Thursday, May 6, 2021

Moore’s Law: Defined in CryptoCurrency

Moore’s Law is an observation that computer technology becomes quicker and smaller with time.

This observation was first made by Gordon Moore in 1965. Gordon, a co-founder of the computer company Intel, found that the number of transistors (an electronic device that controls the flow of electricity) in one square inch doubles every year.

Mtgox.com: Defined in CryptoCurrency

Mtgox or Mt. Gox was one of the first websites where bitcoin could be exchanged for regular government issued money like US dollars.

In 2014, Mt. Gox closed after roughly 850,000 bitcoin was declared lost or stolen.

Mt. Gox was created in 2006 by Jed McCaleb who named it after Magic: The Gathering Online Exchange where users could cards like stocks. Jed later sold Mt. Gox to Mark Karpelès in 2011.

Multisignature: Defined in CryptoCurrency

Multisignature means more than one signature or approval is required before a transaction can take place.

Multisignature increases the security for cryptocurrencies so that one person cannot take all of the money for himself without approval

Dark Web: Defined in CryptoCurrency

Dark web is defined as a part of the Internet that is only visible to people with special software that allows them to hide their identities. It is known for providing illegal info and services.

The Internet is often broken down into 3 different parts:

The surface web: What you see in search engines like Google.
The dark web: What Google doesn’t see like password protected pages.
The deep web: The anonymous, slightly complex part of the Internet where illegal activities often occur.

While the phrases “dark web” and “deep web” are often used interchangeable, there is a difference as seen above.

And while the deep web is known for providing illegal information, services and products (drugs, hackers, etc.) not all is bad.

The deep web is only accessible through the free anonymous browser known as TOR. Though accessing it only through TOR may not be enough to keep you truly anonymous.

Digital Asset: Defined in CryptoCurrency

A digital asset is defined as any electronic file (text, picture, audio, etc) that you have the rights to use.

If you do not have the rights to using that file, it is not a digital asset.

Digital assets can be transported or accessed on many types of technology including CDs, computers, USB drives, blockchain, etc.

Digital Signature: Defined in CryptoCurrency

A digital signature is permission and proof done through a computer that an authorized person has agreed to something.

When a signer authorizes something, they use their private key known only to them, to encrypt information along with a stamp of the time of signing. If the information is somehow modified, the time stamp will be altered and the digital signature becomes void and invalid.

The person receiving or verifying the signed and encrypted information uses the signer’s public key to verify the information came from the signer.

Digital signatures are used by cryptocurrency systems to allow the owner to send and receive money.

Dildo: Defined in CryptoCurrency

A dildo is a long green or red bar found on a graph showing the changes in price of a cryptocurrency.

Green and red bars of any size are known as candles.

Dip: Defined in CryptoCurrency

Dip is defined as a drop in the price of an asset such as a stock or cryptocurrency.

Directed Acyclic Graph [DAG]: Defined in CryptoCurrency

A directed acyclic graph or DAG is a structure that is built out in one single direction and in such a way that it never repeats. Here a “graph” is simply a structure of units.

“Directed” describes the connection between each unit in the structure, and that they all flow the same way. And “acyclic” means describing something that is not circular or repeating.

A good example of a directed acyclic graph is a checklist. In order to do step 10, you must have done step 9, and before you can do step 8, you must have done step 7 and so on.

If you were to list out these steps on a graph, you would see the flow from 1-10 and that it never repeats itself going back to 1. If it did repeat, it would not be a directed acyclic graph.

Another example of a DAG is a family tree. Your grandparents had your mom and her brother. Your mom met your dad and had you. Your mom’s brother met his wife and had their kids. In no way does your grandpa or grandma ever show up again beneath you.

Distributed: Defined in CryptoCurrency

Distributed is defined as a type of computer system that is run simultaneously by many computers but run as a single system.

There are 3 separate goals a distributed computing system may be designed for:

Performance: Be able to do a lot of intense computing in a short time.
Scalability: Be able to service many people, in many locations at the same time.
Reliability: Be able to service people even if one fails or is unavailable.

Distributed Ledger [DLT]: Defined in CryptoCurrency

Distributed ledger is defined as a system of independent computers all simultaneously recording data. With distributed ledger technology, identical copies of the recording are kept by each computer.

We can define a distributed system, as one where all computers work independently toward the same goal as one large system. We can define a ledger as a book used to record transactions (money in, money out).

However, distributed ledger technology has evolved beyond recording transactions so that it can record any data. With distributed ledger technology, there is no central authority maintaining the system.

Instead, updates to the ledger are independently created and then voted on. Once an agreement regarding the update has been reached, a recording is made in the ledger.

The latest version of the ledger, with the new recording, is then saved to each computing system and the process repeats itself. The first type of distributed ledger technology is called the blockchain.

Diversification: Defined in CryptoCurrency

Diversification is defined as a strategy where you buy many different investments as a way to increase your chances of becoming profitable and minimize your chances of losing everything.

