All articles about: Lexicon

Public Key

What is a Public Key? A public key is a unique address needed to perform transactions within a crypto network. It’s all about making payments and transactions. The key can… Read more

Public-Private Key

What is a Public-Private Key? Though the name Public-Private Key sounds contradictory, this is not the case – each wallet has a combination of public and private encryption that are… Read more

Proof of Work

Proof of Work – The Algorithm for Mining Cryptocurrency The basis for mining digital currencies is an algorithm called Proof of Work (PoW). Expressively, PoW means “computational puzzle or cryptographic… Read more

Proof-of-Stake

What is Meant by Proof-of-Stake? Proof-of-stake or PoS is an algorithm that states that a person can verify transactions based on the number of tokens in their own wallet. It… Read more

Pool Mining

What is Pool Mining? In the context of mining a cryptocurrency, pool mining is when different miners combine their computing capacity to gain a greater chance of succeeding in completing… Read more

Physical Mining

What is Meant by the Term “Physical Mining”? Physical Mining – In order to enter into the world of the cryptocurrencies in a cost-effective way, many users rely on mining,… Read more

Permissioned Ledger

What is a Permissioned Ledger? As a matter of fact, the Permissioned Ledger is the blockchain itself. Anyone can read the blockchain and anyone can make legitimate changes. Any miner can… Read more

Peer-to-peer

What is a Peer-to-Peer Network? A peer-to-peer network also referred to as a P2P network, a computer-to-computer connection or a cross-communication, is a type of communication between computers within a… Read more

Passphrase

What is a Passphrase? A passphrase is commonly used to encrypt access to software or an electronic system. It can be compared to a classic password on a PC or… Read more

Oracles

What are Oracles? Oracles – Though a blockchain oracle may sound like an ancient term, it’s far from outdated, though because of their function, they take on a comparable role.… Read more

On-Ledger Currency

What is an On-Ledger Currency? Each cryptocurrency is also an on-ledger currency. This is because it is stored in a wallet. This can be either an online wallet, a software wallet… Read more

Full Node

What is a Full Node? A full node is a program that fully checks transactions and blocks. Almost all full nodes support the network by accepting transactions and blocks from… Read more

Multipool Mining

What is Multipool Mining? Multipool mining is the process of moving from one cryptocurrency to the next, mining the most profitable option at the time. Multipool miners take into account the… Read more

Multi-Signature

What is a Multi-Signature? Multi-Signature is a scheme for implementing an electronic signature that requires authentic keys from a group of members. This is basically a variant of the threshold… Read more

Mist

What is MIST? MIST is the most important official wallet for the Etherium system. It must be downloaded from the official source located on the Ethereum developer’s site of Github.… Read more

Mining Farm

Mining Farm – Mining Cryptocurrency at Home – Still a Viable Prospect? Let´s take a lott at where it all began with the Mining Farm. When bitcoin mining began, mining… Read more

Cryptographic Signature

Cryptographic Signature The cryptographic signature is a prop of an electronic document. It arises as a result of a cryptographic transformation of private signature key information. The cryptographic signature makes… Read more

SPV

SPV – Simple Payment Verification Simple Payment Verification, the SPV, is a technique described in Satoshi Nakamoto’s work. SPV allows a lightweight node client to verify that a transaction is… Read more

Wallet

What is a Wallet? Simply, a wallet is where you can save or keep your money, for making purchases on the Internet. Probably, one of the most well-known wallet providers… Read more

Vitalik Buterin

Who is Vitalik Buterin Born January 31, 1994, in Kolomna, Russia, Vitalik Buterin is the Canadian-raised programmer, co-founder, former publisher of the print magazine Bitcoin Magazine, and one of the… Read more

Unpermissioned Ledger

What does Unpermissioned Ledger mean? An unpermissioned ledger does not require approval by private or social institutions. This means that an account cannot be permanently monitored and controlled by any bank… Read more

