Table of Contents
- Airdrop
- Altcoin
- Bitcoin (BTC)
- Blockchain
- Block Explorer
- Block Reward
- CashAddr Address Format
- Change Address
- Cold Storage
- Consensus Algorithm
- Cryptocurrency
- Cryptography
- Custodial Wallet
- Decentralization
- Decentralized Autonomous Organization (DAO)
- Decentralized Application (dApp)
- Decentralized Exchange (DEX)
- DeFi (Decentralized Finance)
- Ethereum (ETH)
- Exchange
- Fiat Currency
- FUD
- Gas
- Halving
- Hard Fork
- Hash
- HODL
- Hot Wallet
- ICO (Initial Coin Offering)
- Layer 2
- Ledger
- Liquidity
- Market Cap
- Merkle Tree
- Mining
- Mining Pool
- Multi-share Backup
- NFT (Non-Fungible Token)
- Node
- Non-Custodial Wallet
- Private Key
- Proof of Stake (PoS)
- Proof of Work (PoW)
- Public Key
- Rug Pull
- Sharding
- Single-share Backup
- Smart Contract
- Satoshi (sat)
- Shamir Backup (SLIP39)
- Soft Fork
- Token
- UTXO (Unspent Transaction Output)
- Wallet
- Wallet Backup
Airdrop
Definition: A distribution method where free tokens are sent to users' wallets, often for promotional purposes.
Key Details:
- Used by blockchain projects to increase token circulation
- May require holding specific cryptocurrencies or community participation
- Includes regulatory and tax implications
👉 Learn how to securely manage airdropped tokens
Security Note: Beware of scam airdrops on social media designed to steal funds or personal information.
Altcoin
Definition: Any cryptocurrency other than Bitcoin (e.g., Ethereum, Solana).
Characteristics:
- Alternative blockchain projects with modified designs
- May feature different consensus mechanisms or smart contracts
- Varies in technological approach and adoption levels
Bitcoin (BTC)
Definition: The first decentralized digital currency enabling peer-to-peer transactions.
Core Features:
- Operates on Proof-of-Work consensus
- Fixed supply of 21 million coins
- Transactions recorded on an immutable blockchain
Blockchain
Definition: Distributed ledger technology recording transactions across multiple computers.
Technical Aspects:
- Sequential chain of cryptographically linked blocks
- Immutable record resistant to tampering
- Enables trustless verification of transactions
Block Explorer
Definition: Online tool for viewing blockchain contents including transactions and blocks.
Functionality:
- Interfaces with full node databases
- Provides transaction histories and network statistics
- Essential for transparency and data verification
FAQ Section
What's the difference between custodial and non-custodial wallets?
Custodial wallets are managed by third parties (like exchanges), while non-custodial wallets give users full control of their private keys.
How does Proof of Stake differ from Proof of Work?
PoS validates transactions based on staked cryptocurrency rather than computational work, reducing energy consumption.
Why are hardware wallets more secure?
Hardware wallets store keys offline, protecting them from online threats like malware or hacking attempts.
What determines cryptocurrency market cap?
Market capitalization is calculated by multiplying current price by circulating supply, reflecting the asset's total market value.
How do smart contracts work?
Self-executing contracts automatically enforce terms when predefined conditions are met, without intermediaries.
What's the purpose of wallet backups?
Backups (like seed phrases) allow wallet recovery if devices are lost or damaged, making them critical for asset protection.
Key Takeaways
- Understanding crypto terminology is essential for secure participation in the ecosystem
- Security practices like cold storage and proper backups protect digital assets
- Market mechanisms like liquidity and halving events influence cryptocurrency values