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Terminology
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Altcoins - Altcoin stands for Alternative Coin and it is used for every coin except Bitcoin.
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AMM - Stands for Automated Market Maker and it is next to Order Book DEX and DEX Aggregators one of three methods to provide liquidity on a DEX (Decentralized Exchange).
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CEX - Centralized Crypto Exchanges like Binance, Coinbase, Kraken,...
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Cryptography - Is the science of encrypting information. In the context of cryptocurrencies it is used, to enable secure transactions over the internet.
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Cutting-edge technology -
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DEX - Decentralized Crypto Exchanges like Uniswap, Sushiswap,...
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EIPs/ BIPs - EIP stands for Ethereum Improvement Proposals and BIP stands for Bitcoin Improvement Proposals. They suggest improvements to the protocol itself.
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Equihash -
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ERC-20 - ERC-20 Stands for Ethereum Request for Comments and it is standard for programming on the Ethereum Blockchain. It aims to establish conventions that make it easier for applications and contracts to interact with each other. An ERC-20 Token for instance fulfills certain predefined criteria so that the implementor doesn't have to reinvent the wheel. To be ERC-20 compliant, a contract needs to include the following functions: totalSupply (total supply of tokens that the contract holds), balanceOf (takes an address and returns the balance of that address), transfer (transfers tokens from one address to another), transferFrom (authorizes other contracts to transfer funds on your behalf like for paying manually for subscription-based services), approve (limits the number of tokens that can be withdrawn from your account), and allowance (returns the number of tokens that can be withdrawn if a contract has permission to manage tokens). Optional functions are name, symbol, and decimal. ERC-20 tokens are compatible with plenty of exchanges and smart contracts, run on the Blockchain. They are highly customizable and everybody can deploy them.
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ERC-721 - Standard for programming non-fungible tokens on the Ethereum Blockchain. It is used for the Dapp CryptoKitties.
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ERC-1155 - Improvement on the ERC-721 and ERC-20 that supports fungible and non-fungible tokens at the same time.
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ETH - Ethereum Native Token.
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Fork -
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Hard Fork -
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Hash - A hash function is used to encrypt data. A hash value is the output that a hash function generates. Hash functions work asymmetric which means that the same input will always generate the same output but the input can never be derived from the output. Another specialty of a hash function is that it will generate always an output that has the same amount of digits, no matter the input.
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Hodl - Describes an investment strategy in which the investor buys and holds this token
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Lightening Network -
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Liquidity mining -
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LP - Stands for Liquidity Pool or Liquidity Provider which is used for example to provide liquidity on a DEX (Decentralized Exchange).
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Mining - This is the process of offering new tokens in the crypto ecosystem. Minting is used in Proof of Work (PoW) systems to introduce new coins into circulation. Mining is an ongoing process where miners solve cryptographic puzzles to add new blocks to the Blockchain. As long as the blockchain persists as long as the Blockchain network is active, continually validating transactions and fortifying its security.
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Minting - This is the process of offering new tokens in the crypto ecosystem. Minting is used in Proof of Stake (PoS) systems to introduce new coins into circulation.
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Native Tokens - are tokens for a blockchain that are created for that Blockchain, like BTC, ETH, XLM, or SOL. Native tokens are different from non-native tokens like ERC-20 tokens which are built on the Ethereum Blockchain and that are used to interact with smart contracts.
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Node - Is a participant on a Peer-to-Peer network that validates blocks on a Blockchain
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Nonce - Stands for number one which is part of the cryptographic puzzle every miner has to solve in a PoW Protocol to add a new block to the Blockchain
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Oracle -
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Protocol - A protocol is a set of rules that allows data to be shared in a network. HTTP for example stands for Hypertext Transfer Protocol and it defines the rules for the communication between a client and a web server. In the context of cryptocurrencies, a protocol is a set of rules that defines the behavior of participants in a decentralized network using cryptography to secure operations. The Bitcoin Protocol for example defines a clear set of rules, to enable secure digital transactions. The Ethereum Protocol defines a set of rules to enable smart contracts on a blockchain.
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Private Key - Is one's password to access the coins somebody ones, saved on the Blockchain. Only the owner of the coins should own the private key.
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Proposer -
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Public Key - The public key is the 'mailing address' to which account, coins should be sent. As the name says, the public key is public to everyone.
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Second Layer -
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Security Token - Security tokens are very similar to stablecoins, with the difference, that security tokens are not pegged by fiat currencies but they represent securities like stocks, bonds, or physical assets like commodities or precious metals.
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Segwit -
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Slashing -
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Slippage - The difference between the expected price of one order vs the price when the other gets executed. A high slippage may result if not enough liquidity is provided by an exchange. This is more likely for small market cap coins as well as on DEX than on CEX because of the lower trading volume on DEX. Slippage happens when the order is already executed and cannot be foreseen.
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Soft Fork -
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Stablecoin - This is a coin that is pegged to a fiat currency (like the USD for example). It is changeable to a fiat currency in a fixed ratio for example 1$ = 1 unit of a stablecoin.
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Synthetic Asset -
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TPS -
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Utility Token - Most of the tokens found today are utility tokens. They are not backed by any security or fiat currency and in fact, they have no external value. They are used for example to participate in decentralized apps like DEX or as in-game currencies.
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Wallet - A wallet is a store for the private and the public key. It allows access to the coins, someone ones. A wallet does not store coins, it only stores the keys. The coins are saved on the blockchain.
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Cryptopedia101