Many investors are big fans of diversification, but like anything it can be overdone. By spreading yourself too thin across many different investments, you have a low risk of losing everything, but you also will not make huge profits.

If at the beginning of Facebook, Mark Zuckerberg, the founder had asked you for $5.000 as an investment, would you do it? Of course you would.

As a diversified investor, you might only want to give him $100-500 so you could avoid risking all of your money.
In other words, diversification works well with investments that you have little knowledge or understanding in.

Double Spending: Defined in CryptoCurrency

Double spending is defined as the action of spending digital money twice. It is meant to cheat the first person out of their money before they’ve received it.

Bitcoin was the first digital money to provide a good solution to prevent double spending. Bitcoin prevents double spending with a permanent, public and digital book of records known as the blockchain.

This blockchain can record any information. Each page in that book can be considered to be a block.

Because the blockchain public, many people are simultaneously verifying and recording information on it using their computers. After enough users in this network confirm your transaction, the guy who wants double spend cannot.

Dust Transactions: Defined in CryptoCurrency

Dust transactions describes a purchase or sale using a tiny amount of cryptocurrency.

DYOR: Defined in CryptoCurrency

DYOR short for Do Your Own Research and is defined as doing research before making an investment.

There are many manipulating people who urge others to buy a cryptocurrency so the price will rise and they can sell it for a profit.

DYOR is advice to do research studying websites, Reddit, forums, and more before making an investment.

Enterprise Ethereum Alliance [EEA]: Defined in CryptoCurrency

Enterprise Ethereum Alliance also EEA are a group of organizations all working together to learn better ways to grow and build the cryptocurrency known as ethereum.

J.P. Morgan, Microsoft, Intel, Accenture, BP, and Credit Suisse were the founding members creating the Enterprise Ethereum Alliance (EEA) in February 2017.

In July 2017, the number of organizations in the EEA surpassed 150, pushing the EEA into the largest open-source blockchain initiative in the world. Newcomers included Cisco Systems and MasterCard among others.

EEA Specification 1.0 Document (Download Now)

EEA EXPANDS INTO ASIA WITH JAPAN OFFICE:
KAZUAKI ISHIGURO APPOINTED REGIONAL HEAD
(Read More)

Introducing Enterprise Ethereum Alliance:

The Enterprise Ethereum Alliance (EEA) is the industry’s first global standards organization to deliver an open, standards-based architecture and specification to accelerate the adoption of Enterprise Ethereum.

The EEA’s world-class Enterprise Ethereum Client Specification and forth-coming testing and certification programs will ensure interoperability, multiple vendors of choice, and lower costs for its members - the world’s largest enterprises and most innovative startups.

For additional information about joining the EEA, please reach out to: membership@entethalliance.org.

Trust, Privacy & Performance:

Ethereum's intrinsically trusted system is the most promising solution for enterprise Blockchain adoption, given its maturity and multi-purpose design. Privacy and Performance improvements will be mandatory to achieve enterprise-ready status and will be the focus of Enterprise Ethereum’s roadmap.

Community & Resources:

In partnership with the dedicated and robust Ethereum community, Enterprises are coming together to produce the industry standard, open source, free to use blockchain solutions that will be the foundation for businesses going forward.

Electrum Wallet: Defined in CryptoCurrency

The electrum wallet is a secure and free wallet that allows people to store bitcoin more quickly and easily. Bitcoin transactions are kept on a digital record, known as the blockchain, and is maintained by thousands of people around the world.

This digital record is growing larger every day and in 2016, it exceeded 100 gigabytes. A wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.

The benefit of an electrum wallet is that it doesn’t have to download and maintain the entire massive blockchain file.

Emission: Defined in CryptoCurrency

Emission, also known as Emission Curve, Emission Rate, and Emission Schedule is the speed at which new cryptocurrency coins are created and released.

Many cryptocurrencies are set up so that new coins are created on a regular basis, this can be measured by an emission rate. Sometimes a limit is placed on how many coins will ever be created, this is known as the max supply.

Some cryptocurrencies have no limit and so a small emission will continue, forever.

Encryption: Defined in CryptoCurrency

Encryption is the process of locking information in an unreadable form so it can be kept secret. Encryption has existed for thousands of years.

With the use of computers, encryption has become much more difficult to break without the code.

Escrow: Defined in CryptoCurrency

Escrow is a part of the transaction process where the buyer and seller store money or other valuables with a third-party to minimize risk.

The escrow service holds onto the valuables and won’t release it until the agreement has been met.

Ethereum-[ETH]

Ethereum [ETH]:

Ethereum is the second largest cryptocurrency. Ethereum is built with publicly available software that developers can use to build their own cryptocurrency and software.

Some cryptocurrencies built with it include: OMG, Qtum, EOS, and BAT.

Some of the apps built from it include games, social networks, and marketplaces.

Introduction:

Work on Ethereum started in 2013, when its creator Vitalik Buterin failed to get enough support for his proposal to start application development on top of Bitcoin’s blockchain.

Ethereum is above all a platform for decentralized software development.

