What are the ABC Glossary, must-know terms of blockchain and cryptocurrency?
Sure! Here are some must-know terms and definitions related to blockchain and cryptocurrency:
Blockchain Terms:
- Blockchain: A decentralized, immutable ledger of transactions that is maintained by a network of computers.
- Node: A computer or device that is part of a blockchain network and helps to maintain the network's security and consensus.
- Mining: The process of verifying transactions and adding them to the blockchain.
- Proof of Work (PoW): A consensus mechanism used in some blockchains that requires nodes to perform complex calculations to verify transactions.
- Proof of Stake (PoS): A consensus mechanism used in some blockchains that requires nodes to hold a certain amount of the blockchain's native cryptocurrency to verify transactions.
- Hash: A unique alphanumeric code generated by a mathematical function that is used to identify a specific block in the blockchain.
- Smart contract: A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
Cryptocurrency Terms:
- Cryptocurrency: A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
- Bitcoin: The first and most well-known cryptocurrency, created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto.
- Altcoin: Any cryptocurrency that is not Bitcoin.
- Wallet: A digital wallet that stores your cryptocurrency and allows you to send and receive it.
- Private key: A secret code that is used to access and control your cryptocurrency.
- Public key: A code that is used to receive cryptocurrency transactions.
- ICO: An Initial Coin Offering is a fundraising mechanism in which new projects sell their underlying cryptocurrency tokens in exchange for Bitcoin, Ether or other cryptocurrencies.
- Fork: A change to the software of a blockchain that creates two separate versions of the blockchain with a shared history.
- HODL: A term used in the cryptocurrency community that means to hold onto your cryptocurrency rather than sell it.