A
String of numbers and letters that are normally produced from the public and private keys and that we could define as the fingerprint of said keys. The address (for example: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2) is a shorter version of the public key. The private key is the one that gives access to the cryptocurrency registered in the public and must, therefore, be kept secret. The public address is the 'account' that we can share with the rest of the network to send us cryptocurrencies and it is the public address of another user that we use to indicate in a transaction the recipient of the funds we send.
In the world of cryptocurrencies, an airdrop consists of the free and mass distribution of a certain amount of tokens or cryptocurrencies, for advertising, educational purposes, etc. Recipients can be chosen randomly, by contest, or because they already own another cryptocurrency (such as ether).
A set of previously written, well-defined, ordered and finite instructions or rules that allow carrying out an activity through successive steps that do not raise doubts for whoever must carry out said activity. Given an initial state and an input, following the successive steps, a final state is reached and a solution is obtained.
Simplified construction of the words “alternative” and “coin”. It could be translated as “alternative currency”. The term Altcoin refers to cryptocurrencies that are derived from the Bitcoin source code or other known cryptocurrencies that, in some cases, are forks of Bitcoin.
A term used to refer to cryptocurrencies with privacy properties that make their transactions difficult or impossible to trace, such as Monero and Zcash.
investment technique based on buying and selling an asset in different markets to profit from price differences. In simple terms, it is about buying an asset at a low price in market A, and selling it in market B at a higher price, earning the difference.
Acronym for 'Application Specific Integrated Circuit.' Chips specifically developed to fulfill a specific function. In the case of Bitcoin, they are designed to process SHA-256 hash problems (for mining) in order to earn new bitcoins.
In economics, an asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit, regardless of whether it is manufacturing equipment or a patent. They can be tangible such as houses or cars or intangibles, also called financial assets, such as stocks, bonds, or contract rights.
Also called public key cryptography, it is used to send messages based on the public key and the private key. Both participate in the encryption of the transferred information, as well as in the verification that the original information has not suffered alterations.
Acronym for All Time High. Historical maximum of a price.
It refers to the transactional protocol that allows one cryptocurrency to be exchanged for another without the need for intermediaries, such as an exchange house. Atomic swaps are made by creating person-to-person payment channels that generate transactions on the blockchains of each cryptocurrency subject to the exchange.
It is a set of routines, protocols and tools to develop software applications. APIs specify how software components should interact with each other.
Annual Percentage Rate (APR) or Equivalent Annual Rate (TAE) refers to the interest rate that is applied to a financial operation in a period of one year, and usually includes nominal interest (TIN) and commissions, expenses, payments and income and allows for a homogeneous comparison of the performance of different products. It does not usually include compound interest.
Annual Percentage Yield (APY) or Annual Percentage Yield is a method for calculating the amount of reward earned within a DeFi or CeFi scheme over the course of a year. In other words, it is a technique to keep track of how the rewards accumulate over the stipulated time of one year.
They are autonomous trading mechanisms that eliminate the need for centralized exchanges and related market making techniques through a mathematical formula that determines the price of assets. They allow digital assets to be traded automatically and without permissions through liquidity pools that are pre-funded on-chain for both assets in the trading pair. Liquidity is provided by other users who also earn passive income on your deposit through trading fees based on the percentage of the liquidity pool they provide. It is the underlying protocol that powers all decentralized exchanges (DEXs).
B
refers to an investor who still holds a crypto asset after a Pump and Dump scheme, or who owns a portfolio of crypto assets with minimal growth prospects.
is a term taken from Wall Street jargon and refers to a trader or investor who believes that the price of a certain cryptocurrency will plummet and wants to take advantage of the fall.
Being bearish in the world of trading means that you believe that a market, asset or financial instrument is going to experience a bearish trajectory. Being bearish is the opposite of being bullish, since the latter means that you think the market is going to go higher.
A condition in which security prices fall sharply amid widespread pessimism and negative investor sentiment. A bear market can be considered if values experience a decline of 20% or more over an extended period of time, typically months or more . The symbol of the bear (bear) comes from the downward gesture that the animal draws with its claws at the time of the attack.
Refers to a situation in which the price of a crypto asset is falling, but suddenly has a sharp rise that 'traps' the 'bear investors' who panicked their positions.
Refers to those holders of large amounts of coins who bet on the fall in the price of a crypto asset. They are the big investors who have a negative vision of the market and place large sales orders in the exchange houses.
The bid price (ask price) is the price at which an investor can sell an underlying asset to a broker or market maker. From the market maker's perspective, the bid price (ask price) is the price at which they are willing to buy the underlying asset from the investor.
It arose on August 1, 2017 as a result of the division of the Bitcoin community around the debate on scalability. Starting from block 478,558, the new currency that adopts the name of Bitcoin Cash is created. From this hard fork of the Bitcoin chain, blocks of 8 Mb in size began to be created in the new chain instead of the 1 Mb of Bitcoin.
Financial investment fund whose capital assets are based on the cryptocurrency of the Bitcoin network.
The Bitcoin Script is the language that Bitcoin uses to develop everything from sending funds to a wallet to allowing the creation of multi-signature accounts.
Fundamental element of the blockchain that miners create and allows to link the transactions carried out in a network. Blocks are created at time intervals and link new transactions to existing ones on the blockchain. We can affirm that the blockchain is like a digital ledger, each block would be each one of the pages of that ledger.
Distributed transactional database, made up of chains of blocks designed to prevent their modification once a piece of data has been published. This is achieved through peer-to-peer (P2P) networks, with consensus generated through a proof-of-work (PoW) algorithm and cryptographically linking the blocks with a reliable time stamp.
Website where you can see the information and the status of the transactions of a public blockchain network and therefore, verify the status of a transaction made with a certain cryptocurrency.
Blockchain in which any modification is evident and visible to the entire network once it has been made. This means that a Tamper Evident Blockchain can be altered, although said alteration will be visible to all network participants.
Blockchain with a very high level of security since nothing can be modified (or it is highly unlikely that someone has access to the necessary resources to do so). Therefore, a Tamper Proof Blockchain like that of Bitcoin, today is immutable.
A component of a block that contains technical information about itself, such as software version, hash address of the previous block, Merkle root, time or timestamp, difficulty target, and Nonce number.
is the block number counted from the genesis block —the first block— in a blockchain. For example, block 545,500 in Bitcoin has 545,499 blocks added to the ledger before it, starting from the first one created.
refers to when a certain cryptocurrency or most of the cryptocurrencies on the market suffer a considerable reduction in price, reflecting red values on statistics and graph sites.
Bloom filters are an information analysis feature. These allow determining if a data or set of these are stored within a database or distributed data set. Its main characteristic is its extreme efficiency in this task.
