to digital currency and then routing it through many pathways. It is an attempt to lose any authorities who may be tracing the money. Exchanges utilize cryptocurrency pairs in order to facilitate the trade between different tokens.
Cryptographic hash functions produce a fixed-size hash value from a variable-size transaction input. A field of study and practice to secure information, preventing third parties from reading information to which they are not privy. Cryptology is the scientific study of cryptography as well as cryptanalysis. Curve is a software that uses multiple cryptocurrencies to operate an automated market maker AMM service focused on stablecoins cryptocurrencies programmed to mimic other assets.
A custodian is responsible for safely holding assets for an institution or individual for a variety of purposes. Custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss.
The cypherpunk movement promotes the use of cryptography and other privacy-focused technologies to advance social and political progress. Daedalus Wallet Daedalus Wallet is a multi-platform, open-source, hierarchical-deterministic wallet that lets you generate an endless number of keys from a single seed. A portion of the internet existing on darknets not indexed by search engines, that can only be accessed with specific software, configurations or authorizations. RenVM is driven by Darknodes, a decentralized network of computers.
In exchange for compensation, they offer their computing power and storage space to everyone with certain conditions. Data privacy refers to the area of data protection and security that is responsible for the handling of sensitive data. Data scraping or web scraping is the process of extracting information from a website into a spreadsheet or a local file on your computer or database. A term used for when ICOs will put up their tokens for sale. Day trading is the practice of frequently buying and selling assets in order to make a profit on intraday changes in their price.
A temporary recovery in prices after a prolonged decrease. A death cross is a bearish technical trading indicator that occurs when the day moving average falls below the day moving average, indicating a big sell-off. Decentralization maximalism refers to the belief that decentralization is the best approach and lifestyle to such a degree that any form of regulation does not need to exist.
The Decentralization Ratio DR is the ratio of collateral value that is decentralized over the total stablecoin supply backed for those assets. Decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal.
A type of application that runs on a decentralized network, avoiding a single point of failure. A method for decentralized funding of projects that introduces a form of governance in the ICO process, allowing backers to vote for the return of their funds if certain conditions are met. A decentralized autonomous organization DAO is founded upon and governed by a set of computer-defined rules and blockchain-based smart contracts.
Decentralized currency refers to bank-free methods of transferring wealth or ownership of any other commodity without needing a third party. A decentralized database is a modern-day storage solution that combines decentralized technologies with cutting-edge computing to randomly store data and files across multiple nodes, delivering high security and unmatched availability while being completely censorship-resistant.
A peer-to-peer exchange allowing users to trade cryptocurrency without the need for an intermediary. Decentralized governance refers to the procedures through which a platform's disintermediated, equitable management is carried out for blockchain networks and dApps. A decentralized identifier, or DID, refers to an ID that can be issued by an autonomous, independent, and decentralized platform that acts as a proof of ownership of digital identity.
A decentralized marketplace, built on blockchain technology, allows traders or investors to trade with each other while eliminating middlemen. They are available globally and require no intermediaries to make trades possible. A decentralized network is a collection of interconnected but distinct elements that interact with one another without the need for a centralized power or server.
A decentralized payment network refers to a system where users, customers and vendors can exchange money without having to trust any third party to keep the network secure and operational. Decentralized social media is a social media platform that is based on blockchain. Decentralized stablecoins are fully transparent, non-custodial with no or partial third-party control. The process of transforming encrypted data back into a format that is readable by a user or machine.
The "deep web" is the part of the internet that is hidden from regular search engines. A movement encouraging alternatives to traditional, centralized forms of financial services. A DeFi aggregator brings together trades across various DeFi platforms into one place.
DeFi degenerates. A subculture associated with a disreputable corner of decentralized finance known for pump and dump schemes. A decline in the general level of prices for goods and services in an economy. An alternative to the Proof-of-Stake and Proof-of-Work consensus algorithms. A denial-of-service attack aims to temporarily make a computer or network service unavailable to its intended users.
A graph that plots the requests to buy bids and the requests to sell asks on a chart, based on limit orders. The chart shows the point at which the market is most likely to accept a transaction. A financial instrument deriving its value from the value of an underlying asset. A public market for derivatives, instruments such as futures contracts or options, which are derived from other forms of cryptocurrency assets. A desktop wallet is a type of software wallet that is usually non-custodial.
A type of cryptocurrency wallet in which keys and addresses are created from a single seed. DEX aggregators are a relatively new type of blockchain-based service that allow cryptocurrency traders to benefit from a large variety of financial tools in a single interface, often providing better liquidity and prices on different crypto pairs.
Diamond Hands is a popular term on social media platforms. A measure of how hard it is to validate a new block on a blockchain. Digital technologies are these electronic tools that have the ability to generate, store or even process data. Digital art is art and media that is made by using digital technology. A digital asset refers to the digital representation of something of value. A digital asset custodian is responsible to look after digital assets on behalf of an investor or client.