The value of its associated currency Ether is based on its utility – it is also used as a fuel that powers the decentralized apps (daps) and other functionality (smart contracts).

Ethereum has its own Turing complete or computationally universal internal code – meaning that any software application can be built on top of it, giving the technology a very broad range of use.

Smart contracts are ones allowing to program a contract which executes when given variables are met.

Finally, blocks are mined in a matter of seconds allowing quick transaction times.

The utility of Ethereum goes beyond digital cash and therefore has garnered a lot of attention from investors and institutions.

Its development team is covered by the Ethereum Foundation, a Swiss non-profit organization.

Every aspect of Ethereum is well documented and openly discussed and there is a lot of effort to promote Ethereum’s functionality to software developers and businesses.

Ethereum is well on its way to storm the industry and become the number one platform for decentralized software application.
What are Smart Contracts?

Imagine you want to bet someone a 1000 ETH on who wins the presidential elections.

You both put 1000 ETH on the smart contract, you agree on the data feed for the election results.

Once the president is elected, the winner is automatically rewarded with 2000 ETH from the escrow contract.

This is a very simple example of a smart contract, but many inputs and conditions can be defined so that, automatically executed smart-contracts can be used for will settlement, trust funds, work-contracts, industrial-grade agreements without the need for intermediaries.

Once agreed upon, the smart contracts cannot be altered by one of the parties or a third party. They can’t be hacked or nullified.

Influencers:

Vitalik Buterin:

The main driving force behind Ethereum. On the cryptocurrency scene since its beginning, Buterin proposed and described Ethereum in his 2013 whitepaper when he was seventeen. After seeing the shortcomings of Bitcoin. Ethereum’s co-founder who openly discussed and presented the technical and strategic choices for Ethereum.

Vlad Zamfir:

A long-term member of the Ethereum R&D team, very voiced and often sharing all his findings without sugarcoating them. Very valuable source of information from Ethereum’s development.

Ming Chan:

The Executive Director of the Ethereum Foundation who is paving the way for the blockchain technology by working on legal and regulatory matters and cooperating with key industry players.

Jeffrey Wilcke:

One of the founders and the creator of Ethereum - as in the one who coded it to existence using the Go programming language. Wilcke has been the head developer of the Ethereum platform ever since.

Investors:

International Private-Banking Institutions and Large Corporations, such-as, J.P. Morgan, Microsoft, Intel, Accenture, BP, and Credit Suisse were the founding members creating the Enterprise Ethereum Alliance (EEA) in February 2017.

In July 2017, the number of organizations in the EEA surpassed 150, pushing the EEA into the largest open-source blockchain initiative in the world.

Newcomers included Cisco Systems and MasterCard among others.

Roadmap:

The development of Ethereum was originally divided into 4 stages.

Frontier was the beta stage, which called for user caution; Homestead is the current version launched in March 2016, considered stable;

Metropolis, which is being tested since September 2017, its main focus is to make dap development and the whole EVM environment more user-friendly to promote steep adoption;

Serenity is the final (for now) stage. It aims to improve scalability by adding sharding, offer more privacy for users and to switch from Proof of Work to Proof of Stake; the so-called “virtual mining” which consumes less resources while keeping the network secure and agreeing on a single sequence of blocks.

The Serenity stage is to make the protocol.

“industry-ready”, deadline for Serenity has not been set yet.

Conclusion:

Since Ethereum is a decentralized businesses can create their business logic and thrive with Ethereum. The potential of Ethereum has been recognized by many Fortune 500 companies who participate in its development.

These include J.P. Morgan, the biggest US bank, Microsoft, Intel, BP, Thomson Reuters, the Russian Development Bank, and Russian Bank System. The development of Ethereum is not stopping, and its use is growing.

WEBSITE-SOURCE

Exchange: Defined in CryptoCurrency

An exchange is defined as a place where something of value can be traded. One of the purposes of an exchange is to ensure fair trades are conducted.

Traditionally, stocks were a common item traded on exchanges. Now with exchanges for cryptocurrencies, many new exchanges are being built in countries around the world.

Faucet: Defined in CryptoCurrency

A faucet is a website or application that provides small, free amounts of new cryptocurrencies to help increase awareness.

Financial Crimes Enforcement Network: Defined in CryptoCurrency

Financial Crimes Enforcement network or FinCEN is a part of the US government that analyzes financial information so they can protect the US financial system.

FOMO: Defined in CryptoCurrency

FOMO is short for Fear of Missing Out. FOMO is often felt when you see a coin start to increase in value and you don’t yet own it.

FUD: Defined in CryptoCurrency

FUD is short for Fear, Uncertainty and Doubt. FUD is any information that is supposed to create feelings of fear, uncertainy, doubt and other negative emotions.

FUDster: Defined in CryptoCurrency

A FUDster is someone who spreads FUD and FUD is short for Fear, Uncertainty and Doubt. FUD is any information that is supposed to create feelings of fear, uncertainy, doubt and other negative emotions.

