| Address | The name of the string of alphanumeric characters used to buy and sell cryptocurrencies. |
| Airdrop | In the cryptocurrency and blockchain ecosystem, the term "Airdrop" refers to the distribution of digital assets either by holding another specific token or simply because there is an active wallet address in a particular blockchain. That is different from the allocation of tokens or coins through an ICO event. During ICOs, the digital asset offered is usually purchased using an alternative coin or coin. In the airdrop, no purchase is expected from the buyer, which means the assets are distributed free of charge. |
| Algorithm | An algorithm is a procedure or formula created to solve a problem based on performing a specific set of actions. A computer program can be viewed as a detailed algorithm. In mathematics and computer science, an algorithm usually means a small procedure that solves a repetitive problem. Algorithms are widely used in all areas of information technology. The word algorithm comes from the mathematician Abu Abdullah Muhammad Ibn Musa al-Khwarizmi, a member of Baghdad's royal family who lived between about 780 and 850. |
| Algorithmic Trade | Algorithmic trading or algorithmic trading uses computer codes and chart analysis to trade according to set parameters such as price movements or volatility levels. When current market conditions match any predetermined criteria, trading algorithms can place a buy or sell order on your behalf. That can save you time while browsing the markets. It also means your transactions will be processed almost instantly. |
| Altcoin | All cryptocurrencies other than Bitcoin, produced after Bitcoin, are called Altcoin. Altcoins are a kind of alternative to Bitcoin. They are cryptocurrencies that use blockchain technology. Altcoins are cryptocurrencies that have started to emerge after Bitcoin's success and have acquired a field of existence by changing the rules in Bitcoin to appeal to different users. Generally speaking, altcoins are very similar to the original Bitcoin. Using the private key, you can transfer assets from your digital wallet to another user's wallet. |
| Altfi (Alternative Finance) | Alternative Finance is a broad term that covers many types of finance solutions. At first, the term alternative and its financial products may seem daunting, but once Altfi is understood, it can have reliable and potential benefits for any business. Alternative Finance is a term that covers all financial instruments except traditional Finance. As a result of the 2008 financial crisis, the popularity of alternative Finance has grown significantly year over year. Banks made it increasingly challenging to lend because of ever more restrictive lending policies, which led to the rapid growth of the alternative finance sector. |
| AML (anti-money laundering) | To understand why money laundering is a crime, we first need to learn what money laundering is. The most important thing is that money laundering is a major financial crime. Money laundering is the legalization of money obtained illegally. Anti Money Laundering includes policies, laws, and regulations aimed at preventing financial crimes. Global and local regulators are established worldwide to prevent money laundering, and every country has different anti-money laundering policies. Companies must comply with money laundering regulations to continue their business in their country of residence. |
| Angel Investor | An angel investor is a wealthy individual who usually provides financing in exchange for a startup's share. While angel investors can make the difference between the growth or the startup's shutdown, they are first and foremost investors. These investors do not just give their money; they invest at some point, thinking they will get the extra cashback. Interest in angel investing has grown in recent years as more and more investors are trying to get better returns on their money than they can get from traditional investment tools. Contrary to popular belief, most angel investors are not billionaires. |
| Anonymization | Anonymization is a data mining strategy in which anonymous data is cross-referenced with other data sources. |
| API (application programming interface) | API means application programming interface. API is a program that allows one software to interact with another. APIs are ubiquitous in today's financial ecosystem, and most people are unaware that they use APIs. A trading API, as the name suggests, allows you to interact with a trading system. More specifically, it will enable you to trade directly on an exchange. APIs are popular with hedge funds and proprietary trading firms due to their use of algorithmic trading programs. Private investors also benefit from transaction APIs provided by online brokers and cryptocurrency exchanges. |
| ASIC (Application-specific integrated circuit) | ASICs are non-standard integrated circuits designed for a specific use or application. Generally, an ASIC design is performed for products with an extensive production margin, and the ASIC contains the vast majority of the electronics needed in a single integrated circuit. As might be expected, ASIC design is costly, so they are manufactured for high volume products. |
| ASIC Mining | Mining is the process of using computing power to solve a complicated math problem, review and validate information, and create a new block so that information can be added to the blockchain. ASIC mining is a cryptocurrency mining process using ASIC. Since these systems are built explicitly for this purpose, it provides a much faster throughput rate than an ordinary desktop or laptop computer. In addition to these, it reduces electricity consumption compared to all previous technologies and provides a 100-fold increase in hash power. |
| Accidental Fork | Sometimes, multiple blocks are added to the Bitcoin chain at the same time by miners. That creates an accidental bifurcation in the chain. In this case, nodes always prefer to work with the largest chain, and the shorter chain is abandoned. However, this does not mean that this abandoned block is invalid / canceled. Or it does not mean that the transactions in the blocks have been removed. Instead, all transactions of this block are forwarded to mempool, and verifications are performed again for those transactions. |
| Anonymization (data anonymization) | Anonymized data is a type of information cleansing. Data anonymization tools encrypt or remove personally identifiable information from data sets to protect data privacy. That reduces the risk of unwanted disclosure during information transfer and facilitates post-anonymization evaluation and analysis. Data anonymization is also known as "data hiding," "data masking," or "data disguise." It can be compared to anonymization, which are techniques used in data mining that attempt to redefine encrypted or hidden information. |
| Buy Wall | A buy wall is created when the number of buy orders for a given cryptocurrency exceeds the number of sell orders. The bigger the purchase wall, the greater the belief in that money. A large buy wall may allow you to assume that the coin is hugely popular and is in high demand, especially if it has been this way for some time and has a regular timeline. The buy wall affects an asset's price because if the large order cannot be fulfilled, it cannot buy orders with a lower bid. The price does not fall further as the transaction below the wall cannot be completed until the significant transaction is executed - which helps the wall act as a short-term support level. |
| Bagholder | Bagholder is the name given to an investor with a worthless share. Initially, the Bagholder (investor) expects the share price to rise and make a profit. However, the price is so low that it becomes worthless. When the stock price drops gradually, investors sell the shares they own to limit their losses. However, some investors do not believe that the decline is temporary and will change the direction of price action. While waiting for the opposite, the stock price drops further, and investors lose a large part, even the entire amount invested. Bagholder's etymological origin is based on the people who were waiting for soup with bags of potatoes in their hands during the Great Depression in 1929. |
| Bitcoin | Bitcoin is the first-ever produced, best-known, and most traded digital currency. Bitcoin was first announced in 2008 in a manifesto published by a person or group that disguised its identity using the name Satoshi Nakamoto. The starting point of Bitcoin, which became functional on January 3, 2009, does not have a physical center; it desires to create a currency that is not under the control of any state, corporation, or institution. The production of Bitcoin, which is not produced unlimitedly like other digital currencies, is limited to 21 million. With this feature, it is also accepted as the gold of digital currencies. |
| Bitcoin Cash | The symbol of Bitcoin Cash, created in 2017 by separating the Bitcoin blockchain, is BCH. It is among the most traded cryptocurrencies with its transaction volume. The emergence of Bitcoin Cash was due to the Bitcoin system's slowdown, which has a specific transaction limit due to its nature. This situation created a search for a new alternative. Bitcoin developers preferred to create a new cryptocurrency instead of updating the system. Block sizes of 1 MB in Bitcoin have been increased to 8 MB in Bitcoin Cash. This upgrade has resulted in a faster approval system. |
| Bitcoin Mining | Bitcoin mining is performed by high-powered computers that solve complex computational math problems; These problems are so complex that they cannot be translated typically and require computers with very high processors. Bitcoin mining is the process of generating new Bitcoin by solving a computational puzzle. Bitcoin mining is necessary to keep track of the transactions on which bitcoin is based. Miners have become very sophisticated over the past few years, using sophisticated machines to accelerate their mining operations. |
| Byzantine Fault Tolerance | Byzantine Fault Tolerance (BFT) is one of Blockchain technology's most challenging problems. All the cryptocurrency network participants need to agree regularly or agree on the current state of the blockchain. Byzantine Fault Tolerance in a cryptocurrency is the ability to reach an agreement or consensus about individual blocks, based on evidence of work, even when some nodes fail to respond or give negative values to mislead the network. The primary purpose of BFT is to protect the system even if there are some faulty nodes. That will also help reduce the impact of incorrect knots. |
| Block | Block is a file in which data on the Bitcoin network is permanently saved. A block records some of the last Bitcoin transactions that have not yet been recorded in any previous block. Thus, the block is like a page in a ledger or ledger. Each time a block is "completed," it creates the next block in the blockchain. Therefore, the block is a permanent record store that cannot be changed or removed once written. A block can be thought of as a link in a chain. It has some or all of the records of previous transactions. Hacking a block is almost impossible. |
