Dictionary

Address

Unique chain of characters that defines the location where the cryptocurrency is located, for example: “18D5McBidWUrNDmOp3V7SaTjadsbzpVRodD”. The address can also be understood as a combination of account number and variable symbol at the same time. Some wallets create a new address for each incoming payment to distinguish individual payments. Payments are sent to this address, so called the public key.

Altcoin

Any cryptocurrency except Bitcoin.

Blockchain

The system on which cryptocurrency runs. It is sometimes called the “accounting system” because it records and stores absolutely all transactions that have taken place in this network. The system works decentrally on millions of computers around the world. Therefore, it can not be turned off centrally. Data transfers are cryptographically protected, all data in it are visible.

Blockchain is not used only by Bitcoin, butmanyl other cryptocurrencies.

Block

It’s like a page in an accounting book. Transaction data are recorded in it in a non-removable way. Forever.

Coin

The same as cryptocurrency (see below). Sometimes it is a single unit of cryptocurrency.

Cryptocurrency

A digital currency in which cryptographic  techniques are used to control the amount of currency units and to verify the funds transfer. Bitcoin was the first cryptocurrency, today there is a lot over two thousand.

ICO

Initial Coin Offering is similar to IPO for shares. Someone starts to raise money for a business development – they issue new tokens and sell to investors. Participation in an ICO may be even more profitable than investment in cryptogcurrency, but there is also a bigger risk. In the Czech Republic, ICO, for example, was made by Cryptelo Company, which issued the cryptocurrency CRL.

FIAT

It’s not an Italian car factory :-), but it is any standard currency (CZK, USD, EUR …)

Fork, Hard-fork

Splitting a blockchain usually into two. E.g. Bitcoin was split during the fork, the original Bitcoin remained and a new Bitcoin Gold was created. There is a heavy fork and a soft fork depending on how they handle the operations before the fork.

Greatest Cryptocurrencies

Bitcoin (BTC), Ethereum (ETC), Ripple (XRP), Bitcoin Cash (BCH), Cardano (ADA), Litecoin (LTC), IOTA (MIOTA) and EOS (EOS). Each has a market capitalization of over $1 billion USD.

Hash

Hash or hash function is an algorithm that transfers data into a relatively small number. It is used, for example, to quickly compare data or tables.

Hawaii

Hawaii archipelago in the Pacific Ocean. State of the USA, capital of Honolulu. A place where each crypto investor gets sooner or later 😊.

HODL

A popular bizarre expression in the cryptosphere. One of the concepts of trading is called HOLD, i.e. to hold, not to sell. Some crypto trader had once transcribed and wrote HODL instead. The CryptoCommunity was so pleased that it became one of the popular messages.

Mining

In order for a cryptographic transaction to take place, one has to verify it. Verifiers are called miners because they are rewarded for their work so that a certain number of new Bitcoins or altcoins are allocated (“earned”) for a certain number of verifications.

Mining machine

Generally it is a modified powerful graphics card. Usually ASIC (Application-Specific Integrated Circuit) hardware. Mining often takes place on large “farms” where there are up to thousands of “mining machines”.

Oracle

Superstructure over the blockchain, something like the bridge between it and the real world. Provides an environment for the existence of Smart contracts.

Private key

A cryptographic key that provides the highest access to the stored cryptocurrency. Who owns a private key is the wallet owner. A confidential item that the owner should never tell anyone.

Public key

A public key is a cryptographic key that can encrypt a message. It is also the address to which or from which to send cryptocurrency.

Satoshi

Satoshi is Bitcoin’s smallest unit. Each Bitcoin can be divided into 8 decimal places, 1 satoshi = 0.00000001 BTC. It is also the name of the alleged creator of Bitcoin.

Satoshi Nakamoto

Name (pseudonym) of the creator of Bitcoin.

Seeds words

Set of 12 or 24 or even 36 English words separated by a space. Using these words, you can restore your wallet. A confidential item that the owner should never tell anyone.

Smart contract

Something like an electronic notary – a contract that is on a blockchain, is unchangeable, and guarantees that if one party complies with predetermined conditions, something happens automatically. Smart contracts have a great future.

Token

This is a type of cryptocurrency that was created primarily for payment of specific services. It is often confused with Coin. It means a token, voucher.

Transaction Fee

For each transaction (transfer from somewhere to somewhere), a fee is paid. This is paid to miners, and its amount depends on various parameters, such as the desired gear speed.

Wallet

A place where cryptocurrency can be stored. There are more types – an online (least secure, user does not have the private key), software or hardware (the safest).