Software that issues, edits, cancels, and executes buy and sell orders following a strategy that varies depending on the set of rules entered.
A portfolio is a group of assets held by an investor or investment company. The assets in an investment portfolio can be of various types: for example, stocks, bonds, commodities or derivatives.
A broker, trader or broker is a representative or intermediary agent in financial or commercial operations who receives a commission for his intervention. However, in the blockchain world, a trader refers to any user who practices trading (trade) with cryptocurrencies, with the goal of obtaining their own profits.
These are the efforts made by the broker to materialize his order, the purchase and sale of something on behalf of the principal. In the blockchain field, trading refers to the specialized purchase and sale of cryptocurrencies with the aim of making a profit.
It is an abnormal and uncontrolled rise in the price of a certain asset, so that this price is far from its intrinsic value. It occurs when people start buying an asset at higher and higher prices, hoping it will continue to rise in value so they can sell it for more and earn the difference. Such a situation reaches a breaking point at some point with sell-offs that cause prices to fall sharply (the bursting of the bubble). It is important to note that assets by themselves are not bubbles, but may suffer from them at some point.
Contrary to the 'bear', it refers to a trader or investor who believes that the price of a certain cryptocurrency will rise and plans to continue buying or maintaining his position.
Contrary to the bear trap, it is a situation in which the price of a cryptocurrency goes up, inviting “bull investors” to buy, but then it suffers a sharp drop and the bulls fall into the trap.
It is a market trend characterized by a constant upward movement of the prices of certain financial assets during prolonged periods, which tend to last for months or even years. The symbol of the bull (bull) comes from the upward gesture that the animal draws with its horns at the time of the attack.
Constant price rise in a certain time
C
A covered call is a call option trading strategy. It involves holding an existing long position in a tradable asset and writing (selling) a call option on the same asset, with the goal of increasing the overall profit an investor will receive.
Call options allow the holder to purchase the asset at a set price within a specified period. The owner of the Call has the right, but not the obligation, to purchase the underlying security instrument at a specified strike price within a specified period. When the strike price of the Call is less than the market price on the strike date, the Call holder may use his call option to purchase the instrument at the lower strike price. If the market price is less than the strike price, the Call expires unused and worthless.
The term capital can mean different options. However, it is typically ownership of an asset without any debt involved.
This is an algorithm specifically designed to help Ethereum in its migration from Proof of Work (PoW) to Proof of Stake (PoS). Its main functionality is to apply a proof of stake every 100 transactions to progressively evaluate the performance of the work parameters.
Centralized digital exchange house that allows the deposit of funds in an account or wallet within the exchange and it is the platform itself that carries out the exchange for us, according to the data parameters.
Represents the level of difficulty encountered by the miners of that blockchain to mine user transactions and add them to the blockchain.
A chartist is an investor who relies, above all, on chart analysis to understand the historical fluctuations in the prices of a financial instrument, with the aim of obtaining more reliable predictions and speculating on its behavior in the future. These types of investors are also known as technical analysts or technical investors.
It consists of renting mining power for a cryptocurrency to a company that offers this service through the Internet.
Main economic incentive or reward that miners have for putting their computing capacity at the service of the network. In the case of Bitcoin, it is the only way in which new bitcoins can be generated. Not to be confused with the Coinbase exchange house that has adopted the name.
Keep the private key of a cryptocurrency on paper or with specific hardware (such as Trezor or Ledger Nano).
hardware device that protects offline (without internet connection) the private keys that allow the movement of funds stored in addresses associated with them (the keys). A cold wallet must be connected through software in order to mobilize the funds that are stored in an address. Among the devices of this type we can mention Trezor, Ledger, BitBox or Coldcard Wallet as examples.
Confidential Transactions (CT) are a Zero Knowledge Protocol (ZKP) type cryptographic protocol designed to make cryptocurrency transactions on a blockchain private and anonymous.
Occurs when a blockchain transaction has already been processed by the network. Transactions on a blockchain receive confirmations once they have been included in a block, which in turn has already been connected to the next block in the chain. Thus ensuring the immutability of the transaction.
Algorithm that establishes the rules that blocks must comply with in order to be admitted into a chain. They are the rules of the game that incorporate the necessary incentives to ensure that the parties are compensated for acting honestly.
Refers to a movement in the price of a cryptocurrency, generally negative and of 10% onwards. But it only counts as a 'correction' if the price of said cryptocurrency was above or below its usual value due to speculation.
It stands for Consumer Price Index, an average of various consumer goods and services used as an indicator of inflation. CPI movements are usually expressed in percentages, where positive movements refer to inflation and negative movements to deflation. A very significant part of the powers of central banks such as the Federal Reserve or the European Central Bank are related to keeping inflation within the established targets. They try to achieve this through monetary policy adjustments, such as changing the base interest rate.
Known as the CPU, the Central Processing Unit is the brain of computers and the part in charge of carrying out the complex calculations necessary for the operation of all information technology.
Cross-chain Swaps or Inter-Chain Exchanges are a type of P2P exchange that allows us to safely transform our cryptocurrencies or others, without intermediaries of any kind.
Digital medium of exchange that is used in public blockchains for the exchange of records. They are characterized and differ from conventional currencies in the lack of a central body (government/bank) that controls them. Some examples: bitcoin, litecoin, ether, dogecoin.
Encryption or coding techniques intended to alter the linguistic representations of certain messages in order to render them unintelligible to unauthorized recipients. One of the recurring cryptographic algorithms when studying the Bitcoin protocol is SHA-256.
Refers to an ideal that defends the use of cryptography and new technologies to protect the privacy of individuals and thus achieve social and political change. It started as a mailing list in 1992 at the initiative of Eric Hughes, Timothy C. May and John Gilmore, and the name comes from the mixture between cipher (encryption algorithm) and cyberpunk (dystopian fiction subgenre). Satoshi Nakamoto created Bitcoin based on this ideal.
The CDBC or Central Bank Digital Currencies, are a type of digital fiduciary currency that seeks to gain ground in the world using the power of banks, governments, and the enormous impact that technologies such as blockchain and Bitcoin have achieved with their vision of digital money.
D
Any resource that exists in digitized form and that someone can own, or that represents content that someone can own and, therefore, has an associated right to use it. Being treated as property, it can be sold, bought or licensed. For example, graphic files, logos, video or sound files, web pages, electronic documents, cryptocurrencies.
Entity that exists on the Internet autonomously, but that depends to a large extent on people to perform certain tasks that automation itself cannot perform. It could be said that they are organizations with internal capital that puts automation at the center and humans at the margins.
Refers to the set of networks and technologies distributed among multiple nodes and aimed at preserving anonymity when sharing information and digital content. It is usually associated with the 'dark side' or criminal of the Internet, and, specifically, the Deep Web (deep web).
