Blockchain Glossary For Beginners

07/19/2019

The interesting world of Blockchain has revolutionized the way we think about money. And, while it may be easy for some to comprehend, most of us have many questions.

It makes total sense since we got introduced to a whole new glossary that seems complicated to “not so technical” a few of us.

As such, in our efforts to help you learn more about Blockchain, Bitcoin and everything related to cryptocurrency, we created a list of frequently asked questions.

We answer those in an easy-to-understand way, in order to help all new investors improve their knowledge.

So go ahead and clear up any doubts, by clicking on the question you’d like to know the answer to.

Content
What is Blockchain – A Short Description on How it Works

Everything in the crypto world is possible and achievable thanks to the blockchain. But what exactly is this technology and how does it work?
Are Bitcoin addresses case sensitive? Check the facts

When sending Bitcoin, there are many questions that may come to mind. One of them is whether or not Bitcoin addresses are case sensitive.
What Is a Private Key And What Is Its Use?

Private keys play a very important role when it comes to the safety and usability of cryptocurrency transactions.
What is a Public Address And What Is Its Use?

Blockchain Addresses are an important component when it comes to understanding cryptocurrencies. What is a public address, the one crypto term that you have seen a few too many times?
What is an Airdrop and What You Should Know About It

After the increased popularity of ICOs, airdrops gained in popularity as an alternative method of token distribution.
What Are Mining Rewards?

Mining rewards are very important for cryptocurrency miners. If you want to learn more about the process and its benefits – click on “Read More”
What is a Mining Pool and What Are Its Benefits?

Mining pools are increasing in popularity not only to save on costs but also to increase one’s chances for mining rewards. People started using them after individual mining became less profitable and required more upfront costs. But what is a mining pool exactly?
What is Mining Difficulty?

Mining difficulty is one of the most important aspects when it comes to cryptocurrency mining. Some cryptocurrencies are harder to mine than others. Bellow, we will explain what causes such difficulty.
What are Smart Contracts And Why Are They Important?

In the context of cryptocurrency, when one hears about Smart contracts, Ethereum is usually the first thing that comes to mind. But what exactly are those contracts and how do they help cryptocurrencies become a viable payment method worldwide?
What Are Transaction Blocks?

Do you want to know more about transaction blocks, what kind of information they can store in them and what they mean to the crypto world?
What Does “Buy the Dip” Mean?

If you bought the dip you probably made a profitable trade. Find out what buy the dip stands for.
What is a Bear Market And How Does It Affect Crypto?

After going through a bear market for more than a year, during that last few days of 2017 and in 2018, you most likely know how this one affects cryptocurrencies. Nonetheless, here is the detailed definition of the term.
What is a Bull Market And Are We Currently In One?

You keep hearing the term everywhere. Everyone hopes and believes a new bull market is underway. But what does the term stand for?
What is Hash Rate?

Cryptocurrency miners often use the term hash rate when discussing their mining equipment. If you are interested in cryptocurrency mining you should definitely know what the term stands for and how it works.
What is PoS And How Does PoS Work?

Do you want to know what is PoS and how one can conclude that a coin has a Proof of Stake protocol? Then read our explanation below.
What Is PoW And What Are The Best PoW Coins?

Do you want to know more about Proof of Work and get a better insight into what Pow is? Read further to find out.
What is SHA-256 and How Does it Relate to Bitcoin Mining?

What is SHA-256 encryption algorithm and why is it so popular in the cryptocurrency world? Below we explain the reasons why.
What is Double Spending and is it a Threat to Crypto?

Cryptocurrencies are solving a problem that is most commonly known as double-spending.
What is DAO and How is it a Revolutionary Business Model?

The revolutionary idea of Bitcoin contributor Mike Hearn could help develop leaderless organizations 30-or-so years into the future.
What is Cold Storage in the Context of Cryptocurrency?

Store your cryptocurrency where hackers can’t get their hands on – the cold storage.
What is a Hardware Wallet and How Does it Work?

Storing cryptocurrency is easy to do. But not all wallets are secure and even less are impenetrable. Hardware wallets, in this case, offer the best security for your coins.
What is a Buy Order in the Context of Cryptocurrency?

Did you know that you don’t necessarily need to buy Bitcoin on the spot? You can also set a buy order for it.
What is a Hardcap and what happens when it’s reached?

