Cryptocurrency, simply put is a digital currency that uses encryption technology to secure transactions, control creation, and verify transfers. It is decentralized in the sense that it has not been issued by any government of any country, thus theoretically making it safe from inflation. It is also immediate and enables you to send money anywhere in the world.
However, being digital currency it has a lot of terms associated with it that people are finding difficult to understand. Here we have a glossary to help you understand the concepts a little better.
Terminology & Definitions
An alphanumeric string that tells where the cryptocurrencies are to be sent and to be received from.
Altcoin is short for Alternative coins, which basically are all other cryptocurrencies that are not bitcoins. They include Etherium, Monero, IOTA, Ripple, Litecoin, Dogecoin etc.
A website and app used to buy and sell cryptocurrencies.
When a transaction is verified by the network it is called a confirmed transaction. The coin in question can now be used for further transactions.
It is basically money that is not backed by gold. All money issued by the government is basically fiat money. US dollars, European Euros, Indian Rupees, all are classified as fiat money.
The instant of two blockchains being created and running simultaneously is called as a fork. Usually a single blockchain forks into two blockchains. There are two kinds of forks, soft fork and hard fork.
the first block in a new chain is called as the genesis block. Its block height is zero.
A fork where invalid transactions are made valid. For it to work, all nodes must upgrade to the newest protocol.
A hash function or hashing algorithm is the method by which data is encrypted. For example a number 90 can be encrypted by multiplying by 2 and obtaining 180. For someone who gets the number 180, has no idea what the original number was. Hashing algorithms are more complicated in nature, but basically an extension of the aforementioned logic.