Characteristic of systems that do not depend on a central point or single point to function. It favors independence and complicates censorship and control.
dAPIs are decentralized, blockchain-native API services built by combining multiple provider-operated oracle nodes into aggregated data sources, without the use of third parties. To achieve an end-to-end decentralized system, dAPIs can have a completely open and straightforward governance model from the start.
Software or computer program that works within a public blockchain and whose interactions are carried out through the transfer of cryptocurrencies or tokens that are registered without a central control entity. It must be fully open source and any developer must be able to propose contributions and improvements. Decentralized exchange platforms for crypto assets, known as DEXs, work like decentralized applications.
Refers to the reduction in prices of goods and services in a certain economy for a minimum period of two semesters. It is caused by the reduction of its economic activity.
Is an economic principle that refers to the consumer's desire to buy goods and services and the willingness to pay a price for a specific good or service. Market demand is the total quantity demanded by all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy.
Currency depreciation is the decrease in value of one currency relative to another. It refers specifically to currencies on a flexible exchange rate: a system in which the Forex market sets the value of a currency, based on supply and demand. The opposite of currency depreciation is currency appreciation, where a currency becomes stronger. Forex investors can take advantage of both appreciation and depreciation by opening a long or short position depending on their market predictions.
It is a peer-to-peer (P2P) marketplace that connects cryptocurrency buyers and sellers without the need for custody, which means that the user maintains control of their private keys when transacting on the DEX platform. Lacking a central authority, DEXs employ smart contracts that execute themselves under set conditions and record each transaction on the blockchain.
Number that determines the complexity of the hash puzzle to be solved in each block. It varies depending on the computing power of the miners in the network and is automatically adjusted every certain number of blocks mined. In the case of Bitcoin, it adjusts every 2016 blocks.
Any resource that exists in digitized form and that someone can own, or that represents content that someone can own and, therefore, has an associated right to use it. Being treated as property, it can be sold, bought or licensed. For example, graphic files, logos, video or sound files, web pages, electronic documents, cryptocurrencies.
Mathematical process that allows verifying the authenticity of the sender of a certain digital message, such as a transaction with cryptocurrencies. More specifically, it is the combination between a private key and a hash of the data to be signed, which grants a unique digital identification.
A dividend is the part of the profits that a company decides to distribute among its shareholders. It is usually expressed as a percentage. When a company makes a profit, it can be reinvested in the company itself or distributed, part or all, among shareholders through dividends. It is one of the ways that shareholders can earn income from their investment. If a company does not offer dividends, investors will expect this to be offset by a further increase in the value of their shares. Dividends usually consist of a one-time or periodic payment, but they can also be distributed in equity or in shares.
Acronym for Distributed Ledger Technology. It is a term that encompasses the entire category of decentralized networks or distributed consensus systems that exist. The category of 'DLT networks' share the characteristic that they do not need a central database or a central decision-making entity. The first functional and operational DLT was the Bitcoin blockchain network, which has been running non-stop since 2009.
Parodic cryptocurrency based on the popular Doge meme, which was created as in 2013 by Billy Markus and Jackson Palmer. It reached prices and market capitalization of millions of dollars.
Refers to a certain small investor who has already achieved a certain popularity in the community and who also has some influence on the movement of the price of a cryptocurrency, although it cannot yet be considered as a whale.
It refers to a computer attack that consists of making mass requests to a server (computer network) until it is saturated and affects its availability for other users. Thus, for example, a large amount of junk mail can be sent to a certain server (such as a company) to collapse its page, Internet or services.
It refers to an extension of the DoS attack, in which a server is saturated making many requests from different points of the network, compromising the stability and availability of the service
Potential flaw of digital money whereby the same digital currency can be spent more than once in a decentralized system. Prior to Bitcoin, no one had solved the problem of double spending.
In economics, it is the practice of selling (at a loss) products at prices so cheap that other competitors cannot fairly compete. In the bitcoin ecosystem, it refers to when a user with holdings of millions sells a significant amount of them in a very short time, causing an abrupt drop in the price of the currency.
E
An Eclipse Attack is a type of attack that seeks to isolate and attack a specific user who is part of the blockchain network, causing them to receive false information in order to manipulate them
Cryptocurrency of the EOS.IO network, which focuses on the creation of smart contracts with high transaction speeds. Its consensus mechanism is PoS and it has only 21 block producers chosen by vote.
The Erebus Attack is a type of attack capable of affecting the cryptocurrency network such as Bitcoin and derivatives, managing to alter its operation and even making it impossible for it to function normally.
The ERC-1155 token is a new type of standard token within Ethereum with the ability to change the landscape of DApps within this blockchain, thanks to its multitoken capacity and a new number of functions designed to provide a better user experience. and programming.
The ERC 721 tokens of the Ethereum network base their existence and operation on the empowerment of digital scarcity to take advantage of the effect created by limited editions of products. Unlike ERC-20 tokens, its appeal lies in how its peculiarity enhances its collectible facet.
They are basically tracking funds: collective investment plans that aim to replicate the movement of a particular market or a group of markets. These markets are listed on a regulated exchange, just like stocks, and are designed to reflect the underlying market they follow.
Ethereum unit of account or token. It is a necessary element, a fuel, to operate Ethereum. It is a form of payment made by the clients of the platform to the machines that execute the requested operations. It's the incentive that ensures developers write quality apps, and that the network stays healthy as people get compensated for their contributed resources.
Open source platform, decentralized and based on the blockchain model that allows the creation of smart contracts. It uses a PoW-type consensus system, although it is in a development phase in which the PoS system is being tested. It uses a token called ether that allows the execution of smart contracts on its network using a Virtual Machine (Ethereum Virtual Machine or EVM) that works in a distributed way thanks to the contribution of the miners who are rewarded with ethers
Is a virtual machine where Ethereum smart contracts and protocols can be safely executed.
Is the physical or digital place where currency exchange operations are carried out. It is organized to exchange currencies between a buyer and a seller, which can be the exchange house itself, and a commission is charged for its purchase and sale. The price of the currency or cryptocurrency is frozen during the time of the transaction. LocalBitcoins is an example of an exchange house.
It is an indicator that establishes a proportional relationship between two different currencies. That is, how much of one is fairly equal to a certain amount of the other, and vice versa.
F
Legal tender money. Only central banks have the power to issue fiat money, but commercial banks can create it through loans.
They are technical analysis tools that identify possible support and resistance zones through calculations and charts. Identifying these areas is useful for investors as it can help them decide when to open or close a position, or when to request stop and limit orders.