The one thing all cryptocurrency startups hope to reach through their initial coin offerings. Let’s explore what is a hardcap in further detail.
What is a Shitcoin and which coins are labeled as such?

Ever came across this term on social media conversations or crypto-related forums? Well, you will now know what the term stands for.
What is a Softcap and what happens if its not reached?

You often see this term circulating around ICOs and IEOs. What is a softcap stand and what happens if a company cannot reach it?
What is a Store of Value in the context of cryptocurrency?

Terms like this one can often be confusing since they can be applied to a broad range of financial markets. For that reason, we will explain what is a store of value in the context of cryptocurrency.
What is a Transaction Fee and who receives it?

Every time you send your Bitcoin, you pay a transaction fee. Here’s where these fees go.
What is an IEO and how is it different from an ICO?

After the rise and fall of ICOs, a safer model for token sales is coming to reward early investors of new crypto projects.
What is DYOR and why it is important for all investors?

The term has been circulating in cryptocurrency and blockchain communities for a while now. But what is DYOR?
What is HODL and why has it grown in popularity?

The crypto-vocabulary is rich and contains many unusual words you won’t hear elsewhere. “Hodl” or “hodling” is a widespread term that every crypto investor should know.
What are Masternodes and how are they different from mining?

You’ve heard about them, and they usually are more expensive compared to traditional mining. But what are masternodes?
What is a Bitcoin whale and how do they affect the crypto market?

You often hear about whales selling or stocking up on Bitcoin and other cryptocurrencies. In this article, we explain the term and what makes one qualify as one.
What is a Digital Asset and is it different from cryptos?

You’ve seen this term mentioned multiple times within the context of cryptocurrencies. But what exactly is a digital asset and how is it different from a cryptocurrency?
What is an ATH (All-Time High) and when is the next?

The moment everyone is ecstatic about their profits. When your favorite crypto coin does the unexpected. It is the moment of a new All-Time High.
What is Crypto Arbitrage and is it worth doing it?

Arbitrage trading is very common amongst traders of financial markets. But how does it work?
What is FIAT money and can you use it to buy Bitcoin?

In many cryptocurrency forums and Social Media groups, you will see the term FIAT money being mentioned. But what exactly does the term stand for?
What is FUD, who uses it and why is it popular in crypto?

A term that is very common in cryptocurrency-related forums and online communities. What does it stand for and what is its aim?
What is Hashcash and how is it connected to Bitcoin?

Hashcash is an important part of what is today known as Bitcoin mining. But what does that term mean?
What is KYC and why it is a requirement for exchanges?

In the context of cryptocurrency, most exchanges will require you to go through a KYC process before buying and selling any Bitcoin or other cryptocurrencies. The process of doing so is pretty straightforward.
What is Libra Coin – Facebook’s very own digital currency

Facebook recently made a statement regarding the release of their very own digital currency.
What is REKT And How Did the Term Grow in Popularity?

With the introduction of Bitcoin margin trading, the term REKT rose in popularity. But what exactly does it stand for?
What is dApp and how is it changing the world as we know it?

If you’ve been into crypto long enough, you’ve probably come across the term dApp. But what is dApp and how is it important for the future?
What is Consensus and How is it Relevant to Crypto?

The world of cryptocurrency is governed by complicated processes that ensure the dynamic function and growth of the space. One such process is commonly known as “consensus”.
What is a DEX and why you should know about it?

Decentralized exchanges are leading the crypto-world into a state of less fake trading volumes, and price manipulation. Here is what you should know.
What is the Genesis Block and why should you know about it?

The “birth” block of Bitcoin signalized the beginning of the world of crypto. But what is the genesis block exactly?
What is P2P and how does the term relate to Bitcoin?

Exchanging items from one person to another has been around since barter trade times. Now, Bitcoin proudly wears the same label. But what is P2P exactly?
What is a stablecoin and is it a good investment?

In the volatile world of crypto, stablecoins are the safehouse to “lock” one’s profits. But what is a stablecoin exactly and is it inherently a good concept?
What is a whitepaper and why do new crypto projects need it?

New companies always present their idea to investors using a compact business plan. Most often, that is a paper that explains the idea in detail and gives information regarding their future plans. So, what is a whitepaper and how is it similar to this?
What is a Coin Burn and how does it affect cryptocurrencies?

