Common Cryptocurrency Related Terms - Crypto Shear - Bitcoin Cryptocurrency News

Common Cryptocurrency Related Terms

Are you new to Bitcoin and cryptocurrencies or want a quick refresher of terms you may not know (yet)? Check out our quick and dirty list of must-know Bitcoin terms:

  • 51% Attack - An attack on a blockchain where a group of attackers gather more than 50% of a network's hashrate. This allows attackers to prevent new transactions from gaining confirmations and potentially double-spend coins. They would not be able to create new coins or alter old blocks.
  • Altcoin - Any form of cryptocurrency that is not Bitcoin.
  • ASIC - Stands for "application-specific integrated circuit". These are customized for a specific use rather than a general use. An example of one is a Bitcoin mining ASIC used to mine Bitcoins more effectively than a normal computer.
  • Bitcoin - A form of digital currency created in 2009 that is created and distributed on a peer-to-peer network. It is decentralized and no single entity controls the creation or flow or it.
  • Blockchain - The digital file distributed to everyone participating in a single cryptocurrency network. This is akin to a general ledger and keeps track of every transaction that has ever occurred on the network.
  • Block Height - This is the number of blocks connected together in the blockchain
  • Confirmation - A transaction has been verified by the network through the process known as mining. Once a transaction is confirmed, it cannot be reversed or double spent.
  • Cryptocurrency - A digital currency that uses blockchain technology to allow individuals to transact with one another even if they do not trust one another. 
  • Cryptography - The branch of mathematics that deals with ciphers and encryption.
  • Difficulty - This is related to mining and how hard it is to verify blocks on the network.
  • Double Spend - Trying to send a transaction to two different recipients at the same time.
  • DYOR - Do your own research
  • Fiat - Government issued money.
  • FOMO - Fear of Missing Out
  • FUD - Fear, Uncertainty, Doubt
  • Halving - Some cryptocurrencies, specifically Bitcoin, decrease the number of bitcoins generated per block by 50% every four years. This is called the halving.
  • Hash - A has is a mathematical function that takes a file and produces a code that can be used to identify that same file. A hash is unique to a certain file, and cannot be reversed. Hashing is used to prove a set of data has not be modified.
  • Hashrate - The total computing power of the miners on a specific blockchain
  • HODL - A misspelling of the world "Hold", some people think it stands for "Hold on for Dear Life"
  • Lambo - A Lamborghini, symbolizing something traders are interested in buying.
  • Mining - Producing units of cryptocurrency, generally through using complex computations through computer hardware.
  • Peer-to-Peer - Cutting out the middleman (banks) and dealing directly with the intended parties.
  • Private Key - A string of data that shows you have access to the cryptocurrency in a specific wallet. This is the equivalent of a password.
  • Satoshi - Named after the creator of Bitcoin, also indicates the smallest unit of a single bitcoin.
  • Whale - An individual or entity that owns a huge amount of any given coiin/

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