When you read about Crypto Currency you may come across a variety of different terms which seem very strange. This is a technology with almost a language all of its own. You may think you know what these terms mean but do you really?
This short guide will help you to understand some of the most common terms. It will help you make sense of a lot more of the discussions on the topic and should give you some insight into where these terms emerged from.
Here we go!
This is a term you will come across very frequently but what does it mean? A block chain is a list of records called blocks which is constantly growing. These records are generally encrypted. By design it is an open record that can record transactions between two people in an open verifiable way.
A block chain is typically managed by a peer to peer network. One such peer to peer network is called ‘Bitcoin’. These peer to peer networks are used to record transactions between people which have led to them being called currencies or crypto currencies because they are encrypted.
Blockchain is not another crypto it is the protocol underpinning it.
This is a mathematical process by which new tokens of a crypto currency is produced. It is usually decentralised meaning anyone with the right processing power and technical knowledge can do it. It is possible to mine new coins up until their natural limit, stipulated by their creator.
As a coin becomes more mature it becomes more difficult to do technically, it takes longer and becomes far more expensive.
A generally accepted term for a coin that is not Bitcoin, but an alternative or alt coin like Monero or IrishCoin for example.
This is a corruption of the word hold. This term is generally used online by supporters of a particular crypto urging other holders to ignore any volatility in the price of the coin and hold on to it.
It appears to have arisen as a result of an error in a popular meme that was widely circulated on the internet.
This refers to the car manufacturer Lamborghini. It is used by those who are in a profitable position as a result of their crypto investing activity. It is a suggestion that they have made a lot of money or that they feel that the structure of the current holdings means they will make a lot of money in the future.
This stands for fear, uncertainty and doubt. It is usually used where someone feels that someone else is spreading negative rumors in order to generate price falls.
To the Moon
This is used when it is felt that a coins price will rise very fast, ultimately becoming very valuable.
ICO or initial coin offering is a process whereby a promoter of a new coin offers it for sale on the market for the first time. This can be done through a wide variety of places but usually done on the internet with people using credit cards to complete the purchase.
Velvet forks are an ideal way to upgrade Blockchains without requiring permission from each individual party. As opposed to creating a completely new Cryptocurrency, velvet forks allow miners to opt out of a code upgrade while remaining active on a particular network.
The terms above are the most common but there are probably more. The Crypto space is constantly evolving with a language of its own that is always changing.
Just another one of the interesting aspects of this field.
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