Digital asset ecosystem is a term that defines everything involved in the crypto space. From NFTs to futures, this terms sums up all the facilities offered and elements associated with the crypto universe. Eliminating the inherent weaknesses of the traditional barter economy, a digital barter economy makes it easier to trade both physical and virtual items anywhere in the world. A currency that exists only in digital form, as opposed to traditional physical currencies.
Information used by a person or entity to identify themselves to a computer or network. A method for proving the authenticity of a digital communication. Digital Signature Algorithm DSA is a signature algorithm, not an encryption algorithm, and uses public-key cryptography to generate digital signatures. No, not that. A dip is when markets experience a short or protracted downturn. A way of structuring data, often used for data modelling, and increasingly as a consensus tool in cryptocurrencies.
Discord is a web-based communication tool or application primarily built to enable communication between gamers. An attempt by a bad actor to disrupt the operation of an application, server or network by flooding it with traffic. Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes.
A distributed ledger does not necessarily involve a cryptocurrency and may be permissioned and private. A database that is shared by multiple participants, in multiple places. The basis for blockchains. A network in which the data and applications are dependent on multiple sources, as opposed to one location. Diversification is a risk-management strategy that mixes a wide variety of investments within a portfolio. Documentation is a part of token economies that stores all the details of an asset on the blockchain.
A measure of Bitcoin's value in the context of the larger cryptocurrency market. DotSama is a new piece of crypto slang, used to describe the Kusama and Polkadot ecosystems in just one word. A double-spend attack is a practice in the world of digital currencies where a user gains the ability to spend the same cryptocurrency more than once. The maximum reduction in value from the peak value for an investment or fund that has occurred over a period of time.
In the world of blockchain, a dual-token economy or model means a project with two tokens, one of which is used for utility inside the network and the other one as security to raise funds for the crypto project. A collective market sell-off that occurs when large quantities of a particular cryptocurrency are sold in a short period of time.
Miniscule amounts of Bitcoin in a wallet — with a value that would be outweighed by the cost of a transaction fee. The acronym of Do Your Own Research — encouraging investors to complete due diligence into a project before investing. E-Signature An electronic signature, or e-signature, is any electronic mark sign, sound, symbol, etc.
Economic utility is a term in economics that refers to the total satisfaction that a person can derive from consuming a good or service. In computer science, an edge node is a computer that serves as an end-user gateway to form a connection with other nodes.
The Elliott Wave Theory is an essential tool for many stock and crypto market traders. Email spoofing is a technique that is used in order to trick users into thinking that a message actually came from a different person. Encryption is a method through which information can be made into code. Enterprise blockchain is the use of distributed ledger technology for non-speculative business purposes. Tailored for the needs of enterprises, these chains may be private or public.
A group of organizations and companies working together to further develop the Ethereum network. One entire run of the training dataset through the algorithm is referred to as an epoch in machine learning. Equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation.
Erasure coding is a method of storing data at multiple locations after doing its segmentation, expansion, and encoding with redundant information. ERC digital token standard was created by Enjin and offers more security in comparison to older token standards. It can be used to create both fungible and non-fungible assets on the Ethereum network.
Tokens designed and used solely on the Ethereum platform. ERC is an Ethereum token standard that is powered by smart contracts that enable users to securely transfer tokens to a digital wallet. ERC is a tradable token standard spun out from ERC to enable a new way to engage with a token contract while staying backward compatible. ERC is an ETH token standard that addresses the existing limitations of ERC 20 when it comes to the implementation of calls in transfers and approvals in particular.
ERC facilitates the creation of tradable ERC tokens, each of which symbolizes a numberless share issued by a Delaware corporation. ERC is a new Ethereum token protocol that is designed to connect subscription businesses with customers and allows for subscription-based transactions. A financial instrument where assets or cash are held by a third party while a buyer and a seller complete a deal. Electronic sports, commonly known as e-sports, is a term used for digital gaming competition, in which players battle against each other in an individual or team-based format often in a competition or event that offers huge monetary rewards to the winners.
Some e-sports games are also available in a single-player mode. Ethash is the algorithm utilized for the proof of work mining Ethereum and ETH-based cryptocurrencies. The form of payment used in the operation of the distribution application platform, Ethereum.
Ethereum Request for Comment ERC is the protocol to introduce new improvements to the network by developers. Ethereum transaction are cryptographically signed instructions to initiate a transaction to update the state of the Ethereum network. A Turing-complete virtual machine that enables execution of code exactly as intended; it is the runtime environment for every smart contract.
Every Ethereum node runs on the EVM to maintain consensus across the blockchain. When a transaction is mined, smart contracts can emit events and write logs to the blockchain which the frontend can then process.
Businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. A security that tracks a basket of assets such as stocks, bonds, and cryptocurrencies but can be traded like a single stock. In other industries, this event occurs when a business stops shipping orders even if it is receiving payment for the new ones. Falling Knife A falling knife refers to the price dive of an asset and denotes a downward momentum of the financial market.
