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A small electronic device consisting of interconnected transistors, resistors, and other components that are packaged together on a single piece of semiconductor material. Integrated circuits are used in a wide range of electronic devices, including computers, smartphones, and cryptocurrency mining hardware.
The ability of different systems, components, or applications to work together seamlessly. In the context of cryptocurrencies, interoperability refers to the ability of different blockchain networks to interact and exchange data or assets with each other.
A decentralised file system that allows for the storage and retrieval of files in a peer-to-peer network. IPFS is used in some blockchain-based applications to store and serve data.
An IOU is an informal agreement between two parties in which one party promises to pay the other party an amount of money at a later date. In cryptocurrency, IOUs are sometimes used as a form of informal lending between individuals.
A margin trading feature that allows traders to increase their exposure to a particular market without affecting their other trades. This is achieved by isolating the margin for a specific trade, so that the margin used for that trade does not impact the margin available for other trades.
The process of creating and distributing new units of a cryptocurrency. This is typically done through a mining process or through an Initial Coin Offering (ICO).
The smallest unit of the Binance cryptocurrency.
A family of hash functions used in the cryptography of cryptocurrencies, including Ethereum. Keccak is also known as SHA-3, which stands for Secure Hash Algorithm 3.
A set of regulations that require exchanges to perform certain identity verification procedures on their customers.
A term used to describe the desire to purchase a Lamborghini using profits made from cryptocurrency investments.
The time taken for a system or component to respond to a request. In cryptocurrency, latency refers to the time it takes for a transaction to be processed, confirmed, and added to the blockchain.
A fundamental economic principle that states that as the price of a good or service increases, the quantity demanded of that good or service decreases, and vice versa.
A secondary layer in a blockchain network that provides additional functionality, such as scalability and privacy, without altering the underlying blockchain.
A record of transactions, including times, dates, senders, and recipients. In cryptocurrencies, a ledger is a distributed database that maintains a continuously growing list of records, called blocks, which are linked and secured using cryptography.
A collection of code and software components that can be reused to develop new applications.
A method of accounting for cryptocurrency sales that assumes the last asset sold is the first asset acquired.
A second-layer payment protocol for Bitcoin that enables fast and inexpensive transactions.
A free and open-source operating system that is widely used in various devices, including servers and computers.
The degree to which an asset or security can be bought or sold quickly and easily, without affecting its price.
An individual or firm that provides a market with the necessary liquidity by making it easier to buy and sell assets. A liquidity provider offers a market by continuously quoting buy and sell prices and being willing to execute trades at those prices.
The process of making a cryptocurrency available for trading on an exchange.
The main blockchain network of a cryptocurrency, as opposed to its testnet or other development networks.
The process of exchanging tokens from one blockchain to another, usually from a testnet to a mainnet.
An individual or entity that creates a new order to buy or sell a cryptocurrency at a specified price.
Malicious software that is designed to harm or exploit a computer or network.
The total value of all the outstanding cryptocurrency tokens in circulation. As of writing, the market capitalisation of all cryptocurrencies is estimated to be $1.3 trillion.
The strength or weakness of price movement in a particular direction, indicating the likelihood of continued price movement in that direction.
An order to buy or sell an asset at the current market price.
A type of node in a cryptocurrency network that performs specific functions such as validate transactions, maintain a full copy of the blockchain, and provide additional features to the network.
The maximum number of tokens or coins that will be created in a cryptocurrency.
An alternative cryptocurrency that is based on a viral internet meme. A popular example is Dogecoin.
A holding area for unconfirmed transactions on a blockchain, waiting to be processed and included in a block.
A process of mining two or more cryptocurrencies at the same time, using the same computational power, without sacrificing the hash rate of either cryptocurrency.
A data structure used in blockchain technology to verify the integrity of large amounts of data.
Information that describes and contextualises data. In blockchain, metadata can include information such as transaction amounts, timestamps, and addresses.
A term used to describe a virtual world, typically created in a virtual reality environment, where users can interact with each other and with virtual objects.
The process of verifying cryptocurrency transactions using computer hardware. Miners use their computing power to guess the correct solution to a cryptographic problem, and are rewarded with newly minted cryptocurrency tokens for their efforts.