Full Node: Defined in CryptoCurrency

A full node is defined as a computer that has a complete, current copy of the blockchain software.

A node is defined as any computing device (computer, phone, etc.) that is maintaining a network. Cryptocurrencies are supported by a network of computers each keeping a digital record of the data known as a blockchain.

A computer, a phone, or any other computing device that can receive, transmit, and/or contribute to the blockchain is a node.

When talking about blockchain technology, we have two types of full nodes:

A full node that maintains an entire copy of the blockchain program and also receives, records, verifies, and transmits transactions on the blockchain. This process is known as “mining”.
A full node that only receives and transmits transactions on the blockchain program. This process is passive and relies on a mining full node for updates.

Gains: Defined in CryptoCurrency

Gains are defined as increases in value. When used to describe cryptocurrency, it is an increase in value and profit.

Gas: Defined in CryptoCurrency

Gas is a small amount of ethereum paid to people who use their computers to record transactions and do other software actions.

Gas is calculated by multiplying a very small amount of ethereum, known as gas price or gwei, and multplying that by how much gwei you want to spend known as gas limit.

Because 1 ethereum = 1 billion (1,000,000,000) gwei, gas costs are usually very small, around several dollars. If the amount of gas is insufficent to complete the work, the work will fail. On the other hand, you can pay a bit more gas and expect the computers to complete your task sooner.

Gas Price: Defined in CryptoCurrency

Gas price is a very small amount of ethereum and it is multiplied by an amount known as gas limit to pay people to record transactions and do other software actions.

If the amount of gas is insufficent to complete the work, the work will fail. On the other hand, you can pay a bit more gas and expect the computers to complete your task sooner.

Gas is calculated by multiplying a very small amount of ethereum, known as “gwei” and “gas price”, and multplying that by how much you want to spend, known as the “gas limit”.

The very small amounts of ethereum used in gas price are known as gwei. 1 ethereum = 1 billion (1,000,000,000) gwei. A typical gas price is 20 gwei, but it can go as high as 50 during peak usage and as low as 2 gwei for a slower transaction.

Gdax.com: Defined in CryptoCurrency

Gdax or GDAX is short for General Digital Asset Exchange, it is a cryptocurrency exchange company owned by Coinbase. Gdax provides more advanced tools than Coinbase for people who want to regularly trade cryptocurrencies.

Genesis Block: Defined in CryptoCurrency

A blockchain is a digital book of records where each new page made in that book is what is known as a “block”. Those blocks are connected in one group known as the blockchain. The first block in a blockchain is known as the genesis block.

Graphical Processing Unit [GPU]: Defined in CryptoCurrency

A Graphical Processing Unit or GPU, is defined as a computer chip that creates 3D images on computers. GPUs are often called graphics cards.

Blockchains require people receive, record, verify, and transmit information. That process is known as “mining”. Because mining requires computer power, people do this work in return for money. GPUs were one of the first tools used to mine.

Green or Red: Defined in CryptoCurrency

Green or red is defined as, the color of pricing charts used to show the change in value of an asset like cryptocurrencies or stocks.

A green color on charts means the price is increasing in value. While a read color on charts means the price is decreasing.

When you are “seeing green” that means overall, the charts are displaying a green color and the price has been increasing. Compared that with “seeing red” where the charts are mostly displaying a red color and the price has been decreasing.

Gwei: Defined in CryptoCurrency

Gwei is a very small amount of ethereum coin used to calculate transaction fees for sending ethereum to another. One ethereum coin is worth 1 billion (1,000,000,000) gwei.

Hacking: Defined in CryptoCurrency

Hacking is the process of using a computer to manipulate another computer or computer system in an unauthorized and unapproved way.

Halving: Defined in CryptoCurrency

Halving comes from an Old English word meaning “half”. In cryptocurrencies, mining is a computer process of recording and verifying information on the digital record known as the blockchain.

In bitcoin and other currencies, mining also requires computers compete with each other to solve a complicated math problem.

Once solved, a new block is discovered that can be added to the chain of blocks and a reward of brand new bitcoin is given to the computer that solved the math problem first. Halving is the reduction of the bitcoin mining reward issued by half.

Hard Cap: Defined in CryptoCurrency

Hard cap is defined as the maximum amount of money a cryptocurrency can receive from investors in its Initial Coin Offering (ICO).

An ICO is the limited-time process by which new cryptocurrencies make their coins publicly known and begin selling them directly to people.

People invest their money in these coins in the hopes that they will later be worth many times more that what was paid. A hard cap is the major financial goal and is always larger than the small cap.

Hard Fork: Defined in CryptoCurrency

Hard fork is defined as a decision to make a permanent change to the technology used by a cryptocurrency.

This change makes all new recordings (blocks) very different from the original blocks.

They are changed so much that new blocks are seen as invalid to anyone who didn’t upgrade their technology. Which means, any computer that is not updated with the new technology, will find these new blocks appear invalid.

This process can cause a lot of trouble which is why, for a hard fork to go smoothly, it is important everyone agrees to the change. Any new fork in the blockchain can fail and if it does, all users will return to the original recording.

