The language of cryptocurrency and blockchain technology can be overwhelming, especially if you are new to digital currency. If you reading and hearing words like Hot Wallet or Cold Storage, and you can’t connect the dots, it’s normal. Most of us wrestled with these words at the beginning. To help, here’s a Cryptionary infographic by Uphold.com.
Common Cryptocurrency and Blockchain Terminology
Getting a handle on cryptocurrency and blockchain technology terminology and jargon can be easy with a little research and practical use. Getting the main terminology and jargon out of the way first is essential to becoming a crypto-linguistic! The following are a few of the most used that are important to know and understand.
- Distributed Ledger: A recorded database of public transactions stored and updated on servers and computers.
- Genesis Block: The first block ever created on the blockchain.
- Cryptocurrency Address: The cryptocurrency address is how digital currency is sent and received using digital wallets.
- Digital Wallet: A digital wallet stores cryptocurrency like Bitcoin, Ethereum, Ripple, etc., and controlled solely by the owner of the wallet.
- Hot Wallet: This is when a wallet is connected to the Internet.
- Digital Token: A digital token is the actual digital asset, utility, or equity associated with a blockchain. Mainly digital tokens are used in ICOs and crypto-rewards systems like Basic Attention Token (BAT).
- Initial Coin Offering (ICO): ICO is the launch of a new cryptocurrency or token that is used to raise startup money or seed money for a new company.
- Altcoin: Altcoin is a cryptocurrency alternative to Bitcoin.
- Blocks: This is the “block” in “blockchain” that is a transaction record. Blocks are created in a chronological, linear way, secured with cryptography on the blockchain.
- Exchange Rate: Similar to the exchange rate of fiat currency, cryptocurrency exchange rate is the value of a currency in respect to another currency.
- Satoshi: A Satoshi is the smallest fraction of a Bitcoin, named after the creator of Bitcoin, Satoshi Nakamoto.
Wrapping Your Mind Around Cryptocurrency
The above cryptocurrency and blockchain technology jargon and terminology are only the tip of the iceberg. The deeper you go, the more crypto-vocab you’ll need to learn. Fortunately, you can pick up these new terms as you go.