| Block Size | The block size in Bitcoin refers to the size of a code block that represents a new bitcoin transaction chain. At a certain point, a bitcoin block is added to other blocks to create a continuous chain that facilitates bitcoin transactions' authentication. |
| Block Height | The most basic explanation for block height is that it expresses the total number of individual blocks that are part of a given blockchain. Block height represents the number of confirmed blocks in the entire history of a given blockchain network - from the genesis block (or block zero) to the newest. Unlike the Genesis block, all other blocks contain a reference (hash) to the block immediately preceding it, and the block height is the number of each block in that order. |
| Blockchain | Blockchain, more commonly known as the blockchain, is the name given to the distributed data recording system that enables the tracking of transactions in encrypted form. Blockchain is a simple but innovative way to transfer information from point A to point B in a fully automated and secure manner. One side of the transaction starts the process by creating a block. Thousands have verified this block, perhaps millions, of computers distributed on the Internet. The verified block is attached to a chain stored on the network and is not just a unique record; it also creates a unique form with a unique history. |
| CCI30 | The cryptocurrency index's abbreviated name includes the 30 largest cryptocurrencies in terms of transaction and market volume. |
| Coin | A cryptocurrency or digital currency independent of other blockchains or platforms. The main characteristic of a coin is that it has a currency, and the term can also be used to describe a non-coin cryptocurrency asset. Digital money transfers can be made from one person to another. However, no physical money moves when you send and receive them. All "cryptocurrencies" exist as data in a substantial global database. Digital currencies are often used in the same way as a real coin - like cash. You can think of coins like Bitcoin, Litecoin, and Monero, just like the coins in your wallet or cash register. |
| Coin Burning | Coin Burning removes cryptocurrencies permanently from circulation and reduces the total supply. That is a relatively simple and joint action in which a cryptocurrency's developing team or organization deliberately destroys the cryptocurrencies to force a lower supply. Although there are other reasons for these burnings, they mainly create a deflation mechanism. Cryptocurrency burns are unique to the cryptocurrency market, as traditional fiat currencies cannot be destroyed in this way. |
| Commit | Commit is a command used in Github to save changes in a code or project to a local repository. Using the "git commit" command only saves a new commit object to the local Git repository. Transactions must be exchanged manually and explicitly (using the controls "git fetch," "git pull," and "git push"). |
| Cosmos Network | Declared as the "internet of blockchains" by its founders, Cosmos aims to create a network of crypto networks combined with open source tools to facilitate transactions between them. Cosmos is an ecosystem of blockchains that can scale and work with each other. Before Cosmos, blockchains were in silos and could not communicate with each other. They were challenging to create and could only handle a small number of transactions per second. Cosmos solves these problems with a new technology vision. |
| Cypherpunk | A term coined by Eric Hughes in "A Cypherpunk Manifesto" in 1993, Cypherpunk is the person who advocates the widespread use of robust cryptography and privacy-enhancing technologies on the road to social and political change. They believe it will enable it to have private transactions, and they oppose any form of cryptography regulated by the state. |
| Circulating Supply | The circulating supply (CS) is the total amount of coins or tokens currently active in the crypto market. Since the market value is calculated by multiplying the price of a coin and the circulating supply, it affects the crypto market capitalization. This metric specifies the size of the cryptocurrency. Knowing the circulating supply can help you in the analysis. Experienced traders can conclude the currency's market value and liquidity. |
| Crowdfunding | Crowdfunding is a method of increasing capital through the collective effort of many individuals. This approach leverages the joint efforts of a large pool of individuals (especially online through social media and crowdfunding platforms) and strengthens their networks for broader reach and exposure. Crowdfunding is essentially the opposite of the general approach to business finance. There are many different types of a capital increase for growth-stage businesses and various types of crowdfunding. Which crowdfunding method you choose depends on the type of product or service you offer and your growth goals. The three main types of crowdfunding are donation-based, reward-based, and equity funding. |
| Cryptocurrency Index (CRIX) | The Cryptocurrency Index (CRIX) is a benchmark for the crypto market. It aims to give all interested insight into the current and past movement of this new market. CRIX is calculated in real-time by the Ladislaus von Bortkiewicz Chair for Statistics at the Humboldt University Berlin, Germany. The development was a joint work with SKBI at the Singapore Management University and CoinGecko, which is still providing computing data. The Cryptocurrency Index (CRIX) is an index consisting of 20 components from the crypto money markets. |
| Cryptographic Protocol | Protocol is a set of rules or instructions that determine how to act or interact in a given situation. The cryptographic protocol is designed to allow secure communication under certain conditions. The cryptographic protocol Internet users are most familiar with is the Secure Sockets Layer (or SSL) protocol that protects credit card numbers and other sensitive information (via its descendant Transport Layer Security or TLS protocol). It uses your browser's address bar to let you know that you can trust the connection. |
| Cryptocurrency | Cryptocurrencies are the most known digital assets. They are encrypted in a very complicated way using cryptographic protocols. They can be used in entirely digital and virtual transactions. Although it has become prevalent today, mainly thanks to Bitcoin, its functions are not fully known. Users can produce crypto coins through computers with a high processor and high-speed internet connection with the mining method. |
| Cryptocurrency Exchange | Cryptocurrencies can be produced through mining. However, this method is both costly and challenging. Another way to buy crypto money is to buy cryptocurrencies with fiat money (Dollars, Euros, Turkish Lira). Digital intermediary websites where we can purchase cryptocurrency with these coins are called cryptocurrency exchanges. Cryptocurrency exchanges are exchanged websites. You can easily buy and sell cryptocurrencies on these websites. Cryptocurrency exchanges work with the logic of traditional exchanges. However, you can make your transactions on crypto money exchanges with your account; you don't need an intermediary. |
| Consensus Mechanism | The consensus mechanism is a fault-tolerant mechanism used in computer and blockchain systems to achieve the necessary agreement on a single data value or a single state of the network between distributed processes or multi-mediated systems such as cryptocurrencies. Different consensus mechanism algorithms are working on other principles. Proof of work (POW) is a standard consensus algorithm used by most popular cryptocurrency networks like bitcoin and Litecoin. Proof of stake (POS) is another standard consensus algorithm developed as a low-cost, low-energy alternative to the POW algorithm. |
| Central Ledger | The central ledger, which we can define as a general ledger, contains all the accounts in which a company's assets, debts, owner's equity, income, and expenses are recorded. Everything that has financial value in the world needs a notebook. In modern times, the computerized ledger has emerged; in other words, the central ledger functions as a central repository for the accounting data transferred from Enterprise resource planning (ERP), general ledger, cash management, fixed assets, purchasing, and projects. |
| Colored Crypto Coins | Colored crypto coins are tokens representing real-world assets in the blockchain. You can use colored cryptocurrencies to prove ownership of any physical asset, from precious metals to cars, real estate, or stocks and bonds. It is effortless to publish them. Colorful cryptocurrencies offer some exciting features, but they are not understood and are not widely used. One reason for this is creating the Ethereum blockchain and the relative mass adoption of ERC-20 tokens. |
| Custodian | It is the name given to the institutions and organizations authorized to keep securities on behalf of the customer. A custodian can hold stocks or other assets in electronic or physical form. Custody institutions are large and reputable firms, as they are responsible for the security of assets and securities worth hundreds of millions or even billions of dollars. |
| Cybersecurity | Cybersecurity is the general name of the measures to protect systems, networks, and programs from digital attacks. These cyberattacks generally aim to access, alter, or destroy sensitive information. These attacks aim to extort money or disrupt individuals' and organizations' normal business processes by stealing information from users. A successful cybersecurity approach has to have multiple layers of protection spread across computers, networks, programs, or data it intends to keep safe. |
| Cold Wallet | The hardware where your digital assets are stored and manage your crypto money transactions, just like in internet banking, are called wallets. The general name for wallet applications that are not connected to the Internet is called Cold Wallet. These wallets are stored in environments where there is no internet connection to protect against cyber-attacks and increase data protection against unauthorized access and other security vulnerabilities. The cold wallet allows you to store your digital assets offline. Mostly, those who have large amounts of crypto money prefer this method. |
| Complementary Currencies | The complementary currency, also known as the community currency, is a payment system that can be used to supplement or add to the existing currency. To be implemented, a community must formally agree on a structure or a recognized exchange method. A complementary currency is used and existing national currencies to use salable resources that national currencies ignore. |
| Double Spending | Double spending is a problem that involves spending the same transaction multiple times and occurs when trading with digital currency. Multiple transactions sharing the same input posted on the network can be problematic, and this is a flaw unique to digital currencies only. The primary reason for double-spending is that digital currency can be reproduced very easily. |
