Basics
It is not uncommon to feel overwhelmed and perplexed with the crypto jargon and lingos that are increasingly becoming part of mainstream media and every investor’s table talk. But when you hear the words “Cold Wallet” or “Altcoin”, you can’t resist but ask them to speak plainly.
To save you trouble and embarrassment, we have brought a blockchain jargon playbook that will strengthen your basics and make you aware of the vocabulary to flex during the conversations on crypto.
List Of Crypto Jargon
Below, we have curated a list of crypto jargon arranged alphabetically:
“A”
Altcoin: It is the crypto currency jargon used for cryptos other than Bitcoin.
ASIC: This is a blockchain jargon that is used as an acronym for application-specific integrated circuits. It is one of the most powerful computers used for mining cryptocurrency.
“B”
Buy the dip: Another confusing crypto jargon that you might have heard. This lingo simply means buying assets when their prices are at an all-time low.
Blockchain: It is the term used for underlying that is used by all cryptocurrencies.
“C”
Cold wallet: It is crypto currency jargon that is used by crypto enthusiasts when using physical storage devices like flash drives, hard drives, and more for offline cryptocurrencies.
Cryptography: This blockchain jargon is used to protect information by scrambling it into indecipherable codes.
“D”
dApp: This is a crypto Jargon that stands for decentralised application. These applications allow you to share with users to send and receive data directly without an intermediary.
DAO: Decentralised autonomous organisation, abbreviated as DAO. It refers to a group of individuals striving towards the same goal and following the rules written into the project’s self-executing computer code.
Double spend: When you spend $5 in cash on a sandwich, you no longer have that $5 to spend again. Similarly, centralised authorities like banks ensure that money can only be spent once in digital transactions. However, a single coin could be duplicated and spent multiple times with decentralised financial tokens such as cryptocurrencies. Blockchain technology helps prevent this issue of double-spending.
“E”
Ether (ETH): This Crypto Jargon is the acronym for the native cryptocurrency token of the Ethereum platform.
Encryption: It is the blockchain jargon used for the process of converting digital data into a form that prevents unauthorised access.
“F”
Fork: This crypto jargon represents a change in the blockchain protocol that can result in two separate chains, namely Soft and Hard fork. A ‘hard fork’ results in the creation of an entirely new chain, whereas a ‘soft fork‘ maintains compatibility with the existing chain.
“G”
Gas Fees: Transaction fees are paid to miners to validate transactions on the Ethereum blockchain. The requirement for gas is directly related to the congestion and complexity of the network.
Genesis Block: The first block in a blockchain, the Genesis block is the foundational block that starts the blockchain’s chain of transactions.
“H”
HODL: A misspelling of “hold” that has become a rallying cry in the crypto community. It refers to the strategy of holding onto cryptocurrency for long-term gains rather than selling quickly.
Hash Rate: This crypto Jargon refers to a measure of computational power used in mining cryptocurrencies. A higher hash rate indicates more power to solve cryptographic puzzles and mine new blocks.
“I”
ICO (Initial Coin Offering): This is blockchain jargon for a fundraising method in which a cryptocurrency project sells tokens to investors in exchange for capital.
IRD (Initial Reward Distribution): The process in which the first tokens of a cryptocurrency are distributed, often to early investors, developers, or as part of a network incentive.
“J”
Jager: Another perplexing term that may make you overwhelmed is jager. This blockchain jargon represents the smallest denomination of Binance Coin.
“K”
Key: In crypto jargon, a cryptographic key is information used to access a cryptocurrency wallet. There are public keys (for receiving) and private keys (for spending).
“L”
Ledger: A record-keeping system used to store transaction history. In cryptocurrency, this refers to the blockchain ledger, where all transactions are permanently recorded.
Liquidity: In blockchain jargon, liquidity refers to the ease with which a cryptocurrency can be bought or sold in the market without affecting its price. High liquidity typically results in lower price volatility.
“M”
Mining: The process of validating transactions and adding them to the blockchain by solving complex mathematical puzzles, which are rewarded in the form of cryptocurrency.
Minting: It is the crypto jargon that is used for the creation of new cryptocurrency coins or tokens. It’s often associated with Proof of Stake (PoS) systems, where new coins are minted based on ownership of existing coins.
“N”
Node: A computer connected to the blockchain network that assists in validating and relaying transactions. Full nodes maintain a complete copy of the blockchain.
Non-Fungible Token (NFT): A type of digital asset that represents ownership of unique items, often used in digital art, collectables, and gaming.
“O”
On-chain: This crypto jargon is used for the transactions or activities that take place directly on the blockchain and are recorded permanently.
Off-chain: Transactions or activities that occur outside the blockchain but can be referenced or verified by the blockchain, often for efficiency or scalability purposes.
“P”
Proof of Stake (PoS): PoS is a crypto currency Jargon, which means an algorithm where participants “stake” their cryptocurrency to help validate transactions. Stakers are rewarded with more coins for their contributions.
“Q”
Quorum: It is a crypto jargon which refers to a minimum number of nodes or participants needed to validate transactions or reach consensus in a blockchain network.
“R”
Rug Pull: A type of scam where a cryptocurrency project’s developers abandon the project and steal the invested funds. It’s common in low-reputation or new tokens.
Rebase: The process of altering the supply of a cryptocurrency in circulation, typically used in algorithmic stablecoins to maintain price stability.
We have reached the end of the list of crypto jargon that will help build a strong foundation on the cryptocurrency concept. Moreover, we will bring one more list of blockchain jargon from the S-Z alphabet. Follow our social media accounts to avoid missing our next blog on crypto currency jargon.
