Blockchain & Cryptocurrency
Altcoin
Any cryptocurrency other than Bitcoin, such as Ethereum, Litecoin, or Ripple.
Bitcoin
The first and most well-known cryptocurrency, created by an anonymous person or group known as Satoshi Nakamoto.
Blockchain
A decentralized and distributed digital ledger technology used to securely record transactions across multiple computers, ensuring data integrity and transparency.
Consensus Algorithm
The mechanism used in blockchain networks to achieve agreement on the validity of transactions. Examples include Proof of Work (PoW) and Proof of Stake (PoS).
Cryptography
The practice of securing information through the use of algorithms to encrypt and decrypt data, ensuring privacy and security in cryptocurrency transactions.
Decentralization
The distribution of authority and control in a network, as opposed to a centralized system controlled by a single entity or authority.
Ethereum
A decentralized platform that allows developers to build and deploy smart contracts and decentralized applications (dApps) using its native cryptocurrency, Ether.
Fork
A change or update to the blockchain protocol, which can create a divergence in the blockchain, resulting in a split into two separate chains.
Hash
A cryptographic function that converts data into a fixed-size string, often used in blockchain to ensure data integrity.
Mining
The process of verifying and adding transactions to a blockchain, which typically involves solving complex mathematical problems and requires computational power.
NFT (Non-Fungible Token)
A unique digital asset, often representing art, music, or collectibles, that is stored on a blockchain and cannot be exchanged on a one-to-one basis with other tokens.
Private Key
A secret cryptographic key that allows the owner of a cryptocurrency wallet to sign transactions and access their funds securely.
Public Key
A cryptographic key that is publicly available and used to receive cryptocurrency transactions. It works in conjunction with a private key.
Proof of Work (PoW)
A consensus algorithm used in some blockchain networks, including Bitcoin, where miners must solve computationally difficult problems to validate transactions.
Proof of Stake (PoS)
A consensus algorithm used by blockchain networks (like Ethereum’s upcoming upgrades), where validators are chosen to create new blocks based on the amount of cryptocurrency they hold and are willing to “stake” as collateral.
Smart Contract
Self-executing contracts with the terms of the agreement directly written into code, automatically executed when conditions are met, commonly used on the Ethereum network.
Token
A unit of value issued on a blockchain, which can represent various assets such as currencies, utilities, or access to services.
Wallet
A software or hardware tool used to store and manage private keys, enabling users to send and receive cryptocurrency transactions.
Want to explore more? Stay tuned for new terms and updates!