As a trading term, it means to carry out an order related to a financial asset. It is the basic fact of any market transaction. When the order has been completed, it is said to have been 'filled' or 'executed'. However, it should be noted that there is no guarantee that all trades will be filled. To fill an order, certain parameters must be met. There must be a sufficient trading volume in the market (if there is no one willing to buy or sell, your transaction will not take place). It is important to make sure that your trade has not expired and that the market is within the trading hours, since only orders that are open and in markets within these same hours can be filled.
Use of borrowed funds to finance an investment, from a certain 'initial' of one's own. For example, if you have $100, you can 'leverage' it five times in a brokerage and get $500 to invest. This process is carried out with the goal of earning more than what was borrowed in order to be able to pay later and obtain higher profits at the same time.
Day in which a certain company offers part of its share capital for sale to private investors, in exchange for funds to continue growing. In the world of crypto assets, it can be equated to Initial Coin Offerings (ICOs).
A Finney Attack is the first known attack or hack on Bitcoin and discovered by the first person to receive a bitcoin transaction, Hal Finney. This is a very special type of double spend attack that affects Bitcoin and any cryptocurrency derived from it.
Contrary to whales and dolphins, describes an investor or user of cryptocurrencies who owns very little of them.
It is a strategy to rotate the investment in altcoins in a trading platform, trying to maximize profits. The objective is to study the percentage increases of those coins, exchanging them for those that begin to show more attractive price spikes.
The Federal Open Markets Committee (FOMC) is the branch of the Federal Reserve Bank responsible for making short- and long-term monetary policy decisions.
The 'fear of being left out' related to the purchase of cryptocurrencies. The sentiment encourages hasty purchases.
It is the abbreviation of the English word foreign exchange (currency exchange), it is the market in which one currency is converted into another. The Forex market is also called the foreign exchange or FX market. It is the largest financial market in the world and one of the most liquid, with trillions of dollars in foreign currency traded every day.
Situation in which a chain of blocks is divided into two separate chains temporarily or permanently. Occurs when the source code of a project is taken and a new project is created from it with a new address. A hard fork occurs when a blockchain splits into two separate incompatible chains, this is a consequence of the use of two incompatible rule sets trying to govern the system. A soft fork is a rule change that creates blocks that are recognized as valid by older software, that is, it is backwards compatible.
Acronym for “Fear, Uncertainty and Doubt”. In Spanish: Fear, Uncertainty and Doubt. Term to define a state of mind of people within a market in the face of a possible drop in asset prices, either due to objective evidence or rumors and negative news.
Desktop wallet that maintains an entire copy of the chain of blocks in real time of any cryptocurrency.
Financial asset study methodology that seeks to discover the Fundamental Value of an asset, that is, the value it should have according to its intrinsic properties, regardless of its price behavior at a specific time. To do this, it studies various aspects of the product or project in which it is planned to invest, as well as the context in which it operates, to determine if the current price of the asset is above or below its fundamental value, which implies a indicator of the future performance that can be expected from the asset. The halving, in Bitcoin, works as a fundamental indicator.
A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specific time in the future. The buyer of a futures contract is assuming the obligation to buy the underlying asset when the futures contract expires. The seller of the futures contract assumes the obligation to provide the underlying asset on the expiration date.
G
Game theory is a branch of mathematics that has great relevance in the behavioral and decision-making field and that has an important presence in blockchain technology.
Internal price to execute a transaction or contract in Ethereum. It is used to decouple the unit ether (ETH) and its unit market value to measure computational usage (gas).
It refers to the first block that makes up a chain of blocks or blockchain. In the case of Bitcoin, the first public blockchain dates from January 3, 2009.
Acronym for “ Graphic Processing Units” . Most tokens that require PoW as a consensus mechanism use GPU-based mining. These are designed to be able to solve different types of algorithms.
Digital system through which two different parties can put funds in a multi-signature wallet to avoid that neither handles them without a prior agreement.
Is a collaborative platform where programmers can jointly host and modify computer code for the development of various programs and applications. Usually the code that is hosted is open source, although the company has been owned by Microsoft since 2018. It is here that the code of Bitcoin and many other cryptocurrencies and decentralized platforms are hosted and modified. Similar to it, there are GitLab and SourceForge.
H
Refers to the halving of the reward that miners receive for completing a block of transactions. The Bitcoin protocol is designed so that the creation of new bitcoins is reduced by half every 4 years, which is why the reward of Bitcoin miners for solving a block will decrease.
Limit of money that a project will receive from its investors through an ICO. Once that limit has been reached, no more tokens will be distributed.
Fingerprint. A hash is a one-way function.Hashing has as its main objective the creation of a digital fingerprint on the content to which the function is applied. The resulting fingerprint will have a fixed length that will depend solely on the algorithm used and not on the length of the content on which it is applied. Precisely because the length of the resulting fingerprint is usually much less than the initial content, this family of algorithms is often known as digest functions . Hashes are normally written in hexadecimal system (numbers between 0 and 9 and letters between A and F). The same hash will always result in the same data, but changing the information by even a single bit will result in a completely different hash. A hash is very easy to compute in one direction and very difficult to compute in the opposite direction with brute force alone.
This rate measures the processing power in a cryptocurrency, or, put another way, it is the number of hash operations carried out in a certain amount of time. For example, when a network reaches a hash rate of 5 TH/s it means that it can perform up to 5 trillion operations per second.
Modification of the word HOLD in English which means, in this context, maintaining your current position in the portfolio without the intention of selling.
Wallet that is always connected to the blockchain. The stored coins can be quickly exchanged with other members of the network or used for trading.
It is the lowest price that a cryptocurrency or any other asset has reached in its entire history. In English, the acronym ATL (All Time Low) is often used.
I
Acronym for Initial Coin Offering . It is used to finance the development of new decentralized protocols in the blockchain and is inspired by the concept of IPO (OPV) although they are hardly comparable.
Is the rate at which the price level of goods and services in a basket of selected goods and services in an economy is increasing and, consequently, the purchasing power of the currency is decreasing. Inflation is classNameified into three types: demand-push inflation, cost-push inflation, and expectations inflation.
In economics, the term interest can have several definitions. First of all, it can refer to the amount that is charged to the person requesting a loan. It can be a cost or a system for an investor to obtain benefits. Second, it can refer to the number of shares in a company held by a particular shareholder.
It is the amount that a lender charges the borrower for lending an asset and is usually expressed as a percentage of the amount lent. The percentage usually refers to the amount that is paid each year (it is what is called the annual rate), but it can be used for other more or less periodic payments. Interest rates can be simple or compound. Simple interest is derived only from the original loan (called principal) and compound interest is calculated from the principal plus interest earned throughout the loan. Therefore, if a loan of 100 euros has 5% compound interest, after one year the interest will be 5% on 105 euros (the original 100 euros plus 5 euros of accrued interest).
Investment capital is the part of the financial resources that are available to operate in the market. It can consist of money or other assets.
