Underlying (asset)

cryptocurrency glossary

uses the Scrypt mining algorithm, and is mined by the combined proof-of-work and proof-of-stake methods. One is the traditional head and shoulders, viewed “right side up” if you were looking at the bust of a human being. The fluctuations forming the head and shoulders represent investors buying and selling to test a current trend.

Block Depth

  • A cryptocurrency exchange is an online platform that allows individuals to exchange one digital asset for another, or for a specified fiat currency.
  • Payment made to the volunteers who process transactions on a blockchain .
  • It is like a traditional currency exchange at a bank or airport.
  • A cryptocurrency broker pairs buyers and sellers of cryptocurrencies, providing a highly flexible and convenient platform for trading digital assets that’s generally faster than a cryptocurrency exchange.
  • These are also known as cold wallets, as they allow cryptocurrency investors to protect their assets offline away from the prying eyes of cyber-criminals.
  • Transaction fees can vary by cryptocurrency and also by the desired transaction speed.

Data committed to the Ethereum Blockchain signed by an originating account, targeting a specific address. The transaction contains metadata such as the gas limit for that transaction. Introduced by ERC-20 proposal, this provides a standardized smart contract structure for fungible tokens. Tokens from the same contract can be tracked, traded, and are interchangable, unlike NFTs.

Crypto Glossary: Cryptocurrencies And Blockchain

Ascending triangle patterns indicate an upcoming “bull,” or upward-trending, market. This is formed when the lower line of the triangle is a horizontal line, and the upper line tilts downward from left to right. The descending triangle represents a downward-trending, or “bear,” market. form on market value charts when investors buy and sell to cryptocurrency glossary test a current trend. The highs and lows of these fluctuations can be bracketed by straight lines that define the highs and lows during that testing period; these lines form an open-ended triangular shape. These Slices can consist of conversations, notes, rumors, tips, links and videos for fellow community members to follow, rate and view.

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Because of these characteristics, the head and shoulders pattern is listed among those of the “reversal” type. The head and shoulders pattern forms on a market value chart when two smaller fluctuations in value bracket a larger one in the middle. These appear at the beginning of a strong upward or downward trend, and represent very high-volume trading. Since they don’t signify the current trend is going to reverse, the flag pattern is considered one of the “continuation” pattern types. The buying and selling that takes place during this testing period—which generally last one to three weeks—forms fluctuations that can be bracketed by parallel diagonal lines, forming the “flag” shape. In contrast, a lot of people don’t realize the United States dollar wasn’t always a fiat currency.

Asset Class

A cryptographic algorithm used by Ethereum to ensure that funds can only be spent by their owners. A network-wide setting that controls how cryptocurrency glossary much computation is required to produce a proof-of-work. A company or other organization that operates without hierarchical management.

The block validation rules that full nodes follow to stay in consensus with other nodes. The first of two hard forks for the Metropolis development stage. It included EIP-649 Metropolis Difficulty Bomb Delay and Block Reward Reduction, cryptocurrency glossary where the Ice Age was delayed by 1 year and the block reward was reduced from 5 to 3 ether. This is the inverse of the descending triangle, with an upward left-to-right tilted line at the bottom, and a horizontal line at the top.

cryptocurrency glossary

A special type of contract that has no payable functions, no fallback function, and no data storage. A library serves as previously deployed code that other contracts can call for read-only computation. An open source on-disk key-value store, implemented as a lightweight, single-purpose library, with bindings to many platforms. An area of development focussed on layering improvements on top of the Ethereum protocol.

This is a pattern that appears on market value graphs when investors want to test the validity of an upward, or “bullish,” trend in a commodity market. A bubble occurs when a market is driven upward by investors; this has happened in the dot-com and housing industries in the past decade or so. Factors such as industry popularity, speculation of potential worth, political influence, and many other things can combine to create these spikes in value. A daily collection of all things fintech, interesting developments and market updates. Comments about specific definitions should be sent to the authors of the linked Source publication. For NIST publications, an email is usually found within the document. Every Monday morning we’ll send you a TLDR of our latest field guide to help you save time and get smarter faster.

Often compared to GPUs, ASICs are specially made for mining and may offer significant power savings. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Trade volume is the amount of trades being taken and at what size they are. If you have 10 traders all buying one bitcoin versus 1 buyer who is buying 100 bitcoins, the single trader would have the higher trade volume.

cryptocurrency glossary

On Thursday, our editors wrap up the best of Quartz coverage on a specific topic to take you into the weekend. bitcoin – without capitalization, is used to describe bitcoins as a unit of account. e.g. “I sent ten bitcoins today.”; it is also often cryptocurrency glossary abbreviated BTC or XBT. Bitcoin – with capitalization, is used when describing the concept of Bitcoin, or the entire network itself. Bit is a common unit used to designate a sub-unit of a bitcoin – 1,000,000 bits is equal to 1 bitcoin .

Short for “test network,” a network used to simulate the behavior of the main Ethereum network . A layer 2 solution where a channel is set up between participants, where they can transact freely and cheaply. Only a transaction to set up the channel and close the channel is sent to mainnet. This allows for very high cryptocurrency glossary transaction throughput, but does rely on knowing number of participants up front and locking up of funds. A secret number that allows Ethereum users to prove ownership of an account or contracts, by producing a digital signature . An internal transaction that is never serialized and only sent within the EVM.

These improvements are related to transaction speeds, cheaper transaction fees, and transaction privacy. A transaction sent from a contract account to another contract account or an EOA . A hard fork of Ethereum cryptocurrency glossary at block 200,000 to introduce an exponential difficulty increase , motivating a transition to proof-of-stake. The second development stage of Ethereum, launched in March 2016 at block 1,150,000.

The purpose of using cold storage is to minimize the chances of your bitcoins being stolen from a malicious hacker and is commonly used for larger sums of bitcoins. A special Ethereum address, composed entirely of zeros, that is specified as the destination address of a contract creation transaction. First proposed by Dr. Gavin Wood, Web3 represents a new vision and focus for web applications- from centrally owned and managed applications, to applications built on decentralized protocols . At a technical level, your transaction fee relates to how much gas your transaction requires.

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