| Double-Spending Attack | A double-spending attack occurs when a user makes a second transaction on the network with the same data as the previous one that was already verified. A double-spending attack cannot be made on physical fiat money. However, this is not the case with the blockchain. Cryptocurrency is a digital asset that is relatively easy to copy. Since there is no central authority to control transactions, users can copy digital files more efficiently and use them to make purchases. The Bitcoin blockchain has implemented a protocol to counter double-spending attacks, inspired by the traditional cash system. That is a confirmation mechanism that maintains the "chronologically ordered" blockchain used since the first registered attack in 2009. |
| DAG | Directed acyclic graph (DAG) is a conceptual representation of a set of activities. The sequence of actions is represented by a graph visually presented as a set of circles, each representing one activity, some connected by lines representing the flow from one activity to the next. Each process is known as the "vertex," and each line is known as the "edge." |
| DAICO (Decentralized Autonomous Initial Coin Offering) | DAICO stands for Decentralized Autonomous Initial Coin Offering. It is one of the new concepts to increase your funds effectively. They are combined with the benefits of decentralized autonomous organization and ICO. DAICO can be seen as a modern peer-to-peer capital investment model. It helps to set strict management rules on ICO projects to avoid the risks of investors. The DAICO platform allows token issuers to vote when the project development team is not satisfied with the development process. |
| DAO (Decentralized Autonomous Organization) | The acronym DAO stands for Decentralized Autonomous Organization. In simple terms, DAO is an organization governed by computer code and programs. Thus, it can operate autonomously without the need for a central authority. DAOs are made up of people who interact with each other according to a self-implementing open-source protocol. Keeping the network safe and performing other networking tasks is rewarded with local network tokens. |
| Decryption | Decryption is to take encoded or encrypted text or other data and convert them into text that you or the computer can read and understand. This term (decryption) can describe a method for manually decrypting data or decrypting data using appropriate codes or keys. Decryption can be done manually or automatically. |
| DEX (Decentralized Cryptocurrency Exchanges) | Decentralized cryptocurrency exchanges aim to solve the problems experienced in central businesses. They create p2p markets immediately on the blockchain, allowing investors to store and run funds independently. Users of such exchanges can trade with the cryptocurrency directly among themselves - that is, without the involvement of third parties. |
| DG (directed graph) | An array model formula defines a directed graph. For each formula, the answer specifies a node of the chart and above. The chart does not contain loops. |
| DIaaS | DIaaS or Data as a Service Identification is a service platform that connects and approves the consumer's data for various business applications following the full GDPR. IDaaS covers a range of identity management features and often includes basic, standardized components such as customer registration/login screens, Multi-Factor Authentication (MFA), Single Sign-On (SSO), and self-service user account management. Banks can also make it much simpler to support existing digital IDs from third-party Identity Providers (IdPs), such as digital IDs, service providers such as Google, Facebook, LinkedIn, and IDs found in corporate directories. |
| Digital Asset | In the simplest terms, a digital asset is a digitally stored content. That could mean pictures, photos, videos, files containing text, spreadsheets, or slides. New digital formats are continually emerging - MP3s, for example, were unheard of before the 1990s - so the definition of the digital asset is always expanding. All digital assets create value, but not all digital assets are considered equal. |
| Digital Currency | A digital currency is a type of currency that can only be used in digital or electronic form, not physical. That is also called digital money, electronic money, electronic currency, or cybercash. Digital currencies are abstract and can only be owned and traded using computers or electronic wallets connected to the Internet or designated networks. Like any standard fiat currency, digital currencies can be used to purchase goods and pay for services. |
| Digital Identity | A digital identity is a network or Internet equivalent to a person or organization (such as a business or government agency) used to identify connections or transactions from computers, mobile phones, or other personal devices. To establish the link between true identity and digital identity, you must first verify someone's identity, or in other words, prove you are who you say you are. Once created, authentication is required to use a digital ID. |
| Digital Payment | In simple terms, the payment you make when you purchase goods or services using various electronic media is called digital payment. Cash or checks are not used in this type of payment method. Perhaps one of the most significant advantages of digital payment is that it speeds up the payment process and does not require lengthy information. Many digital payment apps and mobile wallets are available today that don't charge any service or transaction fees for most things purchased. Besides, many awards and discounts are offered to users on the platforms where these payment channels are used. |
| Digital Security | Digital security is the protection of online identity. Criminals find new ways to steal and operate information from digital users every day for their gain. Digital security is an all-encompassing term that includes the tools you can use to secure your identity, assets, and technology in the online and mobile world. |
| Digital Wallet (mobile wallet) | You need a digital wallet to store your cryptocurrencies. The software that will prove the existence of your money, process your cryptocurrencies, and check your balance, is called a wallet. You can think of your digital wallet as a classic wallet where you can send and receive money as if you have a bank account without any bank need. Some wallets are produced for a single cryptocurrency. Some can be used for multiple coins, some wallets you manage yourself, and some (like those found on cryptocurrency exchanges) are stored under escrow. You can send and receive cryptocurrency through these wallets 24 hours a day, seven days a week. |
| Distributed Ledger | The distributed ledger is a database that exists in several locations or among multiple participants. Most companies use a central database in a fixed place. But a distributed ledger removes third parties from the process, which makes them highly attractive. Distributed ledgers such as blockchain are extremely useful for financial transactions because they reduce operational inefficiencies (ultimately save money). They also provide more security due to their decentralized nature and the inability of ledgers to be changed. |
| DSO (Digital Security Offering) | DSO is a Digital Security Offering. These are also commonly referred to as STOs (Security Token Offerings). DSO is SEC-qualified security. Unlike an ICO, DSO is a proper financial security backed by a company's tangible assets. DSOs work very similarly to stocks. When you invest in a DSO, you invest in the assets of that company. Your DSO is the digitally programmed property of the company that registered the DSO. |
| Democratization of Finance | The term "democratization of finance" refers to the process of removing control of the financial industry from a select few large banks / financial institutions and distributing power among the people. |
| Decentralized Applications (DApps) | Decentralized Applications (DApps) are applications that run on a distributed computing system, that is, a blockchain network. We need to know what central applications are before explaining Dapps. Social media channels such as Facebook, Linkedin, and Twitter operated under a center are examples of centralized applications. The most critical problem of these applications today is the deficiency of users in providing information security. The purpose of Dapps is to create a decentralized app store where everyone can share their apps without a mediator or obstacle. |
| EEA (Ethereum Enterprise Alliance) | As the name suggests, the alliance was created to customize Ethereum for industry players. It aims to "define enterprise-grade software that can handle the most complex, extremely demanding applications at business speed." Its members are an eclectic mix of startups furthermore large and established organizations in their respective industries. |
| Europay MasterCard Visa (EMV) | Europay MasterCard Visa (EMV) is a global electronic transaction standard named after combining the three organizations that founded it. The EMV standard enables EFTPOS terminals worldwide to process chip-based debit and credit cards. Chip cards offer a safer way to handle card transactions. It is complicated to clone embedded security chips produced with EMV technology. To complete an in-store transaction on an EMV-enabled card terminal, the original version of the card (and fragment) must be physically present. |
| ERC (Ethereum Request for Comments) | ERC is not a technology or program, but an Ethereum Public Comment Request (RFC). ERC provides technical guidance to developers for creation. By submitting an EIP (Ethereum Improvement Proposal), developers can introduce new ERC standard offers to the Ethereum community. Presentations include contract specifications and contract standards. Once the EIP is approved and finalized by the Ethereum Committee, it becomes a new ERC. The new ERC provides a set of measures that can be implemented for Ethereum developers. Developers can use these standards to create smart contracts. |
| ERC-1400 | ERC 1400 is a standard for security tokens. A group of market participants introduced it to help create a better foundation for the development and growth of blockchain-based securities. |
| ERC-20 | ERC20, which stands for Ethereum Request for Comments, 20 of which is used as an identification number to distinguish this standard from others, is a protocol standard that outlines the token issuance standards in the Ethereum network. ERC20; A digital asset that can be traded and sold like Ethereum, Litecoin, or Bitcoin is a token. However, the difference between ERC20 from cryptocurrencies is that it does not have a blockchain. Instead, it develops the Ethereum blockchain. ERC20 tokens can interoperate with software that supports them since they are created. |
| ERC-721 | ERC-721 (Ethereum Request for Comments 721), proposed by William Entriken, Dieter Shirley, Jacob Evans, Nastassia Sachs in January 2018, is an immutable token standard that implements an API for tokens in Smart Contracts. It provides functions such as transferring tokens from one account to another, retrieving the current token balance of an account, obtaining the owner of a particular token, as well as the total supply of the token available in the network. |
| Ether | Ether is another cryptocurrency that runs on top of the Ethereum blockchain technology. The primary purpose of Ether extends beyond offering a form of digital money; it also helps the Ethereum blockchain to work. |
