Crypto Terminology - Part III

Good day everybody,

I hope you are all having a great day. Welcome to CryptoGod-1's blog on all things crypto. Today I am going to do the third and final instalment of three part series on Crypto Terminology. We all had that initial moment when we first stumbled upon the crypto space where a specific term caught us out, or left us feeling like we didn't really understand the space at all. Hopefully the guide below will help any newcomers, and experienced users alike, to ensure they have a grasp of all the lingo. 

The first part to this series can be found here: Crypto Terminology Part I

The second part of this series can be found here: Crypto Terminology Part II

Crypto Terminology - Part III - S through Z & #

• Satoshi Nakamoto - The pseudonym taken by the creator(s) of Bitcoin. To this day their true identity remains a mystery, despite several attempts to figure out who they are.
• - The smallest unit of bitcoin with a value of 0.00000001 BTC.
• Scalability - This represents the capability of a system, network or process to handle a growing amount of work, namely transactions in the crypto space. This is done on a blockchain network without compromising safety/integrity or performance/speed requirements in any way from its original form when it was first created.
• Scaling Problem - This represents the limitations of a blockchain's ability to have a large number of fast and low cast transactions.
• Scalping - The process of buying and selling a coin/token multiple times on the same day within short timeframes in order to profit from small price fluctuations over that period.
• - A scheme that is designed to dupe people out of cash or crypto.
• Secondary Market - This is a place where investors or traders can buy and sell different kinds of assets or securities that they own, with others.
• Seed Phrase - This is a randomly generated, unique list, which contains 12 to 24 words. They are in a specific order and are used by crypto wallet users to regain access and control of their funds on-chain.
• - This is a large order on an exchange which is meant to push down the price of a cryptocurrency by discouraging others from buying it. It also ensures others cannot do so unless they go for a lower price.
• Sharding - This involves a process of splitting a blockchain network into smaller groups of nodes called shards. Each shard is responsible for processing transactions in parallel, alleviating the pressure from other components such as CPU or GPU so more computational power can be used on solving cryptographical puzzles and attaining consensus.
• Shilling - This is slang for a type of hype where someone heavily promotes a cryptocurrency or product such as a NFT by using social media or their influence. This is done to draw attention towards it and often is done with no regard towards the quality of the product.
• Shit Coin - A derogatory term given to cryptocurrencies which are considered poor in value and likely to fail.
• - This is a trading technique where a trader will borrow an asset in order to sell it. The expectation is that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit.
• Sidechain - A separate but interoperable blockchain which operates parallel to the main chain. It enables assets to be transferred between them, and generally allows for faster transactions with lower costs since they aren't included in the more extensive network.
• Signal - These are a type of indicator for users to either buy or sell an asset.
• Slippage - This happens when traders have to settle for a different price than what they initially requested. This happens due to the volatile nature of cryptocurrencies, resulting in a price movement.
• Smart Contract - A piece of code which is executed on the blockchain once certain conditions are met. It allows developers to create decentralised applications without having to build the blockchain from scratch, instead making use of an existing one.
• Soft Fork- An upgrade to a blockchain protocol where only previously valid transactions are made invalid.
• Solidity - The original programming language for developing smart contracts, used by Ethereum .
• Stablecoin - A cryptocurrency designed to minimise price volatility, which is done by pegging the coins value or supply against a physical asset such as fiat currencies like the US dollar.
• Staking - This is when users stake their coins, effectively locking them away in a digital wallet for the purposes of maintaining the network. Users are rewarded with more coins/tokens while staking, but also cannot trade these coins while they're locked up.
• Staking Pool - These pools allow for users to combine their resources in order to increase their chances of earning rewards. This mechanism offers more staking power to the network to verify and validate new transactions.
• Stop Order - When a user gives an instruction after placing a buy or sell order on the market; it sets a condition where they will automatically close their position if this condition is met, i.e. meets a target price.
• Swing Trading - A market trading technique that aims to profit from short to medium-term price changes in stocks, commodities, and/or currencies over a period of days or weeks.

• Technical Analysis (TA) - An evaluation method which involves statistical analyses of the market, such as price and volume. Charts and other tools are used to identify patterns to underpin and drive investment decisions.
• Technical Indicators - This is a statistical algorithm or pattern-based indication based on a security's or contract's historical price, volume, and/or open interest.
• - An alternative blockchain used by developers for testing before launching on the mainnet.
• - A unit which can represent any asset such as commodities like gold or coffee beans, to loyalty points, real estate, or even other cryptocurrencies, which has a store of value for various purposes within a crypto ecosystem.
• Tokenless LEDGER - Also referred to as a "pure" or "transaction-only" blockchain, this is a type of distributed ledger which has no requirement for a native cryptocurrency to operate on it.
• Tokenomics - This is the study of how different variables within an economy impact each other and affect the decision making process. It is a branch of economics that looks at how different classes of assets, which have a monetary value attached to them, affect the dynamics within an economy.
• Token Lockup - This refers to a time period during which cryptocurrency tokens cannot be exchanged or traded.
• Token Sale - The process of selling digital tokens or coins to raise funds for a blockchain project before it goes live.
• Total Value Locked (TVL) - This is the number of assets that are currently being staked in a specific protocol. It provides an estimate for the total value of coins locked in a masternode divided by the number of existing masternodes at that point. While it can give some indication as to which projects are undervalued and overvalued, users so remember that TVL is not a perfect indicator and should be taken with a pinch of salt.
• Trade Volume - The amount of the cryptocurrency that has been traded over the previous 24 hours.
• Trading Bot - This is essentially a program that is designed to automate cryptocurrency asset trading on the behalf of the trader.
• Transaction Fee - This is the sum of the coins / tokens which are paid to miners to confirm transactions into blocks and add them to the Blockchain network. It is an additional charge set by users sending tokens via smart contracts on top of the amount being transferred.
• Transaction pool - The main central component of nodes within a Blockchain which stores all pending/unconfirmed transactions until they are mined into blocks. Generally this is done one at a time, although it is possible to happen concurrently depending on whether there are multiple available or not.
• Trustless - A term which is used for describing a system that doesn't require trust in any party because it makes use of encryption and consensus mechanisms for security.
• Twi-Factor Authentication (2FA) - A method of confirming a user's claimed identity by requiring two separate components for authentication. Usually, something they know, such as a password, and something they possess, such as a SMS code sent to their phone.

