With the continuous rise of the crypto and blockchain industry which results to an ever-growing vocabulary, it might be difficult for you to catch up with the terms used in the business. Good thing we have created Blocktionary, short for blockchain dictionary, to be your crypto glossary as you immerse yourself more in the industry.
Address – An address is a unique string of alphanumeric characters that is used for sending and receiving cryptocurrency transactions on the network.
All-Time-High (ATH) – The all-time-high (ATH) is the highest price that a cryptocurrency reached in its history.
All-Time-Low (ATL) – The all-time-low (ATL) is the lowest price that a cryptocurrency reached in its history.
Algorithm – An algorithm is a set of mathematical instructions coded into a computer software as a process it should follow to produce a certain outcome.
Altcoin – An altcoin is any coin in the market that is not Bitcoin. The term was derived from “alternative coin.”
Arbitrage – Arbitrage refers to the act of buying cryptocurrency from an exchange with lower rates and selling it at another exchange with higher rates to gain profit. This is usually done internationally to take advantage of the different exchange rates in different countries.
Bear – A bear is synonymous to a pessimist in the crypto industry. It describes someone who always expects market prices to decrease.
Bearish – Bearish is the expectation of a negative movement of a cryptocurrency’s market price.
Bitcoin – Bitcoin is the first and most known form of cryptocurrency. It was created by Satoshi Nakamoto in 2008.
Bitcoin ATM (BTM) – A Bitcoin ATM (BTM) is an automated transaction machine for Bitcoin deposits and withdrawals.
Bits – Bits is a sub-unit of Bitcoin. A single Bitcoin contains 1,000,000 bits.
Block – A block is a permanent record in a blockchain that collects transactions of the cryptocurrency.
Blockchain – A blockchain is the continuously growing digital ledger of a cryptocurrency. It is made up of blocks containing all the transactions ever made in that currency.
Bull – A bull is synonymous to an optimist in the crypto industry. It describes someone who always expects market prices to increase.
Bullish – Bullish is the expectation of a positive movement of a cryptocurrency’s market price.
Circulating Supply – Circulating supply refers to the total number of coins that is available in the market for transactions.
Cloud Mining – Cloud mining refers to the process of mining online without having to manage the hardware. The hardware used for these operations are in remote data centers.
Coin – A coin refers to a cryptocurrency that has its own blockchain and is not dependent on other platforms to operate. It is the opposite of a token.
Cryptocurrency – Cryptocurrency is a form of money that is encrypted and exists digitally. It is not dependent on any bank to operate as it runs on sophisticated mathematical algorithms to create and transfer funds among entities.
Chain Split – A chain split is another term for fork.
Cold Storage – Cold storage is another term for offline storage. These are usually offline computers, paper wallets, and USB sticks, among others.
Cryptojacking – Cryptojacking is the act of using another person’s computer to mine cryptocurrency without his/her consent.
Digital Currency – A digital currency is a form of money that exists digitally.
Dead Cat Bounce – Dead cat bounce refers to the temporary recovery in cryptocurrency prices after a big decrease.
Decryption – Decryption is the process of turning encrypted data back to its unencrypted form.
Digital Commodity – A digital commodity is an intangible asset that has a certain value and can be transferred electronically.
Dolphin – A dolphin is someone who owns a moderate amount of cryptocurrency. The person does not have enough to be a whale but has more than a fish.
Decentralized Application (dApp) – Decentralized application, or dApp, is an application that runs using a blockchain. It is not operated by any central authority and is open source.
Distributed Ledger – A distributed ledger is a ledger with its data stored in a network with multiple decentralized nodes wherein any person in any place can access it simultaneously.
Distributed Ledger Technology (DLT) – Distributed Ledger Technology, or DLT, refers to the technology that works to make distributed ledgers possible.
Exchange – An exchange refers to a platform that lets users exchange their cryptocurrency for other cryptocurrencies or fiat money.
Ethereum – Ethereum is a cryptocurrency that belongs to the top three biggest cryptocurrencies in the world.
Ether – Ether refers to the tokens used in the cryptocurrency Ethereum.