| Ethereum | Ethereum technology enables the parties to make transactions by creating protocols without knowing each other physically or by exchanging documents with the smart contract system that it has made famous and developing the blockchain system. It provides users with the freedom to safely perform their transactions, without transaction costs, and by not implementing contracts outside the protocol. Thanks to Ethereum, countless middlemen transactions are carried out. Numerous transaction and payment protocols are carried out on Ethereum. |
| Encryption | Encryption is a method used to secure sensitive and private information such as passwords, credentials, credit card information. Simply put, encryption refers to applications aimed at creating encrypted text from plain text. Specific texts can be read and understood by third parties; on the other hand, encrypted texts are scripted texts that third parties cannot know once they manage to capture this piece of information. |
| Fraud (Scam) | Fraud is an act of deliberate deception to deprive another person of their rights and gain an illegal gain and, therefore, dishonest profit. There are various types of scams in the cryptocurrency world. Instant crypto transactions can be used as a tax evasion tool, money laundering, and bribery in portability and international reach. Pump and dump activity in which an investor or group of investors encourage other investors to buy a share they hold and sell after the share price rises is also a form of fraud. |
| Financial Inclusion | Financial inclusion is defined as the availability and equality of opportunities to access financial services. Financial inclusion means individuals and businesses have access to useful and affordable financial products and services - transactions, payments, savings, credit, and insurance - that are delivered responsibly and sustainably and meet their needs. It is the first step towards broader financial inclusiveness as it allows people to access the transaction account, store funds in the transaction account, and send and receive payments. |
| Flappening | Flappening is defined as Litecoin becoming more prominent, more critical, and more valuable than Bitcoin Cash (not Bitcoin). Flappening is a word that originated in a tweet posted by Charlie Lee, the founder of Litecoin, on February 25, 2018. |
| Flippening | The term Flippening first appeared in 2017 and referred to the possibility that the market capitalization of Ethereum (ETH) will surpass the market capitalization of Bitcoin (BTC). Therefore, the term describes the hypothetical moment in the future when Ethereum becomes the largest cryptocurrency in terms of market cap. |
| FOMO | Consisting of the initials of the English word "Fear Of Missing Out," FOMO means "fear of losing." FOMO is an emotional response that pushes us to trade or invest in a less disciplined way. FOMO is annoying because it occurs when we do the right thing. It doesn't arise from mistakes. It happens when the market does the unexpected, and we stick to a solid plan. Our fear of losing increases as the market continues to move unreasonably. The best way to deal with FOMO is to be aware that whatever you do can happen one way or another. Sometimes it is like the stock market to act in a way that makes us feel like we are screwed. |
| Fork | The condition that occurs when a currency is divided into separate copies for a development or error correction in the blockchain network to which it is connected is called a fork. Forking may occur due to the existing blockchain network not meeting the demands, users, or cryptocurrency developers deciding on various exchanges. For example, Ethereum is a bifurcation after a hacking; Bitcoin Cash emerged from a conflict between developers. |
| FGPA | Field Programmable Gate Arrays (FPGAs) are semiconductor devices based on a configurable matrix of logic blocks (CLBs) connected via programmable interconnects. FPGAs were used in cryptocurrency mining in the early 2010s before the more competitive ASICS hit the market. Compared to CPUs, FPGAs offer a higher hash rate on electricity consumption. |
| FUD | It consists of the initials of English words fear, uncertainty, and doubt. The emotions of cryptocurrency investors fluctuate from time to time, causing prices to rise or fall. The FUD is a psychology trick used to spread suspicion and fear about a cryptocurrency, which causes a particular coin's price to drop. Who does it benefit? Of course, people are emitting FUD! |
| FUDSter | It is the name given to the person who spreads fear, uncertainty, and anxiety in the market. |
| Full Node | A full node is defined as a computer on a network with a complete, up-to-date copy of the blockchain ledger and verifies the accuracy of transactions and new blocks. Node is defined as any computing device (computer, telephone) that maintains a network. Cryptocurrencies are supported by a network of computers, keeping a digital record of data known as a blockchain. It holds an exact copy of the blockchain program and receives, logs, verifies, and transmits transactions on the blockchain. This process is known as "mining." |
| First Mover Advantage | First mover advantage refers to an advantage gained by a company that offers a product or service for the first time. The first-mover advantage enables a company to build strong brand awareness and product/service loyalty ahead of other entrants. Because a firm is the first to move, it has a tremendous advantage to build brand recognition, market share, and consumer loyalty before other businesses and products eventually enter that space as competitors. As blockchain-based projects and cryptocurrency exchanges compete for a relatively limited market share and user base, this type of benefit is essential in the cryptocurrency industry. |
| Fiat Money | Fiat money does not derive its value from a physical product; it is the name of the legal money that receives the money from the state that issued it. Most countries today use paper-based fiat currencies that only serve as a form of payment. Most of the world's countries make their investments, the product or service they purchase, and the savings they make with little money. Unlike traditional commodity-based currencies (Gold, silver), fiat currency cannot be converted or redeemed. It isn't very worthy and used by government decree. For a fiat currency to survive, the government must protect it from fraud and manage the money supply responsibly. |
| Gas | Gas refers to the fee or pricing value required to successfully execute a transaction or execute a contract on the Ethereum blockchain platform. Gas, often priced as small fractions of the cryptocurrency Ether, often called Gwei or sometimes Nanoeth, is used to allocate the Ethereum virtual machine (EVM) to decentralize applications smart contracts can safely self-run. The network's miners determine the gas's exact price, and those miners may refuse to execute a transaction if the gas does not meet price thresholds. |
| Gas Limit | The gas limit refers to the maximum price a cryptocurrency investor is ready to pay when sending a transaction on the Ethereum blockchain or performing a smart contract function. These charges are calculated in gas units, and the gas limit defines the maximum value the marketing or operation can "charge" or receive from the user. |
| GWEI | Gwei refers to a minimal amount of Ethereum coin used to calculate transaction fees in Ethereum trading. An Ethereum coin is worth 1 billion (1,000,000,000) Gwei. |
| Halving | Halving is the process of halving the rewards per minted block to maintain the total supply of a cryptocurrency or token. Bitcoin's latest halving took place on May 11, 2020. |
| Hard Cap | A hard cap is defined as the maximum amount of money a cryptocurrency can receive from investors in its Initial Coin Offerings (ICO). An ICO is a limited-time process during which new cryptocurrencies make their public debut and sell them directly to people. People then invest their money in these cryptocurrencies, hoping that they will be more valuable than paid. A fixed limit is the leading financial goal and is always more significant than the small limit. |
| Hard Fork | A hard fork is creating a new chain with the same history as the original chain, but there are changes to the protocol that must be accepted by the entire network. A hard fork occurs when the nodes of a newer blockchain version do not receive the previous protocol. Adding a new rule to the code creates a hard fork. |
| Hash Function | A hash function takes a set of characters (called a key) and maps it to a value of a specified length (called a hash value or hash). The hash value is representative of the original string but typically smaller than the original. It is easier to find the shorter hash than the long series; it is hashed to index and find items in databases. Hashing is also used in encryption. This term is also known as hash algorithm or message digest function. |
| Hashgraph | Hashgraph is a distributed ledger that offers blockchain technology advantages without low transaction speed limitations. Hashgraph is a direct competitor of both allowed and disallowed blockchains such as Ethereum, Hyperledger Fabric, and R3 Corda. This distributed ledger technology runs on the asynchronous Byzantine Fault Tolerance (aBFT) consensus algorithm to protect the platform from attacks. |
| Hashing | Hashing is an encryption method that converts any data into a unique text string. You can hash any piece of data, regardless of size or type. In traditional hashing, the hash generated by any data is always the same length, still of the size, style, or length of the data. Hash is designed to act as a one-way function. You can embed the data into a hash algorithm and get a unique string, but if you come across a new hash, you won't be able to decipher the input data it represents. A unique piece of data will always generate the same hash. |
| HFT | High-Frequency Trading is an automated trading platform used by large investment banks, hedge funds, and institutional investors. It uses powerful computers to process large numbers of transactions at too high speeds. These high-frequency trading platforms give traders an advantage in the open market by allowing traders to execute millions of orders and scan multiple markets and exchanges in a matter of seconds. |
| HODL | The starting point of the word Hodl, which has been in use since 2013, is the word "Hold" in English. It means that you are sure that your investment will be valued in crypto money transactions. An investor who says he will do Hodl is the investor who will keep his crypto assets, thinking that he will not sell his assets no matter what in the market, and his assets will be valued. More specifically, the meaning of 'HODL Bitcoin' defines the investor's sentiment. When an investor is in a dilemma with their trade, and there is uncertainty about the future of their investment, it helps them to sit back and relax. |