Falling wedges, also known as descending wedges, have a distinct downward slope and a bullish bias in comparison to symmetrical triangles, which have no discernible slope and no bias. The FATF Travel Rule requires virtual asset service providers to regulate information sharing for certain large transactions. A cryptocurrency reward system usually on a website or app, that rewards users for completing certain tasks. Fee tiers refer to the fee structure that determines the amount charged when investors deposit or withdraw money and execute trades on a crypto exchange.
It can take the form of physical cash, or it can be represented electronically, such as with bank credit. A fiat-on ramp is a way to get cryptocurrency from fiat, or regular money. A coin, token or asset issued on a blockchain that is linked to a government or bank-issued currency. Field Programmable Gate Array is an integrated circuit that allows customers or designers to reconfigure as per requirement after the manufacturing process.
The first-mover advantage refers to the launch of an innovative product or service which provides a head-start to a company by creating brand loyalty and penetrating markets before their future competitors. A flash loan is a transaction in which a specific quantity of liquidity is borrowed and repaid in the same transaction or block. Flash loan attacks are when malicious actors exploit a smart contract.
Flash loans are a type of uncollateralized lending used in decentralized finance DeFi. A hypothetical scenario where Ethereum's market cap overtakes Bitcoin's. An investment strategy where you buy something with the goal of reselling for a profit later, usually in a short period of time. An acronym that stands for "Fear of Missing Out. Forks, or chain splits, create an alternate version of the blockchain, leaving two blockchains to run simultaneously.
When an entirely new program has been developed from source code, taken from an open source software. A fractional stablecoin is one that is backed in two ways: collaterally-backed and algorithmically modified. A fraud proof is a technological method that functions as a bond in a decentralized environment that uses Optimistic Rollups ORs , which are sidechains that aim to reduce the costs and latency that dApps might encounter on a blockchain platform.
Front running is when you place a transaction in a queue when you have knowledge of a future transaction. Fully homomorphic encryption is a type of scheme where one can perform arbitrary computations on encrypted data and generate the same results as when performing those computations on the plaintext. A method in which you research the underlying value of an asset by looking at the technology, team, growth prospects and other indicators.
Funding payments are periodic payments between traders. These are designed to reduce the discrepancy between the perpetual market price and the spot market price. In cryptocurrency, fungibility is when a coin or token can be replaced by any other identical coin or token. A futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future.
Gains Gains refer to an increase in value or profit. Game channels are the newest technological advancement in the world of blockchain gaming, as they enable fast gameplay by removing the wait time for block confirmations. With game channels, games and dApps can run off-chain securely, individually, and in near real-time. GameFi, better known as play-to-earn P2E games, is a rather new term in the field of both gaming and cryptocurrency industries. It references games that are designed with economic and financial aspects of blockchain and cryptocurrencies, enabling players to exert full control over their in-game assets to generate revenue.
A term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. A term used on the Ethereum platform that refers to the maximum amount of gas the user is willing to spend on a transaction. A term used on the Ethereum platform that refers to the price you are willing to pay for a transaction.
Gas Station Networks GSN allows you to build decentralized applications dApps which provide payment for transactions, so users do not need to hold Ether or ETH to pay for gas, easing their onboarding process and improving user acquisition and experience. Gavin Wood is the co-founder of Parity Technologies, and one of the founders of Ethereum.
Gem is a term for relatively unknown low-cap coins that have immense potential or are grossly undervalued. The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1. Geotagged non-fungible tokens NFT feature 3D versions of the street art alongside the corresponding geo-location. They allows art aficionados to own both the virtual and physical artwork without the need to remove the actual infrastructure it was originally painted on.
Geth, short for Go Ethereum, is a command-line interface that allows developers to run full Ethereum nodes, mine the cryptocurrency and execute smart contracts. GitHub is one of the most popular code hosting platforms, allowing developers to collaborate on various projects. A coin or token issued that represents a value of gold; for example, one physical gram of gold equals one coin. Google Authenticator is a software-based verification system that generates unique one-time codes that are time-based on your mobile phone.
In the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. A governance token is a token that can be used to vote on decisions that influence an ecosystem. More commonly known as a graphics card, it is a computer chip that creates 3D images on computers, but has turned out to be efficient for mining cryptocurrencies.
The greater fool theory was first discussed by professor Burton Malkiel. As opposed to solo mining, group mining is when multiple people mine together. The denomination used in defining the cost of gas in transactions involving Ether. Hacking Hacking is the process of using a computer to manipulate another computer or computer system in an unauthorized fashion. An event in which the total rewards per confirmed block halves. A hard cap is the absolute maximum supply of a digital asset.
A type of protocol change that validates all previously invalid transactions, and invalidates all previously valid transactions. A hard fork combinator first designed by IOHK is a tool to combine protocols specifically on the Cardano blockchain after a hard fork has occurred. A hard peg is an exchange rate policy, where a currency is set at a fixed rate against another currency. A hardware security module is a type of computing device that secures digital keys and encrypts data.
