Bitcoin Terms Defined: Your Complete Bitcoin and Blockchain Dictionary

      Comments Off on Bitcoin Terms Defined: Your Complete Bitcoin and Blockchain Dictionary

Bitcoin Vocabulary

If you’re dealing with international payments, XRP also enters the conversation before Bitcoin Cash. Maybe that’s good enough to jam a foot in the market door for the long haul, and maybe it isn’t. A couple of thorny questions must work out in Bitcoin Cash’s favor before the cryptocurrency can soar to $1,000 per token again. At a roughly $2 trillion market cap, Bitcoin would still be less valuable than Apple, which is currently worth $2.7 trillion, and Microsoft, with a value of $2.5 trillion. So while a $100,000 price target might seem like a lofty expectation at first glance, it still leaves Bitcoin trailing some of the most successful businesses of all time, a completely reasonable outlook.

Bitcoin Vocabulary

One of the most famous “stable coins” is the → “tether” that is covered with the US dollar. Spooning — Spooning means that a → token is copied to another blockchain. Sign — Before you can send a → transaction you have to sign it with the → Private key.

Orphaned Block

It’s illuminating to focus on this asset’s qualitative characteristics. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. When a bitcoin holder (or HODLer) is mocked for not being rich yet, they’re being bitshamed. The case of bitcoin advocate Andreas Antonopoulos is a great example of this.

“Mint price” refers to what its creators sell it for — for example, the Bored Ape Yacht Club mint price was 0.08 ether. After all NFTs in a collection are minted, traders who want exposure to that collection need to buy them off a secondary market like OpenSea. A purposeful misspelling of “hold,” used to encourage people to hold onto their tokens during a downward price movement. Flash loans are a DeFi tool that allow for loans without collateral. Flash loans allow you to borrow money to buy an asset, but only if the asset can be bought and the interest paid back within the same block. Imagine buying a $1 million house using a loan, but the loan only being approved if you already lined up another buyer willing to pay enough for you to pay back the loan plus interest.

Fiat-Pegged Cryptocurrency

In principle, anyone can become a Miner, but for most people it will not be financially rewarding. In →POW currencies, mining secures the network from attacks. A Mining Pool is a collection of miners who work together and share the reward among themselves.

Bitcoin Vocabulary

Directed acyclic graph — A concept that is often used as an alternative to the block chain. Coins that use DAGs are for example — →IOTA, →Nano and Byteball. Difficulty — Difficulty is mostly used in connection with the →Hashrate Bitcoin Vocabulary Difficulty indicates the hashrate needed to mine a block in a given average time span. Coinbase — The Coinbase is one of the largest crypto → exchanges. One (1) bitcoin (BTC or B⃦) equals a million bits (1,000,000bits).

Money Market

Since most blockchains are not heavily used, their infrastructure is not designed to allow much traffic to exist on the network. Due to the weakness of the infrastructure, networks become susceptible to being forced to crash by a flood of malicious transactions that overwhelm the network. This attack is called a “Denial of Service” (or DoS) attack similar to how a retail website may crash from too much traffic on Black Friday. To counter this lack of robust infrastructure, a software limit is imposed on most blockchains to limit the amount of business that can occur in each block. The blockchain is distributed among many computers around the world, which makes recorded data in the ledger exceedingly difficult to alter. Since the data contained in the blockchain is not centralized, the collapse of one or many network participants cannot affect the entire network.

The block at which the block chain diverges into multiple chain branches. Digital currency units generated and used within the Bitcoin system. Common abbreviations include BTC, XBT or lowercase bitcoin when referring to units of the currency. White Paper — In the crypto world, a white paper is a document that explains the intentions and strategies as well as the technical aspects of a project in detail. Stablecoin — Stable coin” refers to cryptocurrencies that are supposed to maintain a “stable value”, for example because they are covered with collateral.


That data is settled to blocks which are sequentially linked in a chain. Each block of data also contains information about the preceding block, making a nearly infallible chain of time-stamped truths simple to validate in order of occurrence. Cryptography is the branch of mathematics that lets us create mathematical proofs that provide high levels of security. In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend funds from another user’s wallet or to corrupt the block chain. It can also be used to encrypt a wallet, so that it cannot be used without a password.

These are also referred to as “bitcoin rules” which cannot be broken because they are fundamentals of the definition of bitcoin set in stone by the bitcoin white paper. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Get this delivered to your inbox, and more info about our products and services. HODL, sometimes spelled out hodl or Hodl, started as a joke at a bitcoin fan’s expense.