| Hyperledger Fabric | Hyperledger is an open-source community focused on developing a set of stable frameworks, tools, and libraries for enterprise-class blockchain deployments. It is a modular, general-purpose framework that offers unique identity management and access control features. That makes it suitable for various market applications such as tracking and monitoring supply chains, investment financing, a loyalty program and rewards, and exchanging financial assets. Fabric networks are allowed, meaning that the identities of all participating members are known and verified. This benefit is particularly beneficial in healthcare, supply chain, banking, and insurance, where data cannot be exposed to unknown assets. |
| Hot Storage | Hot storage is where data that needs immediate access is stored. If the stored information is business-critical and you can't wait when you need it, this is the case for hot storage. To achieve the fast data access required for hot data storage, data is often stored in hybrid or tiered storage environments. |
| Hot Wallet | The hot wallet is used online through platforms that offer storage services. In hot wallets, the user entrusts their private and public keys to the platform, manages and protects both keys. It is not recommended to keep large amounts of cryptocurrencies in a hot wallet as the systems can be vulnerable to hacking. If you hope to host a small amount of cryptocurrency in an easy and convenient place, then the hot wallet will be the best option. |
| Immutability | An immutable object in computer science refers to the item whose state cannot be changed after it is created. To sum up, data on the blockchain cannot be changed. Each block of information, such as facts or transaction details, proceeds using a cryptographic principle or a hash value. |
| IEO | IEO is a new form of crowdfunding for blockchain startups and stands for Initial Exchange Offering. IEOs are on the rise, and this demand decreases the demand for ICOs. Today's largest exchanges manage first Exchange Offers. Generally, an IEO is similar to an ICO; that is, you can buy a certain number of tokens for a fixed price in IEOs, and there is a maximum limit. |
| IPO (Initial Public Offering) | Initial public offering (IPO) refers to the process of a public offering of the shares of a private company. A public share offering allows a company to raise capital from public investors. A private company's transition to a public company is an essential case for private investors to gain from their investments. It typically provides share premiums for existing private investors. Public offerings provide companies with the opportunity to raise capital by offering shares through the primary market. IPO can be seen as an exit strategy for the company's founders and initial investors, through which they can make full profits from their private investment. |
| ICO | It stands for Initial Coin Offering in English and the First Money Offer in Turkish; ICO is a concept that entered our lives with the emergence of Ethereum. In the ICO, you invest in a currency that has not yet become a digital currency. Your future gain or loss will be determined concerning the direction the money will take in the future. ICO trades are carried out with Bitcoin and altcoins. It has made a significant contribution to the development of cryptocurrencies that have been produced since the day it emerged. One of the essential advantages of ICOs is that they provide Dapp (Decentralized application) developers with the funds they need. |
| Incubator | Incubator is a standard program designed to help startups succeed. Incubators; The workspace helps entrepreneurs solve some of the problems typically associated with a startup by providing seed funding, mentoring, and training (see the list below for a more comprehensive list of joint incubation services). The sole purpose of a startup incubator is to help startups grow their businesses. Starter incubators are generally non-profit organizations managed by both public and private organizations. |
| Know Your Customer | The process of knowing your customer, called "Know Your Customer" in English, is what businesses do to verify their customers' identity when they start doing business with them. The term KYC likewise refers to regulated bank applications used to authenticate customers. Banks and companies of all sizes are great supporters of the customer recognition process. It is increasingly common for banking institutions, loan companies, and insurance agents to request detailed information from their customers to avoid illegal situations such as customer-induced corruption, bribery, or money laundering. |
| Lightweight Node | The lightweight node (sometimes called a partial node, light node, or thin node) differs from full nodes with one simple but important distinction. Light nodes do not need to store the entire blockchain. Light nodes only need to keep a tiny part of the blockchain. That allows them to use much fewer resources and contribute to the network. Lightweight nodes verify transactions using a method called Simplified Payment Verification, abbreviated as SPV. SPV allows a node to confirm whether a trade is included in a block without downloading the entire blockchain. |
| Lightning Network | It is an independent payment protocol added to the Lightning Network blockchain network and can be used in all cryptocurrencies. Among the Lightning Network's establishment purposes, it can be shown to reduce the density in the blockchain network and increase the capacity of the transactions. This density decreases by working outside the blockchain network. Since the blockchain is outside the network, the transactions' approval is not passed by the miners. Since the miners do not approve the transactions, no payment will be made. In this way, transactions are completed more thoroughly, and these transactions performed within a channel created later are recorded in the blockchain network. One of the Lightning Network's most significant advantages is that transfers with approval processes of up to 30 minutes can be made almost instantaneously thanks to the Lightning Network. |
| Litecoin | Developed in 2011 by Charlie Lee, a former Google employee, Litecoin is a decentralized, open-source, peer-to-peer cryptocurrency. These features offer its users the opportunity to make transactions and transfers at almost zero cost. Litecoin, which provides more storage space than other cryptocurrencies, is known as the first Altcoin. Litecoin, which enables faster block generation compared to the Bitcoin blockchain, allows for much easier mining operations with its different algorithms. Litecoin is a powerful alternative to Bitcoin due to its liquidity and transaction volume. |
| Money Laundering | Money laundering is the process of showing the source of money obtained from illegal income as legitimate income. Since revenues from unlawful activities are generally cash, illicit gains cannot be used freely and quickly. For this reason, criminals aim to prevent their crimes from being detected by hiding their criminal elements through money laundering activities. Money laundering is a dangerous crime. If caught, large fines and prison sentences are imposed on those who launder money. |
| Miner | All of the mathematical verification processes performed using computers with superior hardware and software for crypto money production and transfer in the blockchain network are mining. People who perform these operations are called miners. The miner transacts through a node that collects transactions on the web and organizes them in blocks. Once transactions are made, all network nodes receive the blocks and verify their validity. Next, the miner nodes collect these transactions from the repository and begin combining them into a block (candidate block). |
| Masternode | Masternode, in its shortest definition, are servers that keep a full copy of the blockchain in real-time and work continuously. There are three nodes in the blockchain network: Ordinary node, full node, and masternode. All nodes have unique functions. Masternodes work more effectively than other nodes. Masternodes also play an essential role in facilitating transaction confidentiality and instant transactions. Masternodes are servers running on decentralized networks, and each blockchain has its masternodes. If we look at it from the opposite side, each blockchain network also approaches masternodes differently. |
| MEW | MyEtherWallet, abbreviated MEW, is a free, open-source user interface focused on the Ethereum platform. When it comes to sending, storing, and receiving Ether (ETH) tokens and other digital assets published on the Ethereum platform, MEW offers an easy-to-use and flexible solution for viewing and managing your ERC-20 tokens. MEW supports many different wallets, including hardware wallets such as Ledger Nano S or Trezor, and third-party wallets such as MetaMask. It allows anyone with a MEW, ETH, or ERC20 token asset to make transactions at no additional cost. |
| Minimum Valid Product (MVP) | The minimum valid product is the activity that allows an organization or individual to collect the maximum amount of verified information about their potential customers with minimal effort. MVP is a well-featured tool to attract early-mover customers and validate a product idea early in the product development cycle. In addition to allowing your company to validate a vision for the product before building the entire product from scratch, MVP can also help minimize the time and resources you can devote to creating a product that will fail. |
| Mining | It is the name given to all of the mathematical verification processes using computers with superior hardware and software for cryptocurrency production and transfer in the blockchain network. Hardware with very advanced mining software to mine cryptocurrency; You must-have tools to cool this equipment, and infrastructure to meet the electricity consumed by these devices, and a continuous and high-speed internet network. Nowadays, it is impossible to do cryptocurrency mining from your personal computers. There are many types of cryptocurrency mining today. These are divided into classes such as ASIC, GPU, CPU, Cloud mining. Mining is a process included in the blockchain, where peer-to-peer mathematical verification processes are performed and allow new coins to participate in the circulating supply. |
| Mining Rig | The mining rig is a computer system used for Bitcoin mining. The tool may be proprietary mining software specially procured, created and operated for mining, or used as a premium gaming computer and meets other needs; it could be a computer used for mining part-time. |
| Mobile Payment | Mobile payment is a payment made for a product or service through a portable electronic device such as a tablet or mobile phone. Many banks have recently added technology to their banking applications that allow customers to instantly send money to friends and family members directly from their bank accounts. Mobile payments can also be made in markets and many stores by scanning barcodes from your phone application. |
| Mooning | Like many other specialties, the finance and cryptocurrency ecosystem has created countless terms and jargon. It refers to the upward movement of a cryptocurrency whose price is rising rapidly and sharply. Crypto money investors say such a move with the phrase "going to the moon" for crypto money. It means the price is flying like a rocket. |