A hardware wallet is a wallet for cryptocurrencies that usually resemble a USB stick. A hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data. Any function used to map data of arbitrary size to data of a fixed size. A unit of measurement for the amount of computing power being consumed by the network to continuously operate.
A hedge contract is a form of insurance that investors use to hedge against the risk of financial loss. Typically, a hedge is designed to protect against price fluctuations in the market. Hidden cap is an unknown limit to the amount of money a team elects to receive from investors in its initial coin offering ICO. The purpose of a hidden cap is to even the playing field by letting smaller investors put in money, without the large investors forming an accurate understanding of the total cap and adjusting their investment as a result.
A wallet that uses Hierarchical Deterministic HD protocol to support the generation of crypto-wallets from a single master seed using 12 mnemonic phrases. A type of passive investment strategy where you hold an investment for a long period of time, regardless of any changes in the price or markets.
Honeyminer is a cryptocurrency mining app available for download on multiple devices. The online storage of private keys allowing for quicker access to cryptocurrencies. A cryptocurrency wallet that is connected to the internet for hot storage of cryptoassets, as opposed to an offline, cold wallet with cold storage.
A test used to determine whether or not an asset is a security. This approach aims to bring together the security of PoW consensus and the governance and energy efficiency of PoS. Hyperinflation is defined as unrestricted growth in prices for goods and services in an economy.
It happens when resources become limited, such as gas or food, and prices rise as demand outstrips supply. Hyperledger is an umbrella project of open source blockchains and blockchain-related tools started by the Linux Foundation in to support the collaborative development of blockchain-based distributed ledgers.
Immutable A property that defines the inability to be changed, especially over time. Impermanent loss is when a liquidity provider has a temporary loss of funds because of volatility in a trading pair. In-the-money and out-of-the-money are options trading mechanisms that allow investors to benefit from additional tools to work with the market. Pre-approving smart contracts to enable the platform to spend any amount of your coins. An infinite mint attack occurs when an unwanted entity or hacker mints an absurd "infinite" amount of tokens within a protocol.
A general increase in prices and fall in the purchasing value of money. A novel way of launching a project that focuses on people contributing skills to a platform rather than money. Short for Initial Coin Offering, an ICO is a type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies.
A type of crowdfunding where crypto start-ups generate capital by listing through an exchange. Initial game offerings IGOs provide individuals with an opportunity to invest in gaming projects at an early stage that have the potential to offer huge returns after their launch. A crypto crowdfunding solution where projects can raise funds by listing a set of NFTs via a launchpad.
An initial public offering IPO is the process of a company offering shares for purchase on the stock market for the first time. Unlike existing fundraising models, ISPOs are more inclusive, decentralized, equitable, and secure. ITOs are similar to initial coin offerings — but have more of a focus on offering tokens with intrinsic utility in the form of software or usage in an ecosystem. Insider trading happens when someone purchases or sells stocks while possessing private, material information about that stock.
Instant settlement network allows participants to exchange digital assets in real-time from anywhere in the world. An Institutional Investor is an organization or a legal entity that trades in the market on behalf of its clients that may be retail investors.
An exchange insurance fund is used to cover any unexpected losses from leveraged trading. This fund is used to prevent traders from bankruptcy in the event of liquidations. An integrated development environment IDE is a type of software that helps you develop apps by merging many development tools into a single graphical user interface GUI.
Intellectual property IP is a type of property that can be legally protected from being copied or sold — it includes intangible creations that result from human thinking such as a book, song, design, business method, or software. The Intercontinental Exchange ICE is an American company founded in to purchase and operate global exchanges and clearing houses. A time-dependent charge or return made in proportion to the amount of money deposited, borrowed or lent.
A person or entity that acts as the go-between different parties to bring about agreements or carry out directives. An internal transaction, also known as a "message," is a byproduct of an EOA interaction with a contract address that results in Ether being transferred. A meme is an image, a video, or a piece of text that is copied and spread rapidly by internet users. They are typically humorous but can also be critical as well.
Internet of Things IoT is a global interconnected network of devices, sensors and software that can collect and exchange data with each other in real-time over the Internet. Internet Service Providers ISPs are commercial entities that provide end-users with access to the internet.
Blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains. The InterPlatery File System is a peer-to-peer, distributed system for storing and accessing files, as well as websites and applications, which relies on content addressing rather than location.
Investing is when you put money in a financial scheme with the intent of making a gain. Investment vehicles are the assets classes in which investors put their money with hopes to increase the value of their portfolio in the future. IP addresses are unique numeric addresses assigned to devices connected to the internet or a local network. Java Java is a general-purpose, class-based as well as object-oriented programming language.
