Cryptocurrency Terms to Know Before You Invest
Here is a quick guide to cryptocurrency terms. We define technical terms, slang, acronyms, and other jargon related to cryptocurrency.
The pseudonym of the original creator(s) of Bitcoin. Also the smallest sub-unit Bitcoin can be divided into: 1 Satoshi = 1/100,000,000 of a Bitcoin.
A measure of how easily a cryptocurrency will be able to handle more users and increased transactions.
An alt coin that is marketed as technology with potential, but is really just sold to make money with no promise of a future use case.
Segregated Witnesses. A protocol implemented by Bitcoin to increase transaction speed. SegWit allows more transactions to be written into a single block on a block chain.
The process by which a full database is split into smaller databases called shards. Sharding helps with the scalability of cryptocurrencies.
Typically a person posing as a legitimate user of a product but who is, in fact, being paid or otherwise compensated to promote said product.
A derogatory term used to describe altcoins that are based on faulty technology or have little promise for the future.
A mathematical mechanism for combining a public address with a private address to ensure authenticity and prevent forging.
A feature of the ARK cryptocurrency which allows separate block chains to connect with each other and communicate.
Price-stable cryptocurrencies that achieve stability through pegging their value to another asset, like the US dollar.
SMART MEDIA TOKEN
A digital asset on the Steem block chain that can be launched by any user for the purpose of monetizing online content and encouraging positive user participation.
Any cryptocurrency pegged to a stable asset for the purpose of reducing price volatility.
An individual that volunteers to lock some of their coins or tokens up to verify transactions on a block chain in exchange for staking rewards.
The act of locking up one's coins or tokens to help verify transactions for cryptocurrencies with Proof of Stake consensus mechanisms. Stakers earn staking rewards for providing this service.
An alternative to mining rewards. Staking rewards are earned by putting a certain amount of your cryptocurrency up as a 'stake' to confirm transactions. Rewards are given for doing this.