A large-scale operation that uses specialised hardware to mine cryptocurrency.
Rewards received for participating in the process of adding new blocks to a blockchain network. These rewards may be considered taxable income.
The measures taken by a government or central bank to manage the money supply and interest rates in an economy.
A slang term used in the cryptocurrency community to describe a steep and rapid increase in the price of a cryptocurrency.
The goal or expectation of a particular cryptocurrency to reach the moon (sky-high values).
A term used to describe a cryptocurrency with high growth potential.
A security feature in cryptocurrency transactions that requires multiple signatures or approvals before a transaction can be executed.
A computer or device connected to other computers or devices that hold a copy of a blockchain and work together to support the network by sharing information and validating transactions.
A random number used in cryptography to generate a unique value for a hash.
Transactions or other activity that occurs outside of a blockchain network, without being recorded on the blockchain.
A bank account located in a foreign country, often used to take advantage of lower tax rates or to protect assets from government seizure.
A term used to describe a transaction that is recorded on a blockchain.
A token that is both minted and used on a blockchain, such as Bitcoin.
Software that is made freely available to the public, with the source code available for anyone to modify or distribute.
An intermediary that provides information to a blockchain and enables it to interact with real-world data. Oracles act as a bridge between a blockchain’s secure and decentralized environment and the outside world.
A real-time record of all outstanding buy and sell orders for a particular asset, shown as a list. The order book displays the price, quantity, and type of each order, providing insight into supply and demand dynamics and helping traders make informed decisions.
A system of ranking or ordering, used in mathematics and computer science. In blockchain technology, ordinals are used to prioritize transactions in a queue and ensure that they are processed in a specific order.
A block that is not part of the main blockchain and is discarded or ignored by the network. Orphan blocks can occur when two miners solve the proof-of-work puzzle at the same time and both broadcast their blocks to the network, leading to a split in the blockchain.
A type of transaction conducted directly between two parties without the involvement of intermediaries or central authorities.
A physical representation of a cryptocurrency wallet that is printed on paper, often with a QR code to allow for easy access. Paper wallets are considered a secure way to store cryptocurrencies offline, as they are not connected to the internet and therefore less vulnerable to hacking.
An investment strategy where a portfolio is managed passively, usually by tracking a benchmark index. Passive management aims to match market returns, rather than outperform them, through low-cost, diversified investments.
A currency that is pegged or fixed to the value of another currency or asset, usually with the goal of maintaining stability and avoiding volatility. Pegged currencies are often used in countries with high inflation, as a way to maintain the value of their currency relative to other currencies.
A blockchain that does not require permission to participate in the network, validate transactions, or create new blocks. Anyone can join a permissionless blockchain and participate in the consensus process, making it a more decentralised and democratic form of blockchain technology.
A type of cyber attack where an attacker uses fraudulent means to obtain sensitive information, such as login credentials or financial information, from a victim. In the context of blockchain and cryptocurrency, phishing attacks often target users by posing as legitimate exchanges or wallet providers, tricking them into entering their private information.
A scaling solution for blockchain technology that allows for the creation of child chains that can process transactions independently of the main blockchain. The child chains can communicate with the main blockchain, known as the root chain, to settle transactions and maintain security.
A fundraising mechanism used by projects in the Polkadot ecosystem where users can lend funds to a project in exchange for rewards in the form of tokens. The funds raised through the crowdloan are used to finance the project’s development and help bring the project to the mainnet.
An investment scam in which returns are paid to existing investors from the funds contributed by new investors, rather than from profit earned.
A technical analysis approach that uses historical price and volume data to identify trends and make trading decisions.
A long, nearly impossible to guess number that serves as the password to a user’s crypto holdings. Transactions are authorised by signing them with a hash of the private key, which can only be known by the user. The corresponding public key can be used by others to verify the authenticity of a transaction.
An early stage of a token sale where a limited number of tokens are sold to a select group of investors at a discounted price.
A type of web application that uses modern web technologies to deliver an app-like experience within a web browser, without the need for a dedicated app store.
A blockchain-based platform that allows event organisers to track and reward attendees with digital tokens, providing proof of attendance through smart contracts.