Transaction Fee

What is a transaction fee? Transaction fee is the amount of money withheld by a bank, financial institution or service provider when transactions take place. They cover the costs of… Read more

Transaction Block

What is a transaction block? The Transaction Block is required for transaction data, which is permanently recorded in file structures called blocks. They can be listed as the individual pages… Read more

Token

What is a token of cryptocurrency? A token is a unit of value. Basically, each cryptocurrency has a tradable good, such as the corresponding coins, certificates, virtual items or points.… Read more

The Flippening

What is the Background of The Flippening? In cryptocurrency enthusiast circles, the term the flippening is becoming increasingly important. It is a hypothesis made by experts on the scene. According… Read more

Solo Mining

What is meant by Solo mining of a cryptocurrency? Solo Mining is one of the central processes when talking about cryptocurrencies because this process writes transactions into blocks. Miners basically… Read more

Smart Contracts

What are smart contracts? Smart contracts are computer algorithms designed to complete and sustain commercial contracts in blockchain technology. Parties sign a smart contract using the same methods as when… Read more

SHA 256

What does SHA 256 mean? The abbreviation SHA 256 is a function that forms the core of cryptocurrencies such as Bitcoin, Bitcoin Cash and Bytecoin. This hash function belongs to… Read more

Satoshi Nakamoto

Satoshi Nakamoto: the inventor of Bitcoin Satoshi Nakamoto is a name in connection with Bitcoins, which are on everyone’s lips as a hot new investment opportunity, thanks to their unique… Read more

Ripple

What is Ripple? Ripple (XRP) is an open-source protocol that provides the foundation for a payment system. The idea came from Ryan Fugger but was later developed by Ripple Labs.… Read more

Ring Signature

What does Ring signature mean? The Ring Signature is an electronic signature algorithm. It indicates that a message has been signed by one of the potential signatory list members. The signatory… Read more

QR Code

What is a QR Code? A Quick Response (QR) code, or short QR Code, is a sort of square, black and white code that can be scanned by an electronic… Read more

Proof of Authority

What is meant by Proof of authority? Proof of authority (PoA) is an algorithm used as part of blockchains to directly handle open transactions. Here, a consensus process is used… Read more

Mining Pool

Mining pool – how to dig today The great rush to mine Bitcoins and other digital currency has demanded completely new conditions to a mining pool when it comes to… Read more

Miner

What Does Miner Mean? Miner is an English word that originates from the German word, “Schürfer”, meaning “‘prospector”. Just as gold prospectors mined the earth in the past, nowadays it… Read more

Sniper Wallet

What is a sniper wallet? A sniper wallet is a digital wallet used to store cryptocurrencies. The special thing about this wallet is its speed — that is, all transactions… Read more

Off-Ledger Currency

What is Off-Ledger Currency? First of all, the term Off-Ledger Currency has to do with the currencies in general. All currencies that can be used with but weren’t created for… Read more

Lightning Network

What is a lightning network? A lightning network is a kind of peer-to-peer application built on a blockchain. Its aim is to simplify transactions that must be performed within the… Read more

KYC Procedure

What is the KYC Procedure? The KYC Procedure, short form of Know Your Customer Procedure (often abbreviated to KYC) is a term commonly used in the finance sector. The term… Read more

Cryptocurrencies

What are cryptocurrencies? Cryptocurrencies are digital currencies based on a decentralized accounting system. This accounting system is referred to as a blockchain, which stores transactions that are encrypted by means… Read more

Cryptographic Hash Function

The Cryptographic Hash Function – The Heart of the Cryptocurrency The name ‘cryptocurrency’ is a clear indication of the connection between bitcoin and co. on the one hand, and cryptography… Read more

Cryptography

Meaning and Reasons for Cryptography The term cryptography comes from the ancient Greek words kryptos, which means “secret” or “hidden”, and graphein which means “writing”. Cryptography is necessary when we… Read more