• Unconfirmed - A state in which a transaction has not been appended to the blockchain.
• Unrealized Profit & Loss - Unrealized profit and loss occurs when you have a position open in a security that has appreciated or depreciated in value.
• User Interface - This is the user’s interaction with a website or application using a digital device.
• Utility Token - Tokens which are created specifically to allow it holders to use something or have some access to something through it.

• - Participant(s) on a proof-of-stake (PoS) blockchain who are involved in validating blocks for rewards, similar to miners for proof-of-work (PoW).
• Vaporware - A cryptocurrency project that is never actually developed.
• Vesting Period - When new tokens are restricted from being sold for a particular period of time.
• Virtual Automated Market Makers (vAMMs) - This is a system that provides synthetic (or virtual) liquidity, allowing traders to buy and sell derivatives entirely on the blockchain. This is done through a variant of programmable smart contracts which are designed to automatically create their own market for cryptocurrencies.
• Virtual Private Network (VPN) - This is a technology which creates a safe and encrypted network from a public internet connection – giving you anonymity and privacy while browsing the web.
• Volatility - When prices are fluctuating rapidly making it difficult to predict what will happen next. Crypto is considered a volatile market due to its ever changing prices.
• - The amount of cryptocurrency which has been traded over a set period, such as the past 24 hours.

• - A location which is digital and is used to store crypto coins/tokens, maintained via private and public keys that provide access to your cryptocurrency holdings.
• Wallet Address - The public key of a cryptocurrency wallet that is used to receive funds.
• Wallet Seed Phrase- A list of words used like a password to log in to your wallet on different devices. It is very important to keep it safe and ensure nobody ever gets access to them, as they could easily withdraw all your coins / tokens.
• Wallstreet Bets- Also known as /r/wallstreetbets or WSB, this is a subreddit (on Reddit) which is full of users discussing stock's and options trading.
• Wash Trade- This occurs when traders make artificial trading activity which appear as if they were doing business, but the reality is that it's fake, and there is no actual, legitimate buying or selling occurring. It is a form of market manipulation to make it seem like the price of an asset is increasing or falling by simultaneously selling and buying the same cryptocurrencies.
• Weak Hands- This is a slang term which is used to describe individuals who are easily scared by market fluctuations and sell when prices drop, causing further drops in value.
• - The early version of the internet.
• Web 2.0 - The existing state of the internet, which supports more user-generated content and stability for front-end users.
• - The upcoming or future version of the internet, making use of advanced machine-based learning and artificial intelligence to connect web-based applications together.
• - The smallest fraction of an Ether, with each Ether to 1000000000000000000 Wei.
• - This is a slang term used to describe an investor who has a substantial amount of capital to invest, typically one looking to make significant investments and generally holding a large value of a specific cryptocurrency. They are feared and respected among crypto day traders for their ability to move prices up or down with single trades due to the large volume they possess. Whales include the people who bought or mined Bitcoin in its early years and never sold.
• White Hat Hacker- Hackers who user their skills to improve security by exposing vulnerabilities before malicious hackers (known as black hat hackers) can detect and exploit them.
• - A document/roadmap released by a crypto project that gives investors technical information about its concept and how it plans to grow and succeed.

• X86 Virtual Machine (QTUM) - This is a method which allows developers to write smart contracts in a language of their choice.

• Yield Farming - A method of earning interest through depositing funds into a decentralized finance market.
• - It means year to date, beginning from the 1st of January up to the current date.

• Zero Knowledge Proof - A proof which gives evidence of the truthfulness of a statement, but does so without revealing any additional information beyond what is already known. This makes it possible to prove possession of knowledge or secret keys, while at the same time ensuring they remain hidden.
• Zero Knowledge Rollup - A type of layer 2 scaling solution that relies on zero knowledge cryptography.
• Zk-Snarks - A type of zero-knowledge cryptography which allows someone to prove that they know something without giving away any additional information apart from the fact that it's true.

• 51% Attack - This is a situation where more than half of the computing power on a blockchain network is controlled by one person or group, thus allowing them to dictate which transactions are verified. It is hypothetical, but if happened would allow them to prevent other users from completing confirmed transactions, which would cause chaos to the blockchain and system.
• 51% Attack Protection - A protection mechanism implemented by several cryptocurrencies that require more than 50% of their total hashing power working together as one entity. This is done so that it would be difficult for attackers as they would require even more resources and time to cause a 51% attack. If this threshold is below 100%, having an additional safeguard feature where at least 66% must agree with every transaction before sending is additional protection.

That is the final part of the three part series on crypto terminology. Throughout I have covered A-Z of useful and popular terms used in the crypto space. Hopefully it was of interest and of some help to users of all levels. Have a great day.

CryptoGod-1.

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