CryptoFish GLOSSARY

Bitcoin and Blockchain Definitions & Terminology | Word Glossary by CryptoFish

Aa

Address

A Cryptocurrency address is the location coins and tokens are sent to and from when transactions occur. Addresses can be represented by text or QR-code.

Algorithm

A laid-down set of rules to be followed in making calculations or solving problems. The term is mostly used when referring to computer operations.

Altcoin

Also Known as alternative coins. Refers to all other Cryptocurrencies that are not Bitcoin.

Arbitrage

The process of buying Cryptocurrencies from a market with lower prices and selling in another with higher prices in order to make a profit.

ASIC

An acronym for “Application Specific Integrated Circuit”. An ASIC is a mining device specifically built for the sole purpose of mining a particular Cryptocurrency.

Ask

Refers to a sell order.

Atomic Swap

The exchange of a Cryptocurrency for different Cryptocurrency from another blockchain without the use of a centralized third party such as an exchange.
Bb

Bag

A bag refers to a considerable amount of a Cryptocurrency.

Bagholder

A person or entity in the possession of large amounts of a particular Cryptocurrency.

Bear

Someone who anticipates the fall of market prices and is generally pessimistic about future prices.

Bid

A buy order.

Bit

A sub-unit of bitcoin. A million bits make one bitcoin.

Bitcoin

The first successful Cryptocurrency. Bitcoin was created in 2009 by Satoshi Nakamoto.

Bitcoin Cash

The first Cryptocurrency created as a result of a split in the Bitcoin protocol. This “fork” of bitcoin has a larger block size and thus allows more transactions to be processed in a each block.

Bitcoin Improvement Proposal (BIP)

A document through which new features and information are introduced to Bitcoin. The three types of BIPs are standard track BIPs (for proposing changes to the Bitcoin protocol or validation of blocks), Information BIPs ( introducing guidelines or improvements in design) and Process BIPs (spell out proposed changes in process not related to the bitcoin protocol).

Blockchain

A decentralized network that records and secures transactional information using cryptography.

Blocks

A list or collection of transactions that happen within a particular time-frame on a blockchain.

Block reward

The reward miners receive for using their computational power to keep a network secure and alive by computing the valid hash in blocks. The block reward is part of the incentive system that aligns the interests of the miners with that of an entire network.

Bubble

A phenomenon where market prices of assets continually soar above their true value. Assets are said to be overpriced at this point.

Bull

Someone who anticipates increases in market prices of assets and is generally optimistic about future prices.
Cc

Candlesticks

Show the changes in market prices of assets over time on financial charts. Every candlestick or candle indicate the opening price, closing price, high and low for a given period.

Centralized

Used to qualify entities structured to allow a few actors or nodes control an entire network.

Chargebacks

Reversal of funds originally sent as payment for a good or service from a retailer. This means that funds deposited in retailer’s account are returned to the consumers account.

Cold storage

A wallet stored on a device that is offline . Eg. paper wallet, hardware wallet.

Confirmation

Said of a transaction that is mined and included in a block on a blockchain. Additional blocks represent more confirmations.

Consensus

Consensus is said to be achieved when all parties or actors in a network are in agreement with regards to the sequence and content of blocks and transactions included in the said blocks.

Cryptocurrency

A digital currency that employs cryptography in controlling the creation of extra units as well as ensuring the security and validation of transactions.

Cryptography

An area of study that focuses on the use of technology to promote privacy by allowing communication without exposing information to third parties.

Cryptojacking

another person’s or organization’s computer to covertly mine Cryptocurrencies.

Cypherpunk

Cypherpunk
Dd

Dark Web

A part of the internet that can only be reached using specialized software and configurations that allow users to operate anonymously.

Dead cat bounce

A short-lived increase in market prices after a major decline.

Decentralized

A system in which control and decision making power is shared by all actors and do not lie in the hands of a few nodes or actors.

Decentralized applications (dApps)

Software applications built on decentralized platforms.

Decentralized Autonomous Organization (DAO)

An organization governed by laid-down rules built into smart contracts.

Decentralized Exchange (DEX)

A trading platform that allows users to exchange digital assets without the use of a centralized third party.

Deflation

A decrease in general price levels. Bitcoin is considered a deflationary monetary system as a result of its fixed cap whereas fiat currency have engendered inflationary systems historically.

Difficulty

The difficulty with which miners are able to find new blocks. Some Cryptocurrency protocols allow the difficulty to be adjusted depending on the hashpower being used to mine on the network in a given period.
Ee

ELI5

Explain Like I’m 5. Calls for a simple breakdown of a complex phenomenon or concept that can be understood by even a five year old.

