Welcome to our second part of the topic “Crypto Baby Talk.” We promised to continue elaborating the common crypto terminologies that you will come across.
The market cap shows the total value of all coins together.
The maximum number of coins that will exist for a token or cryptocurrency. If maximum supply is defined, no more coins can be created.
Nodes are computers in a network that all have a copy of the blockchain transactions and are supporting it by validating transactions.
Total Supply x Current Price
First of all, a new cryptocurrency is released through mining, for example, BTC or LTC. Secondly, mining is the process by which transactions are verified and added to the public ledger (blockchain).
The phrase “To The Moon” is used when the price is going up at an extremely high rate.
Peer-to-Peer (P2P) Network
The term is a cornerstone of the whole blockchain idea. A Peer-to-Peer network doesn’t have a central point of storing information (as servers do) — instead, every participant of a blockchain network can access information and bring changes to the network (but the rest of participants will know about it).
There is no dominant party that controls the network; thus, the opportunity for dishonest behaviour is excluded. Every action on a blockchain is transparent.
Phishing is an old but still used method of stealing vulnerable information. Malefactors try to make a user give up their personal information through a fake website or application, which mimics the original one.
Private Key/Private Address
It’s your password/PIN code to open your wallet. Every cryptocurrency wallet contains one or more private keys which are mathematically related to the wallet. Your private address must be kept secure and not shared with anyone (primarily via emails), so when someone asks for your private key be alert.
Proof-of-work, proof-of-stake, delegated-proof-of-stake, etc. are different systems, sets of rules or methods to reach consensus and validate transactions within a blockchain network.
A prospectus is a document needed for STO (Security Token Offering) to prove that a project is safe and legally regulated.
Public Key/Public Address
The public key is your card number in simple terms; the one you can share to receive cryptocurrency, for example. Interestingly, a public key is calculated from a private key.
A roadmap is a plan that shows what a team wants to achieve in a year or more. It gives you insight into the coming features and when those will be released.
ROI is an abbreviation for ‘Return on Investment.’ This is the ratio on how much you’ll get in return on your investment.
Satoshi Nakamoto is a father! Wait a minute. A mother! No! A group of geniuses… Well, we don’t know yet who Satoshi Nakamoto is, but we know for sure that this personality (-ies) invented bitcoin.
A scam is a criminal scheme performed by dishonest people to get money or personal information or anything of interest. Some ICO projects are scams because they collect funds and exit with the money.
Scam coin (Shitcoin)
Coins are closely related to scams and ICOs: they’re created to get rich quick. Scam coins usually don’t have functioning features, and some do not exist beyond their whitepapers.
An illogical long sentence that you use to retrieve your private key and access the wallet.
A smart contract is a computer program that controls the transfer of cryptocurrency between parties under specific conditions.
A stable coin is a coin with extremely low volatility which tries to peg to fiat money or commodities like gold.
Steemit is a social media platform mostly for blogging that runs entirely on the Steem blockchain. The top-performing writers and active users are rewarded for their input.
Following the scam disaster that ICOs have brought, the cryptocurrency industry had to develop an alternative way of crowdfunding. Meet STO! STO (Security Token Offering) is a process of selling Security Tokens — digital crypto shares built on blockchain technologies — in return for investments.
There are two ways how you store crypto. Cold storage is used for keeping your BTC offline (an advisable precaution when dealing with large amounts of cryptocurrency).
Hot storage is connected to the internet.
A ticker is a unique identifier for a particular cryptocurrency; it usually consists of 3–4 capital letters. Examples are BTC — the ticker for bitcoin and ETH — the ticker for Ethereum.
Tokens are built on top of existing blockchain platforms such as Ethereum. Examples include XCT, EOS, TRON, and OmiseGO. Tokens are often distributed through ICO as a reward for funding the initiative. Don’t mix them with coins as the latter have their blockchain.
The total supply indicates a number of coins in circulation and coins that are not tradable yet (reserved or not yet released). It is different from the maximum supply, in which future coins are included.
So! Total Supply = circulating supply (+ non-tradable supply). Maximum supply = total supply + coins that are to be mined.
TX stands for a transaction — transfer of cryptocurrency. A transaction is the transfer of cryptocurrency.
V for Vitalik Buterin! (joking)
Vitalik Buterin is a programmer who invented smart contracts and co-founded Ethereum network.
A wallet is like your bank account. It is where you can send, receive, and store cryptocurrency. It is identified by your public key and accessed with your private key.
A whale is someone who owns a large amount of a coin. As a result, they can manipulate the price of an altcoin.
A whitepaper is a document informing about a new product or company. It has details on everything: problems that a product will solve, technical specifications, a roadmap, token distribution, team, etc.
Zero Confirmation Transaction
A cryptocurrency transaction that has been delivered to nodes but has not yet been incorporated into a block. Also known as “unconfirmed transactions.”
At xCrypt, we take security extremely seriously, and our crypto-asset exchange is built on the ‘Security First’ principle. We are eager to share our expertise with the broader public for the world to become happy, safe, and wise.