Hardware Wallet: Defined in CryptoCurrency

A hardware wallet is a specially designed device to lock away access to your cryptocurrency.

The device is extra secure because it is disconnected from the Internet and other computers and is virtually virus-proof.

A cryptocurency wallet is software that interacts with the network of recordings (blockchain) and lets users receive, store, and send their digital money.

Hash Function: Defined in CryptoCurrency

A hash function is defined as a computer program that takes information and turns it into letters and numbers of a certain length.

For example, “I like bitcoin” can be hashed and will equal: ad3e58f21b94f32dcadca6b71df4c31a18179f38011551a17a80d0ff065d22c5

If I were to capitalize the “b” in bitcoin, so it says, “I like Bitcoin” the hash will be completely different: d988ca30eaa88c0410ad6e48a5297c0d505dcee572f9884f1a6fa2cbc8dedc86

Hashing is used to make storing and finding information quicker because hashes are usually shorter and easier to find. Hashes also make information unreadable and so the original data becomes a secret.

Hash Rate: Defined in CryptoCurrency

Hash rate is defined as the speed that a computer can take any set of information and turn it into letters and numbers of a certain length. Hash rate is also the combined hash speed of every computer in the network. Hash rate is calculated at hashes per second (h/s).

Hash rate is important for computers that mine. Mining is the process of recording and verifying information on the digital record known as the blockchain. The blockchain is made up of a sequence of single recordings known as a block.

To keep the blockchain network running smoothly, only one block can be created at a time. To control when blocks are created, users are required to make their computers solve a math problem involving hashing. The first computer to solve this problem can create a new block and record information on the blockchain.

Miners often purchase very expensive specially designed computers that have higher hash rates to increase their chances of solving the math problem first. These mining computers use tons of electricity to power their computers. This expensive process earns miners a reward in brand crypto plus fees paid by each user for their transactions.

Similar to memory size, hash rate is counted like this:

1 kilo hash per second is one thousand (1,000) hashes per second
1 mega hash per second is one million (1,000,000) hashes per second.
1 giga hash per second is one billion (1,000,000,000) hashes per second.
1 tera hash per second is one trillion (1,000,000,000,000) hashes per second.
1 peta hash per second is one quadrillion (1,000,000,000,000,000) hashes per second.
1 exa hash per second is one quintillion (1,000,000,000,000,000,000) hashes per second.

Hidden Cap: Defined in CryptoCurrency

Hidden cap is an unknown limit to the amount of money a cryptocurrency can receive from investors in its Initial Coin Offering (ICO).

An ICO is the limited-time process by which new cryptocurrencies make their coins publicly known and begin selling them directly to people. People invest their money in these coins in the hopes that they will later be worth many times more that what was paid.

The circumstances and limits of a hidden cap are created and known only by the development team.

The purpose of a hidden cap is to allow smaller investors a chance to put their money into a new cryptocurrency by discouraging very wealthy investors from putting in large amounts of money.

Because large investors want to know the total supply of an asset before investing, a hidden cap prevents this awareness and can limit how much they are willing to spend.

HODL: Defined in CryptoCurrency

HODL is defined as a misspelling of “hold” that evolved into a shortened form of “Hold On for Dear Life”.

After buying crypto, a person who is HODLing intends to keep it even as prices go up and down.

Originally a misspelling of “hold”, HODL became a popular term among those who buy cryptocurrencies.

A person who does this is known as a “HODLer” or “HODLER”.

Hot Storage: Defined in CryptoCurrency

Hot storage is defined as digital data storage that is provides immediate access. Hot storage is often connected to the Internet. Also known as “hot wallet”.

Unlike cold storage, hot storage is typically connected to other computers, networks or the Internet. Hot storage always has rapid access times. Shorter access times means less control and security.

There are many types of hot storage including:

Storing your cryptocurrency on an exchange.
Storing your cryptocurrency on an often connected computer.
Storing your cryptocurrency on cloud storage.

Hyperledger: Defined in CryptoCurrency

Hyperledger is an organization started by the Linux Foundation with the purpose of expanding the use of blockchain technology. Imagine the blockchain as a digital book of records where each new page made in that book is what is known as a “block”.

Those blocks are connected in one group known as the blockchain and are maintained simultaneously by a network of computers. Because of this, updates become permanent and changing the recording is almost impossible.

Because the records aren’t stored in any one location, and every unit in the network keeps their own copy, it becomes even harder to manipulate. That means, the information is very safe despite being shared by so many units.

Initial Bounty Offering [IBO]: Defined in CryptoCurrency

An Initial Bounty Offering or IBO is the limited-time process by which a new cryptocurrency is made public and distributed to people who invest their skills and time to earn rewards in the new cryptocurrency.

Unlike an Initial Coin Offering where the coins are sold, an IBO requires more mental commitment.

Inflation: Defined in CryptoCurrency

Inflation is the yearly increase in the prices of products and services, and is measured as a percentage. In other words, increasing inflation means your $5 bill will purchase fewer and fewer candy bars.