Enterprise Ethereum Alliance (EEA)

An ecosystem of large corporations, Ethereum developers and startups with the aim of using Ethereum blockchain technology to create tailor-made applications to bring about business solutions.

ERC20

A technical standard used in the creation of smart-contracts on the Ethereum blockchain for creating tokens.

Ether

The native currency of the Ethereum network.

Ethereum Improvement Proposal (EIP)

Ethereum Improvement Proposals (EIPs) describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards.

Ethereum Virtual Machine (EVM)

A programmable blockchain that allows users to execute their own code with varying degrees of complexity only limited by the amount of gas.

Exchange

Cryptocurrency exchanges are platforms that allow users to trade Cryptocurrencies. Some exchanges also allow crypto to fiat and fiat to crypto trades.
Ff

Faucet

A means of rewarding certain website or app users who perform stated tasks with small amounts of Cryptocurrencies and tokens. The strategy is often used to get users interested in the Cryptocurrency or token in question.

Fish

A person who holds only small amounts of a Cryptocurrency and have little influence on the market and price movements.

Flippening

The potential situation where the total market cap of Ethereum would surpass that of Bitcoin.

FOMO

An acronym representing “Fear Of Missing Out”. A feeling of missing out on potentially profitable investment opportunities.

FUD

Stands for “Fear, Uncertainty and Doubt”. This can come in the form of news items aimed at spreading fear, uncertainty and doubt with regards to a particular Cryptocurrency or Cryptocurrencies in general. The goal is to cause holders of the said Cryptocurrencies to panic sell.

FUDster

Someone who spreads FUD.
Gg

Genesis block

The first block of transactional information that is validated to form a blockchain.

GPU

Stands for Graphical Processing Unit and also know as Graphics card. GPUs are chips built to create 3D images on computers. There have, however, become popular for mining Cryptocurrencies.

Group mining

Also known as mining pool. Refers to individual miners combining their mining power in order to increase their chances of finding new blocks and sharing rewards.
Hh

Halving

Occurs when the mining reward for every confirmed block on the bitcoin network is reduced by half. Happens every 210,000 blocks mined.

Hard fork

A split in the protocol of a Cryptocurrency that leads to the creation of two incompatible protocols (one following the old protocol and the other following the new protocol).

Hash Rate

Also known as hash power. It is the unit measurement of the computing power being expended to keep a network operational. Hash rate can be measured in kH/s, MH/s, GH/s, TH/s, PH/s or EH/s.

HODL

Term refers to holding crypto assets for long periods regardless of changes in price. “HODL” was popularized following a post on the bitcoin forum in which the word “hold” was mistyped as “hodl”.
Ii

Immutable

A characteristic of truly decentralized blockchains that makes changes to recorded information impossible.

ICO

Initial Coin Offerings are a means of crowdfunding to raise capital for new businesses using Cryptocurrencies instead of more traditional means like venture capital and IPOs.
Jj

JOMO

The acronym for “Joy Of Mission Out” is often used by people without any Cryptocurrency assets to express how delighted they are about being no-coiners.
Kk

KYC

Know Your Customer regulations require financial institutions to be capable of identifying their customers. KYC is one of the means used by regulatory bodies to tackle anti-money laundering practices.
Ll

Limit Order

These are orders made by trader to automatically purchase or dispose of a certain volume of a Cryptocurrency when a price is reached.gulatory bodies to tackle anti-money laundering practices.

Liquidity

This refers to the level of activity in a market with respect to the amount of volume being traded. Assets or markets with more liquidity are not easily impacted by single any trades. The opposite is true for assets with little liquidity.

Litecoin

The open source project and decentralized Cryptocurrency created by Charlie Lee in October 2011. The Cryptocurrency which is an offshoot of Bitcoin differentiates itself with faster block propagation times, a higher cap on total number of coins and a different mining algorithm. Litecoin was designed to work better for payments.

Long

Buying a Cryptocurrency asset with the expectation that it’s price would increase in the future. The idea is to sell for profit if the value does increase in the future.
Mm

Mainnet

The live main network on which real transactions are made on a blockchain.

Market Cap

The market capitalization of a Cryptocurrency is calculated by multiplying the total number of coins in supply by its unit price.

Market order

A trade that buys or sells a certain volume of a Cryptocurrency at the best available price on the market.

Mining

Refers to the use of computational power to verify transactions and include them in blocks to be added a blockchain.

Moon

A Cryptocurrency is said to moon when its price rallies for an extended period. The informal term is often used in the Cryptocurrency community discuss continuous upward price movement.
Nn

Network

A network is made up of all the nodes participating in the operation of a blockchain.

