Let’s brush up on your crypto lingo.
By admin• April 15, 2019
An online location (specified as a random arrangement of strings or numbers) where cryptocurrency can be sent to or received from.
The distribution of cryptocurrency by the creator of the currency free of charge or at low prices to increase popularity and use.
Cryptocurrencies separate from Bitcoin. This includes SAFCOIN and other cryptocurrencies such as Litecoin, Ethereum, Ripple etc.
All time High (ATH)
The maximum price ever achieved by a cryptocurrency throughout its trading history.
All time Low (ATL)
The lowest price ever hit for a cryptocurrency throughout its trading history.
Anti-Money Laundering (AML)
Regulations and laws implemented internationally to stop money laundering through cryptocurrencies.
To buy and sell different cryptocurrencies for profits based on differences in prices for currency.
For example: If one Bitcoin gets traded for 2 SAFCOIN and 2 SAFCOIN are worth more than the Bitcoin, it would be arbitrage to trade and cash in the SAFCOIN for profit.
Acronym for Application Specific Integrated Circuit. It is a type of computer chip that can be used to efficiently mine for cryptocurrency, often compared with Graphics Cards used for mining.
A sell order for cryptocurrency. An Ask for cryptocurrency indicates willingness to sell a quantity of cryptocurrency for a specified price.
The exercise of cryptocurrency owners exchanging currencies at existing rates without buying or selling their holdings.
A systematic record of all agreements, statements and facts in the block chain. It is accessible to all on the block chain network to cross check whether certain events took place on the block chain. These events include trades, spending, buying or selling of cryptocurrencies etc.
Sometimes a single person or a group of people can gain a majority share control in the hashing power of block chain network. Through singular or coordinated effort, this power can be used to halt, stop or change mining and transactions. When such an event occurs it is called a 51% attack.
When holding a significant amount of cryptocurrency, it is said that the person is holding a bag of cryptocurrency.
A term used to indicate that a cryptocurrency is losing value as reflected in its price. The word bearish is used to describe the general behavior of the currency as falling in price.
Certain holders may dump their cryptocurrency into the market, causing prices to fall. This makes other holders sell their currencies as well which further drives down the prices. Those who initially sold their currency can buy back the extra currency at lower prices to draw up the prices and make profits through extra coins or the difference between the selling and buying prices.
The act of offering a price at which someone is willing to buy a specified quantity of cryptocurrency.
This is said to be a bear trap. Selling currency to drive prices down and buying back at lower rates for profit.
The first cryptocurrency ever created. Invented by a group of individuals under the pseudonym “Satoshi Nakamoto”, it was the first instance of a peer to peer decentralized virtual currency.
The sub-unit of a block chain recording a collection of transactions conducted with a cryptocurrency. A collection of blocks is called a blockchain.
New cryptocurrencies rewarded to miners for their mining efforts.
Online tools to observe activities on the block chain. Can be used to analyze cryptocurrency performance and make conclusions about existing hash power, future currency rates, growth, transactions etc.
Refers to the number of blocks on the block chain. With block height 0, a block chain contains only 1 block. Similarly with height 1, the chain contains 2 blocks.
A collection of blocks that records the entirety of collections of transactions conducted using cryptocurrencies.
Used to refer to cryptocurrencies exhibiting price hikes. A cryptocurrency is bullish if it has exhibited price increases over a certain period of time.
When a currency becomes unspendable due to legislation, technical malfunction or the like; it is said to be burned.
When exchanging currencies, two separate block chains must be linked to make or record the transaction as one currency is destroyed and another is created. For example if you trade SAFCOIN for Ethereum, a chain link will be created to record the transaction in both block chains. Such an event is called chain linking.
The amount of cryptocurrency specifically available for public trading on open markets only. Cryptocurrencies can be stored offline, burned, locked or reserved and thus not available for public trading.
The exercise of keeping coins offline on flash drives or disconnected from the internet and access codes locked away. If you do not access your crypto wallet or have transferred coins onto a flash drive, you are said to have put you coins in cold storage.
When a transaction is made, all nodes on the blockchain must corroborate the occurrence of the transaction. When all nodes agree, a consensus has been reached.