A method of proving that a cryptocurrency exchange or wallet holds the full amount of assets that it claims to hold, by publicly displaying the cryptographic proof of the balance.
A consensus mechanism in blockchain technology where validators are selected to validate transactions and create new blocks based on the amount of cryptocurrency they hold and are willing to “stake.” This is in contrast to Proof of Work (PoW), where validators compete to solve a complex mathematical problem and are incentivized with block rewards.
A consensus mechanism used by some blockchain networks to validate transactions, often involving the solving of complex mathematical problems.
A type of random number generation that appears to be random but is generated through a deterministic process, used in cryptography for secure key generation.
The public address of a user’s crypto wallet. To receive funds, a user must share their public key, which acts like an email address or account number.
A coordinated effort to artificially inflate the price of a particular cryptocurrency through coordinated buying and selling.
A field of computer science that leverages the principles of quantum physics to process data at faster speeds and larger volumes than traditional binary-based computing.
A type of attack in which two miners race to solve a block and add it to the blockchain first. The attacker who succeeds first can prevent the other block from being added, leading to a potential loss of revenue for the miner who loses the race.
A type of malicious software that encrypts a user’s files and demands payment in exchange for the decryption key.
A market that requires players to comply with specific rules with the risk of fines or the loss of their operating licence for non-compliance. For instance, financial services are regulated in the UK.
A technical indicator used to determine whether an asset is overbought or oversold by measuring the speed and change of price movements.
A level at which price has difficulty rising above, often serving as a potential sell signal for traders.
The amount of profit or loss made on an investment compared to the original investment cost.
An attack on a decentralised network in which a malicious actor tries to control the flow of information by manipulating the routing of messages.
A type of exit scam in which a project suddenly disappears and takes investor funds with it.
A unit of Bitcoin equivalent to a penny in relation to a pound.
The anonymous creator(s) of Bitcoin who remain unknown to this day.
A term used to describe a cryptocurrency or blockchain project that is believed to be fraudulent or a scam.
A fund set up by exchanges to protect users’ assets in the event of a major hack or other security breach.
A government agency responsible for regulating the securities industry and protecting investors.
A comprehensive review of a system or network’s security measures, identifying potential vulnerabilities and making recommendations for improvement.
A randomly generated series of 12-24 words produced by a crypto wallet that provides access to the wallet.
A soft fork upgrade to the Bitcoin blockchain that separates transaction signatures from the rest of the transaction data, allowing for more efficient and secure transactions.
A mining strategy in which miners attempt to withhold blocks and create private chains to increase their rewards.
A large sell order visible on an exchange’s order book, indicating a potential resistance level.
A measure of market participants’ attitudes and beliefs about a particular asset or market.
A cryptographic hashing algorithm developed with the help of the US National Security Agency and used by Bitcoin that compresses any amount of data into an un-reverse-engineered alphanumeric string, keeping the original data secure while still being useful for input data validation.
A database partitioning technique that splits a database into smaller, faster parts. Sharding is used in blockchain to improve scalability by distributing transactions across multiple nodes.
A measure of risk-adjusted returns, calculated by dividing the average returns by the standard deviation of returns.
A person who promotes a particular cryptocurrency or blockchain project, often with the intention of driving up its value.
A program that executes automatically on a blockchain when specific conditions are met, without the need for human intervention or intermediaries. Once executed, the contract cannot be altered or undone.
A frozen image of a blockchain state, typically taken prior to a network upgrade or token swap.
A change to the blockchain that is backward-compatible, meaning that it does not create a new version of the existing cryptocurrency.
The human-readable code that is written in a programming language and can be compiled into machine-executable code.
A cryptocurrency such as Tether, whose value is tied to a currency, commodity, or financial instrument.
A group of individuals who pool their resources together to earn staking rewards on a proof-of-stake blockchain.
Rewards received from holding and participating in the validation of transactions on a proof-of-stake blockchain. These rewards may be considered taxable income.
A technology used in blockchain to conduct transactions off-chain, reducing the load on the main network and improving scalability.
An asset that maintains its value over time and can be used as a medium of exchange or investment.
A computer with exceptional processing power, used for scientific and engineering applications.
A series of entities involved in the production, delivery and sale of a product, from raw materials to end user.
