Please help us create relevant Cryptocurrency language and their meanings.
THE DOGE LORD - Peter himself
TERMINOLOGY AND ACRONYMS
ATH- All Time high - the coin has reached its all time highest value
FOMO- Fear of Missing Out
FUD - Fear, uncertainty and doubt
HODL - hold on for dear life!
ICO - Initial Coin Offering
Little Doge - Kids
A bitcoin address is essentially the same thing as your home address. It’s the location from which you would receive, send or hold your currency. These addresses generally manifest in a long string of alphanumeric characters and will look something like:
A wallet address is the public portion of the two encrypted keys necessary for a holder to accept or verify a transaction.
ASIC mining is a crafty method of mining various coins at a much faster rate than any normal desktop or laptop might allow. Essentially what an ASIC, or Application Specific Integrated Circuit is, is a chip specifically created to execute one task. Enter ASIC mining. An example of one such model is an ASIC miner created to ONLY process SHA-256, which is the problem offered by the Bitcoin blockchain to mine new coins. There are also ASIC’s for scrypt which specifically solves the mathematical code in relation to altcoins such as Litecoin. Though, in recent years there has been a good amount of dialogue surrounding the longevity of mining this way and we’ve even seen coins making it so that it’s impossible to mine with an ASIC.
Blocks are essentially pages in a ledger or record keeping book. Blocks are the files where unalterable data related to the network is permanently stored. Forever. Like eternity.
Block height is the number of blocks preceding the genesis block (first block) on the chain. A genesis block will always have a height of zero because nothing precedes it. It’s a metric used to create a bearing on time in the programming world as well as a few other functions such as maintaining counter-party and betting in the crypto world. Considering that a new Bitcoin block is made every 10 minutes, you can work out certain time related pieces of information if you have the total length of the chain.
Block reward is the reward allotted for hashing, or solving the mathematical equation related to a block. The reward for mining a Bitcoin block is 25 bitcoins per block mined, which will halve every 210,000 blocks!
The majority of investors in digital currency use manual methods when they want to buy or sell their cryptocurrency of choice. However, there are now programs available for investors that have been created to make the process more precise and automatic. They download these programs, which monitor alternative currency exchanges and markets for them. These “bots” will carry out transactions automatically according to the price criteria the investor has set. There are those who argue bot trading is a little too reactionary, and that sales and purchases will be made on a “knee-jerk” level, rather than waiting for the market to stabilize. On the flip side of that coin, bot trading advocates insist the method will work in their favor, since they can’t personally monitor the markets 24/7.
- Please use the pub search engine to view our members opinions regarding bot trading.
Distributed & Central Ledger
A distributed ledger is an agreement of shared, replicable and synchronized data, in this case spread across multiple networks, across many CPU’s. A central ledger is the opposite in that all of the data, while being synchronized and replicable is controlled by a singular network or individual.
Fill or Kill
This is a simple type of buy order made with a cryptocurrency exchange. The investor dictates how much currency they want, and at what price, and establishes a cutoff date for the order. The exchange will then do their best to fill the order according to those criteria. If the exchange hasn’t found an appropriate match for the order by the cutoff date, the order is canceled and left unfilled. In other words, fill this order according to these guidelines and within this time frame. If you can’t, kill it.
A fork is the permanent divergence of an alternative operating version of the current blockchain. Forks come into existence when a 51% attack occurs, a bug in the program, or more commonly a new set of consensus rules come into existence. These happen when a development team creates and inserts notably substantial changes into the system. The successful fork is decided by the height of their blocks.
On occasion, gaps will appear in trend lines on market value graphs. These gaps indicate a visible drop or rise in a commodity’s value that hasn’t necessarily happened due to trading. These can be the result of closed markets, statistical adjustments by analysts, or by strong news about the commodity. There are three types of gaps:
- Breakaway Gap. These appear at the beginning of a strong upward or downward trend, and represent very high-volume trading.
- Runaway Gap. These occur during an upward or downward trend, and represent a quick momentary intensification of that trend.