JavaScript is a powerful, dynamic, lightweight, and advanced programming language. It is mostly used in web-based applications. Keylogger A keylogger or keystroke logging software is a spying tool often used by hackers to record keystrokes made by users. Kimchi premium is a phenomenon occurring in South Korean crypto exchanges, making valuations appear higher than on other international exchanges. The Klinger volume oscillator is a volume-based technical indicator that compares volume to price to forecast price reversals in the financial markets.
Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers. Laser eyes is a viral Twitter meme that is used by Bitcoiners who attempt to push the price of BTC to its new all-time highs. It was originated with a hashtag, LaserRayUntil, back in February The Law of Accelerating Returns is a hypothesis by Ray Kurzweil based on the observations that technologies or any evolutionary system tend to progress in an exponential fashion.
Layer 0 is a network framework running beneath the blockchain. It is made up of protocols, connections, hardware, miners, and everything else that forms the foundation of the blockchain ecosystem. Layer 2 is the name given to a scaling solution that enables high throughput of transactions whilst fully inheriting the security of the underlying blockchain that it is built on.
A layer-1 blockchain is a set of solutions that improve the base protocol itself. A record of financial transactions that cannot be changed, only appended with new transactions. Money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. In the world of cryptocurrencies, leveraged tokens give you a leveraged position in trading, meaning that your earnings and losses are multiplied.
Libp2p is an open network protocol for decentralized peer-to-peer networking. Light nodes are typically downloaded wallets and are connected to full nodes to further validate the information that is stored on the blockchain. A limit order is a type of order to purchase or sell a security at a specified price or a better one. Tools that enable traders to automatically buy or sell cryptocurrencies on a trading platform when a certain price target is reached.
A liquid market features a large number of buyers and sellers. It is a platform where all the trades are executed with ease and at a low cost. Liquidation refers to the conversion of an asset or cryptocurrency for fiat or its equivalents.
How easily a cryptocurrency can be bought and sold without impacting the overall market price. A liquidity bootstrapping pool is essentially a contract that manages a core pool containing tokens to be used on an exchange. Liquidity mining is a mechanism or process in which participants supply cryptocurrencies into liquidity pools, and are rewarded with fees and tokens based on their share of the total pool liquidity.
Liquidity pools are crypto assets that are kept to facilitate the trading of trading pairs on decentralized exchanges. Liquidity providers are decentralized exchange users who fund a liquidity pool with tokens they own. Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange DEX that run on an automated market maker AMM protocol.
A guarantee that a system will continue to provide data, and that no centralized authority can shut down its services. Location swap allows the change of claim to the assets manifested in the form of a token with no effect on other attributes.
A situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. A long position longing refers to the situation where an investor buys a cryptocurrency or any other financial instrument to sell it later when the price goes high. Mainnet An independent blockchain running its own network with its own technology and protocol. Mainnet swap refers to the shift of a cryptocurrency project from one blockchain network to another which in most cases is its own native blockchain network.
A practice where a trader uses borrowed funds from a broker to trade a cryptocurrency. An area or arena, online or offline, in which commercial dealings are conducted. Market balances refer to the outstanding amount of tokens or coins after a trade has been made on a decentralized exchange DEX. It is one of the ways to rank the relative size of a cryptocurrency.
The maker places an order to buy or sell at a quoted price , while a taker accepts that placed order to execute the buy or sell at the quoted price. A purchase or sale of a cryptocurrency on an exchange at the current best available price.
Through signaling, market participants are essentially creating a volatile market which can help to point out the opportunities to the investors. Developed by Input Output Hong Kong IOHK , Marlowe is an easy-to-use programming language for experts with no programming expertise or knowledge, enabling them to write smart contracts for financial products. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Cryptocurrencies are digital or virtual currencies underpinned by cryptographic systems. They enable secure online payments without the use of third-party intermediaries. Cryptocurrencies can be mined or purchased from cryptocurrency exchanges.
Not all ecommerce sites allow purchases using cryptocurrencies. In fact, cryptocurrencies, even popular ones like Bitcoin , are hardly used for retail transactions. However, the skyrocketing value of cryptocurrencies has made them popular as trading instruments. To a limited extent, they are also used for cross-border transfers.
Central to the appeal and functionality of Bitcoin and other cryptocurrencies is blockchain technology. As its name indicates, blockchain is essentially a set of connected blocks or an online ledger. Each block contains a set of transactions that have been independently verified by each member of the network. Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories.
The contents of the online ledger must be agreed upon by the entire network of an individual node, or computer maintaining a copy of the ledger. Experts say that blockchain technology can serve multiple industries, such as supply chain, and processes such as online voting and crowdfunding.
JPM are testing the use of blockchain technology to lower transaction costs by streamlining payment processing. Bitcoin is the most popular and valuable cryptocurrency. An anonymous person called Satoshi Nakamoto invented it and introduced it to the world via a white paper in There are thousands of cryptocurrencies present in the market today. Each cryptocurrency claims to have a different function and specification. For example, Ethereum's ether markets itself as gas for the underlying smart contract platform.
