Here you will find basic terms related to cryptocurrencies, exchange, selling and buying.
Blockchain is a data register based on a continuous chain of blocks built according to certain rules. This ledger stores data of all cryptocurrency transactions. Each block contains information about the current and previous transactions. All users have access to the blockchain, where they can check all transactions. In this case, you cannot delete blocks, you can only add new ones, which guarantees system safety.
Public blockchain is an open network in which anyone can participate. Public blockchains include Bitcoin, Ethereum, Ripple, Waves and others.
Private blockchain is a closed network owned by a specific company. To access such a blockchain, you need to obtain permission or invitation. In private blockchain apply rules set by the participants.
Block is a record of several transactions. The block contains the header and the list of transactions. The header consists of its own hash, hashes of current and previous transactions, and other service information.
Hash is a transaction identifier. It is an encrypted character string that stores transaction data.
Ticker is a short name for a digital currency, consisting of letters and or numbers. For example, BTC is short for Bitcoin and USDT is for Tether.
Mining is the process of the creation of new blocks in the blockchain to ensure the functioning of cryptocurrency platforms. Usually, mining is a series of computations for which the user makes a profit, consisting of the network reward and transaction fees.
Cryptocurrency is a type of electronic/digital/virtual currency, the accounting of which is provided by a decentralized payment system.
Bitcoin (BTC) is the world’s first decentralized digital currency that allowed instant payments between anyone worldwide. Bitcoin uses peer-to-peer technology. This means that transactions take place directly between users without the help of centralized regulators.
Tether (USDT) is a stablecoin anchored to the US dollar. 1 USDT is always equal to $ 1 but it can fluctuate sometimes.
KYC means Know Your Customer. This is a personal identification procedure required for certain transactions. KYC may include verification of documents, address, participation in illegal activities and other parameters.
AML means Anti-Money Laundering. This is a set of measures aimed at countering money laundering and terrorist financing.
API means Application Programming Interface. This is ready-made code blocks for building applications.
Stablecoin is a common name for cryptocurrencies anchored to fiat money, other cryptocurrencies, or physical goods (such as gold). Stablecoins are subject to less rate fluctuations than classic cryptocurrencies.
Altcoin is any cryptocurrency other than bitcoin.
Node is any computer connected to the blockchain network. The nodes communicate with each other and store information about blocks and transactions. Depending on the type, the node can store all or part of the blockchain data.
Smart contract is an algorithm designed to conclude and maintain self executing contracts in a blockchain environment.
P2P or peer-to-peer is a decentralized network built on the equality of participants. A blockchain is being built on the basis of such a network.
Proof of work (PoW) is an algorithm for protecting distributed systems from attacks (DDoS, spam, etc.), which checks whether the miner actually performed the necessary computational work.
Proof of stake (PoS) is a blockchain security algorithm that determines the next block in the blockchain.
Hot wallet is an electronic wallet with an active online connection.
Cold wallet is a wallet without an internet connection. Most often it’s USB wallet, hardware wallet and paper wallet (printed private and public keys).