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Published On: Fri, May 14th, 2021

Decoding Crypto: De-Jargonizing Important Terms Associated with Cryptocurrency

The cryptocurrency world often baffles newcomers with its set of jargons. You may come across terms like public keys, fork, ATH, and more and have no clue about them. But there is nothing to feel embarrassed about in this situation.

photo/ The World Spectrum

Instead of panicking, read our glossary of the standard terms associated with the world of cryptocurrency.

 

  • Address

 

Every cryptocurrency wallet has a unique address. It is a combination of letters and numbers that we can use to send or receive cryptocurrencies.

 

  • Altcoin

 

Bitcoin was the first cryptocurrency introduced to the world. People were so in awe of it that they named every crypto that came after that as ‘altcoins’ or ‘alternative coins.’ Altcoin is a blend word for the market to differentiate other cryptocurrencies from Bitcoin.

 

  • Crypto exchange

 

A crypto exchange is a digital marketplace that allows traders to come together and sell or buy different cryptocurrencies.

 

  • ASIC

 

ASIC or application-specific integrated circuit is a device utilized only for mining cryptocurrencies.

 

  • ATH

 

ATH or all-time high helps in tracking the market valuation of crypto. It refers to the highest point in monetary terms than it has ever reached.

 

  • ATL

 

Like ATH, ATL too helps in tracking crypto’s monetary valuation. ATL or all-time low refers to the lowest market valuation that a cryptocurrency has ever reached.

 

  • Block

 

Every transaction in the blockchain world utilizes blocks. These are packages containing permanently recorded transaction data. Every new information is stored in a block, and all of it becomes a part of the database.

 

  • Blockchain

 

Blockchain is a distributed ledger system containing data in blocks and is the base of the crypto world. A blockchain lists all the transactions ever made for a particular currency and stores the information on a public database.

 

  • Cryptography

 

Cryptography refers to encoding data while transacting to secure and decode it once it reaches the source. It keeps prying eyes away and prevents them from stealing sensitive data.

 

  • Crypto wallets

 

Cryptocurrency, like any other currency, requires it to be stored somewhere safe and secure. A crypto wallet is a software program where individuals park their currency balance. They can also receive and send it from the same address. A single crypto wallet can hold multiple cryptocurrencies.

 

  • Fork

 

Every time a new version of the blockchain is created, we term it as a fork. These versions run simultaneously. For example – Bitcoin and BCH (Bitcoin Cash)  

 

  • Hard fork

 

A hard fork refers to a permanent change of protocols of rules while creating a new blockchain. It means that you can no longer use the old mined blocks containing the old rules for the new blockchain.

 

  • Hash

 

The process of performing a hash function is known as a hash. Here, the user performs it on input data with an arbitrary size. The output will be a random string that you cannot recover without a cipher.

 

  • Market cap

 

Also known as market capitalization, a market cap refers to the total capitalization of a cryptocurrency’s price. It helps the experts in ranking various cryptos conveniently.

 

  • Mining

 

The process of creating new crypto units is called mining. Here, new blocks are added to the blockchain allowing the creation of new tokens, such as that of Ethereum or Bitcoin.

 

  • Mining rig

 

A mining rig is a high-end hardware used for unearthing new units of a cryptocurrency. It can either be dedicated or a system with spare capacity.

 

  • PoS

 

PoS or Proof-of-Stake is a consensus algorithm allowing users to figure out the person validating the next block. Here, the token holders secure the existing tokens to secure rewards.

 

  • PoW

 

PoW or Proof of Work is a blockchain consensus mechanism that involves solving a series of rigorous puzzles for validating transactions and creating new blocks.

 

  • Private key

 

The encryption process generates an asymmetric-key known as a private key. It is a piece of code combined with a public key that helps in decrypting critical information.

 

  • Public key

 

A public key is a string in an alphanumeric form that refers to your unique crypto wallet address.

To sum up, industry terminologies can prove to be beneficial for investors in the long run. If you’re planning on getting involved with cryptocurrency you may need to familiarise yourself with the crypto lingo. 

However, the good news is that platforms like CoinSwitch Kuber provide BTC to INR converters so as to simplify crypto investing and in the process translate the technical jargon into layman language. So, if you don’t want to memorise the above list, just sign up with one of those simple crypto apps. 

Disclaimer: Anything expressed here directly or indirectly is not investment advice. We ask you to do your own research before investing.

Author: Emlie Degn

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