It is any person or entity that allocates capital to an investment with the aim of obtaining benefits. However, within the investment world, investors often have a different attitude towards investing than so-called traders.
It is a way of describing the perceived or true value of an asset. This is not always identical to the current market price because the assets may be overvalued or undervalued. Intrinsic value is a common part of fundamental analysis, which investors use to evaluate stocks as well as price options.
K
It is a kind of technology that allows monitoring and recording each keystroke on a specific keyboard, which can be both mobile and desktop computers. Sometimes a keylogger can also record clicks, audio, and video. In this way, it is possible to find out from private conversations to credentials and passwords, if their use is unethical.
Its literal translation is: 'Know your client'. Process by which an entity or company that carries out a business or transaction must identify with the other actor with whom they carry out the operation. The idea is to verify the legitimacy and existence of the client.
L
Its translation is General Ledger and consists of an accounting record of all transactions in a file or database since the beginnings of money and commerce. Blockchain-like networks of cryptocurrencies have the potential to create distributed digital ledgers. There are different types of ledger in the digital age.
Leverage is a concept that can help you multiply your exposure to a financial market without having to invest more investment capital.
It is a measure investors use to determine a company's financial leverage. In this context, leverage is the sum of the funds that have been acquired through loans from creditors (or debt) compared to the funds acquired through equity.
It is the total monetary value of the debts and commitments that burden a company, institution or individual, and that are reflected in its accounting. The liability includes the obligations that an individual or company has, that is, it is the financing provided by a creditor and represents what the person or company owes to third parties, such as payment to banks, suppliers, taxes, employee salaries, etc.
Proposed solution to solve the bitcoin scalability problem, it allows the processing of payments and micropayments almost instantly. The network uses a protocol as a secondary layer to Bitcoin.
It is an instruction given to execute a trade at a level that is more favorable than the current market price. There are two varieties of limit orders: entry orders (which consist of opening a position) and close orders (which end an open position). Limit orders allow you to specify the minimum price at which you wish to sell or the maximum price at which you wish to buy. If you want to place an order to buy or sell an asset at a price that is less favorable than the current market price, you can use a stop order.
Describes the degree to which an asset or security can be quickly bought or sold in the market at a price that reflects its intrinsic value. In other words: the ease of turning it into cash. Cash is universally considered the most liquid asset, while tangible assets such as real estate, fine art, and collectibles are relatively illiquid.
It is a measure used to determine a company's ability to sell its tangible assets in order to pay off its short-term debt. Companies normally have a limited time to pay off debt in the short term, so this ratio is useful to establish the liquidity of a business.
Cryptocurrency created by Charlie Lee in 2011, based on the Bitcoin code, but with modifications that make it a 'lighter' and slightly faster alternative. It uses PoW with Scrypt as the consensus algorithm.
A long position is a bullish (positive) position in a security. A bullish or long position seeks to benefit from rising prices of certain securities: it is the purchase of a stock, commodity or currency with the expectation that it will increase in value.
M
It is the main Bitcoin network, where transactions of this cryptocurrency are recorded and take place. Mainnet bitcoins are the ones with real value.
Main chain of a certain cryptocurrency, where transactions with legitimate funds are carried out and validated in real time.
It is the term that describes the alert sent to an investor to notify him that the capital in his account is below the minimum necessary to maintain an open position. A margin call means that the investor must add additional funds to his account or close the position to reduce the required maintenance margin.
Margin trading or leveraged trading is a form of trading where the positions you take are leveraged by the broker or platforms you use to participate in the markets. This with the objective of multiplying the profits that you can have with your successful operations, but at the same time, multiply your opportunities to lose everything.
In economics, the market refers to the total set of transactions or exchanges of a certain good or service carried out between individuals. That is, all purchases, sales, changes made of X currency, object, merchandise, etc.
Total supply of the number of cryptocurrencies or tokens multiplied by the price of the cryptocurrency at that time.
A market maker is an individual market participant or a member firm of an exchange that also buys and sells securities for its own account, at the prices it displays on its exchange's trading board; that is, it places a buy-sell order waiting to be completed.
A Market Taker is a trader who fills his orders immediately without being placed in the order book. An example of this is when a merchant chooses 'Market order' , since such an order is not going to the order book and is taking liquidity out of the order book, therefore it is considered a market taker.
It is an instruction from an investor to his broker to execute a trade immediately at the best available price. Market orders are generally executed very quickly, provided there is sufficient liquidity in the market. When a market order has been executed, your order is said to be filled.
Type of full node in certain blockchains in charge of validating transactions in a Proof-of-Stake (PoS) system. In order for a user of that chain to manage a masternode, they must block a certain amount of the native currency in their address. Masternodes can give the chain greater privacy, lower volatility, make transactions instant and allow their administrators to participate in the governance of the project.
Merged mining or combined mining is a protocol that allows two different blockchains that share the same consensus protocol and hash function to be mined together without loss of performance and maintaining a high level of security.
Structure of values in the form of a tree where each previous hash is the result of applying a hash function on the hash of the hashes, until reaching a root hash. It allows large numbers of separate pieces of data to be bound to a single hash value. In this way it provides a safe and efficient method of verification of the contents of large data structures.
MetaMask is a wallet project that allows us to manage funds to interact more easily with the different DApps that run on the Ethereum network, and all through a simple extension for web browsers.
It is the transmission of a tiny amount of funds from one address to another. It is usually done through payment channels outside the main chain, without high commissions.
Nodes that validate transactions and create blocks with the aim of getting a prize in the cryptocurrency of that blockchain. In order to close a block it must get an arbitrary unique number or nonce that successfully solves a hash puzzle.
Activity through which new crypto-assets are issued and transactions are confirmed on a blockchain network. Nonce achievement process that solves the hash puzzle, within which consensus operations occur.
It is the grouping of two or more miners who pool their computing power to increase the chances of solving a block and obtain a more constant reward. In mining pools, the reward is divided internally based on the number of hashes contributed by each of its members.
It is the payment or reward received by the nodes or miners for verifying the validity of user transactions and acting honestly when adding the blocks in the longest chain of the network. That reward is in the form of new native currencies, plus a certain amount in transaction fees from regular users.
Is a service or protocol that divides the amounts to be sent by users into small amounts that go through different addresses before being unified again at the final destination. This operation makes it difficult to track capital.
Smartphone applications for Android, iOS or another operating system for portable terminals that allow us to store and manage our cryptocurrencies, as well as make payments quickly and easily.
cryptocurrency that offers private transactions, that is, there is very little possibility that they are linked to users. It was released in 2016 by an anonymous group of developers and uses ring signatures to achieve its goal.
Prices that go through the roof, in English it is described as “going to the moon”.