Many cryptocurrencies have applied this model to their design in order to increase in value over time. Others do it manually. But what is a coinburn and how does it affect these cryptocurrencies?
What is a bull trap and how does it affect crypto-traders?

When you buy Bitcoin after a short upward price movement, you feel like everything will soon be going to the “moon”. Only… reality is a little different. After you buy, you realize you fell for a trap and you are now losing money. So, what is a bull trap and how does it affect cryptocurrency traders?
What is 2FA and Why do You Need to Know About it?

2FA has been used by millions of people over the years, in order to protect their personal information and maintain full control of their accounts. So, what is 2fa, how does it protect your account and how can you set it up for yourself?
Are Bitcoin ATMs Safe And How Do They Operate?

You have probably seen them before. Bitcoin ATMs are increasing in popularity, making BTC purchases easier than ever. But are Bitcoin ATMs safe to use? Before we can answer that question, we first need to see how they work.
Are Bitcoin Transactions Traceable? Yes and No!

A very big debate in the crypto community involves the traceability of Bitcoin transfers. Some claim that all transactions are anonymous. Others believe that this pseudo-anonymity offers no additional benefits. What is the truth?
Are Blockchain Wallets Safe? Best Security Practices

With all the talks about hacked exchanges and crypto wallets, one has to wonder how to ensure the safety of his funds. Are blockchain wallets safe? Do they need additional layers of security?

In this section, we will answer all these questions.
Can Bitcoin be Hacked? Realistic Doomsday Scenarios

One of the major concerns of Bitcoin investors is whether or not their digital asset has some form of security against hacking.
Can Bitcoin be Traced if Used for Illegal Activities?

Bitcoin is known to offer privacy and decentralization. But can Bitcoin be traced if used for criminal activities?
Can Blockchain be Hacked? A Look Into the Facts

By now, you should have a good idea of what the blockchain is and how it helps to improve the world. But you may still have many questions.

One of them involves the possibility of hacking a blockchain. Is that even possible? And if yes, how does it happen and what is the result?
How Bitcoin Wallets Work for Each Cryptocurrency

This short section will teach you how Bitcoin wallets work and will explore the main features and types of Bitcoin wallets.
How Many Bitcoins are Lost Throughout the Years?

Satoshi Nakamoto introduced a limited supply of 21 million coins when he built the Bitcoin protocol. Throughout time, many of those coins have become inaccessible. So how many Bitcoins are lost by now?
How Many Blockchain Developers Are There In 2020?

How many Blockchain developers are there and what does it take to become one? In this short section, we explain everything you need to know.
How Many Cryptocurrencies Are There in 2020?

If you’ve ever wondered how many cryptocurrencies are there on the market, you’ve come to the right place.

Keep on reading to find out how cryptocurrencies are listed and calculated into the total value of the market and where you can consult this data.
How Much Bitcoin Should I Own to Care About the Industry?

Is there a minimum amount of Bitcoin you should hold to truly care about the cryptocurrency industry?
How Often Does Bitcoin Value Change Throughout Time?

This section will answer the question of how often does Bitcoin value change and what are the reasons behind its volatility.
Learning How to Mine Ethereum on Mac – Blockchain FAQs

This short guide will help you understand how to mine Ethereum on Mac computer. Keep reading to learn about the requirements, and well as the pros and cons of the process.
RSA Algorithm Explained in Simple Words – Blockchain FAQs

Ever wanted the RSA algorithm explained to you in simple terms? In this short section, you will learn what the RSA algorithm is, how it works and its applications in the cryptocurrency world.
What Are Utility Tokens – Blockchain FAQs Answered

In a world where Blockchain technology and cryptocurrencies continue to inspire innovation; utility tokens are becoming worthwhile investment options.

But for someone new in this space, the big question remains – what are utility tokens and how they differ from other types of tokens?

Read on to learn more.
What Does SEC Stand For and How Does it Affect Crypto?

You’ve heard about it in forums and chat groups. But what does SEC stand for in reality? What is its involvement in the cryptocurrency market and how are their decisions affecting the prices of crypto.
What is a Blockchain Nonce and What Does it Do?

What is a Blockchain nonce and how it’s used in a PoW protocol? In this section, we will help you understand the specifics.
What is a Consortium Blockchain And How is it Unique??

