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

Ether (ETH)

Ether is a cryptocurrency native to the Ethereum blockchain, which is often referred to by the name of the blockchain platform on which it operates. It also has the second-largest market valuation of any cryptocurrency, after Bitcoin. Ether is used to pay for transactions on the Ethereum platform and is paid to miners who help the blockchain expand. Sometimes it is referred to using the Greek letter Xi (Ξ).

Other Important Terms

Distributed Network

On a distributed network, the decision-making process often involves individual nodes voting to change to a new state, and the system's overall behavior changes in accordance with the aggregate outcomes of the decisions every individual node votes on. The particular mechanisms used by a distributed network to vote and make decisions are determined by the network's consensus mechanism. All kinds of distributed decision-making include the separate components of the network engaging with one another to reach a shared goal. Distributed networks are particularly fault-tolerant and secure as a result of their geographical dispersion. Their benefits and drawbacks are similar to those of decentralized networks but on a larger scale.

Lightning Network

The Lightning Network is a blockchain transaction-speeding mechanism. Lightning networks are off-chain layers that are created on top of primary chains. The current Bitcoin lightning network was first proposed in 2015. The Lightning Network layer-2 protocol speeds up peer-to-peer payments by creating a network of bidirectional channels on a separate network of nodes that connects with the main chain. Lightning networks keep funds safe by generating multi-signature addresses with signed balance sheets that hold the funds of users. Two parties deposit funds at the designated addresses and conduct transactions with one another, the contents of which are recorded and signed on the relevant balance sheet. These transactions are kept off-chain until the channel is closed, at which point the remaining money is processed as a single transaction on the main chain The funds are then released from the address based on the current balance sheet. This process turns multiple small transactions into a single transaction on the blockchain.

Dash

Dash is a cryptocurrency that is optimized for payments and focuses on usability. Dash introduced several innovations that improve scalability, speed, reliability, cost-effectiveness, and user experience compared with other digital currencies. The Dash network is also the longest-running decentralized autonomous organization (DAO), utilizing built-in governance to allocate network resources to organizations that support the network.

Exchange-Traded-Fund (ETF)

An exchange-traded fund (ETF) is a pooled investment asset that functions similarly to a mutual fund. ETFs often follow a specific index, sector, commodity, or other asset, but unlike mutual funds, ETFs may be bought and sold on a stock market in the same way that conventional stocks can. An ETF can be designed to follow anything from the price of a single commodity to a huge and varied group of commodities. ETFs can even be designed to follow certain investing strategies.

Audius (AUDIO)

Audius is a music distribution and discovery platform that is equal parts social media, music marketplace, and decentralized streaming service. It is meant to serve the core operations of the music business in an equitable and inclusive manner that incentivizes artists and fans. Peer-to-peer (P2P) content sales, a reward structure via its native AUDIO token designed to incentivize fan sharing and engagement, an emergent decentralized governance structure that places direct decision-making power in the hands of fans and artists alike, and a multifaceted marketplace are among Audius' numerous features.

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