Government issued money like US dollars are created all the time, there is no limit, and the creation of new money creates inflation.

Many cryptocurrencies are set up in the same way where brand new coins are created regularly.

Initial Bounty Offering [IBO]: Defined in CryptoCurrency

An Initial Bounty Offering or IBO is the limited-time process by which a new cryptocurrency is made public and distributed to people who invest their skills and time to earn rewards in the new cryptocurrency.

Unlike an Initial Coin Offering where the coins are sold, an IBO requires more mental committment.

Input: Defined in CryptoCurrency

Input is defined as cryptocurrency being received into your digital wallet.

Cryptocurrency coming into your digital wallet is known as an “input”.

Let’s say you want to spend 10 bitcoin, if you have 3 inputs (3, 9, and 15) then the first two are combined (3+9=12) and both are sent out as outputs.

After transaction fees are spent, the remaining balance (about 2 bitcoin) is sent back to you as an input.

Your input is always another’s output. And reversely, your output is always another’s input.

Instamine: Defined in CryptoCurrency

Instamining means new cryptocurrencies, for a short time after launch, are very easy to create.

The purpose of instamining is to accumulate a large quantity of the available supply early on and later sell it for a big profit.

Mining is a computer process of recording and verifying information on the digital record known as the blockchain.

Mining usually also involves computers working very hard at solving a math problem. The first computer to solve this problem would discover a new block and could record information on the blockchain. This earned them a reward in brand new digital money plus fees paid for each transaction.

Invest: Defined in CryptoCurrency

Invest is the process of spending money on something with the expectation that it will increase in value later and can be sold for more money.

JOMO: Defined in CryptoCurrency

JOMO is short for Joy of Missing Out. This is the pleasure of doing what you are doing and not worrying about anything worthwhile you might be missing out on.

Key: Defined in CryptoCurrency

A key is a secret string of letters and numbers that must be used to make hidden, unreadable information readable.

Know Your Customer [KYC]: Defined in CryptoCurrency

Know Your Customer or KYC is defined as a customer identification process required by law for financial organizations.

Criminals who make illegally earned money, try to make their money appear legally earned.

This is known as money-laundering and is often done to hide their money from the government.

KYC requires all customers provide identification and sometimes answer personal questions before they can put their money into banks, investing services and other financial organizations.

Lambo: Defined in CryptoCurrency

Lambo is defined as a short form of “Lamborghini”, the exotic Italian sports car many investors in cryptocurrency want to buy when they are rich.

Ledger: Defined in CryptoCurrency

A ledger is a book or other collection of records in which a person, business, or other group records how much money it receives and spends.

Leverage: Defined in CryptoCurrency

Leverage is increased investment power through margin. Margin is a borrowed asset (stocks or cryptocurrencies), usually from the financial services company you are investing with, that allows you to make larger investments in the hopes of making even more money.

Leverage allows the investor to control much more assets than he actually owns giving him the opportunity to make or lose more money.

Lightning Network: Defined in CryptoCurrency

The Lightning Network is technology that allows near-instant and low fee transactions of cryptocurrencies using bitcoin’s technology.

With cryptocurrencies like bitcoin, it can take an average of 10 minutes for your transaction to be registered in the digital recording known as the blockchain.

The Lightning Network will make those transactions instant.

Limit Order: Defined in CryptoCurrency

A limit order is defined as a request to buy or sell an asset (stock, crypto, etc) at an exact price or better. A limit order’s priority is price.

A limit order is used to purchase or sell an asset at a price that would get you the best price and maximize your profit.

It is best used when your priority is profit rather than speed.

A buy limit order will only be executed if the price meets your limit order or is lower (more affordable).
A sell limit order will only be executed if the price meets your limit order or is higher (more profitable).

The risk with limit orders is that if the asset you want to buy never reaches your targeted price range, your order will not execute.

An additional risk is that even if your target price is reached, the number of freely available assets may be limited and so you may not be able to purchase the entire quantity you ordered.

Sharding: Defined in CryptoCurrency

Sharding is defined as a smaller pieces of a whole. In technology, sharding is a small part of a large computer program that is quicker and more manageable to run.

Shard comes from an Old English word that meant, “to cut” and in present time, a shard is a small piece of a bigger whole. By sharding a massive computer program, you can reduce the computer requirements and make a large program more manageable.

In other words, with sharding, smaller portable computers can run what used to require a larger, more powerful, and expensive computer.

In blockchain technology, the files are often over 100 gigabytes in size and growing.

Using sharding, the huge blockchain program is split up and shared by the network of thousands of computers.

Segregated Witness: Defined in CryptoCurrency

Segregated witness is a technology that moves some information recorded into the bitcoin system known as the blockchain into a separate recording. When someone sends bitcoin to another, the technology must verify that the sender has enough in his account.