- Exhaustion Gap. This occurs toward the end of an upward or downward trend, and tends to indicate a small trend in the opposite direction.
Halving is the reduction of minable reward every so many blocks. For Bitcoin the reward is halved after the first 210,000 blocks are mined and then every 210,000 thereafter.
This is a random and complex mathematical formula used in the verification of blocks of transaction data in the process known as mining. Once a miner calculates the proper hash in a block, they’re rewarded with coins and a percentage of the transaction fees embedded in that block. Achieving the right hash in a given block can take several tries and calculation adjustments—and some blocks, even though properly processed, may not “pay out.” The difficulty of calculating the hash in a block is set fairly high, so the rewards aren’t distributed at too fast a rate; after all, mining also helps create new coins, and the mathematics are set so this doesn’t happen too quickly—that could destabilize the currency.
- For more information, please go to our mining section
With traditional currency, the issuer would be the US Treasury for American bills and coins, for example. Technically, digital currency coins aren’t issued, they’re created by the mining process. There’s no central bank, no government deciding when new cryptocurrency comes into being; it’s “minted” when investors mine the data blocks. There’s really no one owner of Bitcoin, and no corporate board making the decisions; all of its investors have a vested interest and a share in it. As such, when we use the term “issuer,” we mean the investors in a type of cryptocurrency; we use it conceptually and not literally.
In many cases, the process of mining can be a resource hog; it can eat up a lot of processing time and space on computers. Since most individual miners don’t have the computing power or the hardware to dedicate one or more machines strictly to mining, they’ll join with other miners to distribute the processing burden. When more than one miner is involved in the processing of data blocks, this is called a mining pool. Once the mining is completed and verified, the pool’s members divide the coin and transaction fee rewards evenly.
As cryptocurrency miners process blocks of transaction data, they generate new coins as a result. Cryptocurrency is a young industry, and its issuers want enough coins to go around to satisfy new investors as they join. These new coins are mathematically designed to be turned out at a stable rate, so the value of the currency will remain relatively stable, too (there will be fluctuations, as in any other commodity market, but not as wild as they would be if the commodity was extremely limited in availability). Over time, however, the mathematics of coin creation are also designed to end, to avoid over-saturation of the market and currency devaluation. In plain English, that means most cryptocurrencies will eventually stop being created when they reach a predetermined amount known as a mintage cap. Once the last coin’s created, there won’t be any more. In most cases, the cap won’t be reached for a number of years—that’s by design, so new investors will be allowed to join up for some time to come. The majority of cryptocurrencies have mintage caps set; however, a few—like Peercoin—don’t.
Multisig, or multisignature refers to having more than one signature to approve a transaction. This form of security is beneficial for a company receiving money into their BTC wallet. If a company wants to keep it so that one employee doesn’t have sole access to a transaction, multisig allows for a transaction to be verified by two separate employees before it’s complete.
A node is essentially a computer connected to the Bitcoin network. A node supports the network through validation and relaying of transactions while receiving a copy of the full blockchain itself.
“Noob” is an abbreviation for the term “new blood,” and is also sometimes expressed as “newb” or “newbie.” It applies to anyone who is a newcomer to a given community—in this case, investing in digital currency. Most alternative currency investors are good folks, and are willing to lend a helping hand and advice to those who are new to the game.
Off Line Storage
This concept relates to how your cryptocurrency is stored. If your currency is online—on an active drive on a computer that’s turned on, or accessible through cloud computing-- that means it’s also accessible by other computer users. Sometimes that access takes place without your knowledge. This can lead to hacking and theft, since cryptocurrency—by design—isn’t connected directly to any one person. As such, it’s important to keep your unique currency information offline as often as possible; it’s best to do so unless the currency is directly in use for a transaction. Two of the best ways to keep your investment info offline is to store it on an external drive that can be disconnected from your computer when it’s not needed, or to print it out and store it in a paper wallet. If you decide to take advantage of a wallet service from a cryptocurrency exchange, one of the first questions you should ask them should be about offline information storage, since digital currency theft is usually untraceable and irreversible.