Commonly known as Mt. Gox, this was one of the first bitcoin exchanges and, at the time, also the most widely used. It was headquartered in Tokyo (Japan) and was founded in 2010 by Jed McCaleb, who sold it the following year to Frenchman Mark Karpelès. It suffered a large-scale hack in 2014, which mined more than 744,408 BTC and bankrupted it.
It is a form of technology used to add security in the transactions of a wallet. In order for said wallet to be able to transact, it is necessary that several users approve the carrying out of said transactions.
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NFT tokens or non-fungible tokens are a solution created to allow us to represent objects with unique, unrepeatable and indivisible qualities within a blockchain.
They are the total amount of profit (often called profit) that a company makes and publishes on its earnings report.
It is the commission that each Bitcoin user pays when making a transaction in this network and is part of the incentives that miners receive for their work in keeping the network active and operational. Each cryptocurrency establishes the minimum value of the commissions.
In a computer network each of the machines is a node. On the Internet, each server is also a node.
Number that changes sequentially to vary the original message and cause the obtained hash to be different on each attempt. If the message is modified with a nonce the resulting hash changes, without altering the main part of the message.
O
It is the existing quantity of a certain product or service available for sale during a certain period of time.
wiki.open
In finance, options are derivative instruments that are based on the value of underlying assets, such as stocks. An options contract offers the buyer the opportunity to buy or sell, depending on the type of contract they hold, the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they choose not to.
They are the only way that smart contracts interact with data outside the blockchain environment, it is the translator of information provided by an external platform.
It is a list of operations, either electronic or manual, that a stock or exchange uses to record market interest in a specific security or financial instrument. Stocks are normally traded on an order book by volume and by price level.
They are blocks that have been resolved correctly, but for different reasons the rest of the network nodes do not accept it by consensus and are not part of the blockchain.
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Computer network in which all or some aspects work without fixed clients or servers. Series of nodes that behave as equals to each other, simultaneously act as clients and servers with respect to the other nodes in the network. The P2P economy is one in which anyone can transact as producers and consumers ('prosumers') without having to resort to intermediaries.
Consists of the online identity theft of an authority, company, web page or even of some person, in order to deceive the victim into revealing their confidential information. In this way, an attacker could access the accounts or wallets and steal the victim's funds.
One in which the process of consultation, validation and participation are limited to a few nodes. Both the access to the data of the block chain and the sending of transactions to be included, are limited to a predefined list of nodes or entities.
In the world of cryptocurrencies, it refers to a sale of tokens that takes place before the respective Initial Coin Offering (ICO) is officially opened to the public. In a pre-sale, the token purchase prices are lower, although the risk is higher. Depending on the context, the same ICO can be called a presale.
It is an advanced consensus protocol that makes use of identity and reputation to choose the validators of transactions within your blockchain. With this, it aims to have high scalability.
Protocol in which a certain number of tokens are 'burned', that is, they are sent to an address from where it is not possible to move them again. This gives more value to the remaining tokens.
Distributed consensus protocol in which the probability that a staker will find a block of transactions and receive the corresponding incentive is directly proportional to the number of coins they have accumulated. The chain with the most support is the chain with the most 'collateral' or stake allocated. The staker needs to buy tokens to validate blocks.
Distributed consensus protocol in which the chain with the most support is the chain with the most 'work' or hashrate behind it. It is a hash with certain requirements so that it is difficult for the miner to find. The miner gets tokens or cryptocurrencies from that blockchain as a reward.
A protocol is a set of rules that regulate communication between different digital systems. Within the world of blockchains, it refers above all to the agreed and official rules under which the participants of a decentralized network interact, connect with each other and validate transactions.
One in which there are no restrictions either to read the data from the block chain or to validate transactions so that they are included in the block chain. They are easy to get in and out of, they are transparent, they are built to operate in a trustless environment.
We can think of the public key as if it were a bank account number and the private key as if it were the secret PIN. The public key is used to receive cryptocurrencies, and the private key is used to sign transactions to spend those cryptocurrencies. A private key and a public key are mathematically related, in fact, the public key is derived from the private key.
Also referred to as a slowdown, it is a temporary dip or brief reversal in the prevailing trend of an asset. The term is sometimes used interchangeably with 'reversal' or 'consolidation.' However, a pullback should not be confused with a trend reversal, which is a more permanent move against the prevailing trend.
Literally 'pump', in the cryptocurrency market it refers to the accelerated movement in the price increase of a certain asset.
Is a market manipulation scheme by an investor or group of investors who try to increase the price of an asset they own and then sell it en masse. They do this by making recommendations based on false, misleading, or grossly exaggerated statements. This scheme is illegal in many countries.
Software that stores the private keys that are needed to access the cryptocurrencies registered in an address or public key to spend them. There are several types of wallets depending on the way the private key is stored. Some use exchange houses as online wallets (Coinbase, Blockchain.info, Kraken, etc.) and others use physical wallets (Trezor, Ledger Nano, paper), the latter being the most secure. In any of its forms, if the private key is lost, the money is lost.
It is an investment scheme with a pyramidal structure, where investors create networks of subordinates or referrals whose money rewards the participation of whoever is located in the upper levels of the pyramid. It is not sustained for a long time because it does not generate real value.
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It is a period in which the price of an asset sees a sustained upward momentum. Typically, the rally will take place after a period where prices have been flat, trading in a narrow band, or experiencing a decline.
Consists of a malicious program that, after being installed without permission on the computer or mobile device, encrypts most of the files or the entire hard drive, making it inaccessible to the user. In exchange for decrypting the hijacked data again, the hackers demand a ransom (payment), usually in cryptocurrency, the amount of which depends on the affected victim.
The process of safely keeping track of the time of both the creation and modification of an electronic document. Nobody can change it once it has been saved.
A Replay attack is one of the most common vulnerabilities affecting blockchains. They are usually executed during the implementation of a hard fork on it, since it is where the best conditions exist for its implementation.
Protocol that invalidates that the transactions of a chain on a different chain can be replicated in case of a hard fork.
It is the point, on a price chart, where the immense inclination to sell an asset hinders the upward trajectory of the price. If the market price approaches the resistance level, investors may choose to close their positions and take profits, rather than risk the price falling. The meaning of resistance level comes from market psychology and investor behavior, as it indicates when an asset has reached a price level that market participants are reluctant to break (i.e. there is market resistance).
A mining Rig is an arrangement of hardware elements, be it CPU, GPU, FPGA or ASIC that have been arranged to perform cryptocurrency mining.
It is the process of identifying potential risks in an investment portfolio and adopting the corresponding measures to reduce said risks. Risk in an investment is the possibility that an open position does not allow the desired results to be achieved: as a consequence, a reduced return or losses greater than the money initially paid for the investment may be obtained. For this reason, investors often take steps to analyze the risks inherent in their trades and seek ways to reduce them.