| Multichain | Multichain technology is a platform that helps private blockchain development companies set up some proprietary blockchains that can be used by financial transaction firms. Multichain offers us a simple API and a command-line interface. That helps to protect and install the chain. It provides a well-chosen set of features and enhancements aimed at medium and large users. Its support for local entities and the storage of larger amounts of on-demand data looks promising. An optional but unique approach has been adopted for consortium blockchains with consensus-based consent management. |
| Multisignature | Standard transactions in cryptocurrency networks are called single-signature transactions, as they only require one digital signature to transfer funds. However, cryptocurrencies like Bitcoin can support multi-signature (also known as multi-signature or multi-sig) technology. Multi-signature is the requirement that transactions have two or more signatures before they can be executed. Multi-signature technology has a significant advantage in providing additional security to cryptocurrency transactions. That is done by eliminating single error points by enabling the keys that might be required for a multi-signature cryptocurrency address to be generated and stored on separate devices. |
| Market Value | Market value is the company's total valuation based on the current share price and the total number of shares outstanding. It is calculated by multiplying the company's stock's current market price by the entire outstanding stock of the company. In the blockchain industry, the term market cap refers to a metric that measures the relative size. It is calculated by multiplying the current market price of a particular cryptocurrency or token by the total number of tokens in circulation. |
| NFT (non-fungible token) | Non-fungible tokens are, to summarize, unique digital assets. The non-fungible tokens contain identifying information stored in the so-called Non-Fungible Tokens smart contracts. This information makes every NFT different, and therefore, they cannot be directly exchanged for another token. Since no two are alike, they cannot be changed. Banknotes, on the contrary, can easily be exchanged for each other; if they have the same value, there is no difference between the receiver and the transmitter. |
| Node | Any device connected to the blockchain can be called a node, and examples are servers, computers, laptops, online or desktop wallets, and mobile phones. All nodes are somehow connected to the blockchain and continuously update each other with the latest information added to the blockchain. Nodes are a critical component of the blockchain infrastructure. They serve as further validation for the ledger and allow anyone to transparently view transactions or data that are executed, held, or held on the network. The main benefits of nodes are to ensure that the data stored on the blockchain is valid, secure, and accessible to authorized parties. |
| Nonce | Nonce (Number used once), the English abbreviation for "number used once," is a random number that can be used only once. Nonces are often used in authentication protocols and cryptographic hash functions. In the context of blockchain technology, nonce refers to a so-called random number used as a counter in the mining process. |
| Open API | Open API, also called public API, is an application programming interface that is open to software developers. Available APIs are posted on the internet and shared freely, allowing the owner of a network-accessible service to grant universal access to consumers. Open APIs can be designed in various ways. The open API architecture's main priority is that the API itself can be easily consumed and accessed by as many different clients as possible. As a result, it is most logical to use open source technology and community-oriented standards, while using proprietary protocols or proprietary data formats is not recommended. |
| Open Source | In simple terms, open-source software is software whose source code is published and made available to the public, allowing anyone to copy, modify, and redistribute the source code at no charge. Open source code can be developed through community collaboration. These communities are made up of individual programmers as well as large companies. |
| Off-Chain | Off-Chain transaction agreements take place outside of the blockchain. This protocol used for Off-Chain transactions is similar to that used in payment platforms such as PayPal. The parties involved in the transaction can choose to agree on the blockchain. The next step may also involve a third party whose task is to confirm that the transaction has been completed and that the agreement has been followed. That makes the third party a kind of guarantor in the transaction. |
| On-Chain | On-Chain transactions are a type of transaction we call blockchain transactions. It is the most popular of the Off-Chain and On-Chain transaction types and requires a general update of the blockchain network. For an On-Chain transaction to complete, there must be as many confirmations agreed by the miners. The time taken to complete a transaction on the chain varies according to the network congestion. Therefore, if many transactions need to be confirmed, sometimes transactions are delayed. |
| Proof of Identity | The name given to a document issued by the government identifies a person. Proof of identity can be a driver's license, birth certificate, or passport. |
| Peer-to-Peer Networks | It is generally defined as a group of devices that connect to form a network known as a peer to peer network (Peer to Peer, abbreviated name P2P). The network can also be used to share and store files after they are created. In any peer-to-peer network, all nodes usually have equal power and can use the same tasks. The definition of the P2P network varies according to the industry in which it is used. When it comes to the financial sector or technology, a P2P network can mean a distributed network where peers can exchange digital assets or cryptocurrencies. |
| Public Key | A public key is generated in public-key encryption cryptography using asymmetric key encryption algorithms. Public keys are used to transform a message into an unreadable form. Decryption is accomplished using a different, but matching, private key. Public and private keys are checked to ensure secure communication. Public key encryption uses encryption algorithms to protect identities and data from unauthorized access or use; It protects against attacks from cybercriminals and other malicious actors. |
| Paper Wallet | A paper wallet is a piece of paper in which a private key is written. The paper wallet can contain a private key and can be used as a currency exchange or gift, similar to exchanging paper money with each other. The paper wallet can be used as a physical form of Bitcoin. You can generate a private key on a piece of paper with the amount of Bitcoin that corresponds to the amount contained in the private key. It can be useful for people who do not have access to a Bitcoin wallet or do not know how cryptocurrencies work. |
| Proof of Identity | It is the name given to a document issued by the government that determines a person's identity. Proof of identity can be a driver's license, birth certificate, or passport. |
| Payment Gateway | A payment gateway is a merchant service that processes credit card payments for e-commerce sites and traditional stores. Payment gateways are essential for helping business owners accept online payments and manage cash flows. It is a payment gateway that keeps the payment ecosystem running smoothly, as it provides online payments for consumers and businesses. The payment gateway focuses on securing sensitive information provided by the user throughout the payment process. It provides security by encrypting data such as card and bank information supplied by the user. |
| Payment Services Directive 2 (PSD2) | The renewed Payment Services Directive 2 (PSD2) aims to adapt better payment arrangements to the market and technology's current state. It sets out security requirements for initiating and processing electronic payments and protecting consumers' financial data. It also recognizes and regulates Third Party Providers (TPPs) to access or aggregate accounts and launch payment services. This regulation encourages more competition, transparency, and innovation in payment services. |
| Payment Service Providers | Payment service providers, also known as merchant service providers or PSPs, are third parties that help merchants accept payments. Simply put, payment service providers allow businesses to connect to the broader financial world and accept credit card/debit card payments (wire transfer, real-time wire transfer, etc.). Providing both a business account and a payment gateway enables businesses to collect and manage their payments efficiently. |
| Private Key | The private key is used to both encrypt and decrypt data. This key is shared between the sender and receiver of encrypted sensitive information. The private key is also called symmetric, common to both parties. Private key encryption is faster than the public key encryption mechanism. |
| Private Sale | Private selling is a sales process in which tokens or cryptocurrencies are sold to a designated group of investors rather than publicly traded. Personal selling is a way to connect companies with investors in a more intimate, less structured environment. That is a way to raise funds specifically for blockchain projects and a way to recruit influential players with the ideas and concepts that businesses are based on and essentially create the best for a concept in a sale. Proof of Address: An official document from a government agency, bank, driver's license, utility company, mobile phone provider, or an individual you can provide as proof of your residence at a specific address. |
| PIN | PIN is a personal identification number. It is a set of unique numbers used to prove your identity. PINs are usually allocated to bank customers for use in automatic cash dispensers. They are also sometimes used with a security token for individual access to computer networks or other secure systems. |
| POC (Proof of Concept) | Proof of Concept (POC) is an exercise to test the design idea or assumption. The primary purpose of developing proof of concept is to demonstrate functionality and validate a particular image or theory obtained during development. Adequate proof of concept proves that the goal of a proposed project is feasible and will be successful. The value of the proof of concept is that it can help a project manager identify gaps in processes that could interfere with success. |
| POS (Proof of stake) | The proof of stake (PoS) concept states that a person can issue or verify block transactions based on the number of tokens he has. That means that the more Bitcoin or Altcoin a miner has, the more mining power he has. With the proof of stake (POS), Bitcoin miners can extract or verify block transactions depending on the amount of Bitcoin a miner has. Proof of stake (POS) was created as an alternative to the original consensus algorithm in blockchain technology, proof of work (POW), used to confirm transactions and add new blocks to the chain. |
