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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

Ethereum Killer

Ethereum Killer is a cryptocurrency which is taking advantage of flaws in Ethereumand  has the potential to surpass Ethereum in the future, thus "killing" it in terms of adoption or popularity. 

Other Important Terms

Penetration Testing

Penetration testing is the practice of conducting a cyber attack on your own network in order to identify and understand its weaknesses. Penetration testers replicate cyber assaults using the same skills and technology as hackers. Blockchains are subjected to penetration testing by developers in order to improve security. Consensus mechanism testing, wallet security tests, denial-of-service attack tests, and other types of tests are possible. FumbleChain is a blockchain that is purposely broken in order for people to hack it. It encourages users to complete challenges that highlight common blockchain security vulnerabilities.

Buying The Dip

When an asset’s value drops, it can be said to “dip.” The term is used across a range of financial markets and is often used to describe the price fluctuations of cryptocurrencies.“Buying the dip” is a technique in which investors take advantage of drops in an asset’s value. By purchasing at a lower price, investors “average down” their asset purchase price or maximize profits on undervalued assets. Many markets, however, are highly speculative. And this is particularly the case with the cryptocurrency market. A dip in the value of an asset may signify the start of a longer downward trend. A future bounce back isn’t a given. Waiting for price settling, undertaking due diligence, and utilizing incremental buying protect buyers against poor investments.

Zero-Knowledge Proofs (ZKP)

A zero-knowledge proof (ZKP) is a cryptographic method for ensuring privacy and security. It is also known as a zero-knowledge protocol. A ZKP allows you to demonstrate your understanding of a given value without exposing the value itself. The ZKP technique is based on two parties: a prover who demonstrates knowledge of a piece of data without explicitly exposing any specifics, and a verifier who assesses the likelihood of the prover's claim being true. ZKPs are used by cryptocurrency to strengthen privacy by enabling verifiable transactions that selectively conceal specific transaction data, such as the sender identity, recipient identity, or amount transacted. To validate encrypted transaction data, certain digital currencies, such as Zcash, use a kind of ZKP known as the Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.

Yield Farming

Yield farming is the practice of lending or staking cryptocurrencies in return for benefits like interest.  It is a technique to make interest on your cryptocurrencies, much like you would make interest on any money in your savings account. Likewise, yield farming is locking up your bitcoin for a period of time, or "staking," in return for interest or other benefits like additional cryptocurrency. Decentralized exchanges (DEXs) are typically used by yield farmers to lend, borrow, or stake coins in order to earn interest and speculate on price fluctuations.

Blockchain (For) Supply Chain

Bitcoin halving is the halving of miner payouts on the Bitcoin network on a regular basis. Nodes are responsible for storing data and fulfilling the difficult computational demands required by the Proof of Work consensus mechanism on the Bitcoin network. There are only twenty-one million bitcoins that can be mined (approximately two million remain unmined). To curb inflation, the amount of Bitcoin given to miners is half every time around 200,000 more coins are created. Bitcoin halving occurrences are associated with considerable price volatility, with the price frequently remaining higher than it was. This price increase encourages miners to keep serving the network while earning fewer Bitcoins.

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