As new users go deeper into the crypto industry, a lot of them will surely encounter a lot of never-heard jargon and phrases that describe that day-to-day crypto processes and transactions. Since we’ve introduced the basic cryptocurrency terminologies on our previous blog post, now the Swipe team lists down the words and phrases that will help readers further along the way to understand the crypto industry.
Address — consists of 26 to 35 alphanumeric characters that serve as an account number or ID where people can receive and send digital currencies. There are different addresses per cryptocurrency, your Bitcoin address and Ethereum address are different from one another.
Block Reward — is the reward (in a form of crypto) earned by people who maintain the blockchain
Bounty — is a reward given to a person in relation to a certain accomplished task or work
Custody — the act of holding assets (cryptocurrency) on behalf of a user or client. Check our blog about custodial and non-custodial wallets here: https://sw.pe/blogcustodialnoncustodial
Decentralized Application — or DApp is a technology or application controlled by a network of computers rather than of a central authority
Decentralized Autonomous Organization — or DAO refers to an organization regulated and controlled by shareholders and not influenced by any central authority
Decentralized Finance — or DeFi is a decentralized monetary system or financial applications built on blockchain
DYOR — or Do Your Own Research. An important piece of advice given to users before investing in a coin or token
ERC-20 — ERC stands for “Ethereum Request for Comments.” ERC-20 is the technical standard used to create a token for all smart contracts on the Ethereum Blockchain. ERC-20 tokens are hosted and created on the Ethereum blockchain
FUD — or Fear, Uncertainty, and Doubt. A strategy where information is disseminated within the community to create a feeling of fear, uncertainty, and doubt on a certain project
FUDster — a person or group who spreads FUD
Fork — is an event wherein a blockchain splits into two separate chains or branches. It can be due to software changes or a result of a change in consensus algorithm
Gas — refers to the transaction fees paid to calculate the costs of transactions in the Ethereum blockchain
Hash — is an output created using an algorithm needed in the blockchain management
Hash ID — is a string of characters given as proof to every verified transaction in the blockchain
Hash Rate — refers to the speed at which a computer can calculate hashes
HODL — at typo for the word “hold” that eventually evolved to Hold On for Dear Life. This is an act of buying cryptocurrencies without the intention of selling it even if the price fluctuates
Moon — an action where the price of a cryptocurrency is experiencing a significant increase in prices
Off-chain — a transaction that is not reported in the blockchain that may be recorded later
Proof of Work — or PoW. A process of consensus algorithm to avoid the possibility of double-spending
Proof of Stake — or PoS. A consensus algorithm wherein the blockchain validators are paid or rewarded base on the amount of cryptocurrency that they stake
Satoshi — smallest unit of Bitcoin. One bitcoin is equivalent to 100 million satoshi
Sharding — a process of dividing a large number of information into several groups. It breaks up a large number of information into smaller segments to improve the performance and be more manageable
Smart Contracts — agreements or contracts that are automatically activated as long as the conditions are met
Stablecoin — a type of cryptocurrency designed to maintain its value which is backed up by reserve asset
Trustless — is an act of not requiring other parties to trust one another to secure smooth transactions as all authorization doesn’t have a central authority and are all consensus.
Volatility — measurement on how the price of an asset can change quickly
Volume — the number of assets traded, bought or sold over a period of time
Wei — smallest denomination of Ether (ETH)
Whale — a person or a group who holds a significant amount of cryptocurrency enough to allow them to impact the market movement
Whitelist — a list of allowed participants or crypto addresses that are proven to be trustworthy
Now that we already defined the cryptocurrency terms and phrases, it will be easier for new and existing users to understand the topics being discussed within the crypto community.
If you need to brush up your knowledge with these terms, don’t forget to visit this page and part 1 of our glossary of terms.
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This blog is also posted at https://sw.pe/blogcryptoterms2
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