Terms & definitions
AFK (Away From Keyboard)
AFK, which stands for “Trading Mode,” is a term commonly employed on social media platforms such as Twitter, where users share their trading activities. In this context, AFK indicates that a user is currently focused on their trading activities and will only engage with messages and notifications while actively monitoring their trading account. Unlike users who are constantly active on their social feeds, AFK traders typically engage in trading for more extended periods, emphasizing their commitment to the financial markets.
An altcoin is essentially a cryptocurrency that serves as an alternative to Bitcoin, which, at one point, stood as the sole digital currency in existence. In its early years, Bitcoin held such a dominant position that it acted as the reference point against which all other contenders were measured. It was essentially “Bitcoin versus the rest,” and anything not Bitcoin was somewhat scornfully referred to as altcoins or, in some cases, even less favorably, as “sh*tcoins,” humorously echoing the original digital currency.
Today, altcoins encompass any cryptocurrency that isn’t Bitcoin. However, this definition was more relevant during the early days of cryptocurrency when Bitcoin commanded the lion’s share of the market’s attention, and competitors numbered in the dozens or even a few hundred. Fast forward to the present, and some experts now suggest there are over 19,000 individual cryptocurrencies in existence. Consequently, it’s becoming less appropriate to simply categorize the crypto landscape as “Bitcoin and everything else.”
A unique identifier that is used to send and receive transactions on a blockchain network.
within a blockchain network is the intricate process orchestrated by a group of distinguished peers, referred to as ‘nodes,’ to adjudicate the authenticity of blockchain transactions. The execution of this consensus is governed by specific methodologies, aptly known as consensus mechanisms. These meticulous sets of regulations serve as the bulwark against potential malevolent activities and cyber threats.
The realm of consensus mechanisms is highly diverse, each tailored to suit the unique requirements of distinct blockchain applications. While they may vary in aspects such as energy consumption, security features, and scalability, their overarching objective remains unchanged: to affirm the veracity and integrity of transaction records.
A method used to achieve agreement on a single data value among distributed processes or systems; blockchain commonly uses mechanisms like Proof of Work or Proof of Stake.
A digital or virtual currency that uses cryptography for security and operates independently of a central bank.
DAO (Decentralized Autonomous Organization)
An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government.
DeFi (Decentralized Finance)
Financial services that are built on blockchain technologies, which operate without central financial intermediaries.
A standard for creating and issuing smart contracts on the Ethereum blockchain.
A decentralized platform that enables the creation of smart contracts and decentralized applications (dApps).
The process of creating a new version of a blockchain that diverges from the original.
A fee paid to conduct a transaction or execute a contract on blockchain networks like Ethereum.
A function that converts an input (or ‘message’) into a fixed-size string of bytes. The output is typically a ‘digest’ that represents the original string.
ICO (Initial Coin Offering)
A type of funding using cryptocurrencies, often used as a means of fundraising for new projects.
IPFS (InterPlanetary File System)
A protocol and peer-to-peer network for storing and sharing data in a distributed file system.
The process by which transactions are verified and added to the blockchain ledger, as well as the means through which new cryptocurrency coins are created.
NFT (Non-Fungible Token)
A type of cryptographic token on a blockchain that represents a unique asset, which can be anything from art to real estate.
A computer connected to the blockchain network that uses a client to perform tasks like validating and relaying transactions.
A service that sends real-world data to a blockchain to be used by smart contracts.
A secret number that allows a user to access their cryptocurrency.
A cryptographic code that allows a user to receive cryptocurrencies into their account.
A self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
A digital asset that is used to represent ownership or a means of exchange on a blockchain.
A place where cryptocurrency users can store and manage their digital assets.