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A dictionary to help you navigate through the cryptocurrency universe

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cryptocurrency-dictionary

A dictionary to help you navigate through the cryptocurrency universe

Cryptocurrency

A tradeable token or coin that is on a blockchain.

Blockchain

A type of database in which data can be sequentially linked in blocks.

Block

Refers to a group of records that exists as one entry in the blockchain database. Blocks are interlinked with other blocks to prevent tampering of data.

Smart Contracts

Executable code that exists in some blockchains

Proof of Work

Doing work to prove legitimacy, for automated system this means doing computationally intense work. This is called mining.

Proof of Stake

An alternative to Proof of Work whereby you lock a bunch of your coins to incentivise yourself not to cheat the system

Mining

Running a computer program which tries to find the answer to the next block.

Finality

The affirmation of blocks being fully committed into the blockchain

DeFi

Decentralized Finance, decentralized loan facilities, exchanges and etc, mostly run through the use of smart contracts.

Solidity

The programming language used to write smart contracts on Ethereum, also various other chains.

Vyper

A python like programming language which can also be used on Ethereum.

Oracle

An external data feed for smart contracts, for example getting the USD/EUR exchange rate.

AMM (Automated Market Maker)

Refers to decentralized exchanges which have automatic pricing mechanisms

Dex

Decentralized Exchange, refers to an exchange which doesnt require a central party to run. AKA, Automated Market Makers.

Gas Used

How much gas is used in an Ethereum transaction. Depends on the code which is being executed for the smart contract

Gas Limit

The maximum amount of gas you would want to spend on a transaction. This is incase there is some bug or unforseen situation in the smart contract which will consume too much gas. Metamask tends to set this at 150% of the expected gas usage.

Gas Price

The cost per gas in Wei (10^-9 ETH)

Airdrop

Giving away tokens for free

Yield Farming

Staking tokens in order to earn some other tokens periodically

ERC20

A smart contract token standard for the Ethereum Network.

ERC721

A smart contract Non Fungible Token standard for the Ethereum Network. (Non Fungible means it cannot be divided and sold at the same ratio, examples are Art, Pair of Shoes and etc)

Sharding

A performance improvement mechanism where a blockchain is split into multiple separate networks and deal with transactions separately and eventually sync up.

Stablecoins

A token which is pegged to a currency (usually USD).

Public Key

Your public key address, feel free to share this with other people.

Private Key

Your private key address, NEVER share this with anyone under any circumstance

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