Bezel´s Crypto Glossary

February 14, 2022

Demystifying some terms used in the crypto world.

ADDRESS: A place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers.

AIRDROP: A marketing campaign that distributes a specific cryptocurrency or token to an audience.

ALL-TIME-HIGH: The highest point (in price, in market capitalization) that a cryptocurrency has been in history.

ALL-TIME-LOW: The lowest point (in price, in market capitalization) that a cryptocurrency has been in history.

ALTCOIN: As Bitcoin is the first cryptocurrency that captured the world’s imagination, all other coins were subsequently termed “altcoins,” as in “alternative coins.”

API: API stands for Application Programming Interface. It is a set of routines, protocols, and tools for building software applications.

AUTHENTICATION: Authentication is a process that confirms a user’s identity using passwords, SMS codes, fingerprints, and other forms of ownership proofs before granting access to sensitive and/or personal information.

BEAR: Someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.”

BLOCK: A file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.

BLOCKCHAIN: A distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies.

BULL: A person that is optimistic and confident that market prices will increase, this person is also known to be “bullish” about the market or price.

COIN: A coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency.

CONFIRMATION: In cryptocurrency, a confirmation is a measure of how many blocks have actually passed since a transaction was added to a blockchain.

CROSS-CHAIN: Cross-chain is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value.

CRYPTOCURRENCY: Cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation.

CRYPTOGRAPHY: A field of study and practice to secure information, preventing third parties from reading information to which they are not privy.

DECENTRALIZED: Decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal.

DISTRIBUTED LEDGER: Distributed ledgers are ledgers in which data is stored across a network of decentralized nodes. A distributed ledger does not necessarily involve a cryptocurrency and may be permissioned and private.

EXCHANGE: Businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies.

FUNGIBLE: In cryptocurrency, fungibility is when a coin or token can be replaced by any other identical coin or token.

GENESIS BLOCK: The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.

HALVING: An event in which the total rewards per confirmed block halves.

HASH: A hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data.

IMMUTABLE: A property that defines the inability to be changed, especially over time.

INITIAL COIN OFFERING (ICO): Short for Initial Coin Offering, an ICO is a type of crowdfunding, or crowdsale, using cryptocurrencies as a means of raising capital for early-stage companies.

KNOW YOUR CUSTOMER: Short for Know Your Customer, these are checks that crypto exchanges and trading platforms must complete to verify the identity of their customers.

LEDGER: A record of financial transactions that cannot be changed, only appended with new transactions.

MINING: A process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created.

MINTING: Minting is the process of generating new coins using the proof-of-stake mechanism and adding them to the circulation to be traded.

NON-FUNGIBLE TOKEN: Non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility.

OPEN SOURCE: Open source is a philosophy, with participants believing in the free and open sharing of information in pursuit of the greater common good.

PEER-TO-PEER: The decentralized interactions between parties in a distributed network, partitioning tasks or workloads between peers.

PRIVATE KEY: A piece of code generated in asymmetric-key encryption process, paired with a public key, to be used in decrypting information hashed with the public key.

PROOF-OF-STAKE:  A blockchain consensus mechanism in addition to Proof-of-Work that maintains the integrity of blockchain.

PROOF-OF-WORK:  A blockchain consensus mechanism involving solving of computationally intensive puzzles to validate transactions and create new blocks.

PUBLIC ADDRESS: A public address is the cryptographic hash of a public key, allowing the user to use it as an address to request for payment.

ROADMAP: A roadmap is a high-level visual summary that helps map out the vision as well as the direction of a specific product.

SMART CONTRACT: A smart contract is a computer protocol intended to facilitate, verify or enforce a contract on the blockchain without third parties.

STABLECOIN: A cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency.

TOKEN: A digital unit designed with utility in mind, providing access and use of a larger crypto economic system.

VOLATILITY: A statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index.

WALLET: A place where cryptocurrency users can store, send and receive digital assets.

WHALE: A term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market.

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