Kraken

What is Kraken? The Kraken cryptocurrency stock exchange was opened in 2011 in San Francisco. In addition to a certain number of cryptocurrencies, the exchange trades in Canadian dollars, US… Read more

Inflation

What happens during a period of inflation? Inflation is the process in which the currency of a country loses value at different levels. One unit of each currency purchases less… Read more

Identity Management

What is identity management? Identity management describes the personal handling of one’s own identity. In times when the internet is becoming an increasingly important part of many people’s lives, the… Read more

Hash Rate

What is a hash rate? A hash is the output of a hash function, and in the context of Bitcoin, the hash rate is the rate at which a computer… Read more

Hardware

The difference between hardware and software Hardware refers to physical electronics such as computers, tablets and smartphones. It is the opposite of the software, which includes all virtual and non-physical… Read more

Halving

Halving: a sophisticated system Halving is one of the most important programming attributes forged by the inventor of the digital currency. Halving – by 50 percent every four years –… Read more

GPU

What does GPU mean? GPU is the abbreviation of Graphics Processing Unit. It constitutes an important element of cryptocurrency, especially when it comes to how new blocks are created within… Read more

Gigahash

Gigahash explained Gigahash is a unit of measurement for computing power used during mining, and describes the performance of the hardware. The mining process involves solving mathematical problems using particular… Read more

Genesis Block

What is ment by Genesis Block? The genesis block is the first block of a blockchain. Modern versions of Bitcoin number it as block 0, although earlier versions labeled it as… Read more

Fork

What is the fork of a blockchain? A fork is an event where the source code of an existing blockchain is modified and then split off as a new blockchain.… Read more

Fiat Money

What is fiat money and how does it differ from goods money? Fiat money is an object that has no intrinsic value and is still used as a medium of… Read more

Faucet

What is a faucet? Faucet is a reward system in the form of a website or app. The rewards at Bitcoin are spent in the form of a Satoshi, which… Read more

Exodus

What is Exodus? Exodus is an increasingly popular e-wallet that can usually be installed on all computers running a major operating system. In other words, the program is a repository… Read more

ECDSA

What is an ECDSA? ECDSA is an abbreviation that stands for “Elliptic Curve Digital Signature Algorithm”. It is an encryption system that is a variation of the classical Digital Signature… Read more

E-Wallet

What exactly is an e-wallet? E-wallet, also known as cyber wallets, is used to store funds on electronic platforms. Additionally, payment transactions for goods and services can be carried out… Read more

E-Commerce

What is e-commerce? E-commerce is understood to be the trade (i.e. purchase and sale) of products and services online. The letter E stands for electronic transaction processing. The complement to… Read more

Double Spending

What does Double Spending mean? Double spending or double issues involve the resale of the same assets. We usually talk about electronic payment systems that have the inherent ability to… Read more

Distributed Ledger Technology

What is Distributed Ledger Technology? A distributed ledger is a consensus of replicated, shared and synchronized digital data, dispersed across multiple institutions, locations or countries. Also referred to as shared ledger… Read more

Difficulty

What is meant by the difficulty of a cryptocurrency? The difficulty of a cryptocurrency refers to its current difficulty in confirming blocks. These blocks are needed to store transactions, because… Read more

Deflation

What is deflation? Deflation refers to the phenomenon whereby more and more goods can be purchased with one unit of a currency. In other words, the value of money within… Read more

DDoS

What does DDoS, the Distributed Denial of Service mean? A Distributed Denial of Service (DDoS) is a type of computer attack where multiple hosts overload a server. The result is… Read more

Dash

What is Dash? In 2014, the cryptocurrency Dash was founded, at which time it was still traded under the name XCoin. After just one month, it was renamed Darkcoin and… Read more

dApp

 What is a dApp? Decentralized application, or short dApp, is an application that runs on a P2P computer network instead of a single computer. dApps have been around since the… Read more