Proof of Stake
Proof of stake has been considered the greener alternative to PoW. Where PoW requires the prover to perform a certain amount of computational work, a proof of stake system requires the prover to show ownership of a certain amount of money, or stake.
In cryptography, a public key is a cryptographic key that can be utilized by any party to encrypt a message. Another party can then receive the message and using a key that is only known to that individual or group, decode the message.
Proof of work was a concept originally designed to sieve spam emails and prevent DDOS attacks. A Proof of Work is essentially a datum that is very costly to produce in terms of time and resources, but can be very simply verified by another party. The proof of work for Bitcoin is referred to as a “nonce,” or number used only once. This has been considered an energy intensive alternative to proof of stake as the computers unfortunately have to be on and running, which also drives the market towards centralization of hashing power… which is what the blockchain aims to defeat!
This is a mobile application feature that allows the instantaneous transfer of information from one smartphone to another. If two mobile device users want to exchange data, and both have this feature installed and activated on their phones, they can make the transfer simply by having their devices in close proximity to each other. These are also sometimes called “touch transfers.”
Many digital currency applications include this as a feature, so currency trades can be made from one mobile wallet to another instantly.
This is a unique encrypted code issued to an investor. When they want to make a transaction with their cryptocurrency, they give their public key out—many cryptocurrency exchanges have a directory of these for their investors—so the transfer can be made. The public key is a way to positively identify someone making a transaction, even though their actual name or personal information is not embedded in the key itself. Contrast this with a private key—which is not publicly known, and should be closely guarded—which is used to accept and validate a transaction.
Currently, this is the smallest possible fraction of cryptocurrency available for transactions. It refers to 0.00000001 Bitcoin, and is named after Satoshi Nakamoto, the enigmatic creator of the first publicly-available digital currency. Nakamoto wrote the white paper in 2008 that evolved into the creation of Bitcoin—and until March 2014, no one had been able to pin down the true identity of the person or persons operating under the pseudonym. An expose in Newsweek Magazine at that time revealed that Satoshi Nakamoto was, indeed, the creator of Bitcoin’s real name.
A signature is the mathematical operation that lets someone prove their sole ownership over their wallet, coin, data or on. An example is how a Bitcoin wallet may have a public address, but only a private key can verify with the whole network that a signature matches and a transaction is valid. These are only known to the owner and are basically mathematically impossible to uncover.
A two way smart contract is an unalterable agreement stored on the blockchain that has specific logic operations akin to a real world contract. Once signed, it can never be altered. A smart contract can be used to define certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
When a block of cryptocurrency data has been successfully processed by a miner or mining pool, that block of data is considered stale. Experienced miners know to skip stale blocks, for it would be a waste of their time to try to mine them again.
Most trades and purchase made with cryptocurrency include a small transaction fee. This fee is fed into the data block that contains the transaction’s information, and all or part of the transaction fee will be rewarded to the miner or mining pool that successfully processes that block.
Just like a bill-and-coin wallet, this is a place to keep your digital currency. There are four types of cryptocurrency wallets:
1.Software Wallet. These are programs you load onto your desktop or laptop computer.
2.Mobile Wallet: These come in the form of applications you install on your smartphone or tablet computer. They usually include QR code scanning and phone-to-phone transfers for on-the-go transactions.
3.Web-Wallet: These are usually gotten through exchanges, and stored on third-party servers via cloud computing. They can be accessed by any computing device.
4.Paper Wallet: Your digital currency can be printed out—usually in the form of QR codes—and these hard-copy cryptocurrency “bills” can be kept in a physical wallet just like traditional money.
5.Hardware Wallet: Examples: Trezor, Ledger, etc have Some major advantages over standard software wallets:
- private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext
- immune to computer viruses that steal from software wallets
- can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
- much of the time, the software is open source, allowing a user to validate the entire operation of the device
A 51% attack is a situation where more than half of the computing power on a network is operated by a single individual or concentrated group, which gives them complete and total control over a network. Things that an entity with 51% of the computing power can do include, but are not limited to:
Halting all mining.
Halting and manipulating all interpersonal transactions.
Use singular coins over and over.