Node

Cryptocurrency networks are made up of nodes that are devices that hold and maintaining the transactional history of a network. Each node holds a copy of a blockchain’s data.

No-coiner

This refers to an individual who doesn’t own any Cryptocurrency.

Non-custodial

Non-custodial services in the Cryptocurrency industry are those that allow users to have control of their own private keys. For instance, decentralized exchanges are non-custodial because they do not keep private keys to user’s coins and tokens.
Oo

Option

This is a contract that gives the holder the right to purchase or sell an underlying instrument at a stated price. The holder of the contract is, however, not obligated to buy or sell.

OTC

Over-the-counter transactions are those that are carried out outside exchanges. Over-the-counter transactions are the useful for trades involving huge volumes that would greatly impact price if done on exchanges. It is also the only way to go in jurisdictions that have outlawed Cryptocurrency exchanges.
Pp

Pair

Trading pairs represent pairs of assets that between which exchange can be done. Eg. USDT/BTC trading pair signifies exchange of USDT and BTC and vice versa.

Paper wallet

Is a type of offline storage created by printing addresses and corresponding private keys on paper.

Portfolio

Refers to all the Cryptocurrency assets held by an individual or institutional investor.

Pre-mine

This occurs when a percentage of a Cryptocurrency’s initial supply is created before it is released to the general public to participate in mining. Funds realized from pre-mines are often allocated for promoting the Cryptocurrency, listing fees and developer bounties amongst others.

Pre-sale

This is the sale of some ICO tokens before the date the public is invited to make purchases.

Private key

A secret code generated through a sophisticated form of cryptography that allows owners of Cryptocurrencies to have sole control over their coins.
Qq

QR-code

A code made up of numerous black and white squares that stores information that can be read by machines. For instance, QR-codes are used to store information on bitcoin addresses that can be read by mobile phone cameras.
Rr

REKT

Short form of “wrecked” and used to express a terrible loss from trading.

ROI

Is the acronym for Return on Investment and is the ratio of the net profit to cost of investment.

Ripple

A payment-focused Cryptocurrency created by Ripple Labs. Ripple (XRP) fast confirmation times, low fees and unit price have made the Cryptocurrency useful for moving funds between exchanges even though it was created to serve as a global payment network.
Ss

Satoshi

Is the smallest unit of bitcoin and is equal to 0.00000001 btc.

Satoshi Nakamoto

Is the pseudonymous person or group of persons who invented Bitcoin in 2009.

Second-layer solutions

Networks built on top of base blockchains to improve scalability and efficiency. An example is the Lightning Network with help Bitcoin scale and is more efficient for small transactions.

Shill

A person who overzealously promotes a Cryptocurrency project or ICO. also refers to the act of doing so.

Shitcoin

A coin with no real use case or application.

Silkroad

A now defunct dark web market that accepted bitcoin for purchases.

Stable coin

A digital asset pegged to other assets like gold or fiat currencies.
Tt

Testnet

A blockchain used by developers to test proposed improvements to the actual blockchain.

Tokenize

The is the process by which physical assets are ascribed digital value. Tokenization helps eliminate ownership disputes and makes it possible to trade parts of assets that are otherwise indivisible.
Uu

Unconfirmed

Qualifies a transaction that is yet to be verified and added to a blockchain.

Unspent transaction

This refers to an unspent transaction output. Unspent transactions can be used as input for future transactions.
Vv

Vanity address

A public address with customized numbers and letters selected by the owner.

Virgin Bitcoin

Bitcoin that is yet to be moved from its original address.

Volatility

Is the measure of the tendency of an asset, asset class or market to rise and fall in a short time-frame. The crypto market is known for its extreme volatility.

Volume

Refers to the total amount of a Cryptocurrency that has been traded over a given period.
Ww

Wallet

A digital wallet that is used to send, receive and store Cryptocurrencies.

Wash trade

Fake trading between bots or individuals on exchanges for the purposes of price manipulation or create the impression that a particular exchange sees a lot of trading volume.

Weak hands

A crypto holder who is likely to sell when faced with negative news or signs of price decline.

Whitepaper

Is a document used to introduce the general public to an ICO project with the purpose of attracting potential investors. The document usually contains information about the ICO team, roadmap, technical information as well as use cases.
Xx

XRP

Ticker symbol for Ripple, the second largest Cryptocurrency by marketcap.
Yy

YTD

Means year to date.
Zz

Zero confirmation transaction

Another phrase for unconfirmed transaction.
#

51% attack

This occurs when an attacker gains control of more than 50% of the mining hashrate of a network. The attacker is then able to double spend transactions, censor transactions and take charge of all mining on the network in question.