What is a Consortium Blockchain and what is its difference with other Blockchains?
What is a Distributed Ledger? A Look in its Usability

The term “distributed ledger” is often heard when talking about blockchain technology. But what exactly does it stand for and what can we learn from it?
What is a Hybrid Blockchain in Cryptocurrency?

Ever wondered what is a hybrid Blockchain? If so, keep reading to get a good grasp on the concept and understand what makes it unique.
What is a Mining Rig and How Do You Build Your Own?

If you want to learn what is a mining rig, you are in the right place! We will go through mining rigs’ purpose, what they are made of and how to build your own.
What is a Pump and Dump Scheme in the Context of Crypto?

Wondering what is a pump and dump scheme? In this short post, we explain how these fraudulent schemes work and how to avoid them.
What is a SCRYPT Miner – Blockchain FAQs Explained

In this short section, we will explain what is a SCRYPT miner and indicate its main differences to other mining hardware.
What is a Trading Bot? Is it Worth the Investment?

Trying to find out what is a trading bot? The following section will define and explain the basics of this unique trading option.
What Is a TXID and When Does it Become Important?

How will you know if a digital currency transaction went through or not? In the cryptocurrency world, this is possible through recording transactions on the blockchain.
What is an Authorization Hold – Blockchain FAQs

Read this section if you want to know more about what is an Authorization Hold and how it impacts the world of crypto.
What is an STO and how can investors participate?

The world of cryptocurrency is changing fast. New terms and offers keep hitting the market and the latest to join in the STO.

In this article, we’ll talk about the STO and explain what it’s all about.

Let’s get started.
Where is Bitcoin illegal? List of countries that banned BTC

You might be wondering… where is Bitcoin Illegal? Read further to find out everything you need to know.

Who Developed Blockchain and Where is He Now?

Some call him a genius, while others refer to him as a traveler from the future. Who developed blockchain and where is he now?
Why Bitcoin is Rising? An In-Depth Look at Bitcoin’s Growth

Most people find it hard to believe that a single Bitcoin has grown to be worth many thousands of dollars, over just a few years’ time. But why is Bitcoin rising in value so much overtime?
Why Bitcoin Will Fail to Impress the Short-Term Thinkers?

There are a lot of misconceptions about the value of Bitcoin and how it performs in the short term. In this section, we will try to clarify how Bitcoin will fail to appeal to those who see it as a quick-profit scheme.
zk-SNARKs Explained – Secure Communication For Users

If you ever came across the term and want ZK-SNARKs explained to you in simple man’s terms, you’re in the right place.
What is Liquidity? Blockchain FAQs Explained in Simple Terms

Read on to learn what is liquidity in the context of cryptocurrency. We will also explore how it’s measured and how it determines the value of a coin.
What is Multisig – Blockchain Acronyms Explained

This short section will explain what is multisig, its purpose, and some of the best practices to increase your security.
What is Original Credit Transaction and how does it work?

This short section will explain what is Original Credit Transaction and how it can benefit crypto enthusiasts around the world.
What is the Difference Between Centralized and Decentralized?

The centralization debate is a hot topic in the crypto technology. In this short section, you will learn what is the difference between centralized and decentralized models.
What makes Bitcoin Valuable? Blockchain FAQs Answered

This short section will go through the main aspects that make Bitcoin such a great asset for aspiring investors. So, read on to learn what makes Bitcoin valuable and how its features can impact its value in the future.
When Bitcoin Was Created – A Brief Look Into Bitcoin

When Bitcoin was created, no one would have imagined how steep its growth curve could be. But how did its popularity start?
What is CFTC and How is it Linked to Crypto?

In this short section, you will learn what is CFTC, and how it impacts the world of cryptocurrencies and their regulation.
What is Circulating Supply and How is it Calculated?

The term is often heard in the context of cryptocurrencies and other financial markets. But what is circulating supply and how is it calculated for each cryptocurrency?
What is DeFi and How is it Changing the World of Finance?

Have you been asking yourself “what is DeFi?” and how is it impacting finance? Keep reading to find out what the acronym stands for.
How Many Bitcoins Are Left Today? All Stats & What’s Still to be Mined

Down below you will find data on how many Bitcoins are left and other fun stats.

The good news is that all the data seen on this page is updated on a daily basis.

Dimitris

Dimitris writes content related to the Blockchain and cryptocurrencies but also on topics related to digital marketing.

Blockchain Glossary For Beginners

Related Articles