It is the income obtained from an investment, in most cases in the form of payment of interest or dividends. Yield is one way an investment can make an investor money , and the other is by selling the asset. In most cases, the return is expressed as an annual percentage of the value of the original investment or its current market value.
This is the plan —usually reflected in a document— that a company or project describes to include everything it wants to achieve in the future. It is structured in goals accompanied by specific dates.
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Smallest amount or fraction of bitcoin. One Satoshi is equal to 0.00000001 BTC .
Creator or group of creators (true identity unknown) who created the Bitcoin protocol and its reference software, Bitcoin Core. In October 2008, Nakamoto published a paper describing a digital money system. On January 3, 2009, he launched the Bitcoin benchmark software.
property of a computer network—including blockchains—that indicates its ability (or not) to adapt to the growing number of users and their needs and evolve smoothly.
In the field of investments, scalping is the action of opening and then closing a position in a very short time, with the aim of obtaining benefits from very small price movements. Investors who carry out this tactic are called scalpers and it is common for them to carry out many operations of this type every day. The theory that justifies scalping is that small price variations are easier to predict than large ones.
All those projects or people related to Blockchain with a fraudulent purpose.
Refers to a person or entity that practices scams.
Digital currency generally not supported by a blockchain, whose financial scheme is fraudulent and tends to steal funds from investors and participants.
A seed node is a special node that allows the addition of new nodes to the network and maintains the strength of the network at all times, by allowing them to synchronize and obtain a copy of the data from the blockchain, replicating it and adding resistance and security to it.
This is the list of random words —usually 12— that represent the private key of a cryptocurrency address or wallet and that are necessary to recover the funds on another device in case of damage or loss of the original. Wallet services often give them to their new users.
Settlement is a business process by which securities or interests in securities are delivered, usually against (in simultaneous exchange) the payment of money, to fulfill contractual obligations, such as those arising from securities transactions . This process in cryptocurrency blockchains takes place after several network confirmations by PoW miners or PoS delegates.
Nearly unique 64 hexadecimal digit hash function of a fixed size of 256 bits (32 bytes). For example, bd4526534df7b33772c2f1ee26d97c39ff11379c8848e4e19d74ad849ef66423.
In economics, it is a type of security that indicates that the holder has proportional ownership in the issuing company and is entitled to a part of its assets and profits. Companies issue (sell) stock to raise funds to run their businesses. Shares are predominantly bought and sold on stock exchanges, although private sales may also take place.
literally translates to 'shit coin'. It's a pejorative term for an altcoin that doesn't seem to have much of a future due to a weak proposal, disorganization, or poorly done code.
the short position is a term that represents a bearish or short position applied to a security. A bearish or short position seeks to make a profit by predicting that prices will fall for certain securities in the market. A bearish or short position is created when a trader first sells a security with the intention of repurchasing or covering it later at a lower price.
Alternative block chain to the main Bitcoin block chain that can work with the main one and with other side chains. They can theoretically prevent illiquidity in the blockchain ecosystem, reduce volatility, reduce market fragmentation, increase security, and prevent fraud that has been observed with Altcoin projects. They are also ideal for creating test environments.
Signature Aggregation, is a cryptographic technique that is used to join two or more digital signatures. A process that seeks the union of the same so that they represent a unique and valid digital signature for a document or digital information, which can be easily verifiable.
It is the term that defines the situation in which the price at which your order is executed does not match the price at which it was requested. This is when the market moves against your trade, and by the time it takes your broker to process the order, the original price is no longer available.
Computer program that runs on a blockchain in a decentralized way. They are applications that run exactly as programmed without the possibility of downtime, censorship, fraud, or third-party interference. It works like an if-then statement in any other computer program except that it is done to interact with real assets. When a preprogrammed condition is triggered, not subject to any type of human evaluation, the smart contract executes the corresponding contractual clause. They can interact with other contracts, make decisions, store data, and send cryptocurrencies or tokens. They will exist and be executable as long as the entire network exists, they will only disappear if they were programmed to self-destruct.
literally, Sock Puppet. Refers to a false online identity that someone creates for the purpose of spying, deceiving, or even astroturfing.
Minimum amount of money for which a project would consider that they have reached their goal in the ICO. Normally, the soft cap is the minimum amount of money necessary to carry out all the developments of the project.
A minor update of the software code of a blockchain network that is compatible with previous versions and does not cause the network to fork, giving rise to what would be called a hard fork.
Specific programming language for developing smart contracts. Currently used on the Ethereum blockchain.
In economics, it consists of buying or selling assets with the intention of selling or buying them again later at a more favorable price. That is, buy low and resell high, or sell high and buy back low. It is equivalent to Trading.
In finance, a spread is the price difference between the purchase (offer) and sale (bid) prices indicated for an asset. The spread is a fundamental part of CFD trading, as it is the way in which the price of these derivatives is established. Many brokers, market makers, and other providers will charge their prices as a spread. The buy price of a spread asset will always be higher than the underlying market, while the ask price will always be slightly lower than it.
A stablecoin is a cryptocurrency created with the purpose of keeping its value stable.
The staking process consists of acquiring cryptocurrencies and keeping them locked in a wallet in order to receive profits or rewards.
It translates as 'emerging company' and that is exactly what it is, a company that is taking its first steps. Typically, you're considered a startup if it's two years old or less, or if you haven't yet achieved the growth needed to spend as much as you take in.
It is a group of actions that are used as an indicator of a sector, financial market or economy. As a general rule, a stock index consists of a set of the main actions of a particular market.
It is a service that offers individual and institutional investors the opportunity to buy and sell shares. Stock trading has evolved in recent decades, from physical paper documentation and phone deals to online transactions. But the process of buying and selling shares is generally the same: it requires access to the books of a stock exchange.
They are a type of order with which you can instruct your broker to execute a trade when a certain level less favorable than the current market price is reached. They are the opposite of limit orders, which allow you to tell a broker to buy or sell an asset at a certain price that is more favorable than the current market price.
As a general rule, the markets do not allow the asset price to fall below its support level, since, in theory, there are investors willing to buy and, as a consequence, the asset price will rise again. This is the opposite of the resistance level, which is the point at which the market seems reluctant to allow the asset price to continue rising. If an asset falls below its support level, that level is removed—and a new support level will have to be identified—or it is eventually confirmed, in the event that a large number of investors intervene and buy the asset.
Stop is an instruction to trade when a market price reaches a particular level that is less favorable than the current price. This means buying if the market reaches a specified higher price, or selling if it reaches a specified lower price. When the suffix 'loss' is added, it refers to closing a losing position, in this case it is a risk management tool. A stop may be executed with slippage depending on market liquidity conditions.