Ripple's XRP is used by banks to facilitate transfers between different geographies. Bitcoin, which was made available to the public in , remains the most widely traded and covered cryptocurrency. As of November , there were over Only 21 million bitcoins will ever exist. In the wake of Bitcoin's success, many other cryptocurrencies, known as "altcoins," have been launched. Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch. Fiat currencies derive their authority as mediums of transaction from the government or monetary authorities.
For example, each dollar bill is backstopped by the Federal Reserve. But cryptocurrencies are not backed by any public or private entities. Therefore, it has been difficult to make a case for their legal status in different financial jurisdictions throughout the world.
It doesn't help matters that cryptocurrencies have largely functioned outside most existing financial infrastructure. The legal status of cryptocurrencies has implications for their use in daily transactions and trading. As of December , El Salvador was the only country in the world to allow Bitcoin as legal tender for monetary transactions. In the rest of the world, cryptocurrency regulation varies by jurisdiction. Japan's Payment Services Act defines Bitcoin as legal property.
Cryptocurrency exchanges operating in the country are subject to collect information about the customer and details relating to the wire transfer. China has banned cryptocurrency exchanges and mining within its borders. India was reported to be formulating a framework for cryptocurrencies in December. Cryptocurrencies are legal in the European Union.
Derivatives and other products that use cryptocurrencies will need to qualify as "financial instruments. Within the United States, the biggest and most sophisticated financial market in the world, crypto derivatives such as Bitcoin futures are available on the Chicago Mercantile Exchange. Although cryptocurrencies are considered a form of money, the Internal Revenue Service IRS treats them as a financial asset or property. And, as with most other investments, if you reap capital gains in selling or trading cryptocurrencies, the government wants a piece of the profits.
On May 20, , the U. How exactly the IRS would tax proceeds—as capital gains or ordinary income—depends on how long the taxpayer held the cryptocurrency. Cryptocurrencies were introduced with the intent to revolutionize financial infrastructure. As with every revolution, however, there are tradeoffs involved.
At the current stage of development for cryptocurrencies, there are many differences between the theoretical ideal of a decentralized system with cryptocurrencies and its practical implementation. Some advantages and disadvantages of cryptocurrencies are as follows.
Cryptocurrencies are digital assets and decentralized systems that allow for secure online payments. Any investor can purchase cryptocurrency from popular crypto exchanges such as Coinbase, apps such as Cash App, or through brokers. Another popular way to invest in cryptocurrencies is through financial derivatives, such as CME's Bitcoin futures, or through other instruments, such as Bitcoin trusts and Bitcoin ETFs. Cryptocurrencies are a new paradigm for money.
Their promise is to streamline existing financial architecture to make it faster and cheaper. Their technology and architecture decentralize existing monetary systems and make it possible for transacting parties to exchange value and money independently of intermediary institutions such as banks. Cryptocurrencies are generated by mining. For example, Bitcoin is generated using Bitcoin mining.
The process involves downloading software that contains a partial or full history of transactions that have occurred in its network. Though anyone with a computer and an Internet connection can mine cryptocurrency, the energy- and resource-intensive nature of mining means that large firms dominate the industry. Bitcoin is by far the most popular cryptocurrency followed by other cryptocurrencies such as Ethereum, Binance Coin, Solana, and Cardano.
Glosbe uses cookies to ensure you get the best experience. Log in. English Russian. Cryptococcus cryptococcus coccid cryptococcus fungi cryptocracy cryptocrystalline cryptocurrency Cryptodira cryptofax cryptogam cryptogamic cryptogamic diseases cryptogamous cryptogams cryptogamy cryptogenic. Bitcoin is a cryptocurrency. Show algorithmically generated translations. Examples Add. When I first read about the tulip craze I found the parallels with cryptocurrency and Bitcoin, in particular, uncanny.
Cryptocurrency exchanges. The cryptocurrency ShadowCash uses traceable ring signature to anonymize the sender of a transaction. Bitcoins and other forms of cryptocurrency used in dark markets are not clearly or legally classified in almost all parts of the world. Of course, money is now digital and we have digital dollars, euros and yen, but we also have cryptocurrencies.
There are already over cryptocurrencies in circulation. The existence of a cryptocurrency for the internet age is not what drives money laundering and terrorism. This graph plots the requests to buy known as bids and the requests to sell known as asks on a chart. Because you can put a limit order on your buy or sell transaction, the depth chart shows the crossover point at which the market is most likely to accept a transaction in a timely fashion.
It also shows if there are any significant buy walls or sell walls in play. This type of wallet is created by producing multiple keys from a seed. If you lose this wallet, your wallet key can be recovered from the seed.
Plus, when you make transactions, instead of producing new keys each time, you use variations from the seed, which makes it more transferable and easier to store. When someone refers to difficulty in the cryptocurrency space, they are referring to the cost of mining in that moment in time.
The more transactions that are trying to be confirmed at any single moment in time, divided by the total power of the nodes on the network at that time, defines the difficulty. The higher the difficulty, the greater the transaction fee — this is a fluid measurement that moves over time.