Once the technology verifies this, it “signs” the recording (block) as a witness. Each bitcoin recording is limited to 1 megabyte (MB) in size and new recordings are made every 10 minutes. Because the signature takes up a lot of space in the recording, relocating it to a different recording, also known as segregating, will allow man

Security Token Offering [STO]: Defined in CryptoCurrency

A Security Token Offering (STO), is defined as a way for investors to use their money to support a new cryptocurrency project in a way that US Securities and Exchange Commission (SEC) will approve.

Originally, investors would participate in an Initial Coin or Token Offering (ICO/ITO) and in return received some crypto. The hope was that the team would develop something valuable with the money.

The problem is, in the near future, ICOs and ITOs may not comply with American SEC laws. That means some cryptocurrencies who have already had an ICO or ITO may have future regulation and penalties applied.

However, an STO complies with many of the rules and regulations expected to be used in the cryptocurrency space.

A security is an investment that is backed by real-world value. In other words, it represents something actually valuable.

A security could represent a tiny ownership of a company (like a stock).
A security could represent money a government or company borrowed and promises to pay you back (like a bond).
A security could also represent ownership of some other asset, profit, or revenue. An STO uses this model.

To invest in an STO, you must be an accredited investor. As an individual that means you must meet one of these two requirements:

A single individual needs an income of at least $200,000 or a couple with at least $150,000 for the last two years and expect to earn the same or greater this year.
Net worth of over $1,000,000 excluding the value of your primary home.

Secure Hash Algorithm 256 [SHA 256]: Defined in CryptoCurrency

The Secure Hash Algorithm 256 or SHA 256 for short, is defined as one of the most secure ways to protect digital information. A hash is as a computer program that takes information and turns it into letters and numbers of a certain length.

Hashing is used to make storing and finding information quicker because hashes are usually shorter and easier to find. Hashes also make information unreadable and so the original data becomes a secret.

For example, “I like bitcoin” can be hashed and will equal: ad3e58f21b94f32dcadca6b71df4c31a18179f38011551a17a80d0ff065d22c5

If I were to capitalize the “b” in bitcoin, so it says, “I like Bitcoin” the hash will be completely different: d988ca30eaa88c0410ad6e48a5297c0d505dcee572f9884f1a6fa2cbc8dedc86 The number of possible combinations of letters and numbers produced by SHA 256 exceeds the number grains of sand on Eart

Securities and Exchange Commission [SEC]: Defined in CryptoCurrency

The Securities and Exchange Commission or SEC is an American government organization responsible for protecting investors, maintaining fair and organized investment markets.

The SEC requires most organizations with investment opportunities register providing information on their business and customers. It also creates laws and requirements that organizations and investors must follow.

Scammer: Defined in CryptoCurrency

A scammer is defined as someone who tricks people into sending money, sharing private information or transmitting something else of value.

Scammers use illegal or immoral methods to tricks their victims into sending them money (think African prince on Craigslist) or into sharing information (like a fake Coinbase email) or sending other valuables.

Scammers have existed since the beginning of time, but with Internet and the ability to hide your identity, you must raise your awareness and be certain you are in a trustworthy online environment.

Scamcoin: Defined in CryptoCurrency

Scamcoin is a fake cryptocurrency created to make money for the creator while stealing it from those who supported and invested in the coin.

Satoshi: Defined in CryptoCurrency

Satoshi Nakamoto is the founder and creator of bitcoin, the most popular cryptocurrency. The smallest amount of bitcoin (0.00000001) was also named after him, it is called a Satoshi.

This tiny amount of bitcoin is one hundred-millionth of a bitcoin. That’s 7 zeros before the number 1!

Satoshi Nakamoto is an unknown person or group of people who created bitcoin in 2009. Very little is known about Satoshi. In an online profile he claims to be a Japanese man born in 1975, but all of his software and online conversations are in perfect English.

Run: Defined in CryptoCurrency

A run is a continued change of prices, either or up or down, for any type of asset.

You may hear the phrase “bull run” which is an upward price trend or “bear run” which is a downward price trend.

Roadmap: Defined in CryptoCurrency

A roadmap is a plan with estimated completion dates that show what an organization wants to achieve in the long term.

Looking at a roadmap gives you an understanding of what the organization wants to provide to its customers and what it wants to become.

Return on Investment [ROI]: Defined in CryptoCurrency

Return on Investment or ROI is a percentage used to measure how profitable an investment is. ROI measures the profit on an investment in relation to the amount put in.

Resistance & Support Levels: Defined in CryptoCurrency

Resistance and support levels are defined as price points or ranges of an asset (stock, crypto, etc.) that are rarely passed over (resistance) or under (support).

A resistance level is a value that you can expect a cryptocurrency to stay above. A support level is a value that you can expect a cryptocurrency to stay below. Both levels can be found by looking at a price chart.

Both resistance and support levels often happen at or near even numbers like: $10, $50, $1,000, but it can happen at any price.

Resistance and support levels often occur because of supply and demand. A resistance level means that at that range, demand from buyers became weaker and/or the supply from sellers increased. A support level means that demand from buyers grew stronger and/or the supply from sellers weakened.

