Interactive Research

Blockchain Terminology

Author: Frank Holmes
Date Posted: June 8, 2022 Read time: 4 min

20 Crypto terms beginners NEED To know

Blockchain Terminology Slideshow
BLOCKCHAIN TERMINOLOGY

20 Crypto terms beinners need to know - View the slideshow

ALTCOIN
Altcoin:

Any coin or token other than Bitcoin.

BITCOIN
Bitcoin:

The first and most popular cryptocurrency based on distributed ledger technology (DLT) developed from a whitepaper written by Satoshi Nakamoto in 2008.

Block
Block:

A group of transactions entered into a blockchain; comparable to a page of a ledger or record book.

BLOCKCHCAIN
Blockchain:

A mathematical structure for storing digital transactions or data in an immutable, distributed, decentralized digital ledger consisting of blocks that are linked via cryptographic signature that is nearly impossible to fake, hack or disrupt.

CRYPTOCURRENCY
Cryptocurrency:

Digital money that uses encryption and consensus algorithms to regulate the generation of coins/tokens and transfer of funds. Cryptocurrencies are generally decentralized, operating independently of central authorities.

Decentralized Finance (Defi)
Decentralized Finance (DEFI):

DeFi is a system by which financial products become available on a public decentralized blockchain network. This type of system allows for anyone to use it, forgoing the use of banks or brokerages.

diamond hands
Diamond Hands:

‘Diamond hands’ is an expression that refers to someone who has a high-risk tolerance for high volatility stocks or assets that they own.

Fiat
Fiat:

Legal tender, the value for which is backed by a government or governmental body (e.g., U.S. dollars, European euros, South Korean wones)

FUD
FUD:

It is a popular term amongst cryptocurrency enthusiasts that stands for “fear, uncertainty, and doubt.” FUD is generally a strategy to influence perception by disseminating negative and false information and a manifestation of the appeal to fear.

HODL
HODL:

It is a term that originated from a post to the Bitcoin Forum in 2013 in which a user misspelled “hold” in reference to buy-and-hold strategies. HODL also stands for “hold on for dear life.”

Maximalist
Maximalist:

A maximalist, in the cryptocurrency community, is someone who believes that Bitcoin is the only digital asset that will be needed in the future. Maximalists believe that all other digital currencies are inferior to Bitcoin.

Meme Stocks
Meme Stocks:

Stocks that see dramatic price increases, mostly fueled by influencers on social media (primarily Twitter, Reddit and TikTok). These types of stocks rarely have company fundamentals that back the rise in price and are often highly volatile.

Mining
Mining:

In a public blockchain, it is the process of verifying a transaction and writing it to the blockchain for which the successful miner is rewarded in the cryptocurrency of the blockchain.

Minow
Minow (or Fish):

In the world of cryptocurrency, a minnow refers to someone who owns a relatively small amount of digital assets. When they buy or sell their cryptocurrencies, it’s unlikely to have a substantial impact on the rest of the market.

NFT
NFT:

NFT stands for “non-fungible token.” The word “non-fungible” means unique and irreplaceable and, in this context, is a form of digital art (e.g., drawings, music, GIFs, etc.) that is stored in the Ethereum blockchain.

NODE
Node:

A computer that holds a copy of the blockchain ledger.

Satoshi Nakamoto:
Satoshi Nakamoto:

The pseudonym used by the presumed person or entity who developed Bitcoin, authored the Bitcoin whitepaper, and created and deployed Bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database.

Smart Contract
Smart Contract:

Self-executing computer code deployed on a blockchain to perform the function of documenting legally relevant events and actions according to the terms of a contract or an agreement between a buyer and seller.

Wallet
Wallet:

A digital file that holds coins and tokens held by the owner. The wallet also has a blockchain address to which transactions can be sent.

Whale
Whale:

In the world of cryptocurrency, a whale refers to someone who owns a relatively large amount of digital assets. When they buy or sell their cryptocurrencies, it’s likely to have a substantial impact on the rest of the market.

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