The act of selling a cryptocurrency at a loss in order to offset gains and reduce the amount of tax owed.
An event that triggers a tax liability, such as the sale of cryptocurrency for a profit.
The rate at which a computer or network can guess one trillion hashes every second while mining cryptocurrency.
A stablecoin pegged to the US Dollar.
A phrase used to describe a cryptocurrency that is rising in value rapidly.
Transaction ID (TXID): A unique identifier assigned to each transaction on a blockchain. The transaction ID can be used to track the status and confirmations of a specific transaction.
In cryptocurrency, a token is a unit of digital currency that represents a specific asset or utility. Tokens can be used for a variety of purposes, including representing assets like property or stocks, or for accessing specific services within a decentralised platform.
A period of time during which token holders are unable to sell or trade their tokens. Token lockups are often used to prevent the rapid dumping of tokens after an initial coin offering (ICO) or to align the incentives of early investors with the long-term success of the project.
A process in which a new cryptocurrency project sells a portion of its tokens to early investors in exchange for funding. Token sales are often used as a means of raising capital for a new project without relying on traditional venture capital or angel investment.
The total number of tokens that will exist for a particular cryptocurrency. This number is fixed and determined by the project’s developers at the time of the token’s creation.
A metric used to measure the number of transactions that can be processed by a blockchain or cryptocurrency platform in one second. TPS is an important consideration for the scalability and performance of a blockchain network.
A term used to describe a system or platform where trust in intermediaries or centralized authorities is not required. In cryptocurrency, trustless refers to decentralised systems where transactions are verified and processed by a network of nodes, rather than relying on a central authority.
A term used to describe a programming language or platform that is capable of solving any computational problem that can be solved by an algorithm. In cryptocurrency, Turing completeness is often used to describe smart contract platforms, like Ethereum, that can be used to build a wide range of decentralised applications.
A unit of measurement used to quantify the value of goods and services in an economy. In cryptocurrency, the most common unit of account is the token, which serves as a standard to measure the worth of other assets within the ecosystem.
Financial services in the UK are regulated, meaning that providers have to abide by strict rules aimed at protecting consumers’ interests. In contrast, crypto is unregulated in the UK, which means that investors receive no legal protection.
A record of a cryptocurrency transaction that has not yet been spent.
The visual design and layout of a software application that interacts with the user.
An individual who pays for the opportunity to validate transactions and earn cryptocurrency on a proof of stake blockchain (as per proof of stake).
A unique code used to verify the authenticity of a user or transaction.
A software environment that mimics the behaviour of a physical computer.
A term used to describe a group of large cryptocurrency holders who have the power to influence market prices.
A market where prices experience frequent and unpredictable fluctuations.
The degree of change in price or value of a financial asset over a given period of time.
The total number of trades in a given financial market over a specified time period.
A digital storage device or location for securely keeping crypto assets.
A tax rule that disallows individuals from claiming a loss on the sale of a security if they purchase a substantially identical security within 30 days before or after the sale.
Investors who are easily influenced by market changes and tend to sell their investments quickly.
A property of consensus systems where nodes have different levels of trust in one another.
The first stage of the development of the World Wide Web, characterised by a focus on providing static content and simple interactions.
A unit of Ether equivalent to a penny in relation to a pound.
A large cryptocurrency holder who has the power to significantly influence market prices.
A visual representation of the spread of a data set, typically shown on a chart as the upper and lower limits that exclude outliers.
A list of approved or allowed participants, addresses, or transactions within a system.
A technical document released in conjunction with new crypto projects that explains how the system operates.
The line that extends from the top or bottom of a candlestick to its body, representing the high or low price for a given time period.
The ratio of successful trades or investments to total trades or investments.
An ERC-20 token that represents the value of one unit of Ether (ETH) and enables Ether to be used as collateral in decentralised finance (DeFi) applications.
A type of cryptocurrency token operating on the Ripple blockchain.
A return on investment expressed as a percentage.
A transaction that has been confirmed but not yet recorded on a blockchain.
A type of cryptography that enables one party to prove to another that a given statement is true, without revealing any additional information.
Zero-knowledge succinct non-interactive argument of knowledge, a type of zero-knowledge proof that enables highly efficient and compact verification of computations.
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