Cryptocurrency and Blockchain Dictionary

Terms commonly used in the world of blockchain and cryptocurrency

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Diamond Hands

This is an investor, with strong hands, who, in spite of everything, holds coins. The term denotes a strong player in the market

Other Important Terms

This is a way of obtaining passive earnings. This method is based on the Proof-OF-Stake algorithm. Its essence is to keep the tokens on the wallet to obtain the right to participate in the extraction of cryptocurrencies. Tokens are blocked for a certain period of time and are used to ensure the activity of the blockchain. The user receives awards for performing these actions. Steering is a kind of analogue of a bank deposit at a certain percentage.

Cold Storage

Cold storage refers to storing cryptocurrency on a place where the private key cannot be accessed via the internet. This can be done on a hardware wallet, paper wallet or software wallet in an offline environment.

Blockchain

Blockchain is most simply defined as a decentralized, distributed ledger technology that records the provenance of a digital asset.

Block Reward

The block reward is the payment that is offered to the node that is securing the blockchain. In the case of Bitcoin, which is has a Proof-of-Work consensus algorithm, these would be the miners. The payment is in the form of the native cryptocurrency of that blockchain. The amount is a predetermined reward per block, but often that is supplemented with the fees that are paid for the transactions that block contains. For Bitcoin the current block rewards are cut in half every four years. This is called the ‘halvening’.

Gas

This is a unit of computing work for the implementation of transactions or smart contracts in the Ethereum network. Any action on the Ethereum network requires a certain amount of electricity, computing power and miner time that must be paid. GAS in this case acts as a total indicator - how many resources are required to perform a particular transaction. For example, the execution of a certain transaction requires 21010 GAS, the price of 1 GAS is 6 Gwei or 0.000000006 ETH, then the cost of the transaction will be 126060 GWEI or 0.00012606 ETH.

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