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CRYPTO CURRENCY DICTIONARY

TERMS COMMONLY USED IN THE WORLD OF BLOCKCHAIN AND CRYPTOCURRENCY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Other Important Terms

Denial-of-Service Attack

A denial-of-service (DoS) assault is a type of cyber-attack that attempts to prevent a server or network from functioning normally. This sort of attack is frequently initiated on more traditional server-based systems by a rogue computer flooding a server with bogus traffic in order to cause it to malfunction or go down. A "Distributed Denial-of-Service attack" is one that comes from several machines at the same time (DDoS attack). DDoS attacks rely on the distribution of harmful software, which is uploaded to the servers of unsuspecting individuals. These servers are then utilised to continue the attack. On a bitcoin blockchain, this form of DoS attack is possible. The number of times nodes on a blockchain may register transactions is restricted. This allows attackers to overburden the system, with minor transactions that need the same amount of time to complete as larger, genuine transactions This slows down the blockchain and enables attackers to carry out numerous types of hacks. However, due to transaction costs, this method is often expensive in the long run for fraudulent users.

Tokenization of Real Estate

Real estate tokenization refers to the development of crypto tokens that are tied to tangible assets. In this context, tokenization divides the value of a property into several smaller sections, similar to shares in a firm, which purchasers may then acquire. Transactions are recorded on a blockchain that is linked to the transaction. Real estate tokenization broadens the market to include a wider range of purchasers, boosts the liquidity of traditionally illiquid assets, and enables real estate owners to obtain funds fast. Tokens are issued by property owners via an Initial Coin Offering (ICO). Representative tokens can be exchanged on the open market once the property has been "converted" into smaller constituent portions. Ongoing challenges include legal ambiguity around smart contracts on blockchains, cybersecurity concerns, and the potential avoidance of taxes on the part of sellers. 

Wash Trading

Wash trading is the artificial and unlawful action of manipulating the perceived liquidity of assets and market volume in a marketplace. It is an issue in most financial markets and can show itself in a variety of ways. Wash trading occurs when traders swap assets among themselves to produce fake market activity on controlled exchanges in the cryptocurrency space. Wash traders may also generate "pump and dumps," causing the value of an asset to surge and plummet dramatically. Market volume is an inaccurate metric of liquidity due to the absence of regulation of bitcoin exchanges. Exchanges frequently keep users' identities private, making it simpler to launder deals. It is expected that wash trading affects a considerable amount of Bitcoin deals.

Crypto-economics

The use of incentives and encryption to create systems, applications, and networks is known as crypto-economics. It is the use of cryptography that takes into consideration economic factors and economic strategy.

Helium

Helium is a technology company responsible for launching “the People’s Network”, a fully decentralized wireless 5G network based on its own proprietary blockchain technology. The Helium blockchain rewards individuals with an HNT a cryptocurrency used to build up hotspots that give wireless device coverage. This mining technique employs a novel and low-energy proof-of-work mechanism known as "Proof of Coverage," which use radio technology to assess the activity of hotspots. Helium is notable because it has quickly garnered a large number of users – 50,000 at the time of writing – and offers an array of exciting opportunities for expanding internet coverage in developing countries.

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