DAO

What is DAO? The Data Access Object, in short form the DAO, is an object that provides an abstract interface for any type of database or storage mechanism. Certain functions… Read more

Cryptocurrency

 What is a cryptocurrency? Cryptocurrency refers to all the currencies that are ‘mined’ or created online. While conventional money is issued by states or national central banks, private founders are… Read more

CryptoCompare

What is CryptoCompare? CryptoCompare is a helpful Internet platform that has made a name for itself since its inception in 2014. A website that compares cryptocurrencies, it’s built like a… Read more

Consensus Point

What businesses is Consensus Point dedicated to? The company Consensus Point is active in the forecasting market. It is often regarded as one of the pioneers in this field. In… Read more

Confirmation

What is meant by a confirmation? Confirmation is a term that is frequently used in the digital world. It is usually seen when an input has been made and is… Read more

Cloud Mining

What does Cloud Mining mean? Cloud mining was created when it became apparent that with the increasing difficulty of solving the mathematical task, mining became unprofitable for the individual. Expensive… Read more

Central ledger

The structure of a central ledger A central ledger is the centerpiece of the accounting operations of commercial enterprises. General ledgers summarize all the financial accounts using the standard double-entry… Read more

Blockchain

What is meant by the term Blockchain? A blockchain is a public list that represents all transactions of a cryptocurrency in chronological order. All confirmed bookings are stored and can… Read more

Block Reward

What is a block reward? A block reward is a reward granted for completing a block as part of the Bitcoin cryptocurrency. This reward is distributed by the network to… Read more

Block Height

What is actually meant by Block Height? Any Bitcoin miner who successfully hashed a block header valued below the target threshold can add the entire block height to the block… Read more

Block

What is a block? A block is an essential part of a blockchain. It contains some, or in some cases all recently completed transactions not yet written to blocks. It… Read more

Bitcoin ATM

What is a Bitcoin ATM? Bitcoin ATM comes from ATM, wich comes from the English term Automated Teller Machine. In the past, with the increasing presence of Bitcoins, more and… Read more

Bitcoin Investment Trust

What is the Bitcoin Investment Trust? The Bitcoin Investment Trust, or BIT, is one of the first securities with which Bitcoin could be invested and allows cryptocurrencies, such as Bitcoin,… Read more

Bit

What is a bit? One bit (short for “binary digit”) is the smallest unit of measure used to quantify computer data. It contains a single binary value of 0 or… Read more

Bitcoin Whitepaper

What is the Bitcoin Whitepaper? The Bitcoin Whitepaper is a document that laid the foundation for the Bitcoin cryptocurrency. This document was distributed by Satoshi, the founder of Bitcoin, on… Read more

Bitcoin Address

Bitcoin Address : how to send and receive Bitcoins Bitcoin address is an alphanumeric string (i.e. one that comprises letters and numbers) of between 27 and 34 characters, created according… Read more

Bitcoin Price Index

Which Bitcoin exchanges belong to the XBP? The Bitcoin Price Index used to be written in short form XBP. The criteria for inclusion in XBP are: USD exchanges must serve… Read more

Bancor

The world currency Bancor Bancor was part of Keynes’ plan for the unity of the international monetary system after the Second World War. The Bancor price would be determined in… Read more

Attestation Ledger

The content and design of the attestation ledger An attestation ledger is an account book designed to provide evidence of individual transactions. Each transaction also represents a financial transaction that… Read more

ASIC

What is an ASIC? ASIC is the acronym of “application-specific integrated circuit”. Basically, this means computer chips or processors that can be programmed for a single purpose and, accordingly, produced… Read more

Agreement Ledger

What is ment by an Agreement Ledger? The agreement ledger is a business ledger in which certain agreements are defined. Participants voluntarily submit to these agreements without entering into more… Read more

AdvCash

What does AdvCash mean? The Advanced Cash Payment System (AdvCash) is a combination of a payment platform and an electronic currency in one system, offering the following services: money exchange,… Read more