Faucet – A faucet is a website or application that rewards cryptocurrency to its users after completing certain tasks
Fiat – Fiat refers to the currency that is recognized as legal tender by governments. This includes physical cash and bank credit.
Fish – A fish is someone who owns a small amount of cryptocurrency.
Fork – A fork is when developers divide a blockchain into two separate blockchains which usually results to alternate versions of the original chain because of a protocol change.
Full Node – A full node refers to nodes that download the whole blockchain history to observe and enforce the set rules for the blockchain.
Hardware Wallet – A hardware wallet is a type of wallet that stores the encrypted form of a cryptocurrency into a secure physical device. These usually take the form of USB sticks.
HODL – HODL is an acronym that simply means “Hold on for dear life.”
Hard Fork – A hard fork is a kind of fork wherein all previously invalid transactions on a blockchain are made valid while all previously valid transactions are labeled invalid. This also requires miners to upgrade the mining software they use to enforce the fork.
Hash – Hash refers to the act of performing a hash function on a node which converts the input into an encrypted alphanumeric string that finds its place in the blockchain.
Hash Power – Hash power refers to the hash rate of a computer. These can be in kH/s, MH/s, GH/s, TH/s, PH/s, or EH/s depending on the computer’s speed.
Hash Rate – Hash rate is the measurement that shows how many hashes per second a computer is capable of producing.
Hard Cap – Hard cap refers to the maximum amount that an ICO will offer. This is usually set by the creator/s of a cryptocurrency offering ICO.
Hidden Cap – Hidden cap refers to the secret limit to the amount of money that a team sets to receive from its investors during an ICO project.
Initial Coin Offering (ICO) – Initial Coin Offering, or ICO, refers to the selling of an upcoming cryptocurrency’s coins before its date of release. This is a way of a cryptocurrency’s creators to fund their operations.
Initial Token Offering (ITO) – Initial Token Offering, or ITO, refers to the selling of an upcoming platform’s tokens before its date of release. This is a way of a platform’s creators to fund their operations.
Ledger – A ledger is a record of financial transactions in which nothing can be changed. Only new transactions are appended in it.
Lightning Network – The Lightning Network is another peer-to-peer system that operates on top of a blockchain. It is focused on faster cryptocurrency transactions that can work across chains.
Market – Market refers to the continuously growing cryptocurrency industry.
Miner – A miner is someone who contributes to the process of cryptocurrency mining. The person can be a professional miner working in a large-scale setting, or a hobbyist with his/her own mining rig.
Mining – Mining refers to the process wherein blocks are added to a blockchain in which transactions are verified and new coins are created.
Masternode – A masternode is a server that is maintained by its owner. It works like a full node, but it has additional functionalities like clearing transactions and anonymizing transactions, among others.
Mining Rig – A mining rig is the term for a computer used for mining. This can be a computer used solely to mine, or a computer that is mining part-time as it is used for other tasks.
Market Capitalization – Market capitalization is a way of identifying a cryptocurrency’s price as an entirety. This is done by multiplying the cryptocurrency’s total number of coins in supply to its price.
Mining Contract – Mining contract refers to the investment in mining through the internet. This kind of mining uses mining hardware in remote data centers. It is also another term for cloud mining.
Mining Pool – Mining pool refers to a group of miners that combine their mining rigs’ power to get faster results.
Node – A node is any computer connected to the network of a blockchain.
Network – A network refers to all the nodes contributing to the operation of a blockchain at any moment in time.
Offline Storage – Offline storage refers to a device or system not connected to the internet wherein a user can store cryptocurrencies. An example of this is the hardware wallet.
Online Storage – Online storage refers to a device or system connected to the internet wherein a user can store cryptocurrencies. Examples of these are websites that offer cryptocurrency storage.
Orphan – An orphan is a valid block on the blockchain but is not part of the main chain. These occur when two miners create blocks at the same time or an attacker is trying to reverse a transaction.
Off-Ledger Currency – Off-ledger currency refers to the coins accepted in a cryptocurrency even though they were mined outside of the blockchain ledger.
