Understanding Bitcoin & Crypto Terms

Inspiration is everywhere these days. At least, for the writers at Unfiltered. A simple search led to this beautifully woven article, find out what we mean by this in the following text.

The idea was to simplify the jargon of the crypto world. Google displays about 70,700,000 results in 0.70 seconds. And yet, so many of us will barely know what this rave is all about.

People will only know things when they search their meanings, how deep is that for your liking? So, for the first time in like forever, here are some answers that you may not be looking for but should know.

1. Fork

This means taking out a slice or chunk of a bigger unit. Or to literally shred a product to take selective bits through a pay-out or declaration of separation. By doing so, a new set of consensus or rules come into existence. This new agreement will rule the new product from thereon.

2. Bullish

This is owed to the world of finance. Well, fintech is a far sprung seed of the same parent tree right. So, the term Bulls indicates a set of securities or currencies – investment products that are set to be traded at a higher price. The rising demand curve action makes these products bullish.

3. Bearish

The Bears are the nemesis cousins of the Bulls. Bearish means that the market is on the lows or falling in terms of price or demand, this occurs when the graphs are falling. Either there’s a new hoe in town or the customer faith is on the decline. Sometimes the traders get poor you see. So poor that the currency, security or whatever shape the investment offer is coming in falls.

4. 51% Attack

This is whereby a network is owned an operated by one individual, or sometimes a set of like-minded individuals by 51%. These people make up a majority and they can shut down the network as they wish. They can loot and plunder all they want. The attack can mean death for the network.

5. Altcoin

Refers to any coin other than bitcoin. How is that for a short definition?

6. Block Reward

Block reward is the incentive allotted for hashing, or solving the mathematical equation related to a block. The blockchain system seems automatic, spoiler alert, it is not. Miners are rewarded for handling things at the back end. They are rewarded for it too. The reward for mining a Bitcoin block is 25 bitcoins per block mined, which will halve every 210,000 blocks, the policies are much more complex and they are subject to change as per the miner voting process in the Bitcoin blockchain.

7. ASIC/ASIC Miner

The fastest way to make money in the crypto spheres. Even faster than some pyramid ponzi schemes, scams and crypto lotteries. An ASIC, or Application Specific Integrated Circuit is, is a chip specifically created to execute one task. This task is mining, of course. One such model is an ASIC miner created to only process the algorithm SHA-256, which is offered by the Bitcoin blockchain to mine new coins.

8. Hash Rate

The hash rate is the speed at which a block is discovered. Meaning the speed or the rate at which the related math problem is solved. The faster the miners can solve the algorithms of each transaction that occurs, the faster the rate will be.

9. Proof of Work or Nonce

A Proof of Work is a Number used only once. This is an essential layer of security that ensures no body is stealing your cryptocurrency. This is a datum that is very costly to produce in terms of time and resources, but can be very simply verified by another party. The verification and the difficulty in replication or tampering secures your funds, making that counterfeit-proof.

10. Public/Private Key 

The public key creates a message that can be seen by everyone. But, a private key is needed to see the network. The public key is the set of invites of an invite only party. Whereas, your invite is your private key to enter the party and mingle in it.

11. Smart Contracts

A smart contract is an agreement. This is better than what Amazon has excelled in providing for years. This means if I any sell items to you, you make the payment and you will enjoy the product. Neither one of us will be allowed to back off, making the transaction unfair or illegal. No more frauds ya’ll. Applies to all sectors, industries and thinkable applications such as healthcare, retail, voting and what not.

It Does Not Get Any Simpler Than This! Try us, tell us if you know otherwise!

Originally published over BlockPublisher