| PoW (Proof of Work) | Proof of work is a piece of data that is difficult to produce (costly, time-consuming) but easy for others to verify and meets specific requirements. Proof-of-work or PoW is the original consensus algorithm in a blockchain network. In the blockchain, this algorithm is used to confirm transactions and generate new blocks to the chain. With PoW, miners compete with each other to complete transactions on the network and are rewarded. Proof-of-work also defines a system that is not trivial but requires a possible amount of effort to deter meaningless or malicious uses of computing power, such as sending unsolicited emails or initiating denial of service attacks. |
| Premine (Pre-mining) | Premine is the name given to the state of new cryptocurrencies where the maximum supply is created before they are made public. It means that the crypto money will not be mined again after it comes into existence. Pre-mining usually happens when the developer has to pay for certain features during development or during the Initial Coin Offerings (ICO), where cryptocurrencies purchased on pre-sale are mined as part of the formation block. These cryptocurrencies greatly benefit developers and those in the early stages of development (i.e., ICO investors and token holders). |
| Pump and Dump | Pump and Dump is an illegal activity in which an investor or group of investors encourages other investors to buy a share they hold and sell after the share price rises. Pump and Dump is the act of trying to increase the price of a claim with suggestions based on false, misleading, or vastly exaggerated statements. |
| Proof of Burn | The Proof of Burn algorithm is similar to the Proof of Work algorithm but has lower energy consumption rates. The block validation process of Burn Proof-based networks does not require the consumption of powerful computational resources and is not dependent on powerful mining hardware (such as ASICs). Instead, cryptocurrencies are deliberately burned into the blockchain to "invest" resources, so prospective miners do not have to invest in physical resources. In Proof-of-Burn-based systems, miners invest in virtual mining equipment (or virtual mining power). |
| Regulatory Sandbox | A regulatory sandbox is a regulatory approach that allows live, time-dependent testing of innovations under a regulator's supervision, often summarized and published in writing. New financial products, technologies, and business models can be tested under a set of rules, regulatory requirements, and appropriate safeguards. Regulatory sandbox lowers the cost of innovation, reduces initial barriers, and allows regulators to gather essential insights before deciding whether further regulatory action is required. |
| Race Attack | A race attack is a type of double-spend attack that exploits information asymmetries: the attacker (payer) makes a transaction to the victim (buyer) and the network. If the victim sees the unapproved transaction first, likely, the victim will never be paid before the network rejects the transaction as double spend. |
| Raiden Network | Raiden Network is an off-chain scaling solution for performing ERC20 compliant token transfers on the Ethereum blockchain. It is the Ethereum version of Bitcoin's Lightning Network and provides almost instant, low-cost, scalable, and privacy-protecting payments. The Raiden Network allows secure token transfer between participants without the need for global consensus. That is achieved using digitally signed, and hash locked transfers called proof of balance and fully collateralized with pre-established on-chain deposits. |
| RegTech | Regulatory technology, commonly known as RegTech, is a popular word in global finance and compliance. RegTech refers to any technology that enables companies to comply with their regulatory requirements. RegTech grew in popularity after the European Parliament's MiFID II legislation was introduced in January 2018. |
| Return on investment (ROI) | Return on investment is a financial rate used to calculate the benefit an investor will receive concerning the investment cost. It is usually measured as net income divided by the original price of capital of the investment. The higher the ratio, the greater the benefit gained. The ROI metric is often used because it is effortless to calculate. ROI is a universally understood concept, so if you use the metric in conversation, it is almost sure that people will know what you are talking about. |
| Smart Contract | The contracts in the market and the predetermined rules are automatically processed by the agreement of both parties within these rules are called "Smart Contract" or "Smart Contract." The laws of these contracts work on the blockchain network, and these rules are determined by computer codes and copied and applied by all other network nodes. The purpose of these contracts is to create an environment where the parties can make commitments on the blockchain network without knowing each other and without having to trust. Smart contracts cannot be changed. Smart contracts are transparent as all records run on an open blockchain. |
| Status Channel | The status channel is defined as a more affordable, private, and efficient place for interactions to occur and then be recorded in the blockchain. Traditional cryptocurrency transactions are recorded on the blockchain, a digital registry maintained by the network with thousands of users. Blockchain allows users to do business directly; It enables them to avoid working with a third party such as the government and bank. Here "state" is defined as the state of something at a specific time. The "channel" is where communication takes place. |
| Soft Limit | The ICO's soft limit is the minimum amount a project can be financed to be considered successful. This metric is set by the project's developers and is essentially the team's method of determining the minimum amount of money required for the project to continue. Usually, if the soft limit is not met, the group returns all purchases, and the project fails. At other times, the project can continue no matter how increased it may be, even if it is below the elastic limit. |
| Service Tokens | Service Tokens are the most popular type of token and provide users with future access to its products or services. Service Tokens are not intended to be investment tools, and investors are prevented from participating in IPO sales if their primary goal is to generate profits. A company may decide to issue service tokens and sell digital coupons for the product or service it is developing. |
| Securities Tokens | Securities tokens function as investment contracts where the buyer expects future profits from dividends, income share, or market value. Securities tokens provide participants with a more transparent investment experience. Startups offering securities tokens offer investors a wealth of legally required information such as the company's status, financial statements, business purposes, and management. It has all the valuable data you need to be sure of before making any investment. |
| SAFT | Simple Contract for Future Tokens (SAFT) is a type of investment contract that asks investors to fund a cryptocurrency network's progress in exchange for discounted tokens at a future date. SAFT is classified as a security. Until the tokens are created and released, investors invest their money in an initiative based on the expectation. So these tokens will be sold at a higher price after the project is further developed. Software teams widely use SAFT as a way to stay in international regulatory standards when selling tokens. |
| Sell Wall | The term sell wall refers to a substantial limit sell order or the accumulation of sell orders at a single price level in an order book. Usually, it is a negative indicator for a cryptocurrency. The sell wall means that investors are planning to get rid of large amounts of cryptocurrency. When this happens, investors will sell their assets for the best available offer, which can be relatively low. In this case, the sell wall occurs when there are large sell order blocks for a coin set at a specific price. |
| SegWit | SegWit, whose full form is Segregated Witness and its Turkish is "Separated Witness," is an upgrade protocol designed to increase the block capacity that became active in the Bitcoin network in 2017. There are three essential elements identified as Sender, Receiver, and Signature (also called Witness). These three elements make up the bulk of the processing width. SegWit has doubled the capacity of the Bitcoin network. It does this by adding a parameter that limits the block size to 4 million weight units, allowing blocks larger than 1 MB without hard bifurcation. SegWit also solved a critical problem in the Bitcoin protocol enabling users to change their transaction ID. Before SegWit, the transaction's ID could be changed by changing the unlock code of the transaction. SegWit moves the signature to the end of the transaction data, making it impossible to change the transaction ID. |
| Sharding | Sharding is a fundamental concept that helps the system keep data in different sources according to the shredding process. The word "shard" means "a small part of a whole." Hence Shredding means breaking up a larger piece into smaller pieces. Sharding is a blockchain technology that aims to provide scalability within a blockchain network. The fragmentation process seeks to divide a blockchain network into separate parts containing their data separately from other components. |
| Shilling | It is the name given to the act of an individual or institution promoting a cryptocurrency aggressively and intensely. Usually, the first stage of the pump and dump scam is called this term. |
| Shitcoin | It is the name given to crypto money to have no value. A non-Bitcoin cryptocurrency, a non-new and inferior cryptocurrency, and a cryptocurrency that becomes devalued after it is produced can also be referred to term. |
| Soft Fork | Soft fork refers to protocol adaptation to conditions in a particular blockchain or crypto. An example would be a fine-tuning of the details regarding the blocks' size or a small change in the transaction properties. The majority of network participants should favor such a difference to make the soft fork. Soft and hard forks are the same - after changing the existing cryptographic platform code, the old version (e.g., Bitcoin) remains on the network while creating a new version (e.g., Bitcoin cash). In the case of a soft fork, the fork has only one blockchain (i.e., the entire network is updated), while the hard fork duplicates the old blockchain and creates a new one - then two networks emerge. |
| Spoofing | Spoofing, where a person or something impersonates the sender's information and acts as a legitimate source, business, colleague, or other trusted person to gain access to personal information, obtain money, spread malware, or steal data it is a type of cybercriminal activity. |
| Spread | Spread is the difference between the bid and asks prices offered for a cryptocurrency. Like many financial markets, you are presented with two costs when you open a position in a cryptocurrency market. If you want to open a long position, you trade at the buy price, which is slightly above the market price. If you're going to open a short position, you trade at the selling price; that is, slightly below the market price. |