Used to confirm that a document being transmitted electronically is authentic. They generally appear as a code generated by a public key encryption. A ledger that is stored in multiple locations so that any entries can be accessed and checked by multiple parties.
In cryptocurrency, this refers to the blockchain being held on multiple nodes on the network, all of which are checked simultaneously. This occurs when someone tries to send a cryptocurrency to two different wallets or locations at the same time. Sometimes people will look to slow the network by deliberately flooding it with minor transactions that are incredibly small.
These minuscule amounts are referred to as a dust transaction. The standard to which each Ethereum token complies. It defines the way that each token behaves so that transactions are predictable. Other cryptocurrencies also use the ERC standard, piggybacking on the Ethereum network in the process.
When an intermediary is used to hold funds during a transaction, those funds are being held in escrow. This is usually a third party between the entity sending and the one receiving. One of the top three cryptocurrencies in the world based on its market capitalization. Despite being open source and based on blockchain technology, it differs from bitcoin in two key ways: it allows developers to create dApps and also write smart contracts. A virtual machine, effectively sitting in the cloud, that is Turing complete and is used by all nodes on the network during blockchain confirmations.
The platform through which cryptocurrencies are exchanged with each other, with fiat currencies and between entities. Exchanges can vary widely in the currency conversions they enable and their fee structures. If you find a website that offers to give you free cryptocurrency for connecting with them, it is termed a faucet. The majority of these are scams. Refers to money recognized as legal tender by governments, such as the US dollar, British pound, Euro and Australian dollar.
When a new version of a blockchain is created, resulting in two versions of the blockchain running side-by-side, it is termed a fork. As a single blockchain forks into two, they will both run on the same network. Forks are categorized into two categories: soft or hard. If there is no transaction cost and no restraints on trading, then the system is considered frictionless. As they fully enforce the rules, they are considered a full node. A method through which you can attach value to a coin by looking at similar economic and financial factors and researching the underlying motives of the creators and market opinion.
This is a pre-approved contract between two entities to fulfill a transaction when the value of cryptocurrency hits a certain price. A future contract becomes relevant when a buyer wants to go short and a seller wants to go long on the asset. Gas a is measurement given to an operation in the Ethereum network that relates to the computational power required to complete it.
That measurement relates to the fee offered to miners who process that transaction. Other operations have a small cost of 3 to 10 gas, but a full transaction costs 21, gas. When users make a transaction on the Ethereum network, they set their gas limit, which is the most they are willing to pay as a fee for that transaction.
If the transaction is going to cost more gas than what is offered, the transaction will not go through. If it costs less, the difference will be refunded. The amount you are willing to pay for a transaction on the Ethereum network. If you want miners to process your transaction fast, then you should offer a higher price.
Gas prices are usually denominated in Gwei. Every time miners approve transactions on the bitcoin blockchain, they earn bitcoin. As each block on the blockchain fills up with transactions, a certain amount of bitcoin enter the marketplace. However, the number of bitcoin that will ever be created is finite, locked at 21 million. In order to ensure this cap is kept, the amount of bitcoin earned by miners for filling one block is halved at the completion of that block.
This is called halving. For the record, by the year , all 21 million bitcoin will be in circulation. During an ICO, the creator can set a hard cap. This is the maximum amount it planned to raise, and it will therefore stop offering coins at this figure.
A fork in the blockchain that converts transactions previously labeled invalid to valid, and vice versa. For this fork to work, all nodes on the network must upgrade to the newest protocol. Hardware Wallet. A physical device, similar to a USB stick, that stores cryptocurrency in its encrypted form.
Measurement of performance that reveals how many hashes per second your computer is capable of producing. Each hash is an attempt to find a block by creating a unique block candidate and testing it against the network. In order to raise funds, the creator of a cryptocurrency will put an initial batch of its coins up for purchase. This is an initial coin offering.
Shorthand for Lamborghini, which is how someone might refer to themselves if they are getting rich quickly. The idea being there is so much money coming in that they are going to go buy an exotic car. A record of financial transactions.
A ledger cannot be changed, it can only be appended with new transactions. A peer-to-peer system for cryptocurrency micropayments that is focused on low latency, instant payments. If you set a rule whereby a cryptocurrency is sold or bought when at a certain price, you are setting a limit order. When traders place an order for a buy or sell, the system looks for these limit orders. The liquidity of a cryptocurrency is defined by how easily it can be bought and sold without impacting the overall market price.
If a transaction request comes with a rule delaying when it can be processed to a certain time or certain block on the blockchain, that is referred to as the locktime. When you intend to take a large amount of cryptocurrency and stockpile it with the anticipation that it will grow in value, you are going long or taking a long position. This is defined as the total number of coins in supply multiplied by the price. A risky strategy used by experienced traders where they risk their existing coins to magnify the intensity of their trades.