Called secret key or key cryptography, which is used to encrypt and decrypt the message at the sender and receiver, who have agreed on the key to use to encrypt the message sent by the sender and decrypt it by the receiver.
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Taproot is a technology that aims to improve Bitcoin's privacy and ability to create complex smart contracts. This in order to improve its benefits and help the evolution of its growing ecosystem.
Study of the behavior and historical evolution of the market that uses indicators and graphs to predict future price trends based on its past movements. Part of different methods or tools to draw predictive patterns in the graphs. For technical analysts, all the factors that stand out in the fundamental analysis are reflected in the price, so this, together with the trading volumes and open exchange positions, serve to predict future movements. For example, a bitcoin trader can use technical analysis to predict that a certain price, which used to be resistance, will become support or not.
Blockchain used so that community developers can test any type of code without harming the state of the blockchain.
Unit of value. Digital asset hosted on a blockchain that allows its owner to attribute it to a third party through the blockchain. It allows several layers of value in its configuration, which makes it a kind of digital trunk in which, depending on its programming, one or more rights can be included.
It is a process of transformation and representation of an asset or object within a blockchain. This process occurs through a digital representation of all its properties so that it can be exchanged or stored.
Study of the creation of economic incentives based on the creation of value units on which self-governing business models can be created, which empower the user to interact with their products, facilitating distribution and sharing the benefits among all stakeholders . participants.
It is negotiating and/or speculating in the financial markets with the aim of generating returns over time. Unlike an 'investment', trading is more short-term; weeks, days, hours and even minutes. You can trade in different assets, such as currencies, commodities, stocks or futures, among others.
It is a strategy conceived by an individual investor to systematize the evaluation of assets, risk management, investment types and goal setting. Most trading plans consist of two parts: the long-term goals and the timetable for achieving them.
It is a specific type of stop loss that automatically follows your position if the market goes up, securing your profit, but remains fixed if the market falls, and closes your position if the market moves against you.
Group of network transactions that are grouped into a block that receives its hash and is added to the blockchain.
Within the world of cryptocurrencies, it is a small fee that can be added to transactions sent through a blockchain to ensure that they are carried out quickly and effectively. The transaction fee is usually given to the miners or delegates of the network.
Transaction malleability refers to the ability for an attacker to modify or alter the hash that identifies a transaction within the blockchain. A situation that can undoubtedly alter and generate serious problems within a payment system such as cryptocurrencies.
Place where the transactions made by the users of a blockchain that have not yet been validated by the miners are located, and where the miners choose which transactions to add to the next block in the chain.
In the context of forks, it is that valid transaction in the two chains of blocks created as a result of the fork. Sending coins from a chain can lead to sending coins on the new chain.
A programming language that has computational power equal to the Universal Turing Machine. System that in theory could perform any type of calculation if unlimited physical resources are available. Applied to blockchain technology and fundamentally to smart contracts, it refers to the ability of a language with this characteristic to be applied to solve any computational problem and implement complex structures such as loops.
It is the removal of a certain number of tokens by the development team of a specific project. All burned tokens automatically cease to function and have value.
U
Uniswap is a decentralized exchange protocol (DEX) that has taken a huge role in the crypto world due to its particular operating system. A fact that has led it to constant growth and to become the largest DEX in the crypto world.
They represent the right to use a product or service that will have a specific function within the ecosystem of a project. They are not intended as an investment, but rather offer users access to a future product or service. To differentiate themselves from ICOs, they are often defined as Token Generation Events (TGE) or Token Distribution Events (TDE).
USDT, integrate into the payment system of both companies and, additionally, present a much more transparent operating structure than its counterparts. The stablecoins or stable cryptocurrencies arrived to change the way in which we mobilize and protect our money from the volatility of the rest of the cryptocurrencies. That is precisely one of the functions of USDT, the cryptocurrency that is always worth a dollar and that we invite you to discover.
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He is a Russian programmer and writer known primarily for being the co-founder and leader of Ethereum and the co-founder of Bitcoin Magazine.
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Software that manages addresses (accounts) and keys (passwords) of blockchains to consult, send and receive crypto assets. There are wallets with applications for mobile phones, desktops, at ATMs or exchange houses, as well as hardware (see definition of 'cold wallet').
They are within the Cold Wallet category and are normally USB format drives that connect to the computer and allow us to safely store our cryptocurrencies and private keys. They usually offer the option of adding a PIN to unlock the drive.
Process by which the private key of a Bitcoin address (or any other cryptocurrency) is on a piece of paper. In this way, you can send funds to the associated address, without running the risk of the private key being in a program with an Internet connection. In turn, this process is also a Cold Wallet or Cold Storage. When you want to regain control of the funds, you must enter said key in a client (of the corresponding cryptocurrency) with an Internet connection.
A term used to refer to individuals or entities that own a large amount of a certain cryptocurrency. They are so called because, like a whale in the ocean, they can cause sudden movements in the market with their purchases or sales.
Communication protocol for DApps deployed on the Ethereum blockchain.
Technical document that describes the main characteristics or properties of a project based on blockchain technology and its corresponding cryptocurrency.
Wrapped Bitcoin or wBTC, is an ERC-20 token whose value is backed 1:1 with Bitcoin, and whose objective is to facilitate the migration of value from Bitcoin to the Ethereum DeFi ecosystem.
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XRP is the centralized cryptocurrency created by the company Ripple Labs, as a solution aimed at allowing banks and financial institutions of all kinds to use the power of blockchain technology to improve their cross-border transaction systems.
Y
One of the most important DeFi protocols is Yearn Finance (YFI), a project that seeks to facilitate access to yield farming and liquidity mining strategies in the increasingly extensive and economically important community of decentralized finance (DeFi) projects.
Yield farming is a strategy by which investors seek to establish the best form of investment to maximize their profits, leveraging their positions while using one or more DeFi platforms in their operations.
In the world of cryptocurrencies, while the White Paper is a general descriptive document of the platform and its objectives, the yellow paper is a more extensive document that delves into the technical and scientific details of the project.
Z
Zcash (ZEC) is a cryptocurrency focused on maintaining maximum security, privacy and even anonymity for its users in all situations, using top-level cryptographic technology.
It is a cryptographic protocol used to create highly secure distributed systems. The ZKP makes it possible to share and verify information without revealing unnecessary data about it.
zk-SNARKs are a type of cryptographic test designed to ensure the highest possible privacy. To achieve this, zk-SNARKs are built using zero-knowledge protocols or proofs, an interesting technique that allows us to validate and verify information without having to give access to it.
The zk-STARK is a type of highly secure cryptographic proof that uses the principles of Zero Knowledge Proofs (ZKP) to create encrypted data that can be easily verified without revealing sensitive information about said data, and best of all, with resistance. To quantum computing, guaranteeing its security in the not so distant future.