Remittance: Defined in CryptoCurrency

Remittance is defined as an amount of money sent to pay for something.

There is a lot of money to be made from sending money from one person or organization to another, especially global money transfer. Currently, many people are involved in an international money transfer.

Cryptocurrencies aim to remove those people and organizations like banks from the remittance process reducing costs and transfer tim

Rekt: Defined in CryptoCurrency

Rekt is defined as completely destroyed and ruined. It is a misspelling of “wrecked”.

Rekt is an online gaming phrase which meant someone was severely beaten by an opponent. In cryptocurrency, rekt is typically used when a person loses a lot of money.

Regulation: Defined in CryptoCurrency

Regulation is defined as rules and laws set up by the government to control an activity and enforce it with penalties.

When speaking about regulation around crypto, it usually means users must first provide information, meet the financial requirements and get some form a license before they can participate.

Regulated: Defined in CryptoCurrency

Regulated describes something that is controlled and managed according to rules. Car companies must follow pollution regulations when designing and building cars.

Reddit Crypto Forums: Defined in CryptoCurrency

Reddit defines itself as the front page of the Internet. It is a website made up of millions of users who also submit links and content about anything and discuss it.

Reddit became very popular for the cryptocurrency and blockchain space as a meeting ground for experts and newcomers. You will find the latest articles, cryptocurrencies, technology and often really bad investment advice.

Reddit is a popular tool for people looking to research a new cryptocurrency.

Raiden Network: Defined in CryptoCurrency

The Raiden Network is technology that allows near-instant and low fee transactions of cryptocurrencies using ethereum’s technology.

With cryptocurrencies like ethereum, it can take an average of 15-30 seconds for your transaction to be registered in the digital recording known as the blockchain. The Raiden Network will make those transactions instant.

QR Code: Defined in CryptoCurrency

A QR code is defined as the name for a type of barcode in the shape of a square. These barcodes can be scanned by smartphones and will display information.

QR stands for “Quick Response” and the phrase “QR code” is actually registered with the US government as a trademark by DENSO WAVE INCORPORATED.

These barcodes are a scannable box that provide fast access to things like a website, contact data, etc. For cryptocurrencies, QR codes are a quick way to enter a public address so cryptocurrency can be sent.

Pump and Dump: Defined in CryptoCurrency

A pump and dump is defined as an illegal manipulation of an asset (stock, crypto, etc.) where people increase the price (the pump) so that they can sell it at those high prices for a profit (the dump).

The person creating the pump and dump must first get some of the asset. Then they convince others to buy the asset using exaggerated or fake news causing the price to rise. At that point, they sell what they own. With no one promoting the asset, prices drop and many people are left with worthless assets and wasted money.

“Pump and dump” is often used in the crypto space to mean sharing news in forums and chat groups to encourage people to buy a crypto. As more people begin buying, the price rises and sellers can get rid of their coins to these new buyers at a profit. Because the US Securities and Exchange Commission is not yet regulating the crypto space, pump and dumps are common.

Public-Key

Public-Key:
Defined CryptoCurrency

The Public-Key: Defined CryptoCurrency as a Public-Key used as the basis for the user address.

Each Public-Key corresponds to a specific Private Key.

hich can be used to spend the funds associated to the corresponding Public-Key or address. A Public-Key can be calculated from a Private-Key, but it is not possible to calculate a Private-Key from a Public-Key.

The Trezor Wallet does not show raw Public-Keys to users, as addresses are used to send and receive transactions.

It is possible to view Account Public-Keys (XPUBs). These must never be shared with anyone but yourself as this often-time results in all transaction information being exposed and potential theft of funds.

An Account Public-Keys (XPUBs) is a cryptographic code allowing user(s) to receive cryptocurrencies into that person's account.

The Public-Key coupled with the private key are tools required ensuring cryptographic security of this crypto economics.

XPUB is a master Public-Key used to generate all addresses for an account in a hierarchical deterministic wallet (both already used and unused). As the XPUB key is a Public-Key, it does not allow people to spend funds, but it does make it possible to listen in on all the transactions and balances connected to it.

XPUB and Trezor

As Trezor is an HD wallet, it uses XPUB to generate all the public addresses for a given wallet. To learn how to display account private keys in Trezor Wallet, see Displaying account public key (XPUB).

The XPUB can be used to generate a watch-only wallet in certain third-party wallets and services. For more information.

Public-Key -vs- Public-Key Hash

Hashing is using a hash function on data in order to produce a hash output. Examples of popular hash functions are SHA-256, MD5, RIPEMD-160. Address is an Public-Key hash of Public-Key and the main reason that these are used is probably that they are shorter and more convenient to use.

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Public-Key is defined as a string of letters and numbers that allows cryptocurrency to be received.

Though it’s called a “Public-Key”, it isn’t publicly visible until you’ve shared it or sent money out. And while it can be used to receive money, it isn’t the safe to use.

A safer and more secure way to receive money is to use your public address.

Compare this with a private key which is known only by you and is used to spend your cryptocurrency.

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