This allows them to buy more than they can afford using leverage provided by an exchange. As opposed to a limit order, a market order does not wait until a certain price to buy or sell; it trades wherever the price is at the time the transaction order is made. The term, somewhat confusingly, given to the process of verifying transactions on a blockchain.
In the process of solving the encryption challenges, the person donating the computer power is granted new fractions of the cryptocurrency. An investment in mining hardware whereby you rent out the hashing power of mining hardware for a certain amount of time. The renter does not pay for the hardware or the maintenance and electricity required to run it.
If a number of miners combine their computing power together to try and help complete the transactions required to start a new block in the blockchain, they are in a mining pool. The rewards are spread proportionately between those in the mining pool based on the amount of power they contributed. The idea is that being in a mining pool allows for better chances of successful hashing and therefore getting enough cryptocurrency reward to produce an income.
If a miner moves from one cryptocurrency blockchain to another depending on the profitability provided by the network at that moment in time, they are engaging in multipool mining. If, in order for a transaction to go through, more than one user needs to provide their unique code, then it is multi-signature. This system is set up at the creation of the account and is considered less susceptible to theft. A network refers to all the nodes committed to helping the operation of a blockchain at any given moment in time.
When a miner hashes a transaction, a random number is generated, called a nonce. The parameters from which that number is chosen change based on the difficulty of the transaction. When two orders for cryptocurrency are placed simultaneously with a rule in place whereby if one is accepted, the other is cancelled. The smart contracts stored on a blockchain are stuck within the network. They can only be reached by the external world through a program called an oracle.
The oracle sends the data to and from the smart contract and the outside world as required. Oracles are most commonly found on the Ethereum network. If a large number of purchases have been made on a cryptocurrency, its price will increase for an extended period of time.
At this juncture, it is considered overbought and a period of selling is expected. If a cryptocurrency has spent significant time being sold without an upward movement, it is considered oversold. In this condition, there would be concerns about whether it will bounce back. Storing your wallet code your private key on a physical document makes it a paper wallet. Peer to Peer. In a peer-to-peer connection, two or more computers network with each other without a centralized third party being used as an intermediary.
A period before an ICO goes public when private investors or community members are able to buy the cryptocurrency. A string of numbers and letters that are used to access your wallet. While your wallet is represented by a public key, the private key is the password you should protect with your life.
You need your private key when selling or withdrawing cryptocurrencies, as it acts as your digital signature. A private key that gives the holder the right to create the blocks in a private blockchain. It can be held by a single entity or a set number of entities. This is an alternative to the proof-of-work model, as instead of getting multiple random nodes to approve a transaction, a group of specific nodes are given the authority to approve.
This is a far faster method. So if a miner holds three coins, they can only earn three coins. The system encourages miners to stick with a certain blockchain rather than converting their rewards to an alternate cryptocurrency. In order to receive a reward for mining a cryptocurrency, miners must show that their computers contributed effort to approve a transaction.
A variable is added to the process of hashing a transaction that demands that effort before a block can be successfully hashed. Having a hashed block proves the miner did work and deserves a reward — hence proof of work. This is your unique wallet address, which appears as a long string of numbers and letters. It is used to receive cryptocurrencies.
This is a term used to refer to an upward price movement, usually driven by whales investing large sums of money in a cryptocurrency. The frowned-upon practice of buying a lot of one cryptocurrency to drive up its price and encourage others to invest, then selling the lot when there is a suitable margin. A type of technical analysis whereby you determine the momentum of price change over time. It looks at recent changes in price exponentially, with the most recent changes given more weight than older ones.
This produces an overall trend of movement for a cryptocurrency that can determine if the market is overbought a reading higher than 70 or oversold a reading lower than A ring signature is a type of encryption process that retains anonymity for the user. The concept gives the network of nodes the power to approve a transaction on a blockchain without identifying which of the nodes requested the transaction.
As a result, it cannot be traced. This is the smallest unit of bitcoin, which is 0. An algorithm that encrypts a key in such a fashion that it takes a serious amount of RAM to hash it. The system makes it challenging to attack for hackers. The origin point from which you created your wallet ID. Usually, a seed is a phrase or a series of words that can be used to regenerate your wallet ID if you lose it.
Something to keep very secret. The processes of separating digital signature data from transaction data. This lets more transactions fit onto one block in the blockchain, improving transaction speeds. This is because other miners are now burning their computational power on an old block, allowing the selfish miner to get a head start on the new block. When a large limit order has been placed to sell when a cryptocurrency reaches a certain value, that is a sell wall. This can prevent a cryptocurrency from rising above that value, as supply will likely outstrip demand when the order is executed.
secret or hidden; not publicly admitted: a crypto Nazi. QUIZ. QUIZ YOURSELF ON HAS VS. HAVE! Do you have the grammar chops. The meaning of CRYPTOCURRENCY is any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead. A decentralized virtual currency which is not controlled by any of the central banks. It is based on cryptography. Crypto transactions take place directly.