Light Node

What is a light node? Light Node downloads all transactions and histories to ensure that all participants follow the crypto-currency consensus rules. It enforces all the rules of a consensus.… Read more

Legalization

Legalization in the financial world In the context of the financial world and particularly cryptocurrencies, legalization refers to the approval of a particular financial product for private investors. Examples of… Read more

Exchange

Exchange in the field of cryptocurrencies   The term ‘bill of exchange’ usually refers to exchange of money from one currency to another. Most people are familiar with money exchange,… Read more

Consortium Blockchain

What is a Consortium Blockchain? A consortium blockchain is a blockchain in which the consensus process is controlled by a preselected set of nodes. One could, for example, have a consortium… Read more

Chain Linking

What is meant by chain linking? In the context of a blockchain, chain linking means that two blockchains are linked together. Each blockchain is a sequence of individual blocks, which… Read more

Coin

The coin in general In general, a Coin is metallic money, usually accepted as legal tender and – at the time of their inception – made of gold, silver and… Read more

Two-Factor Authentication

What is meant by the Two-Factor Authentication? Two-factor authentication (commonly known as 2FA) is a method of confirming the identity of a user with a combination of two different elements. Two-factor… Read more

Bitcoin Transaction Fee

Is there really a Bitcoin Transaction Fee? The Bitcoin Transaction fee does exist. Bitcoin is the world’s best-known cryptocurrency. Due to its rapid increase in value, Bitcoin has attracted a… Read more

51% Attack

What does the term 51% Attack mean? The 51% attack refers to the attack on a blockchain – usually the Bitcoins or other cryptocurrencies for which such an attack is… Read more

Consensus Process

What does the Consensus Process mean? The Consensus Process ist a term in use with the Blockchain.Basically, cryptocurrencies renounce a central, regulating organization and instead focus on the aspect of… Read more

Coin Market Cap

What is a Coin Market Cap? Coin Market Cap is a website that deals primarily with the stock market data of various cryptocurrencies. In addition to the market capitalization, the… Read more

Altcoin

What does Altcoin mean? The term “altcoin” is comprised of “alt” and “coin”, both words originating from the English words for “alternative” and “coin”. “Altcoin” was only coined in the… Read more

Blockchain Transactions

What is ment by the term Blockchain Transactions? Blockchain transactions are referred to as a confirmation and is performed by the existing network. This is also referred to as mining because… Read more

Initial Coin Offering

What is the Initial Coin Offering? An Initial Coin Offering (ICO), sometimes referred to as a Public Coin Offering, is an unregulated method of crowdfunding. This process is exclusively used within… Read more

Bitcoin Currency Exchange

What´s a Bitcoin Currency Exchange? The term Bitcoin Currency Exchange does not seem to fit modern cryptocurrencies such as Bitcoin. The simple possibility, however, of exchanging the non-centrally generated Bitcoins in… Read more

Bitcoin Client

What you should know about Bitcoin Client Basically, the Bitcoin client is the software behing the well-known cryptocurreny. Bitcoin is a centralized network in which each terminal or node is… Read more

Dynamic Mining

What does the term Dynamic Mining mean? Dynamic mining is a special type of mining. Dynamic miners don’t just focus on the mining of special cryptocurrency tokens. Instead, they use… Read more

Ledger

What is a Ledger exactly? A ledger is a traditional account book in the English-speaking economic area. In this book, all information about money movements is entered, such as debits,… Read more

Mining

What does Mining mean? Mining is the process by which transactions of a cryptographic currency are confirmed. In addition to this, new coins are created during the process. In computation-intensive… Read more

Bitcoin Exchange

What is Bitcoin Exchange? Cryptocurrency, or more precisely Bitcoin, is traded on a Bitcoin exchange. It’s a venue that brings potential buyers and sellers together. Depending on the exact Bitcoin… Read more