In our previous article, we had mentioned about the various words involved in the cryptocurrency world; starting from A till H. In this article, we continue the list with the rest of the alphabets.
- Halving – Half = 50. Thus, Halving is the process of reducing the block reward by 50%; after the mining of a certain number of blocks. In Bitcoin, the halving happens after every 210,000 blocks.
- Hash – It is a digitalised fingerprint of a particular fixed size that is produced by a hashing algorithm; through processing data of any size including numbers, alphabets or media files.
- Hash Rate – Hash Rate/Hash Power is the measuring unit of the power; Bitcoin network is consuming to be continuously functional.
- Hard Fork – It is a software update or an update on the blockchain protocol that is not backward compatible.
- Hardware Wallet – It basically represents any hardware device; on which you are able to store the public as well as private keys of the bitcoin.
- HD Wallet – The Hierarchical Deterministic (HD) key creation and transfer protocol (BIP32); which allows creating child keys from parent keys in a hierarchy. Wallets using the HD protocol are called HD wallets.
- HODL – A type of passive investment strategy; where you hold an investment for a long period of time, regardless of market volatility. The term was made famous by a typo made in a bitcoin forum. Also referred to as ‘buy and hold’ or ‘hold on for dear life’.
- ICO – It is an abbreviation for Initial Coin Offering. An ICO is an unregulated means by which funds are raised for a new cryptocurrency venture.
- Limit Order (Limit Buy/Limit Sell) – It represents the Buy/Sell orders placed by traders; to buy or sell a crypto-currency when the price meets their target amount.
- Market capitalization (market cap) – The market value of a company; market or sector at a point in time commonly used to rank relative size.
- Mining – A process where transactions are verified and added to a blockchain. It is also the process where new bitcoins or certain altcoins (cryptocurrency) are created. In theory, anyone with the necessary hardware and access to the internet can be a miner and earn income.
More Insight –
- P2P – It is an abbreviation for Peer-to-Peer or Person-to-Person.
- Private Key – Private keys represent secret numeric or alphanumeric passwords; which is used in order to be able to spend your bitcoins to another address.
- Proof of Work – (PoW). It is an algorithm; which rewards the person who solves the computational problem first. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. It prevents spam and cyber-attacks.
- Proof of Stake – (PoS). It is an algorithm that rewards participants that solves difficult cryptographic puzzles to achieve distributed consensus. Unlike proof of work or PoW; a person can validate transactions and create new blocks based on their individual wealth (i.e. stake); such as the total number of coins owned. It has comparatively lesser energy consumption.
- Public Key – Public keys are also secret numeric or alphanumeric passwords; which are obtained from private keys and it is used in order to receive bitcoins publicly.
- Pump and dump scheme – A scheme; in which the development team (or short-term traders) hypes up a project without fundamental basis; in order to pump up the price of the tokens temporarily; and then sells their holdings immediately after launch to earn a profit.
Basically, here massive purchasing and selling takes place where just one benefits.
- Recovery Phrase / Seed Keyword – These are the phrases needed to recover your data of your wallet. They include random 12, 18, 24 words; which are used in order to obtain pairs of private as well as public keys.
- Satoshi – Each BTC is divisible up to 1/10^8 part. Satoshi is known as the smallest unit of a Bitcoin. It is named after its creator who is Satoshi Nakamoto. 1 Satoshi = 0.00000001 BTC.
- Satoshi Nakamoto – This is the name given to the creator or group of creators of the bitcoin. They are as of yet anonymous.
- Soft Fork – It is a software update or an update on the blockchain protocol that is backward compatible.
- Smart contracts – An automated mechanism involving two or more parties; where digital assets are put in and redistributed at a later date based on some pre-set formula and triggering event.
- To the Moon – This phrase basically refers to the way in which the prices move; towards great heights or astronomical heights.
- Token – Crypto tokens enable the creation of open, decentralized networks, and provides a way to incentivize participants in the network
- Transaction ID – It is an alphanumeric string which lets you see the bitcoin’s transfer details publicly on that blockchain.
- Transaction Fee – It is the incentives that the miners get for the bitcoin transaction that was done. It is usually a very small amount that the user pays the miner.
- Wallet – A store of digital assets such as a cryptocurrency, analogous to a digital bank account. They can be hot wallets (online) or cold wallets (offline).
- Whale – It represents a person/entity; who not only holds a certain amount of cryptocurrency; but tends to manipulate the market as well.
- Whitepaper – An informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative. Whitepapers are often provided before the launch of a new coin or token.