Technical Terminology

 

CRYPTOCURRENCY – A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency and arguably its most endearing allure is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.

 

BLOCKCHAIN – Blockchain refers to a type of data structure that enables identifying and tracking transactions digitally and sharing this information across a distributed network of computers, creating in a sense a distributed trust network. The distributed ledger technology offered by blockchain provides a transparent and secure means for tracking the ownership and transfer of assets. 

 

MINING – Mining is the term used for discovering and solving blocks along the blockchain. A reward is given for solving the algorithm and lengthening the chain, called a mining reward.In this cryptocurrency boom, mining can be a lucrative business when done properly. By choosing the most efficient and suitable hardware and mining target, mining can produce a stable form of passive income.

 

HASH/HASHRATE – Hash is the act of performing a hash function on the output data. This is used for confirming coin transactions. Measurement of performance for the mining rig is expressed in hashes per second. Hash Rate, also Hash Power, is the measuring unit that measures how much power cryptocurrency network is consuming to be continuously functional. Continuously functional means how much hash power is it consuming to generate/find blocks at the defined time interval.

 

NODE – A node is essentially a computer connected to the blockchain network. A node supports the network through validation and relaying of transactions while receiving a copy of the full blockchain itself. In short, your computer will become node once it is connected to the blockchain network.

 

 

WALLET – A file that houses private keys. It usually contains a software client which allows access to view and create transactions on a specific blockchain that the wallet is designed for. There are several types of wallets. They are an online wallet, mobile wallet, desktop wallet and a paper wallet.

 

 

ALTCOIN – An altcoin is any digital cryptocurrency similar to Bitcoin. The term is said to stand for “alternative to Bitcoin” and is used describe any cryptocurrency that is not a Bitcoin. Altcoins are created by diverging from Bitcoin consensus rules (the fundamental rules of the cryptocurrency’s network) or by developing a new cryptocurrency from scratch. Most popular altcoins use the same fundamental building blocks as Bitcoin.

 

block in blockchainBLOCK – Blocks are files where data pertaining to the cryptocurrency network is permanently recorded. A block records some or all of the most recent currency transactions that have not yet entered any prior blocks. Thus a block is like a page of a ledger or record book. Each time a block is ‘completed’, it gives way to the next block in the blockchain. A block is thus a permanent store of records which, once written, cannot be altered.

 

block rewardBLOCK REWARD – A block reward is the amount of Bitcoin or cryptocurrency that is awarded to a miner for confirmation of transactions in a block.  This serves 2 purposes.  It provides incentives to miners to invest in the network and it helps release new coins into the ecosystem.  This mechanism for releasing more coins into the ecosystem is a system for controlled inflation that without a central governance.

 

DIFFICULTY – A difficulty is a unit of measurement designed to indicate how difficult it is to find a hash below the given target, either on the bitcoin network or any other currency that can be mined through proof-of-work.