What some crypto related words mean

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3 years ago

Many people, most especially newbies to the crypto-currency world don't know what some terms in there actually means. You might have come across some words which you find it to mean nothing much to normal English language interpretation but they actually find a way in high priority in this crypto age.

Briefly, I'll be noting some words, phrases that are associated to crypto-currency.

1) airdrop: This is a popular term in crypto-currency. The process of giving out new tokens to a certain number of users that have assets on a particular blockchain. Airdrops are free and may only require some activities before getting that particular token which may include retweeting the token's post or through referral to its programme.

2) Altcoin: After the emergence of bitcoin- the first digital asset, several other crypto-currency that came to exist are known as Altcoin. BCH, ETH, XRP and other coins and tokens are all Altcoins.

3) Contract address: A contract address is one that utilizes a smart contract. Smart contract will be explained as we get there. Contract address is specific to Ethereum.

4) DAO: This means Decentralized Autonomous Organization. These organizations are utilized through smart contract.

5) ERC-20 token: ERC stands for "Ethereum Request for Comments". An ERC-20 token operates on the Ethereum network and must follow some certain rules. All ERC-20 token have address starting with "0x" same with Ethereum addresses.

6) Fiat: Fiat currencies are centralized currencies, unlike crypto currencies which are decentralized. Fiat currencies include the USD, Euro, as so many.

7) Fork: A fork is when a digital asset split into two different crypto-currencies. There was a fork in BTC which gave birth to BCH. Also ETH and ETC.

8) HODL: This means "Hold On for Dear Life" It originated when someone mistyped the word "Hold". It means holding a particular digital asset till an increase in its worth.

9) Legacy address: This refers to an old address format. The legacy address for bitcoin is that whose address start from "1".

10) mempool: This refer to the memory pool of unconfirmed bitcoin transactions.

11) Out of gas: Gas is the term used to describe fee/transfer charges in case of an Ethereum transaction. So, "out of gas" simple means not enough gas was provided for the Ethereum transaction.

12) To the moon: You may wonder who's going to the moon! This phrase simple describes a digital asset skyrocketing i.e shooting up in price in the market.

13) UTXO: This refers to "Unspent Transaction Output". It occurs to confirm transactions via nodes on the network.

14) White paper: This is a form of document written by those launching a new digital coin. It explains everything about the coin that the community may want to know.

I hope you've learned a new things. You can also add up more via the comment section.

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