A

 

34% Attack

 

A 34% Attack is a type of potential attack on a blockchain using the “Tangle” Consensus method where an individual or organization obtains control over at least 34% of the overall network mining power (hashrate) and then attempts to manipulate the general ledger to approve or disapprove chosen transactions by way of majority approval. See 51% Attack.

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51% Attack

 

A 51% Attack is a type of potential attack on the Bitcoin network where an individual or organization obtains control over a majority of the overall network mining power (hashrate) and then attempts to manipulate the general ledger to approve or disapprove chosen transactions by way of majority approval.

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Address

 

Blockchain addresses operate in a similar way to physical addresses and are used to send or receive transactions on a blockchain network. An address usually presents itself as a string of alphanumeric characters. For example, the address to which Bitcoin donations can be sent to support AllThingsCrypto.tech is:

 

Agreement Ledger

 

An agreement ledger is a distributed ledger or accounting in which certain agreements are defined. Unlike a legal contract, participants voluntarily submit to these agreements without entering into more stringent contractual obligations. The agreement is executed in plain sight of every party involved.

In this way, every Blockchain is an Agreement Ledger.

 

Altcoin

 

An altcoin is simply a “Bitcoin alternative”—basically any cryptocurrency that isn’t Bitcoin. These altcoins include coins like Ether, Ripple, Litecoin, Bitcoin Cash, NEO, Stellar Lumens, etc. Altcoins are generally forks of existing blockchain technologies, or creators of their own blockchain. Altcoins can be traded at many exchanges around the world.

 

Arbitrage

 

Arbitrage is a trading practice where a trader takes advantage of the difference in price of the same commodity on two different exchanges. Basically, a trader would buy an asset on one exchange and then sell it at a higher price on another exchange, thus taking advantage of the difference in price between the two exchanges.

 

ASIC

 

ASIC is the short form for “Application-Specific Integrated Circuit”, a silicon chip specifically designed to do a single task. Basically, the computers we use operate on general-purpose circuits, while an ASIC is utilized entirely for a single application. In the case of cryptocurrency mining, ASICs can be used to greatly increase efficiency and significantly decrease energy costs.

 

ATH

 

ATH is an acronym for “All-Time-High”. This is the highest historical price of any currency in the entirety of its life.

 

Attestation Ledger

 

An Attestation Ledger is a distributed ledger that provide a reviewable record of agreements, commitments, statements, or transactions. The purpose is to provide evidence, or attestation, of the nature and fulfillment of an agreement. These viewable records are, in essence, receipts. This type of ledger is vital to compliance with government and tax regulations.

 

B

 

Bear Market

 

When the market is a Bear Market, it means that the general sentiment and and expectation of the market is that price is going to decrease, either for a single coin or asset, or in the market as a whole. This expectation is generally a self-fulfilling prophecy, resulting in price drops for individual assets or for all assets across the market as a whole. This trend continues to increase until sentiment changes, and a more Bull Market mentality starts to move prices back up.

 

Bitcoin (BTC)

 

Bitcoin is the first widely-recognized cryptocurrency, and has been the pioneer for the Blockchain industry as a whole. Bitcoin runs on a global peer-to-peer network with a distributed ledger that provides a necessary balance of encryption and transparency. Bitcoin operates on a Proof-of-Work (PoW) consensus blockchain, and has been forked into several other coins, such as Bitcoin Cash (BCH).

 

Bitcoin Cash (BCH)

 

Bitcoin Cash is a cryptocurrency that was created as a Bitcoin hard fork in August 2017. Bitcoin Cash is essentially a clone of the Bitcoin blockchain, but has improved scalability by increasing block size capacity from 1 MB to 8 MB. The goal is to make Bitcoin Cash a more usable currency in comparison with Bitcoin.

 

Bitcoin ATM

 

A Bitcoin ATM is simply an ATM machine that allows you to deposit into or withdraw funds from your Bitcoin wallet. There are already thousands of these ATM machines around the world.

 

Block

 

Blocks are data packages that include a few necessary parts. These parts include a reference to the block immediately preceding the current block, the solution to a very complicated mathematical problem or puzzle (without which the block cannot be recorded in the chain. The process of solving the puzzle and recording the block is called “mining”), and a record of the machine that gets the reward for solving the puzzle. The most important part is the general ledger of the transactions that were completed since the last block was recorded. Blocks are chained together in chronological order, thus the source of the name “blockchain”.

 

Blockchain

 

Blocks are data packages that include a few necessary parts. These parts include a reference to the block immediately preceding the current block, the solution to a very complicated mathematical problem or puzzle (without which the block cannot be recorded in the chain. The process of solving the puzzle and recording the block is called “mining”), and a record of the machine that gets the reward for solving the puzzle. The most important part is the general ledger of the transactions that were completed since the last block was recorded. Blocks are chained together in chronological order, thus the source of the name “blockchain”.

 

Block Ciphers

 

A Block Cipher is a method of encryption that encrypts data/text in chunks, called blocks, rather than each bit individually. In blockchain, Block Ciphers are the primary method of encrypting and recording the chained blocks. Each block contains a cipher and an algorithm to apply the cipher to the block. Once encrypted, the block is now in ciphertext form, and requires the encryption key to be read.