Open-Source Software – Open-source software, more commonly referred to as open source, is a type of software wherein anyone has the rights to change and study it for any purpose. These can also be distributed to anyone without having to face any copyright lawsuits.
Paper Wallet – A paper wallet is a type of wallet that contains a user’s private key or seed phrase.
Peer-to-Peer (P2P) – Peer-to-peer (P2P) refers to two (or more) computers networked with each other without any centralized party involved.
Pre-mine – Pre-mine refers to the coins or tokens of a cryptocurrency that were generated before and during the public launch, rather than being created over time through the mining of other computers. These are usually offered in ICOs and ITOs.
Private Key – A private key is a string of alphanumeric characters used in accessing a person’s wallet. This acts as a digital signature and is considered as the person’s password to his/her wallets.
Public Address – A public address refers to the address that a user can use to send to other people when requesting for payments to his/her wallet.
Public Blockchain – A public blockchain is a blockchain that is accessible by anyone anywhere.
Pre-Sale – A pre-sale is a sale that happens even before an ICO is available to the public.
Proof-of-Stake (POS) – Proof-of-Stake, or POS, refers to the consensus mechanism used by a blockchain to choose the creator of the next block.
Proof-of-Work (POW) – Proof-of-Work, or POW, refers to the consensus mechanism used by a blockchain to create new blocks and validate transactions.
Protocol – Protocol refers to the set of rules that are followed on a network.
QR Code – QR code is a graphical black-and-white pattern that can be read by machines. This is one of the easiest ways to share a wallet address with others.
Satoshi Nakamoto – Satoshi Nakamoto is the pseudonym of the individual or group of individuals that made Bitcoin. Up to this day, Satoshi Nakamoto has not been identified yet.
Software Wallet – A software wallet is a type of wallet that stores cryptocurrency in its encrypted form within software files on a computer.
Storage – Storage is where users can store their cryptocurrencies. There are online storages and offline storages.
Soft Fork – A soft fork is a kind of fork wherein only previously valid transactions on a blockchain are made invalid. This also requires miners to upgrade the mining software they use to enforce the fork.
Satoshi (SATS) – Satoshi, or SATS, is the smallest unit of Bitcoin. 1 SATS is equivalent to 0.00000001 BTC. It is named after the creator of Bitcoin – Satoshi Nakamoto.
Segregated Witness (SegWit) – Segregated Witness, or SegWit, was the proposed change to the blockchain of Bitcoin to segregate the signatures from the block content to improve transaction speeds.
SHA-256 – SHA-256 refers to Bitcoin’s hashing algorithm. Some altcoins are using the same algorithm as well.
Shilling – Shilling refers to the act of overhyping an ICO project or cryptocurrency to attract users.
Smart Contract – A smart contract is a self-running computer protocol that is used to verify and enforce decisions with pre-set rules on a blockchain without the need for a third party.
Soft Cap – Soft cap refers to the lowest amount an ICO needs to raise. There are times that an ICO does not reach its target amount, causing a cryptocurrency to cancel its operations and return all funds to the respective investors.
Ticker – A ticker is the unique abbreviated form of a cryptocurrency used to identify itself.
Token – A token is a cryptocurrency that requires another platform to operate. It is the opposite of a coin.
Transaction (TX) – Transaction, or TX, is the act of exchanging cryptocurrency values on a blockchain.
Volatility – Volatility refers to the statistical measure of the fluctuation of a cryptocurrency’s price.
Volume – Volume refers to the amount of a cryptocurrency that has been traded during a certain span of time. This is used to predict a cryptocurrency’s future price and demand.
Vaporware – Vaporware refers to a cryptocurrency project that is not yet developed because it is still in the works.
Whitelist – Whitelist refers to the list of people interested in taking part in an upcoming ICO.
Whitepaper – Whitepaper refers to the document that explains everything about a cryptocurrency such as its roadmap, technical information, and purpose. It is usually used to convince users to invest on it before an ICO project is started.
Whale – A whale is a person who owns a massive amount of cryptocurrency
Wallet – A wallet refers to where a user can store, send, and receive cryptocurrencies.