Digital, encrypted cryptocurrency operating independently of banks. The transaction ledgers are maintained by a peer-to-peer connection of block chains that record and verify all transactions.
Cryptographic Hash Function
An encryption function that converts input into an alphanumeric string that is recorded as a transaction in the block chain. Each cryptocurrency has its own unique Cryptographic Hash Function and a unique encryption key.
Computer programs that employ block chains for data storage. These are maintained and run autonomously by all the nodes connected to the block chain. Decentralized Applications are open source and the use is incentivized by rewards or tokens.
As opposed to centralized ledger, such a ledger is stored in multiple locations and accessible by multiple individuals. Block chains are an example of distributed ledgers that record all the transactions on the chain and are accessible by all the nodes on the chain.
A double spend occurs when currency holders attempt to transfer the same unit of cryptocurrency to two different wallets or locations simultaneously.
The exercise of selling large volumes of cryptocurrency simultaneously. Could be indicative of a bear trap.
A type of cryptocurrency
When a third party agrees to hold the funds pending a transaction or transfer, it is said that the funds are in escrow. This third party is the financial intermediary between a buyer and a seller.
Websites that offer cryptocurrency in exchange for connecting with them. These are usually scams.
When two different block chains of the same currency are created to work simultaneously. All transactions through a cryptocurrency are conducted on a single block chain. When a new block chain is created, this is known as a hard or a soft fork. Both block chains are run on the same network. SAFCOIN, for example, is a Litecoin fork.
The first or the first few blocks on the block chain.
During an Initial Coin Offering, the creator of the cryptocurrency may set a limit on the amount of funds to be raised through the investment brought in at the offering. No cryptocurrency may be created or offered beyond the limit.
A type of fork in the block chain that renders all previous transactions from valid to invalid or vice versa. In order for a block chain to successfully take a hard fork, all the nodes on the block chain must transfer to the newest protocols.
A physical device used to store encrypted cryptocurrencies. It is considered the safest storing method since it eliminates all possibilities of digital fraud.
The rates at which your computer can create new hashes as entries on the blockchain. Each hash attempt involves creating a new block, recording cryptocurrency transactions and cross checking it against the rest of the block chain for double spends.
An acronym standing for “Hold On For Dear Life”. Originating from a typo found on a reddit thread on cryptocurrencies and adopted as a convention.
Stand for Initial Coin Offering
Acronym for Know Your Customers. A set of protocols to ensure regulation of financial instruments, entities and markets against fraud.
The exercise of maintaining transactions on block chains by creating new blocks and checking for discrepancy against existing records. Miners get SAFCOIN or other cryptocurrencies for lending a hand in maintaining records on blocks.
The collection of all nodes assisting in the operations of a blockchain.
A singular computer connected to the blockchain, assisting in the maintenance of the chain.
An alphanumeric string used to access cryptocurrency wallets.
Proof of Authority
A private key, authorizing the holder to mine for cryptocurrency.
Proof of Stake
A mining reward scheme that caps miner rewards at the initial investment they made in the currency. Miners cannot earn more than the cap.
Proof of Work
Rewarding method used in SAFCOIN mining. Rewards are determined on the basis of whether and how much hash power was lent to process of recording transactions.
Short for peer-to-peer.
Pronounced as “ess-crypt”, it is a method of encryption that takes significantly higher hash power and is difficult to hack.
As opposed to a hardware wallet, this type of wallet will also be used for SAFCOIN. It is a virtual storage where encrypted cryptocurrency is stored as alphanumeric strings.
When a creator is testing the functionality of a new cryptocurrency it is done on a Test Net. It runs like a secondary blockchain, but has no impact on currency prices. It is a simulation of the Main Net which is the primary field of cryptocurrency activity.
A unique code that serves as an address representing storage of cryptocurrency on the blockchain. The wallet address is public, however the access keys and the balance is private. It can exist as software, hardware, paper or in other forms.
A document specifying a detailed description of the cryptocurrency. A whitepaper specifies the processes of acquiring the currency, the technical specifications for mining and the expected growth of the currency. It is intended to convince investors of the success of the currency.