Bitcoin, ethereum, altcoin crypto dictionary!
Signature – The mathematical sequence created by concatenating the private and public keys that proves that the bitcoin transaction originated from the given address.
ASIC (Application Specific Integrated Circuit) – These single-task silicon chips solve SHA-256 hash problems, approve transactions and mine new coins.
ASIC miner – Hardware that contains an ASIC chip and is specifically designed for bitcoin mining. These devices connect directly to a computer or network using an ethernet cable or wireless connection.
Transfer – Electronic transfer of funds between two people. Transfer is often used to send and retrieve traditional (fiat) currency from bitcoin-based exchanges.
Mining – Cryptocurrency mining uses our computer’s hardware to perform cryptographic mathematical operations, thereby creating new cryptocurrencies.
Bit – A basic unit of bitcoin. 1 bitcoin is equal to one million bits.
Bitcoin Address – A computer identifier, the only information needed to receive or send cryptocurrency. It is recommended to use each address once for a transaction.
Array (Block) – An array is a piece of persistent data stored on the blockchain, which can be thought of as a page or a directory. Each block contains and approves pending transactions. Through mining, a new block is added to the blockchain every ten minutes on average.
Blockchain – A public and transparent record of all bitcoin transactions in chronological order shared by all participants. The blockchain verifies the authenticity and durability of all Bitcoin transactions and prevents double spending.
BTC – The official abbreviation of the Bitcoin.
Node – A computer running a full client blockchain. It is used to share blocks and transactions across the network using a client-to-client infrastructure.
DDoS – Abbreviation for Distributed Denial of Service. A DDoS attack uses many computers controlled by an attacker to drain the resources of the primary target. In the past, many Bitcoin exchanges have fallen victim to such DDoS attacks.
Double Spend – Double spend is simply spending the same crypto twice. Blockchain and mining were created precisely to confirm all transactions and to prevent such frauds. However, acceptors of zero-confirmation transactions are still at risk of double spending.
Fiat currency – We mean traditional currencies issued by governments. The word fiat is of Latin origin, meaning “Be ready”.
FinCEN – An agency within the United States Department of the Treasury. The Financial Crimes Enforcement Network (FinCEN) has a stated mission: “To protect the financial system against illicit use and money laundering, and to collect, analyze, and disseminate financial intelligence and its strategic use.” FinCEN was the first authority in the United States to regulate bitcoin exchanges and bitcoin trading.
Fork – An irreversible fork in the blockchain of a cryptocurrency. It can also be created by developers, for example when they introduce a new version. In this case, a new blockchain is created that is not compatible with the previous version.
Genesis block – The first block of the block chain.
Hash – A mathematical procedure used to convert data of variable length into shorter data of fixed length and number of pieces.
Hash Ratio – The number of hashes that a miner can generate in a certain time interval (usually seconds).
Cryptography – A branch of mathematics utilized by cryptocurrencies to provide mathematical proof for a high level of security. In the case of Bitcoin, this ensures that unauthorized people cannot spend from another user’s wallet, and that they cannot change the blockchain.
Cryptocurrency – a form of digital currency that is mined by solving mathematical problems based on cryptography.
KYC – abbreviation of the English phrase “Know your customer”. According to KYC guidelines, financial institutions must verify the identity of potential customers to ensure that they are indeed eligible for the service.
Liquidity – The ability of the market to buy and/or sell, with the stipulation that the price calculation remains relatively stable and consistent between transactions.
Altcoin – Any cryptocurrency that is not bitcoin. The Hungarian term “másérme” was first used by Kriptoworld.hu in an article dated May 4, 2019.
mBTC – The exchange number for Bitcoin, mBTC is the thousandth of a Bitcoin. (1 BTC = 1,000 mBTC)) Multisig – Wallet with multiple keys. For certain services, the execution of the transaction requires that the transaction be approved by several parties
NFT (Non-Fungible Token) – A digital asset token that is unique, unprecedented and authenticated. NFTs are recorded using blockchain technology, which enables unique identification and verification of ownership. NFTs can be any digital content, including images, music, videos, games, etc. NFTs are popular in the digital art and collectibles market because they allow owners to prove the uniqueness and authenticated ownership of their content. NFTs differ from “fungible” tokens, which are interchangeable and have no unique identification.
Public key – A public string that contains both letters and numbers. A bitcoin address is also such a public key.
P2P – abbreviation of the English term “peer-to-peer”, refers to direct, decentralized cryptocurrency-related cooperation between two or more parties. There is no need for a bank or other financial institution as a third party.
Paper Bitcoin Wallet – A fairly popular and inexpensive way to securely and non-electronically store bitcoins. This type of wallet consists of a bitcoin address and an associated private key.
PSP – Abbreviation of the English term “Payment Service Provider”, in Hungarian payment service providers. They function as bitcoin agents, primarily managing online transfers.
Private Key – A cryptographic signature that allows a user to transfer cryptocurrencies in their wallet to another wallet.
QR code – Abbreviation of Quick Response, which means “quick response”. It is a two-dimensional image that contains black and white blocks that represent a set of data. These images can be easily scanned even with a smartphone, which is why they are often used to encode addresses.
Satoshi – The smallest subunit of bitcoin currently available (0.00000001 BTC).
Satoshi Nakamoto – Pseudonym used by the original inventor of the Bitcoin protocol.
SEC – U.S. Securities and Exchange Commission, an abbreviation of the American Securities and Exchange Commission, which is an independent government organization of the United States. Its task is to enforce the laws with the participants of the stock exchange and to supervise the securities market.
SEPA – Single European Payment Area stands for Single European Payment Area. SEPA is designed as a European Union payment integration agreement that facilitates transfers in euros between nations.
Wallet – A physical wallet on the network. The wallet contains the private key(s) for the addresses.
Transaction Block – A collection of transactions that are collected into a block, hashed, and then added to the blockchain.
Transaction Fee – The fee added to the transaction, like a tip. This fee is awarded to the miner who successfully hashes the block containing the transaction.
Exchange – A central platform for exchanging different currencies and assets. Bitcoin exchanges are typically used to exchange cryptocurrency for traditional currency.
Volatility – Market volatility reflects the degree of price movement of a traded financial instrument – including bitcoin – over time.
