The word “crypto” is an umbrella term used to describe the industry as a whole but there may be some industry specific lingo that you’re not familiar with. This ongoing series will break down some of the other key terms used in this space.
Blockchain
A distributed accounting system consisting of “blocks” of digital information. Blocks are created sequentially with the prior block being incorporated into the next, effectively “chaining” them together.
Decentralized
The opposite of centralized. The property of having a system structured in a way where there is no single point of control.
Cryptocurrency
Digitally native currency using cryptographic technology that allows transactions to take place securely without an intermediary.
Bitcoin
The first widely adopted cryptocurrency. A decentralized digital currency used for peer to peer transactions on the bitcoin blockchain. Invented by an unknown individual named Satoshi Nakamoto in 2008.
Ethereum
An open-sourced decentralized blockchain network with expanded functionality. Using smart contracts which allow for programmable cryptocurrencies. Developed in 2013 by Vitalik Buterin and Gavin Wood
Wallet
A place where digital assets are stored, sent and received. Wallets can come in the form of a device or application.
Altcoin
Bitcoin was the first iteration of cryptocurrencies but since then there have been 1000s of duplicates which have now been labeled as “altcoins” as in “alternative coins”.
dApp
Decentralized applications(dApp) are blockchain native applications. Adding the functionality of blockchain systems to regular applications allows for security, transparency and censorship resistance.
NFT
Non-fungible token(NFT) A digital asset represented by a unique signature on the blockchain. Uses blockchain technology that allows for digital authenticity as well verification of ownership. Currently the most popular forms of NFTs are images, audio files and documents.
DeFi
Decentralized Finance(DeFi) a system developed as an alternative to centralized forms of financial services. Offering similar banking services such as earning interest, borrowing, lending and trading but using blockchain technology to remove intermediaries.
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