| Stablecoins | Stablecoins, also known as Stabilcoins, are cryptocurrencies that offer a stable price and are backed by an alternative reserve asset (such as fiat, precious metal, commodity). Cryptocurrencies such as Bitcoin and Ethereum exhibit a more volatile appearance when evaluated in terms of volatility than fiat currencies. Stabilcoins differ from cryptocurrencies such as Bitcoin and Ethereum to maintain price stability. Stabilcoins are fixed on the price of a currency such as the US dollar or a precious metal such as Gold. It captures these fixings by trading assets or derivatives of algorithmic mechanisms through collateral. |
| Staking | Earning cryptocurrency is no longer just about Bitcoin mining (BTC). Bitcoin is a proof-of-work (PoW) blockchain generated through an energy-intensive process to solve mathematical tasks known as "mining." Many new blockchains instead use Proof-of-Stake (PoS) algorithms, which require significantly less energy. The correctness of transactions on PoS blockchains is confirmed by those who lock a certain amount of cryptocurrency in the protocol. This process, called "staking," allows cryptocurrency holders to earn a staking reward for their network participation. |
| Startup Accelerator | Startup accelerator or seed accelerator is a business and service model that helps establish new businesses and help established companies meet some startup funding that their founders cannot provide themselves. The startup accelerator business model focuses on growth-oriented startups in its infancy and aims to achieve a good return on investment in a relatively short time. These initiative supporters are not limited to financial support and support such as consultancy and training, and help them build broader business networks in different markets. |
| STO (Security Token Offering) | Security Token Offering is a public offering of a tokenized security. The token owner obtains contractual claims regarding rights or assets in a company as committed by the securities. In contrast, an ICO is not usually backed up with assets but mostly involves the issuance of a cryptocurrency or a utility token. With a cryptocurrency token, the token can be used as a payment instrument. A service token gives its owner the right to purchase goods or services from a company. However, the common point of both is that assets do not secure them. However, with Security Token Offering, there is a right to share purchase and has a stricter legal framework. |
| Sidechain | A sidechain is a separate blockchain connected to the main blockchain using a two-way peg. The two-way fixation ensures that assets are exchangeable between the main blockchain and the sidechain at a predetermined rate. The opposite happens when returning from a side chain to the main chain. In simpler terms, sidechains allow nodes in a blockchain safely used in a separate blockchain and moved back to the original blockchain. |
| Software Wallet | Any software-based wallet is a software wallet. Creating a software wallet means you have already obtained an address that represents your "ID." You can use your address to buy crypto money. As the name suggests, software wallets are based on computer software and are available in three formats: desktop, mobile, and online. |
| Trading Bot | A trading bot or trading bot is software that looks for opportunities in the market and uses them to profit. Crypto trading bots require trust. The bot will have control over some parts of your trading account, so you should make sure that the account you use is legit and proven to be secure. |
| Transaction Fee | Transaction Fees are a type of fee that the customer must pay when completing an electronic payment. Transaction Fees may vary between services. On average, the price is calculated as a proportion of the number of transfers made. It is an additional payment for the purchases that the seller has already made. |
| Transactions Per Second | Transactions Per Second (TPS) is a measurement of computer software and hardware representing the number of transactions completed in one second by an information system. An information system that manipulates transactional data must have a reliable measure to measure and quantify performance. The transaction per the second metric is used to calculate systems that perform routine operations and record keeping. |
| Tangle | Tangle is a Distributed Ledger Technology that requires the user to confirm the previous two transactions if they want to make a new transaction. By doing this, the initiator of a new transaction indirectly verifies that a subsection of the Tangle is valid and complies with the protocol rules; hence it represents Tangle's proof of work. Therefore, Tangle combines the trading process with a consensus mechanism. |
| Token | Tokens are a unit of value that can be transferred digitally in the blockchain ecosystem. There are three types of tokens in the blockchain ecosystem: service token, security token, and stock token. While service tokens provide access to digital assets, securities and stock tokens can represent real-life physical assets. Ethereum blockchain is generally used when creating tokens. Depending on the type of token, ERC20 or ERC721 standards may be preferred. The first thing we need to clarify is that tokens do not exist physically or in code. There is no real-world version of a token. |
| Token Basket | Token cart is a composite collection of tokens created using the Ethereum smart contract; Token baskets allow investing in various digital assets rather than investing in each of these assets separately. |
| Token Agreement | A token contract is a smart contract that contains a map of account addresses and balances. The balance represents a value defined by the contract creator. The token contract can use ratios to represent physical objects, another monetary value, and the owner's third reputation. |
| Tokenization | Tokenization is the process of converting a meaningful piece of data, such as an account number, into a random string of characters called a symbol. It has no significant value when breached. Tokens serve as a reference to the original data but cannot be used to estimate these values. Unlike encryption, Tokenization does not use a mathematical process to convert sensitive information to tokens. No key or algorithm can be used to derive original data for a token. Instead, it uses a token vault database, which stores the relationship between the sensitive value and the token. The real data in the vault is then secured, usually through encryption. |
| Total Supply | The aggregate supply is the amount of cryptocurrency currently produced, issued, or issued. The total supply includes pre-issued, locked, and failed cryptocurrencies. However, it does not cover burnt coins. As a rule, the total supply of a cryptocurrency can be higher than or equal to the circulating cryptocurrency. It should also be noted that the total supply is not the same as the maximum supply of a cryptocurrency. The total supply does not reflect the number of cryptocurrencies that will be created in the future. |
| Turing Complete | Turing complete is a term attributed to a system that can recognize or make decisions about certain other data processing rule sets (those used by Turing Machines). Turing complete is a tag used to express the strength of such a data manipulation rule set. The majority of modern programming languages are Turing complete. |
| Unbanked | "Unbanked" is an informal term for adults who do not use banks or banking institutions in any way. Unbanked people usually make cash payments or purchase wire transfers or prepaid debit cards. People who do not have a bank account also typically do not have insurance, pension, or other professional services related to money. |
| Underbanked | The term Underbanked refers to individuals who have a bank account but often prefer alternative financial methods such as money transfers and check cashing services to traditional loans and credit cards to manage their financial accounts and fund purchases. They do not have access to cheap, affordable banking services, or they need or prefer to use alternatives to traditional financial services. |
| Whale (Whale) | People who have many assets in the cryptocurrency markets are called whales. Whales are potent investors. An individual is considered a whale when it is powerful enough to change a cryptocurrency value by a considerable amount. If you see an extreme and sudden bounce on your cryptocurrency's chart, it is almost sure that one or more whales affecting the chart are acting together. |
| Whitelist | The term whitelist refers to a list of permitted and identified individuals, institutions, computer programs, and even cryptocurrency addresses. Generally, whitelists relate to a particular service, event, or piece of information. Therefore, whitelists may offer different meanings depending on the context in which they are used. |
| Weak Hand | Weak hand is a term used to describe investors who sell their assets during an adverse market movement. In cryptocurrency markets, the "weak hand" is often used with a negative connotation that defines inexperienced and emotional investors' behavior. When the market shows any downward trend or bad news, they tend to exit the position and often sell their assets at a loss. Such individuals do not believe that their investments can grow in the long term and can easily be "shaken" by widespread price fluctuations. |
| Wash Trading | Wash Trading - also called round trip trading - is an illegal practice where investors buy and sell the same financial instruments simultaneously to manipulate the market. This action can unnaturally increase the transaction volume to make security appear more attractive than it is. It can also be wash traded to provide brokers with commission fees to compensate securities they cannot pay directly. |
| Wei | Wei refers to the smallest value of ether, the cryptocurrency used in the Ethereum network. 1 Ether = 1'000'000'000'000'000'000 Wei |
| White Paper | White Paper is a document that outlines the problem a project wants to solve, its solution, and a detailed description of its product, its architecture, and its interactions with users. In the crypto world, White Paper usually refers to the document published by companies before their ICO or STO, informing the reader about the purpose of the ICO or STO and the technology behind it. |
| 2FA (two-factor authentication, TFA, two-step verification) | 2FA is an extra security measure used to ensure people trying to access an online account are who they say they are. In the first step, the user enters their username and password. Then, instead of logging in right away, you'll be asked for a second piece of information. In this second step, one of the security steps such as answering a confidential question from the user, having it confirmed via SMS or a fingerprint, voice recognition system is used. |
| 51% attack (51 percent attack) | A 51% attack on a blockchain refers to a miner or group of miners trying to control more than 50% of a network's mining power, computing power, or hash rate. People with this range of mining power may also have the ability to prevent new transactions from being made or approved. 51% attacks on the Bitcoin blockchain are rare because an attacker needs a processor or hashing power equal to millions of miners worldwide. |