 

Block Explorer

 

A Block Explorer is a tool used to look inside the data stored on a blockchain. It has a record of all the transactions in each block, and is often made public to increase blockchain visibility and transparency. In essence, a Block Explorer is much like a web browser for the internet. It’s a friendly UI that displays the information at given block locations. There are several prominent blockchain explorers that are free to use, such as Blockchain.info for the Bitcoin blockchain and Etherscan.io for the Ethereum blockchain.

 

Block Height

 

Block Height is a measure of how large a blockchain is based on the number of blocks appended to the chain. For instance if a blockchain has 100 blocks, its block height would be 100. The first block in any chain, called the Genesis Block, is given the height of 0, and each block after just follows numerical order.

 

Block Reward

 

The amount that miners may claim as a reward for creating a block. Equal to the sum of the block subsidy (newly available satoshis) plus the transactions fees paid by transactions included in the block.

 

Bollinger Band

 

A Bollinger Band®, developed by famous technical trader John Bollinger, is plotted two standard deviations away from a simple moving average. Essentially, it is a margin around the price of a crypto that helps indicate when a coin is overbought or oversold.

 

Bull Market

 

An expectation that prices within a given financial market are going to increase or have been increasing for a period of time. Bull markets are dominated by optimism, investor confidence and expectations that strong results should continue. It is difficult to predict consistently when the trends in the market might change.

 

 

C

 

Circulating Supply

 

An approximation of the number of coins or tokens that are circulating in the public market. See also: total supply and maximum supply. Market Cap = Price x Circulating Supply. Don’t be confused with total supply and max supply. They are different. If a cryptocurrency has only the circulating supply, and does not have total supply or max supply, that means that cryptocurrency has no max supply limit. If the cryptocurrency has circulating supply and total supply but does not have max supply, that still means no maximum cap on that coin.

 

Central Ledger

 

A ledger maintained by a central agency. Also known as general ledger, a central ledger contains all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses.

 

Chain Linking

 

Chain Linking is the process of connecting two blockchains with each other, thus allowing transactions between the chains to take place. This will allow blockchains like Bitcoin to communicate with other sidechains, allowing the exchange of assets between them.

 

Cipher

 

A Cipher is the algorithm used for the encryption and/or decryption of information. In common language, ‘cipher’ is also used to refer to an encryption message, also known as ‘code’.

 

Cloud Mining

 

Classical cryptocurrency mining requires huge investments in hardware and electricity. Cloud mining companies aim to make mining accessible to everybody. People can simply log in to a website and invest money in the company which already has mining datacenters. The money is managed by the company and it is invested in mining equipment. Investors get a share of the revenue. The disadvantage for the user is that cloud mining has low returns compared to traditional mining.

 

Coin(s)

 

A coin is its own currency and runs on its own blockchain. See ‘token’ for a differentiation from other cryptocurrency types.

 

Cold Storage

 

The process of moving crypto-currency ‘offline’, as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used:

  • Printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box.
  • Moving the files of a software wallet onto a USB drive and storing it somewhere safe.
  • Using a hardware wallet.

 

Confirmation

 

Confirmation means that the blockchain transaction has been verified by the network. This happens through a process known as mining, in a proof-of-work system (e.g. Bitcoin). Once a transaction is confirmed, it cannot be reversed or double spent. The more confirmations a transaction has, the harder it becomes to perform a double spend attack.

 

Consensus

 

Consensus is achieved when all participants of the network agree on the validity of the transactions, ensuring that the ledgers are exact copies of each other.

 

Consortium Blockchain

 

A Consortium Blockchain is a blockchain where the consensus process is controlled by a pre-selected set of nodes; for example, one might imagine a consortium of 15 financial institutions, each of which operates a node and of which ten must sign every block for the block to be valid. The right to read the blockchain may be public or restricted to the participants. There are also hybrid routes such as the root hashes of the blocks being public together with an API that allows members of the public to make a limited number of queries and get back cryptographic proofs of some parts of the blockchain state. These blockchains may be considered “partially decentralized”.

 

Cryptoanalysis (Cryptanalysis)

Cryptoanalysis, or cryptanalysis, is the study of methods for obtaining the meaning (deciphering) of encrypted information, without access to the secret information (or the key) that is normally required to do so.

 

Cryptocurrency

 

Also known as tokens, cryptocurrencies are representations of digital assets.
It’s a form of digital currency based on mathematics, where encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. Furthermore, cryptocurrencies operate independently of a central bank.

 

Cryptographic Hash Function

 

Cryptographic hashes produce a fixed-size and unique hash value from variable-size transaction input. The SHA-256 computational algorithm is an example of a cryptographic hash.

 

Cryptography

 

Refers to the process of encrypting and decrypting information. Mathematics creates codes and ciphers, in order to conceal information. Used as the basis for the mathematical problems used to verify and secure transactions on the blockchain.

 

Cryptojacking

 

Cryptojacking is referred as a secret use of a device to mine cryptocurrency. The first widely known attempt for cryptojacking was the torrent tracker Piratebay. They enabled an in-browser mining software so when somebody visits the website his/her computer will start mining cryptocurrency via the browser. Users started noticing the unusual behavior in their browsers and Piratebay took down the software. There have been many attempts for cryptojacking since then. The easiest way to find out if a computer is mining cryptocurrency is to check the resources monitor for unusual CPU behavior or using the debug console of your browser and look for mining scripts. Developers also released Chrome browser extensions to protect users from mining occurring on their devices.

 

 

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